by Fresh Start Tax | Oct 12, 2016 | Tax Help
There are different Ways to Solve Old Tax Debt Problems if you owe back taxes, Since 1982, Former IRS Agents who Know the System. Get Free Advice.
We will walk through all the programs to see what programs you can qualify.Since 1982, Former IRS.
If you have balance due on back taxes and are looking to set up a payment agreement, file firm offer in compromise to settle your back tax debt or you need to file back tax returns call us today for a free initial tax consultation.
We have over 95 years of direct IRS work experience.
The Staff of FST, IRS Experience:
We have worked out of the local, district, and regional tax offices of the Internal Revenue Service. We are true IRS experts in the area of IRS tax settlement services.
The 5 ways or programs for IRS for Old Tax Debt
1. By Payment in full,
2. By Monthly Payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (this is how your completely eliminate the tax debt)
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
Upon your initial free tax consultation we will walk through the various programs and let you know the easiest way to resolve your old back tax debt.
The most important aspect of working tax debt cases is completely dependent on the individual or business financial statements.It is the most important factor.
Your current documented financial statement determines all. IRS uses a very simple formula to determine their settlement process.
It is all about your assets and your income and your current necessary living expenses. There is a very specific formula.
IRS only allows certain expenses that are considered necessary living expenses.
There are charts available on what IRS allows. Anything not on those charts are disallowed and this is what trips out most taxpayers.
A simple review of your current financial statement and we can let you know the different programs you may be eligible for.
You will need to complete form 433F or form 433A for us to make a current determination. IRS will only use their financial statements.
It is critically important to know that you cannot pay less taxes unless you qualify for the offer in compromise program.
IRS has a very specific formula that they use to compute the offer in compromise.
The only way you can pay less tax is through the offer in compromise program. There is also an IRS pre-qualifier form.
I have over 40 years in this industry and it is critical if you want to settle your tax debt for the lowest possible amount you should go to true tax professionals.
Important information
All your tax returns will have to be filed before IRS will work your offer in compromise.
If you need help with your tax preparation call us and we can have a staff of experts accountants and tax preparers complete all returns with or without records.
Also beware that many times the Internal Revenue Service want to make sure you are current in your withholding tax or your estimate tax payments are they will not close your work your case until you become fully compliant.
Beware of IRS tax settlement services companies.
We have been in this industry a long time there are many good companies in as many bad tax settlement service companies. For you to evaluate in IRS tax settlement service company you must ask to speak directly to the person who will be working your case.
Generally, when you call a tax services company, you are speaking to what is called a closer. That person is a salesman and will actually bill you and charge you for the services then your case gets passed down the line.
When you call fresh start tax, you will speak directly to the person who works your case and that person can give you a true evaluation on how and if IRS will accept an IRS tax settlement.
All IRS tax settlement service firms and companies are different.
Check out the BBB rating and make sure you have a true tax professional working your case.
I suggest you always hire someone who’s worked at the IRS because they are aware of the methodologies required to get your offer in compromise through the system.
Ways to Solve Old/Back IRS Taxes Debt or tax problems
As a general rule, you may apply for hardships, payment agreements or settle for an offer in compromise to settle your debt for pennies on the dollar.
We will review with you your financial statement and let you know what the lowest possible settlement IRS will accept. 40% of all persons that owe back taxes are placed into a hardship or are currently not collectible status and 6.5 million taxpayers enter into annual payment agreements.
With these programs you will not pay less tax. These programs are designed to keep IRS off your back.
The other way to pay less tax is for the ten-year statute of limitation to run out and your debt will be written off by the Internal Revenue Service.
If you want to file an offer in compromise I thought you’d like to know what the statistics are.
Last year over 78,000 offers in compromise/IRS tax debt settlement were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Approximately 40,000 taxpayers last year paid less tax.
At the current time there are 7500 cases in the offer queue. The average wait time is nine months. There are not enough IRS employees to work the current inventory.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement.
We will not file for an offer in compromise unless you are a true candidate for the program.
