Tax Help | Fresh Start Tax

How to Pay Off Your Tax Debt, IRS TAXES + Former IRS

by Fresh Start Tax | Aug 9, 2016 | Tax Help

We are an affordable IRS settlement tax firm. It only takes one free tax consult. Since 1982, A+ rated by the BBB. Former IRS Agents, Find Out if you Qualify!

We are an affordable professional tax firm with over 95 years of direct IRS work 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.

We have worked as agents, supervisors, managers, and teaching instructors. We know the IRS like the back of our hand.

We can let you know today the different ways you can pay off your tax debt.

Save Your Money, find out immediately. 1-866-700-1040

How will IRS settle for on back taxes?

There are generally three ways to pay off your back tax debt.

1. Payment in full,

2. Monthly Payments,

3. Acceptance of an offer in compromise.

For those who cannot pay their debt IRS has a non-collectible or hardship program.

Upon our initial tax consultation we will walk through the various programs and let you know the easiest way to pay off your back tax debt.

The most important aspect of working tax debt cases is completely dependent on the individual or business financial statements. 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.

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.

It is critically important to know that you cannot pay less taxes and less you qualify for the offer in compromise program.

Negotiation with the IRS over back taxes is the job of the seasoned tax professional who knows the systems and the methodologies and the formulas of the Internal Revenue Service.

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.

We can review with you the different IRS tax debt settlement programs and find out if you are a qualified and eligible for any of the IRS programs.

Just another reminder, the only way to pay less tax or to find out if IRS will settle with you is through the offer in compromise program which will be explained below.

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

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.

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. The Pay Less program is not suited for everybody.

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: 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:

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 o n an IRS settlement offer to pay less tax

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.

So to sum everything up, how much will IRS settle for, it all depends on your current financial statement based on your assets, your income, and your current expenses,

So call us today and we will let you know if you can qualify for an IRS tax settlement.We are true IRS tax experts.

How to Pay Off Your Tax Debt, IRS TAXES + Former IRS

IRS Payments + Get a IRS Payment Plan to Make Monthly Payments

by Fresh Start Tax | Aug 8, 2016 | Tax Help

IRS Payment Plans, Installment Agreements & Monthly Payment plans

If you’re financially unable to pay your tax debt immediately, you can make monthly payments through an IRS installment agreement.

Before applying for any payment agreement, you must file all required tax returns.

Call us today for a free initial tax consultation and we will find out the payment plan that works best for you.

Before you enter into a payment plan you may want to find out if you consider your tax debt to the offer in compromise program which lets you settle your debt for pennies on a dollar. You must be an eligible candidate for this program.

The offer in compromise or debt settlement offered by Internal Revenue Service has a payment agreement section that lets you make payments to settle your tax debt.

DIFFERENT CATAGORIES of Payment plans, Payment Agreements:

Those who owe under $25,000

• Individuals must owe $50,000 or less in combined individual income tax, penalties and interest, and have filed all required returns.

• Businesses must owe $25,000 or less in payroll taxes and have filed all required returns.

Small Businesses with employees can apply for an in-Business Trust Fund Express installment agreement

• These installment agreements generally do not require a financial statement or financial verification as part of the application process.

• Find out if you qualify and how to apply bu calling us today.

Understand your agreement & avoid default

• Your future refunds will be applied to your tax debt until it is paid in full;

• Pay at least your minimum monthly payment when it’s due;

• Include your name, address, SSN, daytime phone number, tax year and return type on your payment;

• File all required tax returns on time & pay all taxes in-full and on time (contact us to change your existing agreement if you cannot);

• Make all scheduled payments even if we apply your refund to your account balance; and

• Ensure your statement is sent to the correct address, contact us if you move or complete and mail Form 8822, Change of Address (PDF).

If you don’t receive your statement, send your payment to the address listed in your agreement.

There may be a reinstatement fee if your agreement goes into default.

Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, contact us immediately.

IRS will generally not take enforced collection actions:

• When an installment agreement is being considered;

• While an agreement is in effect;

• For 30 days after a request is rejected, or

• During the period the IRS evaluates an appeal of a rejected or terminated agreement.

IRS Payments + Get a IRS Payment Plan to Make Monthly Payments

IRS Help For Back Taxes + Former IRS Who Knows System

by Fresh Start Tax | Aug 4, 2016 | Tax Help

We are former AFFORDABLE IRS Agents and Managers who know the system. Since 1982, Affordable IRS Tax Experts.

If you need IRS help for back taxes call us today for a free initial tax consultation and here the truth from a firm that has worked thousands of cases.

We know all the IRS systems, processes, and methodologies. After speaking to us you will have a clear path to understand how we can help your back tax problem with the Internal Revenue Service.

We are an IRS problems service firm that can help resolve any facet of an IRS or state tax problem. We can end IRS Tax Problems for back Taxes.

We have worked thousands of cases. Since 1982,

We can end back tax problems or delinquent tax problems and get IRS off your back for good.

