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Offer in Compromise – Huntington Park CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in Huntington Park CA is an arrangement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This uses to all taxes, consisting of any interest, penalties, or extra quantities arising under the Internal Revenue Code.

An offer in compromise allows you to settle your tax debt for less than the total you owe. It provides qualified taxpayers with a path towards paying off their tax debt and getting a “fresh start.” The ultimate goal is a compromise that matches the very best interest of both the taxpayer and the IRS. To be thought about, normally you must make a proper deal based on what the IRS considers your true ability to pay. It might be a genuine alternative if you can’t pay your full tax liability, or doing so creates a financial hardship.

A typical myth or understanding thanks to ads 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 definitely get a lower settlement of your tax debt, these advertisements offer an inaccurate perception that a lot of offers are appropriate which a lot of deals will be accepted (even improper deals).

The IRS considers your special set of facts and situations. So it is very important that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are protected and that a suitable offer is made based on your:

Ability to pay;
Earnings;
Costs; and
Property equity.

The OIC application needs you to explain your financial situation in detail, so before you proceed you must be willing to make a complete and complete disclosure in the above areas.

Eligibility For An Offer In Compromise in Huntington Park California

Before the IRS will consider your deal, you need to: (1) submit all tax returns you are lawfully required to submit, (2) make all needed 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 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 installment arrangement and have tired their search for other payment arrangements. To qualify for the OIC program, taxpayers should have the ability to demonstrate and show that their tax amount can not be settled under either a lump sum or installation arrangement for beginners.

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

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

Doubt As To Liability: There is doubt as to whether the evaluated 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 total amount you owe need to be greater than the amount of your possessions and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is proper and no doubt that the amount owed might be collected, but you have a financial challenge or other special scenarios which might allow the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installations 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.

Generally, the IRS will decline an offer if you can pay your tax debt in full through an installment arrangement or a swelling sum.

It is very important to keep in mind that penalties and interest will continue to accrue throughout the offer examination process.

Contact the Tax Attorney Network in Huntington Park CA Today at (855) 980-7563

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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters, and electronic mail. Contacting us does not create an attorney-client relationship.

     

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