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Offer in Compromise – Grand Island NE

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Grand Island NE is a contract between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, consisting of any interest, penalties, or additional amounts emerging 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 offers eligible taxpayers with a course toward settling their tax debt and getting a “fresh start.” The supreme objective is a compromise that suits the best interest of both the taxpayer and the IRS. To be thought about, normally you should make a proper deal based on what the IRS considers your true ability to pay. It might be a legitimate alternative if you can’t pay your complete tax liability, or doing so produces a financial difficulty.

A common 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 obtain a lower settlement of your tax debt, these advertisements offer an incorrect understanding that the majority of offers are appropriate and that the majority of offers will be accepted (even inappropriate deals).

The IRS considers your unique set of realities and circumstances. So it is important that you have representation from a skilled tax expert, such as The Tax Attorney Network, so that your interests are secured and that an appropriate offer is made based on your:

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

The OIC application requires you to describe your financial scenario in detail, so before you continue you should want to make a full and complete disclosure in the above locations.

Eligibility For An Offer In Compromise in Grand Island Nebraska

Prior to the IRS will consider your offer, you must: (1) file all income tax return you are lawfully required to submit, (2) make all required estimated tax payments for the present year, and (3) make all needed federal tax deposits for the existing quarter if you are a company owner with employees. In addition, you are not qualified if you are in an open insolvency case.

The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a lump sum or through an installation contract and have exhausted their look for other payment plans. To receive the OIC program, taxpayers should be able to demonstrate and prove that their tax quantity can not be settled under either a lump sum or installment agreement for starters.

All other payment options need to be considered before sending an offer in compromise. The Offer in Compromise program is not for everybody.

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

Doubt As To Liability: There is doubt regarding whether or not the assessed tax is right.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the overall quantity you owe must be higher than the sum of your properties and future earnings.
Promote Effective Tax Administration: There is no doubt that the assessed tax is correct and no doubt that the amount owed could be gathered, however you have an economic difficulty 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 installments within 5 or less 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 completely through an installment arrangement or a lump sum.

It is essential to keep in mind that penalties and interest will continue to accumulate during the offer assessment procedure.

Contact the Tax Attorney Network in Grand Island NE Today at (855) 980-7563

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Map of Grand Island NE

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