What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Thousand Oaks CA is an agreement in between you (the taxpayer) and the IRS that settles a tax debt for less than the total owed. This uses to all taxes, including any interest, penalties, or additional amounts emerging 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 qualified taxpayers with a path towards settling their tax debt and getting a “fresh start.” The supreme objective is a compromise that matches the best interest of both the taxpayer and the IRS. To be considered, generally you should make an appropriate deal based upon what the IRS considers your real ability to pay. It may be a genuine alternative if you can’t pay your complete tax liability, or doing so produces a monetary challenge.
A common misconception or perception thanks to ads 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 get a lower settlement of your tax debt, these advertisements provide an inaccurate perception that the majority of offers are suitable which a lot of offers will be accepted (even improper offers).
The IRS considers your distinct set of realities and situations. So it is important that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are secured which a proper deal is made based upon your:
Ability to pay;
The OIC application needs you to describe your financial situation in detail, so prior to you proceed 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 Thousand Oaks California
Prior to the IRS will consider your offer, you need to: (1) file all tax returns you are lawfully needed to submit, (2) make all required approximated tax payments for the present year, and (3) make all required federal tax deposits for the existing quarter if you are a business owner with employees. In addition, you are not qualified if you remain in an open personal bankruptcy case.
The OIC program is an alternative for taxpayers who are not able to pay their tax quantities in a swelling amount or through an installment arrangement and have exhausted their look for other payment arrangements. To get approved for the OIC program, taxpayers need to be able to show and prove that their tax quantity can not be settled under either a lump sum or installation arrangement for beginners.
All other payment alternatives must be considered before sending an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS might 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 appropriate.
Doubt As To Collectability: There is doubt that you could ever pay the full amount 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 assessed tax is proper and no doubt that the amount owed might be collected, however you have a financial difficulty 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 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.
Normally, the IRS will decline an offer if you can pay your tax debt completely through an installment agreement or a swelling sum.
It is important to keep in mind that penalties and interest will continue to accumulate throughout the offer assessment process.
Contact the Tax Attorney Network in Thousand Oaks CA Today at (855) 980-7563
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