What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in San Bruno CA is an agreement 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 additional quantities occurring under the Internal Revenue Code.
An offer in compromise allows you to settle your tax debt for less than the total you owe. It provides eligible taxpayers with a path towards settling their tax debt and getting a “fresh start.” The supreme objective is a compromise that fits the very best interest of both the taxpayer and the IRS. To be considered, normally you should make a proper deal based upon what the IRS considers your true ability to pay. It may be a genuine alternative if you can’t pay your complete tax liability, or doing so produces a monetary challenge.
A common myth or understanding thanks to ads is the impression that taxpayers can easily settle their tax liability “for cents on the dollar” through the offer in compromise program. While you can definitely get a lower settlement of your tax debt, these ads offer an incorrect perception that a lot of offers are suitable and that the majority of offers will be accepted (even improper deals).
The IRS considers your distinct set of truths and circumstances. So it is essential that you have representation from a knowledgeable tax expert, such as The Tax Attorney Network, so that your interests are secured and that a suitable deal is made based on your:
Ability to pay;
The OIC application requires you to explain your financial scenario in information, so before you continue you should be willing to make a full and complete disclosure in the above areas.
Are You Eligible For An Offer In Compromise in San Bruno California
Before the IRS will consider your deal, you should: (1) submit all tax returns you are legally needed to submit, (2) make all needed estimated tax payments for the existing year, and (3) make all needed federal tax deposits for the current quarter if you are a business owner with workers. In addition, you are not qualified if you remain in an open bankruptcy proceeding.
The OIC program is a choice for taxpayers who are not able to pay their tax amounts in a swelling sum or through an installment arrangement and have tired their look for other payment plans. To receive the OIC program, taxpayers should have the ability to show and show that their tax quantity can not be settled under either a lump amount or installment contract for starters.
All other payment alternatives must be considered before submitting an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS might lawfully compromise a tax liability for among the following factors:
Doubt As To Liability: There is doubt regarding whether or not the examined tax is appropriate.
Doubt As To Collectability: There is doubt that you could ever pay the full amount of the tax owed. In these cases, the total quantity you owe need to be higher than the amount of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is correct and no doubt that the amount owed might be collected, however you have a financial challenge or other unique scenarios which may allow 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 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 decline an offer if you can pay your tax debt in full through an installment agreement or a lump sum.
It is very important to note that penalties and interest will continue to accrue throughout the deal evaluation process.
Contact the Tax Attorney Network in San Bruno CA Today at (855) 980-7563
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