What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Highland AL 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 extra amounts emerging 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 towards settling 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 an appropriate deal based upon what the IRS considers your real ability to pay. It may be a legitimate option if you can’t pay your full tax liability, or doing so develops a monetary difficulty.
A typical myth or understanding thanks to advertisements 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 certainly obtain a lower settlement of your tax debt, these advertisements provide an inaccurate understanding that many deals are appropriate and that the majority of offers will be accepted (even improper deals).
The IRS considers your unique set of realities and situations. So it is essential that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are protected and that a proper deal is made based upon your:
Ability to pay;
The OIC application needs you to describe your financial circumstance in information, so prior to you proceed you need to be willing to make a full and complete disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Highland California
Before the IRS will consider your deal, you should: (1) file all tax returns you are legally required to file, (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 a company owner with workers. In addition, you are not eligible if you remain in an open bankruptcy case.
The OIC program is a choice for taxpayers who are not able to pay their tax amounts in a swelling sum or through an installment agreement and have exhausted their search for other payment arrangements. To get approved for the OIC program, taxpayers must be able to demonstrate and show that their tax amount can not be settled under either a swelling amount or installation agreement for beginners.
All other payment alternatives should be thought about before sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may lawfully jeopardize a tax liability for among the following factors:
Doubt As To Liability: There is doubt regarding whether the assessed 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 amount you owe need to be greater than the amount of your assets and future earnings.
Promote Effective Tax Administration: There is no doubt that the assessed tax is appropriate and no doubt that the quantity owed might be collected, but you have a financial hardship 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 fewer installations 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 receives the OIC.
Usually, the IRS will not accept an offer if you can pay your tax debt in full through an installation arrangement or a swelling sum.
It is important to note that penalties and interest will continue to accrue throughout the offer examination procedure.
Contact the Tax Attorney Network in Highland AL Today at (855) 980-7563
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