Our firm has seen a dramatic increase in both corporate and personal tax settlements offered through The Internal Revenue Services - Offer In Compromise (OIC) program. Most small business owners don't think the program is available to them.
My experience is that if you are current on your company payroll tax deposits, but find it hard to pay back past due taxes; this program may work for you. Its easy to apply for a settlement, but there are special considerations.
It works primarily for companies that have little or no assets and are operating at breakeven. Its based on the companies ability to pay plus the value of the company assets. A lien for the trust fund tax must be in place prior to acceptance of the offer into the program.
We've seen settlements as low as 20% on the corporate side, but remember the owners are still liable for the trust fund taxes. Therefore, an individual OIC typically is recommended as well. In 2015, we've seen those settlements average 35% of the total amount due.
My experience is that if you are current on your company payroll tax deposits, but find it hard to pay back past due taxes; this program may work for you. Its easy to apply for a settlement, but there are special considerations.
It works primarily for companies that have little or no assets and are operating at breakeven. Its based on the companies ability to pay plus the value of the company assets. A lien for the trust fund tax must be in place prior to acceptance of the offer into the program.
We've seen settlements as low as 20% on the corporate side, but remember the owners are still liable for the trust fund taxes. Therefore, an individual OIC typically is recommended as well. In 2015, we've seen those settlements average 35% of the total amount due.
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