by Fresh Start Tax | Apr 9, 2020 | Tax Help
Get All Your Back Tax Returns Filed Immediately. We are the affordable Christian Tax Service Firm. Since 1982
We are a Christian Tax Services company. <><
We are a local South Florida tax firm.
We have over 100 years of direct IRS work experience and over 200 years of professional tax experience.
We can assure you will pay the lowest amount of tax allowed by law.
Just call us today for a free initial tax consult.
If you owe back taxes, we can settle your tax bill as well, we can handle everything.
If you have many back years to file, please read:
IRS Policy Statement 5-133, Delinquent Returns—Enforcement of Filing Requirements, provides a general rule that taxpayers must file six years of back tax returns to be in good standing with the IRS.
The policy also states that IRS management would have to approve any deviation from that rule.
Sometimes, IRS managers will require tax returns from even further back than six years, depending on:
• The degree of flagrancy.
• A prior history of noncompliance.
• The impact on future voluntary compliance.
• The existence of income from illegal sources.
• Whether there is minimal or no tax due.
• The IRS’s costs to secure the return versus anticipated tax revenue.
The IRS can require more back tax returns in three common situations:
As a former IRS agent there were certain cases that I found during the investigatory process that I wanted more tax returns in the policy statement allotted for.
These are the most common reasons the IRS requires returns from more than six years back:
1. There’s a large potential and collectable liability:
The IRS may extend the return requirement if the taxpayer’s wage and income information (found on wage and income transcripts) indicates a potentially large tax liability for the older, unfiled years. The most common red flags are Forms 1099-MISC, Miscellaneous Income, property sales, and large wages with no withholding.
2. There are business returns involved and monies can be collected.
The IRS will closely scrutinize business returns, for several reasons:
• Businesses often have unknown activity with potentially large balances owed.
• Businesses aren’t subject to much reporting with information statements.
• The IRS knows that businesses have the largest potential for noncompliance.
3. A revenue officer is on the case and feels something out there.
Delinquent return investigations can involve local field collection personnel (revenue officers), who perform in-depth investigations on non-filing and collection.
Because they often handle business and payroll collection, revenue officers can often require more than six years of back tax returns. But remember, the key factor it must have some collection potential.
For most individual cases when taxpayers don’t have a revenue officer, the IRS usually accepts the past six years of returns to put clients in good standing with the IRS.
The Use of IRS Transcripts
Anytime I get involved in the processing of this policy statement by IRS I pull IRS transcripts which give me a complete account history and all income records from the IRS for the past six years.
Transcripts can be helpful in completing back tax returns: It’s essential to prepare an accurate return that matches IRS records. If your records do not match up with the income shown by the Internal Revenue Service you may wind up with the mail correspondence audit.
Make sure the return reports all items on the transcript.
The Penalty Phase
Years with balances due will have associated penalties:
• Failure-to-file penalty (5% per month, maximum of 25%).
• Failure-to-pay penalty (0.5% per month, maximum of 25%); combined with the failure-to-file penalty, together they can reach a maximum of 47.5%.
• Fraudulent failure-to-file penalties triple the normal failure-to-file penalty,increasing the maximum penalty from 25% to 75%.
The IRS may have filed a return for your client: SRF tax returns
The IRS usually starts this process, called a substitute for return (SFR), about two to three three years after the due date of the return. When your client files a return to replace an SFR, the IRS will scrutinized a little more the replacement return and compare it to information statements on file. Make sure you file accurate tax returns.
Have any questions about this process call us today and hear the truth.
Ft.Lauderdale + Need to File Back Tax Returns ASAP + Former IRS + Christian Tax Filing Services
by Fresh Start Tax | Apr 8, 2020 | Tax Help
As a former IRS agent I accepted and rejected offers. I know the system inside and out. “Free Consults”, Know the Truth, Since 1982. A Plus Rated BBB. Appeal NOW! <><
If you need help with an offer in compromise call me for free consult. I know the system, I can help you get through the process of the offer in compromise.
Our firm has over 100 years of combined IRS experience in over 200 years and tax representation. I am a national expert in the often compromise.
