According to the IRS, an offer in compromise is an agreement between you and the IRS that allows you to resolve the fees you owe for less than the full amount. Unexpected tax obligations can be a stressful experience for any company owner.
At Life on Thrive, our professional team can help remove this pressure by working with you to submit an offer in compromise. We provide representation and guidance to businesses throughout Long Beach and the surrounding communities. Contact us today to find out if you might be eligible for this tax break.
Could Your Business Qualify for an Offer in Compromise?
Offers in compromise are awarded only in the following specific cases:
Doubt in Liability: The IRS can accept an OIC if there is a legitimate dispute regarding the amount of the tax debt.
Doubt in Ability to Collect: If a taxpayer’s income and assets are less than the debt owed, an offer in compromise may be accepted by the IRS.
Effective Tax Administration: In this case, there is no question as to the amount owed by the taxpayer, nor their ability to pay owed taxes; however, requiring payment in full would create economic hardship.
While applying for an offer in compromise is not particularly difficult, it does require great attention to detail. To have your offer in compromise considered, we help you file all tax returns and plan all required estimated tax payments for the current year. Business owners applying for an offer in compromise are also responsible for all required federal tax deposits for the current quarter.
Benefits of an Offer in Compromise
Once you’ve filed for an offer in compromise, you are released from having to continue to pay toward the bill until a decision is reached. Additionally, no garnishments or liens will be placed on your account during that time. If the federal government accepts your request for an offer in compromise, repayment is a convenient process. You will be provided with two options to settle the newly reduced obligation. You can elect to settle it in a lump sum or monthly installments.
Comprehensive Support from Life on Thrive
Gaurav Bajaj and our detail-oriented team at Life on Thrive enjoy helping you find solutions to tax debt and relieving you of financial stress. Regardless of the complexity of your case with the IRS, we take the time to explore all possibilities, including the benefits of an offer in compromise, so that you can achieve a manageable resolution. Call our Long Beach office today to schedule an initial consultation.