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Offer in Compromise – Frederick MD

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in Frederick MD is an arrangement in 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 occurring 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 eligible taxpayers with a course toward settling their tax debt and getting a “fresh start.” The ultimate goal is a compromise that matches the best interest of both the taxpayer and the IRS. To be thought about, typically you must make a proper deal based upon what the IRS considers your real capability to pay. It might be a genuine choice if you can’t pay your full tax liability, or doing so produces a monetary challenge.

A common misconception or understanding 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 obtain a lower settlement of your tax debt, these advertisements provide an inaccurate understanding that the majority of deals are suitable and that the majority of deals will be accepted (even improper offers).

The IRS considers your special set of realities and scenarios. So it is very important that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are protected which a proper offer is made based upon your:

Ability to pay;
Earnings;
Costs; and
Possession equity.

The OIC application needs you to explain your financial scenario in detail, so prior to you continue you must be willing to make a complete and total disclosure in the above locations.

Eligibility For An Offer In Compromise in Frederick Maryland

Before the IRS will consider your deal, you must: (1) file all income tax return you are lawfully needed to file, (2) make all needed estimated tax payments for the present year, and (3) make all required federal tax deposits for the present quarter if you are a business owner with employees. In addition, you are not qualified if you are in an open personal bankruptcy proceeding.

The OIC program is an alternative for taxpayers who are unable to pay their tax quantities in a swelling sum or through an installation arrangement and have tired their search for other payment plans. To get approved for the OIC program, taxpayers need to have the ability to show and show that their tax amount can not be settled under either a lump amount or installation agreement for beginners.

All other payment options must be thought about before submitting an offer in compromise. The Offer in Compromise program is not for everybody.

The IRS may lawfully compromise a tax liability for one of the following reasons:

Doubt As To Liability: There is doubt regarding whether or not the assessed tax is correct.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the total 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 examined tax is appropriate and no doubt that the amount owed could be collected, but you have a financial hardship or other special situations which may allow the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installments within 5 or fewer 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.

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

It is very important to note that penalties and interest will continue to accrue during the offer evaluation process.

Contact the Tax Attorney Network in Frederick MD Today at (855) 980-7563

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