Filing taxes may seem routine until you are contacted by the IRS because you owe them money. You may have forgotten to report some income, or perhaps there was another issue. Whatever the case there is no way to come up with the amount you owe. It is time to get in touch with a professional to help you address this issue.
A chicago offers in compromise lawyer is the right person to get in touch with in order to get the issue with the IRS resolved properly. If you are considered a financially distressed taxpayer, you may be eligible for the Offers In Compromise program of payment to the IRS.
The lawyer can help you through the long process, which can last anywhere from six months to a year. The good news is that payments on back taxes are put on hold during the OIC negotiation process. However, you still need to pay any current taxes that come due during that time.
People who are working toward an OIC also need to realize that a deposit, typically in the amount of 20% of the proposed lump sum, needs to be submitted at the time the OIC is submitted. This means saving up some funds for the end of the process. Once the OIC is accepted, that lump sum can be paid over a period of as much as two years. This helps split the sum up to more manageable amounts over a period of time.
Because you have submitted an OIC offer, this also gives you a break. It extends the time the IRS has to collect the taxes by one year, meaning your deadline moves back. This and other important details can be best explained by a chicago offers in compromise lawyer, who also knows the type of offer that is most likely to be accepted, depending on the amount of back taxes you owe.
If you submit an OIC offer and it is accepted, it is conditional on the terms that you file taxes in a timely manner and also pay any taxes owed during the five years immediately following the OIC offer’s acceptance. If you fail to meet these criteria, the IRS may decide to go after you for the full amount of the previous taxes due, and they are able to do so because you did not meet the criteria that were associated with the OIC offer.
There are cases where the OIC is not the entire resolution to the issue. In those cases, the IRS will require you to sign an agreement to pay a percentage of your future income to alleviate the remainder of the debt you owe. This would not total more than the total amount you owe, but instead it would continue with required payments until that debt is paid in full. A chicago offers in compromise lawyer can help you prepare for a situation like this should it be a possibility for your case. They can also help you determine the best options to address a situation like that.
The best chicago offers in compromise lawyer will be educated, have multiple years of experience and be able to recount to you the different situations where their knowledge benefitted their client. They will be able to listen to your explanation of your case and perhaps give you immediate feedback on the way the case might go or areas to be concerned with at the current point in time. The right lawyer will take on your case with the confidence of experience and be able to give you an accurate expectation of the timeline for your case and the way it will most likely be resolved.