Offer in Compromise is used when a taxpayer owes a large debt amount to the IRS but doesn't have the funds to pay it off in full, then the IRS will usually allow that taxpayer to set up a monthly Offer in Compromise Payment Plan (also called an Installment Agreement.)  An Offer in Compromise Payment Plan is frequently the best resolution scenario for those tax debtors who do not qualify for an Offer in Compromise or other tax debt settlement program.  

As with all tax settlement programs, it is crucial to know and follow IRS guidelines when requesting an IRS Offer in Compromise Payment Plan. The primary concern with this type of resolution is determining the installment amount that will be enough to satisfy the IRS, but not so much that it creates an economic hardship for the taxpayer.  A good Installment Agreement will establish a "livable" monthly amount, so that the taxpayer can continue to make payments without defaulting. 

The difficulty in setting up a livable Offer in Compromise Payment Plan is that IRS Agents tend to be very demanding when they are trying to collect a debt, and so too often the unsuspecting taxpayer gets coerced into a Payment Plan that is too high and cannot be maintained for long. Eventually the taxpayer misses a payment and this only adds to their troubles. Defaulting on a Compromise Payment Plan makes your case with the IRS even worse! 

On the other hand, IRS Agents are typically more restrained when they must deal with a professional who knows all the rules and regulations. Plus, a knowledgeable tax professional will be able to determine the monthly payment amount that is appropriate based on the individual's income and circumstances - making the Payment Plan easier to stick to in the long run.

To qualify for an IRS Offer in Compromise Payment Plan you must have all of your tax returns filed. If you haven't done so already, our Back Tax Filing service can help you with this. 

Sensible Solutions Tax Relief will analyze your situation and help you successfully submit a proposal to the IRS for a tax debt Offer in Compromise Payment Plan that you can stick to. We will protect you from aggressive IRS Collections and get you free of your tax debt on terms you can handle. 

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