by Fresh Start Tax | May 21, 2014 | Tax Help
IRS Public Policy Statements
After working for Internal Revenue Service for the past 10 years few taxpayers know that IRS has public policies.
You will not find them within the internal revenue manual but on policy notices that you can find online.
Set forth here is the IRS Public Policy Statement regarding Offer in compromises
5.8.1.1.3 (02-26-2013)
Policy
Policy Statement P-5-100 in IRM 1.2.14.1.17, states:
The Service will accept an offer in compromise when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential.
An OIC is a legitimate alternative to declaring a case currently not collectible or a protracted installment agreement.
The goal is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the Government.
A protracted installment agreement is one that extends beyond the Collection Statute Expiration Date.
Offers to be accepted.
In cases where an OIC appears to be a viable solution to a tax delinquency, the Service employee assigned the case will discuss the compromise alternative with the taxpayer and, when necessary, assist in preparing the required forms.
The taxpayer will be responsible for initiating the first specific proposal for compromise.
The success of the OIC program will be assured only if taxpayers make adequate compromise proposals consistent with their ability to pay and the Service makes prompt and reasonable decisions.
Taxpayers are expected to provide reasonable documentation to verify their ability to pay.
The ultimate goal is a compromise that is in the best interest of both the taxpayer and the government.
Acceptance of an adequate offer will also result in creating for the taxpayer an expectation of a fresh start toward compliance with all future filing and payment requirements.
Unless special circumstances exist, offers will not be accepted if it is believed that the liability can be paid in full as a lump sum, or by installment payments extending through the remaining statutory period for collection, or other means of collection.
Generally, a DATC offer amount must equal or exceed a taxpayer’s reasonable collection potential (RCP) in order to be acceptable.
In most cases, when the offered amount exceeds the RCP, the acceptance should be for the amount offered.
The exceptions include special circumstances defined in IRM 5.8.4 and acceptance on the basis of hardship or effective tax administration (ETA) as defined in IRM 5.8.11.
by Fresh Start Tax | May 19, 2014 | Tax Help
We are an Affordable nationwide Christian Tax Firm <>< specializing in ALL IRS Problems.
We are an affordable team of Christian IRS tax experts who specialize in resolving any IRS problems you have.
We have a combined 60 years with the IRS in the local, district, and regional tax offices of the Internal Revenue Service.
We are A+ rated by the Better Business Bureau and have been in practice since 1982.
We are comprised of Christian tax attorneys, tax lawyers, certified public accountants, and former IRS agents, managers and tax instructors who have a combined 60 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service.
All our work is done in-house and we can handle anything from a first IRS notice including tax court.
We are your affordable tax option for resolving any problems such as owing IRS back taxes, filing back tax returns, or filing multiple years of late tax returns.
You can call us today for a free initial tax consultation and hear the truth about your case and hear the different options you have to completely resolve your IRS tax issues.
We can not only file all your old back returns we can also work on a tax settlement at the same time.
Within 24 hours of receiving your fully documented financial statement we can get tax relief for any IRS levy.
How do you discern godly counsel?
Psalm 37:30 The godly offer good counsel, they know what is right from wrong.
Proverbs 18:2 Fools have no interest in understanding; they only want to offer their own opinions.
Proverbs 27:9 The heartfelt counsel of a friend is as sweet as perfume and incense.
What is a IRS Tax Debt Settlement
An offer in compromise allows you to settle your tax debt for less than the full amount you owe.
It may be a great option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS considers your unique set of facts and circumstances. Every taxpayer set of circumstances is different. If you heard someone settled their tax debt for pennies on the dollar it very well could be true if they are qualified and suitable candidate.
IRS looks at four main factors to settle tax debt cases, they are as follows:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
The Offer in Compromise program is not for everyone.
Absolutely make sure you are eligible for the Offer in Compromise
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 tool that you can find on our website to see if you are a suitable candidate.
Submitting your offer to settle your tax debt
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.
Most Importantly Select a payment option
Your initial payment will vary based on your offer and the payment option you choose:
1. The Lump Sum Cash Payment:
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.
2. The Periodic Payment:
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the offer is being considered.
Call us today to learn more if you owe or need to file back taxes.
IRS Taxes, Levy, Settle Debt, Relief, Audit, Back Tax Return, Christian Tax Services ,
by Fresh Start Tax | May 19, 2014 | Tax Help
We are an Affordable Christian Tax Firm <>< specializing in ALL IRS Problems.
We are an affordable team of IRS tax experts who specialize in fixing any IRS problems you have. We have 60 years with the IRS.
We are A+ rated by the Better Business Bureau have been in practice since 1982.
We are comprised of Christian tax attorneys, tax lawyers, certified public accountants, and former IRS agents, managers and tax instructors who have a combined 60 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service.
All our work is done in-house and we can handle anything from a first IRS notice including tax court.
We are your affordable tax option for resolving any problems such as owing IRS back taxes, filing back tax returns, or filing multiple years of late tax returns.
We can not only file all your old back returns we can also work on a tax settlement at the same time.
How do you discern godly counsel?
Psalm 37:30 The godly offer good counsel, they know what is right from wrong.
Proverbs 18:2 Fools have no interest in understanding; they only want to offer their own opinions.
Proverbs 27:9 The heartfelt counsel of a friend is as sweet as perfume and incense.
