Taxes

What Should Your Offer Amount Be when Applying for OIC?

As a taxpayer, very few citizens try to learn the most basic things regarding tax and related system. This put us in a tight situation whenever we run into some tricky situation. Taxpayers who are currently unable to pay their debts can choose Offer in Compromise to pay the debt off. But most of them feel bewildered thinking about the amount they should offer. The amount you’ll need to come up with an initial offer is specified in Form 433. Your offer must, in essence, be equal to the net value of your assets and your monthly income. Form 433 contains all the instructions you need to create an offer. This page will tell in detail about more intricate matters.

Unusual Situations

Don’t panic if you determine that there is no means to pay off the debt after determining the value of your assets. Less money can be accepted by the IRS if you still offer them something to work with. Nevertheless, the IRS helps people who have medical or psychiatric problems. IRS is not as heartless as people assume the organization to be. Taxpayers just need to be honest and on time to avail themselves of some benefits. Particularly, the IRS will strongly evaluate someone with drug or alcohol-related disorders if they are in a difficult financial condition due to age.

Send a letter along with Form 433-A to the IRS if you’re serious about getting their attention. You only need to provide a concise summary of your predicament and difficulty. You don’t need to pen a wild novel or an emotional letter. To demonstrate your status, you will also need to present documentation from a physician. Make sure to clarify in your letter if your medical records don’t clearly indicate your danger.