Tax Help for Unfiled, Back Tax Returns – Former IRS Gives you Tips

Fresh Start Tax
Tax Help for Unfiled, Back Tax Returns
Being a former IRS agent and teaching instructor I can tell you many taxpayers are frozen when attempting to file their back tax returns. Fear, panic, worry and a lack of money are the main problems.
Once taxpayers stop filing the first year the snowball effect starts. Most taxpayers just stop filing unless they are forced to file a tax return.
Most of this fear however is unfounded.
IRS simply wants all taxpayers to get back in the system and sooner or later the IRS will be knocking on your door asking you to file back tax returns.
Due to manpower they simply cannot catch up on all the non-filers but your time will come in its usually at one of the worst times possible. Your case could be sitting in the local office but due to unmanageable inventories field calls cannot be made because there are so many cases in the queue.
When I worked for Internal Revenue Service I had over 450 taxpayers and needless to say inventories are unmanageable.
With that said the IRS is more than happy to work with cooperating taxpayers who are ready to file back taxes and work out a tax settlement with them.
If you are stuck in that the dilemma of being frozen, it is time to be assertive and just file the back tax returns. Nothing will happen to you, believe I know, I was a former IRS agent for 10 years.
Tips for Filing Unfiled, Back Tax Returns.
1. Take the mind set you want to resolve this once and for all.
2. Gather what ever tax records you have and find a firm such as Fresh Start Tax LLC who can accurately prepare your unfiled, back tax returns.
3. If you have lost your tax records have that tax firm reconstruct your unfiled or back tax returns. This is a very simple process.
4.  If you contact the Internal Revenue Service they can help in the process by giving you all their income reports they have on file for the last seven years.
Do not be afraid to ask the IRS because at some point the Internal Revenue Service is going to be asking for your tax return. If you are afraid to do this call us today and we can handle all communication and you will never have to speak to the Internal Revenue Service.
5. Remember IRS knows you have not filed back tax returns, for you are not disclosing anything new to them.
6. By obtaining these income reports for the last seven years from the IRS you will receive all your W-2s, 1099s or other income reports that were issued to the Internal Revenue Service on your behalf.
By getting this information you will stay out of an IRS tax audit the llama.
7.  Send all the tax returns in at one time.
You’re not fooling anyone by putting them in separate envelopes or staggering them along the way.
8.  If you do not file your  back or unfiled tax returns know this, that IRS can for. IRS can and will file for your tax return under 6020 B of the Internal Revenue Code.
It allows the Internal Revenue Service to file your tax return and they will do you no favors in  filing unfiled back tax return . You will pay the highest amount allowed by law.
9. Do not be afraid to file because you owe money.
There are many different settlement strategies that you can use to settle your case with Internal Revenue Service.
IRS will require a current financial statement. After the IRS analysis they will either place your case into a currently not collectible file, ask you for a monthly or installment payment or let you know that you are a suitable candidate for an offer in compromise.
It is always best to let a professional firm handle tax negotiations and preparation of financial statements.
10. You can call us today and we can walk you through the process of not only filing your unfiled back tax returns but give you the necessary tax help you need to go ahead and settle your case.
By using former IRS agents and managers we know the process,  the systems and the settlement formulas to give you the best case scenario for your individual situation.
We are comprised of tax attorneys, certified public accountants, and former IRS agents. We’re a national tax firm that specializes in IRS tax relief help.
You can call us today for a free initial tax consultation.
We are A+ rated by the Better Business Bureau have been in practice since 1982.
We are the fast, friendly and affordable tax firm.
 
Tax Help for Unfiled, Back Tax Returns – Former IRS Gives you Tips
 
 
 
 

Settle Tax Debt through Offer in Compromise – Former IRS Settlement Agent – Jacksonville, Miami, Ft.Lauderdale,Tampa – Florida

