Filing an OIC – An important step to obtain tax debt settlement

-        Christina Jones

You’ve got the opportunity to file an OIC and request for an IRS tax debt settlement as far as the unpaid taxes are concerned. However, be prepared for the IRS might approve or perhaps deny your tax settlement offer. IRS tax debt settlement is an effective way to take care of your unpaid debts for it gives you the opportunity to pay less than what you owe as far as your tax debt obligations are concerned.

It’s best to settle your tax debt with the IRS

It’s advisable that you go for the IRS tax debt settlement program since it allows you the option to pay either via one lump sum or through regular monthly payments. This facility is extremely important. Most importantly, it’s better that you settle your unpaid taxes for if you choose to ignore it, then the IRS can employ tactics that’ll force you to pay the entire amount. Surely you’d prefer going for settlement rather than being forced to pay up your tax debt.

Begin by filing an Offer in Compromise (OIC)

What you’ve got to do right at the beginning is download an Offer in Compromise (OIC) application from the government website of the IRS. You need to include quite a bit of personal financial information and propose a tax settlement offer. Once you’ve done these things, then the IRS will be reviewing the tax settlement offer. Also, they’ll be comparing it to your income and then come to a conclusion about whether or not your tax settlement offer is sufficient.

Generally, the IRS is known to accept tax settlement offers under 3 circumstances. One is when the liability to your tax debt or the amount of debt happens to be in question. Next, would be when your financial circumstances don’t allow you to pay up the amount. Lastly, if you’re going through extenuating circumstances which is preventing you from paying down your tax obligations and the IRS considers it acceptable.

Offer in Compromise payments take off immediately

If you submit an OIC to the IRS, then you’ve got to begin making payments on your proposed tax settlement immediately. Be prepared to wait for several months because the IRS might take some time to review your OIC. Moreover, you actually put across the impression to the IRS that you’ve got good intentions to pay back your taxes by making the tax settlement payments as soon as you submit the OIC.

Now, if the IRS accepts your tax debt settlement proposal, then you can continue making similar monthly payments on your OIC unless and until your tax settlement is paid completely. If your offer gets rejected, then you might as well submit a new settlement offer for a higher amount.

Always remember the fact that settling a tax debt allows you to escape the burden of unpaid taxes. Plus you can steer clear of any unpleasant event. Moreover, you can find forms for tax debt settlement online so it’s rather easy to check out as well.