How does IRS settle back taxes – through the Offer in Compromise Program
An offer in compromise allows you to settle your tax debt for less than the full amount you owe.
It may be a great option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS considers your unique set of facts and circumstances. Every taxpayer set of circumstances is different. If you heard someone settled their tax debt for pennies on the dollar it very well could be true if they are qualified and suitable candidate.
IRS looks at four main factors to settle cases, they are as follows:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
The Offer in Compromise program is not for everyone.
Absolutely make sure you are eligible for the Offer in Compromise
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 tool that you can find on our website to see if you are a suitable candidate.
Submitting your offer to settle your tax debt
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.
Most Importantly Select a payment option
Your initial payment will vary based on your offer and the payment option you choose:
1. The Lump Sum Cash Payment:
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.
2. The Periodic Payment:
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the offer is being considered.
Call us today to learn more if you owe or need to file back taxes.
We can fix all your IRS problems, file your late tax returns and workout effective tax settlement that meets all your current financial needs.
IRS Tax – Levy, Settle Debt, Relief, Audit, Back Tax Return, Christian Tax Services
by Fresh Start Tax | May 15, 2014 | Tax Help
Understanding a Federal Tax Lien
A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt.
The federal tax lien protects the government’s interest in all your property, including real estate, personal property and financial assets.
A federal tax lien can only exist after the IRS:
1. Puts your balance due on there books, that is on there computer system (assesses your liability);
2.Sends you a bill that explains how much you owe (Notice and Demand for Payment); and
And You:
1. Neglect or refuse to fully pay the debt in time.
Where does a Federal Tax Lien go?
The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property. It gets filed at the courthouse closest to your legal residence.
How to Get Rid of a Lien
The very best way is to pay your tax debt in full lien.
The IRS releases your lien within 30 days after you have paid your tax debt.Soon if you walk into the local office with a cashiers check.
Other Options
When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist.
Discharge of property
A “discharge” removes the lien from specific property. There are several Internal Revenue Code (IRC) provisions that determine eligibility.
Subordination
“Subordination” does not remove the lien, but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage.
To determine eligibility, refer to Publication 784.
Withdrawal
A “withdrawal” removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due.
For eligibility, refer to Form 12277.
Two additional Withdrawal options resulted from the Commissioner’s 2011 Fresh Start initiative.
One option may allow withdrawal of your Notice of Federal Tax Lien after the lien’s release.
General eligibility includes:
- Your tax liability has been satisfied and your lien has been released; and also:
- You are in compliance for the past three years in filing – all individual returns, business returns, and information returns;
- You are current on your estimated tax payments and federal tax deposits, as applicable.
The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement.
General eligibility includes:
- You are a qualifying taxpayer (i.e. individuals, businesses with income tax liability only, and out of business entities with any type of tax debt)
- You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
- Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
- You are in full compliance with other filing and payment requirements
- You have made three consecutive direct debit payments
- You can’t have defaulted on your current, or any previous, Direct Debit Installment agreement.
How a Lien Affects You
Assets — A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
Credit — Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
Business — The lien attaches to all business property and to all rights to business property, including accounts receivable.
Bankruptcy — If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
Lien vs. Levy
A lien is not a levy.
A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt.
If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.
Help Resources
Important Groups that deal with IRS tax liens with the Service
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.
Collection Advisory Group — For all complex lien issues, including discharge, subordination, subrogation or withdrawal; find contact information for your local advisory office in Publication 4235, Collection Advisory Group Addresses (PDF).
Office of Appeals — Under certain circumstances you may be able to appeal the filing of a Notice of Federal Tax Lien. For more information, see Publication 1660, Collection Appeal Rights (PDF).
Taxpayer Advocate Service — For assistance and guidance from an independent organization within IRS, call (877) 777-4778.
Centralized Insolvency Operation — If you are questioning whether your bankruptcy has changed your tax debt, call (800) 973-0424.
by Fresh Start Tax | May 15, 2014 | Tax Help
We can file a your back tax returns and settle your case all at the same time.
Being former IRS agents and managers we know the systems and the process.
We have a 60 combined years of direct IRS experience in the local, district, and regional tax offices of the IRS.
We’re A+ rated by the Better Business Bureau.
Filing back tax returns
If you need to file your back tax returns and have little or no records we can file all your back tax returns and work out tax settlement SAME time.
Being former IRS agents we are accustomed to working with non-filers and there is a reconstructive processes that are used in preparing back tax returns if you have little or few tax records.
We first proceed by pulling an IRS income tax transcripts up to find out what income has been reported to Internal Revenue Service.
From there we prepare your tax returns use by certain internal formulas.
If you are going to OWE money to the Internal Revenue Service
If you are going to owe back taxes the IRS they will require a current financial statement on form 433F.
Once we have received your detailed and accurate 433F, the IRS financial statement, we will call the Internal Revenue Service in place you in one of three categories.
Based on your current financial statement the Internal Revenue Service will either place you into a:
- currently not collectible file,
- ask you to make a monthly payment or
- we will proceed to settle your case through an offer in compromise.
Call us today for a free initial tax consultation and we will walk through the processes of the different ways we can resolve your case.
File Back Tax Returns *Affordable* Owe, Settle Back Tax Problems – Jackson, Franklin, Johnson City, Barlett
