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 28, 2012 | IRS Tax Debt, New Jersey Tax, Tax Settlements
IRS Tax Debt Relief – Settle Tax Debt – New Jersey
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents and Managers.
We taught the Offer in Compromise Program at the IRS as former IRS agents.
We have over 206 years of professional tax experience and over 60 years working directly for the IRS in positions as agent, Managers and Appeals Agents. We are A plus rated.
Call us for a no cost professional tax consult and speak directly to a true Tax Professional. 1-866-700-1040.
Fresh Start Tax LLC – New Jersey
209 Cooper Ave,
Upper Montclair, NJ 07043
1-866-700-1040
How does IRS Settle your Tax Debt.
At least one of three conditions must be met to qualify a taxpayer for consideration of an Offer in Compromise or a tax debt settlement:
1. Doubt as to Liability of the Tax.
The taxpayer can show reason for doubt that the assessed tax liability or assessment is incorrect,
2. Doubt as to Collectibility.
The taxpayer can show that the tax debt is likely uncollectible in full by the IRS under any circumstances and wishes to compromise the tax debt.
3. Effective Tax Administration.
The taxpayer does not contest liability or collectibility but can demonstrate extenuating or special circumstances that the collection of the debt would create an economic hardship or would be unfair and inequitable.
This type of Offer in Compromise program is available for any taxpayer, but is primarily used by individuals that are elderly, disabled, have medical issues or have special extenuating circumstances. These are rarely accepted.
Doubt as to Collectibility
Doubt as to collectibility means that the taxpayer will never be able to fully pay the tax bill. The IRS will consider a settlement based on the following formula:
a. Settlement Amount = (monthly disposable income x a number of months) + the net realizable equity in the taxpayer’s assets.
b. Disposable income is monthly income minus allowable monthly expenses. It is important to recognize that the IRS will not allow all expenses the taxpayer may actually have.
With the New Fresh Start Program the IRS is allowing more in the way of necessary expenses.
c. The number of months over which disposable income must be calculated into the offer amount is based on the smaller of the number of months remaining until the Collection Statute Expiration Date for the tax debt OR either 12 or 24 months, depending on the payment option for the Offer in Compromise which the applicant is selecting.
d. Net realizable equity in assets is the quick sale value of the asset (often 80% of Fair Market Value minus any liabilities which are secured by the asset (e.g., a loan).
If a taxpayer believes he or she qualifies, the taxpayer completes a 433 OIC financial statement along with a 656 form to the IRS. At Fresh Start Tax LLC we qualify any offer before submission.
IRS can still proceed with collection.
Some of the actions we may take to collect taxes include:
1. Filing a Notice of Federal Tax Lien
2. Serving a Notice of Levy, or
3. Offsetting a refund to which you are entitled
The federal tax lien is a legal claim to your property, including property that you acquire after the lien arises.
The federal tax lien arises automatically when you fail to pay in full the taxes you owe within ten days after we send our first notice of taxes owed and demand for payment.
The government also may file a Notice of Federal Tax Lien in the public records.
The Notice of Federal Tax Lien publicly notifies your creditors that the IRS has a claim against all your property, including property acquired by you after the Notice of Federal Tax Lien is filed .
The filing of a Notice of Federal Tax Lien may appear on your credit report and may harm your credit rating.
Once a federal tax lien arises, the IRS generally cannot release the lien until the taxes, penalties, interest, and recording fees are paid in full or until the IRS may no longer legally collect the tax.
The IRS may withdraw a Notice of Federal Tax Lien if the IRS determines that
1. the Notice was filed too soon or not according to IRS procedures;
2.you enter into an installment agreement to satisfy the liability unless the installment agreement provides otherwise;
3.withdrawal will allow you to pay your taxes more quickly; or
4.withdrawal is in your best interest, as determined by the National Taxpayer Advocate, and the best interest of the government.
Call us today and hear the truth about your case 1-866-700-1040.
