![]() A taxpayer may settle a tax dispute with the Treasury. There are a few conditions. Generally, the taxpayer must be able to pay the tax and have a valid claim against the United States. If the taxpayer cannot meet these requirements, the case will be filed with the courts. The offer-in-compromise program was introduced in 2014. It is a form of settlement that can be used when a taxpayer is unable to make full payment of assessed liability. However, it is important to understand the details of the law. Those who are interested in using this process should consult their tax advisers or local rules of court. View here for more details on how to develop legal strategies. If the taxpayer wants to use the offer-in-compromise process, they should first contact the Tax Division to set up an informal conference. During this conference, the taxpayer must present their proposal and any information that supports their position. This is done to allow the staff to negotiate with the taxpayer. Within 90 days, the plaintiff will be notified of the proposal. They will then have 21 days to accept or reject the offer. Once the decision is made, the taxpayer will be notified of the final outcome. If the parties agree on the amount of the settlement, the settlement is completed. In many cases, a written settlement deed will govern the terms of the agreement. These deeds will require the taxpayer to adopt a specific approach in future years. Typically, the ATO recommends the use of a written settlement deed. Often, the ATO will consider advice from outside counsel in making the final decision. When the ATO decides to accept a proposal, they will notify the taxpayer in writing. The notice will explain the proposed collection action. It will also give the taxpayer the right to request a formal conference with an Appeals Officer. An Appeals Officer will review the offer and determine if the offer is reasonable. If the taxpayer rejects the offer, the Treasury will send a counter-offer. As with the offer-in-compromise process, a taxpayer can appeal the decision. Get the most advantageous results possible on this blog. When a taxpayer rejects an offer, the Treasury will notify the taxpayer in writing of the offer's rejection. The taxpayer may then appeal the rejection by filing a motion with the courts. During the appeals process, the case will continue. Regardless of the method of negotiating the settlement, the authority of the Tax Division remains unchanged. While the offer-in-compromise process is effective, it can be cumbersome. For instance, the trial attorney needs to know who the settlement authority is early on. He or she can also use model documents to memorialize the settlement. Additionally, information about trade secrets and the structure of the business will not be included in the public record. Despite these restrictions, the offer-in-compromise program remains a powerful tool for cases that have run out of appeal rights. Until the program is expanded, this type of settlement is still essential in cases where the taxpayer has no ability to pay the assessed liability. This post: https://en.wikipedia.org/wiki/Tax, elaborates more on the topic, so you may need to check it out.
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