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Offer in Compromise – Madera CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Madera CA 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 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 offers qualified taxpayers with a path towards settling their tax debt and getting a “fresh start.” The ultimate goal is a compromise that matches the very best interest of both the taxpayer and the IRS. To be considered, usually you should make a suitable offer based upon what the IRS considers your true ability to pay. It may be a legitimate alternative if you can’t pay your complete tax liability, or doing so produces a monetary hardship.

A typical myth or perception 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 definitely obtain a lower settlement of your tax debt, these advertisements provide an inaccurate perception that most offers are appropriate and that a lot of offers will be accepted (even inappropriate deals).

The IRS considers your distinct set of facts and scenarios. 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 an appropriate deal is made based upon your:

Ability to pay;
Income;
Costs; and
Possession equity.

The OIC application requires you to describe your financial scenario in detail, so before you proceed you need to be willing to make a full and total disclosure in the above areas.

Are You Eligible For An Offer In Compromise in Madera California

Prior to the IRS will consider your deal, you must: (1) submit all income tax return you are legally needed to submit, (2) make all required approximated tax payments for the present year, and (3) make all needed 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 personal bankruptcy case.

The OIC program is an option for taxpayers who are unable to pay their tax quantities in a lump sum or through an installation contract and have exhausted their look for other payment arrangements. To qualify for the OIC program, taxpayers should be able to demonstrate and show that their tax amount can not be settled under either a lump sum or installation agreement for beginners.

All other payment alternatives need to be considered prior to sending 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 regarding whether or not the examined tax is proper.
Doubt As To Collectability: There is doubt that you could ever pay the total of the tax owed. In these cases, the overall quantity you owe must be greater than the sum of your possessions and future earnings.
Promote Effective Tax Administration: There is no doubt that the examined tax is proper and no doubt that the quantity owed might be collected, however you have an economic challenge or other unique 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 less months from notice of acceptance.
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 an offer if you can pay your tax debt completely through an installment agreement or a lump amount.

It is important to note that penalties and interest will continue to accumulate during the deal evaluation procedure.

Contact the Tax Attorney Network in Madera 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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