We are Christian tax firm referred out by Crown Financial ministries.
We are affordable nationwide tax experts, since 1982. A plus rated. We know the system.
Offers in compromise are not as simple as people think.
There is much time and effort spent by a Revenue Officer who is specifically trained to both accept and reject the OIC.
There’s a tremendous amount of due diligence that takes place for an IRS agent to accept an offer in compromise.” most offers in compromise are rejected by the Internal Revenue Service because of a pure lack of knowledge about the process, the procedures and the regulation about the program.” Michael Sullivan
Most people do not know that the offer in compromise once excepted becomes a public document that can be inspected by anybody.
The IRS offer in compromise is like an IRS audit, everything must be documented, everything must make sense, and it must be signed up off the line because the government is doing something that they do not need to do. They are reducing your tax debt.
I have reviewed hundreds upon hundreds of offers in compromise and it takes a true offer technician to get an offer in compromise through.
Simple offers in compromise with people who have little or nothing are really not difficult at all but once there is an asset base, profit and losses, assets, pensions and a host of other considerations, offers in compromise become very very complicated.
It is always best to seek a true tax professional if you have a higher debt with IRS because they’re going to give your case to a very seasoned agent who will go ahead and unpack your offer and your documentation.
FACT: The agent usually would rather reject the offers than accept the offer because of all the work that is done to get the offer approved.
If there is a reason they can reject the offer they will reject the offer. You need to put a nice tight package together with all documents and explanations. If you don’t you really have a little choice and to get it through.
Offer in Compromise Facts
Last year about 78,000 offers in compromise were filed and approximately 35,000 of those were accepted for national average of about $9500.Remember, this just an average.
Why use us, WE KNOW THE SYSTEM, We formerly accepted Offer in Compromise.
If you received a letter notifying you that the IRS rejected your offer, you have 30 days from the date of the OIC rejection letter to request an appeal of the decision.
If it’s been more than 30 days from the date of the rejection letter, your appeal won’t be accepted.
Appeals Process : Directions for appeals for rejected Offers in Compromise
Remember to mail your appeal to the office that sent you the rejection letter.
You can request an Appeals conference by preparing either a Form 13711, Request for Appeal of Offer in Compromise (PDF), or a separate letter with the following information:
1. Name, address, Tax Identification Number and daytime telephone number
2. A statement that you want to appeal the IRS rejection to the IRS Independent Office of Appeals
3. A copy of your rejected offer letter
4. Tax period(s) or year(s) involved
5. A list of the specific items you don’t agree with and a statement of why you don’t agree with each item
6. Any additional information you want Appeals to consider
7. The facts supporting your position on any issue that you do not agree with
8. The law or authority, if any, on which you are relying and
9. Your signature on the written protest, stating that under penalties of perjury, it is true, correct and complete.
For Businesses Taxpayers who owe back taxes
To determine whether you wish to request an appeal, if you are a corporation, S corporation, partnership, exempt organization, limited liability company (LLC) defined as a corporation or other LLC you should gather and review the following:
• Your Form 433-B, Collection Information Statement for Business (PDF) that came with the OIC rejection letter
• The supporting documentation submitted with the Form 433-B
• The Income/Expense Table (IET) and Asset/Equity Table (AET) that came with the OIC rejection letter
• Publication 5059, How to Prepare a Collection Information Statement (Form 433-B) (PDF)
• Form 656-B, Offer in Compromise (PDF)
For information on what to include in your appeal request, refer to Publication 5, Your Appeal Rights and How to Prepare a Protest if you Don’t Agree (PDF) and Publication 4227, Overview of the Appeals Process Brochure (PDF).
Individuals – Wage Earners and Self-Employed
To determine whether you wish to request an appeal, you should gather and review the following:
• Your Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals (PDF) that came with the OIC rejection letter
• The supporting documentation submitted with the Form 433-A
• The Income/Expense Table (IET) and Asset/Equity Table (AET) that came with the OIC rejection letter
• Publication 1854, How to Prepare a Collection Information Statement (Form 433-A) (PDF)
• Form 656-B, Offer in Compromise (PDF)
Your reasons for disagreement
In deciding whether to request an appeal, identify your specific items of disagreement by comparing the figures on your Form 433-A to the figures on your:
• Income/Expense Table (IET) Worksheet and/or
• Asset/Equity Table (AET) Worksheet
If you don’t have your Form 433-A, IET Worksheet or AET Worksheet, contact the person identified on the rejection letter for these documents.
