ATLANTA - Nov. 21, 2018 - PRLog -- This article will reveal what you need to know about an offer in compromise (OIC) and how a Tax Attorney in Atlanta can help you in the process. An OIC refers to a mutual agreement where the tax liabilities of a taxpayer are settled for a lower amount by the IRS.
In many instances, an OIC will not be approved by the IRS except what the taxpayer is offering equals or surpasses the taxpayer's Reasonable Collection Potential. RCP is used by the IRS to gauge the ability of the taxpayer to pay, and it comprises the value which will be retrieved from the assets of the taxpayer like real property, bank accounts, and more. Added to this, the RCP also comprises the expected future earnings minus a specified amount of money for expenditure on basic needs.
There are 3 grounds on which an OIC will be accepted by the IRS:
First, a compromise may be accepted if a doubt as to liability exists. This happens when a genuine disagreement occurs as to what the correct tax debt is under the law.
Second, a compromise may be accepted if some kind of doubt exists that what is owed can be fully collected. This is called doubt as to collectability and happens when the assets of the taxpayer plus their income do not measure up in value to the worth of the amount being owed in taxes.
Third, effective tax administration can lead to a compromise being accepted. This occurs if no doubt exists that what is owed by the taxpayer is accurate legally and is collectible in full but doing so would either result in economic hardship for the taxpayer or would be seen as unfair due to unique circumstances.
According to tax law, this offer can be paid 6 monthly installments and above, and these payments have to be made within 24 months from the acceptance of the offer. It is required by the IRS that this offer is submitted with the first installment payment alongside the fee of application.
Basically, the IRS will suspend the statutory for its collection activities within the period when it is still considering the OIC. The suspension will be extended if, upon rejection, the taxpayers make an appeal within 30 days from when they were notified of the rejection to the Office of Appeals.
Hire an Atlanta tax attorney early enough to help you settle your tax-related disputes can help to lower the stress and cost which a taxpayer may face.
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Atlanta Tax Attorney Helping Taxpayer fight the IRS
November 21, 2018 at 11:27 AM EST
