by Fresh Start Tax | Sep 13, 2013 | Offer in Compromise, Tax Settlements
How to Settle your Tax Debt – Pennies on a Dollar – Former IRS Settlement Officer
Let me first say that you can settle your tax debt for pennies on the dollar if you qualify and meet the standards for offer in compromise program.
The statistics for this past year has shown that 38% of all offers in compromise filed with the Internal Revenue Service are excepted.
IRS receives around 50,000 offers in compromise per year. From what I’ve been told by IRS agents who have worked the offer compromise tax settlement program this year, that the average settlement is $.14 on the dollar.
Not everybody is a qualified candidate for a tax Settlement.
You can settle your tax debt for pennies on a dollar but you must meet very specific criteria. The offer program and settling your tax debt program is not for everyone.
I should know. I am the former IRS agent in teaching instructor and taught the IRS offer in compromise program while employed by the Internal Revenue Service.
There are strict standards to get your offer in compromise accepted by the Internal Revenue Service to settle your tax debt.
Before you go running off paying a tax firm or Internet company to settle your debt for pennies on a dollar you must be completely aware of the standard that IRS has for settlement.
The standard for acceptance is simply this, you must give IRS the total value of all your assets plus the Internal Revenue Service will compare your monthly income and expenses against the regional, national income and expense standards. If there is any money left over at the end of the month they use a 12 multiplier. IRS simply adds up the total value of all your assets plus the 12 multiplier figure and that is the sum total of your offer in compromise.
The Internal Revenue Service will not accept anything less.
You will find that the IRS has a pre-qualifier tool and you can find on our website.
You can contact us today to find out if you qualify for an offer in compromise. We will not take any money on any client unless we feel they are qualified to file an offer in compromise.
Before you choose a firm to settle your IRS tax debt make sure you check the Better Business Bureau rating, ask to speak directly to the person working your case, and make sure they have qualified tax professionals on staff.
I would make sure on staff you will find either a tax attorney, certified public accountant, enrolled agent, or former IRS agent that you can speak directly to.
Do not just give all your information to a sales agent which most firms employ.
The IRS Offer in Compromise/ Settle your Tax Debt
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 IRS will consider your unique set of facts and circumstances:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
The IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
The IRS will explore all other payment options before submitting an offer in compromise. 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.
Make sure you are eligible
Before the IRS can consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding.
Submit your offer Tax Debt Settlement Offer
Your completed offer package will include:
1. Form 433-A (OIC) (individuals) or
2. 433-B (OIC) (businesses) and all required documentation as specified on the forms;
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
4. Initial payment (non-refundable) for each Form 656.
Select a payment option for the IRS
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. See your application package for details.
Understand the process to Settle your tax debt
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;
- 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.
Contact us today for free initial tax consultation and find out whether you are a qualified candidate for the IRS offer in compromise program otherwise known as IRS settlements.
We have over 60 years of direct work experience with the Internal Revenue Service in the local, district, and regional tax offices of the IRS.
On staff is a former IRS settlement officer who not only worked the IRS offer in compromise program but also for taught the program to new IRS agents.
We are true experts for the tax debt settlement program.
How to Settle your Tax Debt – Pennies on a Dollar – Former IRS Settlement Officer
by Fresh Start Tax | Jun 10, 2013 | Tax Settlements
Settle Tax Debt – Affordable Christian Tax Professionals <><
Get solid Biblical Tax Counsel with a nationwide Christian Tax Firm<><.
We are professional Christian tax firm that specializes in settling IRS and state tax debt.
We are comprised of Christian tax attorneys, Christian lawyers, Christian CPAs, and former IRS agents, managers and tax instructors.
We have over 205 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service.
As a result of our 60 years of working directly for Internal Revenue Service we know all the tax debt settlement programs and formulas.
We have worked at Internal Revenue Service as agents, managers and also taught tax law as well as the offer in compromise program.
Contact us today for a free initial tax consultation and find out if you are a tax debt settlement candidate through the new IRS fresh start program or fresh start initiative.
Taxpayers who are looking to settle their IRS tax debt should to be very careful because there a many companies ripping off taxpayers.
It is important you contact a Christian tax firm to make sure that you have a high percentage chance of getting your offer accepted by the Internal Revenue Service.
Not all taxpayers are suitable candidates for the IRS tax debt settlement program.
