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Offer in Compromise – Provo UT

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in Provo UT is a contract 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 additional amounts arising under the Internal Revenue Code.

An offer in compromise allows you to settle your tax debt for less than the total you owe. It offers eligible taxpayers with a path toward paying off their tax debt and getting a “fresh start.” The supreme goal is a compromise that suits the best interest of both the taxpayer and the IRS. To be considered, usually you need to make a proper offer based on what the IRS considers your real ability to pay. It may be a legitimate option if you can’t pay your complete tax liability, or doing so creates a financial difficulty.

A common misconception or perception thanks to advertisements 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 acquire a lower settlement of your tax debt, these advertisements supply an inaccurate perception that a lot of deals are proper and that a lot of offers will be accepted (even inappropriate offers).

The IRS considers your distinct set of truths and situations. So it is very important that you have representation from a knowledgeable tax professional, such as The Tax Attorney Network, so that your interests are safeguarded which a proper offer is made based upon your:

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

The OIC application needs you to explain your financial situation in information, so prior to you proceed you must want to make a complete and total disclosure in the above areas.

Are You Eligible For An Offer In Compromise in Provo Utah

Prior to the IRS will consider your deal, you should: (1) submit all income tax return you are lawfully required to submit, (2) make all needed estimated tax payments for the existing year, and (3) make all required federal tax deposits for the present quarter if you are a company owner with staff members. In addition, you are not eligible if you remain in an open bankruptcy case.

The OIC program is an option for taxpayers who are unable to pay their tax quantities in a lump amount or through an installment arrangement and have tired their look for other payment arrangements. To get approved for the OIC program, taxpayers should have the ability to show and prove that their tax quantity can not be settled under either a swelling sum or installation arrangement for starters.

All other payment options must be considered prior to submitting an offer in compromise. The Offer in Compromise program is not for everybody.

The IRS may legally 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 proper.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the overall amount you owe need to 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 could be gathered, but you have an economic challenge or other special scenarios which may permit 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 notification of approval.
Short-term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.

Usually, the IRS will not accept a deal if you can pay your tax debt completely through an installment arrangement or a swelling amount.

It is essential to keep in mind that penalties and interest will continue to accumulate during the deal assessment process.

Contact the Tax Attorney Network in Provo UT Today at (855) 980-7563

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Map of Provo UT

Some Other Cities in Utah That You Might Be Interested In:

  • Tax Lawyer Salt Lake City UT
  • Tax Lawyer Ogden UT
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