If you're behind on your taxes, you may need to contact someone who specializes in tax resolution. These professionals know how to negotiate the best arrangements possible with the IRS and state tax agencies, and they are familiar with the tax resolution options. A general tax preparer or accountant may not have in-depth knowledge about this aspect of the tax code. 

One of the resolution options is an offer in compromise. This is when the IRS or a state tax agency agrees to settle your tax debt for less than you owe. To help you decide if this might be the right option for you, take a look at the truth behind popular myths about the offer-in-compromise program. 

1. Myth: Everyone can qualify.

The offer-in-compromise program is hard to qualify for. If you owe taxes to the IRS, the agency wants its money. It typically will not settle unless it believes that the settlement represents the most amount of money it's going to be able to collect. 

To assess this fact, the IRS requires a detailed look at your financial situation. Typically, you provide this information by filing Form 433-A (Collection Information Statement) which requires a full disclosure about all of your assets and debts.  

2. Myth: It's easy to apply for an offer on your own.

You can apply for an offer in compromise on your own, but it's not necessarily an easy process. In addition to the above form, you also must submit Form 656 (Offer in Compromise). Plus, you need to send supporting documents, and you need to make an offer that's likely to be accepted. A tax resolution specialist can help increase your chance of success with this process. 

3. Myth: States have the same rules as the IRS.  

States all have different rules related to tax resolution. Some states have an offer in compromise program, while others don't. Even if a state has an offer-in-compromise program, it may not follow the same rules as the IRS. If you have both state and federal tax debt, you need someone experienced dealing with your state revenue agency. 

4. Myth: The settled tax debt permanently disappears.

Generally, this is true. If you get an offer in compromise, part of your tax bill will be erased permanently. However, this isn't set in stone. If you don't keep up with your tax obligations, the IRS has a certain amount of years where it can reverse your offer. For instance, if you don't file a return or miss a payment during the time period outlined in your settlement paperwork, your offer can be rescinded and the tax will be due in full. 

To learn more about whether or not this resolution option is right for you, contact a tax resolution specialist.