by Fresh Start Tax | May 10, 2013 | Tax Levy and Wage Garnishments
Get Immediate Release of IRS Bank Levy Freeze- Get your money BACK TODAY, Former IRS 1-866-700-1040
Do not be bullied by the IRS, fight back!
If you need to get an immediate release of a bank levy freeze by the Internal Revenue Service contact us today and speak directly to former IRS agents and managers.
We have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
We know the exact protocol and tax strategies that needs to be employed to get immediate releases of the bank levy freeze.
We have got hundreds upon hundreds of immediate release on a IRS bank levy freeze.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982. We have 206 years a professional tax experience in dealing with the Internal Revenue Service.
You can contact us today for a free initial consultation and you can start the process to get your money back today.
The Good News, the Holding Period for the IRS Bank Levy
The IRS cannot immediately take your money out of a financial institution. There is a freeze or holding period.
A bank must wait 21 calendar days after a levy is served before sending payment. Then, on the next business day, it must turn over the taxpayer’s money.
It is critical that the taxpayer send or fax to IRS a current financial statement along with all documentation to start the process to get immediate release of the IRS bank levy freeze. If you can do this on the day you get the bank levy freeze you will be eligible for immediate release of the bank levy.
Please Note – This financial statement is a form 433-F. That form must be completed and sent to the Internal Revenue Service. You can find this form on our website.
The Process of getting a Immediate a release of a IRS Bank Levy Freeze
There is a very exact system to get immediate release of a IRS bank levy freeze.
As a general rule, the Internal Revenue Service has sent out three or four notices to the taxpayer who has not responded to the final notice. That final notice describes the information regarding the seizure action that the IRS considered on your case.
In many cases because the taxpayers have moved and they have never received the final notices from the Internal Revenue Service.
The next step is for the CADE2 computer system which is the IRS enforcement computer to systemically issue either a bank levy freeze or a wage garnishment notice to the taxpayers employer.
Before the Internal Revenue Service will release a bank levy freeze or a wage garnishment the Internal Revenue Service will need a current financial statement to determine how to close the case within their system.
IRS will evaluate each taxpayer’s ability to pay after it receives a fully documented financial statement.
The IRS will then determine which of the three closing method best suits the taxpayer based on their current financial statement.
Once the taxpayer agrees to the closing method that the IRS suggests the agent working the case will send an immediate release of the bank levy freeze to the financial institution.
It should be known that the taxpayer has a right at any time to appeal the closing method that IRS suggests.
As a general rule the Internal Revenue Service will close a case one of three ways and release the bank levy freeze
IRS may recommend that you should be eligible for economic tax hardship and place you into a currently not collectible file, they may determine that you should be able to make current installment payments, or they may decide that you are a suitable candidate for an offer in compromise.
Remember everything is based on your current financial statement that’s why it is critical that a professional tax resolution specialist prepare your statement and negotiate with the Internal Revenue Service.
To get an Immediate Release a taxpayer need to,
To get an immediate release of a bank levy freeze a taxpayer should fully and accurately complete the 433F along with having all documentation to support that statement.
If a taxpayer calls us with the completed an accurate 433F financial statement along with all documentation that supports the financial statement, as a general rule, we can get an immediate release of the bank levy freeze that very day.
It is critical that you have all documentation to support your financial statement along with having copies of your last pay stubs last 3 to 6 months worth of bank statements.
The IRS does not wish to send out a IRS Bank Levy Freeze
It should be known that the Internal Revenue Service does not wish to levy but has no choice because the taxpayers did not respond to the bills and notices sent to the last known address. It is critical when taxpayers move or change addresses to contact the IRS with their current address so they can receive all bills, notices, and other correspondence at the Internal Revenue Service sends out.
Other Important information to get a Release of a IRS Bank Levy Freeze
The Law on the Holding Period
A bank must wait 21 calendar days after a levy is served before sending payment. Then, on the next business day, it must turn over the taxpayer’s money.
The depositor(s) can waive this waiting period. The bank will not send money that is subject to attachment or execution under judicial process.
“Bank” includes credit unions, savings and loan associations, trust companies, and others described in IRC 408(n) and Treas. Reg. §301.6332–3(b).