We know all the IRS systems, settlement theories, and methodologies to end your case fast and affordable. We’re true experts in resolving IRS tax problems.

Our 95 years of direct IRS work experience puts us in a category all by ourself.

Being former IRS agents we are experts in the settlement, immediate IRS levy releases, IRS payment plans, IRS tax defense for audits and any back payroll tax debt. We have over 95 years of direct work experience in the local, district, and regional tax offices of the IRS.

If you have received an IRS levy or wage garnishment within 24 hours of receiving your current financial statement we can get a full release, we can represent you during an IRS tax audit, if you owe back taxes we can settle your tax debt get you in a hardship or set up a payment plan depending on your current financial statement.

We will explain to you all your options and remedies on your initial call.

Call us today and find out all your options on how to get immediate and permanent IRS tax relief.

You can speak to a former IRS agent or manager who has worked this system for years. You will not find more experience IRS tax experience for IRS tax problems.

How the Internal Revenue Service will work your case if you owe the IRS tax debt.

IRS will require a documented 433A or 433F, an individual financial statement.

You can find that form directly on our website.

Many times the IRS uses 433F, depending were the cases in the system. Cases worked in the ACS system uses shorter version of the financial statement.

If the case is worked in the local office the revenue officer will use form 433.A

That financial statement will need to be fully documented along with bank statements, copies of checks and monthly expenses.

We will walk you through the process of how the IRS will work your case in the collection action that can possibly taken.

Will also review with you the IRS national standards program on all cases for those who owe back taxes.

Once IRS reviews your current financial statement they will make a determination and generally put you in one of two categories with the option of filing an offer in compromise.

IRS Stats on taxpayers to owe back taxes or delinquent taxes

1.IRS determines on 40% of the cases that taxpayers are put into hardship which means they can’t pay the tax at this time.

Sometimes it is called currently not collectible.

Cases that are placed at currently not collectible or hardship stay in there for a period of 2 to 3 years and come back out to the field at a later time.

2. 6.5 million people enter monthly payment plans and pay a certain amount based on their current documented financial statement.

Other taxpayers file an offer in compromise to settle their case for pennies on the dollar.

The offer in compromise requires a lot of skill and expertise to have accepted by the Internal Revenue Service.

What is an offer in compromise? OIC

It is an agreement between a taxpayer and the Internal Revenue Service that settles the 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, will not be eligible for a OIC in most cases.

In order to be eligible 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 will not accept a OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (the 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.

The IRS may accept a OIC based on three grounds:

• First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this only when there is 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 is 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 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.

When submitting a OIC based on doubt as to collectibility or based on effective tax administration, taxpayers must use the most current version of:

1. Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or,

2. 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).

In general, a taxpayer must submit a $186 application fee with the Form 656.

Do not 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 is not 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 4 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 4 of Form 656 and check the certification box.

Options: 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 will not 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.

An offer is called a “periodic payment offer” under the tax law if it is 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 a OIC, the taxpayer may no longer designate offer payments to any specific tax liability 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.

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.

The offer in compromise requires a lot of skill because reviewed by several layers of Internal Revenue Service. I should know, I am former IRS agent and teaching instructor of the offer in compromise.

Call us today for a free initial tax consultation. When you call our office you will speak to true IRS tax experts.

We are the fast, friendly, and affordable professional tax firm. Since 1982.

IRS Help For Back Taxes + Former IRS Who Knows System

Back Taxes & Delinquent Taxes + Instant Tax Relief + Former IRS

by Fresh Start Tax | Aug 4, 2016 | Tax Help

We are former AFFORDABLE IRS Agents and Managers who know the system. Since 1982, Affordable IRS Tax Experts.

Back Taxes & Delinquent Taxes

We are an IRS problems service firm that can help resolve any facet of an IRS or state tax problem. We can end IRS Tax Problem.

We have worked thousands of cases.

We can end back tax problems or delinquent tax problems and get IRS off your back for good.

We know all the IRS systems, settlement theories, and methodologies to end your case fast and affordable. We’re true experts in resolving IRS tax problems.

Our 95 years of direct IRS work experience puts us in a category all by ourself.

Being former IRS agents we are experts in the settlement, immediate IRS levy releases, IRS payment plans, IRS tax defense for audits and any back payroll tax debt. We have over 95 years of direct work experience in the local, district, and regional tax offices of the IRS.

If you have received an IRS levy or wage garnishment within 24 hours of receiving your current financial statement we can get a full release, we can represent you during an IRS tax audit, if you owe back taxes we can settle your tax debt get you in a hardship or set up a payment plan depending on your current financial statement.

We will explain to you all your options and remedies on your initial call.

Call us today and find out all your options on how to get immediate and permanent IRS tax relief.

You can speak to a former IRS agent or manager who has worked this system for years. You will not find more experience IRS tax experience for IRS tax problems.

How the Internal Revenue Service will work your case if you owe the IRS tax debt.

