IRS Offer in Compromise or IRS Installment Agreement?

IRS Offer In Compromise, IRS Installment Agreement

How Should I Resolve My IRS Tax Debt?

Tax Resolution Question:

I owe a significant tax debt to the IRS, but I don’t know whether an IRS Offer in Compromise or an IRS Installment Agreement is the best option for me. It all seems a bit overwhelming. How can I decide what makes the most sense for me? It all seems so confusing.

 Tax Resolution Answer:

First, take a deep breath because there is a solution out there that will work for you. Although it is impossible to provide a concrete answer to this question about an IRS Offer in Compromise as opposed to an IRS Installment Agreement without knowing the specifics of your tax case, the Tax Resolution Institute can still help.  Our tax experts can tell you about each program and this information could help direct you in the right direction.

Right off the bat, if your IRS delinquent income tax problem is serious enough to be considering an Offer in Compromise or an Installment Agreement, you should first consult a tax resolution specialist. Before taking any action, you need your tax history with the IRS to be examined so no unexpected negatives suddenly pop up. By examining your tax records in detail, the best course of action can be outlined for you and then taken.

IRS Offer In Compromise

In terms of the two programs being discussed, it’s important to realize their differences and why the IRS offers them to taxpayers. The IRS Offer in Compromise is intended for taxpayers who have a large delinquent tax debt. For whatever reason, the taxpayer will not be able to pay their tax debt, even over time. As a result, the IRS understands that an IRS Offer in Compromise is the best way to settle the tax debt

With the Offer in Compromise, you clearly demonstrate to the IRS that you lack the financial means to pay off your tax debt. Once demonstrated and the Offer in Compromise is process is opened, you then negotiate a payoff amount that can be significantly less than your debt. The IRS Offer in Compromise came about when the IRS realized it could bring in more tax revenue by being more open to actual negotiation with American taxpayers. Such negotiations are tough and demand the services of a tax resolution specialist

IRS Installment Agreement

As opposed to an IRS Offer in Compromise, an IRS Installment Agreement is for taxpayers that do not have the financial resources to pay off their delinquent income tax debt in a single payment. Since they do have the ability to settle the IRS income tax debt over time, an IRS Installment Agreement is like an ongoing payment plan with the Internal Revenue Service. The taxpayer pays off a manageable amount every month with the goal of covering the entire tax debt completely over a period of time.

To learn more about whether an IRS Offer in Compromise or an IRS Installment Agreement is right for you, please contact the Tax Resolution Institute for a free consultation. By calling (818) 704-1443, we can look at your case and figure out if we are the right tax resolution firm for you. If we believe an IRS Offer in Compromise or an IRS Installment Agreement is the right tax relief solution for you, we can jump on board and help your resolve your delinquent tax problem.