by Fresh Start Tax | Jun 22, 2020 | Tax Help
Offers in Compromise : I was a former IRS agent and teaching instructor with the Internal Revenue Service. I worked in the collection division and was a seasoned, experienced, and awarded revenue officer. I worked the Offer in Compromise Program.
I accepted and rejected Offer in Compromise. I know the system.
Not all revenue officers work the offer in compromise program because of certain skills, experience and expertise.
Only much more seasoned and experienced IRS agents works the offer in compromise program. As a teaching instructor I also taught others what to look for to accept or deny an offer in compromise.
The IRS Offer in Compromise
Get Your Offer ACCEPTED + Top Tips
1. There is an IRS pre-qualifier tool. Use It!
You can find the pre- qualifer tool on our website site or find it on the government website. Before you give your money to any company who claims they can settle your debt for pennies on the dollar, you best fill out the IRS pre-qualifier tool or call and experience firm to review your case to make sure you are in fact qualified.One call to us and you can find out within 5 minutes.
2. How long does it take for professional to let you know your qualified to have your OIC accepted?
An experienced tax professional can let you know within about a minute whether you are qualified to settle your tax debt. By the time the person reviews the last page they will almost instantaneously let you know where you stand.
3. What is the most important element of getting your offer in compromise accepted?
Your documented financial statement is the absolute key to getting your offer in compromise accepted. That is the tool that the Internal Revenue Service uses to accept or deny your offer in compromise. It takes a skilled tax professional to make sure it is completed with all the proper documentation.
4. What documentation will IRS need?
When you fill out the IRS financial statement, IRS will need complete documentation for any dollar number that is placed on the financial statement. IRS will also need at least six month worth of bank statements, pay stubs and anything relative to any number that is on that form.
That form must be completely documented. Everything must match up. IRS will be looking for inconsistencies on things that are not matching up on the financial statement and documentation.
As an example, does your tax return, much up to your cost of living, your bank statements, your tax return,and your bank statements. The Agents wil look closely at these types of things.
5. How does IRS know your telling the truth and my financial statement?
The Internal Revenue Service has many search engines to use to find out all about you. The Internal Revenue Service uses internal search engines as well as external searches to find out about you. IRS will use the Accuriant search engine as well as credit bureaus
On larger cases IRS or use much more due diligence than on smaller cases.
6. Is there a specific formula that IRS uses to accept the offer in compromise?
Absolutely, there is a very simple formula.
IRS wants the sum total of your assets and they want to know what the value of your income and expenses. You must understand this formula.
Let me explain.
IRS will look at all your assets and find out what the fair market value of those assets are. Real estate will be discounted by 20%. IRS will use that as a base amount to compute the asset part of what is needed for case settlement.
IRS will look at your income and expenses and make sure you fit within the national standards. As you complete the 433oic IRS will apply the national standards expenses against your income. If there is a surplus and as an example I will use $500, IRS will take that $500 and multiply it by the life of the statute.
IRS will add the fair market value of your assets plus the value of your income and add them together. That will be the base amount for the IRS to accept the offer in compromise.
7. What is another important factor for getting your offer in compromise accepted?
I cannot tell you how important timing is. It is best to make sure you’re not in the high season of income. It is best to file an offer in compromise when you are doing the worst.
As an example, if you are real estate salesman and you have just earned a $40,000 commission and you want to file for an offer in compromise you have jeopardized your offer because you’ve just made a large amount of money and that new income you received is going to jack up your average income for settlement.
Therefore, understanding where your income and expenses are will determine the best time to file the offer in compromise. The offer in compromise requires a great deal of planning on when the best time to file.
8. How long does an offer to compromise take to process?
You must relax.
Currently the offer in compromise takes about nine months to process.
You will first receive a letter that they have received your offer and then you must wait to the offer is assigned and sent to a particular offer specialist to work your case. It is best to make sure your offer in compromise is fully documented when sending so they don’t have to send it back because if they do you you may have to start the clock all over again.
