by Fresh Start Tax | Jan 23, 2019 | Tax Help
When you owe IRS back taxes you have different options to satisfy IRS, get them off your back.
The four ways to deal with IRS is through an:
1 .installment or payment arrangement,
2. applying for a currently non-collectible or hardship program,
3. the filing of the offer in compromise or,
4. the expiration of the statute of limitations.
The IRS installment payment agreement.
The Internal Revenue Service accepts 6.5 million payment agreements every year. Some you can get online and others you have to call IRS and submit a current financial statement along with documentation.
IRS will look at the principal amount you owe, your monthly income and expenses, the life of the statute, and your ability to pay back IRS based on your current financial statement. When you call us we will review the different options you have and see which of the programs you qualify for to pay off your IRS tax bill.
Applying for the currently not collectible a hardship program.
About 40% of all cases in the IRS collection cases wind up in the collection Q as currently non-collectible or hardship mode because taxpayers are businesses simply cannot pay their bills at the current time.
Before your case gets put in this mode IRS will need a current financial statement to verify income, expenses and will also require a financial statement in which IRS will require bank statements, pay stubs, copies of all expenses to make sure you have completed an honest financial statement.
Depending on where the case is worked, the IRS will ask for 433A, or 433F.
RECORD REQUIREMENTS. IRS may ask for the last three months, the last six months or in some cases they may want an average of the last year before they place you in hardship. A quick note about IRS hardships or non-collectible cases, the penalties and interest still run and the IRS will review the case and anywhere between one and three years. If your case is placed in non-collectible or hardship, you must keep current on your tax filings and payments for the future years, if not IRS will default the hardship program and can kick the case out to be reworked and you can expect IRS to be much tougher than the first time around.
The filing of the offer in compromise.
IRS accepts about 32,000 offers in compromise each and every year. The average settlement is $9500.
Don’t let the $9500 deceive you because it’s just an average settlement.
Some cases settle for $1 million in some cases settle for $1000. IRS has very specific standards that they use for the acceptance of an offer in compromise and you should seek the help of a true tax professional in filing the offer.
You want to make sure you’re a true qualified candidate before you give your money to any tax firm. I was a former IRS agent and teaching instructor of the offer in compromise when formerly employed by my former boss.
The expiration of the statute of limitations.
IRS has generally a 10 year rule from the date of the assessment in which the statute of limitation expires.
There are three or four different events that can trigger the continuation of the statute of limitations. If your statute has run after the 10 year date your case, the tax debt is permanently dropped from IRS records and no further money is owed to the Internal Revenue Service.
You can find the statute of limitations by ordering an IRS tax transcript and finding out how close you are to the IRS dropping your case off the system.
If you have any questions call us today for a free initial tax consultation and we will walk you through the process.
How Much Do I Owe The IRS – 4 Ways To Pay Off Your IRS Tax Bill
by Fresh Start Tax | Jan 23, 2019 | Tax Help
Individual Payment Plan
Do you qualify?
Your specific tax situation will determine which payment options are available to you. Payment options include full payment, a short-term payment plan (paying in 120 days or less) or a long-term payment plan (installment agreement) (paying in more than 120 days).
You may qualify to apply online if:
• Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns.
• Short-term payment plan: You owe less than $100,000 in combined tax, penalties and interest.
If you are a sole proprietor
What do you need to apply for a payment plan?
• Name exactly as it appears on your most recently filed tax return
• Valid e-mail address
• Address from most recently filed tax return
• Date of birth
• Filing status
• Your Social Security Number (and spouse’s if filed jointly) or Individual Tax ID Number (ITIN)
• If you previously registered for an Online Payment Agreement, Get Transcript, or any Identity Protection PIN (IP PIN), you should log in with the same user ID and password
If we approve your payment plan, one of the following fees will be added to your tax bill. If you owe a balance over $25,000 you must make automatic payments from your checking account (direct debit).
Plan Option & Costs
Pay now (Pay in full the amount you owe in one payment)
• $0 setup fee
• No future penalties or interest added
Pay amount owed in full today by automatic payment from your checking account or by check, money order or debit/credit card.
Fees apply when paying by card.
Short-term payment plan (120 days or less)
• $0 setup fee
• Plus accrued penalties and interest until the balance is paid in full
Pay amount owed by automatic payment(s) from your checking account or by check, money order or debit/credit card.
Fees apply when paying by card.
