Are there any other options besides an offer in compromise or an installment plan for my tax debt relief?

It can be a legitimate option if you can't. Frequently asked questions about the offer in commitment · Transcript · Appeal your rejected offer in. A commitment offer (OIC) is a payment plan that you can negotiate with the IRS to reduce your tax debt. With an OIC, you propose to pay a smaller amount to the IRS, depending on your ability to pay.

This is a good strategy, but keep in mind that it's not an easy or comfortable process. The IRS says the Offer in Compromise program isn't for everyone. The agency suggests that taxpayers “explore all other payment options before submitting a commitment offer.” Before the IRS considers an OIC, you must have filed all tax returns, received an invoice for at least one tax debt included in the offer, have made all the estimated tax payments required for the current year, and have made all the required federal tax deposits for the current quarter and the previous two quarters if you own a business with employees. There is a real legal dispute over whether or how much your tax debt actually exists.

It's an IRS tax debt relief program that allows you to settle your tax debt for less than the full amount you owe. A compromise offer is often the best option to get rid of tax debt you can't pay. A “compromise offer” is a little known but extraordinarily effective way for thousands of people with problems with the IRS to routinely eliminate tens of thousands of dollars in tax debts. If the IRS determines that you cannot pay any of your tax debts due to financial difficulties, the IRS may temporarily delay collection by stating that your account is currently uncollectible until your financial situation improves.

You can hire a qualified tax professional or a tax relief company to help you do the paperwork, but it's not mandatory and the money you pay them may be more than the money you expect to save on your taxes. Debt consolidation and debt settlement are two terms that are often linked together, but they are two completely different ways of managing debt. IRS Direct Pay is a secure service that you can use to pay your 1040 series taxes, estimated taxes, or other associated forms directly from your checking or savings account at no cost to you. Announcements about how to pay off your tax debt by cents on the dollar usually refer to the process of requesting a commitment offer from the IRS (OIC), which is an IRS program designed to help people pay at least part of their tax debt.

You can view the amount you owe along with the details of your balance, view your payment history, access Get Transcript to download or print your tax records, and view key information from your current year tax return as originally filed. In addition, the proposed payment amount must fully pay the assessed tax liability within 72 months or comply with the tax obligation in full before the due date of the collection statute (CSED), whichever is lower.

Lorraine Cernota
Lorraine Cernota

General social media junkie. Passionate writer. Infuriatingly humble web maven. General writer. Amateur pop culture specialist.