Are you looking for a way to reduce your debt to the IRS? An Offer in Compromise (OIC) may be the answer you’re looking for. This article will provide tips on how to make sure your OIC gets approved by the IRS. Read on!
Sweetening the Deal: Tips for an IRS Offer in Compromise
When you submit an Offer in Compromise, you are essentially making a deal with the IRS. In exchange for settling your tax debt for less than the full amount you owe, the IRS has to accept your offer. Here are a few tips to sweeten your deal and make sure your OIC is accepted.
- Calculate your Reasonable Collection Potential (RCP): Knowing your RCP is key to submitting an offer in compromise. Your RCP is the amount the IRS calculates that you can pay over a period of time. To calculate your RCP, take into account your income, expenses, assets, and liabilities.
- Show that you are economically disadvantaged: Demonstrating to the IRS that you are financially struggling can be a great way to increase your chances of having your offer in compromise accepted. Showing proof of unemployment, medical bills, or other financial hardships may help you obtain the desired result.
Making Your Offer Irresistible to the IRS
Once you have calculated your RCP and provided evidence of economic hardship, another great way to make sure your offer in compromise is accepted is to provide proof of an inability to pay the full amount you owe. This may include any of the following:
- Demonstrate that if you paid the IRS in full, you would not have enough money to cover your basic living expenses.
- Show that the amount you owe is more than the amount the IRS can collect.
- Provide proof that your assets are not enough to cover the full amount you owe.
By following these steps, you can make your offer in compromise irresistible to the IRS.
Getting an offer in compromise approved by the IRS can be a daunting task. However, by following the tips provided in this article, you can make your offer irresistible to the IRS and reduce your debt. Good luck!