Georgia Tax Debt Settlement: Qualifying for an Offer in Compromise
If you live in the state of Georgia and are unable to pay your total tax debt, you may qualify for a tax relief program called an Offer in Compromise (OIC). In some cases, the Georgia Department of Revenue allows a taxpayer to settle their tax debt for less than the amount that they actually owe. Each case is reviewed individually, and the Department of Revenue generally looks at the following factors to determine whether or not to grant an OIC:
- The taxpayer’s ability to pay the total due
- The amount of equity the taxpayer has in assets
- All current and future income
- All current and future expenditures
- Any unusual or changed circumstances or life event
- Whether the state will be able to collect the full amount in a reasonable time
- Is granting an Offer in Compromise in the state’s best interest?
Preparing Your Offer in Compromise Application
The state reviews many Offer in Compromise applications each year. The most successful applications generally illustrate one or more of the following:
- Doubt that the taxpayer could ever actually pay the full amount of taxes due
- Doubt that the taxpayer actually owes the full amount of taxes assessed
- Proof that collecting the full amount due would create a significant economic hardship on the taxpayer if collected.
To submit an application for an Offer in Compromise to the Georgia Department of Revenue, you must provide detailed financial information to document your financial situation. The Department of Revenue recommends that you include a collection statement with all appropriate documentation along with a written summary explaining why paying the full amount will create a significant financial hardship for you. You should be prepared to include financial documents including bank statement, mortgage statements, debt summaries, etc.
In addition, in order to qualify for an Offer in Compromise in the state of Georgia, you must also have filed all past tax returns and reports and you must have received a final notice from the state for all taxes that you owe. Finally, you cannot be the subject of an active bankruptcy claim to qualify.
Submitting Your Offer in Compromise to the State of Georgia
If you think that you may qualify for an Offer in Compromise from the State of Georgia, you may want to consider hiring a professional tax firm to help you submit the strongest possible application. Success Tax Relief can work with taxpayers in the state of Georgia to submit all necessary paperwork and financial documentation for an offer in compromise. Our team of tax relief specialists can work directly with the Department of Revenue on your behalf as well to lessen the overall stress of your tax situation. Not all Offer in Compromise applications will be approved so you want to make sure that you present a strong case. Success Tax Relief can help you with the entire OIC process from start to finish. For more information or to speak with a member of the Success Tax Relief team, call us at 877-825-1179. You can also contact us online for a free consultation.