Do You Want to Apply for An Offer in Compromise? Here Is How to Go About It
Many people have been known to fail in paying their taxes. Have you been wondering what you will do if you are not able to pay your taxes? One of the best things to do is to get more information before you take any steps. You should consider finding the info that will add benefits to you. IRS is the one that will guide you through the process. learn more below to know the steps you will need to follow to get an offer in compromise.
You should know the first step to take when you are applying for an offer in compromise. There are things that can disqualify you if you are not careful. There are papers that you are supposed to fill out first. For instance, you will need to fill out two forms. These forms will show your income, other debts, bills, and also your assets. After filling out the form you will be required to pay an application fee that can also be used as a waiver. There is also an amount you will be required to pay to cover 20% of your debt. You should know that this payment is compulsory.
There are other things that are checked for you to be qualified for an offer in compromise. You should have these qualifications before you even apply for an offer in compromise. It is important that you learn more about qualifications before you even begin. One thing that will disqualify you is being behind in your taxes, having a court-ordered tax debt and you are bankrupt. Another thing that will disqualify you is that you do not give out the necessary information or the documents you are asked to provide. The payments will also make you disqualified. You should know that you will not be accepted if you do not pay.
The other that the IRS looks at when checking if you are qualified for an offer in compromise is your past, present, and future income. How you afford to pay your bills will also matter and the type of car you drive. When they realize that you cannot afford to give out the things that will cover you when you are in debt then you are disqualified. You should consider discover more about the methods you can use to pay your debts. Either by paying in installments or paying much money within five months.
There are many benefits you will get when you apply for an offer in compromise. One is that you will be at peace knowing that you will pay your debt at your own pace.