by Fresh Start Tax | Oct 30, 2012 | IRS Tax Problem, Offer in Compromise, Tax Lien, Tax Problem Help, Tax Settlements
Do you need to get a Federal Tax Lien Released or Removed?
There are different ways to get this done and get IRS tax relief.
Fresh Start Tax is comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents.
With over 205 years of professional tax experience and over 60 years with the IRS we can help resolve any tax problem you have.
Free Consult. 1-866-700-1040.
It is of utmost importance to avoid the federal tax lien at all costs. Many times if you contact IRS while you are in notice status it is possible to avoid the filing of the federal lien. You should call us for more details.
Settling with the IRS will remove the Federal Tax Lien.
When a taxpayer submits and the IRS approves a Offer in Compromise, the IRS will remove the Federal tax Lien for pennies on a dollar. However you must qualify for an Offer in Compromise to settle with the IRS. You can call us today and we can see if you are a candidate for a IRS tax settlement. On staff of Fresh Start Tax LLC is a former IRS agent who was a Offer in Compromise specialist.
New IRS Tax Law helps those having IRS Tax Liens.
Tax Lien Thresholds
The IRS is significantly increase the dollar thresholds when federal tax liens are filed.
The new dollar amount is in keeping with cost of living changes since the number was last revised. Federal Tax liens are automatically filed at certain dollar levels for people or businesses with tax balances.
A federal tax lien ( FTL ) 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. The filing of the Tax Lien will destroy your credit rating.
A federal lien informs the public that the U.S. government specially the IRS 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.
Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Federal Tax Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it.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 and the taxpayer as well.
In order to speed the withdrawal process, the IRS has now streamlined its internal procedures to allow collection personnel to withdraw the liens.
Direct Debit Installment Agreements and 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:
1.Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
2. The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
3. The IRS will also withdraw liens on existing Direct Debit Installment Agreements upon taxpayer request.
4. Federal Tax Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
New Rule by the IRS under the Fresh Start Program
The IRS recently approved new rules to assist struggling Taxpayers due to the economic recession. The new rules state that the IRS will withdraw tax liens that are filed against taxpayers who meet certain criteria.
If you owe less than $25,000 to the IRS and enter into a payment agreement the IRS will withdraw the lien.
IRS Tax Lien Discharge or IRS Tax Lien Subordination.
Other Ways to Remove a Federal Tax lien
1. Paying your tax debt in full.
This is obviously the quickest and the fastest way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt. If you walk into the local office with a cashier check you can ask the IRS to issue you a release right on the spot.
2.When conditions are in the best interest of both the government and the taxpayer.
We have a client that a third party lender was going to give the taxpayer money to pay off some of the lien. We persuaded the IRS to release the lien for this funding to go through. Situations that benefit both the government and the taxpayer can also release the federal tax lien.
3.Discharge of property.
Allows property to be sold free of the lien. The seller or buyer can submit Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien (PDF).Call us for more details.
4. Subordination.
This does not remove the federal tax lien , but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage. For more information review Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien.
This is available on (PDF).
5.Withdrawal.
This removes the public notice and assures that the IRS is not competing with other creditors for your property. If applying for a withdrawal, use Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (PDF).
Call us for a no cost consultation, 1-866-700-1040.
by Fresh Start Tax | Oct 22, 2012 | IRS Tax Debt, Offer in Compromise, Offshore Tax Problems, Tax Settlements
Offer in Compromise – Tax Debt Settlement – Former IRS Agent
Timing is everything when filing a Offer in Compromise or a IRS Tax Debt Settlement.
I should know.
I am a Former IRS agent and teaching instructor with the IRS who taught the Offer in Compromise program while employed by the IRS. I have reviewed hundreds and hundreds of offers. To get a IRS tax debt settlement approved by the IRS you must file a perfect offer settlement because it is a legal document.
IRS accepts over 27% of all offers filed and almost 80% of those are rumored to be filed by tax professionals.
You want to file your offer when you are at the lowest ebb of your financial life. IRS evaluates two primary objects, your current income and your assets.
IRS will ask you to complete a 433OIC and have the statement fully documented. With that in hand, the IRS has very specific formulas that evaluate your financial statement in regard to income and assets.
If you would like us to provide you with a no cost analysis contact us today.
Understanding the Offer in Compromise, tax debt settlement process.
While your offer in compromise is being evaluated by the IRS:
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 tax assessment and collection period is extended,
e. You must make all required payments associated with your offer in compromise,
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.