Long-term payment plan (installment agreement) (paying in more than 120 days through automatic withdrawals)
• $31 setup fee (low income: setup fee waived)
• Plus accrued penalties and interest until the balance is paid in full
Pay amount owed through direct debit (automatic payments from your checking account). Also known as a Direct Debit Installment Agreement (DDIA).
Long-term payment plan (installment agreement) (paying in more than 120 days)
• $149 setup fee (low income: $43 setup fee that may be reimbursed if certain conditions are met)
• Plus accrued penalties and interest until the balance is paid in full
Pay amount owed using a different — non-Direct Debit — electronic method of payment such as Direct Pay or debit/credit card. May also pay by check or money order. Visit the
Payments page to view all payment options.
Fees apply when paying by card.
Reviewing a payment plan
You can view details of your current payment plan (type of agreement, due dates, and amount you need to pay) by logging into the Online Payment Agreement tool using the Apply/Revise button below.
What you can change using the Online Payment Agreement tool
If your existing payment plan is not paid through a direct debit, you can use the Online Payment Agreement tool to make the following changes:
• Change your monthly payment amount
• Change your monthly payment due date
• Convert an existing agreement to a direct debit agreement
• Reinstate after default
You can log into the Online Payment Agreement tool using the Apply/Revise button below.
If your payment plan is paid through direct debit, you must contact us to make a change.
How to revise an online payment plan
Log in to the Online Payment Agreement tool using the Apply/Revise button below. On the first page, you can revise your current plan type, payment date, and amount. Then submit your changes.
If your new monthly payment amount does not meet the required payment amount, you will be prompted to revise the payment amount. If you are unable to make the minimum required payment amount, you will receive directions for completing a Form 433-F Collection Information Statement (PDF) and how to submit it.
If your plan has lapsed through default and is being reinstated, you may incur a reinstatement fee.
Business Payment Plan
Do you qualify?
Your specific tax situation will determine which payment plan options are available to you. Payment options include full payment or a long-term payment plan (installment agreement) (paying in more than a 120 days).
You may qualify to apply online, if:
• Long-term payment plan (installment agreement): You have filed all required returns and owe less than $25,000 in combined tax, penalties, and interest.
If you are a sole proprietor or independent contractor, apply for a payment plan as an individual.
Note: Setup fees may be higher if you apply for a payment plan by phone, mail, or in-person. Get more information on other payment plan options and fees.
What does my business need to apply?
• Your Employer Identification Number (EIN)
• Date the business was established (MM/YYYY)
• Address from most recently filed tax return
• Your Caller ID from notice
Plan Option & Costs
Pay now
• $0 setup fee
• No future penalties or interest added
Paid with automatic payments from your checking account or check, money order or debit/credit card.
Fees apply when paying by card.
Long-term payment plan (installment agreement) (paying in more than 120 days through automatic withdrawals)
• $31 setup fee
• Plus accrued penalties and interest until the balance is paid in full
Paid through direct debit (with automatic payments from your checking account).
Long-term payment plan (installment agreement) (paying in more than 120 days)
• $149 setup fee
• Plus accrued penalties and interest until the balance is paid in full
Not paid through direct debit. Can be paid by any other electronic method such as direct pay or debit/credit card. May also be paid by check or money order.
Fees apply when paying by card.
How do I review or revise an existing plan?
Reviewing a payment plan
You can view details of your current payment plan (type of agreement, due dates, and amount you need to pay) by logging into the Online Payment Agreement tool using the Apply/Revise button below.
What you can change using the Online Payment Agreement tool
If your existing payment plan is not paid through a direct debit, you can use the Online Payment Agreement tool to make the following changes:
• Change your monthly payment amount
• Change your monthly payment due date
• Convert an existing agreement to a direct debit agreement
• Reinstate after default
You can log into the Online Payment Agreement tool using the Apply/Revise button below.
If your payment plan is paid through direct debit, you must contact us to make a change.
How to revise an online payment plan
Log in to the Online Payment Agreement tool using the Apply/Revise button below.
On the first page, you can revise your current plan type, payment date, and amount. Then submit your changes.
If your new monthly payment amount does not meet the required payment amount, you will be prompted to revise the payment amount. If you are unable to make the minimum required payment amount, you will receive directions for completing a Form 433-F Collection Information Statement (PDF) and how to submit it.
If your plan has lapsed through default and is being reinstated, you may incur a reinstatement fee.
by Fresh Start Tax | Jan 23, 2019 | Tax Help
Business Payment Plan
Do you qualify?
