What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Bryan TX is a contract in between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This applies to all taxes, including any interest, penalties, or additional quantities developing under the Internal Revenue Code.
An offer in compromise allows you to settle your tax debt for less than the total you owe. It supplies eligible taxpayers with a path towards settling their tax debt and getting a “fresh start.” The ultimate goal is a compromise that matches the best interest of both the taxpayer and the IRS. To be thought about, normally you need to make a proper deal based on what the IRS considers your real ability to pay. It might be a genuine alternative if you can’t pay your complete tax liability, or doing so produces a financial hardship.
A common misconception or perception thanks to advertisements is the impression that taxpayers can easily 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 incorrect understanding that the majority of offers are suitable which a lot of offers will be accepted (even inappropriate offers).
The IRS considers your unique set of realities and circumstances. So it is very important that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are protected which a suitable deal is made based on your:
Capability to pay;
The OIC application requires you to describe your monetary situation in information, so prior to you continue you must be willing to make a complete and total disclosure in the above areas.
Are You Eligible For An Offer In Compromise in Bryan Texas
Before the IRS will consider your offer, you need to: (1) file all income tax return you are legally required to submit, (2) make all required approximated tax payments for the current year, and (3) make all needed federal tax deposits for the current quarter if you are a business owner with employees. In addition, you are not eligible if you are in an open bankruptcy case.
The OIC program is an option for taxpayers who are unable to pay their tax amounts in a swelling amount or through an installation agreement and have tired their look for other payment plans. To get approved for the OIC program, taxpayers must be able to demonstrate and show that their tax amount can not be settled under either a swelling amount or installation arrangement for beginners.
All other payment choices should be considered prior to submitting an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS might legally jeopardize a tax liability for one of the following reasons:
Doubt As To Liability: There is doubt as to whether the evaluated tax is correct.
Doubt As To Collectability: There is doubt that you could ever pay the full amount of the tax owed. In these cases, the total quantity you owe should be greater than the amount of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is right and no doubt that the amount owed could be gathered, but you have a financial challenge or other special scenarios which may enable 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 gets the OIC.
Normally, the IRS will decline a deal if you can pay your tax debt completely through an installation agreement or a swelling sum.
It is important to note that penalties and interest will continue to accumulate throughout the offer assessment process.