IRS Tax Debt Relief – Settle Tax Debt – New Jersey
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents and Managers.
We taught the Offer in Compromise Program at the IRS as former IRS agents.
We have over 206 years of professional tax experience and over 60 years working directly for the IRS in positions as agent, Managers and Appeals Agents. We are A plus rated.
Call us for a no cost professional tax consult and speak directly to a true Tax Professional. 1-866-700-1040.
Fresh Start Tax LLC – New Jersey
209 Cooper Ave,
Upper Montclair, NJ 07043
How does IRS Settle your Tax Debt.
At least one of three conditions must be met to qualify a taxpayer for consideration of an Offer in Compromise or a tax debt settlement:
1. Doubt as to Liability of the Tax.
The taxpayer can show reason for doubt that the assessed tax liability or assessment is incorrect,
2. Doubt as to Collectibility.
The taxpayer can show that the tax debt is likely uncollectable in full by the IRS under any circumstances and wishes to compromise the tax debt.
3. Effective Tax Administration.
The taxpayer does not contest liability or collectibility but can demonstrate extenuating or special circumstances that the collection of the debt would create an economic hardship or would be unfair and inequitable.
This type of Offer in Compromise program is available for any taxpayer, but is primarily used by individuals that are elderly, disabled, have medical issues or have special extenuating circumstances. These are rarely accepted.
Doubt as to Collectibility
Doubt as to collectibility means that the taxpayer will never be able to fully pay the tax bill. The IRS will consider a settlement based on the following formula:
a. Settlement Amount = (monthly disposable income x a number of months) + the net realizable equity in the taxpayer’s assets.
b. Disposable income is monthly income minus allowable monthly expenses. It is important to recognize that the IRS will not allow all expenses the taxpayer may actually have.
With the New Fresh Start Program the IRS is allowing more in the way of necessary expenses.
c. The number of months over which disposable income must be calculated into the offer amount is based on the smaller of the number of months remaining until the Collection Statute Expiration Date for the tax debt OR either 12 or 24 months, depending on the payment option for the Offer in Compromise which the applicant is selecting.
d. Net realizable equity in assets is the quick sale value of the asset (often 80% of Fair Market Value minus any liabilities which are secured by the asset (e.g., a loan).
If a taxpayer believes he or she qualifies, the taxpayer completes a 433 OIC financial statement along with a 656 form to the IRS. At Fresh Start Tax LLC we qualify any offer before submission.
IRS can still proceed with collection.
Some of the actions we may take to collect taxes include:
1. Filing a Notice of Federal Tax Lien
2. Serving a Notice of Levy, or
3. Offsetting a refund to which you are entitled
The federal tax lien is a legal claim to your property, including property that you acquire after the lien arises.
The federal tax lien arises automatically when you fail to pay in full the taxes you owe within ten days after we send our first notice of taxes owed and demand for payment.
The government also may file a Notice of Federal Tax Lien in the public records.
The Notice of Federal Tax Lien publicly notifies your creditors that the IRS has a claim against all your property, including property acquired by you after the Notice of Federal Tax Lien is filed .
The filing of a Notice of Federal Tax Lien may appear on your credit report and may harm your credit rating.
Once a federal tax lien arises, the IRS generally cannot release the lien until the taxes, penalties, interest, and recording fees are paid in full or until the IRS may no longer legally collect the tax.
The IRS may withdraw a Notice of Federal Tax Lien if the IRS determines that
1.the Notice was filed too soon or not according to IRS procedures;
2.you enter into an installment agreement to satisfy the liability unless the installment agreement provides otherwise;
3.withdrawal will allow you to pay your taxes more quickly; or
4.withdrawal is in your best interest, as determined by the National Taxpayer Advocate, and the best interest of the government.
Call us today and hear the truth about your case 1-866-700-1040.
IRS Tax Debt Relief – Settle Tax Debt – Upper Montclair and other cities.