What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Fairbanks AK is an agreement 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 extra quantities 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 matches the best interest of both the taxpayer and the IRS. To be considered, typically you must make a proper deal based upon what the IRS considers your real ability to pay. It might be a legitimate alternative if you can’t pay your complete tax liability, or doing so creates a monetary challenge.
A common misconception or understanding thanks to ads 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 certainly get a lower settlement of your tax debt, these advertisements offer an inaccurate perception that most offers are appropriate which the majority of deals will be accepted (even improper deals).
The IRS considers your unique set of realities and scenarios. So it is necessary that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are safeguarded and that an appropriate deal is made based upon your:
Ability to pay;
The OIC application requires you to describe your monetary situation in detail, so prior to you proceed you should be willing to make a complete and complete disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Fairbanks Alaska
Prior to the IRS will consider your offer, you need to: (1) submit all income tax return you are legally needed to file, (2) make all needed approximated tax payments for the current year, and (3) make all required federal tax deposits for the current quarter if you are a business owner with staff members. In addition, you are not eligible if you remain in an open 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 installation agreement and have actually exhausted their search for other payment plans. To receive the OIC program, taxpayers must be able to show and show that their tax amount can not be settled under either a swelling sum or installment agreement for starters.
All other payment options must be thought about prior to sending 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 regarding whether or not the examined 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 need to be greater than the amount of your possessions and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is correct and no doubt that the quantity owed might be gathered, but you have an economic challenge or other special situations which might enable 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.
Generally, the IRS will decline a deal if you can pay your tax debt completely through an installation arrangement or a swelling amount.
It is important to keep in mind that penalties and interest will continue to accumulate throughout the deal evaluation process.
Contact the Tax Attorney Network in Fairbanks AK Today at (855) 980-7563
Map of Fairbanks AK
Some Other Cities in Alaska That You Might Be Interested In: