Offer In Comprimise for Your Protection

If you need to obtain an offer in compromise from the IRS then you are going to have to employ a tax attorney to negotiate with the IRS on your behalf. Essentially, an offer in compromise is a deal with the IRS in which you are determined to owe them a substantial amount of money in back taxes and the IRS agrees to settle with you for a lesser dollar amount to be paid in a one time lump sum.

Receiving an offer in compromise is not always easy which is why you will need to have a tax attorney represent you in the negotiations. If the IRS has found that you owe them money, there are a few options that you will have for refund. You can set up a monthly repayment plan and pay in installments, or you can offer them a lump sum of money to make good on the entire debt.

If you determine to make monthly payments the IRS will tack on interest to what you owe that will continue to accrue over time. However, if you decide to commit them in one lump sum you will be responsible for back interest payments and fees but you will have reached a settlement on the debt and this type of arrangement will end up saving you money in the long run.

If you can afford to come up with a lump sum of cash in order to offer them it is a much better option than paying the balance off in monthly installments. You will have fulfilled your debt and be able to move forward. Hire a complete tax attorney to guide you throughout the procedure of obtaining an offer in compromise and you’ll be back on your feet financially and on the path towards recovery much sooner.