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

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – Odessa TX

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in Odessa TX is a contract in between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, including any interest, penalties, or additional amounts arising 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 eligible taxpayers with a path toward settling their tax debt and getting a “fresh start.” The ultimate goal is a compromise that suits the best interest of both the taxpayer and the IRS. To be thought about, normally you should make a suitable deal based on what the IRS considers your true capability to pay. It may be a genuine option if you can’t pay your complete tax liability, or doing so creates a monetary hardship.

A typical myth or understanding thanks to advertisements is the impression that taxpayers can easily settle their tax liability “for cents on the dollar” through the offer in compromise program. While you can certainly obtain a lower settlement of your tax debt, these advertisements supply an incorrect perception that many deals are proper and that a lot of deals will be accepted (even inappropriate deals).

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

Capability to pay;
Earnings;
Expenses; and
Asset equity.

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

Eligibility For An Offer In Compromise in Odessa Texas

Prior to the IRS will consider your deal, you need to: (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 needed federal tax deposits for the current quarter if you are a company owner with workers. In addition, you are not eligible if you are in an open insolvency case.

The OIC program is a choice for taxpayers who are unable to pay their tax quantities in a lump amount or through an installment contract and have actually exhausted their look for other payment plans. To qualify for the OIC program, taxpayers should be able to show and prove that their tax amount can not be settled under either a swelling amount or installment arrangement for beginners.

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 might lawfully jeopardize a tax liability for one of the following factors:

Doubt As To Liability: There is doubt regarding whether or not the evaluated tax is appropriate.
Doubt As To Collectability: There is doubt that you could ever pay the total of the tax owed. In these cases, the overall amount you owe must be greater than the amount of your assets 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, but you have a financial difficulty or other unique scenarios which might allow the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer installations within 5 or fewer months from notice of approval.
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 a deal if you can pay your tax debt in full through an installation arrangement or a swelling amount.

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

Contact the Tax Attorney Network in Odessa TX Today at (855) 980-7563

tax 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 - All Rights Reserved