5 Ways to Lower Your Offer in Compromise Cost
The key to lowering your offer in compromise cost is knowing how the IRS settlement guidelines work as well as being able to negotiate with the IRS. Here are 5 great ways to lower your offer in compromise cost:
- Let the IRS know you are considering bankruptcy as another option. If you file as bankrupt, the IRS will get no money and they are fully aware of this, so they will likely listen more to your demands if they think they could get nothing from you if they don’t.
- Ensure that the offer in compromise cost does not cover certain items of property that are exempt from being included in what you offer the IRS. Such objects include everyday objects you have around your house, as well as certain objects you may have related to your business.
- You should know how to get to ‘quick’ sale value for your property. You are allowed to sell for 20% below the ‘fair market value’ of the property under the guidelines of the IRS. Such property you should do this for includes houses and cars.
- The IRS has guidelines related to how much you are allowed for living expenses within the offer in compromise. They will allow you a certain monthly amount for certain things, and you should be aware of what your allowances are.
- Make sure you know what income you have that the IRS has no right to take from you. Your offer in compromise cost does not include income such as unemployment benefits, social security benefits for those that are disabled or aged and worker’s compensation.
The more you know about the IRS guidelines for your offer in compromise cost, the more you can lower it. Make sure to be as thorough as possible in the settlement process.
