Cannot pay the IRS Back Taxes – You have options to Settle your Tax Problem

Cannot pay the IRS Back Taxes ?  You have options to settle your tax problem

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If you cannot pay your back Internal Revenue Service tax bill you have different options on how to settle and close your case.

Fresh Start Tax LLC   1-866-700-1040 – Board Certified Tax Attorneys, CPA’s and Former IRS Agents, Managers and Instructors. Let us resolve your tax problem right now.

Let former IRS Agents and IRS Insiders get you the tax results you need. Let us use our 60 years of direct IRS tax experience work in your favor.

Taxpayers who owe the IRS back taxes have different options to close and settle back tax problems.

What to Expect!

Everything depends on a current financial statement and your current financial documented state.

The first thing that the IRS will require is a financial statement and that will be in the form of a 433A or a 433F, collections financial statement.This is the main key element where cases start and close. The preparation of this form is central to all negotiations.

There is much more than meets the eye when giving a financial statement to the IRS. IRS carefully makes sure the financial statements make sense. What does that look like?

IRS will make sure the bank statements, cost of living, the 433F or 433A and last 1040 filed all tie together? If it does not, expect the IRS to dig deep.

IRS will review bank statements to make sure they tie in all reported income. If you have more bank deposits than reported income, expect IRS to dig deeper.

IRS will always ask for documentation that verifies the financial statement. They will ask for the last pay stub, the last 3 months bank statements, copies of all monthly bills and any and all expenses claimed as necessary.

IRS may check the Google search engine to learn more about you and your business and interests. This is usually done on every case that reaches a field office.

IRS will fully review with completed documentation the option that best fits there profile and standards on how they will proceed to close your tax case.


Different tax options if you cannot pay your back taxes:

The IRS has usually 3 different remedies or solutions to settle taxes. Depending on your current financial statement IRS will place your case in hardship, have you make a payment to IRS or have your send in a Offer in Compromise to settle your complete tax bill.

You must be current on all your tax filing before IRS will expect and Offer package.

a. Hardship Cases are often call current not collectable.

1. Cases usually go into a 3 year suspended status because of an inability to pay.

 Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.

b. Payment Agreements, Installment Arrangements, Payment Plans or Streamline payments

1. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.

c. Offer in Compromise Tax Debt Settlement Program:  There are three types of Offers in Compromise

The IRS may accept an Offer in Compromise or a tax debt settlement based on three grounds:

1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.

2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:

(1) the examiner made a mistake interpreting the law,

(2) the examiner failed to consider the taxpayer’s evidence or

(3) the taxpayer has new evidence.

3. Effective Tax Administration/ Exceptional Circumstances ( Rare acceptance ) – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.

Get the tax relief you need on your back taxes.

Call Tax Attorney’s, CPA’s and Former IRS Agents.

We can also prepare all unfiled tax returns.

 

Cannot pay the IRS Back Taxes ?  You have options to settle your tax problem

 

IRS Fresh Start Initiative & Program – Get a Fresh Start with the Internal Revenue Service NOW!

 

IRS Fresh Start Initiative & Program – Get a Fresh Start with the Internal Revenue Service NOW!

 

Tax Resolution Service Company   A+ BBB Rating, Tax Resolution Firm, Former IRS  1-866-700-1040

Yes, the IRS is actually doing something very positive to help taxpayers that are experiencing tax problems.

I am a Former IRS Agent and Teaching Instructor with the Internal Revenue Service and it is still hard to believe.

There are several new initiatives the IRS now has the table that is changing the ways people are resolving back tax issues.

I have been working IRS cases for over 38 years and to date this is one of the biggest policy shifts I have ever seen. The flood gates are wide open for Offers in Compromise.
 IRS wants to now settle cases. Hard to believe but it is true.

 

IRS has reduced the age old firm guidelines to reasonable standards so that thousands of taxpayers/clients may now qualify to get their cases settled for cheap and their tax liens released.

 

In a nutshell, IRS has reduced the asset requirements and completely modified monthly standards of income and expense elements. 
As a result, clients that could never qualify for an OIC or tax debt settlements are now excellent  settlement candidates.

 

This IRS announcement focuses on the financial analysis used to determine which taxpayers qualify for an Offer in Compromise.

