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Offer in Compromise – Alameda CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Alameda CA is a contract in between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This applies to all taxes, consisting of any interest, penalties, or additional quantities occurring under the Internal Revenue Code.

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It offers eligible taxpayers with a course toward paying off their tax debt and getting a “fresh start.” The supreme objective is a compromise that matches the very best interest of both the taxpayer and the IRS. To be thought about, normally you need to make an appropriate offer based upon what the IRS considers your real ability to pay. It may be a genuine choice if you can’t pay your complete tax liability, or doing so creates a financial hardship.

A typical misconception or perception thanks to ads is the impression that taxpayers can quickly settle their tax liability “for pennies on the dollar” through the offer in compromise program. While you can definitely obtain a lower settlement of your tax debt, these advertisements provide an incorrect understanding that many deals are appropriate which many offers will be accepted (even improper deals).

The IRS considers your special set of facts and circumstances. So it is important that you have representation from a knowledgeable tax professional, such as The Tax Attorney Network, so that your interests are secured which an appropriate deal is made based upon your:

Ability to pay;
Earnings;
Costs; and
Possession equity.

The OIC application needs you to describe your financial scenario in information, so before you proceed you should be willing to make a full and complete disclosure in the above areas.

Eligibility For An Offer In Compromise in Alameda California

Prior to the IRS will consider your offer, you should: (1) submit all tax returns you are legally required to file, (2) make all needed estimated tax payments for the existing year, and (3) make all required federal tax deposits for the existing quarter if you are a business owner with employees. In addition, you are not eligible if you are in an open insolvency proceeding.

The OIC program is an alternative for taxpayers who are not able to pay their tax amounts in a swelling amount or through an installation agreement and have tired their search for other payment arrangements. To get approved for the OIC program, taxpayers need to have the ability to demonstrate and prove that their tax quantity can not be settled under either a swelling sum or installation agreement for beginners.

All other payment choices should be considered prior to sending an offer in compromise. The Offer in Compromise program is not for everyone.

The IRS may legally jeopardize a tax liability for one of the following factors:

Doubt As To Liability: There is doubt as to whether or not the examined tax is right.
Doubt As To Collectability: There is doubt that you could ever pay the full amount of the tax owed. In these cases, the overall quantity you owe should be higher than the amount of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is proper and no doubt that the amount owed could be gathered, but you have a financial challenge or other unique scenarios which may allow the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installations within 5 or fewer months from notice of approval.
Short-term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS gets the OIC.

Generally, the IRS will not accept an offer if you can pay your tax debt completely through an installment arrangement or a lump sum.

It is important to note that penalties and interest will continue to accrue throughout the deal assessment procedure.

Contact the Tax Attorney Network in Alameda CA Today at (855) 980-7563

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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters, and electronic mail. Contacting us does not create an attorney-client relationship.

     

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