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

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – Beverly MA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Beverly MA 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, including any interest, penalties, or additional amounts emerging under the Internal Revenue Code.

An offer in compromise allows you to settle your tax debt for less than the total you owe. It offers eligible taxpayers with a course towards paying off their tax debt and getting a “fresh start.” The supreme goal is a compromise that matches the very best interest of both the taxpayer and the IRS. To be considered, generally you need to make a proper offer based on what the IRS considers your real capability to pay. It may be a genuine option if you can’t pay your complete tax liability, or doing so develops a financial hardship.

A common 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 certainly get a lower settlement of your tax debt, these advertisements provide an inaccurate understanding that most offers are proper and that the majority of offers will be accepted (even unsuitable offers).

The IRS considers your distinct set of truths and situations. So it is important that you have representation from a skilled tax expert, such as The Tax Attorney Network, so that your interests are secured and that an appropriate offer is made based upon your:

Capability to pay;
Earnings;
Costs; and
Asset equity.

The OIC application requires you to describe your monetary situation in information, so prior to you proceed you should be willing to make a complete and complete disclosure in the above areas.

Are You Eligible For An Offer In Compromise in Beverly Massachusetts

Prior to the IRS will consider your offer, you must: (1) file all tax returns you are lawfully needed to submit, (2) make all needed estimated tax payments for the existing year, and (3) make all needed federal tax deposits for the existing quarter if you are a company owner with staff members. In addition, you are not qualified if you are in an open insolvency case.

The OIC program is a choice for taxpayers who are unable to pay their tax amounts in a swelling amount or through an installment agreement and have exhausted their look for other payment arrangements. To receive the OIC program, taxpayers need to have the ability to demonstrate and show that their tax quantity 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 lawfully jeopardize a tax liability for among the following factors:

Doubt As To Liability: There is doubt as to whether or not the assessed tax is appropriate.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the total amount you owe should be greater than the sum of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is proper and no doubt that the amount owed might be gathered, but you have an economic difficulty or other special 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 notification 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 a deal if you can pay your tax debt in full through an installation contract or a lump sum.

It is very important to keep in mind that penalties and interest will continue to accumulate during the offer examination process.

Contact the Tax Attorney Network in Beverly MA Today at (855) 980-7563

irs tax lawyer

Map of Beverly MA

Some Other Cities in Massachusetts That You Might Be Interested In:

  • Tax Lawyer Boston MA
  • Tax Lawyer Springfield MA
  • Tax Lawyer Worcester MA
  • 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