by Fresh Start Tax | Sep 26, 2012 | Offer in Compromise, Tax Help
IRS accepts 27% of all offers in compromise filed.
Last year that accounted for 14,000 plus offers being accepted by the IRS. An Offer in Compromise a IRS tax settlement.
Being a Former IRS Agent and teaching Instructor I have seen taxpayers struggle needlessly for years in an effort to settle their tax bills with the IRS. The old system was broke and the truth of the matter, the old Offer in Compromise Program was completely broke and was in need of much improvement.
It was almost impossible to get an Offer in Compromise through the IRS because the system was to hard, to complicated, unachievable the general attitude of the IRS by the Agents to the program was to simply reject offers in compromise.
Finally IRS stepped up to the plate and completely revamped the program and now the question remains, will IRS follow through and accept offers under the new Fresh Start Program. The changes made are huge. I firmly believe if the IRS follows up with its press releases and administers the program like it is fashioned out, the taxpayers can breathe again and be free of the bondage which they have be held captive too.
The New Fresh Start Program, the affordable tax settlement process:
The Internal Revenue Service announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly and affordable than in the past and this is welcome news.
The new Fresh Start Program focuses on the financial analysis used to determine which taxpayers qualify for an OIC. This announcement also enables some taxpayers to resolve their tax problems in as little as one to two years compared to four or five years in the past.
Changes to the program include:
- Revising the calculation for the taxpayer’s future income.
- Allowing taxpayers to repay their student loans.
- Allowing taxpayers to pay state and local delinquent taxes.
- Expanding the Allowable Living Expense allowance category and amount.
What is a Offer in Compromise? – Doubt as to Collectibility
In general, an OIC is an 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 a through payment agreement. There are two other offer programs not mentioned in this blog. Call us for more details, 1-866-700-1040.
The IRS looks at the taxpayer’s income and assets to make a determination of the taxpayer’s reasonable collection potential. OICs are subject to acceptance on legal requirements. To get the Offer to acceptance process is both lengthy and a bit complicated.
The IRS recognizes that many taxpayers are still struggling to pay their bills so the agency has been working to put in place common-sense changes to the OIC program to more closely reflect real-world situations. IRS finally got the picture.
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.
Other changes to the OIC program include narrowed parameters and clarification of when a dissipated asset 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.
Changes to the Allowable Living Expenses Section
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 installment agreement and offer in compromise requests.
Changes to The National Standard Section
The National Standard miscellaneous allowance has been expanded to include additional items. Taxpayers can use the miscellaneous allowance for expenses such as credit card payments and bank fees and charges.
Changes to The Miscellaneous Section
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.
Offers in Compromise, New Tax Settlement Program ,Fresh Start Tax, Affordable Tax Solutions
by Fresh Start Tax | Sep 21, 2012 | IRS Tax Debt, Offer in Compromise, Representation
Debt Settlement Service that are provided by Fresh Start Tax LLC are some of the very best in the country simply because of our tax experts are leaders in the industry for IRS Debt Settlement.
When you work at the Internal Revenue Service and you were a Former IRS instructor who taught the Offer in Compromise program to other IRS Agents you are a true tax specialist.
On staff are Former IRS agents who have over 60 years of direct IRS experience in the local, district and Regional Offices of the IRS.
Debt Settlements with the IRS are called Offers in Compromise.
Last year the IRS settled 27% of the cases. The average settlement was 14 cents on a dollar.
80% of those cases accepted for settlement were sent in by professional tax resolution companies.
It is important to know the IRS made significant changes to there Debt Settlement Program called the Offer in Compromise through the new Fresh Start Program.
Today because of this change many more taxpayers will be eligible for Offers.An Offer is not for ever taxpayer. If the value of your assets exceed the amount you owe, you are not eligible for an Offer in Compromise.
The Offer in Compromise process takes an extensive look into the Assets and Income of each taxpayer and each and every case is very unique. There are no two cases the same.
Offers are generally based on a specific formula:
Total assets plus, income minus expenses times 12.
