by Fresh Start Tax | Mar 6, 2013 | Offer in Compromise
Offer in Compromise, IRS Settlements – How to pay the very lowest, Former IRS 1-866-700-1040
We were former IRS teaching Agents who taught the Offer in Compromise Program.Call us for a free consult.
If you want to find out how to pay the very lowest amount and have IRS accept your offer compromise or a tax settlement accepted it only makes sense to contact former IRS agents who used to work the program, who accepted and denied offers in compromise and also taught the program to new IRS agents.
We are also comprised of tax attorneys, CPAs, and former IRS agents.
We have over 60 years of direct work experience at the Internal Revenue Service in the local, district, and regional offices of the Internal Revenue Service.
We have worked thousands of cases and know the exact procedures and tax settlement formulas to ensure that our clients pay the lowest amount allowed by law.
The Offer in Compromise is similar to an IRS tax audit
The offer in compromise is very similar to an IRS tax audit.
The IRS spends a lengthily amount of time doing due diligence before they accept an offer in compromise or a tax debt settlement.The average time to work an accepted offer in compromise 0r IRS settlement is 20 hours. Everything is reviewed, documented and verified.
Offers in Compromise, IRS Settlements are open to Public inspection
One of the reasons so long is spent working accepted offers is due to the very fact that all accepted offers in compromise are open to public inspection in certain regional or district offices for the period of one year.
Any person can walk into one of those offices and asked to inspect the files of accepted offers in compromise. As a result IRS is very cautious and painstakingly thorough before an accepted stamp gets placed on an offer.
IRS IRM 11.3.11.8 (06-30-2009)
Public Inspection of Accepted Offers-in-Compromise
IRC §6103(k)(1) provides for the public inspection of certain Offers-in-Compromise. Treasury Regulation 301.7122-1(j) and the instructions for Form 656, Offers in Compromise, both refer to this provision.
Treasury Regulation 601.702(d)(8) requires that Form 7249, Offer Acceptance Report, for each accepted offer in compromise with respect to any liability for tax imposed by Title 26 will be available for inspection and copying.
Applicable Forms 7249 will be available for one year from the date of execution in the location designated by SB/SE for the taxpayer’s geographic area of residence. The inspection file will be maintained so that it is readily available for examination by the public.
Case histories prepared by the appropriate functions relating to the consideration of the offer are not open to inspection and may be disclosed only as permitted by other provisions of IRC §6103.
Requests for copies of Form 7249 available under (2) above, where no personal inspection is involved, should be in writing and processed in accordance with IRM 11.3.13, Disclosure of Official Information – Freedom of Information Act.
Requests to inspect Forms 7249 that are not available under paragraph (2) above because more than one year has elapsed since acceptance should be in writing and processed in accordance with IRM 11.3.13, Freedom of Information Act.
Reviews of Offers in Compromise, IRS Settlements
Not only does the agent working the case have to accept the offer but his or her group manager must place their acceptance but also the area supervisor and the District Counsel of the IRS. Offers are thoroughly reviewed. They are reviewed by Counsel for legal matters only.
How to ensure you pay the lowest amount for your offer
To the person who does not spend a lot of time in this vertical is impossible for them to understand the web of details that can drive your offer in compromise to his lowest possible amounts. IRS puts various information out there on the web you can read about many of these things you can find on different web sites however the experience of former IRS agents who know all the details and particulars of having other items included as expenses can help drive the offer in compromise down to the lowest acceptable amount.
IRS is concerned only about two things:
1. Your Assets,
2. Your income.
They could care less about your emotional or personal problems. This is all about the numbers so sob stories have no place. Remember, this is a numbers game only.
As far as your assets, use distrait values only, no more no less.
As far as your income and expense ratios, make sure a true experience professional reviews allowable expenses. There are other allowable expenses that can be included if properly documented.
It is best to call us because each situation is unique and there are volumes that can be written or spoken about this issue. Truly, each case is unique.
at fresh start tax we will not submit an offer in compromise or an IRS settlement and less we feel it has an excellent chance of getting accepted by the Internal Revenue Service.
25% of all offers in compromise sent in to the IRS are accepted.
In speaking with a IRS agent who works the offer in compromise program stated to me the best guess was that 80% of those offers that were accepted were sent in by professional tax firms.
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or 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 if Tax Records are lost or destroyed
- Offer in Compromise, IRS Settlements
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
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Offer in Compromise, IRS Settlements – How to pay the very lowest, Former IRS
by Fresh Start Tax | Dec 26, 2012 | New Jersey Tax, Offer in Compromise
IRS Offer in Compromise – Tax Debt Negotiation -Tax Attorneys, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
As Former IRS agents we taught the Offer in Compromise at the Internal Revenue Service. 1-866-700-1040.
