What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Georgetown TX 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 additional quantities occurring under the Internal Revenue Code.
An offer in compromise allows you to settle your tax debt for less than the total you owe. It offers eligible taxpayers with a course towards settling their tax debt and getting a “fresh start.” The ultimate objective is a compromise that fits the very best interest of both the taxpayer and the IRS. To be thought about, generally you should make an appropriate offer based on what the IRS considers your true ability to pay. It may be a genuine option if you can’t pay your full tax liability, or doing so creates a financial difficulty.
A typical 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 acquire a lower settlement of your tax debt, these advertisements supply an inaccurate perception that most deals are suitable which most offers will be accepted (even inappropriate deals).
The IRS considers your distinct set of truths and situations. So it is very important that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are safeguarded and that an appropriate deal is made based upon your:
Capability to pay;
The OIC application requires you to describe your monetary situation in detail, so before you continue you should want to make a complete and complete disclosure in the above locations.
Eligibility For An Offer In Compromise in Georgetown Texas
Before the IRS will consider your deal, you should: (1) file all tax returns you are legally required to submit, (2) make all required approximated tax payments for the existing year, and (3) make all needed federal tax deposits for the present quarter if you are a company owner with staff members. In addition, you are not qualified if you remain in an open insolvency proceeding.
The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a swelling amount or through an installation arrangement and have tired their search for other payment plans. To qualify for 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 prior to submitting an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS may lawfully jeopardize a tax liability for one of the following factors:
Doubt As To Liability: There is doubt as to whether the examined tax is appropriate.
Doubt As To Collectability: There is doubt that you could ever pay the full amount of the tax owed. In these cases, the total quantity you owe must be greater than the amount of your properties and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is appropriate and no doubt that the amount owed could be gathered, but you have a financial hardship or other unique circumstances which may 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 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 not accept a deal if you can pay your tax debt completely through an installation arrangement or a swelling sum.
It is essential to keep in mind that penalties and interest will continue to accumulate throughout the offer assessment process.
Contact the Tax Attorney Network in Georgetown TX Today at (855) 980-7563
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