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IRS Offer in Compromise
Washington tax could save you thousands with an IRS Offer in Compromise
Many a times the tax payees are drown in tax debts and are unable to pay the taxes timely. To help out such people the IRS has introduced a new scheme known as the IRS Offer in Compromise. Though the tax collection process is one of the most complicated tasks in America, but the Internal Revenue Service, which is a body in The United State takes the responsibility of collecting tax from the residents of the United State. The tax payees in the United State of America are made to pay tax according to their income to various bodies. The municipal corporation, the township, country and the district of the United State of America collect the taxes.
The tax forms in United State are provided online by the IRS, which can be easily downloaded in the pdf format, which can be read using the adobe reader software. United State of America has one of the most complicated taxes filing procedure, and it may include tax deposition to four different levels of the United State government. This involves the US residents to pay tax to the local government of the United State, which may include the municipal corporation, the district, the township and the country.
The free tax-filing program is a step to reduce the obstacles and confusions faced by the taxpayers in filing up the tax returns. There are various online tax return filing sites, which electronically file the income tax. This has been made possible by the collaboration between the internal revenue services and the free file alliance, which is composed a group of members of private software companies. The IRS form, which is Internal revenue Service tax form, has taken measures to make the tax deposition procedure simple. The tax forms are made available free of cost by the internal revenue services tax.
The IRS Offer in Compromise is a tax scheme introduced by the Internal revenue Service Department, to help out people who are under tax debts and are not able to pay their taxes properly. In spite of so many facilities provided by the Internal revenue service department, functioning in the United State of America, there are many people who find it difficult to pay the taxes levied on them, and this offer has been introduced to help out such people.
Though this is a good scheme introduced by the IRS, but this offer should be taken use of by the tax payees and should be taken as only the last option. The IRS Offer in Compromise which is often abbreviated as the OIC, is one of the measure taken by the Internal revenue department to relieve the tax pressure off the people who are not financially well off and are not able to pay the taxes.
This offer introduced by the Internal revenue service is introduced to settle and resolve tax issues of the United State residents, who are under tax debts. The Internal Revenue Service department, by using the IRS offer in compromise policy has taken a step to resolve not more than one percentage of the total number of balance due accounts. The internal revenue service department has laid down certain guidelines and cases, which, if met, may allow the IRS to accept lesser tax from a tax payee.
It is very important to understand these conditions so as to be counted under the offer in compromise. These conditions can be stated as:
- The IRS may waive off some amount of the tax, under the IRS offer of compromise, if it feels that a person may never be able to pay the tax levied on him. If the IRS feels that a person is not capable of paying the tax levied on him, then it may accept only a part of the tax and waive off the remaining tax. This is also referred to as the collectibility Doubt.
- The IRS has also set another criterion to find out if a person can be considered for the offer in compromise. If the Internal revenue service department feels that paying the complete tax would make a tax payee to face hardships and economic problems, then the tax payee would have to pay only some part of the total tax levied on him.
- A person who is a tax payee in the United State of America pay be considered for the Offer, if there exists a doubt against the tax that has been assessed and levied. This is sometimes also referred to as the Liability Doubt.
The IRS offer of compromise is more of an agreement between the Internal revenue service department and the tax payee that intends to compromise and settle down the tax issues. The introduction of this offer allows the internal revenue service department to settle down the taxes at lesser cost than due, under certain specified conditions.