Have a Question? Call Us: (855) 980-7563

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – Apple Valley CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Apple Valley CA is an arrangement between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This applies to all taxes, including any interest, penalties, or extra amounts arising under the Internal Revenue Code.

An offer in compromise enables you to settle your tax debt for less than the full amount you owe. It offers eligible taxpayers with a path toward paying off their tax debt and getting a “fresh start.” The ultimate goal is a compromise that fits the best interest of both the taxpayer and the IRS. To be thought about, generally you need to make an appropriate offer based on what the IRS considers your true ability to pay. It might be a legitimate choice if you can’t pay your full tax liability, or doing so creates a financial difficulty.

A typical misconception or perception thanks to ads is the impression that taxpayers can quickly settle their tax liability “for cents on the dollar” through the offer in compromise program. While you can certainly get a lower settlement of your tax debt, these ads supply an incorrect understanding that many offers are proper and that the majority of offers will be accepted (even unsuitable deals).

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

Ability to pay;
Earnings;
Expenditures; and
Asset equity.

The OIC application requires you to explain your monetary scenario in detail, so before you continue you need to want to make a complete and complete disclosure in the above areas.

Are You Eligible For An Offer In Compromise in Apple Valley California

Before the IRS will consider your offer, you need to: (1) submit all income tax return you are legally needed to file, (2) make all needed estimated tax payments for the existing year, and (3) make all required federal tax deposits for the current quarter if you are a business owner with employees. In addition, you are not eligible if you are in an open bankruptcy case.

The OIC program is an option for taxpayers who are not able to pay their tax amounts in a lump amount or through an installment contract and have actually tired their search for other payment arrangements. To receive the OIC program, taxpayers need to be able to show and show that their tax amount can not be settled under either a swelling amount or installation contract for starters.

All other payment alternatives need to be considered before sending an offer in compromise. The Offer in Compromise program is not for everybody.

The IRS might legally compromise a tax liability for one of the following reasons:

Doubt As To Liability: There is doubt as to whether the examined tax is correct.
Doubt As To Collectability: There is doubt that you could ever pay the total of the tax owed. In these cases, the overall amount you owe need to be greater than the sum of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is right and no doubt that the quantity owed could be gathered, however you have a financial challenge or other special situations which may permit the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installments within 5 or less months from notification of approval.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS gets the OIC.

Typically, the IRS will not accept an offer if you can pay your tax debt in full through an installation arrangement or a lump amount.

It is necessary to keep in mind that penalties and interest will continue to accumulate during the deal evaluation procedure.

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

tax attorney

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.

     

© 2020 The Tax Attorney Network