What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Dublin CA is an arrangement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, consisting of any interest, penalties, or extra quantities 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 offers qualified taxpayers with a path towards paying off their tax debt and getting a “fresh start.” The ultimate goal is a compromise that suits the very best interest of both the taxpayer and the IRS. To be considered, usually you should make an appropriate deal based on what the IRS considers your true capability to pay. It may be a genuine option if you can’t pay your full tax liability, or doing so produces a monetary hardship.
A typical 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 definitely acquire a lower settlement of your tax debt, these ads offer an incorrect perception that many deals are suitable and that the majority of deals will be accepted (even unsuitable deals).
The IRS considers your unique set of facts and circumstances. So it is necessary that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are secured and that a suitable offer is made based upon your:
Ability to pay;
The OIC application needs you to describe your financial situation in information, so prior to you proceed you must want to make a complete and complete disclosure in the above locations.
Eligibility For An Offer In Compromise in Dublin California
Before the IRS will consider your offer, you need to: (1) submit all income tax return you are legally required to file, (2) make all required 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 qualified if you remain in an open bankruptcy proceeding.
The OIC program is a choice for taxpayers who are unable to pay their tax amounts in a swelling amount or through an installment arrangement and have actually exhausted their search for other payment plans. To receive the OIC program, taxpayers should be able to demonstrate and show that their tax quantity can not be settled under either a swelling amount or installation arrangement for beginners.
All other payment choices must be thought about before sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may lawfully jeopardize a tax liability for among the following reasons:
Doubt As To Liability: There is doubt as to whether the assessed tax is right.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the overall quantity you owe should be higher than the amount of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is proper and no doubt that the quantity owed might be collected, however you have an economic challenge or other special circumstances 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 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 installation arrangement or a lump sum.
It is important to note that penalties and interest will continue to accumulate during the offer assessment procedure.
Contact the Tax Attorney Network in Dublin CA Today at (855) 980-7563
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