This free calculator will help you determine how much you may be able to reduce your tax debt to the IRS. The Offer in Compromise is the most popular and effective way to actually reduce the money you owe the IRS and anyone can file one. This calculator contains calculations the IRS uses to determine approval of and Offer in Compromise. Basically it is a mathematical formula to determine offer amount and is based entirely on your ability to pay. So let's get started by filling in your information below.
Hopefully the calculation indicates you will get a substantial savings. If it the results indicate you will reduce your tax debt with an Offer in Compromise, it is in your best interest to submit an offer to the IRS. If the calculator does not indicate you will save money, you should look at your assets, debts, income and expenses more closely to see if the amounts are accurate. Even if you can't qualify for an Offer in Compromise, this website will look at different ways to handle your problem with the IRS.
The results from this calculator are just an approximation of what you may save with an IRS Offer in Compromise. As we examine the Offer in Compromise closer, we discover it is quite complicated. Before we get to the actual IRS Form 656 for the Offer in Compromise, we need to complete the IRS Form 433-A and perhaps the Form 433-B. This is where you will be entering detailed information about your assets, debts, income and expenses. The forms can be extensive and intimidating and require a lot of your personal information.
The most important section of the IRS Form 433-A is the Income and Expense section. If you have a business, you may also need to complete the Form 433-B. The IRS gives these forms extreme scrutiny. The IRS and most tax firms will not tell you, there are actual limits to your debts and expenses. To make sure your offer will be accepted, you will need to make sure you are within the IRS limits. One method to find out the best way to present your Offer in Compromise to the IRS is to use a tax service or a tax attorney. Unfortunately these services can cost from $3,000 to $7,000. A low cost alternative is using IRSexpress.com, which help you through the process and costs under $200. Use this website to help you, it has many articles and videos that will help you resolve you IRS problem.