by Fresh Start Tax | Jul 16, 2020 | Tax Help
I am a Sebring resident and a Former IRS Agent & Teaching Instructor. Contact me if you have an IRS questions. Ask for Mike Sullivan.
There are different Ways to Solve Owing Back IRS Debt Problems to get tax relief for back taxes.
We will also walk through all the IRS programs to see what you can qualify for.
If you have balance due on back taxes and are looking to set up a payment agreement, file firm offer in compromise to settle your back tax debt or you need to file back tax returns, call us today for a free initial tax consultation.
As a Former IRS Agent, I worked and taught the settlement programs at IRS.
We have worked out of the local, district, and regional tax offices of the Internal Revenue Service.
How does IRS dispose of Tax Debt Cases?
The 5 ways or programs for IRS Tax Debt are the following:
1. By Payment in full,
2. By monthly Payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (this is how your completely eliminate the tax debt)
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
Upon your initial free tax consultation we will walk through the various programs and let you know the easiest way to resolve your back tax debt.
The most important aspect of working tax debt cases is completely dependent on the individual or business financial statements. It is the most important factor.
Your current documented financial statement determines all.
IRS uses a very simple formula to determine their settlement process.
It is all about your assets and your income and your current necessary living expenses. There is a very specific formula.
IRS only allows certain expenses that are considered necessary living expenses.
There are charts available on what IRS allows. Anything not on those charts are disallowed and this is what trips out most taxpayers.
A simple review of your current financial statement and we can let you know the different programs you may be eligible for.
You will need to complete form 433F or form 433A for us to make a current determination. IRS will only use their financial statements.
It is critically important to know that you cannot pay less taxes unless you qualify for the offer in compromise program.
IRS has a very specific formula that they use to compute the offer in compromise.
The only way you can pay less tax is through the offer in compromise program. There is also an IRS pre-qualifier form.
I have over 40 years in this industry and it is critical if you want to settle your tax debt for the lowest possible amount you should go to true tax professionals.
Important information:
All your tax returns will have to be filed before IRS will work your offer in compromise.
If you need help with your tax preparation call us and we can have a staff of Experts accountants and tax preparers complete all returns with or without records.
Also beware that many times the Internal Revenue Service want to make sure you are current in your withholding tax or your estimate tax payments are they will not close your work your case until you become fully compliant.
Beware of most IRS tax settlement services companies.
We have been in this industry a long time there are many good companies in as many bad tax settlement service companies. For you to evaluate in IRS tax settlement service company you must ask to speak directly to the person who will be working your case.
Generally, when you call a tax services company, you are speaking to what is called a closer. That person is a salesman and will actually bill you and charge you for the services then your case gets passed down the line.
When you call fresh start tax, you will speak directly to the person who works your case and that person can give you a true evaluation on how and if IRS will accept an IRS tax settlement .
Check out the BBB rating and make sure you have a true tax professional working your case.
I suggest you always hire someone who’s worked at the IRS because they are aware of the methodologies required to get your offer in compromise through the system.
Different ways to Solve Back IRS Taxes Debt or Back Tax Issues
As a general rule, you may apply for hardships, payment agreements or settle for an offer in compromise to settle your debt for pennies on the dollar.
We will review with you your financial statement and let you know what the lowest possible settlement IRS will accept. 40% of all persons that owe back taxes are issue into a hardship or are currently not collectible status and 6.5 million taxpayers enter into annual payment agreements.
The other way to pay less tax is for the ten-year statute of limitation to run out and your debt will be written off by the Internal Revenue Service.
If you want to file an offer in compromise I thought you’d like to know what the statistics are.
Last year over 78,000 offers in compromise/IRS tax debt settlements were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Approximately 40,000 taxpayers last year paid less tax.
At the current time there are 7500 cases in the offer queue. The average wait time is nine months. There are not enough IRS employees to work the current inventory.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement.
We will not file for an offer in compromise unless you are a true candidate for the program. You must qualify.
