Former IRS Settlement Agents – Offer in Compromise – How to Get a Tax Settlement

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

Offer in Compromise – How to Settle a IRS a Tax Bill – Affordable Professionals

by Fresh Start Tax | May 8, 2013 | Offer in Compromise

Offer in Compromise – How to Settle with the IRS a Tax Bill  1-866-700-1040

 
The Internal Revenue Service receives 58,000 offers in compromise last year alone.
They settle approximately 25% of their cases for an average of $.14 on a dollar. The average time that they are an offer in compromise status is approximately 6 to 9 months depending on the complexity and the agent who is working your case.
The offer compromise is more complex than many taxpayers think. The IRS spends anywhere from 10 to 30 hours processing in accepted offer in compromise.
The offer in compromise is not a simple process or program.
You have to work hundreds of offers in compromise to be a true tax expert in this matter. Being a former IRS agent I have witnessed hundreds of offers being filed by taxpayers and professionals who do not have a clue what it takes to get your settlement approved. It is critical to hire a true tax expert in this matter because you will not only save a lot of money you’ll probably settle for a lot cheaper.
 
Being a former IRS agent and teaching instructor I am always asked ” how can I settle my IRS tax debt for cheap?”
 
After working 10 years for the Internal Revenue Service and being an offer in compromise specialist the only way that you can settle your tax debt for cheap is to file for IRS tax settlement called the offer in compromise.You can find those forms  on our website.
The offer in compromise has changed throughout the years and there is no better time to try to settle with the Internal Revenue Service than now and that is all because of the new fresh start program with a fresh start initiative offered by the Internal Revenue Service.
It should also be noted that most of the offers that are accepted by the Internal Revenue Service are sent in by professional tax firm .
To have your best chance of an offer in compromise being accepted it is needless to say that you should have a former IRS agent and manager with work to system both file your offer in compromise.
 
 

The pre-qualifier tool for Offers in Compromise

 
Before you file an offer in compromise you should use the pre-qualifier tool that you will find on our website. You should not pay any tax firm any money for offering compromise unless you’re a true candidate.
With the IRS pre-qualifier tool you can find out if you are an eligible candidate to file an offer in compromise. The form is simple and will not only tell you whether you are a qualified candidate it will also let you know how much of an offer you must make to the IRS to get your settlement approved.
Contact us today for free initial consultation and you can speak directly to either an IRS tax attorney, tax lawyer, certified public accountant or former IRS agent or teaching instructor.
 

What is an Offer in Compromise

 
The IRS Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
The Internal Revenue Service will consider your unique set of facts and circumstances. They will check things like your:
a. Ability to pay;
b. Income;
c. Expenses; and
d. Asset equity.
IRS will approve an offer in compromise when the amount offered represents the most the the IRS can expect to collect within a reasonable period of time.
The Offer in Compromise program is not for everyone.
If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
Submitting your offer in compromise
 
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). You can find this form on our website.
Your completed offer package must include the following:
1. Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
2. Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
3.$150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.

Select a payment option that fits you best for your offer in compromise

 
Your initial payment will vary based on your offer and the payment option you choose:
Lump Sum Cash.
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.
Periodic Payment.
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer.
If accepted, continue to pay monthly until it is paid in full. IRS will release all federal tax liens that are filed upon completion in payment of your offer in compromise.
 

Low Income Certification guidelines

 
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
 

Understand the offer in compromise process

 
While your offer is being evaluated be aware of the following:

• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

 
Before you file for a offer in compromise to settle your IRS tax bill contact true tax experts. Call us today for free initial consultation and hear the truth about the offer in compromise program.
We have over 206 years of professional tax experience in over 60 years of working directly for the Internal Revenue Service. We are A+ rated by the Better Business Bureau.
 

Offer in Compromise – How to Settle a IRS a Tax Bill – Affordable Professionals