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Offer in Compromise – Moorhead MN

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Moorhead MN is an agreement 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 additional amounts arising under the Internal Revenue Code.

An offer in compromise allows you to settle your tax debt for less than the total you owe. It offers qualified taxpayers with a path towards settling their tax debt and getting a “fresh start.” The supreme goal is a compromise that fits the best interest of both the taxpayer and the IRS. To be thought about, normally you must make an appropriate offer based on what the IRS considers your real ability to pay. It may be a genuine choice if you can’t pay your full tax liability, or doing so produces a financial hardship.

A typical 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 definitely get a lower settlement of your tax debt, these advertisements supply an incorrect understanding that most deals are proper which most deals will be accepted (even unsuitable deals).

The IRS considers your distinct set of facts and scenarios. So it is important that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are protected and that an appropriate deal is made based upon your:

Ability to pay;
Earnings;
Expenses; and
Property equity.

The OIC application requires you to explain your monetary scenario in detail, so before you proceed you need to want to make a full and complete disclosure in the above areas.

Are You Eligible For An Offer In Compromise in Moorhead Minnesota

Prior to the IRS will consider your deal, you should: (1) submit all tax returns you are legally required to submit, (2) make all required approximated tax payments for the present year, and (3) make all needed federal tax deposits for the existing quarter if you are a company owner with staff members. In addition, you are not eligible if you remain in an open bankruptcy proceeding.

The OIC program is an alternative for taxpayers who are unable to pay their tax quantities in a swelling amount or through an installation contract and have exhausted their search for other payment arrangements. To get approved for the OIC program, taxpayers should have the ability to show and show that their tax quantity can not be settled under either a swelling sum or installment agreement for starters.

All other payment choices should be thought about before 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 as to whether or not the assessed tax is correct.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the total quantity you owe should be greater than the sum of your possessions and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is correct and no doubt that the amount owed could be collected, however you have a financial difficulty or other special scenarios 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 notification of acceptance.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS gets the OIC.

Generally, the IRS will decline an offer if you can pay your tax debt completely through an installation arrangement or a lump sum.

It is very important to note that penalties and interest will continue to accumulate throughout the offer examination process.

Contact the Tax Attorney Network in Moorhead MN Today at (855) 980-7563

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