What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Fort Myers FL is an agreement 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 extra amounts developing 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 supplies qualified taxpayers with a path toward settling their tax debt and getting a “fresh start.” The ultimate goal is a compromise that suits the best interest of both the taxpayer and the IRS. To be considered, normally you should make a suitable offer based on what the IRS considers your true capability to pay. It may be a genuine choice if you can’t pay your full tax liability, or doing so creates a financial hardship.
A common misconception or perception thanks to ads is the impression that taxpayers can easily 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 incorrect understanding that many offers are appropriate and that a lot of offers will be accepted (even improper deals).
The IRS considers your unique set of facts and circumstances. So it is important that you have representation from a knowledgeable tax expert, such as The Tax Attorney Network, so that your interests are secured which a proper offer is made based upon your:
Capability to pay;
The OIC application requires you to describe your financial situation in information, so prior to you continue you should want to make a complete and complete disclosure in the above locations.
Eligibility For An Offer In Compromise in Fort Myers Florida
Prior to the IRS will consider your deal, you must: (1) submit all income tax return you are lawfully required to submit, (2) make all needed approximated tax payments for the present year, and (3) make all required federal tax deposits for the current quarter if you are an entrepreneur with employees. In addition, you are not qualified if you remain in an open personal bankruptcy proceeding.
The OIC program is a choice for taxpayers who are not able to pay their tax quantities in a swelling sum or through an installment contract and have actually tired their search for other payment plans. To receive the OIC program, taxpayers need to have the ability to demonstrate and show that their tax amount can not be settled under either a swelling sum or installment agreement for beginners.
All other payment alternatives need to be thought about before submitting an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS might legally jeopardize a tax liability for among the following reasons:
Doubt As To Liability: There is doubt as to whether or not the examined tax is correct.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the total quantity you owe need to be greater than the amount of your assets and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is correct and no doubt that the quantity owed could be collected, but you have a financial difficulty or other special situations which may permit the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installations within 5 or fewer 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 contract or a swelling amount.
It is very important to note that penalties and interest will continue to accumulate throughout the offer assessment process.
Contact the Tax Attorney Network in Fort Myers FL Today at (855) 980-7563
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