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Do You Want to Apply for An Offer in Compromise? Here Is How to Go About It

Study shows that many people are unable to pay 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. You should consider contacting the IRS as it is the one to help you. learn more below to know the steps you will need to follow to get an offer in compromise.

The first thing you should know is that it takes a process to apply for an IRS 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. You will get to indicate if you have other debts and also the things that you own. After filling out the form you will be required to pay an application fee that can also be used as a waiver. It is also required of you to pay an amount that is 20% of the debt that you have. You should know that this payment is compulsory.

Another thing you should know is that you must be qualified to apply for an IRS offer in compromise. The qualifications are a must-have when you are applying. It is important that you learn more about qualifications before you even begin. You should know that you should not be bankrupt, have a court-ordered tax debt, and also be behind on your taxes as you will not qualify. Another thing that will disqualify you is that you do not give out the necessary information or the documents you are asked to provide. They could also deny your application if you do not pay the required fee.

You will need to provide the details about your past present and future income when applying for an offer in compromise. You will also give out information about your car type and how you manage to pay the bills. 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. When you are accepted, you have two ways that you can pay your debt. Either by paying in installments or paying much money within five months.

You will get many advantages when you choose to 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.