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Offer in Compromise – San Clemente CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (offer) in San Clemente CA is an agreement between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This uses to all taxes, including any interest, penalties, or extra quantities arising under the Internal Revenue Code.

An offer in compromise permits you to settle your tax debt for less than the total you owe. It supplies qualified 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, typically you should make a proper deal based on what the IRS considers your real ability to pay. It may be a legitimate option if you can’t pay your full tax liability, or doing so produces a monetary difficulty.

A common misconception 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 definitely obtain a lower settlement of your tax debt, these ads provide an inaccurate perception that the majority of offers are suitable which the majority of deals will be accepted (even inappropriate offers).

The IRS considers your unique set of truths and scenarios. So it is necessary that you have representation from an experienced tax expert, such as The Tax Attorney Network, so that your interests are safeguarded and that an appropriate offer is made based upon your:

Ability to pay;
Income;
Expenditures; and
Property equity.

The OIC application needs you to describe your financial circumstance in detail, so prior to you proceed you need to be willing to make a full and complete disclosure in the above locations.

Eligibility For An Offer In Compromise in San Clemente California

Prior to the IRS will consider your offer, you must: (1) file all tax returns you are legally needed to submit, (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 staff members. In addition, you are not qualified if you are in an open bankruptcy case.

The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a lump sum or through an installment arrangement and have actually tired their look for other payment plans. To receive the OIC program, taxpayers should have the ability to demonstrate and show that their tax quantity can not be settled under either a lump sum or installation agreement for starters.

All other payment choices should be considered before sending an offer in compromise. The Offer in Compromise program is not for everyone.

The IRS may legally compromise a tax liability for among the following reasons:

Doubt As To Liability: There is doubt regarding whether or not the evaluated tax is appropriate.
Doubt As To Collectability: There is doubt that you could 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 assets and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is proper and no doubt that the quantity owed could be collected, but you have a financial difficulty or other unique circumstances which may allow 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 notification of acceptance.
Short-term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.

Typically, the IRS will decline an offer if you can pay your tax debt completely through an installation arrangement or a swelling amount.

It is very important to keep in mind that penalties and interest will continue to accrue during the deal evaluation procedure.

Contact the Tax Attorney Network in San Clemente CA Today at (855) 980-7563

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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters, and electronic mail. Contacting us does not create an attorney-client relationship.

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