During the holding period, a levy might be released, or the amount owed could decrease.
If the bank receives no release, it must send the payment after the holding period.
No additional notice is required.
Bank Liaison Information
The holding period was created to settle disputes about ownership of bank accounts before money is sent.
Assign a bank liaison in each territory to settle these issues quickly.
Sometimes ownership is not settled before the holding period ends. If this happens, ask the bank for more time.
For Multiple Signature Authority for a Bank Account
A levy served to a bank attaches to funds in a bank account for which the taxpayer has an unrestricted right to withdraw funds (signature authority) even if multiple persons have signature authority for that bank account.
As noted in Treasury Regulation 301.6332–1(c)(4) the unrestricted right to withdraw funds is an interest which is subject to levy.
Amount that Must be Surrendered
The bank must send the amount in the taxpayer’s accounts.
A bank levy attaches to any property or rights to property that belong to the taxpayer or on which there is a Federal tax lien, unless it is exempt. See IRC 6331, Levy and Distraint , for legal authority to levy.
However, it must send no more than the amount shown on the notice of levy.
Note:
By law, banks cannot immediately honor the IRS levy.
Key element of a Bank Levy
The notice of levy only reaches the amount on deposit when the levy is received.
Money deposited later is not surrendered, including deposits during the holding period.
Another levy must be served to reach this money. Also, the levy only reaches deposits that have cleared and are available for the taxpayer to withdraw.
Levy proceeds must not be reduced by any fee charged by the bank for processing the levy.
Crediting Levy Payments
Credit the levy payment on the date it is received.
Credit the money in the most advantageous way to the government.
Generally, apply the money to the oldest assessment first.
The taxpayer can not designate how the money is applied because this is not a voluntary payment.
Income Deposited in a Bank Account
Part of taxpayer’s income is exempt from levy.
Once income is deposited in a bank, there is no exempt amount.
On the other hand, unlike a levy on wages and salary, a bank levy is not continuous.
When an entire paycheck is deposited, an economic hardship may exist because all of the money is levied. If this happens, release the levy in whole or in part, as appropriate, to avoid creating an economic hardship.
Economic Hardship to get your Bank Levy Release
Under IRM 5.11.2.2.1.4, Economic Hardship Provisions the IRS may determine to release of levy is required due to economic hardship.
A levy is required to be released when the Service determines the levy is creating an economic hardship, i.e., the levy will cause the individual to be unable to pay their reasonable necessary living expenses.
Generally, if a taxpayer cannot pay their current bills and they are living within their means, that is to say they are living within the national and regional standards as set forth by the IRS, they can be qualified as an economic tax hardship and be placed in the currently noncollectable file.
When that can be proven to the Internal Revenue Service the IRS will issue an immediate release of the bank levy freeze or wage garnishment.
What about Mortgage Escrow Accounts
Banks generally require a portion of property taxes and insurance to be paid with each mortgage payment. This is held in escrow until the tax and insurance are paid. As long as the taxpayer can not withdraw money in these accounts, a levy can not reach it.
Sometimes the account is overpaid.
The taxpayer may have the option to get this refunded.
A levy can reach this.
Also, when property is sold, there may be escrow money that will be refunded to the taxpayer. A levy can reach this, too.
Schools’ Bank Accounts
Bank accounts may be levied to collect taxes that colleges, universities, and other schools owe. These schools’ accounts may include money belonging to the Department of Education (ED). ED gives money to some schools for student aid. This is not the school’s money.
Affordable – Get Immediate Release of Bank Levy Freeze – Get your money BACK TODAY, Former IRS
by Fresh Start Tax | May 10, 2013 | Tax Returns
File Old Back Tax Returns & Get a Tax Settlement 1-866-700-1040
Have former IRS agents and managers prepare your old back unfiled tax returns and get a tax settlement if you wind up owing tax.
We have over 60 years with the Internal Revenue Service and have worked in the local, district, and regional tax offices of the Internal Revenue Service. We know all the systems, all the protocols and all the settlement regulations to get you back into the system worry free.
The process is very simple.
We have filed thousands of back tax returns and there is a seamless process to get you back in the system so you no longer have to worry about IRS issues again.
