Because an OIC extends the day wait from the assessment date by the time the offer is under consideration plus 30 days (11 USC § (a)(8)(A)(ii)(I)), it is beneficial to file an OIC after the days have run, if possible, so that the desired date for filing the bankruptcy petition is not further delayed. If you've been considering bankruptcy and you owe money to the IRS, it may be a good idea to talk with a bankruptcy attorney in your area who specializing is discharging tax debts. We're more than happy -- if we think bankruptcy is the best option for you -- to help you find a bankruptcy attorney in your area. 2. The government panelists said that in such a case, the OIC is returned without possibility of appeal. Brooks noted, however, that a taxpayer whose OIC is returned can request reconsideration within 30 days as a last resort. One advantage of an OIC is that certain items can be abated that cannot be discharged in bankruptcy.
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This penalty is usually for business owners but, it can also affect an employee, such as a supervisor, office manager, clerk, or controller who is the person responsible for completing the payroll obligations for the company. No matter who is charged with this penalty, it requires a competent advocate to provide taxpayer representation to protect income and personal property.
We can help you solve any trust fund penalty problem. Just because you owe a significant amount of money does not mean it has to be paid in one lump sum immediately. During taxpayer representation, we will work to secure installment agreements with the IRS that are favorable to our clients.
The IRS often places liens on business and personal properties and can even levy bank accounts and paychecks when a business or individual fails to make arrangements for tax payments. Protecting property and working to lift levies will take an advocate skilled in administrative processes of taxing authorities. Offer In Compromise If our clients do not have the ability pay the full amount of taxes owed then our we will work to reach an offer with the taxing agency to pay a reasonable portion while discharging the rest.
We consider your unique set of facts and circumstances: Ability to pay; Income; Expenses; and Asset equity. Before you consider filing a Chapter 13 here are some things you should know: You must file all required tax returns for tax periods ending within four years of your bankruptcy filing. During your bankruptcy, you must continue to file, or get an extension of time to file, all required returns.
During your bankruptcy case, you should pay all current taxes as they come due. This is why it's terribly important to make sure that the offers you are filing are reasonable and have a strong chance of being accepted.
A lot of people think they can file an offer in compromise. Fail to do this and your offer in compromise will be rejected, or will be accepted and put your on the hook to pay far too much. The taxes were assessed on April 15, and there was an unpaid balance.
By filing offers in compromise, the clock stops running. Because each offer in compromise was in process for around a year, the IRS still has until to collect on the debt. Now, when he files a realistic offer in compromise, the IRS will have a hard time taking it seriously, and the collection period will be extended to His offer in compromise collection information supports such a settlement agreement.
Should he file such an offer? Well, maybe not. The IRS has less than 7 months to collect on his debt. The downside to this strategy is that any tax lien filed against him can not be released or withdrawn. While the tax lien would be of no affect after the collection period expires, it still would appear as a debt on his credit report that went unpaid…essentially a write-off.
If you need any assistance with an Offer in Compromise, or any tax issue, contact us. We can help. Call or email info irsmedic. Call us: No matter where in the world you are.