In considering your reasons for disagreement, make sure you address each of the reasons that apply.
For each area where you have a disagreement, you’ll need to provide documents to support the income item, expense item and/or asset value you dispute.
Refer to Section 10, Form 656-B, Offer in Compromise (PDF) for a list of supporting documents and to “Kinds of Records to Keep” in Publication 17, Your Federal Income Tax (PDF) for further information.
Use tab to go to the next focusable element
1.I just can’t pay
2.I don’t agree with the amount determined as income for wages, pensions, Social Security income, alimony, child support, interest, dividends or other income (not from self-employment or rental property)
3.I don’t agree with the amount determined as the allowance for food, clothing and miscellaneous expenses
4.I don’t agree with the amount determined as the allowance for out-of-pocket health care expenses
5.I don’t agree with the amount determined as housing and utilities expenses
6.I don’t agree with the amount determined as transportation expenses
7.I don’t agree with the amount determined as expenses for taxes, child/dependent care, life insurance or other expenses
8.I don’t agree with the amount determined as the value of my vehicle(s)
9.I don’t agree with the amount determined as the value of my real estate
10.I don’t agree with the amount determined as the value of my cash, back accounts, investments and life insurance
11.I don’t agree that my special circumstances don’t warrant acceptance of my offer.
Call us for free tax consults for rejected OIC’s.
For those of you who have simple cases there’s nothing wrong with you attempting the offer in compromise however the taxpayer who owes more than $50,000 is caution.
You’re better off paying someone to get the offer accepted and to try this on your own and exposing your financial life to the IRS.
Offer In Compromise Rejected, APPEAL NOW + Christian Tax Help, Former IRS Agents
by Fresh Start Tax | Apr 8, 2020 | Tax Help
I am a former IRS agent and teaching instructor with the Internal Revenue Service. I’ve been in practice since 1982 and I like to explore some of the ways you can reduce your IRS tax debt through various programs with Internal Revenue Service.
We are a local South Florida tax firm that’s been practicing since 1982. We are an A+ rating by the Better Business Bureau in a work hundreds upon hundreds of cases right here in our home town South Florida.
I hope to provide a solid list for you of the different ways to reduce your IRS tax debt without going into laborious details that the average taxpayer could care less about so with that said, let’s rock ‘n’ roll.
Options to Settle Tax Debt From A Former IRS Agent
1. The first way to reduce your tax debt is to look at the actual tax return and find out if there was an error made on the return from the practitioner who prepared your return.
Most people assume their tax return is correct and that God dropped there tax practitioner down from heaven. While that person may be the most trusted and honest person in the world, there’s always somebody a little better.It never hurts to anybody to take a second look at your tax return. Its your money and you owe it to yourself.
My recommendation is to have another tax professional look at the last three years individual returns and business returns if necessary you can amend those back tax returns.
2. If you will owe some back taxes, you can always challenge some of the penalties that IRS applied on the debt.
I should say from the onset many of the penalties and interest are correct.
As a general rule, you can focus your attention on failure to file and failure to pay penalties. Those have the most success finding ways to reduce your tax bill. You can order an IRS tax transcript to find out what the penalties and interest are on your tax liability.
If you go to fresh start tax homepage, scroll down on the left side you will find one of the most extensive sections on the Internet of abatement of penalties and interest.
Don’t assume your tax bill is correct, have an experienced practitioner review it to make sure the tax liability IRS is placing in front of you is true and correct.
3. Check out the statute of limitations.
Before you get too excited about the statute of limitations, understand that IRS has 10 years to collect the tax debt from the original tax assessment. The tax assessment starts when IRS has processed your tax return and placed it on their CADE2 computer system.