For a various reasons taxpayers do not file their old back tax returns. Many times it innocently starts by not filing one year and the ball continues to roll and fear and other reasons stop them from filing altogether.
If this is happened to you contact us today and we can get you back in the system worry free and without any pain.
The process to file all back tax returns is to get a copy of your last tax return your filed and also to get a copy of income transcripts that the Internal Revenue Service has on file.
The IRS income transcripts will let you know all the reported income that IRS has on their computer for the last seven years. That is used as a base to prepare your back tax returns. From there due to our expertise with IRS matters we can easily reconstruct your tax return.
Are you going to owe money to the IRS – Get a settlement
If you are going to owe money we can work out a tax settlement that will fit your lifestyle and your finances at the current time.
Do not be afraid to move forward because sooner or later you are going a have to walk through this door. If you’re going to walk through this door you may as well do it with former IRS agents and managers who are and trained in the system’s
Need to get information to file old back tax returns
Sometimes taxpayers need a copy of an old tax return, but can’t find or don’t have their own records.
There are three easy and convenient options for getting tax return transcripts and tax account transcripts from the IRS: on the web, by phone or by mail.
There are things you need to know about getting federal tax return information from a previously filed tax return.
Ordering transcripts
You can order transcripts online or by phone for the current tax year as well as the past three tax years.
Earlier tax years must be requested with Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript.
A tax return transcript shows most line items from your tax return as it was originally filed, including any accompanying forms and schedules. It does not reflect any changes made after the return was filed.
A tax account transcript shows any later adjustments either you or the IRS made after the tax return was filed. This transcript shows basic data, including marital status, type of return filed, adjusted gross income and taxable income.
To request either transcript online from this website use our online tool called Order a Transcript. To order by phone, call 800-908-9946 and follow the prompts in the recorded message.
When you use these automated self-service options, the selected transcript will be mailed to your current address of record. To have your transcript mailed to a different address, complete and mail Form 4506-T, Request for Transcript of Tax Return. The IRS does not charge a fee for transcripts.
To request a 1040, 1040A or 1040EZ tax return transcript through the mail, complete IRS Form 4506T-EZ. Businesses, partnerships and individuals who need transcript information from other forms or need a tax account transcript must use the Form 4506T.
If you order online or by phone, you should receive your tax return transcript within five to 10 calendar days from the time the IRS receives your request. Allow 30 calendar days for delivery of a tax account transcript if you order by mail using Form 4506T or Form 4506T-EZ.
If you still need an actual copy of a previously processed tax return, it will cost $57 for each tax year you order. Complete Form 4506, Request for Copy of Tax Return, and mail it to the IRS address listed on the form for your area. Copies are generally available for the current year as well as the past six years. Please allow 60 days for actual copies of your return.
File Old Back Tax Returns & Get a Tax Settlement – Former IRS
by Fresh Start Tax | May 9, 2013 | Offer in Compromise
Former Settlement IRS Agents- Offers in Compromise – How to Get a Tax Settlement 1-866-700-1040
The only way you are in a get an IRS offer in compromise accepted is through filing hundreds of offers in compromise or knowing the internal systems of the Internal Revenue Service. Because of our years of work experience at the Internal Revenue Service we know the internal workings of the Internal Revenue Service.
We are comprised of former IRS agents, managers and tax instructors. We worked and taught the IRS offer in compromise program while employed by the Internal Revenue Service.
We not only work the offer in compromise program as former IRS agents we taught the tax debt settlement program.
We have over 60 years of direct working experience at the Internal Revenue Service and the local, district, and regional tax offices.
We are tax experts in IRS collection matters and especially the offers in compromise.
If you want to know the most effective way on how to get an IRS tax settlement contact us today for a free initial consultation and we will review the entire process with you.
You get an IRS tax settlement by knowing the system, knowing the process and being familiar with all the rules and regulations that govern the offering compromise. It extremely difficult for an unseasoned person to get an offer in compromise accepted by the Internal Revenue Service. I hate to tell you this but as a former IRS agent the IRS will always look to reject the offer rather than to accept the offer because of the sheer volume of work it takes to accept the offer in compromise.
