Owing back taxes or tax debt to the IRS (Internal Revenue Service) can put you in a difficult situation, and you may have to resolve to professional tax services Orlando, FL. The IRS has full authority and power to collect the amount that you owe in taxes. However, it offers different useful methods and strategies to ensure proper tax debt help Orlando, FL. Offer in Compromise (OIC) is one such debt relief method that the IRS has designed particularly for debtors.
Working of an IRS Offer in Compromise
You can use an OIC program to get out of tax debt payable to the Internal Revenue Service. This method allows you to make an offer to the IRS to pay as much amount of your tax debt as you conveniently can. While considering your tax debt payment plan, the IRS can either accept or reject your offer. It also has the right to modify your offer according to its policies and rules.
In order to avail an Offer in Compromise program, you are required by the IRS to prove your financial distress. If you don’t prove your inability to make tax payments, then the IRS can collect the entire tax debt from you.
IRS Program – Conditions Involved
The IRS has defined certain conditions for all taxpayers who want to make an Offer in Compromise. Make sure to satisfy the following conditions before submitting such an offer to the IRS:
- You should pay the sum you suggest in your offer in full. Moreover, your payments should be regular and in compliance with your offer. If you want to get tax debt help Orlando, FL from the IRS, then you should focus on timely tax payments.
- You should file your tax returns and make tax payments promptly in the upcoming years.
- The IRS has the right to keep all payments you previously made for debt settlement.
Once your offer is accepted, it is your utmost responsibility to fulfill all conditions defined by the IRS. If you are able to settle your debt with the IRS while complying with its rules and policies, then the IRS may provide you with helpful debt relief opportunities. On the other hand, if you don’t fulfill its terms, then the IRS is allowed to cancel the contract and make you pay the entire amount of your tax debt.
IRS Offer in Compromise – Possible Payment Options
There are three different payment options that you can avail to make an Offer in Compromise. You can choose to pay the entire debt in as many as five installments. If you decide to avail this option, then you may have to pay twenty percent of the offered amount to the IRS at the time of submitting the Offer in Compromise. Another payment option allows you to pay off your tax debt within two years of the acceptance of your offer.
Though you can consider any payment option according to your own preferences and financial circumstances, it should be remembered that the IRS is not liable to accept your Offer in Compromise or payment plan. However, professional tax debt relief services Orlando, FL can help you negotiate with the IRS and chalk out a feasible plan.
If you need more information about our tax debt relief services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting firm has its main offices in Kissimmee, FL. We serve the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.
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