Keep in mind is not when the tax return was filed or when received a return BUT, put it onto their computer system.
As a general rule, the statute of limitations is 10 years.
Also be apprised that certain events extend the statute of limitations such as the filing of the offer in compromise, litigation, bankruptcy, filing a collection due process.
You can pull up an IRS transcript to find out when your statute is gonna run out.
IRS also has the option of extending your statute of limitations for various reasons. If the IRS is audited your tax return and create a secondary tax assessment, the 10 years from the new tax audit bill is created at that time.
4. The filing of a bankruptcy, generally a chapter 7.
Most taxpayers are not aware that a Chapter 7 bankruptcy can take away the tax debt completely when the rules are met.
The general rules are, the taxes must be three years or older, assessed for 240 days and filed for two years. You can contact an experienced bankruptcy attorney to see if chapter 7 works for you. keep in mind the chapter 7 does not discharge the lien but the tax debt.
5. The filing of an offer in compromise.
As a former IRS agent I work the offer in compromise program.
I accepted offers and I rejected offers. I am a national expert in the offer in compromise program.
There is a pre-qualifier tool to settle your debt through the offer in compromise. Rather than go through a laborious explanation of the offer in compromise program it’s best just to call us for an initial tax consultation to find out if you are a taxpayer who qualifies for this program.
Keep in mind the offer in compromise program is not for everybody.
IRS expects you to give them your complete liquidity and all your assets and live within normal means given your income and the living expense tests that IRS will give you.
The facts of the offer in compromise.
Last year 78,000 offers in compromise were filed and 38% of those got accepted for an average settlement of $9500.
Please keep in mind this is a national average and may have nothing to do with your settlement at all.
6. Putting your case put into currently not collectible or hardship.
Even though this is not a way to completely reduce your tax liability it can lead to a complete reduction in your tax bill if not reduce it forever.
The Internal Revenue Service places about 40% of their active collection cases and to what’s called a temporary hardship. Another name for this is currently not collectible.
Many of these cases that are placed in hardship eventually go away by statute.
The Internal Revenue Service will take a current financial statement with all associated documentation and make a determination whether to place your case and a payment agreement or currently not collectible. Basically IRS put your case on hold until it decides to review the case and bring it back to the field for another review.
For more details on currently not collectible cases call us today as the chances are high that eventually your case will go away by the tenure statute rule.
Once again I am a national expert in IRS collection matters.
If you have any questions call me today for free original tax consultation.
Reduce IRS Tax Debt + Weston, Plantation, Parkland = Former IRS Agent
by Fresh Start Tax | Apr 7, 2020 | Tax Help
I am a former IRS agent and teaching instructor with the Internal Revenue Service. I’ve been in practice since 1982 and I like to explore some of the ways you can reduce your IRS tax debt through various programs with Internal Revenue Service.
We are a local South Florida tax firm that’s been practicing since 1982.
Call us to hear other options to resolve your tax debt. Free consults to hear the truth.
We are an A+ rating by the Better Business Bureau in a work hundreds upon hundreds of cases right here in our home town South Florida.
I hope to provide a solid list for you of the different ways to reduce your IRS tax debt without going into laborious details that the average taxpayer could care less about so with that said, let’s rock ‘n’ roll.
Options to Settle/Reduce Tax Debt
1. The first way to reduce your tax debt is to look at the actual tax return and find out if there was an error made on the return from the practitioner who prepared your return.
Most people assume their tax return is correct and that God dropped there tax practitioner down from heaven. While that person may be the most trusted and honest person in the world, there’s always somebody a little better.It never hurts to anybody to take a second look at your tax return. Its your money and you owe it to yourself.
My recommendation is to have another tax professional look at the last three years individual returns and business returns if necessary you can amend those back tax returns.
2. If you will owe some back taxes, you can always challenge some of the penalties that IRS applied on the debt.
I should say from the onset many of the penalties and interest are correct.
As a general rule, you can focus your attention on failure to file and failure to pay penalties. Those have the most success finding ways to reduce your tax bill. You can order an IRS tax transcript to find out what the penalties and interest are on your tax liability.
