How to Settle Tax Debt for Less
If you wish to settle down tax debt for less than there is only one common way to do so: simply with an offer in compromise; which means the IRS will agree to let you reimburse less than the actual amount to you want to pay. Though you can settle your tax debt for less, it is essential to bear in mind that you might not meet the criteria for an offer in compromise. The IRS accepts just about 15% of those that they receive
There are various situations when you are able to settle for less. They are:
- Doubt as to liability- This is actually when you are not found at fault for the debt that has been considered.
- Doubt as to collectability- Here you just cannot pay the tax debt now, and there is absolutely no reason to think that this can change in the future.
If you are keen in submitting an offer in compromise you have several steps to take. To begin with, you first have to complete Form 656, and then offer in compromise and also Form 433-A, besides this application fee of $150 as IRS requests.
Most of the experts advise that you must wait at least 2 to 3 months to hear on your offer in compromise. You must not be surprised if it even takes the IRS a year, though – this is pretty common.
If you think that you meet the criteria for an offer in compromise, you might want to appoint a professional so as to make a final decision. A well experienced professional, who is aware of how settle tax debt for less, will surely be able to help you from start to finish. The major benefit of this is you get advice from an expert who has experienced and was successful in this before.