HOLLYWOOD OFFER-IN-COMPROMISE AND TAX RELIEF
What to Know About Settlement of Taxes in Hollywood
What is the IRS offer-in-compromise program? An offer-in-compromise is an agreement between the IRS and a taxpayer that settles a tax debt for less than the amount owed. Similar to payment plans and other IRS tax relief programs, taxpayers need to meet certain compliance and collectibility requirements in order to qualify.
How can I get tax debt relief using an offer-in-compromise?
Before the IRS can consider a tax settlement, both individual and business taxpayers must have all tax returns filed and be in compliance with withholding and federal tax deposits. In most cases, the IRS will only accept a settlement of debt if it deems that it can collect more from a taxpayer through an offer-in-compromise compared to the reasonable collection potential of the remaining collection statute.
What else do I need to know about getting a tax settlement with the IRS?
The IRS expanded the offer-in-compromise program in May of 2012 as part of its Fresh Start initiative. The agency now determines if a taxpayer qualifies for a settlement of taxes by using more favorable calculation methods. For example, to determine the amount needed to make a “cash offer”, the IRS now uses a 12 month calculation compared to 48 months, as used before. Moreover, the IRS now permits taxpayers to include certain expenses in the offer-in-compromise calculation, such as state payments for back taxes, credit card payments, and student loan payments, among others.
If you need help with setting up an IRS offer-in-compromise in Hollywood, contact us today at 1-714-382-6780 for a free, confidential assessment with experienced Hollywood CPAs, enrolled agents, and tax attorneys.
See all Hollywood Tax Relief services