There is a pre qualifier tool to find out if you are a settlement candidate for income or business tax debt.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program. However this program is not for everybody.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
There are many firms that take your money and then let you know after the fact you are not qualified. you need to know before hand whether you have a fighting chance. Being a former IRS agent employee gives you a huge advantage of having the review your offer in compromise to settle your tax debt.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms pr
Call us today for free initial tax consultation and speak to a true IRS tax expert who will walk you through the process of how to negotiate with IRS over back taxes and see if you qualify to pay less taxes for an IRS tax settlement.954-328-3501
by Fresh Start Tax | Jul 15, 2020 | Tax Help
Michael Sullivan Fresh Start, Tax Expert, Former IRS Agent, Former Fox Business and ABC contributor. Explains the Offer in Compromise.
The IRS Offers in Compromise: I was a former IRS agent and teaching instructor with the Internal Revenue Service. I worked in the collection division and was a seasoned, experienced, and awarded Revenue Officer. I worked the Offer in Compromise Program.
I accepted and rejected Offer in Compromise. I know the system.
Offers in compromise are a true specialty.
You will find the tips below that can make the difference of having your offer accepted or denied.
The IRS Offer in Compromise
Get Your Offer ACCEPTED by using these tips.
1. There is an IRS pre-qualifier tool. Use It!
You can find the pre- qualifer tool on our website site or find it on the government website. Before you give your money to any company who claims they can settle your debt for pennies on the dollar, you best fill out the IRS pre-qualifier tool or call and experience firm to review your case to make sure you are in fact qualified.
One call to us and you can find out within 5 minutes.Experienced tax practitioners who work many offers in compromise to give you the various options on how your subtle your tax debt by the time they finished the last page of a review of your offer in. compromise
2. How long does it take for professional to let you know your qualified to have your OIC accepted?
An experienced tax professional can let you know within about a minute whether you are qualified to settle your tax debt. By the time the person reviews the last page they will almost instantaneously let you know where you stand.
3. What is the most important element of getting your offer in compromise accepted?
Your documented financial statement, 433oic, is the absolute key to getting your offer in compromise accepted.
That is the tool that the Internal Revenue Service uses to accept or deny your offer in compromise.
It takes a skilled tax professional to make sure it is completed with all the proper documentation so IRS can accept.
4. What documentation will IRS need?
When you fill out the IRS financial statement, IRS will need complete documentation for any dollar number that is placed on the financial statement.
IRS will also need at least six month worth of bank statements( sometimes more), pay stubs and anything relative to any number that is on the 433oic form.
That form MUST be completely documented. Everything must match up. IRS will be looking for inconsistencies on things that are not matching up on the financial statement and documentation.
As an example, does your tax return, much up to your cost of living, your bank statements, your tax return,and your bank statements.
The Agents will look closely at any inconsistencies.
5. How does IRS know your telling the truth and my financial statement?
The Internal Revenue Service has many search engines to use to find out all about you. The Internal Revenue Service uses internal search engines as well as external searches to find out about you. IRS will use the Accuriant search engine as well as credit bureaus.
On larger cases IRS or use much more due diligence than on smaller cases.
6. Is there a specific formula that IRS uses to accept the offer in compromise?
Absolutely, there is a very simple formula.
IRS wants the sum total of your assets and they want to know what the value of your income and expenses. You must understand this formula.
Let me explain.
IRS will look at all your assets and find out what the fair market value of those assets are. Real estate will be discounted by 20%. IRS will use that as a base amount to compute the asset part of what is needed for case settlement.
IRS will look at your income and expenses and make sure you fit within the national standards. As you complete the 433oic IRS will apply the national standards expenses against your income. If there is a surplus and as an example I will use $500, IRS will take that $500 and multiply it by the life of the statute.
IRS will add the fair market value of your assets plus the value of your income and add them together. That will be the base amount for the IRS to accept the offer in compromise.
7. What is another important factor for getting your offer in compromise accepted?
I cannot tell you how important timing is. It is BIG.
It is best to make sure you’re not in the high season of income. It is best to file an offer in compromise when you are doing the worst.
As an example, if you are real estate salesman and you have just earned a $40,000 commission and you want to file for an offer in compromise you have jeopardized your offer because you’ve just made a large amount of money and that new income you received is going to jack up your average income for settlement.
Therefore, understanding where your income and expenses are will determine the best time to file the offer in compromise. The offer in compromise requires a great deal of planning on when the best time to file.
8. How long does an offer to compromise take to process?
You must relax.
