What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Blacksburg VA is an agreement in between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, including any interest, penalties, or extra quantities emerging 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 offers qualified taxpayers with a path towards settling 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, normally you must make a suitable deal based upon what the IRS considers your real capability to pay. It may be a genuine alternative if you can’t pay your full tax liability, or doing so develops a financial difficulty.
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 obtain a lower settlement of your tax debt, these ads offer an incorrect perception that the majority of offers are proper which a lot of offers will be accepted (even inappropriate deals).
The IRS considers your special set of realities and scenarios. So it is very important that you have representation from an experienced tax professional, such as The Tax Attorney Network, so that your interests are safeguarded which a proper deal is made based on your:
Capability to pay;
The OIC application needs you to describe your financial scenario in information, so before you continue you need to be willing to make a complete and total disclosure in the above locations.
Eligibility For An Offer In Compromise in Blacksburg Virginia
Prior to the IRS will consider your offer, you should: (1) file all tax returns you are legally required to file, (2) make all required approximated tax payments for the current year, and (3) make all required federal tax deposits for the current quarter if you are a business owner with staff members. In addition, you are not eligible if you remain in an open personal bankruptcy proceeding.
The OIC program is an alternative for taxpayers who are unable to pay their tax quantities in a swelling amount or through an installation agreement and have tired their search for other payment plans. To qualify for the OIC program, taxpayers must be able to demonstrate and prove that their tax amount can not be settled under either a lump amount or installment contract for starters.
All other payment alternatives must be considered prior to sending an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS may legally jeopardize a tax liability for among the following reasons:
Doubt As To Liability: There is doubt as to whether or not the evaluated 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 quantity you owe should be higher than the amount of your properties and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is proper and no doubt that the quantity owed might be gathered, however you have a financial difficulty 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 fewer installations within 5 or less months from notice of approval.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.
Normally, the IRS will decline an offer if you can pay your tax debt completely through an installation contract or a lump sum.
It is very important to keep in mind that penalties and interest will continue to accumulate throughout the deal evaluation procedure.
Contact the Tax Attorney Network in Blacksburg VA Today at (855) 980-7563
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