What Benefits and Drawbacks Does an Offer in Compromise Have? An Offer in Compromise may seem like a fantastic offer if you are having trouble paying your taxes because all it takes is the submission of paperwork to the IRS. Before you proceed with OIC, it is extremely important to have a tax relief professional or a CPA on your side. Read on to know about the pros and cons of OIC.
Pros
Debt Reduction & Affordable Payments:
OICs offer persons who meet the requirements the possibility to reduce their debt and have a better chance of paying it off without giving up their assets or income. You can use the program to lower your obligation to a manageable sum. This manageable sum can be one that can be settled in a few manageable payments or simply just one payment.
Avoid Seizing Assets:
The most important thing for anyone who is having trouble paying their tax burden is to maintain control over their finances. Living paycheck to paycheck is difficult, and having tax debt can make it even more difficult. If your debt is not being paid on time, the IRS may garnish your wages and confiscate your property. However, an OIC can stop these IRS collection efforts. Your assets and wages should no longer be subject to a lien once you accept an offer made by the OIC program.
Cons
Public Records:
Once an OIC is accepted, it becomes part of the public record, and anybody can learn that you have paid off your tax burden through an OIC. You give up the right to keep your financial dealings secret by filing an OIC.
It is a tax professional who will be able to guide you in the best possible ways regarding issues related to your tax filing. As there are so many tax professionals, everywhere, you may feel a little confused when making your choice. Choose a tax professional who is well-experienced always, if you are looking for the best services. Be transparent when discussing about your issues with a professional.
Hire a tax professional today to know whether you are the right candidate for OIC!
