What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in San Jacinto 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 extra quantities developing under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the full amount you owe. It offers qualified taxpayers with a path toward settling their tax debt and getting a “fresh start.” The ultimate objective is a compromise that fits the best interest of both the taxpayer and the IRS. To be thought about, normally you must make an appropriate deal based on what the IRS considers your real capability to pay. It might be a legitimate alternative if you can’t pay your full tax liability, or doing so develops a monetary hardship.
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 certainly acquire a lower settlement of your tax debt, these advertisements supply an inaccurate perception that many deals are proper and that the majority of offers 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 an experienced 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 situation in detail, so before you continue you need to be willing to make a full and total disclosure in the above locations.
Eligibility For An Offer In Compromise in San Jacinto California
Before the IRS will consider your offer, you need to: (1) file all income tax return you are lawfully required to file, (2) make all needed approximated tax payments for the existing year, and (3) make all required federal tax deposits for the current quarter if you are an entrepreneur with staff members. In addition, you are not qualified if you are in an open bankruptcy proceeding.
The OIC program is an alternative for taxpayers who are not able to pay their tax quantities in a lump sum or through an installment contract and have actually tired their look for other payment plans. To qualify for the OIC program, taxpayers must be able to show and prove that their tax quantity can not be settled under either a swelling sum or installation contract for starters.
All other payment alternatives must be thought about before sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may lawfully jeopardize a tax liability for among the following reasons:
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 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 properties and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is proper and no doubt that the amount owed might be collected, however you have an economic difficulty or other special scenarios which may permit the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less 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 gets the OIC.
Normally, the IRS will not accept a deal if you can pay your tax debt in full through an installment agreement or a lump amount.
It is very important to keep in mind that penalties and interest will continue to accumulate throughout the deal evaluation process.
Contact the Tax Attorney Network in San Jacinto CA Today at (855) 980-7563
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