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Offer in Compromise – Parker CO

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Parker CO is an agreement 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 quantities occurring under the Internal Revenue Code.

An offer in compromise permits you to settle your tax debt for less than the total you owe. It provides qualified taxpayers with a course towards paying off 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 thought about, usually you must make a proper offer based on what the IRS considers your real capability to pay. It may be a legitimate alternative if you can’t pay your complete tax liability, or doing so creates a monetary difficulty.

A typical myth or perception 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 definitely acquire a lower settlement of your tax debt, these ads provide an incorrect perception that many offers are proper and that most deals will be accepted (even improper deals).

The IRS considers your special set of realities and circumstances. So it is necessary that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are safeguarded and that an appropriate offer is made based upon your:

Ability to pay;
Earnings;
Costs; and
Asset equity.

The OIC application requires you to explain your financial scenario in detail, so before you proceed you must want to make a complete and complete disclosure in the above locations.

Are You Eligible For An Offer In Compromise in Parker Colorado

Before the IRS will consider your deal, you need to: (1) file all tax returns you are lawfully needed to file, (2) make all needed approximated 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 staff members. In addition, you are not qualified if you are in an open personal bankruptcy proceeding.

The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a lump amount or through an installation agreement and have tired their search for other payment plans. To get approved for the OIC program, taxpayers should have the ability to show and show that their tax quantity can not be settled under either a lump amount or installment contract for starters.

All other payment alternatives need to be thought about prior to sending an offer in compromise. The Offer in Compromise program is not for everybody.

The IRS might lawfully jeopardize a tax liability for one of the following reasons:

Doubt As To Liability: There is doubt as to whether the examined 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 total quantity you owe must be higher than the sum of your properties and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is correct and no doubt that the quantity owed might be collected, but you have a financial difficulty or other special scenarios which might enable the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer installments within 5 or less months from notice of approval.
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 an offer if you can pay your tax debt in full through an installment agreement or a swelling sum.

It is necessary to note that penalties and interest will continue to accumulate during the deal assessment procedure.

Contact the Tax Attorney Network in Parker CO 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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