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Offer in Compromise – Danville CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in Danville CA is an arrangement 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 extra amounts arising 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 fits the best interest of both the taxpayer and the IRS. To be thought about, usually you must make a suitable offer based on what the IRS considers your true capability to pay. It may be a legitimate option if you can’t pay your complete tax liability, or doing so creates a monetary challenge.

A typical myth or perception thanks to ads 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 definitely get a lower settlement of your tax debt, these advertisements offer an incorrect perception that a lot of deals are proper which most offers will be accepted (even improper offers).

The IRS considers your distinct set of facts and circumstances. So it is important that you have representation from a skilled tax expert, such as The Tax Attorney Network, so that your interests are safeguarded and that a proper deal is made based upon your:

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

The OIC application requires you to explain your financial scenario in detail, so prior to you proceed you should be willing to make a full and total disclosure in the above areas.

Are You Eligible For An Offer In Compromise in Danville California

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

The OIC program is an option for taxpayers who are unable to pay their tax quantities in a lump sum or through an installation arrangement and have tired their search for other payment plans. To qualify for the OIC program, taxpayers must have the ability to demonstrate and show that their tax amount can not be settled under either a lump sum or installation arrangement for starters.

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

The IRS may lawfully jeopardize a tax liability for one of the following factors:

Doubt As To Liability: There is doubt regarding whether or not the evaluated tax is appropriate.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the total amount you owe need to be higher than the sum of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is appropriate and no doubt that the amount owed could be gathered, but you have a financial hardship or other unique circumstances which may enable the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installments within 5 or less 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.

Usually, the IRS will decline a deal if you can pay your tax debt completely through an installment contract or a lump sum.

It is important to note that penalties and interest will continue to accrue throughout the offer evaluation procedure.

Contact the Tax Attorney Network in Danville CA 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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