What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Round Rock TX is an agreement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, consisting of any interest, penalties, or extra quantities developing 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 objective is a compromise that suits the best interest of both the taxpayer and the IRS. To be considered, generally you should make an appropriate offer based upon what the IRS considers your real ability to pay. It may be a legitimate choice if you can’t pay your complete tax liability, or doing so produces a financial challenge.
A typical 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 obtain a lower settlement of your tax debt, these advertisements provide an incorrect understanding that a lot of offers are suitable which a lot of offers will be accepted (even improper deals).
The IRS considers your distinct set of truths and circumstances. So it is important that you have representation from a knowledgeable tax professional, such as The Tax Attorney Network, so that your interests are safeguarded which a suitable offer is made based on your:
Ability to pay;
The OIC application needs you to describe your monetary situation in information, so before you proceed you should be willing to make a full and total disclosure in the above locations.
Eligibility For An Offer In Compromise in Round Rock Texas
Prior to the IRS will consider your deal, you need to: (1) submit all tax returns you are lawfully required to submit, (2) make all needed approximated tax payments for the present 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 eligible if you remain in an open insolvency case.
The OIC program is a choice for taxpayers who are unable to pay their tax amounts in a lump sum or through an installment contract and have tired their look for other payment plans. To qualify for the OIC program, taxpayers should have the ability to show and prove that their tax amount can not be settled under either a lump amount or installment agreement for starters.
All other payment options need to be thought about prior to sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may lawfully jeopardize a tax liability for one of 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 might ever pay the total of the tax owed. In these cases, the total quantity you owe must be higher than the sum of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is proper and no doubt that the quantity owed might be gathered, but you have a financial challenge or other unique circumstances which might permit the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installations 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 receives the OIC.
Normally, the IRS will not accept an offer if you can pay your tax debt in full through an installation contract or a lump sum.
It is important to note that penalties and interest will continue to accumulate throughout the offer evaluation procedure.
Contact the Tax Attorney Network in Round Rock TX Today at (855) 980-7563
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