Fresh Start Tax LLC – New Jersey
209 Cooper Ave,
Upper Montclair, NJ 07043
1-866-700-1040
Call us today and speak to a true tax professional. 1-866-700-1040.
by Fresh Start Tax | Oct 19, 2012 | IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Offer in Compromise, Representation, Tax Problem Help, Tax Settlements
IRS Offer – Settle with the IRS – Former IRS Settlement Agent – Revenue Officer – Debt Settlement Tax Relief
You cannot do any better than having a Former IRS Agent Settle your back tax debt. When I was employed with the Internal Revenue Service I taught the Offer in Compromise or the Tax Debt Settlement Program to new IRS agents. I/We worked out of the local, district and regional offices.
I have worked hundreds and hundreds of Offers in Compromise. I am a true expert in regard to the OIC Settlement program.
IRS Settlement History
Over the past years IRS has been accepting more Offers i n Compromise. Historically the IRS accepts around 25% of all offers in compromise with the number inching up over the past 3 years. IRS accepted 27% of all offers last year. IRS receives around 55,000 OIC a year.
With the new Fresh Start Program I expect to see that number skyrocket to numbers of offers filed that have never been seen before. I do not honestly believe IRS has the manpower to work the numbers of cases that will be coming into to the fold.
IRS will reject Offers at the drop of a hat.
IRS is basically lazy. The truth be told they hate to work this program and since Offers are long investigations their first instinct is to say ” no” because it is just to much work. To work through the entire case can take an Agent up to 25 hours.I should know, I worked there and I know there mentality.
Offers needs to be filled out correctly and accurately to have a chance of being accepted. The reason most offers are rejected is simply because the Offer is not correctly filled out. The offer is a legal contract and therefore the letter of the law must be complied with.
This is the reason it is best to have a professional tax firm complete your offer. My guess is that about 90% of all offers approved are filed by professional tax firms, at least that is the inside word I get.
Fresh Start Tax LLC is A plus rated and will tell you the truth regarding your case. 1-866-700-1040.
The Bottom Line.
Engage a professional tax firm for this process. Most solid firms will never file a offer unless it has a chance to get through. Our firm offers a free analysis of your case before taking any money from you. Take of advantage of our experience.
What is a Offer in Compromise or Settling your tax debt?
An offer in compromise is a legal agreement between a taxpayer and the Internal Revenue Service ( IRS ) that settles the taxpayer’s ( business ) tax liabilities for less than the full amount of taxes 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 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, boats, pensions, IRA’s, 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.
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.
Call us today and hear the truth from true tax professionals, 1-866-700-1040.
by Fresh Start Tax | Oct 8, 2012 | Offer in Compromise, Tax Settlements
Offers in Compromise – Changes to Offers make life easier for taxpayers – Fresh Start Tax – Former IRS
Mr. Michael D. Sullivan is a Former IRS Agent and teaching Instructor with the Internal Revenue Service. Michael worked and taught the Offer in Compromise Program at the IRS. 1-866-700-1040.
Call us today for a no cost evaluation for your Offer, do not be ripped off. We are Florida’s premier tax resolution firm. Serving Florida since 1982.
After thousands of Offers in Compromises being rejected by the IRS, the government has now made it simple and easy to file for the tax debt settlement called the Offer in Compromise.
An offer in compromise or tax debt settlement allows you to settle your tax debt for less than the full amount you owe. Sometimes it is refereed to as the pennies on a dollar settlement. If you do not have the money to pay your back taxes in full your should certainly consider the filing of an Offer.
IRS primarily looks at three aspect of the taxpayers financial life. They look at:
a. Ability to pay,
b. Income,
c. Expenses, and
d. Asset equity.
Under the ” Tax Increase Prevention and Reconciliation Act of 2005 “IRS made major changes to the Offer Program
As the Tax Increase Prevention and Reconciliation Act of 2005 was signed into law on May 17, 2006. Section 509 of this law creates significant changes to the IRS Offer in Compromise (OIC) program by amending IRC 7122.
Rule change, technical but important never the less.
TIPRA, Section 509, amends IRC 7122 by creating a new subsection (c), titled “Rules for Submission of Offers in Compromise.” The new subsection (c) requires that offers submitted on or after July 16, 2006, (and not subject to the waiver with respect to low-income taxpayers or offers filed under doubt as to liability only) must be accompanied by partial payments of the proposed offer amount. The form of these partial payments depends on the taxpayer’s proposed offer and terms of payment.
Case in which the IRS will not process a Offer
Read carefully the list below to make sure you have a viable tax offer.
