When you receive a notice from the IRS that you owe them money, our Sacramento area team knows that it can be an extremely stressful time. However, ignoring the problem never makes it go away; instead, the best way to alleviate that stress is by facing the issue head on to work toward a resolution.
By paying your back taxes, arranging a payment plan, or coming to some other agreement with the IRS, you can protect yourself against more aggressive action like bank levies and wage garnishments. If you can’t afford payments on your current debt with the IRS, though, don’t worry; you’re not out of options. An offer in compromise, or OIC, can allow you to settle your debt for less than you owe.
Of course, getting your OIC approved isn’t a given. To raise the chances that your offer is accepted and that you receive the tax debt relief you need, follow these tips from our Sacramento area team.
File Your Returns
To be eligible for any sort of IRS program, you must file any and all past returns that you’re required to file. If you haven’t filed the appropriate past returns, your OIC will be rejected right away.
Get the Help You Need
The IRS is expected to take the government’s best interests into account, which can often deviate from your best interests. Filing an OIC on your own can leave you vulnerable to common pitfalls, but a tax professional can help you file for terms that will help you while also appeasing the IRS’ requirements.
Stay On Top of Current Taxes
Filing an OIC and getting it approved can take months or even years. In the interim, it’s important to stay on top of filing and paying your current taxes. Accruing more tax debt while you wait on your OIC to be approved can be a shortcut to disaster down the road.
Pay On Time
Your application for an OIC should include a non-refundable payment. Filing without this payment is a surefire way to have your OIC denied.
A lot of factors impact your ability to qualify for an OIC, including the terms that you offer. By working with the tax debt relief experts at Paramount Tax Relief, you can increase your chances of having your Offer in Compromise approved. For more information, be sure to contact us by calling (916) 533-9940 today.