by Fresh Start Tax | Feb 22, 2018 | Tax Help
Negotiate IRS Offer in Compromise
I am a former IRS agent and teaching instructors with the Internal Revenue Service. I KNOW THE SYSTEM.
As a former employee of the IRS I taught the offer in compromise program.
As a former instructors I am familiar with every detail of the program and will let you know if you can qualify to negotiate your debt.
I know every possible detail and how to negotiate an offer in compromise and make sure you qualify for the lowest possible amount to negotiate your tax debt.
FST has over 205 years of direct tax experience, 95 years of working for the IRS in the local, district and regional offices.
Being former IRS agent managers and supervisors in the Audit division gives us a unique advantage & can change the result of an IRS tax Audit.
We worked as Agents, Instructors and in Management. We know the settlement techniques and formulas to save your money.
Be worry free, call us today.
It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax Audit and give you the most experienced and successful IRS Tax Audit help.
IRS Audits less that 1% of all taxpayers nationwide.
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less that the full amount owed.
Taxpayers who can fully pay the liabilities through an installment agreement or other means, generally won’t qualify for a OIC in most cases.
estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS won’t accept a OIC unless the amount offered by a taxpayer is equal to or greater that the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. In addition to property, the RCP also includes anticipated future income less certain amounts allowed for basic living expenses.
Reasons for the Offer in compromise
The IRS may accept an OIC based on three grounds:
• First, the IRS can accept a compromise if there’s doubt as to liability. A compromise meets this only when there’s a genuine dispute as to the existence or amount of the correct tax debt under the law.
• Second, the IRS can accept a compromise if there’s doubt that the amount owed is fully collectible. Doubt as to collectivity exists in any case where the taxpayer’s assets and income are less that the full amount of the tax liability.
• Third, the IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there’s no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Forms to Use
When submitting a OIC based on doubt as to collectivity or effective tax administration, taxpayers must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed individuals, and/or Form 433-B (OIC), Collection Information Statement for Businesses.
A taxpayer submitting a OIC based on doubt as to liability must file a Form 656-L.pdf, Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC). Form 656 and referenced collection information statements are available in the Offer in Compromise Booklet, Form 656-B.pdf.
Application Fee
In general, a taxpayer must submit an application fee for the amount stated on Form 656. Don’t combine this fee with any other tax payments.
However, there are two exceptions to this requirement:
• First, no application fee is required if the OIC is based on doubt as to liability.
• Second, the fee isn’t required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the department of Health and Human Services. Section 1 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 1 of Form 656 and check the certification box.
Payment Options to negotiate an Offer in Compromise
Lump Sum Cash Offer
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A “lump sum cash offer” is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum cash offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the application fee. The 20 percent payment is generally nonrefundable, meaning it won’t be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.
Instead, the 20 percent payment will be applied to the taxpayer’s tax liability. The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent payment.
Periodic Payment Offer
An offer is called a “periodic payment offer” under the tax law if it’s payable in 6 or more monthly installments and within 24 months after the offer is accepted.
When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656. This payment is required in addition to the application fee.
This amount is generally nonrefundable, just like the 20 percent payment required for a lump sum cash offer.
Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. These amounts are also nonrefundable.
These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Upon acceptance of a OIC, the taxpayer may no longer designate offer payments to any tax liability specifically covered in the offer agreement.
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration, and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
Offer Terms
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws. 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 collectivity 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 a OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.
Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Right to Appeal
If the IRS rejects a OIC, the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructors on how the taxpayer may appeal the decision to the IRS Office of Appeals. The appeal must be made within 30 days from the date of the letter.
Return of an Offer
In some cases, an OIC is returned to the taxpayer rather that rejected, because the taxpayer didn’t submit necessary information, filed for bankruptcy, failed to include a required application fee or nonrefundable payment with the offer, hasn’t filed required tax returns, or hasn’t paid current tax liabilities at the time the IRS is considering the offer.
A returned offer is different from a rejection because there’s no right to appeal when the IRS returns the offer. However, once current, the offer may be submitted again.
*Note: OIC application received on or after March 27, 2017, are now returned without consideration if taxpayers haven’t filed all required tax returns.
The application fee is returned and any required initial payment submitted with the OIC is applied to outstand ing tax debt. This policy doesn’t apply to current year tax returns if there is a valid extension on file.
Negotiate IRS TAX Debt + Offer in Compromise + Former IRS SETTLEMENT AGENT
by Fresh Start Tax | Feb 21, 2018 | Tax Help
We have been around since 1982 and are A plus rated by the BBB. We are among the BEST! We know the system.
We have 205 years of direct tax experience, 100 years of working for the IRS in the local, district and regional offices.
Being former IRS agent managers and supervisors gives us a unique advantage & can change the result of an IRS any IRS case.
We worked as Agents, Instructors and in Management.
We know the system.Its that simple. We taught the system as Former Agents.
