What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Salinas CA is a contract in between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, including any interest, penalties, or extra amounts emerging under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the total you owe. It provides qualified taxpayers with a path toward settling their tax debt and getting a “fresh start.” The supreme goal is a compromise that fits the best interest of both the taxpayer and the IRS. To be considered, typically you should make an appropriate deal based on what the IRS considers your true ability to pay. It may be a genuine option if you can’t pay your complete tax liability, or doing so produces a monetary difficulty.
A common misconception or understanding thanks to advertisements is the impression that taxpayers can quickly settle their tax liability “for cents on the dollar” through the offer in compromise program. While you can certainly get a lower settlement of your tax debt, these advertisements offer an inaccurate understanding that many offers are suitable and that many offers will be accepted (even improper offers).
The IRS considers your unique set of realities and scenarios. So it is essential that you have representation from a skilled tax expert, such as The Tax Attorney Network, so that your interests are safeguarded and that a suitable offer is made based upon your:
Ability to pay;
The OIC application requires you to describe your financial circumstance in information, so prior to you proceed you must be willing to make a complete and complete disclosure in the above areas.
Are You Eligible For An Offer In Compromise in Salinas California
Before the IRS will consider your offer, you should: (1) file all income tax return you are lawfully required to file, (2) make all needed estimated tax payments for the existing year, and (3) make all needed 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 insolvency case.
The OIC program is an alternative for taxpayers who are not able to pay their tax amounts in a swelling amount or through an installment agreement and have actually exhausted their look for other payment plans. To get approved for the OIC program, taxpayers must have the ability to show and show that their tax quantity can not be settled under either a lump sum or installment agreement for beginners.
All other payment alternatives should be thought about prior to submitting 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 the evaluated tax is proper.
Doubt As To Collectability: There is doubt that you could ever pay the total of the tax owed. In these cases, the total quantity you owe need to be higher than the sum of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is correct and no doubt that the quantity owed could be collected, however you have an economic hardship or other special situations which might permit 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 notice of approval.
Short-term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS gets the OIC.
Typically, the IRS will decline 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 during the deal assessment procedure.
Contact the Tax Attorney Network in Salinas CA Today at (855) 980-7563
Map of Salinas CA