Have a Question? Call Us: (855) 980-7563

     

The Tax Attorney Network

Tax Debt Help You Can Count On

Offer in Compromise – Vallejo CA

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in Vallejo 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 additional quantities occurring under the Internal Revenue Code.

An offer in compromise permits you to settle your tax debt for less than the total you owe. It provides qualified taxpayers with a course towards settling their tax debt and getting a “fresh start.” The supreme objective is a compromise that matches the very best interest of both the taxpayer and the IRS. To be thought about, generally you should make an appropriate offer based upon what the IRS considers your real ability to pay. It might be a genuine choice if you can’t pay your full tax liability, or doing so produces a monetary difficulty.

A typical myth 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 obtain a lower settlement of your tax debt, these advertisements offer an incorrect understanding that most offers are proper which a lot of offers will be accepted (even unsuitable deals).

The IRS considers your special set of facts and situations. So it is important that you have representation from a knowledgeable tax expert, such as The Tax Attorney Network, so that your interests are safeguarded and that a suitable offer is made based on your:

Capability to pay;
Earnings;
Expenses; and
Asset equity.

The OIC application needs you to describe your financial scenario in detail, so prior to you proceed you must want to make a complete and complete disclosure in the above areas.

Are You Eligible For An Offer In Compromise in Vallejo California

Prior to the IRS will consider your deal, you should: (1) file all tax returns you are legally needed to submit, (2) make all needed estimated tax payments for the existing year, and (3) make all required federal tax deposits for the existing quarter if you are an entrepreneur with workers. In addition, you are not eligible if you remain in an open insolvency case.

The OIC program is a choice for taxpayers who are not able to pay their tax quantities in a lump amount or through an installment agreement and have actually tired their look for other payment plans. To receive 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 agreement for starters.

All other payment alternatives need to be thought about prior to submitting an offer in compromise. The Offer in Compromise program is not for everybody.

The IRS might legally jeopardize a tax liability for one of the following factors:

Doubt As To Liability: There is doubt as to whether the assessed tax is correct.
Doubt As To Collectability: There is doubt that you might 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 assets and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is proper and no doubt that the amount owed could be collected, however you have an economic 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 installations 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 receives the OIC.

Typically, the IRS will not accept a deal if you can pay your tax debt in full through an installation agreement or a lump amount.

It is essential to note that penalties and interest will continue to accrue throughout the offer assessment procedure.

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

tax help

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.

     

© 2020 The Tax Attorney Network