What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Macon GA is an agreement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, consisting of any interest, penalties, or extra quantities arising 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 supplies eligible taxpayers with a path towards settling their tax debt and getting a “fresh start.” The supreme objective is a compromise that suits the best interest of both the taxpayer and the IRS. To be considered, usually you must make a suitable offer based on what the IRS considers your true ability 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 advertisements is the impression that taxpayers can quickly 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 advertisements offer an inaccurate understanding that a lot of offers are suitable which the majority of deals will be accepted (even inappropriate offers).
The IRS considers your special set of realities and situations. So it is necessary that you have representation from a skilled tax expert, such as The Tax Attorney Network, so that your interests are safeguarded and that a suitable offer is made based upon your:
Ability to pay;
The OIC application needs you to describe your monetary scenario in detail, so prior to you proceed you must be willing to make a complete and total disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Macon Georgia
Prior to the IRS will consider your offer, you need to: (1) file all tax returns you are legally needed to submit, (2) make all needed estimated tax payments for the current year, and (3) make all required federal tax deposits for the present quarter if you are a company owner with employees. In addition, you are not qualified if you remain in an open personal bankruptcy proceeding.
The OIC program is an alternative for taxpayers who are not able to pay their tax quantities in a swelling amount or through an installation agreement and have tired their search for other payment plans. To qualify for the OIC program, taxpayers must have the ability to show and prove that their tax amount can not be settled under either a lump sum or installation arrangement for beginners.
All other payment alternatives need to be considered before submitting an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS may legally compromise a tax liability for one of the following factors:
Doubt As To Liability: There is doubt as to whether or not the assessed tax is proper.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the total amount you owe should be greater than the sum of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is correct and no doubt that the amount owed could be collected, however you have an economic difficulty or other special situations which may allow the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer 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 decline a deal if you can pay your tax debt completely through an installment agreement or a lump amount.
It is important to keep in mind that penalties and interest will continue to accrue during the deal assessment procedure.