Question by Bret: How to get a IRS offer in compromise approved?
I have around $ 30,000 in federal IRS debt. How would I get this amount lowered with an offer in compromise? I don't have any extra income to pay this off and no equity in home and no way of getting a $ 30,000 loan. Is this the type of situation where the IRS is likely to approve an offer in compromise?
Thanks!
Best answer:
Answer by taxreff
The basic requirements for an OIC are mathematical in nature. To be eligible for an OIC, ones tax debt must exceed the book value (fair market value - amount owed) of ones assests and ones available excess income for a certain number of years. The available excess income is based on set standard amounts rather than actual circumstances.
The vast majority of all OIC requests are denied, contrary to what is indicated by the pennies-on-the-dollar mills advertisements. A CPA or EA can tell if you meet the minimum standards for an OIC fairly quickly, and at reasonable cost.
If you do not qualify for an OIC, you will probably be able to set up an installment plan with the IRS.
What do you think? Answer below!
I went through this 6 years ago, I hired a ex IRS agent to handle all the paper work. I had to show that I had a lot of debt and know way to pay any of the tax debt. The whole process took about 8months, but I settled for .10 on the dollar plus the fee to the agent. There are other stipulations, to much to list. Good Luck
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