There is a pre qualifier tool to find out if you are a settlement candidate for income or business tax debt.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program. However this program is not for everybody.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
There are many firms that take your money and then let you know after the fact you are not qualified. you need to know before hand whether you have a fighting chance. Being a former IRS agent employee gives you a huge advantage of having the review your offer in compromise to settle your tax debt.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlements.
The Offer in Compromise + The New Fresh Start Tax Initiative
If you have any questions or issues about the offer in compromise program to settle or negotiate your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable 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. 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. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
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.
Below you will find out what you need to know about the offer in compromise program.
Beginning immediately FROM THE IRS :
The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. The internal revenue service will immediately reject your offer in compromise. Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
When IRS determines that they will settle with you, IRS will consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
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. Right now that is appox. 9 months
Make sure you are eligible for the offer in compromise to settle your back IRS tax debt.
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.
Submit your offer in compromise to settle your tax debt on back IRS taxes.
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 will include:
• Form 433-A (OIC) (individuals) or 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;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.
Select a payment option on an IRS offer settlement
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:(most common)
Submit your initial payment with your application. 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.
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 to settle your tax debt
While your offer to pay less taxes is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for free initial tax consultation and speak to a true IRS tax expert who will walk you through the process of how to negotiate with IRS over back taxes and see if you qualify to pay less taxes for an IRS tax settlement.
How To Take Care Of OLD TAX DEBT + Former IRS, Free Advice
by Fresh Start Tax | Oct 12, 2016 | Tax Help
Didn’t File Your Tax Returns, Former IRS Agent. Free Tax Advice, Since 1982
If you do not file your tax returns IRS have the option of three basic things.
IRS has the option to:
1. Enforce the tax laws by going after any taxpayer for criminal non-filing,
2. Send out an IRS Agent to investigate, or,
3. Prepare your tax return.
A. Failure to file tax returns is a crime punishable by up to one year in prison for each year a return is not filed and a fine of up to $25,000.
Under the appropriate statue of limitations, the IRS has up to six years to prosecute you for the crime and it normally does not pursue prosecution after the statute of limitations time period has expired. In some cases, Fraud has no statute.
26 U.S. CODE & 7203
Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution.
In the case of any person with respect to whom there is a failure to pay any estimated tax, this section shall not apply to such person with respect to such failure if there is no addition to tax under section 6654 or 6655 with respect to such failure. In the case of a willful violation of any provision of section 6050I, the first sentence of this section shall be applied by substituting “felony” for “misdemeanor” and “5 years” for “1 year”.
If you are ultimately contacted by a special agent of the IRS regarding failure to file an income tax return, you can be sure that you are the subject of a criminal investigation. you should never speak to a criminal agent without your tax attorney being present.
B. To pursue non-filers, the IRS will launch a Taxpayer Delinquency Investigation.
The IRS will contact the non-filer in one of four ways:
1. by phone,
2. letter,
3. formal notice or,
4. a visit from an IRS agent.
If the IRS cannot make contact with you in any of these ways, it will set a deadline for you to file a return through written notice and again have an agent attempt to visit you.
If you did file a return but did not pay any taxes due, you will not be charged with a crime but will be assessed penalties and interest with respect to the total amount due. Penalties differ based on several factors, but it is expensive not to file.
3. IRS can prepare your tax return under 6020 B of the Internal Revenue Code.
6020B IRC
(b) Execution of a tax return by Secretary
(1) Authority of Secretary to execute return.
If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.
(2) Status of returns – Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes.
Helpful tax tip.
For those of you who file correct inaccurate tax returns this tip will have no bearing on you whatsoever.
However some of you or my guess many of your clients need to file back tax returns.
The IRS computers continue to run searches every day for non-filers. The tax gap between those who have not filed to what should be collected and in the system right now is approximately $450 billion, so IRS is actively seeking non-filers.
At some point in time the Internal Revenue Service will catch up to non-filers.
The number one source that IRS uses to catch up the people are, W-2s, 1099 s and other associated documents that are produced by third parties in given to or reported to the Internal Revenue Service.