Your specific tax situation will determine which payment plan options are available to you. Payment options include full payment or a long-term payment plan (installment agreement) (paying in more than a 120 days).
You may qualify to apply online, if:
• Long-term payment plan (installment agreement): You have filed all required returns and owe less than $25,000 in combined tax, penalties, and interest.
If you are a sole proprietor or independent contractor, apply for a payment plan as an individual.
Note: Setup fees may be higher if you apply for a payment plan by phone, mail, or in-person. Get more information on other payment plan options and fees.
What does my business need to apply?
• Your Employer Identification Number (EIN)
• Date the business was established (MM/YYYY)
• Address from most recently filed tax return
• Your Caller ID from notice
Plan Option & Costs
Pay now
• $0 setup fee
• No future penalties or interest added
Paid with automatic payments from your checking account or check, money order or debit/credit card.
Fees apply when paying by card.
Long-term payment plan (installment agreement) (paying in more than 120 days through automatic withdrawals)
• $31 setup fee
• Plus accrued penalties and interest until the balance is paid in full
Paid through direct debit (with automatic payments from your checking account).
Long-term payment plan (installment agreement) (paying in more than 120 days)
• $149 setup fee
• Plus accrued penalties and interest until the balance is paid in full
Not paid through direct debit.
Can be paid by any other electronic method such as direct pay or debit/credit card. May also be paid by check or money order.
Fees apply when paying by card.
How do I review or revise an existing plan?
Reviewing a payment plan
You can view details of your current payment plan (type of agreement, due dates, and amount you need to pay) by logging into the Online Payment Agreement tool using the Apply/Revise button below.
What you can change using the Online Payment Agreement tool
If your existing payment plan is not paid through a direct debit, you can use the Online
Payment Agreement tool to make the following changes:
• Change your monthly payment amount
• Change your monthly payment due date
• Convert an existing agreement to a direct debit agreement
• Reinstate after default
You can log into the Online Payment Agreement tool using the Apply/Revise button below.
If your payment plan is paid through direct debit, you must contact us to make a change.
How to revise an online payment plan
Log in to the Online Payment Agreement tool using the Apply/Revise button below. On the first page, you can revise your current plan type, payment date, and amount. Then submit your changes.
If your new monthly payment amount does not meet the required payment amount, you will be prompted to revise the payment amount. If you are unable to make the minimum required payment amount, you will receive directions for completing a Form 433-F
Collection Information Statement (PDF) and how to submit it.
If your plan has lapsed through default and is being reinstated, you may incur a reinstatement fee.
by Fresh Start Tax | Jan 23, 2019 | Tax Help
Generally, there is a 10 year statute of limitations on the IRS collection process.
So the question is what is the date of the assessment?
The date of the assessment is the time which IRS receives your tax return and officially puts it on the IRS computer system.
A computer staff person of the Internal Revenue Service places your account with all important data on the IRS system, thus begins the date of the assessment.
Generally the time is approximately 4 to 6 weeks after a tax return is filed.
If you do not file a tax return the 10 year period does not run.
It is important to remember that it has nothing to do with the tax year involve, it all as determined on the date of the assessment
The 10 year statute of limitation can be extended due to cause.
The ten-year collection period can end up lasting more than ten years because it can be suspended.
What causes the 10 year statute of limitation to be extended??
The general rule is that if IRS is barred by any action the 10 year period of time is suspended by the Internal Revenue Service.
This means that the limitations period is suspended if you file for bankruptcy and the bankruptcy court issues an automatic stay preventing the IRS from taking collection action against the taxpayer, the suspension lasts for the period of the bankruptcy case plus six months.
The period is also suspended while the IRS is considering your request for an installment agreement, offer in compromise, or request for innocent spouse relief, or while you live outside the U.S. continuously for at least six months.
The IRS can also extend the ten-year period by suing you in federal court, however, it rarely does this.
Voluntarily Extending the Limitations Period
The ten-year limitations period is not absolute.
It can be extended if you voluntarily agree to do so.
The IRS uses form 900 and may ask the taxpayer to extend the statute of limitations on a collection case. Many times they use this as leverage against the taxpayer because the IRS feels they can possibly collect the debt somewhere in the future but not at the current time.
Many times a revenue officer may seek to extend the statute of limitations and a taxpayer will tell the agent to go take a hike, this may not be a good idea because the IRS and the revenue officer can start to take immediate collection action.
You should speak to a tax professional that the IRS ever ask you to sign a 900 waiver to extend the statute of limitations.