The new pre-qualifier program by Internal Revenue Service for the offer in compromise
There is a new pre-qualifier tool out for offers in compromise that is available on our website. Before any taxpayer contemplates the filing of an offer in compromise or a tax debt settlement they should walk in themselves through the process to make sure they are not throwing away money on a program that they will not qualify for.
Facts about Offers in Compromise
- There are 58,000 offers in compromise filed every year and about 18,000 of those tax debt settlements are approved by the Internal Revenue Service.
- The average settlement is somewhere around $.14 on a dollar.
- The average wait time for an offer in compromise is 6 to 9 months.
- All offers are approved by the Internal Revenue Service are a matter of public record in regional locations and available to anyone up for time period of one year.
- Also the taxpayer should be aware that the IRS offer in compromise takes somewhere in the neighborhood of 10 -30 hrs. for IRS agent to completely work.
- All offers in compromise that are filed with the Internal Revenue Service has to be thoroughly documented.
- It also should be known that IRS will pull credit reports and probably Google your name and may even pull up a LEXIS-NEXIS.
- The IRS may also use a Accuriant search to do a complete and thorough financial investigation to make sure that all the information you place on your offer in compromise is true and correct.
The IRS Offers 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.
If the tax 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, 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 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. You should remember the only thing that IRS is interested in our assets and income. Any liabilities that you have are very little concern of the Internal Revenue Service.
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 genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is fully collectible. This is Doubt to liability.
This means that 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.
Doubt as to collectibility or based on effective tax administration
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 (PDF), Offer in Compromise, and must also submit Form 433-A (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (PDF), Collection Information Statement for Businesses.
You can find those forms on our website.
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 and/or Form 433-B.
Application fees for the Offer in Compromise
In general, a taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
a. First, no application fee is required if the OIC is based on doubt as to liability.
b. 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.
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.
Different IRS Payment options for Offers in Compromise
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 and within 24 months after the offer is accepted.
Lump Sum Payments for offers in compromise
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 $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount 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 amount.
The Periodic Payment Offer
The 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 $150 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 will be extended
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. The normal statutory period of time for IRS to collect a tax liability is usually 10 years from the initial date of assessment.
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. you must be careful to read the terms if your IRS offer in compromise is accepted. Many taxpayers who have not filed and paid their taxes after their offers were accepted may find their offers in compromise later denied because of the rules that exist.
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, 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.
If the IRS rejects an OIC,
If the IRS rejects an OIC, then 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.
If you have any questions about an IRS offer in compromise call fresh start tax to speak directly to former IRS settlement agents.
We can tell you exactly how to get in IRS tax settlement. We are A+ rated by the Better Business Bureau of been in private practice since 1982.
Former IRS Settlement Agents – Offer in Compromise – How to Get a Tax Settlement
by Fresh Start Tax | May 9, 2013 | Tax Help
IRS Collection Issue, Owe the IRS, Tax Resolution Specialists, Affordable Former Agents 1-866-700-1040
If you are having an IRS collection issue and you owe the IRS back tax, contact us today for a free initial tax consultation and speak directly to tax attorneys, certified public accountants, former IRS agents and managers.
With over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service we can go over all the tax options with you and let you know your best avenue of resolving your case with the Internal Revenue Service.
We are true IRS tax experts and tax resolution.
As former IRS agents we taught tax law in the local, district, and regional tax offices of the Internal Revenue Service.
In fact, we taught new IRS agents there job. Needless to say we are familiar with all the tax policies, all IRS collection issues,and methods of tax settlement and every avenue to painlessly resolve your IRS issue.
If you do not pay your tax bill on time
If you do not pay in full when you file your tax return, you will receive written notice of the amount you owe, a bill.
This bill or tax notice starts the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax.
The IRS first notice
The first notice you receive will be a letter that explains the balance due and demands payment in full.
It will include the amount of the tax, plus any penalties and interest added to your unpaid balance from the date the tax was due.
You may pay the amount due by sending the IRS a check or money order, payable to the United States Treasury, with a copy of the notice.
For detailed information on paying your taxes by credit or debit card, or other electronic payment, go to http://www.irs.gov/uac/Electronic-Payment-Options-Home-Page, or call IRS at 800-829-1040.
