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Offer in Compromise – Edina MN

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in Edina MN is a contract 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 amounts occurring under the Internal Revenue Code.

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It offers eligible taxpayers with a course toward settling 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, typically you should make a suitable offer based upon what the IRS considers your real ability to pay. It may be a legitimate alternative if you can’t pay your full tax liability, or doing so creates a financial difficulty.

A common misconception or understanding thanks to ads is the impression that taxpayers can quickly settle their tax liability “for pennies on the dollar” through the offer in compromise program. While you can certainly obtain a lower settlement of your tax debt, these ads provide an inaccurate understanding that most offers are proper and that the majority of offers will be accepted (even improper offers).

The IRS considers your distinct set of facts and circumstances. So it is necessary that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are secured which a suitable deal is made based on your:

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

The OIC application requires you to describe your financial circumstance in detail, so prior to you proceed you should want to make a full and total disclosure in the above locations.

Eligibility For An Offer In Compromise in Edina Minnesota

Before the IRS will consider your offer, you must: (1) submit all tax returns you are legally needed to file, (2) make all required approximated tax payments for the present year, and (3) make all required federal tax deposits for the current quarter if you are a company owner with staff members. In addition, you are not eligible if you remain in an open insolvency case.

The OIC program is an alternative for taxpayers who are not able to pay their tax quantities in a lump sum or through an installation contract and have actually tired their search for other payment plans. To receive the OIC program, taxpayers must have the ability to show and prove that their tax amount can not be settled under either a swelling amount or installment agreement for beginners.

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

The IRS might legally compromise a tax liability for one of the following reasons:

Doubt As To Liability: There is doubt as to whether or not the assessed tax is proper.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the overall amount you owe need to be higher than the amount of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is correct and no doubt that the quantity owed could be collected, but you have a financial challenge 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 fewer installments within 5 or less months from notice of approval.
Short-term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS gets the OIC.

Usually, the IRS will not accept a deal if you can pay your tax debt completely through an installment agreement or a lump sum.

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

Contact the Tax Attorney Network in Edina MN Today at (855) 980-7563

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