Fresh Start Tax
If you want to settle your tax debt through the process of and all for compromise it only makes sense to use a former IRS settlement officer who knows the system, the protocols, and the settlement formulas and theories to get your case accepted by the Internal Revenue Service if you are a qualified candidate.
We are a Florida tax firm that has 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service right here in the state of Florida. We are A+ rated by the Better Business Bureau.
I  Michael Sullivan am a former IRS revenue officer in teaching instructor with the Internal Revenue Service.
I have worked the offer in compromise program at IRS, I also taught the program and accepted cases for settlement.
A couple years ago, the Internal Revenue Service decided to change it thinking about the settlement program and decided to change its strategy.
The old system produce no results for the IRS or the taxpayer. It was useless.
In the past, it was almost impossible to get offers in compromise through the system but the new IRS fresh start program or IRS fresh start initiative has now made it possible for taxpayers to settle old tax debt.
There are strict qualifications to meet the standards of the Internal Revenue Service.
To make sure taxpayers are not submitting offers in compromise and paying firms thousands of dollars to settle their case with the Internal Revenue Service, the IRS have a pre-qualifier tool to make sure that you are a qualified candidate to settle your tax debt.
You can find that IRS pre-qualifier tool right on our website. Simply go to the homepage and click on IRS forms. You’ll see it listed on a page of forms.
One of the advantages of the IRS settling your case is that the federal tax lien is released, your case closed and will be left alone by the IRS.
The Offer in Compromise Program
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If tax liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
To be eligible for an OIC
In order to be eligible for an OIC, the taxpayer must:
1. have filed all tax returns,
2. made all required estimated tax payments for the current year, and
3. made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).
The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
The IRS may accept an OIC based on only three grounds.
1. Acceptance is permitted if there is doubt as to liability.
This ground for acceptance is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
2. Acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3. Acceptance is permitted based on effective tax administration.These are rare but possible.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances. Such hardships are usually for medical health reasons.
Forms to Use for an Offer in Compromise(OIC)
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of:

  • Form 656 (PDF), Offer in Compromise, and
  • also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or
  •  Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.

 
A taxpayer submitting an OIC based on doubt as to liability must file:

  • a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).

 
Application Fee for the OIC
A taxpayer must submit a $150 application fee with the Form 656.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. The fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
Type of Payment Options to Settle Your Tax Debt through an Offer in Compromise
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A “lump sum offer”
Is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability.
The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted.
When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer.
Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer.
These amounts are also nonrefundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
Failure to met the terms of the accepted OIC/Tax Debt Settlement
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include:

  • a requirement that the taxpayer timely file all tax returns and
  • timely pay all taxes for 5 years from the date of acceptance of the OIC.

 
Very Important Note
When an Offer in Compromise is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties.
Any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Appeal a Rejected OIC/Tax Debt Settlement
One of the advantages of using Fresh Start Tax  LLC is that we have a former IRS appellate agent on staff who can help through this process.
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter. In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
Keep in mind you can always file another offer in compromise.
You can file as many offers in compromise is you want.
Many times once you understand the process it is much easier to refile an offer in compromise correcting previous mistakes.
Call us today and we will walk you through the process of settling your tax debt through the offering compromise.
We are IRS and State specialty firm that deals   with IRS problems, concerns and matters.
We are the affordable tax firm.
 

Offer in Compromise to Settle Your Tax Debt with Former IRS Settlement Agents – Affordable

Fresh Start Tax
Offer in Compromise  to Settle Your Tax Debt
I am a former IRS  revenue  officer in teaching instructor with the Internal Revenue Service. I have worked the offer in compromise program at IRS, I also taught the program and accepted cases for settlement.
If you are looking to settle your tax debt with the Internal Revenue Service the process of doing so is through the offer in compromise.
About two years ago, the Internal Revenue Service decided to change it thinking about the settlement program and decided to change its strategy.
In the past, it was almost impossible to get offers in compromise through the system but the new IRS fresh start program or  IRS fresh start initiative has now made it possible for taxpayers to settle old tax debt.
The offer in compromise is not for everybody.
There are strict qualifications to meet the standards of the Internal Revenue Service.
To make sure taxpayers are not submitting offers in compromise and paying firms thousands of dollars to settle their  case with the Internal Revenue Service, they have a pre-qualifier tool to make sure that you are a qualified candidate to settle your tax debt through an offer in compromise.
You can find that IRS pre-qualifier tool right on our website.
You can call us today and we will walk you through the process and the program to see if you are an eligible candidate. One of the advantages of the IRS settling your case is that the federal tax lien is released, your case closed and will be left alone by the IRS.
The Offer in Compromise
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If tax liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
To be Eligible for an OIC
In order to be eligible for an OIC, the taxpayer must:

  • have filed all tax returns,
  • made all required estimated tax payments for the current year, and
  • made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.

