What happens AFTER our company strikes a deal on your behalf with the IRS?
The IRS agrees that you cannot pay back all of your taxes and that a settlement is in everyone’s best interest we have to make sure that the IRS Offer in Compromise remains in force.
There are four big things you need to know after you have struck an OIC with the IRS.
You need to stay current on your taxes now, or at least for next the five years, and hopefully forever.
If you don’t want to hear from an IRS debt collector ever again after settling with the IRS you must remain compliant on your tax filing and payment obligations for five years after your Compromise has been accepted. The IRS gave you a special deal and the best course of action after your compromise has been accepted is rigid adherence to all of your IRS filing and payment requirements.
We’re here to help with that.
If you get a refund this year, you can’t keep it.
Any refund to which you are entitled for the year the IRS accepts your offer will be kept by the IRS- that’s the rule.
For example, if the IRS gave you a notice that your offer was accepted on May 21, 2018 and in 2019 you are entitled to a refund from the IRS the IRS will keep the refund.
A condition of almost every accepted offer is the loss of any tax refunds in the year the offer is pending, up to acceptance. Sadly, you can’t even apply that refund towards your settlement.
This is only the case for the year in which your offer was accepted. For future years, you WILL be able to get a refund.
Look at your withholdings now, and make adjustments so that you will NOT overpay your taxes. Be careful though, over adjusting withholdings will result in owing a large amount in taxes next year.
Federal tax liens are released!
An accepted offer requires the IRS to remove any liens from your credit report, and enables you to begin rebuilding your credit score. Your property will be released from liens (including your house), and if you want to purchase a house in America, the lien will no longer affect you.
Time to get your transcript for your own records.
Once you’ve made you’re the final payment, keep documentation of your payments for proof! We can pull your transcripts for you also, or you can call the IRS yourself, that will authoritatively verify the information for you.
Most of all, it’s time to let the relief of the weight being lifted from your shoulders to truly and finally sink in.
We’d love to help you make this happen. We’re in your corner!
David C. Zubler
Your Tax Care