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Offer in Compromise – Lancaster CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in Lancaster CA is an agreement in between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This applies to all taxes, including any interest, penalties, or additional amounts 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 provides qualified taxpayers with a path towards paying off their tax debt and getting a “fresh start.” The ultimate objective is a compromise that fits the best interest of both the taxpayer and the IRS. To be thought about, typically you must make a proper deal based upon what the IRS considers your true capability to pay. It may be a genuine option if you can’t pay your complete tax liability, or doing so creates a financial challenge.

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 ads provide an inaccurate perception that most deals are proper and that many offers will be accepted (even unsuitable deals).

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

Capability to pay;
Income;
Expenses; and
Property equity.

The OIC application needs you to explain your monetary situation in information, so prior to you continue you must want to make a full and complete disclosure in the above locations.

Are You Eligible For An Offer In Compromise in Lancaster California

Before the IRS will consider your deal, you need to: (1) file all tax returns you are lawfully needed to submit, (2) make all needed estimated tax payments for the present year, and (3) make all required federal tax deposits for the existing quarter if you are an entrepreneur with employees. In addition, you are not qualified if you remain in an open bankruptcy case.

The OIC program is an option for taxpayers who are unable to pay their tax amounts in a lump sum or through an installment contract and have exhausted their look for other payment arrangements. To receive the OIC program, taxpayers should have the ability to demonstrate and prove that their tax amount can not be settled under either a swelling sum or installment arrangement for starters.

All other payment choices need to 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 right.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the overall quantity you owe must be higher than the amount of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is proper and no doubt that the amount owed might be gathered, however you have an economic difficulty or other special scenarios which may enable the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer installments within 5 or fewer months from notification of acceptance.
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 a deal if you can pay your tax debt completely through an installation agreement or a swelling amount.

It is essential to keep in mind that penalties and interest will continue to accumulate throughout the deal evaluation procedure.

Contact the Tax Attorney Network in Lancaster 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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