Submitting a quote in a compromise is a great way to reduce IRS defaults, and you should be happy if your offer is successful. However, do you know that if you do not comply with your tax filing obligations, OIC will be revoked?
Sometimes I meet a client who accepted a compromise proposal at the IRS, but six months later, my client did not know his tax filing obligations with the IRS. Then the government terminates the OIC, and then my client is responsible for the total amount of tax arrears.
So what does it mean to stay in sync with the IRS? This means that two years after accepting the offer, the taxpayer submits all tax returns by the tax return deadline. If the return is not submitted before the deadline, an extension must be submitted. For example, Form 1040 will expire on April 15. If the taxpayer fails to submit 1040 by the 15th, he must submit an extension by the 15th. If the taxpayer submits an extension on April 17, the taxpayer will not be kept up to date.
If the taxpayer is self-employed and needs to pay the IRS a quarterly estimated tax amount, then the taxpayer must pay the amount, or he is not up to date. In any calendar year, the estimated quarterly tax amount will expire on April 15, June 15, September 15, and January 15. If one of them is omitted, the taxpayer will not be considered current.
Keeping pace with the Internal Revenue Service also means not only filing tax returns with tax returns, but also keeping up-to-date. For example, John submitted his 1040 form on April 1 and owed the government $4,000 for this tax return. John only has a $2,000 bank account, so he only issued a $2,000 check to the US Internal Revenue Service, and he still owes the government $2,000. If John does not pay $2,000 before April 15, he will be treated as a non-current tax liability and may be revoked by the US Internal Revenue Service.
It is equally important to pay attention to many details and important matters when preparing an offer in a compromise and to ensure that taxpayers stay up-to-date within two years.
When dealing with the US Internal Revenue Service, taxpayers should seek professional assistance from experienced professionals.
Orignal From: Keep in sync with compromise
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