The Internal Revenue Service has a matching program which collects billions of dollars a year by matching up the W-2s, 1099s, and other associated documents with Social Security numbers.
At some point in time if the 1099’s, W-2 or other associated match reporting document does not match up with a given Social Security /Tax Return, IRS will start a civil or criminal investigation.
Keep in mind we can prepare tax returns with or without tax records.
Didn’t File a Tax Return + Free Tax Advice, Former IRS
by Fresh Start Tax | Oct 12, 2016 | Tax Help
What happens if you do not file your Tax Return, Former Christian IRS Agent.We can get you back in the system worry free.
If you need to file back tax returns contact us today and we will give you a free initial tax consultation and walk you through the process. We are a true Christian tax for the deals with unfiled returns and resolving tax debt at the same time.
If you do not file your tax returns IRS have the option of three basic things.
IRS has the option to:
1. Enforce the tax laws by going after any taxpayer for criminal non-filing,
2. Send out an IRS Agent to investigate, or,
3. Prepare your tax return.
I have been involved with all aspects of the above.
A. Failure to file tax returns is a crime punishable by up to one year in prison for each year a return is not filed and a fine of up to $25,000.
Under the appropriate statue of limitations, the IRS has up to six years to prosecute you for the crime and it normally does not pursue prosecution after the statute of limitations time period has expired. In some cases, Fraud has no statute.
26 U.S. CODE & 7203
Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution.
In the case of any person with respect to whom there is a failure to pay any estimated tax, this section shall not apply to such person with respect to such failure if there is no addition to tax under section 6654 or 6655 with respect to such failure. In the case of a willful violation of any provision of section 6050I, the first sentence of this section shall be applied by substituting “felony” for “misdemeanor” and “5 years” for “1 year”.
If you are ultimately contacted by a special agent of the IRS regarding failure to file an income tax return, you can be sure that you are the subject of a criminal investigation.
B. To pursue non-filers, the IRS will launch a Taxpayer Delinquency Investigation.
The IRS will contact the non-filer in one of four ways:
1. by phone,
2. letter,
3. formal notice or,
4. a visit from an IRS agent.
If the IRS cannot make contact with you in any of these ways, it will set a deadline for you to file a return through written notice and again have an agent attempt to visit you.
If you did file a return but did not pay any taxes due, you will not be charged with a crime but will be assessed penalties and interest with respect to the total amount due. Penalties differ based on several factors, but it is expensive not to file.
3. IRS can prepare your tax return under 6020 B of the Internal Revenue Code.
6020B IRC
(b) Execution of a tax return by Secretary
(1) Authority of Secretary to execute return.
If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.
(2) Status of returns – Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes.
Helpful tax tip.
For those of you who file correct inaccurate tax returns this tip will have no bearing on you whatsoever.
However some of you or my guess many of your clients need to file back tax returns.
The IRS computers continue to run searches every day for non-filers. The tax gap between those who have not filed to what should be collected and in the system right now is approximately $450 billion, so IRS is actively seeking non-filers.
At some point in time the Internal Revenue Service will catch up to non-filers.
The number one source that IRS uses to catch up the people are, W-2s, 1099 s and other associated documents that are produced by third parties in given to or reported to the Internal Revenue Service.
The Internal Revenue Service has a matching program which collects billions of dollars a year by matching up the W-2s, 1099s, and other associated documents with Social Security numbers.
At some point in time if the 1099’s, W-2 or other associated match reporting document does not match up with a given Social Security /Tax Return, IRS will start a civil or criminal investigation.
If you have any questions please feel free to call me or email me directly.
Keep in mind we can prepare tax returns with or without tax records.
Contact us today and speak to a true IRS tax experts. Your Christian tax firm employing true Christian values.
by Fresh Start Tax | Oct 11, 2016 | Tax Help
NEED TO FILE BACK TAX RETURNS,FORMER IRS AGENT KNOW HOW TO KEEP THIS SIMPLE AND COST EFFECTIVE, SINCE 1982
Lost Tax Records Never Filed File multiple years back years .” No Problem ” we can reconstruct all tax returns!!!
