IRS Offer in Compromise Assistance Satellite Beach, FL
At Satellite Tax Resolution, we understand how burdensome outstanding tax debts can be and that's where our IRS Offer in Compromise Assistance comes into play. An Offer in Compromise (OIC) is a program from the IRS that allows taxpayers to settle their tax debt for less than the full amount they owe. Our knowledgeable team, led by CPA Kim Miller, is well-versed in these negotiations. We help you analyze your financial situation, determine if an OIC is the right solution for you, prepare the necessary paperwork, and advocate on your behalf with the IRS.
Satellite Tax Resolution's Expert CPAs
Under the astute leadership of Kim Miller, a certified and experienced CPA, Satellite Tax Resolution consistently provides outstanding tax services. Our team, enriched by Kim's profound understanding of tax laws and IRS regulations, offers solutions that are not only effective but also tailored to each client's unique circumstances. However, our service doesn't stop at merely resolving present tax issues. With Satellite Tax Resolution, you're not simply engaging a service, you're securing a partner committed to guiding you through the maze of tax matters with competence and care.
OIC Program Designations of Paths
The IRS Offer in Compromise (OIC) program has been strategically designed to incorporate three distinct paths, each addressing different aspects of tax resolution. The path chosen depends on your specific circumstances and tax situation.
Doubt as to Tax Liability
This category is applicable when there's a genuine dispute about the existence or amount of the correct tax debt under the law. Doubt as to liability occurs when there's an assertion that the tax assessed is incorrect. In such cases, Satellite Tax Resolution provides assistance in gathering the necessary evidence and presenting a compelling case to the IRS to reduce or eliminate the tax liability.
Efficient Tax Administration
Efficient Tax Administration, or ETA, is an Offer in Compromise that applies when collecting the full tax amount would create an economic hardship for the taxpayer or would be unfair and inequitable. This form of OIC is considered when the tax amount is correct, and there's potential for the amount to be collected, but doing so would cause the taxpayer to face financial distress.
Doubt as to Collectability
This is the most common type of OIC and comes into play when the taxpayer cannot pay the tax debt in full. Here, doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection. At Satellite Tax Resolution, we meticulously review your financial situation, making certain the IRS understands your inability to pay the full amount,.
The Process of Reducing Tax Debt through an Offer in Compromise
An Offer in Compromise (OIC) provides a strategic avenue for taxpayers to lessen their tax debt, and it involves an agreement with the IRS to settle tax liabilities for less than the full amount owed. However, the process of obtaining an OIC is complex and requires thorough knowledge of tax laws and IRS procedures.
Initial Assessment:
Initiating the Offer in Compromise (OIC) process begins with an in-depth financial assessment to determine its suitability for your specific circumstances. Since not every taxpayer is eligible for an OIC, this evaluation is paramount. It ensures that the chosen tax resolution strategy aligns with your financial standing and needs.
Application Preparation and Submission:
If an OIC is deemed appropriate, the next step is the preparation and submission of Form 656, the official Offer in Compromise application. Along with Form 656, taxpayers also need to submit Form 433-A (for individuals) or 433-B (for businesses) to provide a detailed financial statement.
Offer Evaluation by the IRS:
Upon submission of the Offer in Compromise (OIC) application, the IRS initiates a thorough review process. They cross-check the details submitted, gauge the taxpayer's payment capacity, and decide if greenlighting the offer is in line with the agency's objectives and policies.
Decision and Settlement:
When a taxpayer submits an Offer in Compromise (OIC) to the IRS, it can be accepted, rejected, or met with a counteroffer. If accepted, the taxpayer must adhere to all tax laws for the next five years and pay the settled amount to clear their debt. This commitment ensures they remain compliant and fulfills their end of the agreement.
Potential for Appeal:
If the Offer in Compromise (OIC) is declined by the IRS, taxpayers aren't left without options. They have a 30-day window to appeal the decision, providing an opportunity to address and rectify any issues leading to the initial rejection. During this appeal process, it's beneficial to present any additional documentation or clarifications that might strengthen the case for acceptance.
How an Offer in Compromise Can Alleviate Your Tax Debt Burden
An Offer in Compromise (OIC) can be a lifeline for taxpayers dealing with substantial tax debt. This IRS program allows for the negotiation of a reduced settlement, taking into account your financial capacity, making it a practical solution for many under the burden of tax debt. A successful OIC can result in significant savings, and crucially, it halts further collection activities, providing you with immediate relief from wage garnishments and bank levies.
Aside from reducing your overall tax debt, an OIC also eradicates federal tax liens, freeing up your assets from potential seizure. This fresh start offers peace of mind and a clear path to financial recovery, without the stress of unresolved tax liabilities. Navigating the complexities of an OIC is challenging, however, which is why Satellite Tax Resolution's experienced CPAs are ready to assist, providing expert guidance and efficient resolution for your tax debt concerns.
IRS Tax Settlement Options
When facing tax liabilities, taxpayers have several IRS tax settlement options available. Each option is designed to accommodate different financial situations, allowing taxpayers to clear their debts in a manner that aligns with their ability to pay.
The first option is the aforementioned
Offer in Compromise (OIC), which allows taxpayers to settle their tax debt for less than the full amount they owe. This option is ideal for those who can demonstrate significant financial hardship.
Installment Agreements are another option for taxpayers who cannot pay their tax liability in full. This agreement allows taxpayers to make monthly payments towards their tax debt over time. There are several types of installment agreements, including guaranteed, streamlined, partial payment, and non-streamlined.
Currently Non-Collectible Status (CNC) is another option for those experiencing severe financial hardship. The IRS temporarily suspends collection activity until the taxpayer's financial condition improves.
Penalty Abatement is an option for those who have a legitimate reason, such as a medical emergency or serious illness, for not complying with tax laws. In such cases, the IRS may forgive penalties.
Lastly, for those who are not eligible for other IRS tax settlement options,
Bankruptcy might be a consideration. Depending on the type of tax debt and the nature of the bankruptcy filed, some tax debts can be discharged.
Each of these IRS tax settlement options has its own requirements and processes. It's important to consult with a tax professional to understand which option is the best fit for your tax situation.