Michael D. Sullivan + IRS Tax Debt Relief Expert

 

Fresh Start Tax

 

I am a IRS Tax Debt Expert. My Company, Fresh Start Tax LLC

 

I am a Former IRS  Agent and Teaching Instructor with the IRS.Call us/me to hear the truth about IRS Tax Debt Relief.

Fresh Start Tax LLC + IRS Tax Debt Relief Experts, Former IRS Agents & Managers Who Know the system, Since 1982

 

Tax Debt Relief: We have former IRS agents, managers, and supervisors, we know the IRS system inside and out. We have over 100 years of direct working experience with the IRS.

The first step to lower stress and lower debt is to contact former IRS agents who know the system.

If you owe $15,000 or more in taxes, or you have on Unfiled tax returns, you need to hear about the IRS programs available to you.

6.5 million Americans are falling in tax debt every year and the other countless million who have not filed their yearly tax returns.

If you are one of them, you understand about the stress and frustration of having to deal with the IRS.

The IRS can hold on to your refund, take a chunk of your pay, put a federal tax levy or garnishment on your bank account, seize and sell your property and revoke your passport.

IRS also can take 15% of your Social Security check, a benefit that’s off-limits to private creditors.

The Internal Revenue Service is the largest and most vicious tax collection agency in the world. But you do not have to worry about them we how to control the beast because of our years of experience.

If you know the system you will found the IRS actually working with you not against you.

There are tax relief programs available.

 

A simple call the to our office and speak directly to a tax professional can assure you that this process is not as nearly as complicated as you think.

Michael D. Sullivan IRS Tax Debt Expert

Why does the Internal Revenue Service want to settle your tax debt for pennies on the dollar?

1.IRS resources are constrained.

Five years of budget cuts by Congress has limited the IRS’ ability to enforce its own laws. The IRS budget has been reduced by $1.2 billion since 2010 despite having 12.8 million more tax returns to process.

Since 2010, the IRS has laid off 17,000 workers, which explains why, in 2015, the IRS only Audited 0.7% of all tax returns. Actually, we have a former IRS agent who recently retired and can go through a litany of other reasons why IRS would settle your tax debt.

Just know this is in the best interest of the government to do so.

Congress looks at IRS numbers at the end of every year and many times budgets of the Treasury department based on the collection statistics from the Internal Revenue Service.

2. You may have heard that the IRS only has 10 years to collect taxes.

These time restrictions put a lot of pressure on already overworked IRS agents.
Also it is called return on investment. The IRS wants to collect something on a debt that they may never be able to collect.

Hire a tax resolution firm that has former IRS training agents and who know the system.

You will get you the best deal possible whether it’s our firm or another firm always go with former IRS agents.

IRS tax relief programs help taxpayers by reducing the amount they owe, giving them more time to pay, or a combination of both. It’s a win-win for the IRS and taxpayers.

 

What type of tax relief examinations are there?

 

There are several tax relief programs taxpayers can apply for, but only three that offer debt forgiveness:

1. The Offer in Compromise program,
2. The Partial Pay installment Agreement program,
3. The Currently non-collectible, hardship.

 

Call us today to find out which program you qualify for.

 

Your current financial statement on form 433A or 433F will determine how IRS will closer settle your case.

 

The Offer in Compromise Program

 

An offer in compromise is a settlement where the IRS accepts less that the total debt amount in exchange for a lump sum or up to two years of monthly payments. As far as debt forgiveness goes, offers in compromise are usually the best deal available to taxpayers.

The problem is it’s not easy to meet IRS eligibility criteria. There is also a pre-qualifier program to make sure you are eligible for settlement .

I was a former IRS agent who taught the offer in compromise program to new agents. I am one of the nation’s leading Experts in the offer in compromise.

However, since 2010, the IRS has relaxed its standards through the fresh start initiative.

In 2015, the IRS accepted 40.3% of all offers in compromise for an average settlement of $9000 a case.

The acceptance rate is even higher for taxpayers who hire a tax relief company. It’s common for tax relief firms to maintain acceptance rates of over 85%.

 

Partial Pay or monthly payments installment Agreement

 

The Partial Pay installment Agreement does not get much attention and publicity, but it often has even better terms that offers in compromise.

40% of all open IRS cases are issue in payment agreement status but sadly over 50% of taxpayers cannot keep up their payments.

A Partial Pay installment Agreement is similar to an Offer in Compromise in that the IRS forgives part of your debt, but it has longer repayment terms: typically, 36 to 72 months.

Partial Pay installment Agreements are easier and faster to qualify for and you don’t have to provide as much financial information.

