What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Brookhaven GA is an agreement in between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This applies to all taxes, consisting of any interest, penalties, or additional quantities developing under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the total you owe. It offers 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 best interest of both the taxpayer and the IRS. To be considered, typically you must make a suitable offer based upon what the IRS considers your real ability to pay. It might be a genuine option if you can’t pay your complete tax liability, or doing so develops a financial hardship.
A common myth 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 certainly acquire a lower settlement of your tax debt, these ads offer an incorrect understanding that most deals are appropriate and that a lot of deals will be accepted (even inappropriate offers).
The IRS considers your unique set of facts and circumstances. So it is important that you have representation from an experienced tax professional, such as The Tax Attorney Network, so that your interests are protected which an appropriate offer is made based on your:
Ability to pay;
The OIC application needs you to explain your monetary situation in detail, so before you continue you must want to make a complete and total disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Brookhaven Georgia
Before the IRS will consider your offer, you must: (1) submit all income tax return you are lawfully required to submit, (2) make all required estimated tax payments for the existing year, and (3) make all required federal tax deposits for the current quarter if you are a business owner with employees. In addition, you are not qualified if you are in an open insolvency proceeding.
The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a lump sum or through an installation contract and have exhausted their look for other payment arrangements. To receive the OIC program, taxpayers should have the ability to demonstrate and prove that their tax amount can not be settled under either a lump sum or installment agreement for starters.
All other payment alternatives must be thought about prior to submitting an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS may lawfully jeopardize a tax liability for among the following reasons:
Doubt As To Liability: There is doubt regarding whether the assessed tax is proper.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the overall amount you owe should be higher than the amount of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is right and no doubt that the quantity owed could be collected, however you have an economic difficulty 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 installments within 5 or fewer months from notice of acceptance.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.
Usually, 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 essential to note that penalties and interest will continue to accumulate throughout the offer examination procedure.