What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in San Bernardino CA 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 arising 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 eligible taxpayers with a course toward paying off their tax debt and getting a “fresh start.” The ultimate objective is a compromise that matches the best interest of both the taxpayer and the IRS. To be considered, generally you need to make an appropriate deal based on what the IRS considers your true 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 understanding thanks to advertisements 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 certainly obtain a lower settlement of your tax debt, these ads provide an incorrect understanding that the majority of offers are proper which many deals will be accepted (even improper deals).
The IRS considers your distinct set of facts and scenarios. So it is necessary that you have representation from a skilled tax expert, such as The Tax Attorney Network, so that your interests are protected and that a suitable offer is made based on your:
Ability to pay;
The OIC application requires you to explain your monetary situation in information, so prior to you continue you must be willing to make a complete and complete disclosure in the above locations.
Are You Eligible For An Offer In Compromise in San Bernardino California
Before the IRS will consider your deal, you should: (1) submit all income tax return you are legally needed to submit, (2) make all needed approximated tax payments for the current year, and (3) make all required federal tax deposits for the existing quarter if you are an entrepreneur with employees. In addition, you are not eligible if you remain in an open insolvency case.
The OIC program is a choice for taxpayers who are not able to pay their tax quantities in a lump sum or through an installation contract and have actually tired their search for other payment plans. To qualify for the OIC program, taxpayers should be able to demonstrate and show that their tax amount can not be settled under either a swelling amount or installation agreement for beginners.
All other payment options should be considered before submitting an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS may legally jeopardize a tax liability for among the following factors:
Doubt As To Liability: There is doubt regarding whether or not the assessed tax is appropriate.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the overall quantity you owe need to be greater than the sum of your possessions and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is right and no doubt that the quantity owed could be gathered, however you have an economic difficulty or other special circumstances which might permit the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer installments 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.
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 very important to note that penalties and interest will continue to accrue throughout the deal examination procedure.
Contact the Tax Attorney Network in San Bernardino CA Today at (855) 980-7563
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