by Fresh Start Tax | Apr 24, 2013 | Tax Help
Wage Garnishment – IRS Tax Attorneys, Lawyers – Experts in Wage Garnishments Removal, Settlements 1-866-700-1040
If you need immediate removal of an IRS wage garnishment contact us today for immediate tax relief and get your case settled.
We are comprised of IRS tax attorneys, tax lawyers, certified public accountants, enrolled agents, and former IRS agents managers and tax instructors.
We have over 206 years professional tax experience and over 60 years of working directly for the Internal Revenue Service has agents and managers. While at the Internal Revenue Service we also taught collection tax law.
Because of our term of service at the Internal Revenue Service we are tax experts in the removal of wage garnishments and tax settlements. As a result of our 60 years at IRS, we know the exact systems, the exact protocols, and the exact methods in which IRS releases wage garnishment levies and how they settle their cases.
Why did IRS send out a Wage Garnishment
IRS sends out a series of three or four billing notices to the last known address of the taxpayer which address shows up as a result of the filing of their last filed income tax return.
IRS is allowed by law only to send that last billing notice to the last address shown on their tax return. No other requirement needs to be met. IRS makes no other attempt to contact the taxpayer.
If the taxpayer does not comply to IRS request to contact the one 800 number shown on the final notice of their bill, the IRS systemically sends out a wage garnishment levy to the taxpayers employer.
The employer is usually found on a W-2 or other income indicators that the Internal Revenue Service has on their CADE2 computer.
All of these wage garnishment levies are sent out systemically by the Internal Revenue Service in their untouched by human hands.
How long is the wage garnishment levy in effect
The IRS wage garnishment is a continual levy and does not stop until he employer receives an actual release of the federal tax wage garnishment.
The form the IRS sends to garnish a person’s wages is a form 668-W. A taxpayer should immediately contact a tax professional or the Internal Revenue Service to start the process to get the IRS wage garnishment removed and the case settled.
What is needed to get the wage garnishment released
To get the wage garnishment released from the Internal Revenue Service a taxpayer will have to provide a current financial statement to the Internal Revenue Service.
That form is the 433-F and you can find that financial statement on our website.
That form will need to be sent or faxed to the Internal Revenue Service along with the last pay stubs, the last 3 to 6 months bank statements, and a copy of all income and expenses for the last three months.
IRS will use the national and regional standards to assess your financial statement before they make a determination on your case.
IRS may also request that all federal income tax returns be filed and brought up to date and evidence or proof that you are making current tax deposits or have enough withholding being taken now your check at the situation will not occur again.
How soon can you get the IRS wage garnishment removed
As soon as IRS gets a fully completed 433F with all the associated documentation the IRS will begin the process of closing your case off the IRS enforcement computer and releasing your Wage Garnishment .
To do that IRS will need a closing method in which to close the case.
As a general rule the IRS closes case is one of three ways.
After the Internal Revenue Service analyzes your case they will determine that you are either a financial hardship candidate, you are suitable for installment agreement, or you are a tax settlement candidate and will let you know that you should file an offer in compromise.
Offers in compromise or IRS tax debt settlement should not be done without professional tax help. As a former IRS agent and teaching instructor of the offer in compromise I can tell you first hand the OIC is much more complicated than people ever think.
IRS accepts about 29% of all the offers in compromise filed and my hunch is that a 90% of those that are accepted are filed by professional tax companies.
The Internal Revenue Service can do more than just send a wage garnishment out
Keep in mind the Internal Revenue Service to not have to stop with just the wage garnishment. IRS has the option of issuing a bank levy to your financial institutions and also has the ability of file a federal tax lien. It is extremely important to contact the IRS and resolve this problem as soon as possible.
Contact us today. We are comprised of IRS tax attorneys, certified public accountants, and former IRS agents managers instructors.
We are A+ rated by the Better Business Bureau have been in private practice since 1982.
Wage Garnishment – IRS Tax Attorneys, Lawyers – Experts in Wage Garnishments Removal, Settlements
by Fresh Start Tax | Apr 24, 2013 | Tax Levy and Wage Garnishments
IRS Bank Levy, Wage Levy Garnishments – Get Releases ASAP, Former IRS 1-866-700-1040
The Internal Revenue Service sends out 3.6 million IRS bank levies and IRS wage garnishment levies each year.