Payment Agreements
However, if you enter into an installment agreement with the IRS allowing for partial payment of the amount due, you may be likely ask have to sign a form waiving the ten-year limitations period.
But this extension can be no more than six years.
If your limitations period is nearing its end and you still owe the IRS substantial money, IRS personnel may offer you an installment agreement with attractive terms in order to get you to agree to extend the collection deadline.
Consider carefully before agreeing to any such extension. It’s always best to ask a true tax professional who knows the system before signing any waiver or extension statute
Many times it better off refusing to extend the deadline and let the IRS collect whatever it can before it runs out.
Many times good tax planning can avoid the IRS getting into your pocket at the last minute.
Contact us today if you have any questions.
by Fresh Start Tax | Jan 23, 2019 | Tax Help
The IRS understands that all taxpayers due to financial circumstances in their life cannot pay the IRS at the current time. The Internal Revenue Service has what is called the currently not collectible or hardship program that taxpayers can enter onto to stop the IRS collection process on back taxes.
keep in mind this is a temporary delay of the collection process which usually lasts between one and three years. during this period of time if IRS agrees to put your case into currently not collectible you must file and pay your taxes timely moving forward if not IRS will send the case back out in the enforcement letters and enforcement action will follow.
Temporarily Delay the Collection Process
If IRS determines that you cannot pay any of your tax debt, we may report your account currently not collectible and temporarily delay collection until your financial condition improves.
Being currently not collectible does not mean the debt goes away, it means the IRS has determined you cannot afford to pay the debt at this time.
How To do this:
Prior to approving your request to delay collection, IRS may ask you to complete a Collection Information Statement (Form 433-F, Form 433-A or Form 433-B) and provide proof of your financial status (this may include information about your assets and your monthly income and expenses).
You should know that if the IRS does delay collecting from you, your debt will increase because penalties and interest are charged until you pay the full amount.
During a temporary delay, IRS will again review your ability to pay.
IRS may also file a Notice of Federal Tax Lien to protect the government’s interest in your assets.
by Fresh Start Tax | Jan 22, 2019 | Tax Help
We are the premier Christian tax experts in the US and have over 200 years of direct tax experience and over 100 years of working directly for the Internal Revenue Service. <><
Proverbs 12:15
The way of a fool is right in his own eyes, but a wise man listens to advice.
Proverbs 11:14
Where there is no guidance, a people falls, but in an abundance of counselors there is safety.
I am a former IRS agent and teaching instructor with the Internal Revenue Service.
When I was employed by the Internal Revenue Service I work the offer in compromise program.
We know all the settlement programs with Internal Revenue Service and based on your financial statement we will place you in the program that that’s fit your needs.
PROGRAMS: IRS & State Tax Programs:
There are three general programs both used by the state and federal governments. As a general rule you can be placed into current hardships, or your case can be placed in installment and monthly payment agreements or you can try to sell your debt to the various programs offered by state agencies or the Department of treasury the Internal Revenue Service which program is called the offer in compromise.
We can prepare all back tax returns with or without records get them on the IRS computer and settle your tax debt all at the same time.
As a result, we know all the inside secrets the methodologies and all the back tax programs to settle back taxes available.
Not only did I accept and reject offers in compromise, I was also a teaching instructor at the service center to help qualified revenue officers decide which offers to accept and reject.
Given the above information, I can tell you I am a true expert for the IRS offer in compromise and I wish to explain to you whether an offer in compromise is a viable option for you.
Due to social media, marketing and advertising the assumption by the general public is that IRS can settle tax debt for pennies on the dollar.
Let me first let you know that IRS does accept offers in compromise and as a matter of fact last year approximately 32,000 offers in compromise were accepted out of the 78,000 were filed.
That number varies from year to year but the percentages usually remain the same of acceptability.
The average settlement was $9500 per case but remember that is just an average in not everybody can settle their tax debt for $9500.
There is much information you need to know before you go off filing an offer of compromise and giving your money to some firm to try to pull off some amazing trick because you have been sold a bill of goods and bought in to some marketing ploy and they’ve convinced you are a settlement candidate.
The IRS Process: State governments differ on the exact process but they are very similar.
It first starts with the review of your personal financial statement which is found on the 433 OIC.
When the offer in compromise gets sent in to the Internal Revenue Service it is met with the reviewer that make sure that you are truly qualified candidate for the offer in compromise program.
