by Fresh Start Tax | May 23, 2016 | Tax Help
Do You have underreported tax income, call us for a free initial tax consultation.
Notice of Underreported Income – CP-2000
The IRS compares the information reported by employers, banks, businesses, and other payers on income documents like the Forms W-2, 1098, 1099, etc., with the income, credits, and deductions you report on your income tax return.
The Automated Underreporter (AUR) function sends out a Notice CP-2000 if you did not report income reported to the IRS by a payer or if it appears that payments, credits and/or deductions are overstated.
The CP-2000 is not a bill.
It is a proposal to adjust your income, payments, credits, and/or deductions. This may result in additional tax owed or a refund of taxes paid.
The first page of the notice provides a summary of proposed changes to your tax, the steps you should take to respond, and a phone number to call for assistance.
In addition, the notice:
• Shows the amounts you reported on your original or amended return
• Shows the amounts reported to the IRS by the payer
• Shows the IRS proposed changes to the tax, credits, and/or payments
• Shows the payer’s name, ID number, the type of document issued (W-2, 1098, 1099), and the tax identification number of the person to whom the document was issued
• Based on payer documentation, proposes either an increase or decrease to your tax liability, and
• Includes a response form, payment voucher, and an envelope.
Review this information carefully to verify its accuracy and so you know exactly how you should respond.
On the response form, you should indicate whether you agree with all the changes, agree with some of the changes, or do not agree with any of the changes the IRS is proposing.
The response form also allows you to authorize someone other than yourself to contact the IRS concerning the notice, and the notice provides payment options.
Responding to the notice:
• If you agree with the proposed adjustments, complete and sign the response form, and return it in the enclosed envelope.
The proposed adjustments will generally show interest calculated 30 days from the date on the notice; certain penalties may also apply but may not be shown. You may pay the amount you owe within 30 days from the date of notice, and making that payment will stop additional interest from accruing. If you make a partial payment, or you send the signed consent without payment, the IRS will bill you for the amount due plus additional penalties and/or interest charges.
• If you do not agree with any changes or with some of the changes, do not sign the notice. Instead, explain in a separate signed statement why you do not agree, attach the statement and supporting documentation for consideration to the response form, and submit the response form and attachment to the IRS. Include your phone number with area code and the best time of day to call.
Do not file an amended return ( Form 1040X (PDF)) for the tax year shown in the upper right hand corner of page 1. The IRS will make corrections for you after we receive your response.
If the same or other errors occurred in any other tax years, you may wish to file an amended return for those years in order to prevent or reduce the accrual of penalties.
You must respond within 30 days of the date of the notice or 60 days if you live outside the United States.
Send your response, a copy of the notice you received, and any other necessary documents with the enclosed envelope.
If you have lost the envelope or it was not enclosed, please send your response to the address listed on the first page of the response form.
If you are making a payment, use the provided payment voucher to ensure correct application to your account.
If there is a proposed balance due and we do not hear from you within the 30 or 60-day period, AUR will issue a statutory notice of deficiency and additional interest and penalties will be charged as appropriate.
by Fresh Start Tax | May 23, 2016 | Tax Help
We are an AFFORDABLE local South Florida tax firm that specializes in all IRS & State tax problems, Since 1982. Servicing The Florida Palm Beaches.
As former IRS agents and managers we worked out of the local South Florida offices specifically, we worked out of the Miami, North Miami and Fort Lauderdale office.
Over 65 years of direct experience in the local IRS offices in South Florida.
We also worked as managers, supervisors and teaching instructors. Not only did we work in the above aforementioned positions, we are also on-the-job trainers for new IRS employees.
We know all the IRS systems inside and out we have worked both sides of any IRS problem and know the protocols and methodologies to resolve any IRS matter.
If you Haven’t Filed Back Tax Returns, you are not alone the tax gap is $450 billion.
Over 16 million tax returns were not filed timely to the Internal Revenue Service last year.
The tax gap is a figure placed on taxes that should-be been collected if all tax returns were filed.
IRS is working hard to make sure all those with unfiled tax returns are back in the system.
The IRS Cade 2 computer us working hard to close the tax gap which is currently $500 billion.
Also, please keep in mind if you don’t file your back tax returns IRS has the option of filing your tax return under 6020 B of the IRC. IRS will do you no favors in filing, you will pay the highest amount allowed by law.
