Fresh Start Tax LLC A Professional Tax Firm “A” Rated by the Better Business Bureau Former IRS Agents and Tax Managers
While many tax firms claim to settle cases, the pure truth, many are ripping off thousands of taxpayers. Be aware of the schemers. IRS Tax Settlements
Be on the lookout when calling a tax resolution company that you are not talking to a salesperson. Immediately ask the person you are speaking to of their IRS experience. Chances are they have never been in an IRS office yet only work for the IRS. These sales people simply do not know the IRS tax settlement procedures. The sales people are there to collect a commission on their sale.
Ask of their work experience at IRS. The best IRS Tax settlement results can be gotten by former IRS Agents who know the tax law and the current changes in the tax system and IRS Tax settlement procedures.
A True Professional Tax Company will give you the truth about tax settlements. Here are the statistics:
Tax Year 2009 Offers Received 52,000 Offers Accepted 11,000
Tax Year 2008 Offers Received 44,000 Offers Accepted 11,000
Total number of Offers received for tax year 2009 was 52,000, an 18% increase from 2008. Total number of Offers accepted by the IRS remained at 11,000, putting the acceptance rate at around 20% of the total Offers submitted in 2009.
IRS Tax Settlement agreements can be in different forms:
a. Hardship Settlements cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to met your current expenses. IRS will use the National Standards Program to assess hardship.
b Payment Agreements are agreed upon monthly installment payments to the IRS.
c. Offer in Compromise. 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.
2. Doubt as to Liability – A legitimate doubt exists 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.
Insider information
1. The average OIC take 6-9 months to work.
2. If you have a small business that is part of the offer settlement it will be a war to get IRS to accept the OIC.
3. Make sure your offer filing is timed so that you file your offer at the time of least income and highest expenses.
4. Have all required documents attached to the offer to reduce your time in offer status and so IRS does not do extra digging.
5. Have a former IRS Agent review your case for the lowest possible settlement.
