IRS Offer In Compromise, The 5 Little Known Facts You Must Know!
Get your IRS Offer in Compromise Accepted Today. Debt help irs settlement tax guide, The 5 little known facts you must know before you make a deal with the Internal Revenue Service!
The Internal Revenue Service compromise program or IRS OIC is not new. The OIC provides a systematic and rational way for you and the Internal Revenue Service to agree on a fair, equitable and realistic way for you to end your tax difficulties.
There are only two circumstances when an IRS offer in compromise will be considered.
- When the taxpayer is unable to pay the full liability and it is doubtful that the tax, penalty and interest can be fully collected within the foreseeable future through the collection process (doubt of collectible cases).
- Where there is doubt about the taxpayer’s liability (doubt of liability cases). A case may involve both doubt of collectivity and liability.
Many OlCs come from chronic delinquents and scofflaws, and irs offer in compromise are not intended to encourage people to disregard the law.
Your IRS offer in compromise also commits you to:
- Comply with all terms and conditions of the agreement.
- Give the Internal Revenue Service your future tax refunds for 5 years to cover those unpaid taxes not compromised.
- Comply with all Internal Revenue Service requirements (timely filings and payments) for five years.
Fail on any point and the Internal Revenue Service can rescind the offer in compromise agreement and collect the balance due on the original tax liability, or that balance due under your IRS Offer In Compromise.
The IRS takes OIC compliance seriously. The aim of the OIC program is to help troubled taxpayers get back on a straight track with the Internal Revenue Service - if they can stay on a straight track This explains why the IRS quickly revokes OICs when the taxpayer continues to violate the tax laws.
For your irs offer in compromise to be considered, all tax returns due from you must be filed. You will want your delinquent returns filed so you can include all outstanding obligations in your OIC.
This includes not only income taxes but also other outstanding liabilities, such as withholding taxes due from a business.
Filing an OIC does not automatically suspend collection. However, the Internal Revenue Service usually will not continue collection if you have submitted a reasonable offer. The IRS will continue to enforce collection if it thinks you are using the OIC only to delay collection or fraudulently transfer your assets. They will file a lien against your property and will not release the lien until your OIC has been fully paid.
What is the obvious advantage of the offer in compromise? It gives you the chance to begin your financial life anew without pressing tax claims. While you must pay the Internal Revenue Service something, this amount may represent a very small fraction of what you owe.
There are several small disadvantages to an IRS offer in compromise:
- An OIC requires you to agree not to contest in court nor appeal the amount of your tax liability if your offer is accepted. But this would become a disadvantage only if the OIC was later rescinded because you violated the agreement, and the IRS tried to collect the original disputed amount.
- An accepted IRS Compromise offer is a public record for one year. Anyone can examine your personal information and your finances. Such disclosures may hurt you in the future. Unaccepted offers remain confidential and are not public record.
- Filing the OIC extends the 10-year statute of limitations for collecting taxes one additional year plus the time the OIC is under Internal Revenue Service review. This is particularly true when amended OICs are filed. If you offer installment payments, this added year doesn't begin until your final payment is made.
- You will lose all overpayment's (refunds) for five years, including the current year, to the extent such application of refunds is necessary to pay the uncompromisable liability Even without the OIC, the IRS could automatically offset and apply these refunds to your tax liabilities. This is not a true disadvantage.
- Finally, the IRS Offer In Compromise process requires you to fully disclose to the Internal Revenue Service your entire financial history This, however, is no more information than is under an installment agreement. If your offer is rejected, the Internal Revenue Service will know more about your assets, and your disclosures may even prompt an IRS audit. However, this seldom occurs as a result of an OIC.
The opportunity to end your tax problems on terms you can afford, should clearly outweigh the disadvantages of an Offer In Compromise.
Where To Go For IRS Tax Debt Help?
The most important thing you can do to take control of your tax debt, and get your future back on track is to do something. Take action.
If you have an ongoing issue with the Internal Revenue Service that has not been resolved through normal processes, or you have suffered, or are about to suffer a significant hardship/economic burden as a result of the administration of the laws, contact the Taxpayer Advocate Service
IRS Tax Relief Avoid Wage Garnishments.
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