9. Another very important factor to keep in mind.
Before you send in your offer, you must’ve filed all current tax returns. The first thing that IRS will do is pull up a summary of your case history and all tax returns must be filed or IRS will send the case back.
Also you must be current on withholding or estimate payments or IRS will immediately reject the offer in compromise because you are not current and up-to-date. Do not overlook this is a sure way to get your offer sent back to you.
10. Fun Fact: Accepted Offers in Compromise are a matter of Public Records!
The reason IRS is so picky about offers in compromise is because they are a matter of public record.
That’s right, for 18 months after your offer in compromise is accepted your file goes to one of six regional tax sites for public review. Don’t be too afraid this, last year only one person inspected the files, so don’t worry are safe.
The IRS Offer in Compromise, Get Your Offer ACCEPTED, Top Tips From A Former IRS OIC Specialist.
by Fresh Start Tax | Jun 21, 2020 | Tax Help
Determine Your Eligibility
1. You may apply for an EIN online if your principal business is located in the United States or U.S. Territories.
2. The person applying online must have a valid Taxpayer Identification Number (SSN, ITIN, EIN).
3. You are limited to one EIN per responsible party per day.
a .The “responsible party” is the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.
Step 2: Understand the Online Application
1. You must complete this application in one session, as you will not be able to save and return at a later time.
2.Your session will expire after 15 minutes of inactivity, and you will need to start over.
Step 3: Submit Your Application
1. After all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your EIN confirmation notice.
Employer Tax Responsibilities Explained (Publications 15, 15-A and 15B)
Publication 15 (PDF) provides information on employer tax responsibilities related to taxable wages, employment tax withholding and which tax returns must be filed. More complex issues are discussed in Publication 15-A (PDF) and tax treatment of many employee benefits can be found in Publication 15.
We recommend employers download these publications from IRS.gov. Copies can be requested online (search “Forms and Publications) or by calling 1-800-TAX-FORM.
Important
We cannot process your application online if the responsible party is an entity with an EIN previously obtained through the Internet.
Please use one of our other methods to apply. See How to Apply for an EIN. We apologize for any inconvenience this may cause you.
Purpose of an Employer Identification Number
Employer Identification Numbers are issued for the purpose of tax administration and are not intended for participation in any other activities (e.g., tax lien auction or sales, lotteries, etc.)
Exempt Organization Information
If you believe your organization qualifies for tax exempt status (whether or not you have a requirement to apply for a formal ruling), be sure your organization is formed legally before you apply for an EIN. Nearly all organizations exempt under IRC 501(a) are subject to automatic revocation of their tax-exempt status if they fail to file a required annual information return or notice for three consecutive years.
When you apply for an EIN, we presume you’re legally formed and the clock starts running on this three-year period.
Example:
Your organization applies for an EIN in November 2014 and chooses a December accounting period. Your first tax period would end on December 31, 2014, and your first return or notice (if your organization does not meet one of the few exceptions to the annual reporting requirement) would be due May 15, 2015.
You would be subject to automatic revocation of your exemption if you fail to file for the three periods that end December 31, 2016 (return/notice due May 15, 2017) or for any consecutive three-year period.
by Fresh Start Tax | Jun 20, 2020 | Tax Help
I was a former IRS agent and teaching instructor with the Internal Revenue Service. I worked in the collection division and was a seasoned, experienced, and awarded revenue officer.
I also work the offer in compromise program where I accepted and denied offers in compromise.
Not all revenue officers work the offer in compromise program because of certain skills, experience and expertise. More seasoned and experienced IRS agent works the offer in compromise program.
I also taught others what to look for to accept or deny an offer in compromise.
I’m laying out the top 10 tips on how to get your offer accepted and other information.
