What Is An Offer In Compromise (OIC)?
An offer in compromise (deal) in Valdosta GA 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 extra quantities arising 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 provides eligible taxpayers with a course towards settling their tax debt and getting a “fresh start.” The supreme goal is a compromise that fits the very best interest of both the taxpayer and the IRS. To be thought about, usually you must make an appropriate offer based on what the IRS considers your true ability to pay. It may be a legitimate option if you can’t pay your complete tax liability, or doing so produces a monetary 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 certainly get a lower settlement of your tax debt, these advertisements provide an incorrect perception that many offers are suitable which most offers will be accepted (even inappropriate deals).
The IRS considers your distinct set of facts and scenarios. So it is necessary that you have representation from an experienced tax professional, such as The Tax Attorney Network, so that your interests are secured which an appropriate deal is made based upon your:
Capability to pay;
The OIC application requires you to describe your financial scenario in detail, so before you continue you should be willing to make a complete and total disclosure in the above areas.
Are You Eligible For An Offer In Compromise in Valdosta Georgia
Before the IRS will consider your deal, you must: (1) submit all tax returns you are lawfully needed to submit, (2) make all needed approximated tax payments for the existing year, and (3) make all needed federal tax deposits for the existing quarter if you are a company owner with workers. In addition, you are not qualified if you are in an open insolvency proceeding.
The OIC program is an alternative for taxpayers who are not able to pay their tax quantities in a swelling sum or through an installment arrangement and have tired their search for other payment plans. To qualify for the OIC program, taxpayers should have the ability to show and show that their tax quantity can not be settled under either a lump sum or installment contract for beginners.
All other payment options must be considered before sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS might legally compromise a tax liability for one of 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 total of the tax owed. In these cases, the overall amount you owe need to be greater 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 quantity owed might be gathered, however you have an economic challenge or other special scenarios which might allow 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 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 swelling amount.
It is important to note that penalties and interest will continue to accumulate throughout the offer examination process.