The IRS CADE2 computer generates these levy notices both banks and employers systemically.
Not a human hand touches these a bank levy or Wage levy garnishment.
Thousands of these notices are sent every day to taxpayers who are failed to respond to the last billing notice the IRS is sent to their last known mailing address. Sadly millions of taxpayers never have received their final builder notice to even respond to the Internal Revenue Service and that is because the IRS has a protocol that states that it is only required to send the last billing notice to the last known address on their last file tax return.
As a former IRS agent I sent out hundreds and hundreds of IRS bank levies and wage garnishment levies.
Because of my years of experience at the Internal Revenue Service I know the exact protocol, the exact format, and the exact settlement procedures to go ahead and to get your IRS wage levy garnishment or IRS bank levy released as soon as possible.
We have over 206 years of professional tax experience, over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service and we are a plus rated by the Better Business Bureau.
The process of getting the IRS bank levy or wage Levy garnishment released
There is a very exact process or protocol that the Internal Revenue Service uses to get the IRS bank levy or wage Levy garnishment released.
Before IRS releases anyone off the hook they need to determine the collectibility of each and every taxpayer or business before they close off the case off the IRS collection computer called CADE 2.
IRS will require a current financial statement.
You can find that financial statement on our website. The forms is the 433-F. You will have to complete every box on the form and have it completely documented before the Internal Revenue Service will make a determination on how your case can be closed.
Documents Needed for Release of IRS Bank Levy or Wage Garnishment
Beside the IRS financial statement the IRS will require copies of pay stubs, of bank statements for the last 3 to 6 months and a copy of all your bills receipts and expenses for a period of three months.
The Internal Revenue Service will also make sure that all your tax returns are up-to-date and that you are having the proper amount of withholding taken out of your paycheck.
If you are self-employed they will make sure that you are making current estimate tax payments
IRS will carefully review your financial statement and apply it against the national and regional standards. you can find those national and regional standards on her website. Click on the IRS forms on our homepage and you will be brought to the national standards. IRS will then make a determination as to how they will close your case.
That can be appealed if you do not like the decision. You have the option of filing CAP for someone else to review your case.
How your case will be settled with the Internal Revenue Service
IRS will either close your case suggesting you are a suitable candidate for an offer in compromise, they may determine that you could make a current monthly payment to them based on your financial statement or the IRS may determine because of your present condition you are at this time currently not collectible.
If the IRS determines that your case is currently non-collectible they will place your case in suspense for the next three years.
As a general rule once your adjusted gross income shows a higher amount, your case will be generated back to the field and your case brought back to the enforcement computer and the process starts again all over with bills and notices.
The IRS Bank Levy
When a bank receives the levy notice from the Internal Revenue Service all funds are frozen in that account for 21 days.
The funds that are frozen are only those monies that are in the bank account on the day the bank received the IRS levy.
By law, those are the only funds that are frozen.
You can continue to use that bank account as much as you want except for the frozen funds. Contrary to popular belief your bank account is not closed.
The Internal Revenue Service gives taxpayers a 21 day grace period to go ahead and allow them to get the release of the Bank Levy and get their monies back in their hand.
The wage levy garnishment
The wage levy garnishment unlike the bank levy is a continuous levy.
It continues to garnish or seizes a person’s paycheck week after week until the employer receives an actual release from the Internal Revenue Service.
All taxpayers should act immediately upon receiving an IRS bank levy or wage Levy garnishment. We can get your bank levy or your wage levy garnishment released immediately as soon as we have your current financial statement with all documentations in our hand.
Call us today for free initial consultation and you can speak directly tax attorneys, certified public accountants, or former IRS agents who are tax experts for IRS bank levies and release of wage levy garnishments,
We not only will get your IRS bank levy or your wage levy garnishment released we will also settle your case. We are affordable, A+ rated by the Better Business Bureau and have been in private practice since 1982.
IRS Bank Levy, Wage Levy Garnishments – Get Releases ASAP, Former IRS
by Fresh Start Tax | Apr 24, 2013 | Tax Levy and Wage Garnishments
Back Account Frozen by the IRS – Get Levy Release ASAP by Former IRS Agents 1-866-700-1040
If your bank account has been frozen by the Internal Revenue Service call us today to get a fast and quick resolution and get your release of bank levy by the Internal Revenue Service.
