Have a Question? Call Us: (855) 980-7563

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – Jurupa Valley CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Jurupa Valley 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 quantities developing 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 qualified taxpayers with a course toward settling their tax debt and getting a “fresh start.” The supreme goal is a compromise that suits the very best interest of both the taxpayer and the IRS. To be thought about, generally you must make a suitable offer based on what the IRS considers your real ability to pay. It might be a genuine option if you can’t pay your full tax liability, or doing so produces a monetary challenge.

A common misconception or understanding 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 get a lower settlement of your tax debt, these ads provide an incorrect understanding that many deals are appropriate and that the majority of offers will be accepted (even unsuitable deals).

The IRS considers your special set of facts and scenarios. So it is necessary that you have representation from a knowledgeable tax expert, such as The Tax Attorney Network, so that your interests are protected which a suitable offer is made based upon your:

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

The OIC application requires you to describe your monetary circumstance in detail, so prior to you continue you should want to make a complete and total disclosure in the above areas.

Are You Eligible For An Offer In Compromise in Jurupa Valley California

Prior to the IRS will consider your deal, you should: (1) file all tax returns 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 an entrepreneur with workers. In addition, you are not eligible if you remain in an open personal bankruptcy case.

The OIC program is a choice for taxpayers who are unable to pay their tax quantities in a lump sum or through an installment contract and have actually exhausted their search for other payment plans. To qualify for the OIC program, taxpayers must have the ability to show and prove that their tax quantity can not be settled under either a lump sum or installment agreement for beginners.

All other payment choices need to be thought about prior to submitting 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 as to whether or not the examined tax is appropriate.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the overall amount you owe must be greater than the sum of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is correct and no doubt that the amount owed could be collected, however 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 installments within 5 or fewer months from notification of approval.
Short-term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.

Usually, the IRS will decline a deal if you can pay your tax debt in full through an installment contract or a swelling amount.

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

Contact the Tax Attorney Network in Jurupa Valley CA Today at (855) 980-7563

irs tax lawyer

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.

     

© 2020 The Tax Attorney Network