Only the IRS can accept a taxpayer for an OIC.
Los Angeles, CA (PRWEB) January 28, 2013
CTR’s Bellflower tax attorney is proud to announce new information for delinquent taxpayers regarding the IRS Offer in Compromise tax resolution. CTR urges California taxpayers with tax debt problems to understand as much info as possible about the Offer in Compromise resolution before hiring a tax service that is advertising services to secure such a tax settlement.
CTR first wants to acknowledge that there are financial considerations that the IRS takes into account before accepting a tax resolution with any individual. Because every taxpayer has unique tax debt, income and expenses, the IRS considers each tax resolution on a case by case basis. Taxpayers unsure of the tax code should contact a CTR office, like a local Bell Gardens tax attorney in California, for a free consultation and to understand their situation completely.
CTR is warning taxpayers that the Offer in Compromise tax settlement is the most difficult resolution to have accepted by the federal government. Taxpayers are required to submit a full range of financial documentation to the IRS to prove that they either do not have the ability to pay the full tax liability, have too many expenses, do not make enough money, or have issues with their asset equity. In addition, the IRS will accept an OIC if the taxpayer can show that the IRS made a mistake or that the tax liability is incorrect. An Offer in Compromise is agreed upon by the IRS when the IRS agent investigating the case decides that the offer is the most the government will be able to collect within the Statute of Limitations, or expiration date of collection actions.
CTR also wishes to point out that a local tax service, like a Bell tax attorney, may charge large upfront fees and promise an Offer in Compromise resolution. The less than honest promise appeals to delinquent taxpayers because the IRS will sometimes settle the tax liability for thousands of dollars less than the taxpayer owed when an Offer in Compromise is accepted. CTR reminds taxpayers that a service making false promises will likely not refund the fee to the delinquent taxpayer who is already in financial trouble.
CTR is also happy to announce new regulations by the IRS that have changed the eligibility requirements for having an offer accepted. For instance, the IRS will now only look at one year, instead of four, of future income for Offers in Compromise that can be paid within five months. In addition, the agency will only look at two years of future income for offers to be paid within twenty four months. There are also new rules regarding dissipated assets being included with a taxpayer’s reasonable collection potential and how equity with income producing assets will be treated.
CTR wishes to stress the importance for taxpayers to understand the requirements for eligibility to this type of tax resolution. Most delinquent taxpayers do not qualify for an Offer in Compromise and will end up in a bad situation if they utilize a tax service that guarantees acceptance. Only the IRS can accept a taxpayer for an OIC.
CTR offers tax debt resolution and tax services for individuals and businesses across the United States. The company uses a three step program to create personalized strategies to help taxpayers settle their IRS debt. The company offers many services, including: state and federal tax debt resolution, IRS audit defense, tax preparation and bookkeeping in Chicago.