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

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – Livermore CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Livermore CA is an arrangement in between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This applies to all taxes, consisting of any interest, penalties, or extra quantities emerging 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 supplies qualified taxpayers with a course towards 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 thought about, normally you need to make a proper deal based on what the IRS considers your real capability to pay. It may be a genuine choice if you can’t pay your full tax liability, or doing so produces a financial difficulty.

A typical misconception or perception thanks to ads 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 certainly get a lower settlement of your tax debt, these ads offer an inaccurate understanding that the majority of offers are appropriate and that a lot of offers will be accepted (even inappropriate deals).

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

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

The OIC application needs you to describe your monetary situation in detail, so before 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 Livermore California

Prior to the IRS will consider your deal, you need to: (1) file all income tax return you are lawfully needed to submit, (2) make all required approximated tax payments for the existing year, and (3) make all required federal tax deposits for the current quarter if you are a business owner with employees. In addition, you are not qualified if you are in an open insolvency case.

The OIC program is an alternative for taxpayers who are not able to pay their tax amounts in a swelling sum or through an installation arrangement and have actually tired their search for other payment arrangements. To receive the OIC program, taxpayers need to have the ability to demonstrate and prove that their tax quantity can not be settled under either a swelling amount or installation agreement for starters.

All other payment choices must be considered prior to submitting an offer in compromise. The Offer in Compromise program is not for everybody.

The IRS may legally compromise a tax liability for one of the following reasons:

Doubt As To Liability: There is doubt regarding whether the assessed tax is proper.
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 higher than the sum of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is correct and no doubt that the quantity owed could be gathered, however you have a financial challenge or other special scenarios which may allow the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installations within 5 or less 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.

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

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

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

irs tax attorney

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