Settle For Lesswith The IRS

Uncle Sam offers compromise to cash-strapped taxpayers

and has other complex issues, it may take longer to investigate.

If your offer is rejected, the IRS will notify you by mail. You have the right to appeal the decision within 30 days from the date of the letter. You can then submit another offer with an additional $150 application fee. “A taxpayer must increase an offer the IRS rejected as being too low when the taxpayer’s financial situation remains unchanged,” says McDermitt. “There is no set offer amount the IRS accepts. The IRS reviews each offer and makes its determination based on the facts and circumstances of each taxpayer.”

“When an Offer in Compromise is accepted, the taxpayer is required to comply with all provisions of the IRS code relating to filing and paying taxes for five consecutive years or until the offered amount is paid in full—whichever is longer,” says Coleman. “Within the first five years, the taxpayer cannot apply for another Offer in Compromise. However, after the first five years, should there be a need to apply, the taxpayer can.”

To find out more about Offers in Compromise, go to the IRS Website at www.irs.gov and search Publications 594 and 656, speak with a tax professional or certified public accountant, and read Stand Up to the IRS. The book contains actual tax forms as well as additional tips for settling your tax debts.

Pages: 1 2 3
ACROSS THE WEB