We are comprised of CPAs and former IRS Agents Managers and Instructors.
We have reconstructed thousands of tax returns since 1982.
There is a very specific process to reconstruct back tax returns.
We have over 95 years of direct work experience at the Internal Revenue Service.
LOST TAX RECORDS – The process of filing back or unfiled tax returns: (Lost of few tax records )
If you have unfiled tax returns, this process Fresh Start Tax LLC uses to get current with the IRS and get you immediate and permanent tax relief
1. We verbally review a year by year history of your income and expenses.
2. We review any records you may have.
3 We pull all IRS information that they have received from 3rd party sources that have been placed on the IRS computer system over the past 7 years.
4. If you have lost all your records we have easy and simple forms that can help you reconstruct your tax return.
5. We can prepare through years of experience a “reconstructed” tax return that the IRS will accept and process.
6. We review all returns for accuracy with the client and send them into the IRS.
7. We work out a settlement agreement with the IRS to permanent close your tax case.
These are the IRS problems we can handle:
Backs taxes;
Unfiled tax return or missing tax returns;
Non filer situations;
Missing tax records;
Resolution so no enforcement action is taken;
Amended tax returns;
We get your file closed with IRS so the tax problem is no longer a major stress.
by Fresh Start Tax | Oct 5, 2016 | Tax Help
Should you have questions, call us today.
IRM 5.1.19.3 (01-01-2006)
Case Actions That Can Suspend And/Or Extend A CSED
1. A variety of laws affect CSEDs.
A brief summary of some of the various case actions that can suspend and/or extend a CSED follows.
This IRM provides a brief overview of some of these case actions; it is not all inclusive. The following sections are included to highlight relevant issues.
Details pertaining to the specific subject matter should be further researched in the applicable IRM section, which in most cases will be cross-referenced.
2. If more than one case action suspends the running of the collection statute, and the suspensions overlap, the CSED is viewed as extended only once for the period the suspensions overlap.
Example:
Taxpayer Smith owes 1040 taxes for the period ending 12/31/1998. The tax assessment date is 06/01/1999 which established the original CSED as 06/01/2009.
Smith is in the Army Reserves, he gets called up for combat duty and enters the combat zone on 05/10/2004. He subsequently leaves the combat zone on 03/01/2005.
He submits an offer in compromise on 04/20/2005, it is rejected on 10/17/2005, and the rejection is not appealed.
Both case actions, entering the combat zone and submitting the offer in compromise, suspend and extend the CSED.
The combat zone duty suspends the CSED from 05/10/2004 through 03/01/2005 plus 180 days (through 08/28/2005).
Consideration of the offer in compromise suspends the CSED from 04/20/2005 through 10/17/2005 plus an additional 30 days for the rejection appeal period to 11/16/2005.
However, because these case actions overlap, the CSED will be suspended only from the date Smith enters the combat zone (TC 500 cc 56 on 05/10/2004) through the date the offer in compromise is rejected and the rejection appeal period ends (TC 481 on 11/16/2005).
In this case the overlapping of the two case actions, from 04/20/2005 to 08/28/2005, is considered in the CSED extension only once.
The CSED will be extended 555 days from the original CSED of 06/01/2009. The new CSED will be 12/08/2010.
5.1.19.3.1 (05-19-2016)
Bankruptcy
1. The CSED, in a case under the Bankruptcy Code, is suspended while the Service is prohibited by reason of the case from collecting, and for six months thereafter. For more information see IRC 6503(h)(2).
Thus, the CSED is generally suspended while the automatic stay imposed by the bankruptcy is in effect. Even if the suspension of the CSED under IRC 6503(h) no longer applies, the CSED still may be suspended when substantially all the debtor’s assets remain in the custody or control of the bankruptcy court under IRC 6503(b).
5.1.19.3.2 (05-19-2016)
Judgment/Litigation
1. Per IRC 6502(a), a court action brought against the taxpayer prior to the expiration of the collection statute extends the period to collect until the tax liability or judgment against the taxpayer is satisfied or becomes unenforceable.
