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Offer in Compromise – Burleson TX

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Burleson TX is an arrangement 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 occurring 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 course toward settling their tax debt and getting a “fresh start.” The ultimate goal is a compromise that fits the best interest of both the taxpayer and the IRS. To be thought about, generally you must make a proper deal based on what the IRS considers your true capability to pay. It might be a legitimate option if you can’t pay your full tax liability, or doing so creates a monetary 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 certainly acquire a lower settlement of your tax debt, these advertisements provide an inaccurate perception that a lot of deals are suitable which many offers will be accepted (even unsuitable offers).

The IRS considers your unique set of truths 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 and that a suitable offer is made based upon your:

Capability to pay;
Income;
Expenses; and
Asset equity.

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

Eligibility For An Offer In Compromise in Burleson Texas

Prior to the IRS will consider your offer, you should: (1) submit all tax returns you are legally needed to file, (2) make all needed estimated tax payments for the present year, and (3) make all needed federal tax deposits for the present quarter if you are an entrepreneur with employees. In addition, you are not eligible if you remain in an open insolvency case.

The OIC program is an alternative for taxpayers who are unable to pay their tax quantities in a swelling sum or through an installation contract and have exhausted their look for other payment arrangements. To qualify for the OIC program, taxpayers should be able to demonstrate and prove that their tax quantity can not be settled under either a lump sum or installation arrangement for beginners.

All other payment options must be considered prior to sending an offer in compromise. The Offer in Compromise program is not for everyone.

The IRS may lawfully jeopardize a tax liability for one of 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 could ever pay the total of the tax owed. In these cases, the total quantity you owe should be greater than the sum of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is right and no doubt that the quantity owed might be gathered, however you have a financial difficulty or other unique circumstances which might 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 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 an offer if you can pay your tax debt in full through an installation contract or a swelling sum.

It is important to note that penalties and interest will continue to accrue during the offer examination process.

Contact the Tax Attorney Network in Burleson TX Today at (855) 980-7563

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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.

     

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