IRS Tax Debt Relief – Settle Tax Debt – Upper Montclair and other cities.
by Fresh Start Tax | Nov 20, 2012 | California Tax, IRS Representation, IRS Tax Debt, Tax Settlements
IRS Tax Debt Settlements – IRS Tax Resolution- Fresh Start Tax LLC
Have Former IRS Agents, Managers and Instructors settle your IRS tax debt. Yes, IRS tax resolution is now possible through the New IRS Fresh Start Program. 1-866-700-1040.
We will at no cost qualify you for a IRS Tax Debt Settlement.
Last year the IRS received about 59,000 offers in compromises or IRS tax debt settlement requests. It accepted just north of 20,000.
Almost one-third of all IRS tax debt settlements get accepted by the IRS and the average settlement is$ .14 cents on a dollar.
From start to finish the average taxpayers wait almost 5 months before acceptance.
We have worked thousands of cases since 1982 and we are A plus rated the Better Business Bureau.
We will pre-qualify any Offer before it is filed. We take no money from a client unless you have a excellent chance of acceptance.
Simply fill out a 433A and we will determine your chance of acceptance.
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 New Streamlined Offer in Compromise process includes:
a. Fewer requests for additional financial information,
b. If necessary, requests for additional information by phone, not by mail,
c. Greater flexibility when considering your ability to pay the tax.
The IRS changes to financial analysis that add more flexibility to the OIC process :
1. Greater flexibility in determining the equity in assets,
2. Greater flexibility in determining the allowable living expenses,
3. Reducing the amount of future income included in the offer,
4. Decreased time frame to complete the OIC payment process .
IRS will required a detailed 433 OIC and a 656. You can view those forms on our website. Homepage tool bar, IRS forms
Call us today for a no cost professional tax consult from Former IRS Agents and Managers.1-866-700-1040.
Fresh Start Tax
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
IRS Tax Debt Settlements – IRS Tax Resolution – Local, Former IRS – Costa Mesa, Long Beach, Newport, Luguna, Fullerton, Anaheim, Glendale, Orange
by Fresh Start Tax | Nov 11, 2012 | Back Taxes, Expatriate Tax, FBAR, IRS Representation, IRS Tax Debt, IRS Tax Problem, Tax Lawyer, Tax Returns, Tax Settlements
Australia- FBAR, EXPAT – Attorney, Lawyers, Former IRS – Filing, Penalties, Settlement – Affordable Tax Experts
Do not be bullied by the IRS. Find out the truth about FBAR disclosures to the IRS.
You have options. We can file and settle your case.
Call us today, we are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents, Managers and Instructors. 1-866-700-1040.
We have over 206 years of total tax experience and over 60 years of direct IRS experience in resolving IRS tax issues and tax problems. We are a full service tax firm with all work being done in house by true tax experts.
We are true Tax Experts of FBAR and Expatriate Tax Issues.
There is a great deal on the web and in press releases that has scared many FBAR filers and Expats into taking position on the filing of FBAR that makes one believe that everything must go through Criminal Investigation.
The reality is that few taxpayers are tax criminals. What is so sad it that the IRS has scared everyone to death regarding FBAR.
The truth be told you have the option of making a Silent Disclosure.
Some taxpayers have already made quiet disclosures by filing amended returns.
Before a decision is made on each case, a tax attorney or tax lawyer will use a set of facts particular to that case. There are no two cases the same, each has a unique set of circumstances.
With that said Quiet Disclosure are not for everyone that is why a careful review must be made on each case.
Taxpayers with unreported foreign bank accounts present themselves and their professional advisers with a bunch of very important important decisions they need to make.
These tax and filing decisions must be made based on a very careful review of all material, information, an understanding of the potential tax penalties and interest involved, and the exposure to any other financial crimes, criminal implications or tax penalties.
Regardless of how tempting under no circumstances should Attorneys or Lawyers and taxpayers ignore reporting tax and FBAR tax requirements simply because the IRS has not yet raised the issue in the client’s specific case.
Our rule of thumb, find IRS before they find you.
How the process works.
The IRS does review amended returns and could select any amended return for examination.
If a tax return is selected for examination, the 20 percent offshore penalty would not be available.