You want to consider the use Fresh Start Tax LLC because we have over 206 years professional tax experience, over 60 years with the Internal Revenue Service and we are A+ rated by the Better Business Bureau.
We have been in private practice since 1982 and have released thousands of levies.
We can make this a very easy process of unfreezing your bank account and settling your case.
We are comprised of former IRS agents and managers with 60 years of working directly for the Internal Revenue Service at the local, district, and regional tax offices of the Internal Revenue Service.
As a result of our years of experience at the IRS, we know the exact systems, the exact protocol, and the exact settlement formulas necessary to get your money back in your hands and settle your case as well.
There is a very specific process to get your frozen bank account funds released and back in your hands.
The IRS sends bank account levies out to taxpayers because they have failed to address notices and bills that were sent out to taxpayers at the last known address.
The unfortunate part, many taxpayers because they have moved never received the last bill or notice. Also many times fear shuts taxpayers down from dealing with their IRS issues. That’s where we come in we can help overcome those fears and get your life back in order.
To Get Your Bank Account Release
To get your bank account unfrozen and get the money back in your hands the IRS will need to close your case off the enforcement computer.
IRS will require a 433-F which is the IRS version of a financial statement.
Along with the financial statement IRS will need complete and accurate documentation as to the correctness of the financial statement. IRS will need your last pay stub, your last three months of bank statements, and also a copy of all your monthly expenses. IRS will conduct an analysis as to how they believe your case should be closed. IRS will use the national and local averages to determine the allowable expenses.
As a general rule, IRS will close your case in one of three fashions.
1. IRS will determined by your financial statement that you are right now in an economic tax hardship and you’re unable to pay IRS at this time. Within the IRM there are provisions to shelve your case for two or three years because you are currently noncollectable.
2. IRS may say that you could make an installment or make payment arrangements because of your present income at the time.
3. IRS may also let you know that you are a suitable candidate for an offer in compromise or a tax debt settlement.
Once the taxpayer agrees to a closing method the IRS will send a notice of release to the bank that has your account frozen.
Holding Period for Bank Levies
A bank must wait 21 calendar days after a levy is served before sending payment.
Then, on the next business day, it must turn over the taxpayer’s money. The depositor(s) can waive this waiting period.
The bank will not send money that is subject to attachment or execution under judicial process.
“Bank” includes credit unions, savings and loan associations, trust companies, and others described in IRC 408(n) and Treas. Reg. §301.6332–3(b).
During the holding period, a levy might be released, or the amount owed could decrease.
Note:
If the bank receives no release, it must send the payment after the holding period. No additional notice is required.
Consider the holding period when deciding how long to project the accruals on a bank levy.
Role of the Bank Liaison
The holding period was created to settle disputes about ownership of bank accounts before money is sent.
A bank liaison in each territory is usually assigned to settle these issues quickly.
Sometimes ownership is not settled before the holding period ends. If this happens, ask the bank for more time.
Multiple Signature Authority for a Bank Account
A levy served to a bank attaches to funds in a bank account for which the taxpayer has an unrestricted right to withdraw funds (signature authority) – even if multiple persons have signature authority for that bank account.
As noted in Treasury Regulation 301.6332–1(c)(4) the unrestricted right to withdraw funds is an interest which is subject to levy.
Examples of this are the following
A bank is served with a notice of levy for an unpaid tax liability due from the taxpayer in the amount of $2,000. The bank holds $2,000 in a checking account in the names of a taxpayer and a third party.
Although all of the deposits into the account were made by the third party, the taxpayer has an unrestricted right to withdraw the funds from the account. The bank may send the Service the entire account balance at the end of the 21 day holding period.
The bank is not liable to the third party for any amount, even if the third party proves that the funds in the account did not belong to the taxpayer, because the taxpayer’s unrestricted right to withdraw the funds is an interest which is subject to levy.
The third party may, however, seek the return of the funds from the United States by making an administrative wrongful levy claim under IRC 6343(b) or file a suit under IRC 7426(a)(1) should the administrative claim be denied.
A wrongful Levy
A non-liable third party may claim ownership of funds in a bank account when multiple people hold signature authority for that bank account. Treat this dispute as a potential wrongful levy.
