Offer In Compromise
Many consumers and small business owners may never have
heard of the term” offer
in compromise”. An offer in compromise
or OIC as it is called by the IRS is an agreement between
a taxpayer and the IRS that will resolve the taxpayers tax
debt for a percentage of what was owed. Few people realize
or are aware that the IRS has the authority to compromise
and settle federal tax liabilities by excepting a compromised
payment of the taxes owed under certain circumstances. In
other words they have the authority to reduce the amount
of taxes owed by the taxpayer proved the taxpayer qualifies
for the Offer in Compromise progam. This
situation occurs when a taxpayer is unable to pay the tax
debt they owe IRS in full and they do not have the assets
or income to meet their income tax obligation.. The Offer
in Compromise program is the most popular program
to settle income tax problems and payroll tax problems provided
the taxpayer or small business owner can meet IRS requirements
for an Offer in Compromise.
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Here to contact us for a Free Consultation or call Toll-Free
877-281-1829
Offer in Compromise -- Reasons for an OIC
There are three reasons why an offer in compromise
may be considered. These include:
• Doubt as to liability
• Doubt as to collectibles
• Effective tax administration
The first area indicates that there is doubt that the assessed
tax is actually owed by the taxpayer. The second area essentially
means that the assessed taxes are considered correct, however
doubt exists that you could ever pay the full amount of
the tax owed. In the third case there is no doubt that the
tax is correct and there is no doubt that the tax could
be collected but there is an exceptional circumstance that
allows the IRS to consider an OIC or offer in compromise.
To be eligible for an offer in compromise the taxpayer must
be able to show that full payment of the taxes would create
an economic hardship, would be unfair, or inequitable.
Offer in Compromise -- Frequency of Use
The offer in compromise is considered
to be the best program for tax relief offered by the IRS..
However, taxpayers and small businesses should be aware
that promoters who claim to be able to settle tax debts
for pennies on the dollar through the offer in compromise
program should check the requirements for the offer
in compromise to see if they will qualify. Checking
information given to you by a prmotor is a good plan. Make
sure you can qualify for the Offer in Compromise
program. Call us today and we can help you decided
if you can qualify for tax relief through the Offer
in Compromise program.
Click
Here to contact us for a Free Consultation or call Toll-Free
877-281-1829
The best advice for taxpayers to retain reliable representation
for you income tax problems and to help you petition for
an Offer in Compromise. If you need help
with unfiled tax returns or just need advice on how to handle
an income tax problem call an expert, it will save you time
and money. avoid an offer in compromise situation
is to always pay your income taxes when they are due and
in full. In all situations where you have difficulty in
paying your taxes , further discussion with an tax relief
expert is clearly warranted and they can negotiate an instalment
agreement if you can’t qualify for the Offer
in Compromise, which will lead to your full debt
being paid to the IRS
