We are composed of AFFORDABLE former IRS agents and managers who have over 65 years of direct work experience in the local, district, and regional tax offices of the IRS. Since 1982.

There are various ways of paying back taxes owed to the Internal Revenue Service and most are dependent on your current financial statement or state of affairs.

Sometimes you have other options than making payment plans with the IRS. It is best to know all your options before you make a concrete decision.

Many times taxpayers who need payment plans may find themselves in a hardship situation cannot afford to pay but because of their fear of Internal Revenue Service they may think that is the only option other taxpayers may want to learn that they can settle their tax debt for pennies on the dollar.

They may be a qualified candidate through the offer in compromise program.

In most cases in which a client has not paid back taxes there are several options available after the taxpayer completes a current financial statement on form 433F.

That financial statement must be completely documented along with bank statements, pay stubs, copy of all expenses and receipts matching those expenses.

Once IRS reviews your current financial statement IRS will apply the national standard tests of allowable expenses that the Service feels necessary in certain regions and counties in the United States.

IRS will use those standards and determine the type settlement that will be applicable in your situation. We can explain these standards when you speak to us.

Full compliance checks by the Internal Revenue Service.

As a former IRS agent and teaching instructor it was mandated by the Internal Revenue Service we conduct what is commonly known as a full compliance check.

A full compliance check means that Internal Revenue Service will pull up a complete history of both individual and business tax summaries.

IRS will want to make sure that all tax returns are filed and are going on the system so they can work the case all as one.

IRS will require an individual financial statement, business financial statements if necessary and will want to review your last years  tax return as well as six months worth of bank statements.

If you are contacted by Internal Revenue Service and have unfiled tax returns make sure they are in the process of being prepared and put on the system because IRS will not close your case unless you’re in full compliance.

The different settlement options for back taxes.

1. After review of your current financial statement, IRS may deem you to be in a currently not collectible status, this means the Internal Revenue Service will suspend your case for two or three years and bring it back out to the field at a later point in time in which they will rework the case and asked for a new financial statement.

2. IRS may determine that you are a monthly installment candidate.

Over 6.5 million taxpayers enter into monthly installment payments each and every year and believe it or not at least a third of those taxpayers who enter into those agreements break them.

3. The other options include filing offer in compromise to settle your tax debt.

The offer in compromise is a long process and a very specific process. Your greatest chance of acceptance if you are a qualified candidate is through a true tax professional company knows the system and are well experienced in the process.

As a former IRS agent and teaching instructor I taught new IRS agents this program.

You should know there is an IRS pre-qualifier tool for those wanting to file an offer in compromise.

The Offer in Compromise Option

If you want to settle your back taxes, IRS will require a current financial statement along with full documentation.

IRS will require form 433OIC and form 656OIC to be fully documented and complete before the submission of an offer in compromise.

Select a payment option for IRS Debt Settlements

Your initial payment will vary based on your offer and the payment option you choose:

• The Lump Sum Cash:

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.

• The Periodic Payment:

Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer.

If accepted, 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. See your application package for details.

Understand the OIC process to IRS Tax Debt Settlement

While your offer in compromise 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);

• A Notice of Federal Tax Lien may be filed;

• Other collection activities are suspended;

• The legal assessment and collection period is extended;

• Make all required payments associated with your offer;

• You are not required to make payments on an existing installment agreement; and

• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

You must have all tax returns filed before IRS will consider you settling your tax debt with an offer in compromise. We can prepare all back tax returns with little or no records.

Call us today for a free initial tax consultation and hear the truth about your case  and will explain all the option for taxes owed.