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Offer in Compromise - Tax Lawyer Los Angeles

Flat Fee Tax Service, Inc. is a nationwide tax relief firm that will resolve your tax debt problem. Our Tax Lawyers will protect struggling taxpayers, located in Los Angeles and throughout the United States, while "walking through" their Offer in Compromise settlement.

In the circumstance that you have found yourself in the unfortunate position of owing money to the IRS or another tax institution, things might seem overwhelming and hopeless. In the case that you owe back taxes, an Offer In Compromise is one of the most attractive options out there.

You need options – what to look for, how to find them, and how to take the best advantage, to all parties’ satisfaction.

Smash Your IRS Tax Debt - IRS Tax Lawyer

You may be able to SMASH your IRS tax debt if you are qualified and eligible. Many thousands of taxpayers settle their income tax debt through the Offer in Compromise program every year. You need to owe more than $10,000 to settle with the IRS.

But what is an Offer in Compromise? And how do you make the most of this form of tax forgiveness?

Offer In Compromise FAQ

The Offer In Compromise is when a taxpayer proposes to pay less than the full amount of back taxes due. The Offer in Compromise program is to allow taxpayers with substantial debts to start fresh so that they keep up to date with future taxes.

In short, an Offer In Compromise is a way to work out a deal with the IRS to pay back a small percentage of what is owed in tax debt. It’s much more attractive to settle through the Offer in Compromise program than paying what you owe, in full, plus penalties.

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How An Offer in Compromise Works

An Offer in Compromise can vary greatly in amount, depending on the taxpayers’ equity, expenses and future earning potential. Current IRS guidelines allow this lump sum to be paid in installments, over a period up to two years.

PER IRS STATISTICS: THE IRS APPROVED 42% OF THE 80,000 OFFER IN COMPROMISE SUBMISSIONS IN 2016.

95% OF FLAT FEE TAX SERVICE, INC.'S CLIENTS RECEIVED A SUCCESSFUL IRS SETTLEMENT.

The Offer in Compromise application process can be lengthy, taking from six months up to a year, sometimes even longer. You will not be expected to make payments on your back taxes while your proposal is under review. You MUST, however, make sure to keep up with every and all current tax payments, including estimated income tax payments, quarterly, as well as federal payroll tax deposits. Failure will automatically discredit your Offer in Compromise proposal.

When you file your tax settlement proposal, the first payment must be made. The initial payment is 20% of what you owe, for a lump sum Offer in Compromise. For a payment plan, you must submit your first payment. If you’re paying on an Offer in Compromise installment plan, you will be expected to make each payment, as they come up, while your IRS settlement proposal is being considered. In the case that your Offer in Compromise isn’t accepted, those payments will be applied towards your back taxes.

Factors The IRS Will Consider When Determining The Amount Of An Offer In Compromise:

Ability to pay the dividend due
Assets and equity
Present and future income
Current and future expenses
Changing circumstances

Whether the Offer in Compromise is in the best interests of both the IRS and the taxpayer
If you fail to comply with any conditions of the Offer In Compromise, it can immediately be nullified, allowing the IRS to take moves to collect your entire balance, plus penalties, fees, and interest. An Offer in Compromise can be nullified if the IRS has reason to believe you falsified any information on your proposal or that you’ve concealed assets.

Offer In Compromise: Pros & Cons

You might be weighing your options, still deciding if an OIC is the best option for you. Here are some things to consider:

Pros:

Debt reduction and more affordable payments: The first and most obvious reason to consider tax forgiveness is it could save you substantial amounts of money. An IRS settlement can make your outstanding balance much more manageable, and prevent your wages and assets from being garnished at a later date.

Stop Collection Activities: If you’ve ended up in bad standing with the IRS, they could freeze your assets, including your bank account. Having your assets frozen can force you to live paycheck to paycheck, making it even harder to get out of debt. An Offer in Compromise is a chance to break the cycle.

Tax Relief Resolution: Having an outstanding balance with the IRS can be like living in the shadow of a gallows, or having a ton of bricks on your chest. Coming to a solution allows you to breathe easily.

Cons:

Strict Qualifications: It can be hard for an individual to meet the income and asset guidelines to qualify for an IRS settlement. Those best-qualified for tax forgiveness are low-income taxpayers, and people with very few assets for the IRS to seize.

Waiving Of Tax Benefits: When you make an Offer In Compromise, you forfeit your right to claim any tax benefits and credits, which could lower your refund significantly.

CALL FLAT FEE TAX SERVICE, INC. REGARDING TAX FORGIVENESS: 1-800-589-3078

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Flat Fee Tax Service

3200 4th Ave., Suite 208,

San Diego, CA 92103

Phone. 800-589-3078

Email. info@flatfeetaxservice.us