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Wednesday, 23 August 2006 |
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Make sure that you fully qualify for OIC, otherwise if your application gets rejected you will have no other option available to you and the IRS will take serious actions to enforce tax payment. IRS will accept your offer if it is reasonable enough. They will calculate the amount you can pay after assessing all your assets as well as your future income. Keep in mind that your offer will not be accepted if you have some sizable amount in bank and your total assets cost up to $18,000.
Furthermore you have to be able to produce at least $150 + your first up-front payment which is 20 percent of total amount you owe to the government. The new policy regarding offers in compromise, the IRS is required to process all offers thoroughly and decide honestly which ones are to be accepted. However, there are two exceptions when the application is to be rejected under all circumstances. These conditions are: either the taxpayer is bankrupt, or he/she has not filed all tax returns. Taxpayers who do not fall under these categories can freely submit an offer to IRS under the revised OIC policy. Still it’s advisable that you thoroughly check your assets and financial records before submitting the application in order to avoid future misunderstandings with the IRS. |
