In the unfortunate event that you have been a tax defaulter and are incapable of paying the tax debts to the IRS, you may like to look towards an expert for relief from taxation and legal tangles. In special circumstances, an offer in compromise may be your way out. This process is fraught with many issues and is advisable to hire a professional to handle the issue. It is not a mandate by the courts but can make your life very easy.
The process of handling offers in compromise: Confusion is rampant in the process as when the defaulter gets a call from the IRS regarding the relevant financial details. It is illegal to lie about the details, but perfectly legal to change the details of the financial layout after the explanation is made. Not every defaulter is allowed to make an offer in compromise. The defaulter who is entitled to the process usually has no assets. The no asset clause is important as assets can be sold and debts paid through the sale. The person should be in a situation where the tax debt is insurmountable and it is not possible to pay them in the foreseeable future. In these tough circumstances there is a chance to be favorably assessed.
How to appoint the best attorney?
The IRs chief cautions defaulters to stay away from attorneys who charge exorbitant fees in lieu of assurances of getting an offer in compromise accepted. Do choose your lawyer after great deliberations as there are many who stake great claims, but cannot deliver on their promise. The form 656 should be filled with great care. This form is the basis of the acceptance or rejection of your petition. The IRS deliberates whether the form is correct and complete. The figures say that only about 17% of the forms are actually accepted as offers of compromise. A taxation expert will go a long way in sorting out the issues on hand and will help you get closer to a solution for your tax relief problems.
Points to be considered
If the applicant is to get married, a prenuptial agreement proving the independence of the spouse’s wages helps in protecting the basic income of the spouse. It is advisable to lease property rather than buying it, so that the defaulter is secure and benefits from the compromise.