Costa Mesa Tax Attorney 800 TaxCosta Mesa Tax Attorney can help you with past IRS Debt. The IRS has been changing the way they collect overdue and back taxes. Rather than turning to collection proceedings they will sometimes accept an offer in compromise from the delinquent taxpayer in lieu of the entire owed amount.
By: 800 Tax 
Costa Mesa Tax Attorney An offer in compromise submitted by 800 Tax in Costa Mesa, Ca can be used to be a onetime payment or if it was able to be spread over time the interest rate would be not be a fixed rate and would vary according to the prime rate. This made figuring an early payoff or budgeting payments over time difficult, so the payment plan can now be set up with a fixed interest rate. If you should default on such a payment plan however, the IRS will then ask for the entire amount owed to be paid in one final payment or a judgment can be placed on you. Fixing the interest rate for payments over time also made it easier for the IRS to know the amount to demand if a default should occur or a judgment need to be placed. Should you find yourself in a situation where your monthly income does not cover your typical expenses, let alone a tax debt, then an offer in compromise may be an option for you; however they are not easily obtained. The IRS does not include some expenses you may feel as essential in their evaluation of your current financial state. Please allow Costa Mesa Tax Attorney's to help you to determine if you will qualify for such a program or if there is a better alternative to help ease your tax liability. You must be aware that while the IRS is reviewing your Offer in Compromise, you will still be accruing penalties and interest on your tax liability. Furthermore, you should be aware that you cannot apply for an OIC for a tax year or period that has not been assessed. By law, it is required that the IRS makes certain information from the offers they accept available to the public for inspection. These files are in designated IRS area offices.A Notice of Federal Tax Lien provides the IRS with the legal right to your property as security for payment of tax liability. This may be filed during the period that your offer is under investigation. However, this is not usually filed until the IRS has made a decision on the offer and they believe that the situation is that is under jeopardy. The OIC has an application fee of $150. When you submit an offer for consideration, you will need to select a payment option and make an initial payment with your application. How much you will need to pay will depend on the method of payment as well as the total amount of your offer. There are two payment options: Lump Sum Cash – You are required to pay 20% of the total amount with the offer and pay the remaining amount in five or fewer payments within 24 months of the date that your offer has been accepted. Periodic payment – You will need to make the first payment with the OIC and the remainder within 24 months as per your offer. The difference here is that you will need to keep making payments while your offer is being considered. If you do not do so, your offer will be rejected. The amount of the offer that the IRS will accept depends on the length of the payment option. If you pay within 5 months of the acceptance, the amount to be paid will be less. Costa Mesa Tax Attorney If you meet the criteria of Low Income Certification, you will be exempt from sending the initial payment or making subsequent payments, but you will still be required to choose a payment method.If your offer is rejected, any payments made with the offer or following will not be refunded. Instead, those payments will be added to your tax liability. If your offer is accepted, you will need to continue paying the taxes that come due in the future. If you fail to file your taxes or pay your returns in the five years following your acceptance, your offer will be defaulted and all your previous tax debts, including penalties and interests will be reinstated. Photo: https://www.prlog.org/ End
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