Haven’t Filed Back Taxes
Filing back tax returns is not an issue for our firm. We have prepared thousands of back tax returns with or without tax records.
There is a very systematic way to do this and it is called income tax reconstruction.
We take the methodologies learned at Internal Revenue Service and apply the best practice standards to go ahead and prepare your back tax return and make sure you pay the lowest amount allowed by law.
If you are going to owe money as result of your tax filing we can settle your tax debt as well.
On cases where taxpayers have received notices, we send IRS a power of attorney so you will never have to speak to IRS and we handle all the correspondence.
From there we go ahead and start the preparation of our tax return process by pulling IRS transcripts and any available records. From there, we submit the tax returns to IRS at the same time work out a remedy or solution if you’re go to owe back tax debt.
It is important for every taxpayer to know that if they are in a position where they haven’t filed back taxes that they start making estimate tax payments or creased or withholding to cover their new IRS tax debt. Internal Revenue Service wants to make sure future compliance is not an issue.
IRS Tax Debt Settlements, I am a former IRS agent and teaching instructor of the offer in compromise.
If you need to settle your tax debt with Internal Revenue Service, as a general IRS will want to current financial statement to make a determination.
You will need to do that on the IRS form 433A or 433F.
As a general rule upon your submission of your current documented financial statement,
IRS will either place you went into:
1.currently not collectible file (hardship) or , CNC,
2. ask you for a monthly payment or installment agreement,
Many taxpayers are eligible for the offer in compromise program to settle their debt for pennies on the dollar.
Last year over 38,000 taxpayers settle their tax debt for an average of $6500 per case. Keep in mind that is just an average national average in your case is completely dependent on your current financial statement.
Before you file for offer in compromise it is wise to fill out the IRS pre-qualifier tool to make sure you were a viable candidate and don’t waste any money.
When you call our office we will be review with you the various options you have to completely and permanently remedy all your IRS tax problems once and for all.
If the IRS has filed a federal tax lien against you, when you call our office we will go over the different ways you may be able to release your federal tax lien.
The lien will stay on your record for 10 years from the date of assessment unless an offer in compromise was accepted or you got into an IRS payment agreement that met the qualifications.
We are a full-service firm that specializes in IRS tax relief. With over 206 years of professional tax experience and over 65 years of combined work experience.
We are one of the most affordable, experience, and trustworthy firms in the South Florida area. Since 1982 we have been helping South Floridians.
If you need to file tax returns, need an IRS tax settlement, need to work a payment plan, or if your experience a IRS tax hardship or need to get IRS levies and tax liens released call us today.
Call us today for a free initial tax consultation. You will speak to a true IRS tax expert, since 1982.
We are fast, friendly, and affordable professional tax firm.
Unfiled Back Tax Returns + Settle IRS Tax Debt + Payment Plans + IRS Levy + IRS Tax Liens + Owe Back Taxes + Local Experts + Palm Beach, Florida + 33478, 33430
by Fresh Start Tax | May 23, 2016 | Tax Help
We are former AFFORDABLE IRS agents and managers who know the system. Since 1982, Local Tax Firm in South Florida, A plus Rated BBB.
We can resolve ANY IRS PROBLEM! When you call our office will speak to a true Iris tax professional.
We are AFFORDABLE IRS tax experts and specialists.
We are an IRS services business that can help you in any facet of an IRS or state tax problem.
We have over 65 years of working directly for the local for IRS offices. We have worked to supervisors, managers and teaching instructors.
We know the system inside and out. After your first initial tax consultation we can provide an exit strategy for all cases. Let our years of experience be your best ally.
Call us today and find out all your options on how to get immediate and permanent IRS tax relief.
You can speak to a former IRS agent or manager who has worked this system for years. You will not find more experience IRS tax experience for IRS tax problems.
If the IRS has found you a responsible person for the trust fund penalty, call us today for free initial tax consultation and we will walk you through the process of resolving this tax at once and for all.
As former IRS agents we set up trust fund penalties against responsible persons for corporations or businesses that owed back payroll taxes.
If a company can no longer pay their back payroll taxes, the Internal Revenue Service has the right under 6672 to set up the trust fund debt against those who are held responsible. This is called the trust fund penalty.
You’ll know if you are one of these persons because you will receive IRS form 2751 & 1153 indicating a proposed notice of assessment against you.
There are various options available. As soon as we review your case we can instantly tell you ways to help resolve your problem.