If you go to fresh start tax homepage, scroll down on the left side you will find one of the most extensive sections on the Internet of abatement of penalties and interest.
Don’t assume your tax bill is correct, have an experienced practitioner review it to make sure the tax liability IRS is placing in front of you is true and correct.
3. Check out the statute of limitations.
Before you get too excited about the statute of limitations, understand that IRS has 10 years to collect the tax debt from the original tax assessment. The tax assessment starts when IRS has processed your tax return and placed it on their CADE2 computer system.
Keep in mind is not when the tax return was filed or when received a return BUT, put it onto their computer system.
As a general rule, the statute of limitations is 10 years.
Also be apprised that certain events extend the statute of limitations such as the filing of the offer in compromise, litigation, bankruptcy, filing a collection due process.
You can pull up an IRS transcript to find out when your statute is gonna run out.
IRS also has the option of extending your statute of limitations for various reasons. If the IRS is audited your tax return and create a secondary tax assessment, the 10 years from the new tax audit bill is created at that time.
4. The filing of a bankruptcy, generally a chapter 7.
Most taxpayers are not aware that a Chapter 7 bankruptcy can take away the tax debt completely when the rules are met.
The general rules are, the taxes must be three years or older, assessed for 240 days and filed for two years. You can contact an experienced bankruptcy attorney to see if chapter 7 works for you. keep in mind the chapter 7 does not discharge the lien but the tax debt.
5. The filing of an offer in compromise.
As a former IRS agent I work the offer in compromise program.
I accepted offers and I rejected offers. I am a national expert in the offer in compromise program.
There is a pre-qualifier tool to settle your debt through the offer in compromise. Rather than go through a laborious explanation of the offer in compromise program it’s best just to call us for an initial tax consultation to find out if you are a taxpayer who qualifies for this program.
Keep in mind the offer in compromise program is not for everybody.
IRS expects you to give them your complete liquidity and all your assets and live within normal means given your income and the living expense tests that IRS will give you.
The facts of the offer in compromise.
Last year 78,000 offers in compromise were filed and 38% of those got accepted for an average settlement of $9500.
Please keep in mind this is a national average and may have nothing to do with your settlement at all.
Even though this is not a way to completely reduce your tax liability it can lead to a complete reduction in your tax bill if not reduce it forever.
The Internal Revenue Service places about 40% of their active collection cases and to what’s called a temporary hardship. Another name for this is currently not collectible.
Many of these cases that are placed in hardship eventually go away by statute.
The Internal Revenue Service will take a current financial statement with all associated documentation and make a determination whether to place your case and a payment agreement or currently not collectible. Basically IRS put your case on hold until it decides to review the case and bring it back to the field for another review.
For more details on currently not collectible cases call us today as the chances are high that eventually your case will go away by the tenure statute rule.
Once again I am a national expert in IRS collection matters.
If you have any questions call me today for free original tax consultation.
Hollywood, Hallandale, Dania + Ways to Settle & Reduce IRS Tax Debt NOW + Local Former IRS Agents
by Fresh Start Tax | Apr 2, 2020 | Tax Help
I am a former IRS agent and teaching instructor with the Internal Revenue Service. I’ve been in practice since 1982 and I like to explore some of the ways you can reduce your IRS tax debt through various programs with Internal Revenue Service. <><
We are a local Christian South Florida tax firm that’s been practicing since 1982.We are a referring partner of Crown Financial <><
Call us to hear other options to resolve your tax debt. Free consults to hear the truth.
We are an A+ rating by the Better Business Bureau in a work hundreds upon hundreds of cases right here in our home town South Florida.
I hope to provide a solid list for you of the different ways to reduce your IRS tax debt without going into laborious details that the average taxpayer could care less about so with that said, let’s rock ‘n’ roll.
Options to Settle/Reduce Tax Debt
1. The first way to reduce your tax debt is to look at the actual tax return and find out if there was an error made on the return from the practitioner who prepared your return.
Most people assume their tax return is correct and that God dropped there tax practitioner down from heaven. While that person may be the most trusted and honest person in the world, there’s always somebody a little better.It never hurts to anybody to take a second look at your tax return. Its your money and you owe it to yourself.