1.Taxpayer is a debtor in an open bankruptcy proceeding
2. Taxpayer does not submit the $150 application fee or a signed Form 656-A, Income Certification for Offer in Compromise Application Fee and Payment
3. Taxpayer does not submit the 20 percent payment with the lump sum offer, or a signed Form 656-A
4.Taxpayer does not submit the initial payment with the periodic payment offer or a signed Form 656-A
Another big change was the compliance issues
Compliance is not considered to be a processability criterion for OIC initial submissions. If compliance is the only issue, the offer will be deemed processable. However, IRS will contact the taxpayer by either telephone or correspondence requesting the delinquent return(s), federal tax deposits or required estimated tax payment(s).
A reasonable amount of time will be provided to the taxpayer to comply. Failure to comply will cause the IRS to return the offer to the taxpayer and retain the application fee, along with all TIPRA payments previously paid. The taxpayer will not have appeal rights to this decision.
Payment are not refundable if IRS does not accept your offer.
No, the TIPRA payments are not refundable. Based on IRC 7122(c), the 20 percent payment on a lump sum offer and the periodic payments on a short term or deferred payment offer are considered “payments on tax” and are not refundable.
Can you designate how these payments should be applied?
Yes. Taxpayers are not required to but may designate the application of the TIPRA payments. The designation must be made in writing when the offer is submitted or when the required payment is made
You must not miss making a payment while the Offer is being processed
The IRS will contact the taxpayer and provide one opportunity to pay the missing amount. The offer will be declared withdrawn and returned back to the taxpayer if the taxpayer fails to submit the required amount
All payment(s) previously made will be applied to the taxpayer’s account. The IRS will retain the application fee and the taxpayer will not have appeal rights to this decision.
New Financial Analysis
Changes to income and expenses;
a. Revising the calculation for the taxpayer’s future income.
b. Allowing taxpayers to repay their student loans.
c. Allowing taxpayers to pay state and local delinquent taxes.
d. Expanding the Allowable Living Expense allowance category and amount.
Calculations
When the IRS calculates a taxpayer’s reasonable collection potential, it will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years. All offers must be fully paid within 24 months of the date the offer is accepted.
The Form 656-B, Offer in Compromise Booklet, and Form 656, Offer in Compromise, has been revised to reflect the changes.
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by Fresh Start Tax | Oct 4, 2012 | Offer in Compromise, Representation, Tax Help, Tax Settlements
Settle a IRS Tax Debt – Offers in Compromise – Former IRS Agent
Mr. Michael D. Sullivan is a former IRS Agent and Teaching Instructor who both worked and taught the IRS Debt Settlement program at the IRS called the offer in compromise.
The new IRS Fresh Start Program has made Settling with the IRS a reality. The old Offer Program was broke and it was almost impossible for taxpayers to get Offers in Compromise through the system. The government lost millions of dollars in lost revenue because of a antiquated system. The IRS now has finally done the right thing, help struggling taxpayers.
IRS roughly gets 55,000 offers presented to them each year with an average acceptance rate of 25%. With the new Fresh Start Program I would not be surprise if we do not break the 100k mark this year. With that said, there is no telling at this time how long it will take to process the Offers. Before the New Fresh Start Program there were 7500 cases in the Que, the cases must be stacked up against the wall.
With Millions of taxpayers owing back taxes to the IRS, the average tax payer has 3 ways to basically get the IRS of there back. The taxpayer must give IRS a current financial, either a 433A or a 433F depending on where the case is in the IRS system.
IRS will then review the financial statement and all correspondence to document the numbers placed on the 433A and 433F to make sure the financial statement is correct. Based on the National Standards IRS will either place the case in;
1. Hardship,
2.Part Payment or installment status.
3. The feasibility of an Offer in Compromise.
Before taxpayers go running off submitting Offers in Compromise to settle their tax debt it is a best practice to have a tax professional pre-screen the Offer to make sure the Offer can and will be accepted by the IRS. Offers are very complex and not easily accepted by the IRS.It is easier for IRS to reject the offer and accept it. It is far less work.
About 20 hours of government work goes in to an accepted Offer in Compromise. If accepted it makes its way up the chain of command getting approval after approval before it is finally signed off by a IRS Tax Attorney for legal purposes.
All accepted offers in compromise can be found in regional office at the IRS for public review and inspection.
The New Fresh Start Program
Changes the IRS has made as part of its “Fresh Start” initiative over the past two years have made it easier for taxpayers to qualify for alternative payment programs. The Fresh Start changes should provide a good incentive for taxpayers to work with the IRS to resolve past due back taxes.
