What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in West New York NJ 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 arising under the Internal Revenue Code.
An offer in compromise enables you to settle your tax debt for less than the full amount you owe. It provides eligible taxpayers with a path towards settling their tax debt and getting a “fresh start.” The ultimate objective is a compromise that matches the very best interest of both the taxpayer and the IRS. To be thought about, typically you need to make a suitable deal based on what the IRS considers your true ability to pay. It might be a genuine choice if you can’t pay your complete tax liability, or doing so creates a financial difficulty.
A common misconception or understanding thanks to advertisements 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 get a lower settlement of your tax debt, these ads provide an inaccurate understanding that most deals are proper and that many deals will be accepted (even unsuitable deals).
The IRS considers your special set of truths and circumstances. So it is essential that you have representation from a knowledgeable tax professional, such as The Tax Attorney Network, so that your interests are protected which a proper deal is made based upon your:
Ability to pay;
The OIC application requires you to describe your financial situation in information, so prior to you continue you need to be willing to make a complete and total disclosure in the above areas.
Eligibility For An Offer In Compromise in West New York New Jersey
Prior to the IRS will consider your offer, you must: (1) file all income tax return you are lawfully needed to file, (2) make all needed estimated tax payments for the existing year, and (3) make all needed federal tax deposits for the existing quarter if you are an entrepreneur with workers. In addition, you are not eligible if you are in an open bankruptcy case.
The OIC program is a choice for taxpayers who are not able to pay their tax amounts in a swelling amount or through an installation agreement and have exhausted their search for other payment arrangements. To receive the OIC program, taxpayers must have the ability to demonstrate and prove that their tax quantity can not be settled under either a swelling amount or installation agreement for starters.
All other payment choices must be considered prior to sending an offer in compromise. The Offer in Compromise program is not for everybody.
The IRS might lawfully compromise a tax liability for one of the following reasons:
Doubt As To Liability: There is doubt regarding whether the assessed 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 overall quantity you owe must be greater than the sum of your properties and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is right and no doubt that the quantity owed could be gathered, however you have an economic challenge or other special circumstances which might enable the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or less installations within 5 or fewer months from notice of approval.
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 installation agreement or a swelling sum.
It is necessary to note that penalties and interest will continue to accumulate during the deal assessment procedure.
Contact the Tax Attorney Network in West New York NJ Today at (855) 980-7563
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