Offer In Compromise

What is an Offer In Compromise?

An Offer In Compromise is a legal agreement between a taxpayer and the Australian Taxation Office (ATO) to settle a tax debt for less than the full amount owed. It is a formal proposal made by the taxpayer to the ATO to resolve the tax debt and avoid further legal action.

Key Aspects of an Offer In Compromise

• Financial Disclosure: The taxpayer must provide detailed financial information to the ATO to support the offer.
• Negotiation: The ATO will review the offer and may negotiate the terms before accepting or rejecting it.
• Acceptance: If the ATO accepts the offer, the taxpayer is required to fulfill the agreed-upon terms to settle the tax debt.

Benefits of an Offer In Compromise

Some of the benefits of pursuing an Offer In Compromise include:

• Settling tax debt for less than the full amount owed
• Avoiding legal action or enforcement measures by the ATO
• Providing a fresh start for taxpayers struggling with tax debt

Frequently Asked Questions

1. How do I qualify for an Offer In Compromise?

To qualify for an Offer In Compromise, you must demonstrate genuine financial hardship and an inability to pay the full tax debt. Seeking professional legal advice from Wright Street Lawyers can help determine your eligibility.

2. What factors does the ATO consider when evaluating an Offer In Compromise?

The ATO considers various factors, including your income, expenses, assets, liabilities, and future earning potential. Presenting a comprehensive offer supported by accurate financial information is crucial.

3. How can Wright Street Lawyers assist with an Offer In Compromise?

Wright Street Lawyers in Adelaide specialises in tax law and can provide client-focused guidance on preparing and submitting an Offer In Compromise to the ATO. Our experienced team will work diligently to help you achieve a favorable outcome.