IRS will require a 433A or 433F, an individual financial statement.

You can find that form directly on our website.

Many times the IRS uses 433F, depending were the cases in the system. Cases worked in the ACS system uses shorter version of the financial statement.

If the case is worked in the local office the revenue officer will use form 433.A

That financial statement will need to be fully documented along with bank statements, copies of checks and monthly expenses.

We will walk you through the process of how the IRS will work your case in the collection action that can possibly taken.

Will also review with you the IRS national standards program on all cases for those who owe back taxes.

Once IRS reviews your current financial statement they will make a determination and generally put you in one of two categories with the option of filing an offer in compromise.

IRS Stats on taxpayers to owe back taxes or delinquent taxes

1.IRS determines on 40% of the cases that taxpayers are put into hardship which means they can’t pay the tax at this time.

Sometimes it is called currently not collectible.

Cases that are placed at currently not collectible or hardship stay in there for a period of 2 to 3 years and come back out to the field at a later time.

2. 6.5 million people enter monthly payment plans and pay a certain amount based on their current documented financial statement.

Other taxpayers file an offer in compromise to settle their case for pennies on the dollar.

The offer in compromise requires a lot of skill and expertise to have accepted by the Internal Revenue Service.

What is an offer in compromise? OIC

It is an agreement between a taxpayer and the Internal Revenue Service that settles the 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, will not be eligible for a OIC in most cases.

In order to be eligible 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 will not accept a OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (the 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.

The IRS may accept a OIC based on three grounds:

• First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this only when there is 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 is 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 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.

When submitting a OIC based on doubt as to collectibility or based on effective tax administration, taxpayers must use the most current version of:

1. Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or,

2. 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).

In general, a taxpayer must submit a $186 application fee with the Form 656.

Do not 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 is not 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 4 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 4 of Form 656 and check the certification box.

Options: 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 will not 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.

An offer is called a “periodic payment offer” under the tax law if it is 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 a OIC, the taxpayer may no longer designate offer payments to any specific tax liability 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.

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.

The offer in compromise requires a lot of skill because reviewed by several layers of Internal Revenue Service. I should know, I am former IRS agent and teaching instructor of the offer in compromise.

Call us today for a free initial tax consultation. When you call our office you will speak to true IRS tax experts. We are the fast, friendly, and affordable professional tax firm. Since 1982.

Back Taxes & Delinquent Taxes + Instant Tax Relief + Former IRS

Help Resolving IRS Tax Problems + Using Former IRS Agents

by Fresh Start Tax | Aug 4, 2016 | Tax Help

We are former AFFORDABLE IRS Agents and Managers who know the system. Since 1982, Affordable IRS Tax Experts.

We are an IRS problems service firm that can help resolve any facet of an IRS or state tax problem. We can end IRS Tax Problem.

We have worked thousands of cases. We know all the IRS systems, settlement theories, and methodologies to end your case fast and affordable. We’re true experts in resolving IRS tax problems.

We are experts in all IRS tax matters.

Our 95 years of direct IRS work experience puts us in a category all by ourself.

Being former IRS agents we are experts in the settlement, immediate IRS levy releases, IRS payment plans, IRS tax defense for audits and any back payroll tax debt.

If you have received an IRS levy or wage garnishment within 24 hours of receiving your current financial statement we can get a full release, we can represent you during an IRS tax audit, if you owe back taxes we can settle your tax debt get you in a hardship or set up a payment plan depending on your current financial statement.

We will explain to you all your options and remedies on your initial call.

Call us today and find out all your options on how to get immediate and permanent IRS tax relief.

You can speak to a former IRS agent or manager who has worked this system for years. You will not find more experience IRS tax experience for IRS tax problems.

How the Internal Revenue Service will work your case if you owe the IRS tax debt.

IRS will require a 433A or 433F, an individual financial statement.

You can find that form directly on our website.

Many times the IRS uses 433F, depending were the cases in the system. Cases worked in the ACS system uses shorter version of the financial statement.

If the case is worked in the local office the revenue officer will use form 433.A

That financial statement will need to be fully documented along with bank statements, copies of checks and monthly expenses.

We will walk you through the process of how the IRS will work your case in the collection action that can possibly taken.

Will also review with you the IRS national standards program on all cases for those who owe back taxes.

Once IRS reviews your current financial statement they will make a determination and generally put you in one of two categories with the option of filing an offer in compromise.

IRS Stats:

1.IRS determines on 40% of the cases that taxpayers are put into hardship which means they can’t pay the tax at this time.

Sometimes it is called currently not collectible.

Cases that are placed at currently not collectible or hardship stay in there for a period of 2 to 3 years and come back out to the field at a later time.

2. 6.5 million people enter monthly payment plans and pay a certain amount based on their current documented financial statement.

Other taxpayers file an offer in compromise to settle their case for pennies on the dollar.

The offer in compromise requires a lot of skill and expertise to have accepted by the Internal Revenue Service.

What is an offer in compromise?