Federal TAX LIEN filing

For the tax year 2008, there were 768,168 federal tax liens that were filed on taxpayers in the United States. Most of those liens will only be released by full payment, the accepted OIC that is paid in full, or by statue expiration. There is more than a 10% jump in the filing of federal tax liens over the previous year.
A note to all of you in blog land, because an offer is accepted, does not release the federal tax lien. It must be paid in full.

New Ruling on Offshore Accounts.

The IRS Extends Deadline for Disclosing Hidden Offshore Accounts.
WASHINGTON ? The Internal Revenue Service today announced a one-time extension of the deadline for special voluntary disclosures by taxpayers with unreported income from hidden offshore accounts. These taxpayers now have until Oct. 15, 2009.
Under special provisions issued in March, taxpayers with these hidden accounts originally had until Sept. 23, 2009 to come forward. Those taxpayers who do not voluntarily disclose their hidden accounts by the new deadline face much harsher civil penalties, where applicable, and possible criminal prosecution.
IRS officials decided to extend this deadline after receiving repeated requests from tax practitioners and attorneys around the country following an influx of taxpayer requests. By extending the deadline for a short period of time, the IRS is providing relief for those taxpayers who had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it. The extension will allow tax preparers and attorneys the necessary time to interview and advise their backlog of taxpayers with these hidden accounts, and prepare the necessary paperwork to qualify for the special penalty provisions.
The IRS also announced that there will be no further extensions.

Why Are So Few Offers Accepted?

The IRS is a collection agency with more collection power than anyone in the world.
They are not Santa Claus.
They do what is best for the United States government.It is their job to collect the taxes to keep the government running. They do what is best for themselves first and rightly so. If the program was open for everything, it would be a free for all. Every taxpayer would file an offer with every tax return.
The IRS has set up strict boundaries on Offers In Compromise. One of the things the public may not know, all offers are open to public review.
So why are so few offers accepted? It is very hard to qualify for the federal program, it is that simple. It is a federal program.

Offers in Compromise Payment Options.

With all the talk about offers, here are the payment options taken from the irs. gov site. It lays out the clear talk about the program. It is not rewritten, it is straight  from the horse’s mouth.
Offer in Compromise Payment Options
OIC Payment Option
Terms 1, 2
$150 Application Fee Required?
Collection Information Statement (Form 433-A and/or Form 433-B) Required?
Calculating Your Offer Amount
Lump Sum Cash
Must pay 20% of the offered amount when Form 656 is submitted, with the balance to be paid in five or fewer installments from the notice of acceptance.
Yes, unless Form 656-A is completed or Doubt as to Liability OIC is submitted.
Yes, with the exception of Doubt as to Liability offers.
If the offer will be paid in 5 or fewer installments in 5 months or less: Use the realizable value of assets + the amount that could be collected over 48 months of payments or the time remaining on the ten-year statutory period for collection, whichever is less.
If the offer will be paid in 5 or fewer installments in more than 5 months and within 24 months :
Use the realizable value of assets + the amount that could be collected over 60 months of payments, or the time remaining on the ten -year statutory period for collection, whichever is less.
If the offer will be paid in 5 or fewer installments in more than 24 months: Use the realizable value of assets + the amount that could be collected over the time remaining on the statute.
Short Term Periodic Payment
Must include an initial payment with the offer and regular payments must continue while the offer is being investigated. Offer must be paid in full within 24 months from the date the IRS receives the offer.
Yes, unless Form 656-A is completed or Doubt as to Liability OIC is submitted.
Yes, with the exception of Doubt as to Liability offers.
Offer must include the realizable value of assets plus any amount that could be collected over 60 months of payments or the remaining number of months on the ten-year statutory period of collection, whichever is less.
Deferred Periodic Payment
Must include initial offer payment and regular payments must continue while the offer is being investigated. Offer must be paid in full in 25 or more months but within the time remaining on the statutory period for collection.
Yes, unless Form 656-A is completed or Doubt as to Liability OIC is submitted.
Yes, with the exception of Doubt as to Liability offers.
Offer must include the realizable value of assets plus the amount that could be collected through monthly payments during the remaining life of the ten-year statutory period for collection.