What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Fontana CA is a contract 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 additional amounts developing under the Internal Revenue Code.
An offer in compromise permits you to settle your tax debt for less than the total you owe. It offers qualified taxpayers with a course toward paying off their tax debt and getting a “fresh start.” The ultimate goal is a compromise that fits the best interest of both the taxpayer and the IRS. To be considered, usually you must make an appropriate deal based upon what the IRS considers your real ability to pay. It might be a legitimate option if you can’t pay your complete tax liability, or doing so produces a financial challenge.
A typical myth or perception thanks to ads 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 advertisements supply an incorrect perception that most offers are proper and that many offers will be accepted (even improper deals).
The IRS considers your special set of facts and scenarios. So it is very important that you have representation from a knowledgeable tax expert, such as The Tax Attorney Network, so that your interests are protected which an appropriate deal is made based upon your:
Ability to pay;
The OIC application needs you to describe your monetary situation in detail, so before you continue you need to be willing to make a complete and complete disclosure in the above areas.
Are You Eligible For An Offer In Compromise in Fontana California
Before the IRS will consider your deal, you should: (1) submit all income tax return you are lawfully required to submit, (2) make all needed estimated tax payments for the current year, and (3) make all needed federal tax deposits for the present quarter if you are an entrepreneur with staff members. In addition, you are not qualified if you are in an open bankruptcy proceeding.
The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a lump amount or through an installation agreement and have tired their search for other payment plans. To qualify for the OIC program, taxpayers should be able to demonstrate and prove that their tax quantity can not be settled under either a lump sum or installation agreement for starters.
All other payment choices must be considered before submitting an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS might 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 could ever pay the full amount of the tax owed. In these cases, the overall quantity you owe must be higher than the sum of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is correct and no doubt that the quantity owed could be collected, however you have an economic challenge or other special scenarios which may permit 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 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 essential to note that penalties and interest will continue to accrue throughout the offer assessment procedure.
Contact the Tax Attorney Network in Fontana CA Today at (855) 980-7563
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