What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Hayward CA is an arrangement in 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 supplies qualified taxpayers with a path toward settling their tax debt and getting a “fresh start.” The ultimate objective is a compromise that suits the very best interest of both the taxpayer and the IRS. To be considered, generally you need to make a suitable deal based upon what the IRS considers your real capability to pay. It might be a genuine option if you can’t pay your full tax liability, or doing so develops a monetary difficulty.
A typical misconception or understanding thanks to advertisements 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 ads provide an incorrect perception that a lot of offers are appropriate and that the majority of offers will be accepted (even inappropriate offers).
The IRS considers your distinct set of truths and scenarios. So it is essential that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are secured which a suitable deal is made based on your:
Ability to pay;
The OIC application needs you to explain your monetary circumstance in information, so before you continue you must want to make a complete and total disclosure in the above areas.
Are You Eligible For An Offer In Compromise in Hayward California
Before the IRS will consider your offer, you should: (1) file all income tax return you are lawfully needed to submit, (2) make all needed estimated tax payments for the current year, and (3) make all required federal tax deposits for the current quarter if you are a business owner with employees. In addition, you are not qualified if you remain in an open bankruptcy proceeding.
The OIC program is a choice for taxpayers who are not able to pay their tax quantities in a swelling amount or through an installment contract and have actually tired their search for other payment plans. To qualify for the OIC program, taxpayers must be able to show and show that their tax amount can not be settled under either a lump sum or installment agreement for starters.
All other payment options need to be considered prior to submitting an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS might lawfully compromise a tax liability for one of the following factors:
Doubt As To Liability: There is doubt as to whether the evaluated tax is correct.
Doubt As To Collectability: There is doubt that you could ever pay the total of the tax owed. In these cases, the total quantity you owe must be greater than the sum of your possessions 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 collected, but you have an economic challenge or other special situations 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 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 decline a deal if you can pay your tax debt completely through an installation contract or a swelling amount.
It is very important to keep in mind that penalties and interest will continue to accumulate throughout the offer assessment procedure.
Contact the Tax Attorney Network in Hayward CA Today at (855) 980-7563
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