What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in San Mateo CA is an agreement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This uses to all taxes, consisting of any interest, penalties, or extra 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 qualified taxpayers with a course toward settling their tax debt and getting a “fresh start.” The ultimate objective is a compromise that suits the very best interest of both the taxpayer and the IRS. To be considered, typically you must make a proper deal based on what the IRS considers your real ability to pay. It might be a genuine alternative if you can’t pay your full tax liability, or doing so develops a monetary challenge.
A typical misconception or understanding 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 definitely obtain a lower settlement of your tax debt, these advertisements supply an incorrect understanding that the majority of deals are suitable which many deals will be accepted (even inappropriate offers).
The IRS considers your unique 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 secured which an appropriate offer is made based upon your:
Capability to pay;
The OIC application requires you to explain your financial circumstance in information, so before you continue you must want to make a full and complete disclosure in the above areas.
Eligibility For An Offer In Compromise in San Mateo California
Prior to the IRS will consider your deal, you should: (1) file all tax returns you are lawfully needed to submit, (2) make all needed estimated tax payments for the present year, and (3) make all required federal tax deposits for the present quarter if you are a company owner with employees. In addition, you are not eligible if you remain in an open bankruptcy case.
The OIC program is an option for taxpayers who are not able to pay their tax quantities in a swelling sum or through an installment agreement and have tired their look for other payment arrangements. To qualify for the OIC program, taxpayers must be able to demonstrate and prove that their tax amount can not be settled under either a lump sum or installation contract for starters.
All other payment alternatives should be thought about before submitting an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS might lawfully jeopardize a tax liability for among the following reasons:
Doubt As To Liability: There is doubt as to whether the assessed 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 amount you owe should be greater than the sum of your properties and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is proper and no doubt that the amount owed could be gathered, however you have a financial difficulty or other unique scenarios which might 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 notice 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 agreement or a swelling amount.
It is very important to keep in mind that penalties and interest will continue to accrue during the offer examination procedure.
Contact the Tax Attorney Network in San Mateo CA Today at (855) 980-7563
Map of San Mateo CA