A wrongful levy is a levy that improperly attaches property belonging to a third party in which the taxpayer has no rights.
See IRM 5.11.2.2.2, Wrongful and Erroneous Levies, for the procedures to follow in these situations.
Reminder: For bank levies if additional time is needed beyond the 21 day hold period to determine ownership, request the bank hold the funds. Provide the potentially wrongfully levied party a deadline date for providing substantiation and provide the bank with a specific extension date to forward the funds.
Reminder:
Provide the potentially wrongfully levied party Form 4528, Making an Administrative Wrongful Levy Claim Under Internal Revenue Code (IRC) Section 6343(b)
Amount that Must be Surrendered
The bank must send the amount in the taxpayer’s accounts. A bank levy attaches to any property or rights to property that belong to the taxpayer or on which there is a Federal tax lien, unless it is exempt. See IRC 6331, Levy and Distrait , for legal authority to levy. However, it must send no more than the amount shown on the notice of levy.
Note:
By law, banks cannot immediately honor the IRS levy. See IRM 5.11.4.1, Holding Period, for guidance on the holding period after a bank levy.
on the she had her routine of
Bank Account Levy only attaches to the date the money is received.
The notice of levy only reaches the amount on deposit when the levy is received. Money deposited later is not surrendered, including deposits during the holding period. Another levy must be served to reach this money.
Also, the levy only reaches deposits that have cleared and are available for the taxpayer to withdraw.
Levy proceeds must not be reduced by any fee charged by the bank for processing the levy.
Back Account Frozen by the IRS – Get Levy Release ASAP by Former IRS Agents
by Fresh Start Tax | Apr 24, 2013 | Tax Levy and Wage Garnishments
Get Wage Garnishment Levy Released ASAP – Former Agents 1-866-700-1040
Let Former IRS agents and managers get your IRS wage garnishment levy released or removed today.
Upon your call to us we will secure a power of attorney, a current financial statement along with documentation and with that in hand we can get your IRS wage garnishment levy released.
If you have received a wage garnishment levy from the Internal Revenue Service we can get it removed quickly.
Contact us today and get your life back in order.
We can not only get your IRS wage garnishment levy released we can also settle your case at the same time.
We are comprised of tax attorneys, certified public accountants, and former IRS agents and managers who know the exact process and system to quickly and with affordable pricing get your IRS wage garnishment levy removed.
We have over 60 years of working for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
Why IRS Wage Garnishments are sent to Employers
The Internal Revenue Service will send a wage garnishment IRS levies to taxpayers employers if taxpayers have not responded to the final billing notices sent out by IRS.
As a general rule the IRS sends out a series of 3 to 4 letters or notices letting taxpayers know that if the taxpayer does not respond to the Internal Revenue Service a wage levy or a bank levy will be forthcoming.
Many taxpayers either fail to act on that notice or have never received the final notice and wind up getting their wages seized or frozen by the Internal Revenue Service.
The requirement to get the Wage Garnishment IRS levy released
To get the wage garnishment IRS levy released a taxpayer will have to provide to the Internal Revenue Service a form 433F which is a version of a financial statement.
You can find this form on our website.
That form along with all pay stubs, bank statements and all monthly expenses will have to be forwarded for the IRS so they can make a determination on how to release your IRS wage garnishment and settle your case.
After IRS carefully reviews the financial statement and the documentation, the Internal Revenue Service will usually release the wage garnishment IRS levy and put the client in one of three closing postures.
Closing or Settlement Options
The IRS will either place the taxpayer into an economic tax hardship due to their current financial status or ability, the IRS will insist on a payment or installment agreement because they make more than the national or regional averages, or IRS will let you know you’re a suitable candidate for offer in compromise.
To get your wage garnishment IRS levy removed quickly a taxpayer will provide fresh start tax a completed financial statement along with the documentation. As a general rule we can get that levy released the day we receive the documents that IRS will need to close her case.
Regarding the IRS wage garnishment, IRS levy
Introduction
An individual’s wages, salary, and other income can be levied. Wages, salary, and other income include payment for personal services in a work relationship.
If your employer Threatens to Fire Taxpayer Because of a Levy fight back
Sometimes an employer threatens to fire an employee to avoid handling a levy.
This might be a violation of 15 USC 1674.
