An Offer In Compromise Case Study

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Taxpayers who owe significant amounts of money to the Internal Revenue Service may feel as though they are out of options. However, repayment options exist for those with significant tax debts, including the Offer in Compromise. An Offer in Compromise is an offer to IRS to pay less than the total amount due in full satisfaction of the debt. While an Offer in Compromise is not available to every taxpayer and may not be the right choice for every taxpayer, attorney William Kunofsky offers all types of legal tax services in Dallas TX, including Offers in Compromise. Here, we discuss the necessary steps to apply for an Offer in Compromise - but taxpayers should contact a qualified tax attorney to discuss all available options. Tax Services in Dallas TX - Steps for Offers in Compromise Find out of you qualify. To initially qualify for an Offer in Compromise, you must have filed all your currently due tax returns on time. You also must have made any estimated quarterly payments due and, if you are a business owner with employees, you must have made all required payroll tax deposits. You must also be out of any active bankruptcy. If you are currently in bankruptcy, you cannot apply for an Offer in Compromise - you must wait until your case is closed.…show more content…
The application will ask you about how much you spend every month on your reasonable and necessary expenses as well as the value of the property you own. IRS has its own standards about how much you should be spending based upon the size of your family, and it will only consider your expenses valid up to those amounts. Information about how much they will allow is available at the IRS website. Finding a tax attorney for the application is advised - the information can get complicated and tricky, and filling out the form wrong will cost you time and money even if IRS rejects the
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