{"id":6340,"date":"2021-11-26T10:00:00","date_gmt":"2021-11-26T15:00:00","guid":{"rendered":"https:\/\/hoorfarlaw.com\/blog\/?p=6340"},"modified":"2021-11-23T13:17:54","modified_gmt":"2021-11-23T18:17:54","slug":"irs-resources-help-taxpayers-determine-if-an-offer-in-compromise-is-the-right-way-to-resolve-tax-debt","status":"publish","type":"post","link":"https:\/\/hoorfarlaw.com\/blog\/?p=6340","title":{"rendered":"IRS resources help taxpayers determine if an offer in compromise is the right way to resolve tax debt"},"content":{"rendered":"\n

Individual taxpayers and business owners can use the IRS’s Offer in Compromise Booklet<\/a> or the new how-to video series<\/a> to learn how an offer in compromise works and decide if it could help them resolve their tax debt. Taxpayer\u2019s can use pre-qualifier tool<\/a> see if they are eligible for an offer in compromise.<\/p>\n\n\n\n

An offer in compromise<\/a> is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. An offer in compromise is an option when a taxpayer can’t pay their full tax liability. It is also an option when paying the entire tax bill would cause the taxpayer a financial hardship. The goal is a compromise that suits the best interest of both the taxpayer and the agency.<\/p>\n\n\n\n

When reviewing applications, the IRS considers the taxpayer’s unique set of facts and any special circumstances affecting the taxpayer’s ability to pay as well as the taxpayer’s:<\/p>\n\n\n\n

\u2022 Income
\u2022 Expenses
\u2022 Asset equity<\/p>\n\n\n\n

The booklet covers everything a taxpayer needs to know about submitting an offer in compromise, including:<\/p>\n\n\n\n

\u2022 Who is eligible to submit an offer
\u2022 How much it costs to apply
\u2022 How the application process works<\/p>\n\n\n\n

The booklet also includes the forms that taxpayers must complete as part of the offer in compromise process. The current application fee is $205. However, taxpayers who meet the definition of a low-income taxpayer<\/em> don’t have to pay this fee.<\/p>\n\n\n\n

New how-to video series on offer in compromise<\/strong>
The IRS recently launched a how-to video series<\/a> on this valuable payment option for taxpayers.
The playlist consist of easy-to-navigate information taxpayers need to know when considering and applying for an OIC. Topics in the series include:<\/p>\n\n\n\n

\"\"<\/a>
Courtesy of the Internal Revenue Service<\/figcaption><\/figure><\/div>\n\n\n\n

\u2022\u00a0An overview of the OIC process, forms and pre-qualifier tool for help in getting started
\u2022\u00a0Step-by-step walk throughs of Forms 433 \u2013 A & B OIC, which are known as collection information statements<\/em> and needed for individual and business-related offers
\u2022\u00a0A step-by-step example of how to complete the OIC application, Form 656
\u2022\u00a0A final checklist to ensure everything needed is included to submit a valid offer<\/p>\n\n\n\n

Need tax assistance? Call us at 816-524-4949 or visit our website <\/a>to schedule a consultation.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Individual taxpayers and business owners can use the IRS’s Offer in Compromise Booklet or the new how-to video series to learn how an offer in compromise works and decide if it could help them resolve their tax debt. Taxpayer\u2019s can … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-6340","post","type-post","status-publish","format-standard","hentry","category-taxation"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/6340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6340"}],"version-history":[{"count":1,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/6340\/revisions"}],"predecessor-version":[{"id":6355,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/6340\/revisions\/6355"}],"wp:attachment":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}