We know all the procedures and policies governing IRS tax settlement called the Offer in Compromise.
We will qualify your case for a no cost consult before recommending a plan of course of action. the OIC is a very detailed procure and required professional shill for acceptance.
The IRS accepts 30 % of all offers turned in and 90% of those are submitted by professional tax firms.
We are a local professional tax firm that specialize in IRS Offers in Compromise. 1-866-700-1040.
We have over 205 years of professional tax expereince and over 60 years of direct IRS work experience.
We have over 60 years of direct work expereince with the IRS in the local, district and regional offices of the IRS.
The IRS Offer in Compromise, Tax Debt Negotiation
An offer in compromise is a legally binding agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
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 formula is based on income plus assets.
The RCP includes the value that can be realized from all of the taxpayers assets, such as real property, automobiles, bank accounts, IRA’s and pension plans 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 basic grounds.
1. The acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed.
2. The acceptance is permitted if there is doubt that the amount owed is collectible.
This means that doubt exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3. The 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 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. Many times rare circumstances such as medical issues may arise that will cause the IRS to take a second look.
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
Lump Sum Payment
A lump sum offer is defined as an offer payable in 5 or fewer installments.
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.
Periodic Payment Offer
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more installments. 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.
Statutory Period of Time
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 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 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.
To avoid a default, the taxpayer must timely file all tax returns and timely pay all taxes for 5 years or until the offered amount is paid in full, whichever period is longer
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.
Call us to see if you qualify for an offer. 1-866-700-1040
IRS Offer in Compromise – Tax Debt Negotiation -Tax Attorneys, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
by Fresh Start Tax | Dec 25, 2012 | Offer in Compromise
Offer in Compromise – New Rules, Settle for Less – Former IRS Agents
Call 1-866-700-1040 Free Tax consults A PLUS Rated BBB
I am a Former IRS agent and teaching instructor with the IRS. I taught tax policy to new IRS agents. I know all the rules, settlement policies and tax procedures to make a offer work if you are a qualified candidate.
We are comprised of Tax Attorneys, CPA’s and Former IRS agents, managers and instructors. We have over 205 years of total tax experience and over 60 years of direct work experience with the IRS.
We know all the settlement policies and tax strategies of the offer in compromise.
The settlement game has changed.
The Internal Revenue Service is now in the business of accepting offers in compromise. Even though IRS has been accepting them for years they now “really” want the offers to settle cases simply because the FEDS need money.
As a Former IRS agents I can tell you first hand in the past the IRS agents did not like working offers in compromise. They took to much time and they were a lot of work and they were reviewed by the higher ups. Management would criticize your work so it was easier to find a reason to reject the Offer. In day pasts the motto was,” reject immediately”. The culture has changed and we are starting to see a major shift in settlement policy.
Expanded Offer in Compromise Program
The IRS has expanded its “Fresh Start” initiative by offering more flexible terms to its Offer-in-Compromise Program. These newest rules enable some financially distressed taxpayers to clear up their tax problems even quicker.
An offer-in-compromise is an legal and enforceable agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement.
The IRS primarily looks at the taxpayer’s income and assets to determine the reasonable collection potential. They generally add the assets of the taxpayer with the net disposable monthly income times 12 to arrive at the settlement formula.
This expansion of the “Fresh Start” initiative focuses on the financial analysis used to determine which taxpayers qualify for an OIC.
Here are the BIG OIC changes:
Revising the calculation for a taxpayer’s future income
The IRS will now look at only one year instead of four years of future income for offers paid in five or fewer months and two years instead of five years of future income for offers paid in six to 24 months.
All OICs must be paid in full within 24 months of the date the offer is accepted. This is the very best way of getting an offer accepted.
IRS is now allowing taxpayers to repay their student loans.
Minimum payments on student loans guaranteed by the federal government will be allowed for the taxpayer’s post-high school education.
Proof of payment must be provided.
Allowing taxpayers to pay state and local delinquent taxes.
When a taxpayer owes delinquent federal and state or local taxes, and does not have the ability to fully pay the liabilities, monthly payments to state taxing authorities may be allowed in certain circumstances.
Expanding the Allowable Living Expense.
Allowance standard allowances incorporate average expenses for basic necessities for citizens in similar geographic areas. These standards are used when evaluating installment agreement and offer-in-compromise requests.
