What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in La Mirada CA is a contract 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 developing under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the total you owe. It provides qualified taxpayers with a course 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 considered, usually you should make a proper deal based upon what the IRS considers your true ability to pay. It may be a genuine alternative if you can’t pay your full tax liability, or doing so creates a monetary hardship.
A common myth or perception thanks to advertisements is the impression that taxpayers can quickly 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 ads provide an incorrect understanding that a lot of deals are suitable and that a lot of deals will be accepted (even improper offers).
The IRS considers your unique set of realities and situations. So it is important that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are protected and that an appropriate offer is made based on your:
Capability to pay;
The OIC application requires you to describe your monetary scenario in information, so before you continue you should want to make a full and total disclosure in the above locations.
Are You Eligible For An Offer In Compromise in La Mirada California
Prior to the IRS will consider your offer, you need to: (1) file all income tax return you are lawfully needed to file, (2) make all required approximated tax payments for the present year, and (3) make all needed 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 bankruptcy case.
The OIC program is an option for taxpayers who are unable to pay their tax quantities in a lump sum or through an installation agreement and have actually tired their search for other payment plans. To receive the OIC program, taxpayers should be able to demonstrate and prove that their tax amount can not be settled under either a swelling sum or installment agreement for beginners.
All other payment alternatives must be considered prior to submitting an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS may lawfully compromise a tax liability for one of 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 full amount of the tax owed. In these cases, the overall amount you owe need to be greater than the amount of your properties and future earnings.
Promote Effective Tax Administration: There is no doubt that the examined tax is correct and no doubt that the amount owed might be collected, but you have a financial difficulty or other unique situations which may enable 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 notification 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 in full through an installation agreement or a lump amount.
It is very important to note that penalties and interest will continue to accumulate during the offer assessment procedure.
Contact the Tax Attorney Network in La Mirada CA Today at (855) 980-7563
Map of La Mirada CA