FST has an extremely high level of seasoned experience necessary to best win your case and get you the very best result.
Consider this:
We know the tax rules and IRS internal procedures,
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We were founded by a distinguished, nationally recognized IRS tax expert who has been on both Fox and NBC News.
We are not intimidated by IRS,
The fact is that the IRS may/consultations take advantage of a taxpayer who represents himself, and likewise, if the taxpayer’s advocate is weak.
If the IRS can push and intimidate, they will push and intimidate. We know because we worked for the Internal Revenue Service.
We have a tremendous Better Business Bureau rating especially given the fact we have worked thousands of cases since 1982. We are among one of the highest rated tax defense firms in the country,
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Why Chose Fresh Start Tax + IRS Tax Experts
by Fresh Start Tax | Feb 21, 2018 | Tax Help
Michael Sullivan Fresh Start Tax, IRS Expert.
Mr. Sullivan is an expert in IRS matters. He is available for interviews on IRS matters. He has been on network TV with no affiliation.
His company, freshstarttax.com
Michael D. Sullivan
Former IRS Agent & Teaching Instructor
Michael D. Sullivan is one of the founders of Fresh Start Tax LLC.
He had a distinguished career with the Internal Revenue Service for 10 years.
As a veteran IRS Revenue Officer / Agent, he served as an Offer in Compromise Tax Specialists and Large Dollar Case Specialists. He also collaborated with the U.S. Attorney’s office on undercover operations. Michael received several awards for his work and dedication as a IRS Agent.
During his tenure with the IRS, he was a Certified Tax Instructor who taught out of the Atlanta Regional IRS Training Offices. He also taught out of the local and district offices of the IRS. Mr. Sullivan trained many of the new IRS Agents.
Michael has been in private practice for the last 35 years in the field of Taxpayer Consultation for IRS Audit and Collection tax resolution issues. He often will with corporate and individuals, which involves a wide range of tax issues.
Michael has worked many large complex cases for high net worth individuals and large corporate. Mr. Sullivan is a committed professional with dedicated involvement in the tax profession community as a frequent speaker on the South Florida circuit and also served as an officer and on the Board of the Greater South Florida Tax Council.
Michael has been the program host and moderator for several Internal Revenue Service forums both in the public and professional sectors.
Mr. Sullivan also teaches courses for Attorneys, Lawyers, and CPA’s for continuing education.
For Attorneys and Lawyers, Course number 1708462N to the members who have completed “IRS Tax Resolution”. Florida Bar members can report their CLE credits online at www.floridabar.org.
CPA CE Provider application 1769 and your CPA CE Course application were both approved on 11/28/2017. Your provider number is PVD990 and your course number is CRS22227.
Mr. Sullivan has been a featured speaker in the credit card industry, student loan and the debt settlement vertical as well. He also was one of the featured speakers at the Latino Tax Fest which also featured Nina Olsen, Nation Taxpayer Advocate.
Mr. Sullivan has also appeared on FOX BUSINESS NEWS & NBC.
http://video.foxbusiness.com/v/4147654259001/tips-for-getting-through-to-the-irs/?#sp=show-clips
Michael graduated from St. Thomas University with a B.A. in Pre-Law. He also has attended Knox Theological Seminary.
Mr. Sullivan has obtain a Life Time Achievement Award for Little League Baseball and currently sits on the International Board for the Walk to Emmaus. Michael also is a proud member of the Life Work Leadership program.
Mr. Sullivan was the former District Leader of the United Methodist Church, SE District for the Florida Conference and served on the Board of Lay Ministry.
Michael is very active in the various ministries of his church where he can be found leading and teaching Biblical Studies. He has been the Southeast Florida District Lay Leader of the United Methodist Church and the Florida Annual Conference.
Mr. Sullivan also appeared on Net Grace FM, for the Christian Business Weekly show.
Mr. Sullivan has also received and been awarded “The Diocesan Synod Grand Patroit Diocese Award” in Lagos. Nigeria.
Mr. Sullivan formerly sat on the The Mobil 1 Twelve Hours of Sebring International Raceway Advisory Council (SIRAC).
* Mr. Sullivan has been in private practice since 1982 in South Florida which gave roots to Fresh Start Tax LLC. The firm began as Sullivan & Powell PA and through the years transitioned to its now current form.
by Fresh Start Tax | Feb 21, 2018 | Tax Help
Mr. Sullivan is an expert in IRS matters. He is available for interviews on IRS matters. He has been on network TV with no affiliation.
His company, freshstarttax.com
Michael D. Sullivan
Former IRS Agent
Michael D. Sullivan is one of the founders of Fresh Start Tax LLC. He had a distinguished career with the Internal Revenue Service for 10 years.
As a veteran IRS Revenue Officer / Agent, he served as an Offer in Compromise Tax Specialists and Large Dollar Case Specialists. He also collaborated with the U.S. Attorney’s office on undercover operations. Michael received several awards for his work and dedication as a IRS Agent.