The National Standard miscellaneous allowance has been expanded. Taxpayers can use the allowance to cover expenses such as credit card payments and bank fees and charges.
Call us today to see if qualify for a offer in compromise, free tax consults.
Offer in Compromise – New Offer Rules, Settle for Less – Former IRS Agents
by Fresh Start Tax | Nov 28, 2012 | New Jersey Tax, Offer in Compromise, Tax Settlements
Offer in Compromise – Settle IRS Tax Debt – Former IRS Agent, Tax Lawyers
Upper Montclair, Cedar Grove, West Orange, Ridgewood, Mendham, Franklin Lakes, Newark, Bernardsville – New Jersey
Have Former IRS Agents, Managers and Instructors who worked and taught the Offer in Compromise Program at the IRS settle your IRS Tax Debt.
Settle for the lowest amount allowed by Law.
We have worked hundreds of case and know the exact formulas of the Internal Revenue Service. Over 60 years of combined IRS tax experience.
We taught Tax Law to new IRS agents and know the exact policies of settlement structures.
You can call us today, 1-866-700-1040 for a no cost consult and let us review your information to see if you are a Offer in Compromise candidate.
The IRS Offer In Compromise/ Settle with the IRS
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 of the taxes that are 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.
General Rule of thumb.
You must at least offer IRS all the equity you have in your total assets. IRS will not expect a offer unless your total value of assets to the IRS. Equity is consider a discounted fair market value.
Assets also included home value, IRA’s and Pension Plans
Call us for more details. 1-866-700-1040
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 genuine doubt exists that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is collectible.
This means that doubt 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 or exceptional circumstances.
An offer may be accepted based on effective tax administration when there is no doubt 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.
The Process
While your offer in compromise is being evaluated by the IRS:
1. Your non-refundable payments and fees will be applied to the tax liability,
2. A Notice of Federal Tax Lien may be filed if the IRS feels the offer is frivolous,
3. Other collection activities may and are suspended,
4. The legal IRS tax assessment and collection period is extended for the time in offer status,
5. You need to make all required IRS tax payments associated with your offer in compromise,
6. You are not required to make payments on an existing installment agreement; and
7. Your offer in compromise is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Offer in Compromise – Settle IRS Tax Debt – Former IRS Agent, Tax Lawyers 1-866-700-1040
by Fresh Start Tax | Nov 6, 2012 | California Tax, Offer in Compromise, Representation, Tax Help, Tax Lawyer, Tax Lien, Tax Settlements
Mr. Sullivan is a Former IRS Agent and Teaching Instructor with the Internal Revenue Service.
He not only worked the IRS Tax Debt Settlement Program called the Offer in Compromise he was a Instructor that taught the Program to new IRS agents in the local, district and regional offices of the IRS.
Fresh Start Tax L.L.C. is comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents.
We have over 206 years of total tax experience and over 60 years of direct work experience with the IRS.
Fresh Start Tax L.L.C. Local California Office
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
In days past it was almost impossible to get an offer in compromise through to the IRS. IRS Tax Debt Settlement practice was almost obscure because IRS did not want to work the IRS Settlement Program. Thousands of Offers should have been accepted but due to the stubbornness of the IRS it lost millions of dollars in revenue because it failed to help suffering and struggling taxpayers.
The amount of work that goes into an accepted offer in compromise can be upward to 20 hours. It is far easier for an Agent to reject the offer than go through the task of accepting one. They are reviewed and approved to death.
Most practitioners would not even file Offers or tax settlements. The ones that did for the most part were preying on taxpayers claiming pennies on a dollar. Not all companies were part of this but it was sickening to see taxpayers paying thousands of dollars when they really never had a chance of getting a tax settlement given the financial facts of their cases.
The IRS would fight you on everything and the extent of the detail they wanted was outrageous.
With the Feds needing money and money in a hurry it finally decided to start settling back tax cases in which it would get instant dollars into the system.
The Commissioner and the powers to be came up with real guidelines that would help these struggling taxpayers final get some badly needed tax relief in the form of true pennies on a dollars settlement.
There are about 55,000 offers in compromise filed each and every year with about 25% of those offers be accepted. The average settlement on each case is about 14 cents on a dollar.
The New IRS Fresh Start Program is allowing taxpayers to settle there tax debt.
The Press Release sent out by the IRS called the Fresh Start Program. See modified version below.
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 and back tax debts.
The goal of the IRS is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
Understand the process the settlement or offer practice.
