Offer in Compromise Specialists + Boca Raton Pompano, Deerfield Beach + Former IRS

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Michael Sullivan Fresh Start Tax Expert

We are Former IRS Agents who worked out of the South Florida IRS offices. We are offer in compromise specialists, Since 1982. We know the System.

 

I am a former IRS agent teaching instructor with the Internal Revenue Service. I both worked and taught the offer in compromise program at Internal Revenue Service.

We offer free consultations to make sure you qualify for the offer.

Approximately 40% of all offers are accepted by the Internal Revenue Service. I am a former IRS revenue officer who both worked and taught the offer in compromise program when employed at Internal Revenue Service. I know the complete system of IRS.

New updated info: Offer in Compromise applications received on or after March 27, 2017, will now be returned without consideration if taxpayers haven’t filed all required tax returns.

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

The OIC :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 than the full amount owed.

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

To qualify for a 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 won’t accept a OIC unless the amount offered by a taxpayer is equal to or greater than 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 an Offer

 

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 collectibility exists in any case where the taxpayer’s assets and income are less than 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 collectibility 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).

 

The Application Fee

In general, a taxpayer must submit a $186 application fee with the 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

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 $186 application fee.

The 20 percent payment is 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 $186 application fee.

This amount is 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 an OIC, the taxpayer may no longer designate offer payments to any tax liability specifically covered in the offer agreement.

 

Suspension of IRS Collection

 

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 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.

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 IRS 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 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.

 

Return of an Offer

In some cases, an OIC is returned to the taxpayer rather than 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.

Call us today for a free initial tax consultation and we will walk you through the process and make sure you are prequalified before filing. 954-492-0088

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Offer in Compromise Specialist + Miami, Ft.Lauderdale + Former Agents

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    We are Former IRS Agents who worked out of  the South Florida IRS offices. We are offer in compromise specialists, Since 1982. We know the System.  FREE CONSULTS!   We offer free consultations to make sure you qualify for the offer. 954-492-0088 Approximately 40% of all offers are accepted by the Internal Revenue Service. I am a former IRS revenue officer who both worked and taught the offer in compromise program when employed at Internal Revenue Service. I know the complete system of IRS. Do not spend your money until you have heard the truth from us.   New updated info: Offer in Compromise applications received on or after March 27, 2017, will now be returned without consideration if taxpayers haven’t filed all required tax returns. The application fee will be returned and any required initial payment submitted with the OIC will be applied to outstanding tax debt. This new policy doesn’t apply to current year tax returns if there is a valid extension on file.   The OIC : An offer in compromise (OIC) is an agreement … Continue reading

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Did You Under Report Your Income + Former IRS Can Help

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  Did you underestimate your income?   Need Help with  the IRS, call us today.   1-866-700-1040   IRS catches these errors on the underreporter system that matches up third party info.   Former IRS Agents who know the system, Since 1982. Highlights of the Data 2016  You are not alone! Lets look at the factss. • In Fiscal Year (FY) 2016, the IRS received almost 3.0 billion third- party information returns; 88.3 percent were filed electronically • The IRS closed almost 3.5 million cases under the Automated Underreporter Program, resulting in nearly $6.8 billion in additional assessments • The IRS closed 389,000 cases under its Automated Substitute for Return Program, resulting in $542.8 million in additional assessments • For Tax Year (TY) 2015 individual income tax returns processed during FY 2016, IRS sent more than 1.6 million notices to taxpayers for 2.1 million math errors identified on their returns • For TY 2015, math errors associated with calculation of income or other taxes made up 36.2 percent of total math errors. For TY 2014 and prior-year returns processed in FY … Continue reading

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New Updates of the IRS Offer in Compromise to Reduce Tax Debt + Use Former IRS Agents

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  USE Former IRS Agents Important Notice: Offer in Compromise applications received on or after March 27, 2017, will now be returned without consideration if taxpayers haven’t filed all required tax returns.   The application fee will be returned and any required initial payment submitted with the OIC will be applied to outstanding tax debt. This new policy doesn’t apply to current year tax returns if there is a valid extension on file. 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 than the full amount owed. Taxpayers who can fully pay the liabilities through an installment agreement or other means, won’t qualify for an OIC in most cases.   To qualify 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 won’t accept an OIC unless the amount … Continue reading

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IRS Payroll Tax Problems + Former Agents Can Resolve + MIAMI, DADE COUNTY

