What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Rohnert Park CA is a contract in 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 amounts developing under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the total you owe. It offers qualified taxpayers with a course towards settling 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, normally you must make an appropriate deal based on what the IRS considers your true ability to pay. It might be a legitimate alternative if you can’t pay your complete tax liability, or doing so creates a financial difficulty.
A common myth 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 definitely acquire a lower settlement of your tax debt, these advertisements provide an incorrect perception that most deals are proper and that most deals will be accepted (even inappropriate offers).
The IRS considers your distinct set of truths and circumstances. 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 and that a suitable offer is made based on your:
Ability to pay;
The OIC application requires you to describe your monetary circumstance in information, so before you continue you must want to make a full and total disclosure in the above locations.
Eligibility For An Offer In Compromise in Rohnert Park California
Prior to the IRS will consider your deal, you should: (1) submit all tax returns you are lawfully required to file, (2) make all required estimated tax payments for the current year, and (3) make all needed federal tax deposits for the existing quarter if you are an entrepreneur with employees. In addition, you are not qualified if you are in an open insolvency proceeding.
The OIC program is an option for taxpayers who are unable to pay their tax quantities in a swelling sum or through an installation arrangement and have exhausted their look for other payment arrangements. To get approved for the OIC program, taxpayers should be able to show and show that their tax amount can not be settled under either a swelling sum or installation contract for starters.
All other payment alternatives must be considered before sending 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 reasons:
Doubt As To Liability: There is doubt as to whether the assessed tax is right.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the overall amount you owe need to be higher than the amount of your assets and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is proper and no doubt that the quantity owed could be collected, however you have a financial difficulty or other special scenarios which may 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 notification of approval.
Short Term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.
Normally, the IRS will not accept an offer if you can pay your tax debt completely through an installment arrangement or a swelling amount.
It is very important to keep in mind that penalties and interest will continue to accrue throughout the offer examination process.
Contact the Tax Attorney Network in Rohnert Park CA Today at (855) 980-7563
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