During his tenure with the IRS, he was a Certified Tax Instructor who taught out of the Atlanta Regional IRS Training Offices. He also taught out of the local and district offices of the IRS. Mr. Sullivan trained many of the new IRS Agents.
Michael has been in private practice for the last 35 years in the field of Taxpayer Consultation for IRS Audit and Collection tax resolution issues. He often will with corporate and individuals, which involves a wide range of tax issues.
Michael has worked many large complex cases for high net worth individuals and large corporate. Mr. Sullivan is a committed professional with dedicated involvement in the tax profession community as a frequent speaker on the South Florida circuit and also served as an officer and on the Board of the Greater South Florida Tax Council.
Michael has been the program host and moderator for several Internal Revenue Service forums both in the public and professional sectors.
Mr. Sullivan also teaches courses for Attorneys, Lawyers, and CPA’s for continuing education.
For Attorneys and Lawyers, Course number 1708462N to the members who have completed “IRS Tax Resolution”. Florida Bar members can report their CLE credits online at www.floridabar.org.
CPA CE Provider application 1769 and your CPA CE Course application were both approved on 11/28/2017. Your provider number is PVD990 and your course number is CRS22227.
Mr. Sullivan has been a featured speaker in the credit card industry, student loan and the debt settlement vertical as well. He also was one of the featured speakers at the Latino Tax Fest which also featured Nina Olsen, Nation Taxpayer Advocate.
Mr. Sullivan has also appeared on FOX BUSINESS NEWS & NBC.
http://video.foxbusiness.com/v/4147654259001/tips-for-getting-through-to-the-irs/?#sp=show-clips
Michael graduated from St. Thomas University with a B.A. in Pre-Law. He also has attended Knox Theological Seminary.
Mr. Sullivan has obtain a Life Time Achievement Award for Little League Baseball and currently sits on the International Board for the Walk to Emmaus. Michael also is a proud member of the Life Work Leadership program.
Mr. Sullivan was the former District Leader of the United Methodist Church, SE District for the Florida Conference and served on the Board of Lay Ministry.
Michael is very active in the various ministries of his church where he can be found leading and teaching Biblical Studies. He has been the Southeast Florida District Lay Leader of the United Methodist Church and the Florida Annual Conference.
Mr. Sullivan also appeared on Net Grace FM, for the Christian Business Weekly show.
Mr. Sullivan has also received and been awarded “The Diocesan Synod Grand Patroit Diocese Award” in Lagos. Nigeria.
Mr. Sullivan formerly sat on the The Mobil 1 Twelve Hours of Sebring International Raceway Advisory Council (SIRAC).
* Mr. Sullivan has been in private practice since 1982 in South Florida which gave roots to Fresh Start Tax LLC. The firm began as Sullivan & Powell PA and through the years transitioned to its now current form.
by Fresh Start Tax | Feb 21, 2018 | Tax Help
IRS Tax Audit For Bitcoin + Former IRS Agents, Bitcoin help
As the number and variety of cryptocurrencies on the market continue to grow, so does the scrutiny by government regulators.
The Internal Revenue Service has joined the mix by investigating the ways in which taxpayers report virtual currency transaction .
Congress has gotten in on the action by amending the tax code to close a loophole that allowed cryptocurrency owners to exchange digital currencies without reporting the transaction on their tax returns.
As a result, IRS are coming, beware, stay clean.
For those who are making the decision to invest, what are the questions you should be asking?
Sample examinations for Investors Considering a Cryptocurrency or ICO
Investment
• Who exactly am I contracting with?
◦ Who is issuing and sponsoring the product, what are their backgrounds, and have they provided a full and complete description of the product?
Do they have a clear written business plan that I understand?
◦ Who is promoting or marketing the product, what are their backgrounds, and are they licensed to sell the product?
Have they been paid to promote the product?
◦ Where is the enterprise located?
• Where is my money going and what consultations it be used for? Is my money going to be used to “cash out” other?
• What specific rights come with my investment?
• Are there financial statements? If so, are they Audited, and by whom?
• Is there trading data? If so, is there some way to verify it?
• How, when, and at what cost can I sell my investment? For example, do I have a right to give the token or coin back to the company or to receive a refund?
Can I resell the coin or token, and if so, are there any limitations on my ability to resell?
• If a digital wallet is involved, what happens if I lose the key?
Will I still have access to my investment?
• If a block chain is used, is the block chain open and public?
Has the code been published, and has there been an independent cybersecurity Audit?
• Has the offer ing been structured to comply with the securities laws and, if not, what Implications will that have for the stability of the enterprise and the value of my investment?
• What legal protections may or may not be available in the event of fraud, a hack, malware, or a downturn in business prospects?
Who will be responsible for refunding my investment if something goes wrong?
• If I do have legal rights, can I effectively enforce them and will there be adequate funds to compensate me if my rights are violated?
If IRS is looking to undercover your asset through a tax Audit, call us today.