1. There is an IRS pre-qualifier tool.
You can find the pre- qualifer tool on our website site or find it on the government website. Before you give your money to any company who claims they can settle your debt for pennies on the dollar, you best fill out the IRS pre-qualifier tool or call and experience firm to review your case to make sure you are in fact qualified.
2. How long does it take for professional to let you know your qualified?
An experienced tax professional can let you know within about a minute whether you are qualified to settle your tax debt. By the time the person reviews the last page they will almost instantaneously let you know where you stand.
3. What is the most important element of getting your offer in compromise accepted?
Your documented financial statement is the absolute key to getting your offer in compromise accepted. That is the tool that the Internal Revenue Service uses to accept or deny your offer in compromise. It takes a skill tax professional to make sure it is completed with all the proper documentation.
4. What documentation will IRS need?
When you fill out the IRS financial statement, IRS will need complete documentation for any dollar number that is placed on the financial statement. IRS will also need at least six month worth of bank statements, pay stubs and anything relative to any number that is on that form. That form must be completely documented. Everything must match up. IRS will be looking for inconsistencies on things that are not matching up on the financial statement and documentation.
5. How does IRS know I’m telling the truth and my financial statement?
The Internal Revenue Service has many search engines to use to find out all about you. The Internal Revenue Service uses internal search engines as well as external searches to find out about you. IRS will use the Accuriant search engine as well as credit bureaus. On larger cases IRS or use much more due diligence than on smaller cases.
6. Is there a specific formula that IRS uses to accept the offer in compromise?
Absolutely, there is a very simple formula.
IRS wants the sum total of your assets and they want to know what the value of your income and expenses.
Let me explain.
IRS will look at all your assets and find out what the fair market value of those assets are. Real estate will be discounted by 20%. IRS will use that as a base amount to compute the asset part of what is needed for case settlement.
IRS will look at your income and expenses and make sure you fit within the national standards. As you complete the 433oic IRS will apply the national standards expenses against your income. If there is a surplus and as an example I will use $500, IRS will take that $500 and multiply it by the life of the statute.
IRS will add the fair market value of your assets plus the value of your income and add them together. That will be the base amount for the IRS to accept the offer in compromise.
7. What is another important factor for getting your offer in compromise accepted?
I cannot tell you how important timing is. It is best to make sure you’re not in the high season of income. It is best to file an offer in compromise when you are doing the worst.
As an example, if you are real estate salesman and you have just earned a $40,000 commission and you want to file for an offer in compromise you have jeopardized your offer because you’ve just made a large amount of money and that new income you received is going to jack up your average income for settlement.
Therefore, understanding where your income and expenses are will determine the best time to file the offer in compromise. The offer in compromise requires a great deal of planning on when the best time to file.
8. How long does an offer to compromise take to process?
Currently the offer in compromise takes about nine months to process. You will first receive a letter that they have received your offer and then you must wait to the offer is assigned and sent to a particular offer specialist to work your case. It is best to make sure your offer in compromise is fully documented when sending so they don’t have to send it back because if they do you you may have to start the clock all over again.
9. A very important factor to keep in mind.
Before you send in your offer, you must’ve filed all current tax returns. The first thing that IRS will do is pull up a summary of your case history and all tax returns must be filed or IRS will send the case back.
Also you must be current on withholding or estimate payments or IRS will immediately reject the offer in compromise because you are not current and up-to-date.
Do not overlook this is a sure way to get your offer sent back to you.
10. Accepted Offers in Compromise are a matter of Public Records
The reason IRS is so picky about offers in compromise is because they are a matter of public record.
That’s right, for 18 months after your offer in compromise is accepted your file goes to one of six regional tax sites for public review. Don’t be too afraid this, last year only one person inspected the files, so don’t worry are safe.
In closing, you need to know getting your offer in compromise accepted is an art.
If you need any help you can call me today.
