It’s all about knowing the system and the best course of action anytime you’re dealing with the Internal Revenue Service.
We are a local Florida tax firm that specializes in IRS and State tax resolutions.
We’ve been practicing since 1982 in our A+ rated by the Better Business Bureau.
If you need to make arrangements with the Internal Revenue Service it is in your best interest to consider using former IRS agents who know the systems, the protocol and all the available different arrangements that can be made with the Internal Revenue Service.
Using Former IRS Agents
Our firm has over 60 years of working directly for the Internal Revenue Service in the local, district and regional tax offices of the Internal Revenue Service. We also were former teaching instructors with the IRS and also have taught tax law as part of our employment with IRS.
We have also been in management, supervisory and teaching positions and therefore are aware of all IRS programming and the best way to achieve results.
Besides having former IRS agents on staff we are also comprised of tax attorneys and certified public accountants for more complicated cases.
When you know the system and a person’s financial condition it is easy to fit them in a program/arrangement that makes sense both to the Internal Revenue Service and to the client.
When making an arrangement with the Internal Revenue Service it’s always prudent to review the person’s financial condition and to find out just where they are financially before entering into any agreement/arrangement with the Internal Revenue Service.
Other Options
Making payment arrangements with the Internal Revenue Service to pay your tax may not be your very best option.
The Internal Revenue Service has two other programs that are available to taxpayers and it is often best to find out if they fit in one of the two other categories before you go rushing off making a payment agreement with the Internal Revenue Service.
Many taxpayers wish to make these payments or arrangements with the Internal Revenue Service but at the current time can qualify for a current economic tax hardship.
The Internal Revenue Service can place your case into a currently not collectible file due to a lack of income and high expenses.
This can allow for breathing room for the taxpayer and not be strapped by a payment they really cannot afford to make.
IRS does not publicize this program very much but it is called currently non-collectible status. The Internal Revenue Service will need a current financial statement fully documented to qualify for this arrangement with the Internal Revenue Service. That financial statement must be put on a form 433-F.
You will also need to produce copies of your bank statements, monthly income and expense receipts.
When a  case is placed into currently not collectible it usually stays in a frozen or suspense status  for 2 to 3 years and then comes back into the automated collection system for another review. It is important to remember these cases are not permanently put in non-collectible. If you have a spike in income you can expect IRS to bring your case back out for another financial review. It is only good for short-term planning.
Offer in compromise
You may also qualify to settle your tax debt by filing an offer in compromise with the Internal Revenue Service.
The offer of compromise is a much more complicated process however 38% of all individuals who file an offer in compromise get accepted. Most of the offers in compromise and are accepted by the Internal Revenue Service are submitted to the IRS by professional tax firms know the process in the system.
It is important to know that not everyone qualifies for an offer in compromise so we will carefully review your case to make sure that your offer in compromise as a true chance of acceptance.
You must be careful not to be ripped off by other Internet firms claiming that they can settle your debt for pennies on a dollar.
While it is possible you must use extreme caution to make sure you do qualify. You will find on our site a pre-qualifier tool for the OIC that you can walk through by yourself to make sure you have a good fighting chance of getting your offer accepted.
The average settlement for her offer in compromise is $.14 on a dollar but each case is  based on its own merit. One of the base rules for Internal Revenue Service is you must be offered the Internal Revenue Service the liquidation value of all your assets minus your liabilities in them.
It is best to contact us and let us fully review your financial situation and find out your endgame strategy before rushing off and making any arrangement with the Internal Revenue Service.
So to be clear, the three possible alternatives exist when you make a closing arrangement with the Internal Revenue Service .
After your financial statement is reviewed your case one will be closed by the IRS with either a:
1. current economic tax hardship,
2. you may be a qualified candidate for offer in compromise/tax settlement , or
3. you can start making monthly payments/arrangements.
Below you will find out about the monthly payment/arrangement program from the Internal Revenue Service.
Monthly payments through an installment agreement
You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately.
However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full.
Before you apply you need too:
File all required tax returns;
Determine the largest monthly payment you can make ($25 minimum); and
Know that your future refunds will be applied to your tax debt until it is paid in full.
Fees for setting up an installment agreement arrangement:
1. $52 for a direct debit agreement;
2. $105 for a standard agreement or payroll deduction agreement; or
3. $43 if your income is below a certain level.
To apply for an installment arrangement agreement
Fresh Start Tax LLC can apply online if you owe $50,000 or less in combined individual income tax, penalties and interest; OR
If you owe more than $50,000, you will also need to complete Form 433-F, Collection Information Statement (PDF).
We will then call the Internal Revenue Service with the detailed information on your financial statement and find an arrangement with the Internal Revenue Service that works for you.
Everything will be based on your financial statement and IRS will make determinations based on your income and your current living expenses.
You will need to be familiar with the national standards tests (chart ) that IRS uses on all cases.
You can find the chart on our website called the national standards.
IRS will apply your income against the national standards to make sure you’re living within your means
Understand your agreement arrangement, avoid default of payments
To keep your account in good standing with the IRS.
You should:
Pay at least your minimum monthly payment when it’s due (direct debit or payroll deductions make this easy);
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 you owe in full and on time (contact us to change your existing agreement if you cannot);
Continue to 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. If your payment agreement goes in the fault there is a good chance you will have to go through this entire process again.
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 the IRS immediately. At FST we will review all the penalties on your case and see if an abatement of the penalty is applicable.
Contact us today to learn more about making arrangements with the Internal Revenue Service. You can call us for a free initial tax consultation and speak directly to a true tax professional.
Before you make a determination about what to do with your IRS situation it is critical you hear all the options so you can make the best informed decision on your individual case.
You can come by and visit our office or Skype us today.
Payment Arrangement with the IRS