However if your debt is over $50,000 IRS will require a complete documented financial statements.

 

The Hardship Program, Currently Non collectible

 

The hardship program simply means you do not have the currently the means to deal with Internal Revenue Service.

After the Internal Revenue Service reviews your current financial statement and based on the national, local, and geographical standards, IRS will find that you are upside down in issue you in a currently non-collectible status.

What that means is that IRS puts a freeze on your case for two or three years and will look at the situation later.

Many times a taxpayer stays in this uncollectible status for several years and at some point in time the statute of limitation may run out, contact us for more details.

Please make sure all tax returns are filed and current with the IRS.

 

Michael D. Sullivan + IRS Tax Debt Relief Expert

Fresh Start Tax LLC + IRS Tax Debt Relief Experts

Fresh Start Tax

 

Fresh Start Tax LLC + IRS Tax Debt Relief Experts, Former IRS Agents & Managers Who Know the system, Since 1982

 

Tax Debt Relief: We have former IRS agents, managers, and supervisors, we know the IRS system inside and out. We have over 100 years of direct working experience with the IRS.

 

The first step to lower stress and lower debt is to contact former IRS agents who know the system.

If you owe $15,000 or more in taxes, or you have on Unfiled tax returns, you need to hear about the IRS programs available to you.

6.5 million Americans are falling in tax debt every year and the other countless million who have not filed their yearly tax returns.

If you are one of them, you understand about the stress and frustration of having to deal with the IRS.

The IRS can hold on to your refund, take a chunk of your pay, put a federal tax levy or garnishment on your bank account, seize and sell your property and revoke your passport.

IRS also can take 15% of your Social Security check, a benefit that’s off-limits to private creditors.

The Internal Revenue Service is the largest and most vicious tax collection agency in the world. But you do not have to worry about them we how to control the beast because of our years of experience.

If you know the system you will found the IRS actually working with you not against you.

There are tax relief programs available.

A simple call the to our office and speak directly to a tax professional can assure you that this process is not as nearly as complicated as you think.

 

Why does the Internal Revenue Service want to settle your tax debt for pennies on the dollar?

 

1.IRS resources are constrained.

Five years of budget cuts by Congress has limited the IRS’ ability to enforce its own laws. The IRS budget has been reduced by $1.2 billion since 2010 despite having 12.8 million more tax returns to process.

Since 2010, the IRS has laid off 17,000 workers, which explains why, in 2015, the IRS only Audited 0.7% of all tax returns. Actually, we have a former IRS agent who recently retired and can go through a litany of other reasons why IRS would settle your tax debt.

Just know this is in the best interest of the government to do so.

Congress looks at IRS numbers at the end of every year and many times budgets of the Treasury department based on the collection statistics from the Internal Revenue Service.

2. You may have heard that the IRS only has 10 years to collect taxes.

These time restrictions put a lot of pressure on already overworked IRS agents.
Also it is called return on investment. The IRS wants to collect something on a debt that they may never be able to collect.

 

Hire a tax resolution firm that has former IRS training agents and who know the system.

You will get you the best deal possible whether it’s our firm or another firm always go with former IRS agents.

IRS tax relief programs help taxpayers by reducing the amount they owe, giving them more time to pay, or a combination of both. It’s a win-win for the IRS and taxpayers.

What type of tax relief examinations are there?

 

There are several tax relief programs taxpayers can apply for, but only three that offer debt forgiveness:

1. The Offer in Compromise program,
2. The Partial Pay installment Agreement program,
3. The Currently non-collectible, hardship.

 

Call us today to find out which program you qualify for.

 

Your current financial statement on form 433A or 433F will determine how IRS will closer settle your case.

 

The Offer in Compromise Program

 

An offer in compromise is a settlement where the IRS accepts less that the total debt amount in exchange for a lump sum or up to two years of monthly payments. As far as debt forgiveness goes, offers in compromise are usually the best deal available to taxpayers.

The problem is it’s not easy to meet IRS eligibility criteria. There is also a pre-qualifier program to make sure you are eligible for settlement .

I was a former IRS agent who taught the offer in compromise program to new agents. I am one of the nation’s leading Experts in the offer in compromise.

However, since 2010, the IRS has relaxed its standards through the fresh start initiative.

In 2015, the IRS accepted 40.3% of all offers in compromise for an average settlement of $9000 a case.

The acceptance rate is even higher for taxpayers who hire a tax relief company. It’s common for tax relief firms to maintain acceptance rates of over 85%.

 

Partial Pay or monthly payments installment Agreement

The Partial Pay installment Agreement does not get much attention and publicity, but it often has even better terms that offers in compromise.

