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Offer in Compromise – Crystal Lake IL

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in Crystal Lake IL is an agreement 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 emerging under the Internal Revenue Code.

An offer in compromise permits you to settle your tax debt for less than the full amount you owe. It supplies eligible taxpayers with a course towards settling their tax debt and getting a “fresh start.” The supreme goal is a compromise that suits the very best interest of both the taxpayer and the IRS. To be considered, typically you must make an appropriate offer based on what the IRS considers your real capability to pay. It may be a legitimate choice if you can’t pay your full tax liability, or doing so produces a monetary difficulty.

A typical myth 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 supply an incorrect perception that a lot of deals are suitable which most deals will be accepted (even unsuitable offers).

The IRS considers your distinct set of facts and scenarios. So it is essential that you have representation from an experienced tax professional, such as The Tax Attorney Network, so that your interests are secured and that an appropriate deal is made based upon your:

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

The OIC application requires you to explain your financial circumstance in detail, so before you proceed you must be willing to make a full and complete disclosure in the above locations.

Are You Eligible For An Offer In Compromise in Crystal Lake Illinois

Prior to the IRS will consider your deal, you should: (1) submit all income tax return you are lawfully required to submit, (2) make all needed estimated tax payments for the current year, and (3) make all needed federal tax deposits for the existing quarter if you are a business owner with workers. In addition, you are not eligible if you remain in an open personal bankruptcy proceeding.

The OIC program is an option for taxpayers who are unable to pay their tax quantities in a lump amount or through an installment arrangement and have exhausted their search for other payment plans. To receive the OIC program, taxpayers need to be able to demonstrate and show that their tax quantity can not be settled under either a swelling amount or installment arrangement for beginners.

All other payment choices need to be considered before sending an offer in compromise. The Offer in Compromise program is not for everybody.

The IRS may legally compromise a tax liability for one of the following factors:

Doubt As To Liability: There is doubt as to whether or not the evaluated tax is right.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the overall amount you owe must be greater than the amount of your possessions and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is right and no doubt that the amount owed could be collected, however you have a financial hardship or other unique scenarios which may 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 notification of acceptance.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.

Typically, the IRS will not accept an offer if you can pay your tax debt completely through an installment arrangement or a swelling amount.

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

Contact the Tax Attorney Network in Crystal Lake IL Today at (855) 980-7563

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