What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Vacaville CA is a contract in 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 additional amounts developing under the Internal Revenue Code.
An offer in compromise allows you to settle your tax debt for less than the total you owe. It supplies qualified taxpayers with a course towards paying off their tax debt and getting a “fresh start.” The ultimate goal is a compromise that fits the best interest of both the taxpayer and the IRS. To be considered, usually you need to make a proper deal based upon what the IRS considers your true ability to pay. It may be a legitimate alternative if you can’t pay your full tax liability, or doing so develops a financial difficulty.
A typical misconception or perception 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 provide an incorrect understanding that most deals are proper which a lot of offers will be accepted (even improper offers).
The IRS considers your unique set of facts and scenarios. So it is necessary that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are protected which a proper deal is made based on your:
Ability to pay;
The OIC application requires you to explain your financial circumstance in information, 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 Vacaville California
Before the IRS will consider your offer, you should: (1) submit all tax returns you are legally required to file, (2) make all required approximated tax payments for the existing year, and (3) make all needed federal tax deposits for the current quarter if you are a company owner with staff members. In addition, you are not qualified if you are in an open bankruptcy case.
The OIC program is a choice for taxpayers who are not able to pay their tax quantities in a swelling sum or through an installation contract and have exhausted their search 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 swelling amount or installation contract for beginners.
All other payment alternatives should be considered before sending 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 examined tax is proper.
Doubt As To Collectability: There is doubt that you could ever pay the total of the tax owed. In these cases, the total quantity you owe need to be greater than the amount of your assets and future earnings.
Promote Effective Tax Administration: There is no doubt that the assessed tax is right and no doubt that the amount owed might be collected, however you have a financial hardship or other special circumstances which may enable the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less 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 gets the OIC.
Generally, the IRS will decline a deal if you can pay your tax debt completely through an installation agreement or a lump sum.
It is essential to note that penalties and interest will continue to accrue throughout the offer assessment procedure.
Contact the Tax Attorney Network in Vacaville CA Today at (855) 980-7563
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