What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Augusta GA is a contract between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This uses to all taxes, consisting of any interest, penalties, or additional quantities arising under the Internal Revenue Code.
An offer in compromise permits you to settle your tax debt for less than the total you owe. It provides eligible taxpayers with a course towards paying off their tax debt and getting a “fresh start.” The ultimate goal is a compromise that matches the very best interest of both the taxpayer and the IRS. To be thought about, generally you need to make a suitable offer based on what the IRS considers your true ability to pay. It might be a genuine choice if you can’t pay your complete tax liability, or doing so creates a monetary challenge.
A common misconception or understanding thanks to advertisements is the impression that taxpayers can easily settle their tax liability “for cents 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 many deals are appropriate and that most offers will be accepted (even improper deals).
The IRS considers your distinct set of truths and scenarios. So it is essential that you have representation from an experienced tax professional, such as The Tax Attorney Network, so that your interests are safeguarded and that a proper offer is made based on your:
Ability to pay;
The OIC application needs you to explain your financial circumstance 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 Augusta Georgia
Prior to the IRS will consider your offer, you must: (1) submit all tax returns you are legally needed to file, (2) make all required approximated tax payments for the existing year, and (3) make all needed federal tax deposits for the present quarter if you are an entrepreneur with employees. In addition, you are not qualified if you are in an open insolvency case.
The OIC program is an option for taxpayers who are unable to pay their tax amounts in a lump sum or through an installation agreement and have exhausted their look for other payment plans. To qualify for the OIC program, taxpayers must have the ability to demonstrate and show that their tax amount can not be settled under either a lump amount or installation agreement for beginners.
All other payment choices need to be considered before sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may legally compromise a tax liability for among the following reasons:
Doubt As To Liability: There is doubt regarding whether or not the evaluated tax is appropriate.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the overall quantity you owe should be greater than the sum of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is appropriate and no doubt that the amount owed could be collected, but you have a financial hardship or other unique situations which might 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 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 a deal if you can pay your tax debt in full through an installation contract or a swelling sum.
It is essential to note that penalties and interest will continue to accumulate throughout the offer examination process.