My recommendation is to have another tax professional look at the last three years individual returns and business returns if necessary you can amend those back tax returns.
2. If you will owe some back taxes, you can always challenge some of the penalties that IRS applied on the debt.
I should say from the onset many of the penalties and interest are correct.
As a general rule, you can focus your attention on failure to file and failure to pay penalties. Those have the most success finding ways to reduce your tax bill. You can order an IRS tax transcript to find out what the penalties and interest are on your tax liability.
If you go to fresh start tax homepage, scroll down on the left side you will find one of the most extensive sections on the Internet of abatement of penalties and interest.
Don’t assume your tax bill is correct, have an experienced practitioner review it to make sure the tax liability IRS is placing in front of you is true and correct.
3. Check out the statute of limitations.
Before you get too excited about the statute of limitations, understand that IRS has 10 years to collect the tax debt from the original tax assessment. The tax assessment starts when IRS has processed your tax return and placed it on their CADE2 computer system.
Keep in mind is not when the tax return was filed or when received a return BUT, put it onto their computer system.
As a general rule, the statute of limitations is 10 years.
Also be apprised that certain events extend the statute of limitations such as the filing of the offer in compromise, litigation, bankruptcy, filing a collection due process.
You can pull up an IRS transcript to find out when your statute is gonna run out.
IRS also has the option of extending your statute of limitations for various reasons. If the IRS is audited your tax return and create a secondary tax assessment, the 10 years from the new tax audit bill is created at that time.
4. The filing of a bankruptcy, generally a chapter 7.
Most taxpayers are not aware that a Chapter 7 bankruptcy can take away the tax debt completely when the rules are met.
The general rules are, the taxes must be three years or older, assessed for 240 days and filed for two years. You can contact an experienced bankruptcy attorney to see if chapter 7 works for you. keep in mind the chapter 7 does not discharge the lien but the tax debt.
5. The filing of an offer in compromise.
As a former IRS agent I work the offer in compromise program.
I accepted offers and I rejected offers. I am a national expert in the offer in compromise program.
There is a pre-qualifier tool to settle your debt through the offer in compromise. Rather than go through a laborious explanation of the offer in compromise program it’s best just to call us for an initial tax consultation to find out if you are a taxpayer who qualifies for this program.
Keep in mind the offer in compromise program is not for everybody.
IRS expects you to give them your complete liquidity and all your assets and live within normal means given your income and the living expense tests that IRS will give you.
The facts of the offer in compromise.
Last year 78,000 offers in compromise were filed and 38% of those got accepted for an average settlement of $9500.
Please keep in mind this is a national average and may have nothing to do with your settlement at all.
Even though this is not a way to completely reduce your tax liability it can lead to a complete reduction in your tax bill if not reduce it forever.
The Internal Revenue Service places about 40% of their active collection cases and to what’s called a temporary hardship. Another name for this is currently not collectible.
Many of these cases that are placed in hardship eventually go away by statute.
The Internal Revenue Service will take a current financial statement with all associated documentation and make a determination whether to place your case and a payment agreement or currently not collectible. Basically IRS put your case on hold until it decides to review the case and bring it back to the field for another review.
For more details on currently not collectible cases call us today as the chances are high that eventually your case will go away by the tenure statute rule.
Once again I am a national expert in IRS collection matters.
If you have any questions call me today for free original tax consultation.
Christian Taxes Help + Deerfield, Delray Beach, Boca Raton, Palm Beaches + Ways to Settle & Reduce IRS Tax Debt NOW
by Fresh Start Tax | Mar 31, 2020 | Tax Help
I am a former IRS agent and teaching instructor with the Internal Revenue Service. I’ve been in practice since 1982 and I like to explore some of the ways you can reduce your IRS tax debt through various programs with Internal Revenue Service.
We are a local South Florida tax firm that’s been practicing since 1982.
Call us to hear other options to resolve your tax debt. Free consults to hear the truth.
We are an A+ rating by the Better Business Bureau in a work hundreds upon hundreds of cases right here in our home town South Florida.
