Wage Garnishment and Offer In Compromise
A wage garnishment happens when the IRS finds the taxpayer to be unresponsive to its notices and letters. IRS has the right to cut a percentage from your wages until the due amount is fully paid. The procedure can put people in a tricky financial situation. An OIC can help taxpayers to save their wage while paying a lesser amount to pay the debt off. Read more to find ways to steer clear through the mess.
How long does the processing take?
Depending on the circumstances, the compromise procedure can take a while, although the majority of OICs are processed after a few months. The IRS does not have to complete the application within a certain amount of time. Regardless of whether the request is approved or denied, the IRS has a maximum processing time of 7 months. During the procedure, applicants are able and encouraged to make payments to both their current plan and the request’s specified plan. While fines are possible during this time, collection efforts are typically put on hold.
Should I submit my offer by myself?
For one person, submitting an OIC can be quite stressful. If you can afford it, it would be advisable to engage a tax expert to assist you with the procedure. Most people find the stress and paperwork to be too much, especially those who are unfamiliar with tax procedures. The IRS doesn’t facilitate the process or make it simpler for people, but a tax expert can ease the burden and provide direction on what steps to follow to be approved.
How do I pay a compromise offer?
If your OIC is approved, you will have a wide range of payment alternatives to choose from. When you first receive the offer, you must specify your payment terms, which should include a lump sum payment and a repayment schedule.