Criminal Behavior
When criminal behavior is evident and the disclosure does not meet the requirements of a voluntary disclosure under IRM 9.5.11.9, the IRS may recommend criminal prosecution to the Department of Justice.
Taxpayers who have already made quiet disclosures but have not yet been selected for examination may take advantage of the penalty framework applicable to voluntary disclosure requests regarding unreported offshore accounts and entities, provided they otherwise meet the criteria for voluntary disclosure set forth in IRM 9.5.11.9.
Call us for more detail. 1-866-700-1040. Privileged conversation with a tax attorney or tax lawyers.
What possible forms are needed to be Filed with the IRS ?
Besides federal income tax returns, what forms or other returns must be filed?
The following forms must be filed:
a. Copies of original and amended federal income tax returns for tax periods covered by the voluntary disclosure,
b. Complete and accurate amended federal income tax returns (or original returns, if not previously filed) of the taxpayer for all tax years covered by the voluntary disclosure;
c. An explanation of previously unreported or under reported income or incorrectly claimed deductions or credits related to undisclosed foreign accounts or undisclosed foreign entities, including the reason(s) for the error or omission,
d. If the taxpayer is a decedent’s estate, or is an individual who participated in the failure to report the foreign account or foreign entity in a required gift or estate tax return, either as executor or advisor, complete and accurate amended estate or gift tax returns (original returns, if not previously filed) necessary to correct the under reporting of assets held in or transferred through undisclosed foreign accounts or foreign entities;
Complete and accurate amended information returns required to be filed by the taxpayer, including, but not limited to,
a. Tax Forms 3520,
b. 3520-A,
c. 5471,
d. 5472,
e. 926 and
f. 8865 (or originals, if not previously filed) for all tax years covered by the voluntary disclosure, for which the taxpayer requests relief; and
Complete and accurate Form TD F 90.22-1, Report of Foreign Bank and Financial Accounts, for foreign accounts maintained during calendar years covered by the voluntary disclosure.
Call us today for more details and find you the truth. you do not have to be worried. 1-866-700-1040
by Fresh Start Tax | Nov 9, 2012 | Expatriate Tax, FBAR, Offshore Program, Offshore Tax Problems, Tax Lawyer, Tax Settlements
Offshore Bank Accounts – File & Settle – IRS Federal Tax Representation – Attorneys, Lawyers, Former IRS – Experts,
Stop the worry today, call one of the Attorneys or Lawyers and get a free confidential consultation.
We are a professional tax firm specializing in IRS tax matters including Offshore Bank Accounts, Filing, Amending, Penalty Abatement, Representation and FBAR and Expatriate Tax Representation.
We have over 60 years of directly working for the Internal Revenue Service as Agents, Managers and Instructors. We have over 205 years of tax firm tax experience.
As Former IRS agents we taught Tax Law and know all of settlement and closing policies of the Internal Revenue Service.
We can completely settle and negotiate your case no matter what the IRS tax issue.
Things you should know
1. You Must Report Worldwide Income.
You must report your worldwide income on your U.S. income tax return. You must check “yes” (on Schedule B) if you have an interest in a foreign bank or financial account.
Worldwide income includes interest, foreign earnings, wages, dividends and other income. even if the foreign income is taxed somewhere else.
You can be entitled to a foreign tax credit(s) if you are living and working abroad, you may be entitled to an exclusion from U.S. tax for some or all of the income you earn abroad.
2. Tax Return Reporting
All U.S. persons with foreign bank accounts must also file annually a Treasury Department Form, TD F 90-22.1 Report of Foreign Bank and Financial Accounts–commonly called an FBAR.
3. New Form. Now with your tax return, you may also need to file an IRS Form 8938 to report your foreign accounts and assets. See IRS Form 8938 Or FBAR? and More On IRS Form 8938 vs. FBAR.
4. FBAR Penalties. The penalty for failing to file an FBAR is $10,000 for each non-willful violation. If willful, the penalty is the greater of $100,000 or 50 percent of the amount in the account for each violation. For each year you did not file is are separate violation penalties.
