What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Bellevue WA is an agreement between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This uses to all taxes, consisting of any interest, penalties, or extra amounts developing 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 provides eligible taxpayers with a course toward paying off their tax debt and getting a “fresh start.” The supreme goal is a compromise that suits the best interest of both the taxpayer and the IRS. To be thought about, usually you must make a suitable deal based on what the IRS considers your real ability to pay. It may be a legitimate choice if you can’t pay your complete tax liability, or doing so produces a monetary challenge.
A common misconception or understanding thanks to advertisements 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 definitely acquire a lower settlement of your tax debt, these ads supply an inaccurate perception that most offers are suitable which many offers will be accepted (even inappropriate offers).
The IRS considers your unique set of facts and circumstances. So it is necessary that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are safeguarded and that an appropriate deal is made based on your:
Ability to pay;
The OIC application requires you to describe your financial circumstance in information, so before you continue you should want to make a complete and total disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Bellevue Washington
Before the IRS will consider your deal, you must: (1) submit all tax returns you are lawfully needed to file, (2) make all required approximated tax payments for the present year, and (3) make all needed federal tax deposits for the current quarter if you are an entrepreneur with staff members. In addition, you are not qualified if you are in an open personal bankruptcy case.
The OIC program is a choice for taxpayers who are not able to pay their tax amounts in a swelling sum or through an installment arrangement and have exhausted their search for other payment plans. To qualify for the OIC program, taxpayers must be able to show and prove that their tax amount can not be settled under either a lump sum or installment arrangement for starters.
All other payment alternatives should be thought about before submitting an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may lawfully compromise a tax liability for among the following reasons:
Doubt As To Liability: There is doubt regarding whether the assessed tax is correct.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the total amount you owe need to be higher than the sum of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is correct and no doubt that the amount owed might be gathered, however you have an economic hardship or other unique scenarios which may permit the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installations 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.
Usually, the IRS will decline a deal if you can pay your tax debt completely through an installation agreement or a lump amount.
It is very important to keep in mind that penalties and interest will continue to accumulate throughout the offer examination procedure.
Contact the Tax Attorney Network in Bellevue WA Today at (855) 980-7563
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