Tax Debt Relief

An offer in compromise may not be something that you can take advantage of to relieve your tax debt. But at the same time, you need to consider all options and this is one of the best. Many people don't even know that an offer in compromise exists. They think they know everything, and are unaware of what this is all about. If you truly want to get out of tax debt you need to think about every last strategy that could work in your favor.

An offer in compromise is easy to understand. As a taxpayer in debt you will make an offer to the IRS to settle for less than what you owe. If they accept you will pay the amount and the rest will be wiped out. When you hear the phrase "paying pennies on the dollar" this is what it means.

In order to be considered a candidate for an offer in compromise the IRS requires you meet one of the three following requirements:

* Doubt as to liability - You can show there is doubt that the amount owed is the correct amount.
* Doubt as to collectibility - You show it is highly unlikely that you would ever be able to pay that amount in full.
* Effective Tax Administration - If the debt was collected it would be unfair or inequitable because it would create financial hardship.

The main issue with tax debt relief through an offer in compromise is that the IRS does not have to accept. They can tell you that you do not qualify, which will then mean that you have to find another way to settle your taxes. It is believed that the IRS accepts approximately 10 to 15 percent of offers.

If you don't want to waste your time or are confused of how to get started, hire a tax firm with experience with this method of debt relief. Not only can they review your case, but if you are a candidate for an offer in compromise you will have all the professional help that you need. If you are not a likely candidate they will tell you the next best option for a person in your tax and financial situation.

An offer in compromise can help you find relief from tax debt. If you qualify, this is the option for you. Everybody wants to settle their debt for less than what they owe, but only a select few are eligible. There are many other methods available to settle tax debt owed, so if one doesn't qualify for an offer in compromise there are many other options that can help one's ability to resolve their tax problem.