Have a Question? Call Us: (855) 980-7563

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – San Leandro CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in San Leandro CA is a contract 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 amounts 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 offers qualified taxpayers with a path toward paying off their tax debt and getting a “fresh start.” The ultimate objective is a compromise that suits the best interest of both the taxpayer and the IRS. To be thought about, typically you should make a proper offer based on what the IRS considers your real ability to pay. It may be a genuine option if you can’t pay your full tax liability, or doing so produces a monetary difficulty.

A common misconception or perception thanks to ads is the impression that taxpayers can quickly 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 offer an inaccurate understanding that many offers are appropriate which many deals will be accepted (even inappropriate deals).

The IRS considers your unique set of facts and circumstances. So it is very important that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are protected which a proper deal is made based on your:

Capability to pay;
Income;
Costs; and
Asset equity.

The OIC application needs you to describe your monetary circumstance in detail, so before you continue you should be willing to make a full and total disclosure in the above locations.

Are You Eligible For An Offer In Compromise in San Leandro California

Before the IRS will consider your offer, you must: (1) submit all income tax return you are lawfully needed to submit, (2) make all required estimated tax payments for the existing year, and (3) make all needed federal tax deposits for the current quarter if you are an entrepreneur with employees. In addition, you are not eligible if you remain in an open bankruptcy case.

The OIC program is a choice for taxpayers who are not able to pay their tax amounts in a lump sum or through an installation arrangement and have exhausted their look for other payment arrangements. To qualify for the OIC program, taxpayers should have the ability to demonstrate and prove that their tax quantity can not be settled under either a swelling sum or installation agreement for starters.

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

The IRS may lawfully compromise a tax liability for among the following factors:

Doubt As To Liability: There is doubt as to whether or not the assessed tax is correct.
Doubt As To Collectability: There is doubt that you might ever pay the full amount of the tax owed. In these cases, the overall amount you owe must be higher than the sum of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the assessed tax is right and no doubt that the amount owed might be gathered, however you have a financial hardship 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.

Usually, the IRS will decline a deal if you can pay your tax debt in full through an installation contract or a lump sum.

It is essential to keep in mind that penalties and interest will continue to accrue during the offer assessment procedure.

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

tax attorney

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.

     

© 2020 The Tax Attorney Network