While your offer or settlement is being evaluated it is important to know what will, take place:
a. 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);
b. A Notice of Federal Tax Lien may be filed;
c. Other collection activities are suspended;
d. The legal assessment and collection period is extended;
e. Make all required payments associated with your offer;
f. You are not required to make payments on an existing installment agreement; and
g. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
The New Federal Tax Lien Policy
The IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid the filing of the Federal Tax Liens. this alone is a cause for great joy because the filing of a federal tax lien will crush the credit of a business and or an individual.
The IRS is making fundamental changes to our federal lien system and other collection tools that will help taxpayers and give them a fresh start, “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.”
IRS making important changes to its federal tax lien filing practices.
The 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.
c. Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
d. Creating easier access to Installment Agreements for more struggling small businesses.
e. Expanding a streamlined Offer in Compromise program to cover more taxpayers.
Call us to see if you qualify for an offer in compromise. Do not file an offer unless you qualify. Free consultations, 1-866-700-1040.
by Fresh Start Tax | Nov 3, 2012 | California Tax, IRS Representation, IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Offer in Compromise, Tax Settlements
IRS Tax Debt Settlement – Offer in Compromise – Former IRS Offer in Compromise Specialist
Fresh Start Tax – Joe Dimino and Michael D. Sullivan
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627 Costa Mesa, CA 92627 1- 866-700-1040
IRS accepts about 14,000 Offers in Compromise a year. 57,000 are submitted to the IRS.With the new Fresh Start Program instituted by the IRS we can expect many more offers being filed in the future. the program will help many struggling taxpayers.
A IRS Offer is sometimes called a IRS Tax Debt Settlement. As a Former IRS Agent and Teaching instructor with the IRS I use to teach the program to new Revenue Officers. Modesty speaking I am a true expert when it comes to IRS Tax Debt Settlements.
There are many companies that advertise “We can settling your case for pennies on a dollar.” While that statement is very true, I would caution any taxpayer to make sure the company you are dealing with is an experienced and trustworthy tax firm because our market is saturated with scam artists.
Check out BBB ratings and check on the person directly who will be handling your case.
My advice to the public is to have your offer pre-qualified before submitting your Offer in Compromise for a IRS Tax Debt Settlement.
Fresh Start Tax LLC will do just that.
Before we take dollar one, we will tell you whether you are a valid offer candidate before you spend a nickel.
Contact us today and hear the truth. We are A plus rated by the BBB.
What is an Offer in Compromise or a IRS Tax Debt Settlement
An offer in compromise is an agreement between a taxpayer/business 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. For information concerning tax payment options, including installment agreements call us today. 1-866-700-1040.
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. this is known as 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, IRA’s, pension plans and other property and assets of the taxpayer.
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 of an Offer is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed. you must have proof that the liability is incorrect.
Second.
An acceptance of an Offer is permitted if there is doubt that the amount owed is collectible. This means that doubt exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third.
An acceptance of an Offer 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 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 rare.
How do you calculate the Tax Settlement or the Offer
Calculating the Offer in Compromise
To determine the acceptable minimum offer amount, the IRS will look at the taxpayer’s income and available assets, and compare it to their monthly expenses and other secured debts; however, not all expenses qualify.
For example, non-secured debt, such as credit card debt, will not be taken into account when calculating your offer. The IRS imposes a cap on qualified expenses, such as housing and transportation costs, to limit the amount you can claim, even if your actual expenses are much greater. There is a National Standard IRS embraces.
The value of any assets the taxpayer currently has, such as a home, car, 401K, or checking account, will be automatically calculated into the minimum offer amount. Those taxpayer who have a valuation of assets exceeding their tax liability are not good candidates for an offer in compromise, since the IRS will deem the taxpayer capable of paying the entire liability. If your assets exceed the amount of tax you owe, you are wasting your time filing an offer in compromise.
This does not mean, however, that one should liquidate their assets prior to submitting an offer. The IRS may or will consider these recently sold assets to be dissipated assets which could and will have an adverse effect on the final offer amount.
What is a Dissipated Asset.
Dissipated assets are anything of value that you had and subsequently sold, which could have satisfied your tax liability.
An example.
The sale of a business or car could be a dissipated asset. If the proceeds from the sale were spent on something other than your tax liability, and are no longer available to you, the IRS may add the value of the dissipated assets to your minimum offer amount.Check with us if this is the case.
Dissipated assets and their treatment can be difficult for many taxpayers to understand. Treatment of assets is an important factor when the IRS determines the viability of an offer in compromise. Therefore, one mis-characterized asset, or one that is not accompanied by proper explanation can cause an offer in compromise to be rejected.
Call us today and find out if and how you can qualify for a settlement with the IRS.
Call 1-866-700-1040 for a no cost consultation.