Currently the offer in compromise takes about nine months to process.Due to the number of cases it could take longer, you must be patient.
You will first receive a letter that they have received your offer and then you must wait to the offer is assigned and sent to a particular offer specialist to work your case.
It is best to make sure your offer in compromise is fully documented when sending so they don’t have to send it back because if they do you you may have to start the clock all over again.
9. Another important factor to keep in mind.
Before you send in your offer, you must’ve filed all current tax returns.
The first thing that IRS will do is pull up a summary of your case history and all tax returns must be filed or IRS will send the case back.
Also you must be current on withholding or estimate payments or IRS will immediately reject the offer in compromise because you are not current and up-to-date.
Do not overlook this is a sure way to get your offer sent back to you.
10. Fact: Accepted Offers in Compromise are a matter of Public Records!
The reason IRS is so picky about offers in compromise is because they are a matter of public record.
That’s right, for 18 months after your offer in compromise is accepted your file goes to one of six regional tax sites for public review.
Get Your Offer in Compromise Accepted. Speak or Talk To a Former IRS Agent Revenue Officer
by Fresh Start Tax | Jul 15, 2020 | Tax Help
I am a Sebring resident and a Former IRS Agent & Teaching Instructor. Contact me if you have an IRS questions. Ask for Mike Sullivan.
There are different Ways to Solve Back IRS Debt Problems to get tax relief for back taxes.
We will review with you the various ways to help, get rid of, relieve or eliminate you of your current IRS tax debt in obligation. We can file all back taxes as well.
We will also walk through all the IRS programs to see what you can qualify for.
If you have balance due on back taxes and are looking to set up a payment agreement, file firm offer in compromise to settle your back tax debt or you need to file back tax returns, call us today for a free initial tax consultation.
We have worked out of the local, district, and regional tax offices of the Internal Revenue Service.
We are true IRS Experts in the area of IRS tax settlement services.
How does IRS dispose of Tax Debt Cases?
The 5 ways or programs for IRS Tax Debt are the following:
1. By Payment in full,
2. By monthly Payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (this is how your completely eliminate the tax debt)
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
Upon your initial free tax consultation we will walk through the various programs and let you know the easiest way to resolve your back tax debt.
The most important aspect of working tax debt cases is completely dependent on the individual or business financial statements.It is the most important factor.
Your current documented financial statement determines all.
IRS uses a very simple formula to determine their settlement process.
It is all about your assets and your income and your current necessary living expenses. There is a very specific formula.
IRS only allows certain expenses that are considered necessary living expenses.
There are charts available on what IRS allows. Anything not on those charts are disallowed and this is what trips out most taxpayers.
A simple review of your current financial statement and we can let you know the different programs you may be eligible for.
You will need to complete form 433F or form 433A for us to make a current determination. IRS will only use their financial statements.
It is critically important to know that you cannot pay less taxes unless you qualify for the offer in compromise program.
IRS has a very specific formula that they use to compute the offer in compromise.
The only way you can pay less tax is through the offer in compromise program. There is also an IRS pre-qualifier form.
I have over 40 years in this industry and it is critical if you want to settle your tax debt for the lowest possible amount you should go to true tax professionals.
Important information:
All your tax returns will have to be filed before IRS will work your offer in compromise.
If you need help with your tax preparation call us and we can have a staff of Experts accountants and tax preparers complete all returns with or without records.
Also beware that many times the Internal Revenue Service want to make sure you are current in your withholding tax or your estimate tax payments are they will not close your work your case until you become fully compliant.
Beware of IRS tax settlement services companies.
We have been in this industry a long time there are many good companies in as many bad tax settlement service companies. For you to evaluate in IRS tax settlement service company you must ask to speak directly to the person who will be working your case.
Generally, when you call a tax services company, you are speaking to what is called a closer. That person is a salesman and will actually bill you and charge you for the services then your case gets passed down the line.
When you call fresh start tax, you will speak directly to the person who works your case and that person can give you a true evaluation on how and if IRS will accept an IRS tax settlement .
Check out the BBB rating and make sure you have a true tax professional working your case.
I suggest you always hire someone who’s worked at the IRS because they are aware of the methodologies required to get your offer in compromise through the system.