To see if you qualify , call us today for a no cost consultation. You may select your payment option. 1-866-700-1040.
Selecting a payment option
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.
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 process of Tax Debt Settlements or Offer in Compromise
While your offer is being evaluated by the IRS:
a. Your non-refundable payments and fees will be applied to the tax liability,
b. A Notice of Federal Tax Lien may be filed,
c. Other collection activities are may be suspended,
d. The legal assessment and collection period is extended for the time the offer is in process,
e. Make sure to make all required payments associated with your offer,
f. You are not required to make payments on an existing installment agreement and lastly,
Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today and speak directly to a Former IRS agent.
by Fresh Start Tax | Sep 16, 2012 | IRS Tax Debt, Offer in Compromise, Tax Settlements
Fresh Start Tax LLC is comprised of Board Certified Tax Attorneys, CPA’s and Former IRS Agents who are tax settlement experts. We can settle with the IRS.
We were Former Instructors with the IRS and taught the Offer in Compromise Program called the Tax Settlement program.
Call us for a no cost professional tax consult. 1-866-700-1040.
There are different ways to pay your taxes but it is possible to settle your case with the IRS if you can met the terms and conditions of IRS Settlement Program called the Offer in Compromise.
IRS settlement program is based on income and assets. The basic settlement formula for a IRS Offer in Compromise is base on the:
1. The distrait value of your assets,
2. Taking your current income subtracting your current monthly expense multiplied by 12 and applied against the National Standard Expenses.
Fresh Start Tax LLC will review any potential Offer in Compromise for no cost. 1-866-700-1040
If you do not qualify for a Tax Settlement or Offer in Compromise:
If you owe taxes but cannot pay the full amount by the tax deadline you should still file your return on time and pay as much as you can to avoid penalties and interest.
Here are alternative payment options you may want to consider to pay your back taxes:
Additional Time to Pay Based is based on your exact circumstances, no two cases are the same.
A brief additional amount of time to pay can be requested through the Online Payment Agreement application. Fresh Start Tax LLC can charge you a low fee to take care of this online payment agreement for you.
Installment Agreements and Payment Plans .
You can also request an installment agreement before your current tax liabilities are actually assessed by using OPA. The OPA option provides you with a simple and convenient way to establish an installment agreement and eliminates the need for personal interaction with IRS and reduces paper processing.
You may also complete and submit a Form 9465, Installment Agreement Request, make your request in writing, or call 1- 866-700-1040 to make your request to Fresh Start Tax LLC.
For balances over $50,000, you are required to complete a financial statement ( 433F )to determine the monthly payment amount for an installment plan. At this point it is best to hire a tax professional because the IRS has specific formulas and IRS can take advantage of taxpayers who have no experience in this arena.
You can pay by Credit or a Debit Card .
To pay your Federal taxes by credit or debit card, you can use all major cards (American Express, Discover, MasterCard, or Visa).
For information on paying your taxes electronically, including by credit or debit card, go to Electronic Payment Options Home Page and contact one of the service providers at its telephone number or Web site listed below and follow the instructions.
There is no IRS fee for credit or debit card payments, but the processing companies charge a convenience fee or flat fee.
If you are paying by credit card, the service providers charge a convenience fee based on the amount you are paying.
If you are paying by debit card, the service providers charge a flat fee of $3.89 to $3.95. Do not add the convenience fee or flat fee to your tax payment.
Call us today for more details and see if a IRS penalty abatement is right for you. 1-866-700-1040
by Fresh Start Tax | Aug 23, 2012 | Back Taxes, IRS Tax Debt, Offer in Compromise
We are former IRS agents who taught Tax Law at the IRS . We are offer in compromise and tax settlement experts.
Let us offer a free tax consultation to your back tax problem. 1-866-700-1040
There are several different options how to pay back taxes to the IRS.
This article will deal with the method of payment and the form of repayment.
Back taxes will always be a tax problem until you remove your case off of the CADE enforcement computer of the IRS.