 
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).
The RCP is how the IRS measures the taxpayer’s ability to pay. The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
The IRS may accept an OIC based on three grounds.
1. Acceptance is permitted if there is doubt as to liability.
This ground for acceptance is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
2. Acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3. Acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Forms to Use for an Offer in Compromise
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of Form 656 (PDF), Offer in Compromise, and also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
 
Application Fee
A taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. The fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
 
Type of Payment Options to Settle Your Tax Debt
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A “lump sum offer”
Is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability.
The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted.
When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer.
Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer.
These amounts are also nonrefundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
The statutory time
The statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
Failure to met the terms
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include:

  • a requirement that the taxpayer timely file all tax returns and
  • timely pay all taxes for 5 years from the date of acceptance of the OIC.

 
Important Note
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties.
Any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
IRS Rejection of an OIC, you can appeal!
One of the advantages of using fresh start tax is that we have a former IRS appellate agent on staff who can help through this process.
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter. In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
Keep in mind you can always file another offer in compromise.
Call us today to receive a free tax consultation or assessment on any potential IRS tax settlement. You can speak directly what tax attorney, CPA, or former IRS agent, manager tax instructor.
Remember, the offer in compromises are not for everybody.
Call us today or walk through the pre-qualifier tool yourself to find out if you are ineligible candidate.
 
Offer in Compromise to Settle Your Tax Debt with Former IRS Settlement Agents
 

IRS & Passports – Settle Now with the IRS or Lose your Passport ?

Fresh Start Tax
Uncle Sam is ready to play hardball.
If you owe over $50,000, you better  contemplate settling your tax debt as soon as you can through the IRS offer in compromise and now is the best time.
You have a 38% chance the IRS will settle your case once and for all.
If you need to settle call us today and speak to former IRS agents who can settle your case if you qualify.
We can walk you through the IRS Pre-Qualifier tool to see if you are eligible.
Here’s a story to remind us that government processes can directly impact our travel plans:
A law buried in a proposed bill could prevent U.S. travelers who owe taxes from leaving the country.
According to a report that appeared in Forbes this past spring, Bill 1813 contains language that would allow the government to take passports away from travelers in debt to the Internal Revenue Service (IRS).
The bill is currently pending in the House of Representatives.
In March, the Senate passed Bill 1813, which was introduced by Senator Barbara Boxer. The bill is more than 1,000 pages long and mainly addresses the allocation of federal funds for transportation purposes.
But planted in the bill is an amendment that would permit the State Department to take away a person’s passport if he or she owes significant back taxes to the IRS.
Here’s what it says in section 7345 of the proposed legislation:
“If … any individual has a seriously delinquent tax debt in an amount in excess of $50,000, the Secretary shall transmit such certification to the Secretary of State for action with respect to denial, revocation, or limitation of a passport.”
According to the bill, your passport won’t be revoked if you pay your debt “in a timely manner” or if you need a passport for “emergency circumstances or for humanitarian reasons.”
Note that the passport revocation only applies to instances of “seriously delinquent” debt of more than $50,000.
This isn’t limited to criminal tax cases or situations where the government fears someone is fleeing a tax debt. The bill, 1813 still needs to be passed by the House and then signed by the House.
There is always the possibility a part pay agreement with the IRS may due the trick as well so you can keep your passport.
If you are in this position do not wait to the last minute because IRS will be flooded with requests to settle.
 
IRS & Passports – Settle Now with the IRS or Lose your Passport ?

Filing Back Tax Returns and Settling with the IRS – Miami, Ft.Lauderdale, Tampa, Jacksonville – All Florida

Fresh Start Tax
We are the Affordable Tax Firm
We are a Florida tax firm that specializes in filing back tax returns and settling with the Internal Revenue Service.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982) the state of Florida.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors.
We have over 206 years professional tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
Our former IRS agents work right here in the state of Florida.
Yes, you can file all your back tax returns and settle with the IRS all at one time.
Being Former IRS agents, managers and IRS tax instructors we know the systems and process and we worked right here in the State of Florida.
Millions of taxpayers have not filed back tax returns and there is an easy way to get back into the system and settle your case with the Internal Revenue Service.
Do not let fear control the situation, you can move through this process by using former IRS agents, managers and tax instructors who know the system to get you permanent tax relief.
 
How to File Back Tax Returns (if you have your tax records )
If you have all your back tax documents just go ahead and file all back tax returns at one time with the Internal Revenue Service. There is nothing wrong with putting them all in the same envelope in forwarding to the service center closest to your location. It is always best to use professional tax firm to make sure you are paying the lowest amount of tax allowed by law.
 