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  We have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the South Florida Internal Revenue Service.   I am a former IRS Agent and teaching instructor of the Offer Program when formerly employed at the IRS. We know all the systems, settlement formulas and all the methodology to get you affordable IRS tax debt relief including trust fund debt problem.   Call us today to get a free review AND ASSESSMENT OF YOUR CASE. We are experts in payroll tax cases.   Hear the truth from Former IRS Agents who have worked thousands of cases. Settlements can be in the form of hardships, payment plans and excepted settlements. Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on payroll taxes than any other taxes. The reason for this is very simple, this tax is money held in trust in not an actual tax. As a former IRS agent I can tell you that on a quarterly basis, federal … Continue reading

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Payroll IRS Tax Problems + Ft.Lauderdale + Former Agents

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We have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the South Florida Internal Revenue Service.  End your back payroll tax problem today.    I am a former IRS Agent and teaching instructor of the Offer Program when formerly employed at the IRS. We know all the systems, settlement formulas and all the methodology to get you affordable IRS tax debt relief including trust fund debt problem. Call us today to get a free review AND ASSESSMENT OF YOUR CASE.   Hear the truth from Former IRS Agents who have worked thousands of cases. Settlements can be in the form of hardships, payment plans and excepted settlements. Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on payroll taxes than any other taxes. The reason for this is very simple, this tax is money held in trust in not an actual tax. As a former IRS agent I can tell you that on a quarterly basis, federal tax deposit … Continue reading

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IRS Help + Ft.Lauderdale + Tax Representation by Former Agents

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    We are affordable tax firm that can resolve any IRS tax debt or tax filing problem. Local Experts in IRS Tax Debt Relief. Since 1982.  A plus Rated BBB.   We have been in the tax resolution industry for a long time and there are many companies that exist today and have no business in this tax resolution vertical. They charge large fees and give the work to back-end companies parties and the work never gets done. There are many of these scam artists are around so I would caution everybody to make sure you check out the company, the credentials and ask to speak to the person who will be working your case. While there are a plethora of many good tax firms, check the Better Business Bureau ratings and find out how long the company has existed and find out the complaint history of the company. Make sure when you are hiring a company for IRS tax debt relief there’s a professional person who has a license to practice before the Internal Revenue Service. You can … Continue reading

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Top Tips for Amending Your Tax Return

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  Tips to Keep in Mind When Amending Your Tax Return   Taxpayers can fix mistakes or omissions on their tax return by filing an amended tax return.   Those who need to amend will find the following tips helpful. 1. File using paper form. Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct the tax return. Taxpayers can’t file amended returns electronically. They can obtain the form on IRS.gov/forms at any time. Mail the Form 1040X to the address listed in the form’s instructions. 2. Amend to correct errors. File an amended tax return to correct errors or make changes to an original tax return. For example, taxpayers should amend to change their filing status, or to correct their income, deductions or credits. 3. Don’t amend for math errors, missing forms. Taxpayers generally don’t need to file an amended return to correct math errors on their original return. The IRS will automatically correct these items. In addition, taxpayers do not need to file an amended return if they forgot to attach tax forms, such as a Form … Continue reading

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Stats for Filing Season for 2017

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    The Internal Revenue Service has received 103.6 million 2016 individual income tax returns as of April 7 and expects millions more to be filed by the April 18 deadline. Special filing deadline rules apply to members of the military serving in combat zones, those living outside the U.S. and those living in declared disaster areas. The IRS also expects more than 13 million taxpayers to request a filing extension, giving them six additional months to complete and file their tax return. Who Needs to File? Not everyone is required to file a tax return. The requirement to file depends on a person’s income, filing status, age and whether they can be claimed as a dependent on someone else’s return. Anyone not sure whether they need to file a return should see Do I Need to File a Tax Return or refer to Publication 17, Your Federal Income Tax for Individuals, on IRS.gov. For an estimated one million taxpayers who did not file a 2013 tax return, April 18, 2017, is the last day to file to claim their … Continue reading

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Having IRS Tax Audit + Former Agents Get the Best Results + Ft.Lauderdale, Miami

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    Local Affordable Tax Audit Specialists + We are an affordable South Florida team of IRS tax audit experts, former IRS agents and managers, since 1982. A + Rated BBB   We know the IRS audit and appeals system inside and out. Not only were we former IRS agents we were teaching instructors and supervisors within the IRS audit system. We have over 65 years working the system. We were former teaching instructors with the LOCAL Internal Revenue Service. We worked both in audit and collection divisions. Since 1982, we have been representing people in the South Florida, Fort Lauderdale and Miami area. You want to hire IRS agents because of their knowledge of the working system of Internal Revenue Service. There a lot of methodologies to working IRS cases , all our experiences can collaborate into the very best tax result possible. Many profess to be experts in the area of IRS tax audits but unless you have handled thousands of cases and been involved in the system on a daily basis you do not know the complete … Continue reading

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