If you are looking to retain a professional tax firm you should look to Fresh Start Tax LLC to find the easiest and most affordable ways to get Uncle Sam off your back.
We are comprised of Tax Attorneys, CPA’s and Former IRS Agents. We have over 60 years of working directly for the IRS.
Tax options to pay Back Taxes to the IRS:
Methods of making the back taxes payment
a.Electronic Funds Transfer.
You can pay your tax bill by electronic funds transfer, check, money order, cashier’s check or cash. To pay using electronic funds transfer, use the Electronic Federal Tax Payment System by either calling 800-555-4477 or using the online access at www.eftps.gov.
b.Credit card payments.
You can pay your bill with a credit card. Again, the interest rate on a credit card may be lower than the combination of interest and penalties the IRS must charge.
To pay by credit card you can contact one of the following processing companies:
1. WorldPay US, Inc. at 888-9PAY-TAX (or www.payUSAtax.com),
2. Official Payments Corporation at 888-UPAY-TAX (or www.officialpayments.com/fed), or
3. Link2Gov Corporation at 888-PAY-1040 (or www.pay1040.com)
How to get more time, get installment agreements of apply for a tax settlement
Installment Agreements.
You may request an installment agreement if you cannot pay the total tax you owe in full.
This is an agreement between you and the IRS to pay the amount due in monthly installment payments. There are different options depending on the facts and circumstances of each case. you should contact us directly to find out the options on your particular case.
Note: You must first file all required returns and be current with estimated tax payments. IRS will refuse to deal with you if you are not fully compliant with all tax filings.
If you owe under $50,000 we can get you a guaranteed installment agreement without detailed financial information however if you owe over $50,000 the work is much more involved and detailed financial statements will be required by the IRS.
Offer in Compromise, Tax Settlement
IRS is now offering more flexible terms with its Offer-in-Compromise Program.
An OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than the full amount owed.
An OIC is generally accepted only if the IRS believes, after assessing the taxpayer’s financial situation, that the tax debt can’t be paid in full as a lump sum or through a payment agreement.
The offer in compromise ( tax settlement ) is a very detailed format and requires the filing of a 433 OIC and 656. IRS spends an average of 20 man hours for every offer in compromise it accepts.
Call us to make sure you are a candidate for a offer in compromise or a tax settlement. If you are a candidate you will settle for pennies on a dollar. We are Offer in Compromise specialists.
Fresh Start Program just initiated by the IRS has made the Service a friendlier agency to deal with. Call us for more details.
How to pay Back Taxes to the IRS – Tax Settlement, Offer in Compromise – Fresh Start Tax LLC
by Fresh Start Tax | Jul 18, 2012 | Offer in Compromise, Tax Settlements
If your Offer in Compromise was rejected, all is not lost, you have options. We are former IRS agents, managers and instructors.
We know all the procedures. I am a former IRS teaching instructor of the Offer in Compromise.
Talk to us, free tax consults, 1-866-700-1040. Speak directly to a former agent.
The IRS has rejected your Offer in Compromise as to Collectibility, what can I do?
If you submit an Offer in Compromise as to Collectibility and the IRS rejects it, all is not lost!
If the IRS (Collection Division) rejects your Offer in Compromise, ask them why it was rejected.
If the Offer in Compromise was rejected because you have not filed all of your tax returns, ask what years need to be filed and then request additional time to file the tax returns.
If the Offer in Compromise was rejected because of additional information that the IRS wants, provide that information to the IRS.
Don’t ignore the IRS. If you need more time to obtain the information, inform the IRS that you are in the process of obtaining the information, but you need more time.
If the Offer in Compromise was rejected because the amount offered was not adequate, ask that the IRS provide you the amount of an acceptable offer and how it was computed.
Review the computations. If you agree with the computations, inform the IRS that you will be immediately submitting an “Amended Offer” for the higher amount as computed by the IRS.
If you do not agree with the IRS’s computation of an acceptable offer, file an appeal for the rejected offer.
