What Is An Offer In Compromise (OIC)?
An offer in compromise (offer) in Weston FL is an arrangement 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 extra quantities developing under the Internal Revenue Code.
An offer in compromise permits you to settle your tax debt for less than the full amount you owe. It provides eligible taxpayers with a path towards paying off their tax debt and getting a “fresh start.” The supreme objective is a compromise that fits the very best interest of both the taxpayer and the IRS. To be considered, generally you need to make a proper offer based on what the IRS considers your real ability to pay. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
A common myth or perception 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 definitely obtain a lower settlement of your tax debt, these ads provide an inaccurate understanding that the majority of offers are suitable which most offers will be accepted (even inappropriate deals).
The IRS considers your distinct set of truths and circumstances. So it is very important that you have representation from a skilled tax professional, such as The Tax Attorney Network, so that your interests are protected and that an appropriate offer is made based upon your:
Ability to pay;
The OIC application needs you to describe your financial circumstance in information, so prior to you continue you should want to make a complete and total disclosure in the above locations.
Are You Eligible For An Offer In Compromise in Weston Florida
Prior to the IRS will consider your offer, you need to: (1) submit all income tax return you are lawfully required to file, (2) make all required estimated tax payments for the existing year, and (3) make all required federal tax deposits for the current quarter if you are a company owner with employees. In addition, you are not qualified if you remain in an open insolvency case.
The OIC program is an alternative for taxpayers who are unable to pay their tax amounts in a lump sum or through an installation agreement and have actually exhausted their search for other payment arrangements. To get approved for the OIC program, taxpayers should be able to show and show that their tax amount can not be settled under either a swelling amount or installation agreement for beginners.
All other payment alternatives need to be thought about prior to sending an offer in compromise. The Offer in Compromise program is not for everyone.
The IRS might lawfully compromise a tax liability for among the following reasons:
Doubt As To Liability: There is doubt regarding whether the evaluated tax is proper.
Doubt As To Collectability: There is doubt that you could ever pay the full amount of the tax owed. In these cases, the overall amount you owe must be greater than the sum of your assets and future earnings.
Promote Effective Tax Administration: There is no doubt that the evaluated tax is proper and no doubt that the amount owed might be collected, but you have a financial hardship or other special circumstances which may permit the IRS to accept less than the balance due.
Lump Sum Cash: Must be paid within 5 or fewer installments within 5 or less months from notice of approval.
Short-term Periodic Payment: Must be paid within 24 months (2 years) from the date the IRS receives the OIC.
Normally, the IRS will not accept an offer if you can pay your tax debt in full through an installment arrangement or a swelling sum.
It is important to note that penalties and interest will continue to accumulate throughout the deal evaluation process.