1. In order for a suit to reduce the assessments to judgment and suspend the collection period, it must be filed prior to the CSED.The filing of a suit will suspend the collection statute during litigation. For more information see IRM 5.17.4.7, Suit to Reduce Assessments to Judgment.
2. When a judgment is entered in a case where assessments were reduced to judgment, request input of TC 550, definer code 04, using 20 years from the date the judgment was entered as the new CSED.
Reminder:
The TC 550 definer code 04 must be input before the TC 520 is reversed. This will prevent the CSED from expiring if it falls during the pendency of the litigation.
5.1.19.3.3 (05-13-2005)
Collection Due Process (CDP)
1. The CSED is suspended from the date the Service receives a timely filed request for a CDP hearing to the date the taxpayer withdraws their request for a CDP hearing or the date the determination from Appeals becomes final, including any court appeals.
2. If 90 days is not remaining on the statute of limitations when the determination becomes final, the statute of limitations is extended to equal 90 days. The collection statute is not extended for equivalency hearings.
5.1.19.3.4 (11-22-2013)
Offer In Compromise
1. For offers pending prior to January 1, 2000, the CSED extension was affected by Treasury Regulation § 301.7122–1(f) (1960).
Under this regulation the practice of the Service generally was to obtain from the taxpayer a waiver of the CSED for the period the offer in compromise was pending, while any installment of an accepted offer remained unpaid, and for one additional year thereafter.
2. For offers pending prior to January 1, 2000, a waiver of the CSED cannot extend the CSED beyond either December 31, 2002, or the original CSED, whichever is later, pursuant to section 3461(c)(2) of the IRS Restructuring and Reform Act of 1998 (RRA 98).
3. For offers pending on or made after December 31, 1999, suspensions of the running of the CSED in the offer in compromise context are governed by statute, specifically by IRC 6331(k)(1) and (3).
4. Under these provisions, the Service is prohibited from levying, and the CSED is suspended
A. While an offer is pending with the Service,
B. For 30 days immediately following rejection of the offer, and
C. For the period that a timely filed appeal of a rejection is being considered in Appeals.
5.
CSED extensions for the period of time “while any installment remains unpaid” and “for one additional year thereafter” are eliminated.
6. The Community Renewal Tax Relief Act of 2000, effective December 21, 2000, amended IRC 6331(k)(3) and eliminated the suspension of the CSED while offers (and installment agreements) were pending.
7. The Job Creation and Workers Assistance Act of 2002, effective March 9, 2002, amended IRC 6331(k)(3) and reinstated the CSED suspension with respect to both offers and installment agreements.
With respect to offers, the CSED is again suspended for:
A. The number of days the offer remains open from March 9, 2002,
B. The number of days the offer is pending,
C. Thirty days after rejection of the offer, and
D. The period that a timely filed appeal of a rejection is being considered in Appeals.
8.
9. Cases may be encountered where prior rules were in effect. For more information see IRM 5.8.10.7, Effect of Previous Offers on Collection Statute.
10. If only one party to a joint assessment files an OIC, then the CSED is suspended just for that person.
5.1.19.3.5 (10-16-2012)
Installment Agreements – Partial Payment Installment Agreements
With Form 900, Tax Collection Waiver
1. Form 900, Tax Collection Waiver, is only executed in connection with the granting a partial payment installment agreement and only in certain situations.
See IRM 5.14.2.1.3, Waiver Procedures for Partial Payment Installment Agreements. IRS policy dictates that a Form 900 be limited to no more than five years, plus up to one year to account for changes in the agreement.
Note:
Prior to July 2005, IRS policy permitted CSED extensions in conjunction with all installment agreements.
2. Effective March 9, 2002, the CSED is suspended during:
• The time the proposed installment agreement is pending,
• Thirty days following the rejection of a proposed installment agreement,
• Thirty days following termination of an installment agreement, and,
• Any appeal of the termination or rejection of the installment agreement.
