The purpose of an Offer In Compromise is to provide a way for taxpayers who are unable to pay their full tax debt to resolve their debt and become current with their taxes. If your tax debt is too immense for you to pay in full, an Offer In Compromise could be a possible solution for alleviating the burden.
Now, you may be questioning if it will be better to submit an Offer In Compromise yourself or hire a professional for assistance.
In this blog post, we will discuss the benefits and drawbacks of managing an OIC by yourself as opposed to enlisting professional help. We'll also explore the various choices available for obtaining expert advice throughout the process.
An Offer in Compromise (OIC) is a part of the forgiveness program offered by the Internal Revenue Service (IRS) that allows the taxpayer to resolve their tax debt for significantly less than the actual amount owed. An OIC is a way for taxpayers who are unable to pay their full tax debt to resolve the debt and become current with their taxes.
To apply for an Offer In Compromise, a taxpayer must complete and submit the appropriate IRS forms and provide financial information, such as income and expenses, to support their request. If the Offer In Compromise is accepted, the taxpayer will be required to make payments towards the compromised amount as agreed upon with the IRS.
If the Offer In Compromise is not accepted, the taxpayer can either pay the full amount of the tax debt or explore other options for resolving the debt, such as an installment agreement or a hardship extension.
Some taxpayers may be wondering if they can handle the process of submitting an Offer in Compromise (OIC) themselves, rather than seeking professional help. While it is possible to handle an OIC process oneself, there are both pros and cons to consider.
One of the pros of handling an Offer In Compromise process oneself is the availability of free resources to assist with the process. The IRS provides a number of forms and instructions on its website to help taxpayers understand the OIC process and complete the necessary paperwork.
Additionally, various online resources, such as tax software and forums, can provide guidance on how to handle an Offer In Compromise process.
However, there are also potential challenges and risks to handling an Offer In Compromise process oneself. One challenge is the lack of knowledge about tax laws and the Offer In Compromise process. Tax laws can be complex, and it can be difficult for a taxpayer without professional training to understand all of the rules and requirements for an Offer In Compromise. This can make it harder to accurately complete and submit the necessary forms and documents.
Another risk of handling an Offer In Compromise process oneself is the possibility of making mistakes that could result in the Offer In Compromise being rejected. The IRS has strict guidelines for evaluating Offer In Compromise, and if a taxpayer makes mistakes on their forms or provides incomplete or inaccurate information, it could lead to their Offer In Compromise being denied. This can be frustrating and costly, as the taxpayer will then have to either pay the full amount of their tax debt or explore other options for resolving the debt.
If you are considering an Offer in Compromise (OIC) as a way to resolve your tax debt but are unsure if you can handle the process yourself, there are alternatives available. One option is to hire a professional, such as a tax attorney or enrolled agent, to assist with the OIC process.
Hiring a professional to help with an Offer In Compromise has a number of benefits. One benefit is the expert knowledge and experience that a professional brings to the table. A tax attorney or enrolled agent has specialized training and experience in tax laws and the OIC process, which can be helpful in navigating the process and increasing the chances of a successful outcome.
Another benefit of hiring a professional to assist with an Offer In Compromise is the ability to negotiate on behalf of the taxpayer. A professional can help negotiate the terms of the OIC with the IRS and advocate for the best possible resolution for the taxpayer. This can be especially helpful if the taxpayer has a complex financial situation or is facing a large tax debt.
Bringing on a professional to aid in your Offer In Compromise can significantly reduce the risk of faulty paperwork leading to an unnecessary rejection. An expert is able to guarantee that all forms and documents are correctly filled out and submitted, thus raising the likelihood of acceptance for your OIC submission.
If you are feeling confident and want to try submitting an Offer in Compromise on your own, remember to be honest about your financial situation and submit all the required documentation.
The pros of doing this by yourself include saving money on hiring a professional and having more control over the process.
However, the cons can include not being accepted due to missing key information or taking longer to complete than if you had hired a professional.