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
by Fresh Start Tax | Sep 17, 2012 | IRS Tax Debt, Tax Relief, Tax Settlements
There are many IRS tax settlement experts that you can find on the Internet. I Googled the word tax settlement experts and found over 7,300,000 searches available for IRS tax settlement experts.
Needless to say there are tons of people lying about being IRS tax experts.
Being a Former IRS Agent and teaching instructor with the IRS I can tell you a truly good settlement expert is hard to find. Many of these so called experts actually hurt their clients than helped them. Many of these so called experts gave me a road map to take enforced collection action.
The reality of the situation is this, there are some good tax settlement experts and your job is to be able to discern who is the best for you. There are certain qualifications you should look for in choosing the person that will be able to close your case with the IRS and get you the tax settlement you need to get your life back in order worry free. Check out my tax tips.
How to pick a IRS Tax Settlement expert to get you a tax resolution.
1. How many years work experience does the tax professional have that will be working your case,
2. How many cases has the person worked who will be handling your case,
3. Given like kinds of cases, what could an expected result be,
4. What is the Better Business Bureau Rating of the tax firm,
5. How many other persons at the firm can work your case is something happens,
6. Are there complaints reports on record for the tax professional,
7. What are the fees? Will they be put in writing?
There is a general caution or warning if a tax professional will not flat fee bill on tax resolution cases. Professionals that have a lot of experience know exactly how long these cases will take and should be able to give you a flat fee agreement. Insist on it or walk away.
IRS Tax Settlements can be broken into 3 categories. IRS will either place your case in:
- Hardship ,
- Payment Plan or Installment Agreement,
- Offer in Compromise.
Before the IRS will place you into a closed file for tax resolution, IRS will require a IRS financial statement. You will need to complete a form 433A or a 433F and have that form completely documented with bills, receipts, bank statements etc.
Another important aspect of the tax settlement is to understand the Nation Standards Program. The amounts of the national standards allowed for each area are listed on our website.
You can call us today for a free tax consult and we can walk you through the IRS tax resolution program.
Call us today to find out which category you are eligible for. 1-866-700-1040
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 | Sep 10, 2012 | IRS Tax Debt, IRS Tax Problem, Tax Settlements
Looking for a Tax Debt Settlement Company on the Internet is overwhelming.
There are hundreds to chose from. So how do you know who to pick?
This article is written by a former IRS agent who has worked over 15,000 cases.
It is important to understand the tax debt settlement vertical.
Many of the companies that advertise on the Internet are lead generation companies, that is, they sell your information to the highest bidder. Say $55 a lead.
You can tell a lead generation company because they have no substance to there website. If you check the firm page and bio’s, there is very little information. Many times they are called splash pages or sucker pages.
Many companies claim an “A” rating by the BBB but have had another business qualify there tax vertical. You must be extremely careful when choosing a tax debt settlement company.
What to look for when selecting a Tax Debt Settlement Company
1. Check out the firm bio page and make sure there are the tax professionals working for the tax debt settlement firm. Solid tax debt companies gladly show off there professionals and put up there bio’s on the firm page so you know who will representing you.
2. Who will actually work your case. Are you able to speak directly to the person working your case on the first call. Many tax debt companies have third parties taking the calls who have no knowledge of the tax business. Make sure you know the skill level of the person giving you the advice when you call for the very first time.
3.Beware of Closers. Many firms employ closers, that is a person who will sign you up , make a commission and pass you on to another person.
The unfortunate thing about this is the closer is a salesperson and not a skilled professional. This is the biggest caution. These closers are found in large internet companies and are only there to get a commission from you. Most of the time they cannot even fill out there own income tax return.
4. BBB Rating. Check for the BBB rating but more importantly check out the complaints and how recent they are. Solid companies will have none or under three.
5. Make sure someone does not scare you over the phone. Many persons who use closers will scare you into signing up. They will even tell you will have criminal problems. Do not believe their lies. IRS works less than 5,000 criminal cases a year.
6. Any solid firm will let you speak directly to a Tax Attorney, CPA or Former IRS agent whose credential are posted on their website. If you clearly do not see pictures of the professionals and their credentials, run fast. They are scam artists.
7. Fees. A professional tax firm will not charge exorbitant fees because they are not paying sales commissions. Do not be ripped off by scam internet companies.