Note:
This change is not retroactive. The suspension of the running of the collection statute is during the time that a levy is prohibited. The CSED is not suspended while an installment agreement is in effect.
5.1.19.3.6 (05-19-2016)
Relief From Joint And Several Liability On Joint Returns/Innocent Spouse
1. Collection by levy or a proceeding in court against a spouse is suspended for the requesting spouse when he or she makes a qualifying request under IRC 6015(b), and/or IRC 6015(c). Collection is suspended for claims filed under IRC 6015(f) if the liability was unpaid as of December 20, 2006, or the liability did not arise until after December 20, 2006. For more information see IRM 25.15.1.8, Statute of Limitations on Collection.
2. The collection period is suspended from the filing of the claim until the earlier of the date a waiver is filed, or until the expiration of the 90 day period for petitioning the Tax Court, or if a Tax Court petition is filed, when the Tax Court decision becomes final, plus, in each instance, 60 days.
3. If a request for relief is made in response to collection due process procedures, there is also suspension of collection activity and the collection period provided for by IRC 6330(e) for the period during which any administrative hearings, and appeals therein, regarding the levy are pending. The rules for suspension under IRC 6330 differ from IRC 6015. In general, the latest suspension of collection and the collection period should control, which may require analyzing the suspension under both IRC 6015 and IRC 6330 where relief from joint and several liability is requested as part of an IRC 6330 hearing.
4. If the requesting spouse signs a waiver of the restrictions on collection, the suspension of the period of limitations on collection against the requesting spouse will terminate 60 days after the waiver is filed with the Service, limiting the CSED extension to the period from when the claim was filed to the time the waiver was signed, plus 60 days.
5. A request for reconsideration is not a qualified request for relief for purposes of Treasury Regulation §1.6015-1(h)(5), and does not trigger the restrictions on collection pursuant to section 6015(e)(1)(B) or the suspension of the collection period of limitation under section 6015(e)(2).
5.1.19.3.7 (06-04-2009)
Taxpayer Living Outside the U.S.
1. The period of limitations on collection after assessment is suspended while the taxpayer is outside the United States if the absence is for a continuous period of at least six months per IRC 6503(c) .
2. To make certain that the Government has an opportunity to collect the tax after the taxpayer’s return, the period does not expire (where the taxpayer has been out of the country for six months or more) until six months after the taxpayer’s return to the country.
As the application of this provision can result in the CSED being suspended for a very long time, policies for the administration of this code section are now established.
by Fresh Start Tax | Oct 5, 2016 | Tax Help
There are different Ways to Solve Back IRS Problems if you owe back taxes, Since 1982, Former IRS Agents who Know the System. Get Free Advice.
We will walk through all the programs to see what programs you can qualify.
Since 1982, Former IRS.
We are an affordable professional tax firm that can offer you a free initial tax consultation and walk you through the process if you have a back balance due the Internal Revenue Service.
If you have balance due on back taxes and are looking to set up a payment agreement, file firm offer in compromise to settle your back tax debt or you need to file back tax returns call us today for a free initial tax consultation.
We have over 95 years of direct IRS work experience.
The Staff of FST, IRS Experience:
We have worked out of the local, district, and regional tax offices of the Internal Revenue Service. We are true IRS experts in the area of IRS tax settlement services.
How does IRS dispose of Tax Debt Cases?
The 5 ways or programs for IRS Tax Debt
1. By Payment in full,
2. By Monthly Payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (this is how your completely eliminate the tax debt)
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
Upon your initial free tax consultation we will walk through the various programs and let you know the easiest way to resolve your back tax debt.
The most important aspect of working tax debt cases is completely dependent on the individual or business financial statements.It is the most important factor.
Your current documented financial statement determines all.
IRS uses a very simple formula to determine their settlement process.
It is all about your assets and your income and your current necessary living expenses. There is a very specific formula.
IRS only allows certain expenses that are considered necessary living expenses.
There are charts available on what IRS allows. Anything not on those charts are disallowed and this is what trips out most taxpayers.
