What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Largo FL is an arrangement between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This uses to all taxes, including any interest, penalties, or additional quantities occurring under the Internal Revenue Code.
An offer in compromise permits you to settle your tax debt for less than the full amount you owe. It provides qualified taxpayers with a course towards paying off their tax debt and getting a “fresh start.” The ultimate 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 deal based on what the IRS considers your real ability to pay. It might be a genuine option if you can’t pay your complete tax liability, or doing so creates a monetary difficulty.
A common myth or perception thanks to advertisements 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 obtain a lower settlement of your tax debt, these advertisements provide an incorrect understanding that most deals are suitable and that a lot of deals will be accepted (even inappropriate offers).
The IRS considers your unique set of truths and situations. So it is essential that you have representation from a knowledgeable tax professional, such as The Tax Attorney Network, so that your interests are safeguarded and that a suitable offer is made based upon your:
Capability to pay;
The OIC application requires you to explain your financial circumstance in detail, so before you proceed you need to want to make a full and complete disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Largo Florida
Prior to the IRS will consider your offer, you should: (1) file all tax returns you are lawfully required to submit, (2) make all needed approximated tax payments for the existing year, and (3) make all required federal tax deposits for the existing quarter if you are an entrepreneur with staff members. In addition, you are not qualified if you are in an open personal bankruptcy proceeding.
The OIC program is an option for taxpayers who are not able to pay their tax quantities in a lump amount or through an installation arrangement and have exhausted their look for other payment plans. To get approved for the OIC program, taxpayers should be able to demonstrate and show that their tax quantity can not be settled under either a lump amount or installment arrangement for beginners.
All other payment choices should be considered before sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may lawfully jeopardize a tax liability for one of the following factors:
Doubt As To Liability: There is doubt regarding whether or not the assessed tax is proper.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the total quantity you owe should be greater than the sum of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is right and no doubt that the amount owed could be gathered, but you have an economic difficulty or other unique situations 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 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 not accept a deal if you can pay your tax debt completely through an installment agreement or a swelling sum.
It is very important to keep in mind that penalties and interest will continue to accumulate throughout the deal examination process.
Contact the Tax Attorney Network in Largo FL Today at (855) 980-7563
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