40% of all open IRS cases are issue in payment agreement status but sadly over 50% of taxpayers cannot keep up their payments.

A Partial Pay installment Agreement is similar to an Offer in Compromise in that the IRS forgives part of your debt, but it has longer repayment terms: typically, 36 to 72 months.

Partial Pay installment Agreements are easier and faster to qualify for and you don’t have to provide as much financial information.

However if your debt is over $50,000 IRS will require a complete documented financial statements.

 

The Hardship Program, Currently Non collectible

The hardship program simply means you do not have the currently the means to deal with Internal Revenue Service.

After the Internal Revenue Service reviews your current financial statement and based on the national, local, and geographical standards, IRS will find that you are upside down in issue you in a currently non-collectible status.

What that means is that IRS puts a freeze on your case for two or three years and will look at the situation later.

Many times a taxpayer stays in this uncollectible status for several years and at some point in time the statute of limitation may run out, contact us for more details.

 

Fresh Start Tax LLC + IRS Tax Debt Relief Experts

Fresh Start Tax + DIFferent Ways To Negotiate Back Tax Debt = Settlement Experts

 

Fresh Start Tax

 

DIFferent Ways To Negotiate Back Tax Debt + Former IRS + Fresh Start Tax LLC, Experts in Tax Debt Negotiation

 

I am a former IRS agent and teaching instructors with the Internal Revenue Service. I KNOW THE SYSTEM.

As a former employee of the IRS I taught the offer in compromise program. I know how to settle back taxes.

As a former instructors I am familiar with every detail of the program and will let you know if you can qualify to negotiate your debt.

I know every possible detail and how to negotiate an offer in compromise and make sure you qualify for the lowest possible amount to negotiate your tax debt.

FST has over 205 years of direct tax experience, 95 years of working for the IRS in the local, district and regional offices.

Being former IRS agent managers and supervisors in the Audit division gives us a unique advantage & can change the result of an IRS tax Audit.

We worked as Agents, Instructors and in Management. We know the settlement techniques and formulas to save your money.

Be worry free, call us today.

 

It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax Audit and give you the most experienced and successful IRS Tax Audit help.

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less that the full amount owed.

Taxpayers who can fully pay the liabilities through an installment agreement or other means, generally won’t qualify for a OIC in most cases.

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 won’t accept a OIC unless the amount offered by a taxpayer is equal to or greater that the reasonable collection potential (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.
Reasons for the Offer in compromise to settle your back tax debt

The IRS may accept a OIC based on three grounds:

 

• First, the IRS can accept a compromise if there’s doubt as to liability. A compromise meets this only when there’s a genuine dispute as to the existence or amount of the correct tax debt under the law.

• Second, the IRS can accept a compromise if there’s doubt that the amount owed is fully collectible. Doubt as to collectivity exists in any case where the taxpayer’s assets and income are less that the full amount of the tax liability.

• Third, the IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there’s 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 the OIC

When submitting a OIC based on doubt as to collectivity or effective tax administration, taxpayers must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed individuals, and/or Form 433-B (OIC), Collection Information Statement for Businesses.

A taxpayer submitting a 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).

Form 656 and referenced collection information statements are available in the Offer in Compromise Booklet, Form 656-B.pdf.
Application Fee

In general, a taxpayer must submit an application fee for the amount stated on Form 656. Don’t combine this fee with any other tax payments.

However, there are two exceptions to this requirement:

• First, no application fee is required if the OIC is based on doubt as to liability.

• Second, the fee isn’t’ 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 1 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 1 of Form 656 and check the certification box.
Payment Options to negotiate an Offer in Compromise

Lump Sum Cash Offer OIC

Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.

A “lump sum cash offer” is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum cash 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 application fee. The 20 percent payment is generally nonrefundable, meaning it won’t be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.

Instead, the 20 percent payment 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 payment.

Periodic Payment Offer OIC

An offer is called a “periodic payment offer” under the tax law if it’s 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 application fee.

This amount is generally nonrefundable, just like the 20 percent payment required for a lump sum cash 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.

Upon acceptance of a OIC, the taxpayer may no longer designate offer payments to any tax liability specifically covered in the offer agreement.

Ordinarily, 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.

 

IRS Offer Terms

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.

If the taxpayer doesn’t abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.

For doubt as to collectivity 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.

When a OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.

Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.

Right to OIC Appeals

If the IRS rejects a OIC, the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructors 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.