5. Prison. IRS Tax Evasion can carry a prison term of up to five years and a fine of up to $250,000.
a.Filing a false return can mean up to three years in prison and a fine of up to $250,000.
b.Failing to file a tax return can mean a one year prison term and a fine of up to $100,000.
c.Failing to file FBARs can be criminal too with financial penalties up to $500,000 and prison for up to 10 years.
6. Voluntary Disclosure. If you admit that you did not file to the IRS you decide to come forward you can make a voluntary disclosure.IRS will have you pay the back taxes and penalties and you can move forward worry free.
7. Quiet Disclosures. Another option is to make a quiet disclosure which means you simply file or amend your tax returns without any contact with the IRS. Without question you should contact a tax attorney or tax lawyer to walk you through this process.
Common asked question
How can I verify that my FBAR Report was actually filed and received?
Ninety days (90) after the date of filing, the tax filer can request verification that the FBAR was received. An FBAR filing verification request may be made by calling 866-270-0733 and selecting option 1.
Up to five documents may be verified over the phone. There is no fee for this verification.
Alternatively, an FBAR filing verification request may be made in writing and must include the filer’s name, taxpayer identification number and the filing period.
There is a $5 fee for verifying five or fewer FBARs and a $1 fee for each additional FBAR. A copy of the filed FBAR can be obtained at a cost of $0.15 per page. Check or money order should be made payable to the United States Treasury.
The request and payment should be mailed to:
IRS Enterprise Computing Center/Detroit
ATTN: Verification
P.O. Box 32063
Call us today and stop the worry 1-866-700-1040
Offshore Bank Accounts – File & Settle – IRS Federal Tax Representation – Attorneys, Lawyers, Former IRS – FBAR Experts
by Fresh Start Tax | Nov 8, 2012 | California Tax, Tax Help, Tax Lawyer, Tax Settlements
IRS Tax Attorney Lawyers – Reduce IRS Tax Debt- Former IRS
We are a professional tax firm specializing in IRS and State Tax Problems. We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s , Enrolled Agents and Former IRS Agents, Managers and Tax Instructors.
We have over 60 years of direct IRS work experience in the local, district and regional offices of the IRS and over 206 years of professional tax experience. We have a National Tax Practice with a local presence.
We have worked thousands of IRS cases to reduce IRS tax debt.
We taught Tax Law at the IRS.
Fresh Start Tax
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
Last year approximately 59,000 taxpayers applied for tax relief to reduce IRS debt through the Offer in Compromise Program and somewhere around 20,000 offers were accepted.
The New Fresh Start Program that was instituted by the IRS will allow thousands of struggling taxpayers to finally resolve and reduce their tax debts.
Being a Former IRS Agent I caution taxpayers to make sure they use a reputable tax firm to file and represent your interest for the filing of the offer.
The forms must be filled out accurately and precisely because the IRS looks for any reason to reject these cases because they are long and complicated for them and each one of their supervisors must thoroughly review their work and work produce before the case goes up the line for a possible acceptance.
Offer take about 5 months to get accepted.
I would also caution taxpayers do not file the offer unless you get pre-qualified before you file. Do not waste your money.
We at Fresh Start Tax review all offer for no cost. 1-866-700-1040.
What is a Offer in Compromise to Reduce your Tax Bill
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 a payment agreement.
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. They also become a matter of public record.
In the past the IRS strictly applied its rules with respect to taxpayers’ budgets and valuation of assets. As a result, most taxpayers who sought a compromise received a rejection. Below are the statistics for offer acceptances during the past several years:
| Offers |
2007
|
2008
|
2009
|
2010
|
2011
|
| Received by IRS |
46,000
|
44,000
|
52,000
|
57,000
|
59,000
|
| Accepted by IRS |
12, 000
|
11,000
|
11,000
|
14,000
|
20,000
|
Make sure you are eligible
Before the IRS can consider your offer in compromise, you must be current with all filing and payment requirements.
You will not be eligible if you are in an open bankruptcy proceeding.
Submitting your offer in compromise.
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Find this on our website.
Form 433-A (OIC) (individuals) or 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;
$150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a IRS 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.
Call us today for a free tax consult 1-866-700-1040.
