What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Leesburg VA is an agreement 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 quantities occurring under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the full amount you owe. It supplies qualified taxpayers with a path toward settling their tax debt and getting a “fresh start.” The ultimate objective is a compromise that suits the best interest of both the taxpayer and the IRS. To be considered, generally you need to make a suitable deal based upon what the IRS considers your true ability to pay. It might be a legitimate choice if you can’t pay your full tax liability, or doing so develops a monetary challenge.
A common myth or perception 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 obtain a lower settlement of your tax debt, these advertisements offer an inaccurate understanding that most offers are appropriate which most deals will be accepted (even unsuitable deals).
The IRS considers your special set of truths and circumstances. So it is important that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are secured which an appropriate deal is made based upon your:
Ability to pay;
The OIC application requires you to describe your monetary scenario in detail, so before you continue you must want to make a complete and complete disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Leesburg Virginia
Before the IRS will consider your offer, you must: (1) file all tax returns you are legally needed to submit, (2) make all needed estimated tax payments for the existing year, and (3) make all required federal tax deposits for the current quarter if you are a company owner with workers. In addition, you are not qualified if you are in an open bankruptcy case.
The OIC program is a choice for taxpayers who are not able to pay their tax amounts in a lump amount or through an installation arrangement and have tired their search for other payment arrangements. To qualify for the OIC program, taxpayers must have the ability to demonstrate and show that their tax amount can not be settled under either a swelling sum or installation arrangement for starters.
All other payment alternatives must be thought about before submitting an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS might legally compromise a tax liability for among the following reasons:
Doubt As To Liability: There is doubt regarding whether or not the assessed tax is appropriate.
Doubt As To Collectability: There is doubt that you could 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 assets and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is correct and no doubt that the quantity owed might be gathered, but you have an economic hardship 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 fewer 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 completely through an installment arrangement or a swelling amount.
It is important to note that penalties and interest will continue to accumulate throughout the offer evaluation procedure.
Contact the Tax Attorney Network in Leesburg VA Today at (855) 980-7563
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