In the appeal explain the part of the IRS’s computation of the acceptable offer that you do not agree with. If there is a dispute as to the value of assets, provide the current appraisals with the protest. If income or expenses are in dispute, provide documentation for what you believe are the correct amounts.
When the case is in Appeals, your case will be reviewed by an Appeals Officer or a Settlement Officer. If he or she requests additional information, provide it. Explain your situation. Don’ t tell him that you don’t have the funds for the offer; the Appeals Officer or the Settlement Officer already knows that.
Most of the times, you have to fund your offer from loans from relatives; or make monthly payments from your current income.
When the Appeals Officer or Settlement Officer has computed what he believes is an acceptable offer, review the computations.
If you agree with the amount of the acceptable offer, the Appeals Officer or the Settlement Officer will request that you submit an “Amended Offer” that he or she will process.
If the amount of the unpaid liability exceeds $50,000.00, Area Counsel will have to concur with the amount that “Amended Offer.”
If you don’t agree with the amount of the acceptable offer as computed by the Appeals Officer or the Settlement Officer, their is no further appeals other than by requesting “Post Appeals Mediation” in a few selected Appeals Offices through out the nation.
Thus, you should not be too quick not to reject the Appeals Officer or the Settlement Officer’s computation of an acceptable offer.
For example, your unpaid tax liability is $780,000.00; you offered $35,000.00; but the Appeals Officer or the Settlement Officer computed the acceptable offer in the amount of $100,000.00.
The Appeals Officer or the Settlement Officer wants an additional $65,000.00 for an acceptable offer; but you should not lose sight of the fact that by paying $100,000.00 your unpaid tax liability of $780,000.00 would be forgiven by the IRS for a payment of $100,000.00.
Let us at Fresh Start Tax review your case. Our experienced staff of former IRS Examiners and Appeals Officers will evaluate your offer and determine how far to pursue it.
Call us 1-866-700-1040
Offer in Compromise Rejected? File OIC Appeal, Former IRS Agent Instructors, Managers
by Fresh Start Tax | Jul 13, 2012 | Back Taxes, Expatriate Tax, IRS Tax Problem, Offer in Compromise, Offshore Tax Problems
We are Tax Experts for UAE, Dubai Expat Tax Issues and Tax Problems.
We have a combined 206 years of total tax experience and over 60 years of working directly for the IRS. As former IRS Agents we worked as teaching instructors, Revenue Agents, IRS Managers, IRS Auditors, Revenue Officers and Appeals Agents. We also taught tax law at the IRS.
We have on staff Tax Attorneys, Tax Lawyers, and CPA’s.
We can answer all your questions regarding tax returns, tax credits, tax exclusions, and back tax filings. We also address the issue of abatement of penalties and interest due to reasonable cause and settlements negotiations called offers in compromise.
Have no fear of the IRS. We worked for them and we know how to fight back.
What to expect form the IRS.
The Internal Revenue Service has found a gold mine working FBAR and Expatriate Cases. During the past 3 filing season the IRS collected over $4.4 billion large. With the passing of new legislation and funding the IRS will be receiving over $500 Million in new budget revenue. IRS is targeting four new high target areas:
1. FBAR and Expatriates,
2. Modernizing their computer system to catch tax cheats,
3. Criminal Activities,
4. Enforcement for non filers
When to File your tax returns.
If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return and pay any amount due without requesting an extension.
For each calendar year return, you will be given the automatic 2-month extension is to June 15.
If you are unable to file your return by the automatic 2-month extension date, you can request an additional extension to October 15 by filing Form 4868 before the automatic 2-month extension date.
However, any tax due payments made after June 15 will be subject to both interest charges and failure to pay penalties.
If you are having an tax problems, owe back taxes,or have questions with FBAR or Overseas Tax Issues, call us today, 1-866-700-1040, SKYPE available.
UAE, Dubai Expats, TAXES,Back Tax Return Filings, Tax Advise, Expert Tax Help, Attorneys, Former IRS, Affordable