Being former IRS agents and managers we know every possible solution to remedy this tax debt. We can resolve and possibly reduce your tax obligation.
There are various options you have for IRS tax debt relief:
The basic options include:
1. trust fund appeals, the possibility of an offer in compromise, doubt to liability,
2.hardships, or currently not collectible,
3. payments plan, and
4. the offer in compromise, if you are a qualified and suitable candidate.
5. bankruptcy is another option.
How the Internal Revenue Service will work your case if you owe the IRS tax debt.
IRS will require a 433A or 433F, an individual financial statement.
You can find that form directly on our website.
Many times the IRS uses 433F, depending were the cases in the system. Cases worked in the ACS system uses shorter version of the financial statement.
If the case is worked in the local office the revenue officer will use form 433.A
That financial statement will need to be fully documented along with bank statements, copies of checks and monthly expenses.
We will walk you through the process of how the IRS will work your case in the collection action that can possibly taken.
Will also review with you the IRS national standards program on all cases for those who owe back taxes.
Once IRS reviews your current financial statement they will make a determination and generally put you in one of two categories with the option of filing an offer in compromise.IRS has the option to:
1.IRS determines on 40% of the cases that taxpayers are put into hardship which means they can’t pay the tax at this time. Sometimes it is called currently not collectible. Cases that are placed at currently not collectible or hardship stay in there for a period of 2 to 3 years and come back out to the field at a later time.
2. 6.5 million people enter monthly payment plans and pay a certain amount based on their current documented financial statement.
Other taxpayers file an offer in compromise to settle their case for pennies on the dollar. The offer in compromise requires a lot of skill and expertise to have accepted by the Internal Revenue Service.What is an offer in compromise?
It is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
Taxpayers who can fully pay the liabilities through an installment agreement or other means, will not be eligible for a OIC in most cases.
In order to be eligible for a OIC, the taxpayer must have filed all tax returns, made all required estimated tax payments for the current year and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS will not accept a OIC unless the amount offered by a 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 a OIC based on three grounds:
• First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this only when there is a genuine dispute as to the existence or amount of the correct tax debt under the law.
• Second, the IRS can accept a compromise if there is doubt that the amount owed is fully collectible. Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
• Third, the IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and 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.
When submitting a OIC based on doubt as to collectibility or based on effective tax administration, taxpayers must use the most current version of:
1. Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or,
2. Form 433-B (OIC), Collection Information Statement for Businesses. A taxpayer submitting a OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
Form 656 and referenced collection information statements are available in the Offer in Compromise Booklet, Form 656-B (PDF).
In general, a taxpayer must submit a $186 application fee with the Form 656. Do not combine this fee with any other tax payments.
However, there are two exceptions to this requirement:
• First, no application fee is required if the OIC is based on doubt as to liability.
• Second, the fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656 and check the certification box.
Options: Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A “lump sum cash offer” is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum cash offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $186 application fee.
The 20 percent payment is “nonrefundable” meaning it will not be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.
Instead, the 20 percent payment will be applied to the taxpayer’s tax liability. The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent payment.
An offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted.
When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $186 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum cash offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer.
These amounts are also nonrefundable.
These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Upon acceptance of a OIC, the taxpayer may no longer designate offer payments to any specific tax liability covered in the offer agreement.
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration, and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
The offer in compromise requires a lot of skill because reviewed by several layers of Internal Revenue Service. I should know, I am former IRS agent and teaching instructor of the offer in compromise.
When IRS works an offer in compromise the agent working the case as a general rule will spend at least 20 to 30 hours of working time from start to finish on a completed offer.
Call us today for a free initial tax consultation. We are a full service tax firm.
When you call our office you will speak to a true tax professional.
IRS Tax Help Problem Services + IRS Garnishment Levies + Tax Liens + IRS Audits, Payments Plan + Settle Tax Debt
by Fresh Start Tax | May 23, 2016 | Tax Help
We are an AFFORDABLE local South Florida tax firm that specializes in all IRS & State tax problems, Since 1982.
As former IRS agents and managers we worked out of the local South Florida offices specifically, we worked out of the Miami, North Miami and Fort Lauderdale office. Over 65 years of direct experience in the local IRS offices in South Florida.
We also worked as managers, supervisors and teaching instructors. Not only did we work in the above aforementioned positions, we are also on-the-job trainers for new IRS employees.