 

It is possible for some taxpayers to resolve their tax problems and back taxes in as little as two years compared to four or five years in the past.

 

The changes announced  include:

 

 

1. Revising the calculation for the taxpayer’s future income. This is a massive change.

2. Allowing taxpayers to repay their student loans. This could cut a settlement payment down some $30,000.

3. It allows taxpayers to pay state and local delinquent back taxes,

4. It also allow for the expanding the Allowable Living Expense allowance category and amount.

 

 The IRS finally recognizes that  taxpayers are still struggling to pay their bills and debt so the IRS has been working to put in place common-sense changes to the OIC program to more closely reflect real-world situations.

 

 

When the IRS usually determines and calculates a taxpayer’s reasonable collection potential, the IRS  will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years.This is the major change that will save the taxpayers thousands and thousands of dollars.

 

Key Point to Remember – All offers in compromise ( OIC ) must be fully paid within 24 months of the date the offer is accepted.

 

Other changes to the OIC program include narrowed parameters and clarification of when a dissipated asset will be included in the calculation of reasonable collection potential.

 

In addition, equity in income producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.

 

 

Notable Area – Allowable Living Expenses:

 

The Allowable Living Expense standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay. The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas.

These standards are used when evaluating installment agreement and offer in compromise requests.

The National Standard miscellaneous allowance has been expanded to include additional items.

 

 

Taxpayers can use the miscellaneous allowance for expenses such as:

 

 

1. credit card payments and

2. bank fees and charges.

Guidance has also been clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education. In addition, payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.This is another in a series of steps to help struggling taxpayers under the Fresh Start initiative.

 

 

Changes made to the Federal Tax Lien Policy

 

 

The IRS made changes to federal tax  lien policies in 2011 and expanded the threshold for small businesses to resolve tax issues through installment agreements. And, earlier this year, the IRS increased the threshold for a streamlined installment agreement allowing individual taxpayers to set up an installment agreement without providing a significant amount of financial information.

 

 

More changes, Penalty Relief.

The Internal Revenue Service has expanded its “Fresh Start” initiative to help struggling taxpayers who owe taxes. The following four tips explain the expanded relief for taxpayers.

Penalty relief Part of the initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax bill.

 

The Fresh Start Penalty Relief Initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes. Interest still applies on the 2011 taxes from April 17, 2012 until the tax is paid, but you won’t face failure-to-pay penalties if you pay your tax, interest and any other penalties in full by Oct. 15, 2012.

 

 

The penalty relief is available to two categories of taxpayers:

 

1. Wage earners who have been unemployed at least 30 consecutive days
during 2011 or in 2012 up to this year’s April 17 tax deadline.
2. Self-employed individuals who experienced a 25 percent or greater
reduction in business income in 2011 due to the economy.

The IRS could have expanded it policies on late filers but chose to ignore the largest penalty the IRS charges. I would have loved to see IRS loosen their belts here.

 

 

Qualifications for Penalty Relief

 

 

To qualify for this penalty relief, your adjusted gross income must not exceed $200,000 if married filing jointly or $100,000 if your filing status is single, married filing separately, head of household, or qualifying widower. Your 2011 balance due can not exceed $50,000.

Taxpayers who qualify need to complete a new Form 1127A to request the 2011 penalty relief. The new form is available on www.irs.gov or by calling 1-800-829-3676 (TAX FORM).

 

 

Installment agreements,part payment plans or installment agreements

 

 

An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date. The Fresh Start provisions give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay.

The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000. This is very huge.

This option requires limited financial information, meaning far less burden to the taxpayer. The maximum term for streamlined installment agreements has been raised to six years from the current five-year maximum.

If your debt is more than $50,000, you’ll still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F).

You  can  also pay your balance down to $50,000 or less to qualify for this payment option.

With an installment agreement, you’ll pay less in penalties, but interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, you must agree to monthly direct debit payments.

 

Call us today and we can answer all your questions. If you need help with any back tax issues , tax debt settlements, or unfiled tax returns we are the firm to turn to for tax relief.

Our team of Former IRS Agents, Tax Attorneys and CPA’s are some of the best in the business.

 

IRS Fresh Start Initiative & Program – Get a Fresh Start with the Internal Revenue Service NOW!

New Federal Tax Lien Rules can increase your credit score

New Tax Lien Rules Will Increase Your Credit Score!

