What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Oak Park IL is a contract 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 additional amounts developing under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the full amount you owe. It provides qualified taxpayers with a path toward paying off their tax debt and getting a “fresh start.” The ultimate objective is a compromise that suits the best interest of both the taxpayer and the IRS. To be thought about, generally you need to make an appropriate deal based on what the IRS considers your true ability to pay. It may be a genuine option if you can’t pay your complete tax liability, or doing so creates a financial difficulty.
A typical 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 obtain a lower settlement of your tax debt, these ads supply an incorrect understanding that the majority of offers are appropriate and that many offers will be accepted (even unsuitable offers).
The IRS considers your special set of realities and situations. So it is very important that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are safeguarded and that a proper deal is made based on your:
Capability to pay;
The OIC application requires you to describe your monetary circumstance in information, so prior to you proceed you must want to make a full and total disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Oak Park Illinois
Before the IRS will consider your deal, you should: (1) file all tax returns you are legally required to submit, (2) make all needed approximated tax payments for the present year, and (3) make all required federal tax deposits for the existing quarter if you are an entrepreneur with staff members. In addition, you are not eligible if you remain in an open bankruptcy case.
The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a lump sum or through an installment agreement and have exhausted their look for other payment plans. To receive the OIC program, taxpayers need to have the ability to show and show that their tax quantity can not be settled under either a lump amount or installment arrangement for starters.
All other payment alternatives must be thought about before submitting an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS might legally compromise a tax liability for among the following factors:
Doubt As To Liability: There is doubt regarding whether the evaluated 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 overall quantity you owe must be greater than the sum of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is right and no doubt that the quantity owed might be collected, but you have an economic hardship or other unique circumstances which may permit the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer installations within 5 or less months from notification of approval.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS gets the OIC.
Typically, the IRS will not accept an offer if you can pay your tax debt completely through an installation agreement or a lump amount.
It is necessary to keep in mind that penalties and interest will continue to accumulate during the deal assessment process.
Contact the Tax Attorney Network in Oak Park IL Today at (855) 980-7563
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