What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Santa Ana CA 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, 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 total you owe. It offers eligible taxpayers with a course toward settling 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, normally you must make an appropriate deal based on what the IRS considers your real ability to pay. It might be a legitimate choice if you can’t pay your full tax liability, or doing so develops a financial challenge.
A common misconception 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 definitely obtain a lower settlement of your tax debt, these advertisements provide an inaccurate perception that a lot of offers are appropriate which many offers will be accepted (even improper deals).
The IRS considers your unique set of realities and scenarios. So it is necessary that you have representation from a skilled tax expert, such as The Tax Attorney Network, so that your interests are safeguarded which an appropriate offer is made based on your:
Ability to pay;
The OIC application needs you to explain your monetary situation in detail, so before you continue you should be willing to make a full and complete disclosure in the above areas.
Are You Eligible For An Offer In Compromise in Santa Ana California
Before the IRS will consider your deal, you need to: (1) file all tax returns you are legally required to file, (2) make all needed estimated tax payments for the current year, and (3) make all needed federal tax deposits for the present quarter if you are a business owner with workers. In addition, you are not eligible if you are in an open bankruptcy proceeding.
The OIC program is a choice for taxpayers who are unable to pay their tax amounts in a lump amount or through an installation contract and have actually tired their look for other payment arrangements. To qualify for the OIC program, taxpayers need to be able to demonstrate and show that their tax quantity can not be settled under either a lump amount or installment contract for starters.
All other payment alternatives should be considered before submitting an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS may legally compromise a tax liability for among the following factors:
Doubt As To Liability: There is doubt as to whether or not the evaluated tax is proper.
Doubt As To Collectability: There is doubt that you could ever pay the full amount of the tax owed. In these cases, the total quantity you owe must be greater than the sum of your properties and future earnings.
Promote Effective Tax Administration: There is no doubt that the assessed tax is correct and no doubt that the quantity owed might be collected, but you have a financial hardship or other unique situations which might enable the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer installations within 5 or less months from notice of acceptance.
Short-term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.
Typically, the IRS will not accept an offer 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 throughout the offer evaluation process.
Contact the Tax Attorney Network in Santa Ana CA Today at (855) 980-7563
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