by Fresh Start Tax | Apr 28, 2014 | Tax Help
Let former IRS agents and managers fight your battle. We know the system!
We are a Florida tax firm that specializes in IRS and state taxpayer defense.
Our firm is A+ rated by the Better Business Bureau and have been in practice since 1982 right here in the state of Florida
We have over 60 years of direct IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service.
While at Internal Revenue Service we taught tax law.
We know the systems, the protocols, the settlement series, and the best possible tax defense to get you the very best and affordable tax results possible.
Stop Tax Levies
If you want to stop your IRS levy you’ll need to fill out a current financial statement with complete documentation and submit that to the IRS ACS unit or to the revenue officer working your case.
You have to include your pay stub, your last three months bank statements and a list of all current expenses. The Internal Revenue Service will work out a closing strategy to release your levy and take your case off the enforcement computer. A levy will not be released until you call IRS and give them all pertinent information.
Settle Back Taxes
If you want to settle back taxes you can do so through the filing of an offer in compromise or tax debt settlement.
It is wise to walk to the IRS pre-qualifier tool to make sure you are a true candidate to settle your back taxes.
There a lot of planning strategies involved to settle your back tax and if you’re interested call us today we will walk you through the program and give you a free initial tax consultation to see if you are a suitable candidate.
File Back Tax Returns
If you need to to file back tax returns and you have little or no records call us today and we will be able to pull your past tax transcripts and reconstruct your tax returns.
We could not only file your back tax returns we can also work out tax settlement at the same time.
IRS Tax audit representation
Who better to represent your best interests than former IRS agent managers who were former IRS auditors, revenue agents or appeals agent.
If you have received an IRS notice or letter that you will be going through an IRS tax audit, call us today and we will let you know some of the very best tax defenses that you can use.
We are a full-service tax form with all work being conducted in-house by tax attorneys, certified public accountants, enrolled agents, and former IRS agents managers and tax instructors.
Taxpayer Defense – Jacksonville *Affordable* Stop Levies, Settle Back Tax, File Back Tax Returns, Tax Audit Representation
by Fresh Start Tax | Apr 28, 2014 | Tax Help
I am a former IRS revenue officer who both worked the offer in compromise program and taught the offer in compromise program at the regional training center in Atlanta Georgia.
Tax Fact – 38% of all offers in compromise filed are accepted by the IRS for an average of $.14 on a dollar
In short I am an expert on the offer in compromise.
There are five cardinal rules to get your offer in compromise accepted by the Internal Revenue Service. Please understand even know I’m listing only five, there are other issues that may arise and come up and I would recommend taxpayers who wish to settle their IRS tax debt through an offer in compromise hire professional tax firm unless you have an extremely simple case.
In speaking to IRS agents who are currently working the offer in compromise program they stated to me directly that about 90% of all the offers accepted were submitted through professional firms.Simply because repetition is the mother of success.
The offer in compromise a very specific process.
Unless you have worked hundreds of these cases you do not understand the complexities that are involved in most of the cases.
I recommend anyone wanting to settle their case with the Internal Revenue Service hire a seasoned tax professional whether it’s us or another tax firm. It is well worth your money.
Cardinal rules of the offer in compromise.
1. Walk-through the IRS pre-qualifier tool first – there is an IRS pre-qualify your tool that you can find on our website. Make sure that you are settling for the lowest dollar amount. Walk through the pre-qualifier tool or call us today and we will qualify you for an initial assessment.
2. Make sure all offers are filled out completely – being a former IRS agent I can tell you it is much easier for the IRS agent to reject your offer than accept your offer.
IRS has the right to send your offer in compromise back if it is not filled out correctly. Do not give IRS a reason to reject your offer. As simple as this statement sounds you’d be surprised the number of offers in compromise that come back because they are not filled out correctly.
3. Well-documented forms- many offers get rejected because the forms are not well documented. This is another reason IRS will reject your offer. It is critical that everywhere that you write a number to have it documented with support or information that supports the information you are providing the Internal Revenue Service.
4. Packaging- at the end of the day it’s all about packaging.
IRS wants to see a nice neat package with no loose ends.
The offer must make sense. If there are unusual circumstances or facts that surround your financial condition have them documented with a statement or note that paint the condition of your case.
Paint a picture of your financial condition with the summary statement so the agent has an idea of the true facts of your case. Remember the agent will never meet you they only learn about you through the paperwork and forms you fill out.