Are you aware that the Notice of Federal Tax Lien can remain on your credit reports for as long as it takes you to pay it, plus an additional seven years?

When you full pay the tax liability that gave rise to the Notice of Federal Tax Lien, the Notice of Federal Tax Lien is “released” by the IRS. A Notice of Federal Tax Lien that has been “released” by the IRS stays on your credit report for an additional seven years from the date of “release.” A Notice of Federal Tax Lien that has been “withdrawn” by the IRS is immediately removed from your credit report.

The IRS will not “withdraw” a Notice of Federal Tax Lien that has been “released” due to a tax settlement through an “offer in compromise” or due to the expiration of the “collection statute.”

In the past, the IRS did not “withdraw” a Notice of Federal Lien that was “released” due to the full payment of the tax liability.

The general rule is that a Notice of Federal Tax Lien will be “released” upon satisfaction of the tax liability.

The general rules is that a Notice of Federal Tax Lien may be “withdrawn” for any one of the following reasons:

1. Where the filing of the Notice of Federal Tax Lien was premature or contrary to procedures,
2. Where the taxpayer makes a section 6159 installment agreement, and the agreement does not provide for filing the Notice of Federal Tax Lien,

3. Where the “withdrawal” facilitates collection, or

4. Where it would be in best interest of the taxpayer and the government.

If you have paid your tax liability in full, the IRS must “release” the Notice of Federal Tax Lien and it is done automatically by the IRS. Then it is up to you to request that the IRS “withdraw” the Notice of Federal Tax Lien.

Are you aware that when you have an unpaid tax liability and you enter into a “Direct Installment Agreement,” that you may request the withdrawal of the filed Notice of Federal Tax Lien?

When you enter into an installment agreement to satisfy the liability for which a Notice of Federal Tax Lien was imposed, you may request the “withdrawal” of the Notice of Federal Tax Lien.

To make your request to have the IRS “withdraw” the Notice of Federal Tax Lien, you must complete Form 1227 “Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien”. This form must be accurately completed, otherwise, your request will be denied. After your request has been approved, the IRS will issue Form 10916(C) “Withdrawal of Filed Notice of Federal Tax Lien.”

With our experienced personnel, we can review all of the facts and circumstances to make the most effective request on the Form 1227 to “withdraw” your Notice of Federal Tax Lien.

New Offer in Compromise Program – Get Tax Relief in Ft.Lauderdale, Miami, West Palm Beach

 

New Offer in Compromise Program –  Get tax relief in Ft.Lauderdale, Miami, West Palm Beach  954-492-0088

 

The local Miami, Ft.Lauderdale and West Palm Beach IRS offices are soon to be flooded with Offer in Compromises,Tax Debt Settlements

The IRS Agents have no idea what they are in for. The flood gates have been released.

A more flexible program is now in place and it is called the Fresh Start Program, I think they developed the idea after our name, Fresh Start Tax LLC.

By the way we are former IRS Agents  and Managers who know this program inside and out. We taught this program at the IRS.

With the new policy in place, thousands upon thousands of taxpayers will be looking to settle their IRS tax debt.

In the past IRS received about 56,000 offers a year with the acceptance rate about 30%

I would expect that number to triple and probably have a 50% acceptance rate.

Finally, pennies on a dollar is now possible for taxpayers .


In general, an Offer in Compromise is an legal agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.

An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or a through payment agreement.


The New IRS Policy number IR-2012-53 which was introduced on May 21, 2012.

 

The Internal Revenue Service  announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past. This remains to be seen depending on the case load. The normal time for an offer once in the system was between 6-12 if you were lucky.

This announcement focuses on the financial analysis used to determine which taxpayers qualify for an OIC. This announcement also enables some taxpayers to resolve their tax problems in as little as two years compared to four or five years in the past.

In certain circumstances, the changes announced today include:

1.Revising the calculation for the taxpayer’s future income.

2.
 Allowing taxpayers to repay their student loans.

3. 
Allowing taxpayers to pay state and local delinquent taxes.

4. 
Expanding the Allowable Living Expense allowance category and amount.

The IRS recognizes that many taxpayers are still struggling to pay their bills so the IRS Department of Treasury has been working to put in place common-sense changes to the OIC program to more closely reflect real-world situations.


