Best Tax Settlement with Offer in Compromise in Houston, TX
If you are in very unstable financial ground and are struggling to pay your back taxes, you may qualify for an Offer in Compromise in Houston. This program is an agreement between the taxpayer and the IRS which allows you to settle your tax debt or other liabilities for less than the full amount you owe.
Reasons for the Offer
The IRC may accept an Offer in Compromise based on three grounds:
- Doubt as to Liability – If there is a genuine dispute as to the existence or amount of the correct tax debt under the law then the IRS can accept a compromise.
- Doubts as to Collectibility – This exists in any case where the assets and income of a taxpayer is less than the full amount of the tax liability.
- Effective Tax Administration – When there is doubt that the tax is legally owed or when tax payment in full would either cause economic difficulty or would be unfair and inequitable due to exceptional circumstances.
An OIC, however, is not for everyone. You need to explore all other payment options before submitting one. Generally, the IRS approves an offer in compromise if the amount offered represents the most they can collect within a reasonable time period.
While it is possible to submit an application yourself, for a lot of people, the process may be quite complicated. They incorrectly fill in the form, overstate their assets and income, and offer too much of a compromise. According to the IRS, about 75% of OIC are returned immediately because of incorrect forms, and in the 25% of those that are processed, approximately half are rejected. Thus, it is really important to work with an experienced tax consultant to ensure that your OIC is properly done.
Bobino Tax Consulting Services have years of experience in helping people with their Offer in Compromise settlements. We offer professional tax consulting services to help you come up with solutions and make the right decisions.