Other ways to Solve Back IRS Taxes Debt or Back Tax Issues
As a general rule, you may apply for hardships, payment agreements or settle for an offer in compromise to settle your debt for pennies on the dollar.
We will review with you your financial statement and let you know what the lowest possible settlement IRS will accept. 40% of all persons that owe back taxes are issue into a hardship or are currently not collectible status and 6.5 million taxpayers enter into annual payment agreements.
The other way to pay less tax is for the ten-year statute of limitation to run out and your debt will be written off by the Internal Revenue Service.
If you want to file an offer in compromise I thought you’d like to know what the statistics are.
Last year over 78,000 offers in compromise/IRS tax debt settlements were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Approximately 40,000 taxpayers last year paid less tax.
At the current time there are 7500 cases in the offer queue. The average wait time is nine months. There are not enough IRS employees to work the current inventory.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement.
We will not file for an offer in compromise unless you are a true candidate for the program. You must qualify.
There is a pre qualifier tool to find out if you are a settlement candidate for income or business tax debt.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program. However this program is not for everybody.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
There are many firms that take your money and then let you know after the fact you are not qualified. you need to know before hand whether you have a fighting chance. Being a former IRS agent employee gives you a huge advantage of having the review your offer in compromise to settle your tax debt.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlements.
The Offer in Compromise Program
If you have any questions or issues about the offer in compromise program to settle or negotiate your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise.
It is possible for the IRS to spend over 20-40 hours working an offer in compromise.
IRS uses the Accuriant search engine, Google in a variety of other searches to check on assets and histories of taxpayers and businesses.
You want to make sure you are accurate and truthful on your financial statement.
The higher the dollar case the greater the due diligence. Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
One base rule for the offer in compromise program. IRS is only concerned about your income and assets. This includes your equity in your home, pension plans are IRA’s.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
Below you will find out what you need to know about the offer in compromise program.
The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. The internal revenue service will immediately reject your offer in compromise. Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
When IRS determines that they will settle with you, IRS will consider your unique set of facts and circumstances: these are just some
• Ability to pay,
• Income,
• Expenses; and,
• Asset equity.
IRS 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.
Right now that is appox. 9 months
Make sure you are eligible for the offer in compromise to settle your back IRS tax debt.
Before IRS can consider your offer, you must be current with all filing and payment requirements.
You are not eligible if you are in an open bankruptcy proceeding.
Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Submit your offer in compromise to settle your IRS tax debt
You’ll find step-by-step instructors and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Your completed offer package will include:
• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.
Select a payment option on an IRS offer settlement
Your initial payment will vary based on your offer and the payment option you choose:
• 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.
• Periodic Payment:(most common)
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.
Understand the process to settle your tax debt on an IRS settlement offer to pay less tax
While your offer to pay less taxes 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.
Call us today for free initial tax consultation and speak to a true IRS tax expert who will walk you through the process of how to negotiate with IRS over back taxes and see if you qualify to pay less taxes for an IRS tax settlement.954-328-3501
Let Former IRS Agents help you through IRS Tax Debt Settlements, File Back Tax Returns, Offers in Compromise, Monthly Payment Plans, or tax IRS Hardships
by Fresh Start Tax | Jul 15, 2020 | Tax Help
When and How the Tax Lien Arises
[sullupic]
To the surprise of many a Federal Tax Lien shows up on a credit report, by mail, or loads of companies start tell you, a Federal Tax Lien has been filed.OUCH
Not a good day!
The federal tax lien arises when any “person” liable to pay any federal tax fails to pay the tax after a demand by the US Government for payment.
IRC § 6321. states this:
For federal tax law purposes, a “person” is defined to include individuals, trusts, estates, partnerships, associations, companies, and corporations. IRC § 7701(a)(1).
The lien is effective from the date the Government assesses the tax.that is the day IRS puts you on there computer system, that’s also called the TC 150 date in IRS Code.
If the taxpayer neglects or refuses to pay the assessed tax, then the lien is deemed to relate back to the assessment date.
Under IRC § 6322, The Service is not required to file a NFTL in order for the tax lien to attach. As discussed later in the text, the Service may need to file a NFTL in order to have priority over the taxpayer’s other creditors.
How Long is the Duration of the Federal Tax Lien
The federal tax lien continues until the liability for the amount assessed is satisfied or becomes unenforceable by reason of lapse of time, i.e., passing of the collection statute expiration date (CSED).