How the file back tax returns ( if you have no tax records)
If you do not have your back tax records or have scattered records you should know that the Internal Revenue Service keeps on their computer system the last seven years worth of income documents they have received from third parties.
These documents include W-2s, 1099s, and reports from other third parties showing the income you have received through them. Through the process of tax reconstruction, being former IRS agents we can reconstruct your back tax returns. We simply will average your past expenses and come up with a  approximation of your back tax returns.
You should know that the Internal Revenue Service can reconstruct your tax return based on your cost of living. The Internal Revenue Service agents are experts in reconstruction of tax returns.
As a general rule taxpayers spend with their rent or mortgage approximately 30% of their attributable income so it is easy to backup and a total monthly or yearly income.
This is a very simple process and we have internal forms that can help you through this.
 
IRS knows you have not filed your back tax returns
They just do not have the manpower to get around to your case right. But sooner or later you will get a knock on the door and it’s always at a really bad time in your life.
 
If you do not file your back tax return IRS can file for you under 6020B of the IRC

Many people are unaware that under 6020 B of the Internal Revenue Code, IRS can prepare your back tax returns. It is not in your best interest for this to happen.
IRS will give you no deductions, no expenses only figure out raw income with the standard deduction, you will pay the highest amount allowed by law. If IRS’ has already done this to you understand that you can file for audit reconsideration. Whatever you do, do not be bullied by the Internal Revenue Service be assertive and aggressive in fighting back.
 
The Process of Settlements with the IRS

In all cases in which monies are owed to the Internal Revenue Service, the IRS will want a current financial statement.
You will have to complete tax form 433-F, 433-A ( IRS financial statements )depending where your case is within the IRS system.
The Internal Revenue Service will then analyze your current financial statement and apply the national standardized expenses along with that and come up with a proposed way of settling your case.
IRS will want all financial statements documented and  will want copies of pay stubs, bank statements and all your monthly expenses. Everything needs to be verified by the Internal Revenue Service.
 
Settlement Forms with the IRS
 
IRS settlements can be in the form of:
1. Your case being currently not collectible, or economic tax hardship.
2. It could be the IRS will insist on a monthly installment or payment arrangement, or
3. The IRS will let you know that your suitable candidate for an offer in compromise or a tax debt settlement.
Before you attempt to settle your case through on offer in compromise you should use the pre- qualifier tool used by the Internal Revenue Service.
Do not pay any firm or Internet company to settle your case unless you know you are a qualified candidate to do so.
By calling us today we will give you a free evaluation and let you know whether it’s worth your time and ours to proceed
IRS accepts 38% of all offers and compromised filed.
IRS receives over 58,000 offers each and every year.
 
Settle with the IRS through the offer in compromise
 
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS consider your unique set of facts and circumstances. IRS will be looking at your :
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
Remember not everyone situation is the same different facts and circumstances such as health or medical conditions can alter the systems and settlement strategies.
The IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. Keep in mind the IRS collection statute is 10 years from the date of assessment.
If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
 
 
Are you eligible to settle with the IRS
Before IRS can consider your offer, you must be:

  • current with all filing and payment requirements.
  • you are not eligible if you are in an open bankruptcy proceeding.

 
Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal. You can find this pre-qualifier tool on our website.
 
Submit your offer in compromise to settle with the IRS
 
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF).
Your completed offer package must include:
1. Form 433-A (OIC) (individuals) or
2. 433-B (OIC) (businesses) and all required documentation as specified on the forms;
Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
$150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
 
Select a payment option to settle with the IRS
 
Your initial payment will vary based on your offer and the payment option you choose:
 

  • Lump Sum Cash:

Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.

  • Periodic Payment:

Submit your initial payment with your application.
You should continue to pay the remaining balance in monthly installments while the IRS considers your offer.
If accepted, continue to pay monthly until it is paid in full.
 
Low Income Certification guidelines
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the process of  IRS settlements
 
While your offer is being evaluated:
1. Your non-refundable payments and fees will be applied to the tax liability.
2. A Notice of Federal Tax Lien may be filed;
3. Other collection activities are suspended;
4. The legal assessment and collection period is extended;
5. Make all required payments associated with your offer;
6. You are not required to make payments on an existing installment agreement; and
7. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
 
Call us today and receive a no-cost evaluation and find out the process of filing your back tax returns and settling with the Internal Revenue Service.
We are a Florida tax firm specializing in all IRS, federal and state tax matters.
There are many excellent tax firms in the state of Florida so do your due diligence carefully.
 
Filing Back Tax Returns and Settling with the IRS – Miami, Ft.Lauderdale, Tampa, Jacksonville –  All Florida