I am a former IRS agent and teaching instructor. I worked out of the local South Florida IRS offices and also out of the regional training centers where I taught the offer in compromise program.
Our firm is comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors that have a combined 60 years right here in the local South Florida area.
We are A+ rated by the Better Business Bureau and have been in practice since 1982.
If you owe monies to the Internal Revenue Service the only way to settle your IRS tax bill is through the use of an offer in compromise.
The offer in compromise has been around for a long time but it was not until the last three years did the Internal Revenue Service take settlements seriously.
When I worked at Internal Revenue Service and was a teaching instructor of the offer in compromise the first thought by Agents were sadly to find a way to reject the offer because of all the work it took to put the case through. The agents didn’t like them, the managers didn’t like them nor did District Counsel.
Because the Offer in Compromise is open the public inspection for one year and no agent wanted their work open to managerial and public scrutiny.
The offer in compromise takes an agent anywhere from 10 to 30 hours to work however a lot of that is changed due to the Internet and computer systems.
What taxpayers do not realize is with the couple clicks of the finger the IRS can check out your complete financial statement and also determine your credibility.
The Fresh Start Program of the IRS
With the Advent of the IRS fresh start initiative or fresh start program and the very fact that the government needs money the Internal Revenue Service is finally taking seriously the use of the offer in compromise. Many taxpayers are now settling their tax debts.
Offer in Compromise Tax Facts
1. Last year the Internal Revenue Service accepted 38% of all offers in compromise.Finally!
2. Last year there were 58,000 offers in compromise filed.
3. The average settlement was $.14 on a dollar.
Before any taxpayer uses the offer in compromise to settle their tax bill they should know that not everybody can settle their tax bill with the Internal Revenue Service.
Every taxpayer needs to know that they can be pre-qualified and pre-screened to find out whether they are a suitable candidate for the offer in compromise to settle their tax bill.
You can find that pre-qualifier tool on our website and find out if you are eligible before you give your money to any professional firm.
Simply go to our homepage for the top toolbar and click on IRS forms. Once on the forms page you will find a pre-qualifier tool
What is IRS looking for a Settle my Tax Bill ?
The only two things IRS is looking for on the offer in compromise is;
1. the liquidity value of your assets and,
2. your disposable monthly income.
Basically those two figures will comprise your settlement of your tax bill.
How the Settlement is determined
Internal Revenue Service will add up the liquidity value of your assets and find out what your disposal monthly income and add the two together. That is a starting point for your offer in compromise.
The big wow factor for an offer in compromise are the national standard expenses.
The IRS will only accept the national, regional and local standards for all your monthly expenses.
You must make sure you understand the national concept standards before applying for the offer in compromise.
You can find those standards on our website for each area in the United States.
Other factors play into this formula and you should speak directly to a true tax professional before the contemplation of your offer in compromise filing to settle your IRS taxable.
The IRS may accept an OIC based on three grounds. There is only 3 grounds for acceptance.
1. Acceptance is permitted if there is doubt as to liability. This means you never owned the tax.
This ground 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 simply means you want to settle your tax for pennies on a dollar.
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. This means because of an unusual circumstance because of age, health or other conditions IRS should take a real close look at your situation because it is most unusual.
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.
Call us today for free initial consultation or evaluation to find out whether you are qualified or suitable candidate to file an offer in compromise to settle your tax bill.
Miami, Ft.Lauderdale – Use the Offer in Compromise to Settle your Tax Bill – Former IRS
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