What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Mountain View CA is an agreement between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This uses to all taxes, including any interest, penalties, or extra quantities developing 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 eligible taxpayers with a course toward settling their tax debt and getting a “fresh start.” The supreme goal is a compromise that suits the very best interest of both the taxpayer and the IRS. To be considered, usually you should make a proper deal based upon what the IRS considers your real capability to pay. It might be a legitimate option if you can’t pay your complete tax liability, or doing so produces a financial challenge.
A common myth or perception thanks to ads 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 acquire a lower settlement of your tax debt, these ads supply an inaccurate understanding that many deals are appropriate which most deals will be accepted (even improper deals).
The IRS considers your distinct set of truths and scenarios. So it is necessary that you have representation from a knowledgeable tax expert, such as The Tax Attorney Network, so that your interests are protected which a proper offer is made based on your:
Capability to pay;
The OIC application needs you to describe your monetary scenario in detail, so prior to you proceed you should want to make a complete and complete disclosure in the above areas.
Eligibility For An Offer In Compromise in Mountain View California
Before the IRS will consider your offer, you must: (1) submit all income tax return you are lawfully required to file, (2) make all needed estimated tax payments for the present year, and (3) make all required federal tax deposits for the present 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 a choice for taxpayers who are not able to pay their tax quantities in a swelling amount or through an installment contract and have tired their look for other payment plans. To receive the OIC program, taxpayers must have the ability to show and prove that their tax quantity can not be settled under either a lump amount or installation contract for beginners.
All other payment choices should be thought about prior to sending an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS may lawfully compromise a tax liability for one of the following factors:
Doubt As To Liability: There is doubt as to whether the examined tax is proper.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the overall quantity you owe must be higher than the sum of your possessions and future earnings.
Promote Effective Tax Administration: There is no doubt that the examined tax is appropriate and no doubt that the quantity owed could be gathered, but you have a financial difficulty or other unique situations which might 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 acceptance.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS gets the OIC.
Usually, the IRS will decline a deal if you can pay your tax debt in full through an installment arrangement or a lump sum.
It is necessary to note that penalties and interest will continue to accumulate throughout the deal assessment procedure.
Contact the Tax Attorney Network in Mountain View CA Today at (855) 980-7563
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