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Offer in compromise may help struggling taxpayers

Not being able to pay a bill can easily trigger a panic response in any Massachusetts resident. For some individuals, the bill that they cannot pay is their tax obligation, and unfortunately, this could lead to serious issues with the Internal Revenue Service. If a person is facing such a pressing matter and is unable to pay the outstanding balance in full, looking into applying for an offer in compromise may be an option.

An OIC could help qualifying parties pay the IRS less than the full balance that they owe. As part of the qualification process, individuals will have to submit an application that the IRS will review. If any information in the application is missing or incorrect, the IRS may automatically reject the application.

After reviewing the application, the IRS will use the financial information provided to determine an appropriate amount to settle the debt. However, if the agency believes that the taxpayer can pay off the entirety of the debt in a lump sum payment or through a payment plan, it will not approve a settlement through an OIC. Typically, only individuals facing significant financial hardship will qualify for this type of assistance.

Because ensuring that all information in an offer in compromise application is correct and that all the proper steps are followed, Massachusetts residents interested in possibly using this option may need help. Fortunately, there are legal resources available that could help parties gain reliable information and assistance relating to this option. Dealing with tax debt can be a considerable burden, but relief methods do exist.

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