Offer in Compromise in Santa Ana

An Offer in Compromise (OIC) is a powerful tool provided by the IRS that allows taxpayers to settle their tax liabilities for less than the full amount owed. For many individuals facing overwhelming tax debt, an Offer in Compromise can be a life-changing form of tax resolution.

On average, taxpayers who successfully negotiate an Offer in Compromise end up paying significantly less than the total amount owed. This option is particularly beneficial for those who are unable to pay their entire tax obligation or for whom doing so would create financial hardship.

Understanding Offer in Compromise

An Offer in Compromise enables you to resolve your tax debt with the IRS by proposing to pay a reduced amount. The IRS evaluates your offer based on specific criteria, including your ability to pay, income, expenses, and asset equity. If the IRS determines that the amount you offer represents the most they can expect to collect within a reasonable timeframe, they may accept your offer.

While the Offer in Compromise program can provide much-needed relief, it's essential to understand that it's not suitable for everyone. The IRS carefully evaluates each case to determine eligibility for the program. If you're considering an Offer in Compromise, it's crucial to consult with tax professionals who can assess your situation and help you determine if you qualify.

Qualifying for an Offer in Compromise

The IRS considers an Offer in Compromise under specific circumstances, including:

1. Doubt as to Liability: There is uncertainty about whether the IRS correctly calculated the amount you owe.
2. Doubt as to Collectibility: Your assets and income are less than the total amount of tax debt owed.
3. Effective Tax Administration: While the debt is accurate, paying it in full would result in undue financial hardship.

However, the IRS will not consider your offer if:

• You are in an active bankruptcy proceeding.
• You have outstanding federal tax returns.
• You have failed to make required estimated tax payments.
• You are self-employed with employees and have not made required federal tax deposits.

Additionally, the IRS will return any Offer in Compromise application that does not meet these criteria, along with any associated fees. It's crucial to ensure that all necessary tax filings are complete and up to date before submitting an Offer in Compromise.

Contact Tax Alliance for Assistance

For more information about Offer in Compromise in Santa Ana and to determine if you qualify for this program, contact Tax Alliance today. Our team of experienced tax professionals specializes in helping individuals navigate complex tax matters and find solutions to their tax debt challenges. Visit our website at TaxAlliance.com or call us at 800.987.3051 to learn more and take the first step toward resolving your tax debt today!

‍

‍