IRS Code Section 6159
If a client or taxpayer is unable to pay in full, Sec. 6159 allows the IRS to enter into a monthly payment plan (installment agreement). The IRS also has the authority to settle the tax, penalties, and interest by negotiating an offer in compromise (OIC). This is a contract between the taxpayer and the government to settle the tax debt for less than the full amount owed.
The Offer in Compromise calculation
When the IRS calculates a taxpayer’s reasonable collection potential, it will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years. This is a huge change
All offers must be fully paid within 24 months of the date the offer is accepted.
The Form 656-B, Offer in Compromise Booklet, and Form 656, Offer in Compromise, has been revised to reflect the changes.
Changes to the OIC
Other changes to the program include narrowed guidelines and clarification of when a dissipated assets will be included in the calculation of reasonable collection potential.
In addition, equity in income producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.
Each offer is based on its own set of circumstance so it is best to have Fresh Start Tax review and process your offer.
Do not pay a firm to submit your offer unless you fully understand the ramifications of the program.
Changes to Allowable Living Expenses
The Allowable Living Expense standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay. The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas. These standards are used when evaluating both installment agreement and offer in compromise requests.
The National Standard miscellaneous allowance has been expanded to include additional items.
A New Change – Taxpayers can use the miscellaneous allowance for expenses such as credit card payments and bank fees and charges.
Other payments now allowed as expenses.
New guidance has also been clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education. In addition, payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.
Call us today, 1-866-700-1040, for a no cost evaluation.
Settle a IRS Tax Debt – Offers in Compromise – Former IRS Agent – Fresh Start Tax
by Fresh Start Tax | Oct 3, 2012 | IRS Tax Debt, Offer in Compromise, Tax Settlements
Former IRS agent and Teaching Instructor
Make sure your offer get pre-qualified before your file with the IRS. Our office will pre-qualify your offer for no cost.
Do not get ripped off.
Much is written about the IRS Offer in Compromise but the truth is there are few experts in the area. Solid Tax problem help is hard to find so check BBB rating and the expertise of the tax professional your chose.
Offers in Compromises’ are submitted by the thousands and thousands or person and tax firms however few persons have the inside knowledge about the Settlement process of IRS.
I can make this statement because I have been working Offers in Compromise since 1976. As a Former IRS Agent, not only did I work Offers in Compromise I also was an instructor with IRS who taught the Settlement Program to new IRS agents.
What is an Offer in Compromise or a Tax Debt Settlement
There are different types of Offers, the offer that applies to most taxpayers wanting to settle their case is a Offer as to Collectibility.
About 53,000 Offers are filed each year and the IRS accepts around 27% . It should also be known that of the 27% most of those offers accepted are turned in by tax professionals.
An offer in compromise doubt as to collectibility allows you to settle your tax debt for less than the full amount you owe. This is where the phase” pennies on a dollar ” derives itself from.
OIC may be a legitimate option if you cannot pay your full tax liability or doing so creates a financial hardship.
Make sure you check with a competent tax professional and have your case pre-qualified for an Offer in Compromise before you file. There are many companies that will rip you off.
The Offer Process.
IRS will consider your unique set of facts and circumstances:
a. Ability to pay;
b. Income;
c. Expenses and
d. Asset equity.
IRS generally approves an offer in compromise when the amount offered represents the most the IRS can expect to collect within a reasonable period of time. The normal time period to settle is within a 6-7 month window.
The Settlement comes down to two things:
The Settlement of your taxes comes down to two things, assets and income. The reality is that the IRS in not concerned about any of your liabilities, they are only concerned about assets they have a right to take are seize.
The basic settlement formula:
1.IRS wants to value of all your assets, there is a distrait value to most assets and there is a specific form we go over with our clients with to determine the exact value IRS will seek. IRS excepts distrait values so you want to be sure you use the lowest values allowed by law.
2. IRS will then turn to your income and your expenses. IRS will compare your income with the necessary allowed living expenses in the area in which you are living. The IRS will subtract your expense from your income. If there is a surplus they will multiply that number by 12.
Both the asset value and the income expense ratios are added together and becomes your offer to the IRS.
Select a payment option
Your initial payment will vary based on your offer and the payment option you choose:
a.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.
b.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.
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. See your IRS application package for details or just ask your tax professional.
Understand the OIC process
- While your offer is being evaluated: 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; you need to check with your tax professional,
- Other collection activities may be 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 or payment agreements, and
- Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today to get a no cost evaluation for a tax settlement. 1-866-700-1040.
Are you a Offer in Compromise Candidate, Find out from Former IRS Agents, Free Tax Consult, Tax Problem Help