I hope to provide a solid list for you of the different ways to reduce your IRS tax debt without going into laborious details that the average taxpayer could care less about so with that said, let’s rock ‘n’ roll.
Options to Settle/Reduce Tax Debt
1. The first way to reduce your tax debt is to look at the actual tax return and find out if there was an error made on the return from the practitioner who prepared your return.
Most people assume their tax return is correct and that God dropped there tax practitioner down from heaven. While that person may be the most trusted and honest person in the world, there’s always somebody a little better.It never hurts to anybody to take a second look at your tax return. Its your money and you owe it to yourself.
My recommendation is to have another tax professional look at the last three years individual returns and business returns if necessary you can amend those back tax returns.
2. If you will owe some back taxes, you can always challenge some of the penalties that IRS applied on the debt.
I should say from the onset many of the penalties and interest are correct.
As a general rule, you can focus your attention on failure to file and failure to pay penalties. Those have the most success finding ways to reduce your tax bill. You can order an IRS tax transcript to find out what the penalties and interest are on your tax liability.
If you go to fresh start tax homepage, scroll down on the left side you will find one of the most extensive sections on the Internet of abatement of penalties and interest.
Don’t assume your tax bill is correct, have an experienced practitioner review it to make sure the tax liability IRS is placing in front of you is true and correct.
3. Check out the statute of limitations.
Before you get too excited about the statute of limitations, understand that IRS has 10 years to collect the tax debt from the original tax assessment. The tax assessment starts when IRS has processed your tax return and placed it on their CADE2 computer system.
Keep in mind is not when the tax return was filed or when received a return BUT, put it onto their computer system.
As a general rule, the statute of limitations is 10 years.
Also be apprised that certain events extend the statute of limitations such as the filing of the offer in compromise, litigation, bankruptcy, filing a collection due process.
You can pull up an IRS transcript to find out when your statute is gonna run out.
IRS also has the option of extending your statute of limitations for various reasons. If the IRS is audited your tax return and create a secondary tax assessment, the 10 years from the new tax audit bill is created at that time.
4. The filing of a bankruptcy, generally a chapter 7.
Most taxpayers are not aware that a Chapter 7 bankruptcy can take away the tax debt completely when the rules are met.
The general rules are, the taxes must be three years or older, assessed for 240 days and filed for two years. You can contact an experienced bankruptcy attorney to see if chapter 7 works for you. keep in mind the chapter 7 does not discharge the lien but the tax debt.
5. The filing of an offer in compromise.
As a former IRS agent I work the offer in compromise program.
I accepted offers and I rejected offers. I am a national expert in the offer in compromise program.
There is a pre-qualifier tool to settle your debt through the offer in compromise. Rather than go through a laborious explanation of the offer in compromise program it’s best just to call us for an initial tax consultation to find out if you are a taxpayer who qualifies for this program.
Keep in mind the offer in compromise program is not for everybody.
IRS expects you to give them your complete liquidity and all your assets and live within normal means given your income and the living expense tests that IRS will give you.
The facts of the offer in compromise.
Last year 78,000 offers in compromise were filed and 38% of those got accepted for an average settlement of $9500.
Please keep in mind this is a national average and may have nothing to do with your settlement at all.
Even though this is not a way to completely reduce your tax liability it can lead to a complete reduction in your tax bill if not reduce it forever.
The Internal Revenue Service places about 40% of their active collection cases and to what’s called a temporary hardship. Another name for this is currently not collectible.
Many of these cases that are placed in hardship eventually go away by statute.
The Internal Revenue Service will take a current financial statement with all associated documentation and make a determination whether to place your case and a payment agreement or currently not collectible. Basically IRS put your case on hold until it decides to review the case and bring it back to the field for another review.
For more details on currently not collectible cases call us today as the chances are high that eventually your case will go away by the tenure statute rule.
Once again I am a national expert in IRS collection matters.
If you have any questions call me today for free original tax consultation.
Boca Raton, Palm Beaches + Ways to Settle & Reduce IRS Tax Debt NOW + Local Former IRS Agents