Under IRC § 6322., generally, after assessment, the Service has ten years to collect the tax liability. IRC § 6502.
However, there are some circumstances which may extend or suspend the ten-year collection period.
IRC § 6502 provides for an extension of the collection period in two situations:
The statute of limitations was extended at the same time an installment agreement was entered into.
In this case, collection action may be taken until the 89th day after expiration of the installment agreement. IRC § 6502(a)(2)(A).
Note:
The Service only secures extensions on partial payment installment agreements and only in limited situations. See IRM 5.14.2.1.3.
Release of a levy under IRC § 6343 is accompanied by an agreement to extend the statute of limitations to a specific date and that date has not yet passed. IRC § 6502(a)(2)(B); Treas. Reg. § 301.6343-1(b)(2)(ii)(D).
IRC § 6503 provides for the suspension of the collection period in several situations.
The more common situations are the following:
1.Issuance of a statutory notice of deficiency, IRC § 6503(a).
2. Assets of the taxpayer in control or custody of a court, IRC § 6503(b).
3. Taxpayer is outside of the United States for a continuous period of at least 6 months, IRC § 6503(c).
4. An extension exists for the payment of an estate tax, IRC § 6503(d).
A wrongful seizure of property or a wrongful lien on property, IRC § 6503(f).
5. A taxpayer bankruptcy filing triggering the automatic stay, IRC § 6503(h). Insolvency or Area Counsel can identify whether the automatic stay is in effect for any particular period.
Note:
If the United States files suit and reduces the tax claim to judgment, then the collection period does not expire until the judgment has been satisfied.
United States v. Overman, 424 F.2d 1142 (9th Cir. 1970); United States v. Hodes, 355 F.2d 746 (2nd Cir. 1966).
State statutes of limitations cannot affect the duration or existence of the federal tax lien. Overman, 424 F.2d at 1147.
by Fresh Start Tax | Jul 15, 2020 | Tax Help
You have a couple options to get a release of your Federal Tax Lien.
Michael Sullivan Fresh Start Tax Expert
Due to your circumstances there are basically two options:
1. Did you pay your Federal Lien in full, or,
2. Did it release by statute?
If it has released by statute?
The Internal Revenue has this self releasing aspect right in front of your eyes, however taxpayers and practitioners are kinda blind this may be because it’s right in the middle of the federal tax lien in big bold letters. plus, it is the last place you would look for release of the federal tax lien.
Many have no idea where to look for it, it is a big as day but it escapes our eye because that is the last place we expect to look.
The is a big catch, a big catch.
Before you start throwing a party and showing your neighbors or got a release of the federal tax lien, you must best to pull an IRS transcript up to make sure the statutes of limitations have expired.
The normal statute of limitations on any federal tax lien is 10 years from the original date of assessment, however certain things such as:
1. offers in compromise,
2.CDP’s,
3. litigation,
4.bankruptcies and,
5. other such actions extend the IRS the normal statutes limitations.
You must pull your transcript up to find out.
I would would pull your tax transcripts around three months out to be sure,
If you need a transcript call us today we can read the transcript and acknowledge whether your statute of limitations is expired on this.
So where do you look to find out
The self releasing aspect of the federal tax lien is right in the very middle of the federal tax lien about four sections down and it says this in bold print.
It will say;
Important release information; for each assessment listed below, unless the lien is refiled by the date given in column E, this notice shall, on the day following such date, operate as a certificate of release as defined in IRC 6325
One last thing, I promise:
The IRS has a 30 day period at the end of the statutory period to refile the lien.
The 30 day period is given if IRS has reason to believe they can collect there monies.
You will usually be alerted to this fact is in fact happening and these do not come out of the blue.
This very rarely happens.
Have any questions, always best to call a former IRS agent.
We have been in business since 1982.
If you are paying the Federal Tax Lien in full you can contact the Cincinnati Service center at:
Centralized Lien Operation — To resolve basic and routine lien issues: verify a lien, request lien payoff amount, or release a lien, call 800-913-6050 or e-fax 855-390-3530.
If you are calling the CLU, be patient, they are very backed up.
We have much more to tell you if you need help getting your Federal Tax Lien Released.
