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As professional legal advisors, we here at The Law Offices of Ryan McFarland believe that if there’s a will, there’s a way. And in an Offer in Compromise (OIC), this mode of payment of tax debt gives you the opportunity to pay a tax debt that is less of what you owe provided that you have exhausted all the above efforts to make sure that you can pay.
Tax Debt Relief
On the contrary, if you are surprised that your application has been approved, do not be. As we mentioned, Offers in Compromise are usually the final option when it comes to tax payment. In most cases, the IRS looks for the most suitable reason that can give you full-speed on your OIC.
DOUBT AS TO LIABILITY
this happens when the nature of owing the taxes is questionable.
DOUBT AS TO COLLECTIBILITY
before an individual takes this the wrong way, similar to being bankrupt, it is better to admit that you cannot pay what is expected of you because of the lifestyle that you are in. Honesty can sometimes be better than breaking the law. (The pattern of not being able to pay your taxes can easily become tax evasion if you do not claim everything) and
EFFECTIVE TAX ADMINISTRATION
shows that there are special circumstances that prevent you from not paying the tax.
The accepted OIC means that a citizen has given a realistic appraisal of what you can pay. The IRS thoroughly evaluates the conditions at present to make a judgment and offer a mode of payment. The possible outcomes of an approved OIC are: 1) it can allow you to pay less than what you owe and 2) it is assumed that you, as a citizen, are in a minimal condition to pay your taxes. Weighing the facts of your circumstances such as past earnings and projected earning trajectory, current income, possessed assets and expenditure inventory, the IRS can fit you into a profile to determine whether the payment of what you owe is realistic.
On the contrary to the other tax payment options, an Offer in Compromise helps to show in what state you are not to pay and how being in this certain financial condition can affect your ability to pay in the future. Qualifying for an OIC expects this specific taxpayer to file all tax returns, made required tax estimates in the current year and if s/he has a business, paid the federal deposits of at least the current and relevant quarter. If you haven’t noticed—yes, of all of them need to be as recent as possible for us to make fewer delays. The applicants meeting the OIC criteria includes the unemployed and those buried in specific tax debt.
Tax Debt Offers in Compromise
Going back to being unemployed and being part of a tax bracket, the IRS has started a Fresh Start Initiative since 2011 to help individuals who physically and financially cannot pay and combines other modes of payment to come up with a customized method that can accommodate more people depending on how much they owe. The Law Offices of Ryan McFarland will be glad to be of help to expand these compensation options for you. Also additional information:
Mode of payments is the Lump Sum Payment, Short-Term Periodic Payment, and Periodic Deferred Payment.
OICs can be rejected. Incomplete forms and declarations, lack of financial information within the given deadline or due to the results of your financial evaluation are cited as possible decline factors. In this case, your first payment will be applied to your outstanding debt, but your application will be kept on file.
There are application fees for your respective Offers in Compromise. Please go to the IRS website to inquire, or our representatives can go through the basics with you.