Changes to the Offer in Compromise Program:

When the IRS calculates a taxpayer’s reasonable collection potential or RCP, it will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years.

All offers must be fully paid within 24 months of the date the offer is accepted. The Form 656-B, Offer in Compromise Booklet, and Form 656, Offer in Compromise, has been revised to reflect the changes.You can download the forms on our website.

Other changes to the program include narrowed parameters and clarification of when a dissipated asset will be included in the calculation of reasonable collection potential. In addition, equity in income producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.

 

Allowable Living Expenses allowed by the IRS for Offers in Compromise.


The Allowable Living Expense standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay.

The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas. These standards are used when evaluating installment agreement and offer in compromise requests.

The National Standard miscellaneous allowance has been expanded to include additional items.

Taxpayers can use the miscellaneous allowance for expenses such as:

1. credit card payments and

2. bank fees and charges which were never allowed in the past.

IRS has provided some guidance and clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education.

In addition, payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.

Should you have any questions call us today. Have experienced Former IRS Agents answer your questions.

 

New Offer in Compromise Program –  Get Tax Relief in Ft.Lauderdale, Miami, West Palm Beach

Release of Federal Tax Liens through Notice of Withdrawal and Improve your Credit Score

There has been recent changes to the Federal Tax Law due to the increasing public outcry on the burden the IRS has been putting on taxpayers through the Filing of the Federal Tax Liens.

As a result it is now possible to have your Federal Tax Lien completely withdrawn. By this process the credit companies will adjust your credit scores to the level as though the Federal Tax Lien was never filed.

Call us today for immediate tax representation 1-866-700-1040

If the IRS has filed a Federal Tax Lien and you have either paid off the tax liability or have gone on direct deposit and met the lien withdrawal criteria fill out form 11227

The process of Release or Removal of Federal Tax Liens:

IRS has increased  the lien filing threshold.

The Internal Revenue Service Fresh Start Program changes increase the IRS lien filing threshold from $5,000 to $10,000.

Federal Tax Liens may still be filed on amounts less than $10,000 when circumstances warrant.If the IRS feels that the collection of the tax is in jeopardy or the assets will be moved the IRS can proceed to filed the Federal Tax Lien

Requesting a federal lien withdrawal after the lien has been released:

The IRS may now  because of the Fresh Start Program issue a withdrawal of a  Notice of Federal Tax Lien after the lien has been released.

If you wish to have the Notice of Federal Tax Lien withdrawn, a taxpayer must request the withdrawal in writing.

  •  Taxpayers should use IRS  Form 12277, Application for Withdrawal, (PDF form available ). In item 8, Reason for requesting withdrawal, check box hat is applicable to your case.

Eligibility requirements are as follows:

1. Your tax liability has been satisfied and your lien has been released
2. You are in compliance for the past three years in filing:
3. All individual and business returns have been filed
4. All information returns have been filed
5. You are current on your estimated tax payments and federal tax deposits, as applicable.

Federal Tax Lien withdrawal may also occur when after entering into a Direct Debit installment agreement.

If you are a qualifying taxpayer and meet the eligibility requirements, you may have your lien withdrawn after entering into a Direct Debit installment agreement.

Your request for lien withdrawal must be in writing. Please use Form 12277, Application for Withdrawal (PDF). In item 8, “Reason for requesting withdrawal,” check box b, the “entered into an installment agreement” provision.

Qualifying taxpayers are:

  • Individuals (Form 1040 tax)
  • Businesses with income tax liability only
  • Out of business entities with any type of tax debt

Eligibility Requirements are:

  • The current amount you owe must be $25,000 or less
  • If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting the lien withdrawal to be eligible
  • Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
  • You must be in full compliance with other filing and payment requirements
  • You must have made three consecutive direct debit payments
  • You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien
  • You cannot have defaulted on your current, or any previous, direct debit installment agreement.

Good News on this change that will effect thousands of taxpayers. Your credit scores should rise as though the federal tax lien was never filed.

If you are currently on a regular installment agreement, you may convert to a Direct Debit Installment Agreement.

To convert a regular installment agreement to a Direct Debit Installment Agreement:

Call us today for more details. You will speak to either a Board Certified Tax Attorney, CPA or Former IRS Agents.