Settlement a Tax Debt Numbers
58,000 offers in compromise are filed every year by taxpayers and approximately 38% of those are accepted by the Internal Revenue Service.
My guess best is most of those offers that are accepted are filed by a professional tax firm.
You should know that the offer in compromise or the IRS tax settlement program is a very specific program.
As a former IRS agent I worked this tax debt settlement program and I am completely familiar with the inner workings tax debt settlement program formulas.
You can find on our website a pre-qualifier tool to find out for yourself whether you are a suitable candidate for an offer in compromise.
Call our tax firm today for a free initial tax consultation to find out whether you are a suitable candidate to settle your tax debt please.
Please read below about the new IRS fresh start program to help struggling taxpayers settle their IRS tax debt.
Policy Changes for the IRS Tax Debt Settlement
Under the current Fresh Start initiative the IRS has incorporated its Streamlined Offer in Compromise process into the overall investigation of offers and has added flexibility to the financial analysis used in evaluating offers.
The Streamlined Offer in Compromise process includes:
- Fewer requests for additional financial information
- If necessary, requests for additional information by phone, not by mail
- Greater flexibility when considering your ability to pay
The changes to financial analysis add more flexibility to the OIC process including:
- Greater flexibility in determining the equity in assets
- Greater flexibility in determining the allowable living expenses
- Reducing the amount of future income included in the offer
Call us today and let us walk you through the IRS tax debt settlement program.
Before you spend a nickel make sure you are a suitable and qualified candidate to settle your IRS tax debt.
By calling a professional Christian tax firm you will hear the truth.
Settle Tax Debt – Affordable Christian Tax Professionals – Lawyers, CPA’s, Former IRS
by Fresh Start Tax | Apr 3, 2013 | Tax Settlements
Settling your Tax Debt with the IRS – Use Former IRS Agents who know how 1-866-700-1040
I must say it really baffles me. Millions of taxpayers owe money to the Internal Revenue Service and they really do not know where to turn so the first thing they do as they search the web which is a smart thing to do.
The baffling part of this is that many of these taxpayers choose companies talking directly to the salesperson and never to the tax professional that will be working their case.
My advice to any taxpayer who chooses to settle their debt with the Internal Revenue Service is to seek solid tax professional help and that means specifically talking to the person that will be working their case. In doing so a taxpayer will get a real good idea on the exact process that’s going to take place.
And that believe it or not is a very simple process.
IRS will simply can ask for a financial statement from the taxpayer or business that owes money. IRS will want verification of that financial statement. IRS will then proceed to make it a determination on how they will a settle that debt with the taxpayer.
Tips in hiring a Tax Company
If you are wanting to Settle with the IRS on your tax Debt, make sure you understand the program before you give your money to some tax mill.
Many companies advertise “Settle IRS Debt” to the peril of many taxpayers. You can get ripped off.
The Internet is full of companies saying they can settle for pennies on a dollars, settle your IRS debt, fast and quick settlements.
While it is very possible, the odds are stacked up against you.
Many of these companies that advertise pennies on a dollars have a salesperson originally speak to you and size you up.
They charge you a huge fee, take out a commission and then pass it on to a third party company or to the corporate headquarters where a person who will work your case has no idea at all what the salesperson told you.
Check the Internet and the number of complaints these companies have against them.
The IRS put out a warning last year against these tax mills and the Attorney General is actively pursuing to put these companies out of business.
What to look for in hiring a solid tax professional firm for Tax Relief.
1. Check the BBB listing of the company you want to engage.
2. Check to see if there is a tax professional on staff. do they have on staff tax attorneys, CPAs and former IRS agents and/or enrolled agents.
3. See how long the company has been in business. The Better Business Bureau can give you a lot of information about the history of a company.
4. Be sure that the company has not changed their name. Many of these tax resolution companies change their name every two years.
5. Speak to the professional that will work your case. See if they know their business. Ask for credentials.
6. Find out how many IRS cases the person working your case has been involved with. How long have they practiced tax law?
7. Ask how many offers or settlements the company has on their record. Has there been a case like yours?
8. Former IRS Agents. Former IRS Agents know all the rules regulations and latest tax changes. Being a former IRS agent myself my best advice to anybody having an IRS problem is to seek the counsel of the former agent.
