Offers in Compromise
What is an Offer and Compromise
An Offer in Compromise is a program that is offered by the IRS, and many states, including Michigan, that allows the taxpayer to resolve their delinquent tax issue by paying a lesser amount than is owed. When determining the amount to offer, the taxpayer’s income, expenses, and equity in assets are examined. Not everyone qualifies for an Offer in Compromise.
How Do I know if I Qualify for an Offer And Compromise
Not all taxpayers qualify for an Offer in Compromise. In order to qualify for an Offer in Compromise, the taxpayer cannot have the ability to repay the delinquent taxes over the life of the taxes owed. With the IRS, the statute of limitations is basically 10 years for the date of last assessment.
If I Qualify, How Do I Apply for an Offer And Compromise
When calculating the amount of the offer the IRS will look at household income, reasonable and necessary living expenses, and equity in assets. It takes a skilled practitioner to navigate a client through the Offer in Compromise process. John knows the rules, regulations and statutes to successfully represent his clients in an Offer in Compromise in order to obtain the best resolution possible.
Free Initial Offer And Compromise Consultation
Many Tax Resolution firms will sign up clients for an Offer in Compromise without verifying whether the client even qualifies for that program. Contact John today for a free consultation, he will review your income, expenses and assets and give you an opinion as to whether you qualify for an Offer in Compromise- saving you time and money!