If the employer fires the taxpayer because of this, the employer might be fined not more than $1000 or imprisoned for not more than one year, or both.
Refer the taxpayer to the Wage and Hour Division of the Department of Labor (DOL). DOL, not IRS, must decide if the employer violated the law.
The Continuous Effect of Levy on Salary and Wages
Unlike other levies, a levy on a taxpayer’s wages and salary has a continuous effect.
It attaches to future payments, until the levy is released. The Internal Revenue Service will not back off until the taxpayer makes an attempt to settle there case with the IRS.
All Wages and salary include fees, bonuses, commissions, and similar items.
All other levies only attach to property and rights to property that exist when the levy is served.
If a bank account is levied, it only reaches money in the account when the levy is served. It does not reach money deposited later.
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
Future Payments that may be Due
A Form 668-A is issued to levy an author’s royalties. The author has a fixed and determinable right to royalties for books that have already been published. The levy reaches royalties for sales of those books in the future.
The levy does not reach royalties for books that are written and published later. A new levy must be served to take those royalties.
Retirement or Social Security Income, nothing is sacred to the IRS
A Form 668-W is issued to levy a taxpayer’s retirement income. The taxpayer has a fixed right to the future payments; therefore, the levy remains in effect until it is released.
Also, see IRM 5.11.6.12, Levy on Non-Liable Spouse in a Community Property State for guidance when the wage levy on the non-liable spouse is not continuous.
Exempt Amount from the IRS wage garnishment levy
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
Get Wage Garnishments IRS Levy Released ASAP using IRS Former Agents
by Fresh Start Tax | Apr 24, 2013 | Tax Help
IRS Settlement Program for Back Taxes – Hear the Truth 1-866-700-1040
The Internal Revenue Service Offer In Compromise Program is the basic IRS settlement tool used by taxpayers to settle their IRS debt.
Settlement program for IRS has a 25% success rate for all those who file offers in compromise.
As a former IRS agent I have not only work this program but am a former IRS teaching instructor.
As a result of my years of experience at the Internal Revenue Service, I know all the settlement formulas, the settlement procedures, and the exact structure to make this work for any taxpayer who is a true candidate for the IRS settlement program.
You should know from the start that not all taxpayers fit into the IRS settlement program.
IRS has a pre-qualifier tool and you will find that our website.
You should not engage any tax firm until they let you know that you are a true settlement candidate. Many internet tax firms rip thousands and thousands of taxpayers off by telling them ” we can settle for pennies on a dollar. ”
Make sure you know who you’re speaking to before engaging any tax firm to settle your IRS cases on back tax. Make sure you are speaking to a tax attorney, certified public accountant, and enrolled agent or a former IRS agent. with most Internet firms they often have sales people try to convince you into an IRS settlement program. Be very cautious this does not happen to you because you can lose your upfront money.
We have over 60 years of direct working knowledge and experience with the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
We will review your case for free and let you know whether you are a qualified settlement program candidate for your back taxes. Hear the truth from fresh start tax today.
What is the IRS settlement program
An offer in compromise or tax debt settlement program 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.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
Eligibility
In order to be eligible for an OIC, the taxpayer must have filed all tax returns, made all required estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS will not accept an OIC unless the amount offered by the 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.
IRS may accept an OIC based on three grounds.
First. Acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second. Acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that 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. Acceptance is permitted 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.
Submission of the IRS Offer in Compromise
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of Form 656 (PDF), Offer in Compromise, and must also submit Form 433-A (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (PDF), Collection Information Statement for Businesses.
A taxpayer submitting an 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 and/or Form 433-B.
Application fee for the IRS settlement program
A taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. 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.
The lump sum payment settlement
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum 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 $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount 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 amount.
Periodic payment offer or settlement
The 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 $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum 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.
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. If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties. Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Rejections of the IRS Settlement for Back Taxes
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals. The appeal must be made within 30 days from the date of the letter.
In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
You can refile your IRS Settlement on Back Taxes if it is not approved
Remember you can file as many offers in compromise as you want. Taxpayers are not restricted whatsoever. If your first offer in compromise is rejected learn from your mistakes and resubmit another offer correcting the issues in which IRS had problems with.
IRS Settlement Program for Back Taxes – Hear the Truth, Former IRS
