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Offer in Compromise – Palo Alto CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Palo Alto CA is an arrangement in 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 emerging 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 course towards settling their tax debt and getting a “fresh start.” The supreme objective is a compromise that fits the best interest of both the taxpayer and the IRS. To be considered, generally you need to make a proper offer based upon what the IRS considers your true ability to pay. It might be a legitimate choice if you can’t pay your complete tax liability, or doing so creates a financial difficulty.

A typical myth or understanding thanks to ads 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 definitely get a lower settlement of your tax debt, these ads provide an inaccurate perception that many offers are suitable which many deals will be accepted (even unsuitable deals).

The IRS considers your special set of facts and circumstances. So it is important that you have representation from a skilled 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;
Earnings;
Expenditures; and
Asset equity.

The OIC application needs you to explain your monetary circumstance in detail, so prior to you proceed you must be willing to make a full and complete disclosure in the above locations.

Are You Eligible For An Offer In Compromise in Palo Alto California

Prior to the IRS will consider your deal, you need to: (1) file all income tax return you are lawfully required to submit, (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 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 unable to pay their tax amounts in a swelling amount or through an installment agreement and have exhausted their search for other payment arrangements. To get approved for the OIC program, taxpayers should be able to show and show that their tax quantity can not be settled under either a lump amount or installation agreement for starters.

All other payment choices need to be thought about before submitting an offer in compromise. The Offer in Compromise program is not for everybody.

The IRS may lawfully compromise a tax liability for one of the following factors:

Doubt As To Liability: There is doubt as to whether or not the evaluated tax is correct.
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 need to be higher than the sum of your assets and future earnings.
Promote Effective Tax Administration: There is no doubt that the assessed tax is right and no doubt that the amount owed could be collected, however you have a financial hardship or other special circumstances 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 fewer 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.

Typically, the IRS will decline a deal if you can pay your tax debt in full through an installation arrangement or a lump amount.

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 Palo Alto CA Today at (855) 980-7563

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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.

     

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