9. Do not be fooled by the initial sales approach. Many claims the salesperson makes when first talking to the salesperson are just hype, so beware And use caution
10. Ask about the fee. Professional companies do not charge a results accomplished fee.
11. So remember, experience, history, BBB report and by all means hire former IRS Agents.
12. Be a good student and do your homework. It will save you money in the long run.
Settling your Tax Debt with the IRS – How to choose a Tax Relief Firm
by Fresh Start Tax | Mar 5, 2013 | Tax Settlements
IRS Tax Debt Settlements – Attorneys, Lawyers – How to Settle with the IRS 1-866-700-1040
We are comprised of Tax Attorneys, Lawyers CPAs and former IRS agents who have over 206 years of professional tax experience in over 60 years with the IRS.
While employed by the Internal Revenue Service we taught the IRS tax debt settlement otherwise called the offer in compromise. Not only do we know the system we know the exact tax settlement formulas. Let our years of IRS work experience work for you.
If you want to settle your IRS tax debt call us today and we will review your tax case and your tax situation at no cost. We will be able to propose different tax options for you to settle your IRS tax debt.
We are certified tax experts in IRS tax debt settlements. We have worked hundreds and hundreds of cases and have provided our clients with successful tax settlement resolution options.
We’ve been practicing since 1982 and we are A+ rated by the BBB and are very affordable and friendly.
Feel free to call us or Skype us today to find out the truth about your case.
After working at IRS for a combined 60 years work experience no taxpayer should file an offer in compromise or an IRS tax debt settlement without being prequalified.
IRS has very rigid standards for the acceptance of offers in compromise or tax debt settlements. You can find on our site a simple offer qualifier and you can find out for yourself whether you can settle your IRS tax debt by using the qualifier.
How to settle with the IRS
IRS has very specific methods, rules and regulations to settle your back taxes. You will find that our website on the forms page a qualifier that you can walk through yourself to find out whether you are a candidate for an offer in compromise or an IRS tax debt settlement.
The basic rules for an IRS tax debt settlement is very simple. IRS will want to know the total equity you have in all your assets and then they will make a determination on your income versus your expenses.
Once IRS knows the fair market value of your assets and understands your income and expense ratios they will make a determination as to the feasibility to accept an offer in compromise.
I would never recommend a taxpayer file an offer in compromise by them self.
Being a former IRS agent it serves the taxpayer to find a qualified tax professional who will both save them time and money and has a greater chance of getting the offer in compromise approved.
You may call our office we will run through the numbers with you and find out whether you are a qualified candidate.
The new IRS Fresh Start Program by IRS for IRS Tax Debt Settlements
The new fresh start program or fresh start initiative by the Internal Revenue Service is allowing thousands and thousands of taxpayers who owe back taxes to settle there IRS tax debt.
The Internal Revenue Service has another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past.
IRS will be focusing in on the financial analysis used to determine which taxpayers qualify for an OIC. This also enables some taxpayers to resolve their tax problems in as little as two years compared to four or five years in the past.
In certain circumstances, the changes announced today include:
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.
What is and IRS tax debt settlement
A 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.
The IRS looks at the taxpayer’s income and assets to make a determination of the taxpayer’s reasonable collection potential.
IRS tax debt settlements or offers in compromise are subject to acceptance on legal requirements. All IRS tax debt settlements get approved not only by the local agent working in case not only by the manager but also by IRS attorneys.
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.
When the IRS calculates a taxpayer’s reasonable collection potential, it will now look at:
1. only one year of future income for offers paid in five or fewer months, down from four years, and
2. 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.
Other changes to the IRS tax debt settlement program
Other changes to the 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.
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 installment agreement and offer in compromise requests. you can find the ease national averages on our website. They are different from region to region. Go to our IRS forms page and click on allowable standards allowed by IRS.
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.
Guidance has also been clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education.
Payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.
This is another in a series of steps to help struggling taxpayers under the Fresh Start initiative.
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
- IRS Tax Debt 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,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
by Fresh Start Tax | Mar 5, 2013 | IRS Tax Debt, Tax Settlements
IRS Tax Debt Settlement Tax Lawyer, Attorney Ft.Lauderdale, Miami – IRS Settlement Experts 954-492-0088
If you have an IRS Tax Debt and you wish to propose a tax settlement with the Internal Revenue Service who better to hire a tax firm that has on staff Tax Lawyer Attorneys, CPAs, and former IRS agents.
We have worked out of the local South Florida IRS offices and have over 60 years of direct working knowledge of the IRS.
While at the IRS our former IRS agents not only taught tax law but also taught the IRS tax debt settlement program called the offer compromise. We are true experts in IRS tax debt settlements.