Former OIC IRS, Agent Explains, HOW TO GET OFFER IN COMPROMISE ACCEPTED.
by Fresh Start Tax | Jun 20, 2020 | Tax Help
There are different options you have to settle or resolve your IRS Tax Debt. I am a Former IRS Agent and Teaching Instructor with the IRS. Since 1982, A plus Rated.
Do you Owe Back Tax Debt to the IRS?
Depending on your current financial circumstances there are different ways to take care of your IRS Tax debt.
There are generally 5 ways or programs that IRS has for resolving, settling or dealing with Back IRS Tax Debt.
1. By payment of the tax in full,
2. By monthly or installment payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (another way to your completely eliminate the tax debt).
You will need to pull and IRS tax transcript to find out when the debt expires, it is generally 10 years from the date of assessment.
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
The most important aspect of solving IRS tax debt cases is completely dependent on the individual or business financial statements, that is the 433a, 433f, and/ or the 433b.
You may find these on our website. Go to home page.
Your current documented financial statement determines all.
You must support your financial statement by documentation such as bank statements, pay stubs, copies all bills and expenses and other docs the IRS may request.
IRS only allows certain expenses that are considered necessary living expenses.
There are charts available on what IRS allows.You can also find them on our website.
Anything not on those charts are disallowed and this is what trips up most taxpayers. IRS sticks to a strict standard. The charts are called the IRS national standards.
All Tax Returns Must be Filed
All your tax returns will have to be filed before IRS will work and close and solve your case. We can file your back tax returns with or without records via tax reconstruction methods. As former IRS Agent we know exactly the approved process by the IRS.
We can file any and all back tax returns and settle your IRS tax debt all at the same time.
Different Options to handle Back Tax Debt
1. IRS Tax Hardships or Currently Not Collectible.
The Internal Revenue Service places 40% of their open collection inventory into a hardship or currently not collectible status. after IRS takes your current financial statement and applies the national standards they determine you do not have the money at this time make payments or full pay the tax liability. Your case will go into hardship or currently not collectible for a period of 2 to 3 years and after that the IRS will kick the case back out to the field for another review. Please be advised that your case will come back
2. IRS Payment agreements/Monthly installments payments plans.
The Internal Revenue Service places approximately 6.5 million cases into payment or installment agreements.
There are different ways to get placed into an installment agreement and it depends on whether you can pay the tax liability off within a given period of time or you need to make monthly payments because of your current financial statement. You need to be familiar with the programs offered by Internal Revenue Service to make sure you do not get put in a situation that will default.
3. The Offer in Compromise Program
As a former IRS agent I taught the OIC program IRS.I know the stem inside and out.
Last year the Internal Revenue Service receives 78,000 offers in compromise. IRS accepted 38% of those offers in compromise for a settlement of $9500. Do not be fooled by this $9500 figure that I throw out because it’s simply a national average and varies from case to case.
There is an IRS pre-qualifier tool that you can use yourself to figure out whether you are a qualified candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise.
It is possible for the IRS to spend over 20-40 hours working an offer in compromise.
IRS uses the Accuriant search engine, Google in a variety of other searches to check on assets and histories of taxpayers and businesses.
You want to make sure you are accurate and truthful on your financial statement.
The higher the dollar case the greater the due diligence by the IRS.
Many people ask why is this process not that simple.
The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
One base rule for the offer in compromise program:
Generally IRS is only concerned about your income and assets.
This includes your equity in your home, pension plans and IRA’s.You must give IRS the total equity in all your assets as a starting point.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
After a quick review of your current financial statement we will able to help and determine the best way to resolve your IRS problem.
We been in practice since 1982 and are A+ rated by the Better Business Bureau.
We have on staff tax attorneys, tax lawyers, CPA’s, former IRS agents, managers and teaching instructors.
by Fresh Start Tax | Jun 20, 2020 | Tax Help
We are a team of Christian Tax Professionals that offer full IRS Tax Services. Since 1982, A plus rated BBB. <><
Proverbs 12:15
The way of a fool is right in his own eyes, but a wise man listens to advice.