If you cannot pay the IRS in full
If you cannot pay in full, you should send in as much as you can with the notice.
The unpaid balance is subject to interest that will compound daily and to a monthly late payment penalty. It is in your best interest to pay your tax liability in full as soon as you can to minimize additional charge.
Monthly IRS installment agreements
The Internal Revenue Service has various installment agreements to pay your back taxes. Everything will determine on the amount of money that you owe the Internal Revenue Service.
Direct Debit Installment Agreements and Tax Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement.
For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Tax Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices.
Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate.
Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business.
Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
IRS Settlements – Offers 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.
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, 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.
Before you file an offer in compromise you should use the pre-qualifier tool found on our website.
It can save you a lot of time and money and you should know that you are a qualified candidate before you file an offer in compromise.
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 genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that 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.
Facts about IRS Offers in Compromise when you owe the IRS
You should know that about 58,000 offers and compromises were filed last year.
The average settlement is some $.14 on a dollar.
The average wait time to get a IRS offer in compromise accepted is somewhere in the time period of 6 to 9 months.
Contact us today for a free initial tax consultation and hear the truth about IRS collection issues from true tax resolution specialists.
IRS Collection Issue, Owe the IRS, Tax Resolution Specialists, Affordable Former Agents
by Fresh Start Tax | May 9, 2013 | Tax Help
IRS Problems, Tax Help – Methods of Tax Resolutions – Former Agents 1-866-700-1040
If you are having IRS problems and need professional IRS tax help contact us today for free initial tax consultation and speak directly to IRS tax attorneys, IRS tax lawyers, certified public accountants, or former IRS agents and managers. We can handle all your IRS problems and suggest to you different methods of tax resolution.
With over 206 years of professionals tax experience and over 60 years working directly for the Internal Revenue Service we are one of the most experienced nationwide tax firms.
We have worked thousands of cases and are A+ rated by the Better Business Bureau.
We have been in practice since 1982 and taught tax law at the Internal Revenue Service.
As a result our year of working for the IRS we know all of the tax policies, tax procedures, and all the tax issues as well as methods on how to resolve your IRS tax problems.
If you owe the Internal Revenue Service here are the methods of tax resolutions:
If you owe back taxes to Internal Revenue Service there are generally three methods of tax resolution that the IRS will offer on back taxes.
On each delinquent or back tax case the IRS is required to secure a current financial statement that is fully documented and fully complete. That form will be on an IRS financial statement or 433-F. You will have to send to the all receipts, bills, pay stubs, bank statements to verify the financial statement.
After IRS evaluates the 433 f form there are three basic categories a taxpayer will be put into by the Internal Revenue Service all based on their current financial statement.
IRS will either determine based on your current financial statement that the taxpayer does not have the ability at the current time to pay the tax and they will put them in a non-collectible status, IRS also has the option of setting up an installment or payment arrangement, or IRS has the option of suggesting an offer in compromise if the taxpayer qualifies for a tax debt settlement.
It is important for all taxpayers to take care of their IRS billing notice when it comes to them. If the taxpayer does not respond to the last IRS notice or bill the IRS will send out an IRS bank levy, an IRS wage garnishment levy or file a federal tax lien.
The best advice to give any person owing money to the IRS that has an IRS tax problem looking for help is to resolve their IRS matter and to not have their head buried in the sand. Solve the problem on your terms and not the terms of the Internal Revenue Service.
IRS has new tax policies and methods to resolve Tax Problems
In its latest effort to help struggling taxpayers, the Internal Revenue Service announced a series of new steps to help people get a fresh start with their tax liabilities by offering different methods of tax resolutions
The IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
The new IRS methods or changes include:
a. Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens,
b. Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement,
c.Creating easier access to Installment Agreements for more struggling small businesses.
d. Expanding a streamlined Offer in Compromise program to cover more taxpayers.
IRS Federal Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at $10,000 for people with past-due balances.
The IRS plans to review the results and impact of the lien threshold change in about a year.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt.
Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer.
This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain federal tax lien withdrawals.
Tax Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
Direct Debit Installment Agreements and Tax Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA).
For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Tax Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices.
Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate.
Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
Offers in Compromise – Settlements
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate.
In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
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