by Fresh Start Tax | Jul 7, 2020 | Tax Help
A very interesting fact is happening, IRS is accepting less offers in compromise. In 2018 the IRS received 59,000 offers an accepted 23,000.
Sadly in 2019 the IRS received 54,000 offers in compromise and accepted 17,000.
The question is, What can be contributing to this fact?
As a former IRS agent teaching instructor with Internal Revenue Service I think there are several factors that can be contributing to less offers in compromise being accepted.
The offer in compromise is an art and everybody is thinking the IRS will accept offers in compromise for pennies on the dollar when they do not qualify.
I believe much of this trend is due to the advertising that many companies are promoting is that they can settle tax debt no matter what the facts and circumstances.
With that said, I urge all taxpayers to fill out the IRS pre-qualifier tool to find out if in fact of eligibility for the offer in compromise.
The pre-qualifier tool is found on our website. Or you can call us for a free initial tax consultation.
Other factors that contribute also is the quality of the offer in compromise.
I have heard from Agents that work offers taxpayers and so called tax professionals do not understand the factors that are involved for the IRS to settle tax debt.
There are many nonprofessionals and companies who have no idea what they’re doing filing offers in compromise and charging large sums of money and promising taxpayers they can get their tax debt cases settled.
However, it appears IRS is clamping down to make sure taxpayers are truly qualified before their offer in compromise will be accepted.
I urge everyone to speak to somebody that has a lot of IRS experience and that are experts in this matter before they pay money to a tax professional.
When offers are not accepted it is because of a couple reasons.
1. Taxpayers must be current in filing and with estimated or withholding taxes in the year that they file the offer, and,
2.The documentation they are sending and with the offer in compromise is not consistent with the financial statement.
Most professionals and taxpayers do not know how to document the financial statement and with that the Internal Revenue Service. If it is not documented IRS will immediately reject the offer in compromise.
It is very important for the taxpayer to understand that their financial statement which is the key source for IRS to rejecting or accepting the offer.
If you have any questions about an offer in compromise you can call us today.
Fact :You should be interested to know that the average settlement last year was $17,000.
Why is IRS Accepting Less Offers in Compromise, Former IRS Agent, Call me to learn more.
by Fresh Start Tax | Jul 7, 2020 | Tax Help
There are very specific keys to get IRS Offer in Compromise accepted.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 and I am an expert in the Offer in compromise.
The IRS Offer in Compromise
Get Your Offer ACCEPTED by using this very important tips, they are a must.
1. There is an IRS pre-qualifier tool. Use It! It saves time and money.
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 is an art to fill this out for acceptance
4. What documentation will IRS need to accept your offer in compromise
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 months 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.
They will review what does not make sense.
5. How does IRS know your telling the truth and my financial statement? BEWARE
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.
You can pull up. your own Accuriant report.
On larger cases IRS or use much more due diligence than on smaller cases.Larger the case, the more due diligence.
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.
You can pull up and IRS tax transcript and find out the statues dates
s
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. YES, the worst financial season.
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.
There is an art to get your OIC accepted, call us to learn more.
Keys To Get Offers in Compromise Accepted, Ask a Former IRS Revenue Officer Agent
by Fresh Start Tax | Jul 6, 2020 | Tax Help
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.
You should know that there is an IRS pre-qualifier tool and I suggest any taxpayer wishing to get an offer in compromise accepted should walk through the pre-qualifier tool to make sure they are not being ripped off.
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 2, 2020 | Tax Help
Most people have no idea the offer in compromise has terms attached with it because they fail to read the back about the terms of acceptance.
I am a former IRS agent revenue officer as well as a teaching instructor when I worked at Internal Revenue Service.
This has hurt many taxpayers if these terms are not adhered to for the offer in compromise, if these terms are broken for offer in compromise, your case goes into default and back into the field full for collection.
As guess, I imagine 20% of the accepted offers in compromise come back to the field because people are not aware of these terms that you find on the back page of the offer.
Many practitioners are unaware or failed to notify taxpayers regarding the terms that IRS uses.
It is very important you understand these terms so you’re accepted offer in compromise stays just that, accepted.
If the offer in compromise comes back to the field is like it was never accepted and the amount that you owe is higher because IRS has assessed more penalties and interest on the deficiency.
Make sure you’re accepted offer in compromise does not return back to haunt you.
The Terms Offer in Compromise
If the IRS accepts the taxpayer’s offer, the taxpayer will have agreed to fully comply with the tax laws.
Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
If the taxpayer doesn’t abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When the IRS terminates an OIC, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.
If this has happened to you, give us a call today I will find out if we can get your offer in compromise reinstated.
Accepted Offers in Compromise Can Default, Former IRS Agent
by Fresh Start Tax | Jul 2, 2020 | Tax Help
Most people have no idea the offer in compromise has terms attached with it because they fail to read the back about the terms ofacceptance.
This has hurt many taxpayers if these terms are not adhered to for the offer in compromise, if these terms are broken for offer in compromise, your case goes into default and back into the field full for collection.
As guess, I imagine 20% of the accepted offers in compromise come back to the field because people are not aware of these terms that you find on the back page of the offer.
Many practitioners are unaware or failed to notify taxpayers regarding the terms that IRS uses.
It is very important you understand these terms so you’re accepted offer in compromise stays just that, accepted.
Offer in Compromise Terms
If the IRS accepts the taxpayer’s offer, the taxpayer will have agreed to fully comply with the tax laws.
Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
If the taxpayer doesn’t abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When the IRS terminates an OIC, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.
If this has happened to you, give us a call today I will find out if we can get your offer in compromise reinstated.
Term For The Offer in Compromise by a Former IRS Offer in Compromise Revenue Officer
