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

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – Milpitas CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Milpitas CA is an agreement in between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This applies to all taxes, including any interest, penalties, or extra amounts occurring under the Internal Revenue Code.

An offer in compromise enables you to settle your tax debt for less than the total you owe. It offers eligible taxpayers with a course toward 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 considered, normally you should make an appropriate deal based on what the IRS considers your true capability to pay. It may be a genuine choice if you can’t pay your complete tax liability, or doing so creates a monetary challenge.

A common misconception 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 certainly obtain a lower settlement of your tax debt, these ads offer an inaccurate perception that many deals are suitable and that many offers will be accepted (even unsuitable deals).

The IRS considers your unique set of realities and circumstances. So it is necessary that you have representation from an experienced tax professional, such as The Tax Attorney Network, so that your interests are safeguarded and that an appropriate offer is made based on your:

Capability to pay;
Earnings;
Expenditures; and
Property equity.

The OIC application needs you to describe your financial circumstance in information, so prior to you proceed you must be willing to make a complete and complete disclosure in the above areas.

Eligibility For An Offer In Compromise in Milpitas California

Prior to the IRS will consider your offer, you must: (1) submit all tax returns you are lawfully needed to submit, (2) make all required approximated tax payments for the current year, and (3) make all required federal tax deposits for the current quarter if you are an entrepreneur with employees. In addition, you are not eligible if you are in an open bankruptcy proceeding.

The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a swelling sum or through an installment contract and have actually tired their look for other payment arrangements. To receive the OIC program, taxpayers must be able to show and show that their tax amount can not be settled under either a lump amount or installation agreement for starters.

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

The IRS might lawfully jeopardize a tax liability for one of the following reasons:

Doubt As To Liability: There is doubt as to whether or not the assessed tax is right.
Doubt As To Collectability: There is doubt that you could ever pay the full amount of the tax owed. In these cases, the total amount 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 correct and no doubt that the quantity owed could be gathered, but you have a financial challenge or other unique scenarios which may permit the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installments within 5 or less 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 a deal if you can pay your tax debt completely through an installation contract or a lump sum.

It is important to keep in mind that penalties and interest will continue to accumulate during the deal examination process.

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

tax debt help

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