5. Be patient, be persistent and appeal if necessary -Because IRS rejects offer so easily, if you think you have an offer that should have been accepted plan to appeal.
As a general rule is easier to get IRS to accept your offer and the appellate process.
Also be patient in hearing from IRS. Right now there are over 7500 cases in the queue that are not being work because of manpower.
Offers in compromise are just stacked up and that’s why it is critical your packaging is filled out correctly so the IRS can easily go ahead and put an accepted stamp on it.
What is The Offer In Compromise
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
IMPORTANT NOTE : If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
In order to be eligible for an OIC, the taxpayer must have:
1. filed all tax returns,
2. made all required estimated tax payments for the current year and,
3. made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential .
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. This is why it is helpful to walk to the IRS pre-qualifier tool so you recognize what it takes to get your offer in compromise through
The IRS may accept an OIC based on three grounds.
1. Acceptance is permitted if there is doubt as to liability.
This ground is only met when there is a genuine dispute as to the existence or amount of the correct tax debt under the law.
2. Acceptance is permitted if there is doubt that the amount owed is fully collectible.
Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3. Acceptance is permitted based on effective tax administration.
An offer in compromise may be accepted based on effective tax administration when there is 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.
These are very difficult offers in compromise to get accepted and when they are they usually get accepted because of medical conditions and those must be very well documented.
How to Submit an Offer in Compromise
When submitting an OIC based on doubt as to collectibility or based on effective tax administration, taxpayers must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
A taxpayer submitting an 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 can be found in the Offer in Compromise Booklet, Form 656-B (PDF).
Applicable Application Fees
A taxpayer must submit a $186 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. The fee is not 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 4 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 4 of Form 656.
Two types of payment plans for offer in compromise
The Lump Sum Offer
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A “lump sum 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 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 $186 application fee.
The 20 percent payment is “nonrefundable” meaning it will not 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.
The periodic payment offer
An offer is called a “periodic payment offer” under the tax law if it is 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 $186 application fee.
This amount is nonrefundable, just like the 20 percent payment required for a lump sum 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.
Statutory time to collect
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.
If the IRS accepts
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.
OIC is in default
If the taxpayer does not 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 an 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.
Rejection of an Offer in Compromise
If the IRS rejects an OIC, the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions 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.
In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
Offer in Compromise – How to Settle Your IRS Tax Debt, Former IRS Settlement Officer
by Fresh Start Tax | Apr 28, 2014 | Tax Help
We are a nationwide tax firm that specializes in IRS tax debt settlement services. Affordable Professionals.
Our firm has a combined 60 years of direct IRS experience in the local, district, and regional tax offices of the Internal Revenue Service.
We have over 206 years of general tax experience and we are A+ rated by the Better Business Bureau.
The Offer in Compromise
The most common way to settle your IRS tax debt is through an offer in compromise.
Just for the record, I was a former revenue officer with the Internal Revenue Service.
I both worked and taught the offer in compromise or tax debt settlement program to new IRS agents.
You will find below everything you need to know about the program.
You may call us today for free initial tax consultation and we can let you know whether you are qualified to file for an IRS tax settlement offer in compromise.
If you’re not we can offer a variety of other tax debt solutions to fit your current financial situation you are in.
What is a Offer in Compromise or a Tax Debt Solution?
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
In order to be eligible for an OIC, the taxpayer must have:
- filed all tax returns,( we can prepare all your back tax returns )
- made all required 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 will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the 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.
The IRS may accept an OIC based on three grounds.
- First, acceptance is permitted if there is doubt as to liability. This ground is only met when there is a genuine dispute as to the existence or amount of the correct tax debt under the law.
- Second, acceptance is permitted if there is doubt that the amount owed is fully collectible. Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
- Third, acceptance is permitted based on effective tax administration. An offer may be accepted based on effective tax administration when there is 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.
Tax Forms to Use for a IRS Tax Settlement, Tax Debt Solution
When submitting an OIC based on doubt as to collectibility or based on effective tax administration, taxpayers must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
You must make sure these forms are accurate because IRS has the right to deny your offer in compromise if they are not filled out correctly. It is much easier for the Internal Revenue Service to reject your offer and acceptance or do not give them a reason for rejection.
A taxpayer submitting an 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 can be found in the Offer in Compromise Booklet, Form 656-B (PDF).
Application Fees
A taxpayer must submit a $186 application fee with the Form 656.
Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
- First, no application fee is required if the OIC is based on doubt as to liability.
