If you are suffering from heavy tax debts, you may apply for settlement with OIC.

But you will be shocked to know that the acceptance rates by the Internal Revenue System is less than 1% of the total number of applications that are filed each year.

You must be wondering why the acceptance rates are so low for the offers that are submitted.

Choosing a firm to help you out

Well you may come across a lot of advertisements of tax consultant firm offering to settle down the tax debts for you at much reduced rates. But you must be very careful while choosing a firm that offers IRS help.

A tax resolution company that is competent in its job will check the particular situation of the client and then provide all possible choices that are available to deal with the issues of the Internal Revenue System. The firm then goes on to explain all of the choices to the client and also advise them of outcomes of all the options, be it good or bad. This will enlighten the client of their chances for their tax resolution to be successful.

Then the client will gain proper knowledge if they qualified to submit an application for “Offer in Compromise” before they actually pay up handful of money to these untrustworthy companies.

Conditions for the IRS to accept your offer

Let us now look into the conditions in which the IRS will accept a proposed application for Offer in compromise. They are:

  1. If the liability is in doubt.
  2. There is an existing doubt related to collectability.
  3. Factors of equity and hardships influence your present conditions, and the offer that is put forward will result in effective promotion of the tax administration.

Well, these are the only conditions under which the IRS will accept your offer. All being said, one last advice is that choose OIC only if you have no other options left. And be wise to choose a firm that is really trustworthy and competent.

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