Individuals with outstanding debts pertaining to the IRS may be able to lower the amount owed with the option of an offer in compromise. It makes sense to acquire more debt with the more money you make. We purchase more items, buy personal property and start businesses the older we get. To do this, we often have to get other businesses and banks to give out loans or make lower payments on purchases we already committed to.
Qualifications to get approved
It can be scary to find yourself in situations where the phone is constantly ringing with bill collectors. The need to expand and make more of our lives is normal and encouraged. However, it always seems we have to go into debt to do this. An offer in compromise may be able to reduce the debt you have once the IRS comes after their portion of your earnings for unpaid taxes. They will ask the following questions of you:
• Can you realistically pay the amount owed?
• How much money do you make?
• What are your other expenses?
• What is your total amount in equity?
The IRS will determine if you can apply for this option by asking you these questions. If you cannot realistically cover a portion of what is owed, it is useless to harass you. But, they can give you options such as a payment plan or lowering the entire amount if you can put cash down on the debt. They ask how much income you have to determine this. It is then weighed against all of the other expenses you pay on a regular basis. It may seem like there is no possible way they can come get their money when you subtract all of these numbers from your paycheck and other earnings. You may be forgetting about the worth of what you own. If you own personal property such as a house, boat, cars or other expensive property; it gets taken into account as well.
A reduction off the total amount may be lessened. You can pay 20% and given more time with a payment plan in place to suit your income. If you cannot put down any other type of payment, you may get a hardship case that will allow for low payments. A tax attorney may seem like even more of an unnecessary expenditure, but they will negotiate for you. They are also excellent for counsel in these matters. They will tell you important details and help you determine if you should even try to get this offer.
They know you cannot apply if you are not current on filing your taxes, in the middle of a bankruptcy and the government will take any amount each year you are owed money after filing. The IRS can also take a lien on any owned asset such as a house, business or car. You can find out your exact situation requirements by contacting a tax attorney or by researching the offer in compromise option on the official IRS website if you want to do it on your own or check the link http://www.entrepreneur.com/article/203898 for more tax attorney tips.