Call us today to find out more. 1-866-700-1040. Free Consults.
by Fresh Start Tax | Aug 24, 2012 | Tax Settlements
Fresh Start Tax L.L.C. is one of the best tax rated tax settlement companies in the tax resolution industry today. 1-866-700-1040.
Check our BBB ratings and you will find absolutely NO COMPLAINTS.
You should know that there is no one industry rating system in the tax settlement vertical . Companies that claim to rate companies many times are owned by certain tax resolution companies that will drive traffic to themselves.
So when we say we are the best rated, a better terminology would be, “we are one of the best rated tax settlement company because of our outstanding track record”.
The pure truth, there are many excellent best rated tax settlement companies. You must search to find them.
The discerning factors of tax settlement companies.
To grade a Tax Settlement Company there are 6 factors to use, each is equally important.
Note – I have earned the right to understand companies because I have worked for the IRS for over 10 years, was a former instructor with the IRS and I hear the IRS employee gossip about different companies. Also be aware I have worked over 15,000 case over my 38 years in the industry.
1. Check out the Better Business Bureau rating of the company.
With that said a company who has been in business for a long time may have one or two complaints, it is only human nature. Today most clients of tax settlement companies actively hit the BBB to complain. This is great source of creditability.
2. Check out the professional profiles of the tax firm.
Typically, you will want to find Tax Attorneys, CPA’s and Former IRS Agents on staff. You want to make sure they have a well rounded staff to handle any and all problems that may arise on your case.
3. Find out who you be working your case.
Many tax resolutions companies will hand the case off to staff in the office. A solid professional tax resolution firm will have the tax professional handle all the work related to your case .
4. Fees.
Most tax settlement companies will give you a flat fee. There is usually no mystery on how long these cases will take from a time point of view. Flat fees are very common. Ranges can be anywhere from $2500 – $5000 depending on the complexity of the case.
5. Guarantees.
If a tax settlement company tells you up front what the results can be without reviewing all the paperwork, you should report them to the IRS.
6. Tax Settlement companies use closers and not professional to sign your up. They make commissions on your case.
This is the biggest CAUTION. The scary fact about tax resolution companies is the simple fact that many use closers to sign you up and collect your money. What is unfortunate, these closers have no idea what a tax lien vs a tax levy. They will promise you the moon just to get you signed up.
Remember, check the company out!! Call us today for a no cost consult and speak directly to a tax professional. 1-866-700-1040.
by Fresh Start Tax | Jul 29, 2012 | FBAR, Tax Lawyer, Tax Returns, Tax Settlements
We specialize in FBAR tax issues. We are experts in IRS FBAR.
By calling us you could avoid criminal prosecution and could potentially save millions of dollars. We can take the fear and worry out of your FBAR tax issue.
Call today and speak directly to a Tax Attorney, Tax Lawyer, CPA or Former IRS Agents.
1-866-700-1040. In Germany Skype is available.
We can file all tax returns necessary for full compliance and negotiate a tax settlement on your case.
We know the tax laws and the tax system. We taught Tax Law at the IRS. We have over 60 years of direct work experience at the local, district and regional office of the IRS.
Call us directly for filing dates and a privileged conversation.
Tax Settlements on FBAR Cases.
How cases are settled for FBAR.
The IRS voluntary disclosure examiners do not have discretion to settle cases for amounts less than what is properly due and owing. That is for security and consistency purposes.
Because the 25 percent offshore penalty is a proxy for the FBAR penalty, other penalties imposed under the Internal Revenue Code, and potential liabilities for years prior to 2003, there may be cases where a taxpayer making a voluntary disclosure would owe less if the special offshore initiative did not exist. We can perform work ups on all cases.
Under no circumstances will taxpayers be required to pay a penalty greater than what they would otherwise be liable for under the maximum penalties imposed under existing statutes. This is finally some good news but no bargain.
IRS tax examiners will compare the amount due under this offshore initiative to the tax, interest, and applicable penalties at their maximum levels and without regard to issues relating to reasonable cause, willfulness, mitigation factors, or other circumstances that may reduce liability for all open years that a taxpayer would owe in the absence of the 2011 OVDI penalty regime.
The taxpayer will pay the lesser amount. If the taxpayer disagrees with the result, the taxpayer may request that the case be referred for an examination of all relevant years and issues .
Remember each case is different than the next, call us to hear the truth from true tax experts.
FBAR – Germany – FBAR IRS Tax Experts – File, Settle – Attorneys, Lawyers, Former IRS – FBAR, Expats
