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

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – Panama City FL

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Panama City FL 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, consisting of any interest, penalties, or extra quantities occurring 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 supplies 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 thought about, generally you need to make a proper deal based on what the IRS considers your true capability to pay. It might be a genuine choice if you can’t pay your complete tax liability, or doing so creates a financial hardship.

A common myth or understanding 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 certainly get a lower settlement of your tax debt, these advertisements provide an inaccurate understanding that many deals are appropriate which a lot of offers will be accepted (even unsuitable offers).

The IRS considers your special set of facts and circumstances. 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 secured and that a suitable deal is made based on your:

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

The OIC application requires you to describe your financial circumstance in information, so before you continue you should be willing to make a full and total disclosure in the above areas.

Are You Eligible For An Offer In Compromise in Panama City Florida

Prior to the IRS will consider your offer, you must: (1) file all income tax return you are legally needed to submit, (2) make all needed estimated tax payments for the existing year, and (3) make all required federal tax deposits for the existing quarter if you are a company owner with staff members. 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 amounts in a lump amount or through an installment agreement and have actually tired their look for other payment plans. To qualify for the OIC program, taxpayers need to be able to show and prove that their tax amount can not be settled under either a lump sum or installation contract for beginners.

All other payment alternatives need to 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 among the following factors:

Doubt As To Liability: There is doubt as to whether or not the assessed tax is proper.
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 should be higher than the amount of your assets and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is appropriate and no doubt that the amount owed might be gathered, but you have an economic hardship or other unique circumstances which may allow 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 receives the OIC.

Generally, the IRS will decline a deal if you can pay your tax debt completely through an installment agreement or a swelling sum.

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

Contact the Tax Attorney Network in Panama City FL Today at (855) 980-7563

irs tax attorney

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