With over 206 years of professional tax experience and over 60 years with the IRS we are one of the most experienced local professional tax firms.
We have been practicing since 1982 and the local South Florida area.
Call us today for a free tax consultation and hear the truth about your case and the different tax options and remedies available to you to settle your tax debt with the Internal Revenue Service.
IRS Tax Debt Settlement – The New Fresh Start Tax initiative by the IRS
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.
The IRS goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
With IRS initiative the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
The New Tax Liens policy from IRS
IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers.
The new tax 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 federal tax 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.
Both the taxpayer and the IRS benefits from this. This is another in a series of steps to help struggling taxpayers.
In 2008, the IRS announced lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems. And last year, the IRS held about 1,000 special open houses to help small businesses and individuals resolve tax issues with the Agency.
The New Federal Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised.
Currently, federal tax liens are automatically filed at $10,000 dollar levels for people with past-due balances.
The IRS plans to review the results and impact of the lien threshold change in about a year. IRS should not be filing tax liens unless the tax debt is over $20,000. The filing of a federal tax lien actually cripples taxpayers and their future ability to borrow money. With the IRS filing these tax liens taxpayers are finding it absolutely impossible to pay off their debt because of their credit reporting scores.
The federal tax lien protects the government’s interest it has a completely adverse effect on the taxpayer in many cases taxpayers will never recover from the filing of the federal tax lien.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt.
Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
The New Tax Lien Withdrawals System
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
The New 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:
Tax Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Federal Tax Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
The New Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The New Streamlined Installments for businesses
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
IRS New Tax Debt Settlement procedures – Offers in Compromise
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
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
- Tax Lawyer, Attorney, IRS Tax Debt 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,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
IRS Tax Debt Settlement Tax Lawyer, Attorney – Ft.Lauderdale, Miami – IRS Settlement Experts
by Fresh Start Tax | Feb 20, 2013 | Tax Settlements
Miami, Ft.Lauderdale – IRS Settlements – Former Local IRS Agents 954-492-0088
We are a local South Florida professional tax firm that specializes in IRS tax debt settlements.
We are comprised of tax attorneys, certified public accountants and former IRS agents.
We have over 60 years of working directly for the Internal Revenue Service in the local South Florida offices and we also have worked in both the district and regional IRS offices well.
We not only worked the IRS tax debt settlement program called the offer in compromise but we also were instructors for the program as well.
With that said we know all the tax policies, tax formulas, and tax settlement procedures to go ahead and settle your IRS tax debt if you qualify.
It should be known that not every person qualifies for IRS settlement. IRS has strict guidelines for the acceptance of an IRS settlement called an offer in compromise. You should not pay any firm unless your case been fully reviewed and they have indicated to you that you are a candidate for the offer in compromise program.
There are many companies out there that will tell you that we can save you” pennies on the dollar” but after working for IRS for several years and working thousands of cases I urge caution before submitting any offer in compromise.
You can call us today for a free consultation regarding submission of an offer in compromise.
The new IRS settlement program called the fresh start initiative
An new IRS offer in compromise allows you to settle your tax debt for less than the full amount you owe.
It may and could be a legitimate tax option if you can’t pay your full tax liability, or doing so creates a financial hardship.
The Internal Revenue Service considers your unique set of facts and circumstances before accepting a IRS Settlement. they will consider,
a. Ability to pay,
b. Income;
c. Expenses and
d. Asset and equity.
Approvals of offers and compromise
We generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
IRS will explore all other payment options before accepting an offer in compromise. 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.
Make sure you are eligible by having a tax professional qualify your case before submission to the IRS.
Qualifications for offer and compromise
1. Before we can consider your offer, you must be current with all filing and payment requirements.
2. You are not eligible if you are in an open bankruptcy proceeding.
Submission your IRS Settlement – Necessary Forms
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;
Application Fee.
$150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Payment options
Your initial payment will vary based on your offer and the payment option you choose:
1. 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.
2. 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 IRS Settlement Process
While your offer is being evaluated you will need to now:
1. 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);
2. A Notice of Federal Tax Lien may be filed;
3. Other collection activities are suspended;
4. The legal assessment and collection period is extended;
5. Make all required payments associated with your offer;
6. You are not required to make payments on an existing installment agreement; and
7. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Miami, Ft.Lauderdale – IRS Settlements – Former Local IRS Agents – South Florida