That reviewer checks the completed form to make sure it is a valid agreement. The offer in compromise is a legal document between you and the Internal Revenue Service.
If IRS were to accept the offer and the next day you win the lottery the accepted offer still stands.
Also reviewer make sure that all the documentation is attached so that the revenue officer who will work your offer in compromise can move forward.
Approximately one-third of all offers in compromise are sent back to the taxpayer because the offers are not filled out correctly or the appropriate documentation is not attached.
IRS will check to make sure all your tax returns are current and filed on the IRS system. Not only do your taxes have to be current with filing but IRS is also going to check to make sure your current on your withholding or your estimate tax payments. you cannot go into IRS estate tax government and asked for any type of settlement or agreement until all your tax returns are at the very least filed.
It is critically important you know that you must have all tax returns filed before IRS will process your offer.
You should know that the Internal Revenue Service rejects an offer before it accepts an offer. one of the basic rules is that the revenue officer is lazy and is easier to mark rejected then they go through all the work of accepting an offer in compromise.
I should know this is a former instructor of the offer in compromise I see many revenue officers simply send offers back because some of the eyes were not dotted in the T’s were not crossed.
Due to the volume of cases the IRS has, which is over 7500 cases waiting in the IRS Q, is far easier for the IRS to say no then to accept because an average of anywhere between 20 and 40 hours are spent on accepting the offer in compromise.
If you have an offer in compromise accepted, four signatures are generally required for signature as it goes up and down the chain. The larger the dollar amount the more signatures are required on the offer in compromise.
So how do you know if the offer in compromise is right for you.
Call for a free initial tax consultation and hear the truth from a true IRS tax debt settlement former agent.
The first place to go is to fill out the IRS pre-qualifier tool for the offer in compromise. Because of so many scrupulous tax companies that have been ripping people off, the IRS wanted to make sure the general public has a tool that they can use to find out if they are prequalified to file the offer in compromise to make sure it is a viable option.
It contains all the necessary information in regard to your income, your expenses and your assets and it predetermined for you whether the offer in compromise is even a viable option for you.
IRS will take a very close look at the liquidity of your assets, your current income, and your monthly expenses before it renders a decision as IRS wants to make sure it collects all the money from you that they can within the 10 year statutory period of time.
One of the questions the agent will want to consider is, can we collect more money over 10 years than accept the current agreement on the table for the IRS offer in compromise.
As a general rule, you will have to give IRS your total liquidity of all your assets before they will even consider the acceptance of an offer in compromise.
IRS on larger dollar cases is a tremendous amount of due diligence. As a former IRS agent I can’t tell you the amount of time I spent on large dollar cases because many times there is a greater degree of fraud and hiding things.
The IRS has a wealth of information on the various computers they can use to dig and find assets or income.
Make sure you are very truthful on the financial statements and documentation you give to the Internal Revenue Service.
Why? you may ask is because all offers in compromise are open for public inspections at eight regional offices throughout the United States.
Your offer in compromise must be thoroughly documented which includes all your bank statements for the last six months to a year, all your pay stubs, all your monthly expenses along with certain documentation for assets that have value.
IRS also takes a look at the values of your pensions, your IRA, your business as well.
The offer in compromise is one of the most reviewed documents, it is like going through a mini audit.
Some of the due diligence that IRS will conduct on a larger dollar cases is checking Google, the accurate search engine, Department of Motor Vehicles, real estate records, insurance policies, credit reports, loan applications, insurance policies, and inter-government agency records including those garnered by Homeland security and other such agencies.
Before you contemplate filing the offer in compromise and wasting your money on a company that has promised you they can settle your case for pennies on the dollar, you would be wise to give us a call to have an actual former IRS agent and teaching instructor of the offer in compromise give you the green light.
You should also know if an offer in compromise is not except that you have the right to appeal it and if the appeal is not accepted you can file an offer at a later time.
When you call our office you will speak to true IRS tax experts who knows the system and can tell you what to expect and tell you how to settle for the lowest amount possible.<><
When you call our office will review every single back tax program available, and generally there’s three the hardship program the payment agreement program and the most popular back tax program the offer in compromise which completely settles your IRS tax debt but you must be a candidate that fits the IRS criteria.
Call us today for a free initial tax consultation, you will hear nothing but the truth from former IRS agents who know and understand the methodologies of the offer in compromise to make sure it is right for you.
When you call, please feel free to ask us about our faith.<><
CHRISTIAN TAX HELP + Christian Services TAX DEBT Relief Help
