What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Fullerton CA is an arrangement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This uses to all taxes, including any interest, penalties, or additional quantities arising 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 path toward settling their tax debt and getting a “fresh start.” The ultimate goal is a compromise that fits the very best interest of both the taxpayer and the IRS. To be considered, normally you should make an appropriate deal based upon what the IRS considers your real ability to pay. It may be a legitimate choice if you can’t pay your full tax liability, or doing so develops a monetary challenge.
A common myth or perception 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 definitely get a lower settlement of your tax debt, these advertisements supply an incorrect perception that the majority of deals are suitable which many offers will be accepted (even improper deals).
The IRS considers your distinct set of realities and situations. So it is very important that you have representation from a knowledgeable tax professional, such as The Tax Attorney Network, so that your interests are secured and that a suitable deal is made based on your:
Ability to pay;
The OIC application needs you to explain your financial circumstance in information, so prior to you proceed you need to be willing to make a complete and complete disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Fullerton California
Before the IRS will consider your deal, you must: (1) submit all tax returns you are legally required to submit, (2) make all needed estimated tax payments for the existing year, and (3) make all required federal tax deposits for the existing quarter if you are an entrepreneur with employees. In addition, you are not eligible if you remain in an open personal bankruptcy proceeding.
The OIC program is an option for taxpayers who are unable to pay their tax quantities in a lump sum or through an installation contract and have actually tired their look for other payment arrangements. To get approved for the OIC program, taxpayers must be able to show and show that their tax quantity can not be settled under either a swelling sum or installation arrangement for beginners.
All other payment choices should be thought about before sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may legally compromise a tax liability for among the following factors:
Doubt As To Liability: There is doubt regarding whether the assessed tax is proper.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the total quantity 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 examined tax is proper and no doubt that the quantity owed could be collected, but you have an economic hardship or other special circumstances 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 fewer months from notice of approval.
Short-term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.
Generally, the IRS will not accept an offer if you can pay your tax debt completely through an installment contract or a lump amount.
It is very important to keep in mind that penalties and interest will continue to accrue throughout the offer examination process.
Contact the Tax Attorney Network in Fullerton CA Today at (855) 980-7563
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