by steve | Sep 18, 2009 | Tax Help, Uncategorized
There are 3 types of offers in compromise used by the IRS.
I am a former IRS agent in teaching instructor with the Internal Revenue Service. I both worked and taught the IRS offer in compromise program. Feel free to call us for free initial tax consultation.
They are as follows and are taken from the IRS site regarding Offers:
Three Types of OICs
The IRS may accept an offer in compromise based on three grounds:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
Example: A taxpayer owes $20,000 for unpaid tax liabilities and agrees that the tax she owes is correct. The taxpayers monthly income does not meet her necessary living expenses. She does not own any real property and does not have the ability to fully pay the liability now or through monthly installment payments.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include: (1) the examiner made a mistake interpreting the law, (2) the examiner failed to consider the taxpayers evidence or (3) the taxpayer has new evidence.
Example: The taxpayer was vice president of a corporation from 2004-2005. In 2006, the corporation accrued unpaid payroll taxes and the taxpayer was assessed a trust fund recovery penalty as a responsible party of the corporation. The taxpayer was no longer a corporate officer and had resigned from the corporation on 12/31/2005. Since the taxpayer had resigned prior to the payroll taxes accruing and was not contacted prior to the assessment, there is legitimate doubt that the assessed tax liability is correct.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
Experienced experts can help you through this problem.
Care should be given before filing any offer.
It is always best to fill out the pre-qualifier tool to make sure you are a pre-qualified candidate to file for the offer in compromise, tax debt settlement.
by steve | Sep 18, 2009 | Tax Help, Uncategorized
If you defaulted on IRS payment agreement and need to get reinstated call us today.
Taxpayers who defaulted on an IRS payment agreement usually get IRS tax notice CP 523.
If you do not follow up on this IRS notice CP 523, you can expect a bank or wage garnishment levy sent within 6 to 8 weeks immediately following your notice.
We are former IRS agents and managers who know and understand the system.
Many times people or taxpayers who have an IRS payment agreement could be eligible settle their tax debt via the offer in compromise.
Call us today for a free initial tax consultation.
The CP 523 letter from IRS looks like this. It is sent out to taxpayers who have had a previous installment agreement and have defaulted:
Notice of Intent to Levy!!
You Defaulted On Your Installment Agreement.
This is a formal notice of our intent to terminate your installment agreement 30 days from the date of this notice. You defaulted on your agreement because you didn’t make your payments as agreed. The agreement states that we may terminate your agreement and collect the entire amount of your tax liability if you don’t meet all the conditions. This is your notice, as required by Internal Revenue Code Section 6331(d), of our intent to levy (take) any state tax refunds that you may be entitled.
We can also file a Notice of Federal Tax Lien, if we haven’t already done so. In addition we will begin to search for other assets we may levy. To prevent collection action, you must bring your account up to date by paying your past due amount, as well as any current payments due.
We will charge a reinstatement fee that we will take from your first payment. If don’t agree with this decision, you have a right to request Appeals consideration by calling the number listed below within 30 days from the date the agreement is terminated.
The IRS will without question levy your accounts and they already have the information of levy sources in their computer system.
Did You Default on a IRS Payment Agreement, Get Reinstated = IRS Tax Notice CP 523
by steve | Sep 18, 2009 | Tax Help, Uncategorized
Over 78,000 offers in compromise or filed every year in the IRS accepts approximately 38% for an average of $.14 on the dollar but a little known fact exists.
Some of those offers in compromise will fail to meet the five-year compliance rule.
If this happens you have no accepted offer in compromise so beware.
Lets say your Offer in Compromise is accepted.
You absolutely must file all tax returns and timely pay all taxes for the next five years or until the offered amount is paid in full, whichever comes first.
Failure to stick to these rules negates the OIC completely, it defaults, and the IRS may collect the amounts originally owed plus penalties and interest.
This is a real bummer.
We are offer in compromise specialist.
I am a former revenue officer who both worked and taught the offer in compromise.
by steve | Sep 17, 2009 | Tax Help, Uncategorized
Some interesting facts about the first timers from the IRS SITE. News release September 17, 2009.
Many taxpayers who purchase a home this year will qualify for an $8,000 federal tax credit. The refundable first-time home buyer credit is a major tax provision in the American Recovery and Reinvestment Act of 2009.
But time is running out to qualify for this credit.
Here are ten things the IRS wants you to know about the first-time home buyer credit:
To be considered a first-time home buyer, you ? and your spouse if you are married ? must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.
You cannot claim the credit before there is a completed sale and purchase of the residence. The sale and purchase are generally completed at the time of closing on the purchase.
To qualify for the credit, the completed purchase must occur before December 1, 2009.
The home must be located in the United States.
The credit is either 10 percent of the purchase price of the home or $8,000, whichever is less.
The amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000 or $150,000 for joint filers.
The credit is fully refundable. A home buyer with no taxable income, who qualifies for the credit, may file for the sole purpose of claiming the credit and receive a refund. The credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
The credit is claimed on IRS Form 5405, First-Time Home buyers Credit.
Taxpayers can claim the credit for a qualified 2009 purchase on either their 2008 or 2009 tax return. For those who have filed a 2008 return, a Form 1040X, Amended U.S. Individual Income Tax Return can be filed in order to get a refund in 2009.
The credit for qualified 2009 purchases does not have to be repaid, as long as the home remains your main home for 36 months after the purchase date.
Qualified taxpayers who have been considering a main home purchase may find extra incentive from this tax credit to buy now so they can complete the purchase before the December 1 deadline.
For more information on this and other key tax provisions of the Recovery Act visit the official IRS Website at IRS.gov/Recovery.
by steve | Sep 17, 2009 | Tax Help, Uncategorized
The IRS wage garnishment Levy has devastating effects on taxpayers.
It not only causes problems with their personal finances and raises concerns to the Internal Revenue Service and also presents problems for individual taxpayers and their bosses and payroll departments.
Many times their credibility has been ruined by the IRS wage garnishment tax levy.
Observations about this levy that arrives at your employer.
I advise almost all my clients to go into their boss or the human resources department and let them know that you have hired a professional company.
This lets them know that you are aware of and seriously taking care of the problem.
Employers may feel that this levy can detract from your job quality, so by going in and talking with them you can deflect any issues they may have.
You will have to get your own feeling about your own situation about contacting management.
If you are a person that handles money at your job, the employer could have serious doubts about what this could effect.
Be up front and open.
Many times we actually call the employer and let them know you have hired a professional tax company.
To get an IRS wage garnishment released /removed.
You’ll have to call IRS with a verifiable financial statement usually on form 433F.
You will have to include pay stubs, bank statements and a copy of all monthly income and expenses.
The Internal Revenue Service will analyze at current financial statement and as a general rule place you into a currently not collectible file or monthly payment agreement.
Your financial statement will determine how IRS will close your case.
It is very possible to get an IRS wage levy garnishment released within 24 hours.
As a rule a professional tax firm can make that happen.
If you are looking for true IRS tax experts to settle your case and get your IRS wage garnishment released and removed immediately call us today for a free initial tax consultation.
We are A+ rated by the Better Business Bureau.
How to Get a IRS Wage Garnishment Tax Levy Released/Removed ASAP + Form 668W, Former IRS Revenue Officer