Proverbs 11:14
Where there is no guidance, a people falls, but in an abundance of counselors there is safety.
Proverbs 15:22
Without counsel plans fail, but with advisers they succeed.
We are a full service Christian tax firm.We handle anything from an IRS tax notice/letter, Tax bills, IRS Representation, IRS Settlements, IRS Tax Audits, IRS Appeals and even tax court. Our homepage features all our work and services we handle.
Do you Owe Back Tax Debt.
There are generally 5 ways or programs that IRS has for resolving, settling or dealing with Back IRS Tax Debt.
1. By payment in full,
2. By monthly or installment payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (another way to your completely eliminate the tax debt).You will need to pull and IRS tax transcript to find out when the debt expires, it is generally 10 years from the date of assessment.
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
The most important aspect of solving IRS tax debt cases is completely dependent on the individual or business financial statements, that is the 433a, 433f, and or the 433b.
You may find these on our website. Go to home page.
Your current documented financial statement determines all.
You must support your financial statement by documentation such as bank statements, pay stubs, copies all bills and expenses.
IRS only allows certain expenses that are considered necessary living expenses.
There are charts available on what IRS allows.You can also find them on our website.
Anything not on those charts are disallowed and this is what trips up most taxpayers. IRS sticks to a strict standard. The charts are called the IRS national standards.
All Tax Returns Must be Filed
All your tax returns will have to be filed before IRS will work and close and solve your case. We can file your back tax returns with or without records via tax reconstruction methods. As former IRS Agent we know exactly the approved process by the IRS.
We can file any and all back tax returns and settle your IRS tax debt all at the same time.
Options to handle Back Tax Debt
1. IRS Tax Hardships or Currently Not Collectible.
The Internal Revenue Service places 40% of their open collection inventory into a hardship or currently not collectible status. after IRS takes your current financial statement and applies the national standards they determine you do not have the money at this time make payments or full pay the tax liability. Your case will go into hardship or currently not collectible for a period of 2 to 3 years and after that the IRS will kick the case back out to the field for another review. Please be advised that your case will come back
2. IRS Payment agreements/Monthly installments payments plans.
The Internal Revenue Service places approximately 6.5 million cases into payment or installment agreements.
There are different ways to get placed into an installment agreement and it depends on whether you can pay the tax liability off within a given period of time or you need to make monthly payments because of your current financial statement. You need to be familiar with the programs offered by Internal Revenue Service to make sure you do not get put in a situation that will default.
3. The Offer in Compromise Program
As a former IRS agent I taught the OIC program IRS.I know the stem inside and out.
Last year the Internal Revenue Service receives 78,000 offers in compromise. IRS accepted 38% of those offers in compromise for a settlement of $9500. Do not be fooled by this $9500 figure that I throw out because it’s simply a national average and varies from case to case.
There is an IRS pre-qualifier tool that you can use yourself to figure out whether you are a qualified candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise.
It is possible for the IRS to spend over 20-40 hours working an offer in compromise.
IRS uses the Accuriant search engine, Google in a variety of other searches to check on assets and histories of taxpayers and businesses.
You want to make sure you are accurate and truthful on your financial statement.
The higher the dollar case the greater the due diligence by the IRS.
Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
One base rule for the offer in compromise program:
Generally IRS is only concerned about your income and assets. This includes your equity in your home, pension plans and IRA’s.You must give IRS the total equity in all your assets as a starting point.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
After a quick review of your current financial statement we will able to help and determine the best way to resolve your IRS problem.
Call us today for free consultation and speak to a true Christian IRS tax professional.
We been in practice since 1982 and are A+ rated by the Better Business Bureau.
We have on staff tax attorneys, tax lawyers, CPA’s, former IRS agents, managers and teaching instructors.
Call us for free Christian tax consult today <><
Christian IRS Tax Debt Help, Full IRS Tax Service Company
