Have a Question? Call Us: (855) 980-7563

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – Detroit MI

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in Detroit MI is an agreement in between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, including any interest, penalties, or additional amounts arising under the Internal Revenue Code.

An offer in compromise permits you to settle your tax debt for less than the total you owe. It supplies qualified taxpayers with a course toward paying off their tax debt and getting a “fresh start.” The supreme objective is a compromise that fits the best interest of both the taxpayer and the IRS. To be considered, normally you should make an appropriate deal based upon what the IRS considers your true ability to pay. It may be a legitimate choice if you can’t pay your complete tax liability, or doing so produces a monetary difficulty.

A typical misconception or perception 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 get a lower settlement of your tax debt, these ads provide an inaccurate understanding that the majority of deals are suitable which most deals will be accepted (even improper offers).

The IRS considers your unique set of realities and scenarios. So it is important that you have representation from a skilled tax expert, such as The Tax Attorney Network, so that your interests are protected which a suitable deal is made based on your:

Ability to pay;
Income;
Costs; and
Property equity.

The OIC application needs you to explain your financial situation in information, so before you proceed you should be willing to make a full and total disclosure in the above areas.

Eligibility For An Offer In Compromise in Detroit Michigan

Before the IRS will consider your deal, you need to: (1) file all tax returns you are legally required to submit, (2) make all needed estimated tax payments for the existing year, and (3) make all required federal tax deposits for the present quarter if you are an entrepreneur with workers. In addition, you are not eligible if you are in an open bankruptcy case.

The OIC program is a choice for taxpayers who are not able to pay their tax quantities in a lump sum or through an installation contract and have exhausted their search for other payment arrangements. To receive the OIC program, taxpayers should have the ability to show and show that their tax quantity can not be settled under either a swelling sum or installation arrangement for starters.

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

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

Doubt As To Liability: There is doubt regarding whether the examined tax is appropriate.
Doubt As To Collectability: There is doubt that you could ever pay the full amount of the tax owed. In these cases, the overall quantity you owe must be greater than the amount of your possessions and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is proper and no doubt that the quantity owed might be collected, however you have an economic hardship or other special scenarios which might allow the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer installations within 5 or less months from notice of acceptance.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS gets the OIC.

Generally, the IRS will decline a deal if you can pay your tax debt completely through an installment arrangement or a lump amount.

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

Contact the Tax Attorney Network in Detroit MI Today at (855) 980-7563

tax lawyer

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.

© 2020 The Tax Attorney Network - All Rights Reserved