Common Offer In Compromise Mistakes People Make

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Individuals who owe more unpaid taxes than they could ever realistically pay back, such people qualify for an “offer in compromise” (OIC). every IRS rejects thousands of OIC submitted to them based on variety of reasons. If you do not expect the same for yourself and get the IRS offer in compromise help, then stop making these mistakes: 

Mathematical errors
Simple mathematical errors can lead to a rejection of OIC by the IRS. Whether you fill out the Form 433, which is required for the OIC proposal, or you allow a CPA or an EA to fill out the form on your behalf, it is crucial that you check that there are no such calculation errors like not adding up basic figures correctly are simple mistakes that can doom your OIC.

Overspending
The IRS can scrutinize your spending to ensure that they match up with the money you have at your disposal. If IRS found you spending huge amounts on vacations, buying consumer goods like electronics, cars, then chances of rejection are pretty high. You may be required to resubmit a fresh application briefing about your income and assets.

Ignoring the Statute of Limitations
The IRS gives 10 years to collect on tax debts that taxpayers owe to the government. Before you submit a new OIC, you should verify whether or not the tax debt is still active or if it is past its statute of limitations. Hire a tax professional who can help you out with these. 

There are many other such mistakes that individuals make and there IRS debt becomes way more complicated. Make sure you don’t commit these three mistakes and get your OIC accepted soon.

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