Back Taxes – How/Methods to Settle with the IRS – Use Former IRS Agents 1-866-700-1040
The Internal Revenue Service accepts approximately 30% of all offers in compromise filed each year.
There are 58,000 settlement offers made to the Internal Revenue Service nationwide each year. The average settlement time is 6 to 9 months.
If you have back tax issues and you need to know how to settle with the Internal Revenue Service contact us today and you can speak directly to former IRS agents and managers who have been with the Internal Revenue Service for over 60 years in the local, district, and regional tax offices of the Internal Revenue Service. We can discuss the how and the methods.
Not only did we work at the Internal Revenue Service we also taught the IRS methods of tax debt settlements to the new IRS agents called the offer in compromise.
In settling tax debt with the Internal Revenue Service on back taxes it is extremely important for taxpayers to understand the process.
No taxpayer should submit an offer compromise unless they know the formulas that will be applicable to their own case.
As a general rule, IRS looks at two factors when looking to settle a taxpayers debt. Assets and Income.
The Internal Revenue Service is going to want to know what is the some total equity in all your assets and they are going to want to know how much disposable income that you have at the end of every month. The necessary living expenses that they will allow are governed by the Department of Labor. There are national and geographical regional standards already set up by the Internal Revenue Service.
IRS will then add the sum total of your assets plus the excess disposable income times 12 as a settlement basis for most offers in compromise.
IRS will want a completed 433-OIC which you can find on our website and they will want all supporting documentation to verify all the income and expenses.
IRS spends a considerable amount of time working in offer in compromise. As a general rule and offered compromise takes about 20 to 30 hours work of worth of work for the IRS closing agent. The average closing time is anywhere from 6 to 9 months.
Any taxpayer who wants to go ahead and settle their back tax debt should walk through the pre-qualifier program that IRS has on offers in compromise. You can find that pre-qualifier tool on our site. This is one of the best methods to find out if you can settle with the Internal Revenue Service.
I would recommend that any taxpayer who wants to learn more on the different methods or how to settle their back taxes with the Internal Revenue Service to contact us for free initial consultation and we will review their case for them.
What is an offer in compromise or settling with the Internal Revenue Service
An offer in compromise/ tax debt settlement allows you to settle your tax debt for less than the full amount you owe.
It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. IRS will consider your unique set of facts and circumstances. IRS will specifically look at your:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
The Internal Revenue Service 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.
The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications. You should consider checking BBB ratings and also check out the experience of the tax professional that will be working your case.
Make sure you are eligible for an offer in compromise or tax debt settlement
Before the Internal Revenue Service can consider your offer, you must be current with all filing and payment requirements.
In Bankruptcy?
You are not eligible if you are in an open bankruptcy proceeding.
Submitting your offer/settlement
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:
a. Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
b. Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
c. $150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a payment option to pay the back taxes
Your initial payment will vary based on your offer and the payment option you choose:
Lump Sum Cash Payment:
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 Payments:
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer.
If accepted you must 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.
While your offer/method 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.
Other factors to consider
a. A Notice of Federal Tax Lien may be filed;
b. Other collection activities are suspended;
c. The legal assessment and collection period is extended;
d. Make all required payments associated with your offer;
e. You are not required to make payments on an existing installment agreement; and
f. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
To summarize, the most important thing to know about paying your back taxes and settling with the Internal Revenue Service is to understand the how and the method of tax debt settlements.
That’s why we are critical to walk to through the pre-qualifier tool on our website to make sure you are eligible for the IRS offer in compromise tax debt settlement. It is also critical you to talk to a tax professional expert in back tax matter settling with the IRS.
There are a lot of scam artists out there so make sure you check out the credentials of person who will be directly working your case
