If you qualify for Offer in Compromise there can be significant benefits, some of these benefits include:
- Collection efforts by the Internal Revenue Service will be halted while the Offer in Compromise application is under review.
- The taxpayer may ultimately pay less than the original tax liability owed.
- Offer in Compromise may eliminate tax liens against personal property after the debt settlement amount has been paid.
- Offer in Compromise may eliminate the need to file for bankruptcy.
- Offer in Compromise can offer a fresh financial start for an individual by eliminating the headache of the unpaid tax liability.
It is important to remember that a debt owed to the Internal Revenue Service is unlike other types of debt. Do not wait to contact the Internal Revenue Service if you are unable to pay your federal tax bill in full or if you get behind on your taxes. It is important to take immediate action to eliminate all federal tax debt. The Internal Revenue Service has a variety of methods it can use to collect tax liability including: wage garnishment, levying back accounts, and applying tax liens to your personal property.
If you owe federal taxes and are not able to pay your tax bill, call a tax attorney who can discuss all your tax debt settlement options.