Return of an Offer

In some cases, a OIC is returned to the taxpayer rather that rejected, because the taxpayer didn’t submit necessary information, filed for bankruptcy, failed to include a required application fee or nonrefundable payment with the offer, hasn’t filed required tax returns, or hasn’t paid current tax liabilities at the time the IRS is considering the offer.

A returned offer is different from a rejection because there’s no right to appeal when the IRS returns the offer. However, once current, the offer may be submitted again.

*Note: OIC application received on or after March 27, 2017, are now returned without consideration if taxpayers haven’t filed all required tax returns.

The application fee is returned and any required initial payment submitted with the OIC is applied to outstand ing tax debt. This policy doesn’t apply to current year tax returns if there is a valid extension on file.

Fresh Start Tax + DIFferent Ways To Negotiate Back Tax Debt = Settlement Experts

DIFferent Ways To Negotiate Back Tax Debt + Former IRS

 

Fresh Start Tax

 

DIFferent Ways To Negotiate Back Tax Debt + Former IRS

 

I am a former IRS agent and teaching instructors with the Internal Revenue Service. I KNOW THE SYSTEM.

As a former employee of the IRS I taught the offer in compromise program. I know how to settle back taxes.

As a former instructors I am familiar with every detail of the program and will let you know if you can qualify to negotiate your debt.

I know every possible detail and how to negotiate an offer in compromise and make sure you qualify for the lowest possible amount to negotiate your tax debt.

FST has over 205 years of direct tax experience, 95 years of working for the IRS in the local, district and regional offices.

Being former IRS agent managers and supervisors in the Audit division gives us a unique advantage & can change the result of an IRS tax Audit.

We worked as Agents, Instructors and in Management. We know the settlement techniques and formulas to save your money.

Be worry free, call us today.

It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax Audit and give you the most experienced and successful IRS Tax Audit help.

IRS Audits less that 1% of all taxpayers nationwide.
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less that the full amount owed.

Taxpayers who can fully pay the liabilities through an installment agreement or other means, generally won’t qualify for a OIC in most cases.

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 won’t accept a OIC unless the amount offered by a taxpayer is equal to or greater that the reasonable collection potential (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.

Reasons for the Offer in compromise to settle your back tax debt

 

The IRS may accept a OIC based on three grounds:

• First, the IRS can accept a compromise if there’s doubt as to liability. A compromise meets this only when there’s a genuine dispute as to the existence or amount of the correct tax debt under the law.

• Second, the IRS can accept a compromise if there’s doubt that the amount owed is fully collectible. Doubt as to collectivity exists in any case where the taxpayer’s assets and income are less that the full amount of the tax liability.

• Third, the IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there’s 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 the OIC

When submitting a OIC based on doubt as to collectivity or effective tax administration, taxpayers must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed individuals, and/or Form 433-B (OIC), Collection Information Statement for Businesses.

A taxpayer submitting a 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).

Form 656 and referenced collection information statements are available in the Offer in Compromise Booklet, Form 656-B.pdf.
Application Fee

In general, a taxpayer must submit an application fee for the amount stated on Form 656. Don’t combine this fee with any other tax payments.

 

However, there are two exceptions to this requirement:

• First, no application fee is required if the OIC is based on doubt as to liability.

• Second, the fee isn’t 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 1 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 1 of Form 656 and check the certification box.
Payment Options to negotiate an Offer in Compromise

Lump Sum Cash Offer OIC

Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.

A “lump sum cash offer” is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum cash 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 application fee. The 20 percent payment is generally nonrefundable, meaning it won’t be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.

Instead, the 20 percent payment 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 payment.

 

Periodic Payment Offer OIC

 

An offer is called a “periodic payment offer” under the tax law if it’s 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 application fee.

This amount is generally nonrefundable, just like the 20 percent payment required for a lump sum cash 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.

Upon acceptance of a OIC, the taxpayer may no longer designate offer payments to any tax liability specifically covered in the offer agreement.

Ordinarily, 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.

 

Offer Terms

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.

If the taxpayer doesn’t abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.

For doubt as to collectivity 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.

When a OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.

Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.

 

Right to OIC Appeal

If the IRS rejects a OIC, the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructors 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.

 

Return of an Offer

In some cases, a OIC is returned to the taxpayer rather that rejected, because the taxpayer didn’t submit necessary information, filed for bankruptcy, failed to include a required application fee or nonrefundable payment with the offer, hasn’t filed required tax returns, or hasn’t paid current tax liabilities at the time the IRS is considering the offer.

A returned offer is different from a rejection because there’s no right to appeal when the IRS returns the offer. However, once current, the offer may be submitted again.

