Can't Pay it? Settle it! O.k, so you must already know you can settle your IRS Tax Debt for less, right? But maybe you're not aware of the pathetic amount of Offers that are approved, we're talking around 2% of all offers submitted. On one hand, the IRS really is harsh when it comes to approving Offers, but there's another contributing factor. The taxpayer filling out the form, a.k.a: YOU. People are making too many errors when they fill out the forms!
Review time, How to apply for an Offer in Compromise:
In order to apply for an Offer in Compromise you need the following IRS Forms:
• Form 656, Offer in Compromise
• Form 433-A, Collection Information Statement for Wage Earners
Offer in Compromise Checklist for Success:
• Qualify for an Offer? Complete Form 656 “Is Your Offer ‘Processable’?” checklist
• Once you know your Offer is ‘processable’ gather all required documentation
• Get current with all of your Tax Filings
• Complete ALL items on Form 656, Offer in Compromise
• Include all fees and payments
• Respond PROMPTLY when the IRS requests additional information
• Complete ALL items on Form 433-A
Basically...Taxpayers often leave items they do not know the answer for on Forms 656 and 433-A blank. Do not do this, the IRS wants full and complete information regarding your situation. Remember, if you don't qualify for an Offer in Compromise or fill out Form 656 completely, that's $150 plus 20% of the offered amount down the drain!
Before you even take a step... Talk to a reputable tax debt professional. Most people who apply for an Offer in Compromise do not qualify to receive a settlement. Those people are the victims of vicious attacks on accounts and wages, because they disclosed all of their finances applying for a settlement. Make sure you qualify by talking to someone who knows what the IRS is looking for, before you put yourself into such a vulnerable situation.