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Offer in Compromise – Santa Maria CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Santa Maria CA is an arrangement in between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This applies to all taxes, including any interest, penalties, or extra quantities emerging 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 supplies qualified taxpayers with a path towards settling their tax debt and getting a “fresh start.” The supreme objective is a compromise that fits the very best interest of both the taxpayer and the IRS. To be thought about, normally you should make a proper offer based on what the IRS considers your real capability to pay. It may be a legitimate choice if you can’t pay your complete tax liability, or doing so develops a financial challenge.

A common myth or understanding thanks to advertisements 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 advertisements supply an incorrect understanding that a lot of deals are proper and that many offers will be accepted (even improper deals).

The IRS considers your unique set of truths and circumstances. So it is important that you have representation from an experienced tax professional, such as The Tax Attorney Network, so that your interests are safeguarded and that a proper deal is made based upon your:

Ability to pay;
Earnings;
Costs; and
Possession equity.

The OIC application needs you to describe your financial scenario in information, so before you proceed you should be willing to make a full and complete disclosure in the above locations.

Are You Eligible For An Offer In Compromise in Santa Maria California

Before the IRS will consider your deal, you must: (1) file all tax returns you are lawfully needed to submit, (2) make all required approximated tax payments for the current year, and (3) make all needed federal tax deposits for the existing quarter if you are a company owner with staff members. In addition, you are not eligible if you remain in an open personal bankruptcy proceeding.

The OIC program is a choice for taxpayers who are unable to pay their tax quantities in a lump sum or through an installation arrangement and have actually exhausted their search for other payment arrangements. To get approved for the OIC program, taxpayers must have the ability to demonstrate and prove that their tax amount can not be settled under either a swelling sum or installment arrangement for beginners.

All other payment options need to 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 one of the following factors:

Doubt As To Liability: There is doubt regarding whether or not the evaluated tax is appropriate.
Doubt As To Collectability: There is doubt that you could ever pay the total of the tax owed. In these cases, the overall quantity you owe should be higher than the sum of your possessions and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is appropriate and no doubt that the quantity owed might be gathered, but you have a financial hardship 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 less 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.

Typically, the IRS will not accept an offer if you can pay your tax debt in full through an installation contract or a swelling sum.

It is essential to keep in mind that penalties and interest will continue to accrue during the deal examination process.

Contact the Tax Attorney Network in Santa Maria CA Today at (855) 980-7563

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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.

     

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