*Note: OIC application received on or after March 27, 2017, are now returned without consideration if taxpayers haven’t filed all required tax returns.

The application fee is returned and any required initial payment submitted with the OIC is applied to outstand ing tax debt. This policy doesn’t apply to current year tax returns if there is a valid extension on file.

 

DIFferent Ways To Negotiate Back Tax Debt + Former IRS

Negotiate, Settle IRS Tax Debt + IRS Offer in Compromise + Former Settlement Agent + Ft. Lauderdale, Miami, Boca Raton, Palm Beaches

Fresh Start Tax

 

 

Negotiate IRS Offer in Compromise, a local South Florida tax firm since 1982.

 

I am a former IRS agent and teaching instructors with the Internal Revenue Service. I KNOW THE SYSTEM.

As a former employee of the IRS I taught the offer in compromise program.

As a former instructors I am familiar with every detail of the program and will let you know if you can qualify to negotiate your debt.

I know every possible detail and how to negotiate an offer in compromise and make sure you qualify for the lowest possible amount to negotiate your tax debt.

FST has over 205 years of direct tax experience, 95 years of working for the IRS in the local, district and regional offices.

Being former IRS agent managers and supervisors in the Audit division gives us a unique advantage & can change the result of an IRS tax Audit.

We worked as Agents, Instructors and in Management. We know the settlement techniques and formulas to save your money.

Be worry free, call us today.

It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax Audit and give you the most experienced and successful IRS Tax Audit help.

IRS Audits less that 1% of all taxpayers nationwide.

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less that the full amount owed.

 

Taxpayers who can fully pay the liabilities through an installment agreement or other means, generally won’t qualify for a OIC in most cases.

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 won’t accept a OIC unless the amount offered by a taxpayer is equal to or greater that the reasonable collection potential (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.

Reasons for the Offer in compromise

The IRS may accept an OIC based on three grounds:

• First, the IRS can accept a compromise if there’s doubt as to liability. A compromise meets this only when there’s a genuine dispute as to the existence or amount of the correct tax debt under the law.

• Second, the IRS can accept a compromise if there’s doubt that the amount owed is fully collectible. Doubt as to collectivity exists in any case where the taxpayer’s assets and income are less that the full amount of the tax liability.

• Third, the IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there’s 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

When submitting a OIC based on doubt as to collectivity or effective tax administration, taxpayers must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed individuals, and/or Form 433-B (OIC), Collection Information Statement for Businesses.

A taxpayer submitting a 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). Form 656 and referenced collection information statements are available in the Offer in Compromise Booklet, Form 656-B.pdf.
Application Fee

In general, a taxpayer must submit an application fee for the amount stated on Form 656. Don’t combine this fee with any other tax payments.

However, there are two exceptions to this requirement:

• First, no application fee is required if the OIC is based on doubt as to liability.

• Second, the fee isn’t 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 1 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 1 of Form 656 and check the certification box.

Payment Options to negotiate an Offer in Compromise

 

Lump Sum Cash Offer

Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.

A “lump sum cash offer” is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum cash 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 application fee. The 20 percent payment is generally nonrefundable, meaning it won’t be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.

Instead, the 20 percent payment 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 payment.

Periodic Payment Offer

An offer is called a “periodic payment offer” under the tax law if it’s 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 application fee.

This amount is generally nonrefundable, just like the 20 percent payment required for a lump sum cash 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.

Upon acceptance of a OIC, the taxpayer may no longer designate offer payments to any tax liability specifically covered in the offer agreement.

Ordinarily, 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.

Offer Terms

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. If the taxpayer doesn’t abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.

For doubt as to collectivity 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.

When a OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.

Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.

Right to Appeal

If the IRS rejects a OIC, the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructors 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.

 

Return of an Offer

In some cases, an OIC is returned to the taxpayer rather that rejected, because the taxpayer didn’t submit necessary information, filed for bankruptcy, failed to include a required application fee or nonrefundable payment with the offer, hasn’t filed required tax returns, or hasn’t paid current tax liabilities at the time the IRS is considering the offer.

A returned offer is different from a rejection because there’s no right to appeal when the IRS returns the offer. However, once current, the offer may be submitted again.

*Note: OIC application received on or after March 27, 2017, are now returned without consideration if taxpayers haven’t filed all required tax returns.

The application fee is returned and any required initial payment submitted with the OIC is applied to outstand ing tax debt. This policy doesn’t apply to current year tax returns if there is a valid extension on file.

 

Negotiate, settle IRS Tax Debt + IRS Offer in Compromise + Former Settlement Agent + Ft. Lauderdale, Miami, Boca Raton, Palm Beaches