Offer In Compromise
Categories: Company Management
“OMG,” we whisper, as we stumble out of our tax preparer’s office in a daze. We knew we were probably going to end up owing a little more to the IRS this year, but we weren’t expecting a tax bill of $35,000. Who has $35,000 lying around? Not us, that’s for sure.
So...what do we do now? We don’t want to go all Martha Stewart and end up behind bars because we couldn’t pay our taxes.
Luckily, offers in compromise exist, and we plan on contacting the IRS posthaste to find out if we qualify. An “offer in compromise” is a program offered by the IRS to people who, like us, can’t afford to pay our taxes. If we make the grade, we might be able to settle on a significantly lower tax bill for the year.
Here’s how it works. We go online to the IRS’s website. We fill out a questionnaire. We provide a bunch of information, like our income and assets and expenses and whether or not we’re currently in the process of filing for bankruptcy. And once we do all that, the website will tell us whether or not we qualify for an offer in compromise. If we don’t, we’ll either need to come up with some type of installment plan, or we’ll have to start selling off our valuables, like the silver tea service and the children, to pay off that debt. But if we do qualify, we can keep the tea service and the children, which will undoubtedly make Grandma happy, and just work on paying our much-reduced tax debt.
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Finance allah shmoop What is the i r s Well
i rest might be the three most hated letters in
the alphabet Well after d m v a pms and
well maybe std The i r s is the internal
revenue service Their internal i e inside the government they're
in charge of collecting revenue A k a They take
money from your pocket in the form of taxes and
they deliver it to uncle sam and they you know
service you and it doesn't feel good So yeah these
are the guys from the us treasury department who checked
to make sure you filled out your income tax forms
correctly and submitted the proper amount And if you screwed
up in any way they will let you know about
it and a half in the form of angry letters
Phone calls knocks on your front door rocks through your
back window Whatever it takes to get you to pay
your fair share of taxes Like why should you get
away with not paying when the jones has paid all
they owed Or the irs can do even worse and
audit you with an audit he irs will request extensive
and very specific information and records from you Paycheck deductions
all kinds of things You claim that you did that
were deductible that may or may not have been forcing
you to spend hours upon hours at your public storage
unit digging through boxes you hoped and prayed you'd never
see again Well after the third solid week of having
your financial history poked and prodded like you've had to
turn your head and cough you uh might actually be
ready and willing to trade in those three letters of 00:01:35.13 --> [endTime] irs for rough one of those stds instead