How Do You Spell Tax Relief? OIC, That's How

How Do You Spell Tax Relief? OIC, That's How
By Tony Schrementi

"What is that", you say? OIC stands for Offer in Compromise, and if you find yourself in the unenviable position of owing the Internal Revenue Service for back taxes that are still due and payable, then this may well be your best option.

Now the next question is, are you good candidate for an Offer in Compromise?

Whether you are an individual or a business, and you do not have the wherewithal, i.e. income, assets, or the means to pay your debt to the IRS right now or in the not too distant future, you could be a bona fide candidate for an Offer in Compromise.

What the program is designed to do is allow a taxpayer to offer an amount for settlement that is less than the undisputed total tax liability. The Internal Revenue Service will approve an OIC when what is offered is the most they can expect to collect in a reasonable time period.

Each case is evaluated on the unique facts and circumstances surrounding it. Strong consideration is given to factors such as:

1. Ability to pay.

2. The equity a taxpayer has in their assets.

3. Present and any possible future income.

4. Present and future expenses.

5. The likelihood of a change in the taxpayers circumstances for better or worse.

6. Whether the offer is in the best interests of the Government.

An Offer in Compromise is an agreement that has to be reached between the taxpayer and the IRS. Since it settles the tax liability for less than the full amount owed, without the right set of facts and circumstances an offer will not be accepted if they think the debt can be paid in full or through one of their installment payment agreements.

The Internal Revenue Service may accept an OIC based on the following three grounds:

1. Doubt of Collectibility - reasonable doubt that the taxpayer would ever be able to pay the full amount owed.

2. Doubt as to the Liability - there exists a reasonable doubt that the tax that's been assessed is correct.

3. Effective tax Administration - simply put the tax is correct and there may even be some potential to collect the full amount owed, but extenuating circumstances exist that would allow the IRS to consider an OIC. To qualify the applicant would have to demonstrate that the collection of the full amount would cause an undue hardship or would somehow be unfair and inequitable.

There you have it. Now you know what the Internal Revenue Service takes into consideration to qualify for an OIC. As you can see, it could be tricky and no place to go it alone, but with the proper representation, it could be just what the doctor ordered.

To find out if you meet the qualifications for an Offer in Compromise, you can get more information at http://www.besttaxrelief.info and maybe you'll be spelling tax relief... OIC, too!

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How Do You Spell Tax Relief? OIC, That's How

Tax Relief - Save Your Receipts

Tax Relief - Save Your Receipts
By Robert Tobias

Did you know that almost anything you purchase related to work or healthcare is tax deductible? If you did not already know this, listen up. Most of us who fall in a higher tax bracket do not look forward to the dreaded April fifteenth deadline when taxes are due.

If you owe money at the end of the year, there are special breaks you can take in order to decrease the amount you owe and help pad your pockets for the upcoming tax year.

Do you run or operate your own business? If so, save your receipts; gas, tolls, and even your monthly automobile payments can be deducted as a business expense come tax time. While the savings seem minimal, they are indeed savings and rest assured that the amount you owe will be lower should you end up owing anything.

Should you not end up owing taxes at the end of the year, you can add these deductions and get a bigger tax return. Who wouldn't want to have this nice bonus, something you can use to grow your business.

Do you donate to your local charities? Make notes of any donations you make through the year, as well as where you make those donations to. Do you donate clothes to Goodwill type stores? Make sure you get a receipt from them with an estimate of the amount of items you are donating. Come tax time you'll be happy you did.

Do you have medical expenses? The government wants to reimburse you for any health related things you have paid for out of pocket during the year. Save dental receipts, doctor receipts and hospital bills. Then when tax time rolls around, pull them out and start maximizing your deductions. The more prepared and organized you are throughout the year, the better chance you'll have with respect to saving money at the end.

Now that you are saving your receipts, where do you save them? A shoebox will do or any box or storage area where they are out of the way is fine. Keep in mind that you may not need to provide these receipts at the end of the year but it is vital to keep them close by should the IRS decide to audit you. Remember, you want to be truthful and keep good records of all of the deductions you claim should you need to prove it later.

Robert Tobias has been writing articles about personal finance for the past four years. He also enjoys writing about pet-related subjects, including why you should consider using an electric fence for dogs and the benefits of a PetSafe wireless fence.

Robert Tobias

Article Source: http://EzineArticles.com/?expert=Robert_Tobias

Tax Relief - Save Your Receipts