- Second, the fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
Choice to pay the Tax Settlement of Tax Debt Solution
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. you should talk to a true tax professional before you make a decision on which choice to choose when trying to resolve an IRS tax settlement.
- A “lump sum 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 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 $186 application fee. PLEASE NOTE : The 20 percent payment is “nonrefundable” meaning it will not 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.
- An offer is called a “periodic payment offer” under the tax law if it is 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 $186 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum 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.
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.
Accepted Offers in Compromise or Tax Settlement
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 does not 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 an 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. You can expect IRS to start enforcement i.e. the sending out a bank or wage levies.
Please note: Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
It is important to note that many tax firms promote taxpayers filing offers in compromise to settle their tax debt for pennies on the dollar.
Before anybody goes ahead to try to settle their tax debt they should walk to through the IRS pre-qualifier tool that you can find on our website.
When you do this you will find out if you’re eligible and what the lowest possible dollar settlement that could be achieved.
Call us today for free initial tax consultation.
IRS Tax Settlement Services, Tax Debt IRS Solutions *Affordable* Highest BBB Rated, Former IRS Managers
by Fresh Start Tax | Apr 28, 2014 | Tax Help
We are a team of affordable former IRS agents who worked right here in the South Florida IRS offices. 954-492-0088
We have practiced right here in South Florida since 1982 we are A+ rated by the Better Business Bureau.
We have 206 years of professional tax experience. Free initial consult.
If you are struggling with IRS tax issues or tax problems it only makes sense to hire former local IRS agents and managers who worked on the South Florida IRS offices who could offer you a variety in an arsenal of tax solutions.
Having worked out of the local South Florida offices for a combined 60 years we understand all the tax issues, tax problems and we know each and every solution possible so you can stop and pain and worry.
Not only did we work out of the local South Florida offices we taught new IRS agents there jobs at the regional training centers in Atlanta Georgia.
We know all the protocols, settlement formulas, tax theories, tax codes and applicable solutions for any situation you are currently experiencing.
Let our 60 years of direct IRS work experience be your best tax defense.
All our work is done in-house by tax attorneys, certified public accountants, enrolled agents, or former IRS agents, managers or tax instructors.
Areas of Professional Tax Representation
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Full Service Accounting Tax Firm,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A” Plus
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
Areas of Professional Tax Practice:
- Same Day IRS & State Tax Representation
- Offers in Compromise / IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction
- FBAR/FATCA experts – tax representation
IRS Tax Issues, Tax Troubles – Resolved by Local Former IRS Agent – Miami, Ft.Lauderdale, West Palm Beach – Tax Debt Solutions
by Fresh Start Tax | Apr 28, 2014 | Tax Help
Have Former IRS agents and managers fight your battle
We are an affordable Florida Tax Firm that has been practicing since 1982 and are A+ rated by the Better Business Bureau.
If you are being plagued by an IRS trouble or issue it only makes sense to call former IRS agents and managers who know the system.
Our firm is comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors.
Our former IRS agents have a combined 60 years of direct IRS experience in the local, district, and regional tax offices of the Internal Revenue Service including instructing at the regional training center of the IRS offices in Atlanta Georgia.
You may call us for free initial tax consultation and we can show you different ways to resolve any IRS trouble or problem or issue you are currently having.
Tax Levy
We can generally get an IRS levy released within 24 hours of receiving a fully documented financial statement. Form 433-f.
Tax Audit
We can have a former IRS agent audit managers defend you during an IRS tax audit. because of our extensive training at the Internal Revenue Service we know the very best tax positions to take given every situation.
Tax Settlement
We can also have a former revenue officer who taught the offer in compromise or tax debt settlement program show you ways to settle your case for the lowest possible dollar amount allowed by law.
Late Tax Return Filings
If you have not filed tax returns for a quite a few years we can file all your tax returns and work out a tax settlement with the Internal Revenue Service. We know how to reconstruct tax returns with little or few records.
Tax Services
All our work is done in-house by our staff.
We handle everything from a simple IRS notice and letter to going to Tax Court.
Be very careful when you hire a tax firm for your IRS problem.
Most companies on the Internet are marketing and advertising companies selling your information to third parties.
Choose wisely and do your due diligence before giving your money to any tax firm.
IRS Tax Troubles & Issues Resolved by Former IRS Agents, Tax Levy, Tax Audit, Tax Settlement, Late Tax Return Filing, JACKSONVILLE
