If you meet the requirements for the OIC (Offer In Compromise) program, you must apply by following these steps:
- If applicable, complete the 433-A OIC form for individuals
- Complete the 433-B OIC form for businesses on the 656 Offer in Compromise form.
- You will be required to pay the $186 application cost.
- The IRS may even inform you that you are exempt from paying the necessary fees such as the initial and application fee provided you meet certain criteria such as fulfilling certain low-income conditions.
Are there any fresh start programs?
A taxpayer in need of assistance can also take use of a few other initiatives to reduce their tax burden. Even though they don’t totally discharge the obligation, they are nonetheless beneficial.
Tax Liens
When a taxpayer owes their taxes, the government typically files something referred to as a lien notice. You might now owe up to $10,000. All this becomes possible because of the Fresh Start program. However, there are some exclusions. If you agree to a direct debit installment plan, you can ask the IRS to release the tax lien that you have been issued.
Installment contracts
A taxpayer can direct debit a specific sum of money from their account each month as part of an installment agreement. However, there are certain requirements such as targeting to pay off $50,000 in debt within six years. For those who want to settle their tax debt in 120 days or less, there is a short-term payment plan as well as a long-term payment agreement. You make a little payment for the lengthy contract. Businesses can also use this, although they are only permitted to borrow a maximum of $25,000 per transaction. More information about the author of the tax forgiveness program can be found here.