A simple review of your current financial statement and we can let you know the different programs you may be eligible for.
You will need to complete form 433F or form 433A for us to make a current determination. IRS will only use their financial statements.
It is critically important to know that you cannot pay less taxes unless you qualify for the offer in compromise program.
IRS has a very specific formula that they use to compute the offer in compromise.
The only way you can pay less tax is through the offer in compromise program. There is also an IRS pre-qualifier form.
I have over 40 years in this industry and it is critical if you want to settle your tax debt for the lowest possible amount you should go to true tax professionals.
Important information
All your tax returns will have to be filed before IRS will work your offer in compromise.
If you need help with your tax preparation call us and we can have a staff of experts accountants and tax preparers complete all returns with or without records.
Also beware that many times the Internal Revenue Service want to make sure you are current in your withholding tax or your estimate tax payments are they will not close your work your case until you become fully compliant.
Beware of IRS tax settlement services companies.
We have been in this industry a long time there are many good companies in as many bad tax settlement service companies. For you to evaluate in IRS tax settlement service company you must ask to speak directly to the person who will be working your case.
Generally, when you call a tax services company, you are speaking to what is called a closer. That person is a salesman and will actually bill you and charge you for the services then your case gets passed down the line.
When you call fresh start tax, you will speak directly to the person who works your case and that person can give you a true evaluation on how and if IRS will accept an IRS tax settlement.
All IRS tax settlement service firms and companies are different. Check out the BBB rating and make sure you have a true tax professional working your case.
I suggest you always hire someone who’s worked at the IRS because they are aware of the methodologies required to get your offer in compromise through the system.
Other ways to Solve Back IRS Taxes Debt or tax problems
As a general rule, you may apply for hardships, payment agreements or settle for an offer in compromise to settle your debt for pennies on the dollar.
We will review with you your financial statement and let you know what the lowest possible settlement IRS will accept. 40% of all persons that owe back taxes are placed into a hardship or are currently not collectible status and 6.5 million taxpayers enter into annual payment agreements.
With these programs you will not pay less tax. These programs are designed to keep IRS off your back.
The other way to pay less tax is for the ten-year statute of limitation to run out and your debt will be written off by the Internal Revenue Service.
If you want to file an offer in compromise I thought you’d like to know what the statistics are.
Last year over 78,000 offers in compromise/IRS tax debt settlement were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Approximately 40,000 taxpayers last year paid less tax.
At the current time there are 7500 cases in the offer queue. The average wait time is nine months. There are not enough IRS employees to work the current inventory.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement.
We will not file for an offer in compromise unless you are a true candidate for the program.
There is a pre qualifier tool to find out if you are a settlement candidate for income or business tax debt.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program. However this program is not for everybody.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
There are many firms that take your money and then let you know after the fact you are not qualified. you need to know before hand whether you have a fighting chance. Being a former IRS agent employee gives you a huge advantage of having the review your offer in compromise to settle your tax debt.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlements.
The Offer in Compromise + The New Fresh Start Tax Initiative
If you have any questions or issues about the offer in compromise program to settle or negotiate your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable 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. 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. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
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.
Below you will find out what you need to know about the offer in compromise program.
Beginning immediately FROM THE IRS :
The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. The internal revenue service will immediately reject your offer in compromise. Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
When IRS determines that they will settle with you, IRS will consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
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.
Right now that is appox. 9 months
Make sure you are eligible for the offer in compromise to settle your back IRS tax debt.
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.
Submit your offer in compromise to settle your tax debt on back IRS taxes.
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 will include:
• Form 433-A (OIC) (individuals) or 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;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.
Select a payment option on an IRS offer settlement
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:(most common)
Submit your initial payment with your application. 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.
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 to settle your tax debt
While your offer to pay less taxes is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for free initial tax consultation and speak to a true IRS tax expert who will walk you through the process of how to negotiate with IRS over back taxes and see if you qualify to pay less taxes for an IRS tax settlement.
How To Extinguish IRS Tax Debt = Available Programs + Free Advice
