How to Get Your Offer in Compromise Application Approved in IRS?
Are you a struggling taxpayer who cannot afford to pay your entire debt? That’s not the end of the world, as you can negotiate with the IRS to apply for the offer in compromise program.
But don’t expect the IRS to accept any settlement offer from just about any taxpayer. In fact, just like in the case with any other creditor, there’s a lot of paperwork involved to prove that you cannot afford to pay the debt.
But how real is to get the IRS to approve an offer in compromise? It’s 40.3% real whether you live in Fort Lauderdale, Hollywood, Aventura, Miami, or elsewhere, statistics shows.
Fact: in 2015, the IRS approved 27,000 offers in compromise of all 67,000 requests it received. The approval rate has been on the rise in recent years.
Fact #2: the average offer in compromise the IRS accepted in 2015 was $7,585.
Most people who don’t get their offer in compromise requests accepted don’t apply for the ambitious program properly. In fact, only a handful of people are actually able to take care of all the paperwork and file an application that meets the IRS standards and makes you eligible in their eyes.
In 2015, the IRS approved nearly $205 million in offers in compromise in total – but can you get a slice of that pie as well?
What are the challenges when applying for offer in compromise?
How does the IRS’ offer in compromise program work? To determine whether or not you’re eligible for the program, the IRS looks into how much you could afford to pay every month based on your current monthly income.
Although you’re not allowed to cheat or provide false information during this step, many taxpayers actually minimize their chances of approval by providing improper calculations.
But this is not the only challenge you may face when applying for the IRS offer in compromise program. You’ll also have to calculate the dollar amount of your allowable living expenses.
Meaning: housing, utilities, payments, clothing, and food and other basic monthly expenses. To determine your allowable living expenses, it’s recommended to seek the advice of a Fort Lauderdale tax attorney to maximize your chances of landing an offer in compromise.
After the calculations have been performed, the IRS deducts your allowable living expenses from your monthly income to determine how much you can actually afford to pay every month. This will be the foundation of your offer in compromise.
How to get approved in offer in compromise program?
Since the application process is rather time-consuming and detail-oriented (and also costly!), it’s recommended to seek the legal advice of a tax attorney in Fort Lauderdale or wherever you reside to save time and money on pointless and frivolous applications.
While you could apply by yourself, hiring a professional tax attorney would make a huge difference. In fact, our tax attorneys at the Zuckerman Law, L.L.C. have had a 92% rate of approval in offer in compromise deals.
We know how the IRS deals with offers in compromise and what their officers want to see in an application before hitting the “Accept” button. Consult our experienced tax attorney today to get a free initial consultation and discuss your best options.
Call our offices at 954-922-1975 or fill out this contact form to get in touch with one of our finest tax attorneys. We’re available to answer your questions 24/7.