What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Sandy Springs GA is an arrangement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. This applies to all taxes, consisting of any interest, penalties, or extra quantities developing 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 eligible taxpayers with a course toward paying off their tax debt and getting a “fresh start.” The ultimate objective is a compromise that matches the best interest of both the taxpayer and the IRS. To be considered, generally you must make an appropriate offer based on what the IRS considers your true capability to pay. It may be a legitimate choice if you can’t pay your complete tax liability, or doing so develops a monetary challenge.
A typical misconception or understanding thanks to advertisements is the impression that taxpayers can quickly settle their tax liability “for cents on the dollar” through the offer in compromise program. While you can definitely obtain a lower settlement of your tax debt, these ads supply an incorrect perception that most deals are proper and that the majority of offers will be accepted (even improper deals).
The IRS considers your special set of facts and circumstances. So it is necessary that you have representation from a knowledgeable tax professional, such as The Tax Attorney Network, so that your interests are safeguarded which a proper deal is made based upon your:
Ability to pay;
The OIC application requires you to describe your monetary situation in detail, so prior to you continue you need to be willing to make a complete and total disclosure in the above areas.
Are You Eligible For An Offer In Compromise in Sandy Springs Georgia
Prior to the IRS will consider your deal, you need to: (1) file all income tax return you are lawfully needed to file, (2) make all required approximated tax payments for the present year, and (3) make all needed federal tax deposits for the present quarter if you are a business owner with staff members. In addition, you are not eligible if you remain in an open personal bankruptcy proceeding.
The OIC program is an option for taxpayers who are not able to pay their tax amounts in a lump amount or through an installation contract and have exhausted their search for other payment arrangements. To receive the OIC program, taxpayers should have the ability to demonstrate and prove that their tax amount can not be settled under either a lump sum or installment agreement for starters.
All other payment alternatives should be considered before sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may lawfully jeopardize a tax liability for one of the following factors:
Doubt As To Liability: There is doubt regarding whether or not the evaluated tax is correct.
Doubt As To Collectability: There is doubt that you might ever pay the total of the tax owed. In these cases, the total amount you owe must be higher than the amount of your possessions and future income.
Promote Effective Tax Administration: There is no doubt that the examined tax is correct and no doubt that the amount owed might be gathered, but you have an economic hardship or other special situations which may enable the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer 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.
Usually, the IRS will not accept an offer if you can pay your tax debt completely through an installation agreement or a swelling sum.
It is essential to keep in mind that penalties and interest will continue to accumulate during the offer evaluation procedure.