We know all the IRS systems inside and out we have worked both sides of any IRS problem and know the protocols and methodologies to resolve any IRS matter.
If you Haven’t Filed Back Tax Returns, you are not alone the tax gap is $450 billion.
Over 16 million tax returns were not filed timely to the Internal Revenue Service last year.
The tax gap is a figure placed on taxes that should-be been collected if all tax returns were filed.
IRS is working hard to make sure all those with unfiled tax returns are back in the system. The IRS Cade 2 computer us working hard to close the tax gap which is currently $500 billion.
Also, please keep in mind if you don’t file your back tax returns IRS has the option of filing your tax return under 6020 B of the IRC. IRS will do you no favors in filing, you will pay the highest amount allowed by law.
Filing back tax returns is not an issue for our firm. We have prepared thousands of back tax returns with or without tax records.
There is a very systematic way to do this and it is called income tax reconstruction.
We take the methodologies learned at Internal Revenue Service and apply the best practice standards to go ahead and prepare your back tax return and make sure you pay the lowest amount allowed by law.
If you are going to owe money as result of your tax filing we can settle your tax debt as well.
On cases where taxpayers have received notices, we send IRS a power of attorney so you will never have to speak to IRS and we handle all the correspondence.
From there we go ahead and start the preparation of our tax return process by pulling IRS transcripts and any available records. From there, we submit the tax returns to IRS at the same time work out a remedy or solution if you’re go to owe back tax debt.
It is important for every taxpayer to know that if they are in a position where they haven’t filed back taxes that they start making estimate tax payments or creased or withholding to cover their new IRS tax debt. Internal Revenue Service wants to make sure future compliance is not an issue.
IRS Tax Debt Settlements, I am a former IRS agent and teaching instructor of the offer in compromise.
If you need to settle your tax debt with Internal Revenue Service, as a general IRS will want to current financial statement to make a determination.
You will need to do that on the IRS form 433A or 433F.
As a general rule upon your submission of your current documented financial statement,
IRS will either place you went into:
1.currently not collectible file (hardship) or , CNC,
2. ask you for a monthly payment or installment agreement,
Many taxpayers are eligible for the offer in compromise program to settle their debt for pennies on the dollar.
Last year over 38,000 taxpayers settle their tax debt for an average of $6500 per case. Keep in mind that is just an average national average in your case is completely dependent on your current financial statement.
Before you file for offer in compromise it is wise to fill out the IRS pre-qualifier tool to make sure you were a viable candidate and don’t waste any money.
When you call our office we will be review with you the various options you have to completely and permanently remedy all your IRS tax problems once and for all.
If the IRS has filed a federal tax lien against you, when you call our office we will go over the different ways you may be able to release your federal tax lien.
The lien will stay on your record for 10 years from the date of assessment unless an offer in compromise was accepted or you got into an IRS payment agreement that met the qualifications.
We are a full-service firm that specializes in IRS tax relief. With over 206 years of professional tax experience and over 65 years of combined work experience.
We are one of the most affordable, experience, and trustworthy firms in the South Florida area. Since 1982 we have been helping South Floridians.
If you need to file tax returns, need an IRS tax settlement, need to work a payment plan, or if your experience a IRS tax hardship or need to get IRS levies and tax liens released call us today.
Call us today for a free initial tax consultation. You will speak to a true IRS tax expert, since 1982.
We are fast, friendly, and affordable professional tax firm.
Unfiled Back Tax Returns + Settle IRS Tax Debt + Payment Plans + IRS Levy + IRS Tax Liens + Owe Back Taxes + 33040, 33042, 33043, 33050, 33001 + Key West + Covering, Florida Keys
by Fresh Start Tax | May 23, 2016 | Tax Help
We are former AFFORDABLE IRS agents and managers who know the system. Since 1982, Local Tax Firm in South Florida
We can resolve ANY IRS PROBLEM!
Have IRS filed a levy? A Tax Lien? Got an Audit Letter ?
We are AFFORDABLE IRS tax experts and specialists.
We are an IRS services business that can help you in any facet of an IRS or state tax problem.
We have over 65 years of working directly for the local for IRS offices.
We have worked to supervisors, managers and teaching instructors.
We know the system inside and out. After your first initial tax consultation we can provide an exit strategy for all cases. Let our years of experience be your best ally.
Call us today and find out all your options on how to get immediate and permanent IRS tax relief.
