What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Glendale CA is an agreement in between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, including any interest, penalties, or additional amounts emerging under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the total you owe. It supplies qualified taxpayers with a course toward paying off 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, usually you should make a proper deal based upon what the IRS considers your true ability to pay. It may be a genuine choice if you can’t pay your complete tax liability, or doing so creates a financial difficulty.
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 offer an inaccurate perception that most deals are appropriate which many deals will be accepted (even unsuitable offers).
The IRS considers your distinct set of facts and scenarios. So it is necessary that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are protected and that a suitable deal is made based on your:
Ability to pay;
The OIC application needs you to describe your monetary scenario in information, so prior to you continue you need to be willing to make a full and total disclosure in the above locations.
Eligibility For An Offer In Compromise in Glendale California
Prior to the IRS will consider your offer, you need to: (1) submit all income tax return you are legally needed to file, (2) make all required approximated tax payments for the existing year, and (3) make all required federal tax deposits for the existing quarter if you are a company owner with workers. In addition, you are not qualified if you are in an open bankruptcy case.
The OIC program is an option for taxpayers who are not able to pay their tax quantities in a lump sum or through an installation arrangement and have exhausted their search for other payment plans. To qualify for the OIC program, taxpayers should have the ability to demonstrate and prove that their tax amount can not be settled under either a lump amount or installment contract for starters.
All other payment choices need to be thought about prior to sending an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS may lawfully jeopardize a tax liability for among the following factors:
Doubt As To Liability: There is doubt regarding 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 amount you owe need to be higher than the amount of your assets and future earnings.
Promote Effective Tax Administration: There is no doubt that the examined tax is correct and no doubt that the quantity owed could be gathered, but you have a financial 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 less 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.
Normally, the IRS will not accept a deal if you can pay your tax debt in full through an installment agreement or a swelling amount.
It is important to note that penalties and interest will continue to accrue during the deal evaluation process.
Contact the Tax Attorney Network in Glendale CA Today at (855) 980-7563
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