What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in San Diego 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 uses to all taxes, including any interest, penalties, or additional quantities developing under the Internal Revenue Code.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It provides eligible taxpayers with a course towards paying off 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, generally you need to make an appropriate offer based upon what the IRS considers your real ability to pay. It may be a genuine alternative if you can’t pay your full tax liability, or doing so develops a monetary hardship.
A common myth or perception thanks to advertisements 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 acquire a lower settlement of your tax debt, these ads supply an incorrect perception that many offers are suitable which most deals will be accepted (even inappropriate offers).
The IRS considers your distinct set of facts and situations. So it is necessary that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are safeguarded which an appropriate offer is made based upon your:
Capability to pay;
The OIC application requires you to explain your monetary situation in information, so before you proceed you must want to make a complete and complete disclosure in the above areas.
Eligibility For An Offer In Compromise in San Diego California
Prior to the IRS will consider your offer, you should: (1) file all income tax return you are legally required to file, (2) make all needed estimated tax payments for the present year, and (3) make all needed federal tax deposits for the current quarter if you are a business owner with staff members. In addition, you are not eligible if you are in an open personal bankruptcy proceeding.
The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a lump amount or through an installation agreement and have exhausted their search for other payment arrangements. To qualify for the OIC program, taxpayers need to be able to show and show that their tax amount can not be settled under either a lump sum or installment agreement for beginners.
All other payment alternatives need to be thought about prior to sending 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 evaluated tax is right.
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 should be greater than the amount of your possessions and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is appropriate and no doubt that the quantity owed might be gathered, but you have a financial challenge or other unique situations which might allow the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installments within 5 or less 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.
Normally, the IRS will decline a deal if you can pay your tax debt completely through an installment contract or a lump sum.
It is very important to note that penalties and interest will continue to accrue throughout the offer examination procedure.
Contact the Tax Attorney Network in San Diego CA Today at (855) 980-7563
Map of San Diego CA