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Offer in Compromise – West Jordan UT

What Is An Offer In Compromise (OIC)?

An offer in compromise (deal) in West Jordan UT is an arrangement 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 occurring under the Internal Revenue Code.

An offer in compromise enables you to settle your tax debt for less than the total you owe. It provides eligible taxpayers with a path toward settling their tax debt and getting a “fresh start.” The supreme objective is a compromise that suits the very best interest of both the taxpayer and the IRS. To be considered, typically you should make a suitable deal based upon what the IRS considers your true capability to pay. It might be a genuine choice if you can’t pay your complete tax liability, or doing so develops a financial difficulty.

A typical misconception or understanding 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 certainly acquire a lower settlement of your tax debt, these advertisements provide an inaccurate understanding that many offers are appropriate and that the majority of offers will be accepted (even unsuitable deals).

The IRS considers your special set of realities and scenarios. So it is necessary that you have representation from a knowledgeable tax professional, such as The Tax Attorney Network, so that your interests are safeguarded and that an appropriate offer is made based on your:

Capability to pay;
Income;
Costs; and
Asset equity.

The OIC application needs you to describe your monetary situation in detail, so prior to you proceed you should want to make a complete and total disclosure in the above areas.

Eligibility For An Offer In Compromise in West Jordan Utah

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

The OIC program is a choice for taxpayers who are not able to pay their tax amounts in a swelling amount or through an installment arrangement and have actually tired their search for other payment arrangements. To get approved for the OIC program, taxpayers should be able to demonstrate and prove that their tax amount can not be settled under either a lump sum or installation agreement for starters.

All other payment choices should be considered before submitting an offer in compromise. The Offer in Compromise program is not for everyone.

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

Doubt As To Liability: There is doubt regarding whether or not the examined tax is correct.
Doubt As To Collectability: There is doubt that you could ever pay the full amount of the tax owed. In these cases, the total quantity you owe should be greater than the amount of your assets and future income.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is appropriate and no doubt that the quantity owed could be gathered, but you have a financial difficulty or other unique circumstances 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 acceptance.
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 a deal if you can pay your tax debt completely through an installment arrangement or a swelling sum.

It is very important to keep in mind that penalties and interest will continue to accrue during the deal evaluation process.

Contact the Tax Attorney Network in West Jordan UT Today at (855) 980-7563

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