What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Atlanta GA is an agreement in between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This uses to all taxes, including any interest, penalties, or additional amounts arising under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the total you owe. It provides qualified taxpayers with a path toward paying off their tax debt and getting a “fresh start.” The ultimate objective is a compromise that fits the very best interest of both the taxpayer and the IRS. To be thought about, generally you must make a proper offer based upon what the IRS considers your real ability to pay. It may be a legitimate alternative if you can’t pay your full tax liability, or doing so creates a monetary hardship.
A common myth or understanding thanks to advertisements 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 acquire a lower settlement of your tax debt, these advertisements provide an incorrect perception that a lot of offers are proper which the majority of deals will be accepted (even inappropriate offers).
The IRS considers your distinct set of facts and scenarios. So it is necessary that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are protected which an appropriate offer is made based upon your:
Capability to pay;
The OIC application needs you to explain your financial situation in detail, so prior to you proceed you must be willing to make a complete and total disclosure in the above areas.
Are You Eligible For An Offer In Compromise in Atlanta Georgia
Before the IRS will consider your deal, you should: (1) file all tax returns you are legally needed to submit, (2) make all required approximated tax payments for the current year, and (3) make all needed federal tax deposits for the existing quarter if you are an entrepreneur with workers. In addition, you are not qualified if you are in an open bankruptcy proceeding.
The OIC program is a choice for taxpayers who are unable to pay their tax quantities in a swelling amount or through an installation agreement and have exhausted their search for other payment plans. To qualify for the OIC program, taxpayers must have the ability to demonstrate and show that their tax quantity can not be settled under either a swelling amount or installment arrangement for starters.
All other payment choices need to be considered before sending an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS might legally compromise a tax liability for among the following reasons:
Doubt As To Liability: There is doubt as to whether the examined tax is proper.
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 should be higher than the amount of your possessions and future earnings.
Promote Effective Tax Administration: There is no doubt that the assessed tax is correct and no doubt that the quantity owed might be collected, but you have a financial challenge or other unique scenarios which might enable 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 acceptance.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.
Normally, the IRS will not accept an offer if you can pay your tax debt in full through an installation agreement or a swelling sum.
It is necessary to note that penalties and interest will continue to accrue throughout the deal examination procedure.