Study shows that many people are unable to pay their taxes. Do you know where to start if you are unable to pay your taxes on time? One of the best things to do is to get more information before you take any steps. You should consider finding the info that will add benefits to you. IRS is the one that will guide you through the process. learn more below to know the steps you will need to follow to get an offer in compromise.
The first thing you should know is that it takes a process to apply for an IRS offer in compromise. There are things that can disqualify you if you are not careful. There are papers that you are supposed to fill out first. For instance, you will need to fill out two forms. These forms will show your income, other debts, bills, and also your assets. There is also a fee that you are supposed to pay for it to be taken as the waiver. You should also be able to pay 20% of the debt that you owe. You should know that the payment is non-negotiable.
You should also consider other qualifications when applying for an offer in compromise. The qualifications are a must-have when you are applying. Therefore, you should be sure that you will qualify before you fill out any forms. One thing that will disqualify you is being behind in your taxes, having a court-ordered tax debt and you are bankrupt. Also, provide the necessary information and the documents you are asked for. You are supposed to know that you will be disqualified if they find you have not paid the application fee.
If you want to be accepted when you apply for an offer in compromise, then you should consider giving out info. about your past present, and future income. You will also give out information about your car type and how you manage to pay the bills. You should know that you must have one thing that will be equal to your retained cash flow and you will get qualified. When you are accepted, you have two ways that you can pay your debt. Either by paying in installments or paying much money within five months.
It would be best if you get the benefits you will get after applying for an offer in compromise. You should know that you will be able to pay the debt in peace.