IRS Offer in Compromise
in Los Angeles CA
IRS Tax Settlement
An IRS Offer in Compromise in Los Angeles CA may help eligible taxpayers settle their tax debt for less. Find out whether you may qualify.
Check Below to Find Out If You Qualify for an Offer in Compromise
How Does an IRS Offer in Compromise in Los Angeles CA Work?
An Offer in Compromise gives certain taxpayers an opportunity to resolve eligible IRS tax liabilities for less than their outstanding balance. Rather than requiring full payment, the IRS evaluates the taxpayer’s financial situation to determine whether the proposed amount represents an acceptable resolution. Income, living expenses, property, and available resources may be considered.
Resolve Federal Tax Group can help you determine whether an IRS Offer in Compromise in Los Angeles CA may be worth exploring. Our team can explain eligibility requirements and guide you through the considerations involved in pursuing an IRS Offer in Compromise in Los Angeles CA.
Taxpayers Who May Need IRS Tax Resolution in Los Angeles CA
- Individuals struggling with substantial federal tax balances
- Those unable to maintain affordable monthly arrangements
- Taxpayers facing IRS collection measures
- Individuals dealing with IRS liens, levies, or garnishments
- People whose finances make full payment difficult
- Taxpayers looking for an opportunity to regain financial stability
Could You Qualify for an IRS Offer in Compromise in Los Angeles CA?
An Offer in Compromise is designed for certain taxpayers whose financial circumstances may make paying their full IRS balance difficult. The IRS examines the taxpayer’s financial resources, including income, living expenses, assets, and ability to make payments, before deciding whether a proposed settlement meets its requirements. California tax agencies may have their own settlement options.
Resolve Federal Tax Group reviews your tax and financial information to determine if an IRS Offer in Compromise in Los Angeles CA could be a potential solution. If appropriate, we can explain the eligibility criteria and assist with preparing an IRS Offer in Compromise in Los Angeles CA application.
Exploring an IRS Offer in Compromise in Los Angeles CA With Our Team
Our Enrolled Agents examine your tax debt and financial circumstances to assess whether an Offer in Compromise could be an option. We review earnings, property, expenses, and other financial information while explaining the IRS standards that apply. When appropriate, we help compile documentation and prepare the necessary application.
We also consider available California settlement programs when they may apply to your tax situation. Throughout the process, Resolve Federal Tax Group can help manage communication with tax authorities and explain what to expect from an IRS Offer in Compromise in Los Angeles CA. Our goal is to help you determine whether an IRS Offer in Compromise in Los Angeles CA fits your circumstances.
How We Pursue an Offer in Compromise for Los Angeles Taxpayers
1
Assess Your Financial Position
We evaluate your financial circumstances and IRS debt to determine whether an OIC could be a viable resolution strategy and estimate an appropriate offer.
2
Prepare the Required Paperwork
We gather supporting documentation, prepare the financial information, and assemble the application for submission to the IRS.
3
Work With the IRS During Review
Our team manages IRS correspondence, answers follow-up questions, and submits additional documentation when requested.
4
Support Your Ongoing Compliance
After acceptance, we help you understand the agreement's terms and the requirements necessary to keep the settlement in good standing.
Addressing Common Offer in Compromise Concerns
Tax Debt You Cannot Afford
For qualifying taxpayers, an OIC can potentially resolve eligible IRS debt for an amount that better reflects their ability to pay.
Challenges With an OIC Submission
A complete application supported by accurate financial documentation can help address IRS requirements. We can also discuss options when an offer is declined.
Active Collection Measures
An OIC may affect certain IRS collection actions while the proposal is being reviewed, depending on the circumstances and applicable IRS procedures.
Serious Financial Strain
Your income, expenses, assets, and other financial details can help demonstrate whether paying the entire tax liability would cause economic hardship.
Los Angeles CA Frequently Asked Questions About Tax Resolution
What makes an OIC different from an installment agreement?
An installment agreement generally provides additional time to pay an eligible tax liability. An OIC instead seeks to settle eligible debt for an agreed amount that may be less than the full balance.
Can an IRS Offer in Compromise in Los Angeles CA include several tax periods?
An IRS Offer in Compromise in Los Angeles CA can potentially address eligible liabilities from multiple tax periods, provided the debts meet the applicable IRS requirements and are properly identified in the offer.
What happens if my OIC application cannot be processed?
The IRS may return an application when it cannot be processed. In those circumstances, the IRS explains that the application fee is returned and an offer payment may be applied to the taxpayer's balance.
Does the IRS look at the taxpayer's ability to pay?
Yes. Ability to pay is one of the primary considerations used when the IRS evaluates an OIC. Income, expenses, and asset equity can all factor into the determination.
What are IRS national and local standards?
These standards are used in evaluating certain allowable living expenses. National Standards cover categories such as food and clothing, while Local Standards address areas such as housing and transportation.
Can an IRS Offer in Compromise in Los Angeles CA be considered when I own property?
Owning property does not automatically prevent someone from seeking an OIC. Asset equity can, however, be relevant to the IRS's assessment of reasonable collection potential.
What tax returns must be filed before an OIC can be considered?
Taxpayers generally must file all returns they are legally required to file before the IRS will consider an offer. Current-year estimated tax requirements must also be satisfied.
Can an OIC apply to business tax liabilities?
Yes. The IRS has OIC procedures for business taxpayers, including separate financial information requirements for businesses.
What happens to an existing installment agreement during OIC review?
The IRS states that taxpayers generally do not have to continue payments under an existing installment agreement while the OIC is being processed.
How long can an OIC remain under consideration?
The IRS states that an offer is automatically accepted if it does not make a determination within two years of the receipt date, excluding applicable appeal periods.
Does filing an OIC prevent every IRS collection action?
Not necessarily. The IRS generally suspends other collection activity while an offer is being evaluated, but specific exceptions and procedural rules apply.
What happens to tax refunds after an OIC is accepted?
The IRS generally keeps refunds resulting from overpayments through the date the offer is accepted. An exception applies to certain offers based solely on doubt as to liability.
What happens after an IRS Offer in Compromise in Los Angeles CA is accepted?
After an IRS Offer in Compromise in Los Angeles CA is accepted, the taxpayer must follow the agreement's payment and compliance requirements. Failure to satisfy the terms can result in default.
How long must I remain compliant after acceptance?
The IRS generally requires taxpayers to remain current with required filing and payment obligations for five years following acceptance, including applicable extensions.
What can Resolve Federal Tax Group do for Los Angeles taxpayers?
Resolve Federal Tax Group can explain the OIC process, review the circumstances surrounding your federal tax account, and help you understand whether an OIC should be considered alongside other IRS resolution options.
Ready to Get Started?
Contact us today for a free consultation and let us help you resolve your tax problems.