You can speak to a former IRS agent or manager who has worked this system for years. You will not find more experience IRS tax experience for IRS tax problems.
If the IRS has found you a responsible person for the trust fund penalty, call us today for free initial tax consultation and we will walk you through the process of resolving this tax at once and for all.
As former IRS agents we set up trust fund penalties against responsible persons for corporations or businesses that owed back payroll taxes.
If a company can no longer pay their back payroll taxes, the Internal Revenue Service has the right under 6672 to set up the trust fund debt against those who are held responsible. This is called the trust fund penalty.
You’ll know if you are one of these persons because you will receive IRS form 2751 & 1153 indicating a proposed notice of assessment against you.
There are various options available. As soon as we review your case we can instantly tell you ways to help resolve your problem.
Being former IRS agents and managers we know every possible solution to remedy this tax debt. We can resolve and possibly reduce your tax obligation.
There are various options you have for IRS tax relief:
The basic options include:
1. trust fund appeals, the possibility of an offer in compromise, doubt to liability,
2.hardships, or currently not collectible,
3. payments plan, and
4. the offer in compromise, if you are a qualified and suitable candidate.
5. bankruptcy is another option.
How the Internal Revenue Service will work your case if you owe the IRS tax debt.
IRS will require a 433A or 433F, an individual financial statement.
You can find that form directly on our website.
Many times the IRS uses 433F, depending were the cases in the system. Cases worked in the ACS system uses shorter version of the financial statement.
If the case is worked in the local office the revenue officer will use form 433.A
That financial statement will need to be fully documented along with bank statements, copies of checks and monthly expenses.
We will walk you through the process of how the IRS will work your case in the collection action that can possibly taken.
Will also review with you the IRS national standards program on all cases for those who owe back taxes.
Once IRS reviews your current financial statement they will make a determination and generally put you in one of two categories with the option of filing an offer in compromise.IRS has the option to:
1.IRS determines on 40% of the cases that taxpayers are put into hardship which means they can’t pay the tax at this time. Sometimes it is called currently not collectible. Cases that are placed at currently not collectible or hardship stay in there for a period of 2 to 3 years and come back out to the field at a later time.
2. 6.5 million people enter monthly payment plans and pay a certain amount based on their current documented financial statement.
Other taxpayers file an offer in compromise to settle their case for pennies on the dollar. The offer in compromise requires a lot of skill and expertise to have accepted by the Internal Revenue Service.What is an offer in compromise?
It is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
Taxpayers who can fully pay the liabilities through an installment agreement or other means, will not be eligible for a OIC in most cases.
In order to be eligible for a OIC, the taxpayer must have filed all tax returns, made all required estimated tax payments for the current year and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS will not accept a OIC unless the amount offered by a 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 a OIC based on three grounds:
• First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this only when there is a genuine dispute as to the existence or amount of the correct tax debt under the law.
• Second, the IRS can accept a compromise if there is doubt that the amount owed is fully collectible. Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
• Third, the IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and 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.
When submitting a OIC based on doubt as to collectibility or based on effective tax administration, taxpayers must use the most current version of:
1. Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or,
2. Form 433-B (OIC), Collection Information Statement for Businesses. A taxpayer submitting a OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
Form 656 and referenced collection information statements are available in the Offer in Compromise Booklet, Form 656-B (PDF).
In general, a taxpayer must submit a $186 application fee with the Form 656. Do not combine this fee with any other tax payments.
However, there are two exceptions to this requirement:
• First, no application fee is required if the OIC is based on doubt as to liability.
• Second, the fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656 and check the certification box.
Options: Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A “lump sum cash offer” is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum cash offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $186 application fee.
The 20 percent payment is “nonrefundable” meaning it will not be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.
Instead, the 20 percent payment will be applied to the taxpayer’s tax liability. The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent payment.
An offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted.
When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $186 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum cash offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer.
These amounts are also nonrefundable.
These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Upon acceptance of a OIC, the taxpayer may no longer designate offer payments to any specific tax liability covered in the offer agreement.
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration, and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
The offer in compromise requires a lot of skill because reviewed by several layers of Internal Revenue Service. I should know, I am former IRS agent and teaching instructor of the offer in compromise.
When IRS works an offer in compromise the agent working the case as a general rule will spend at least 20 to 30 hours of working time from start to finish on a completed offer.
Call us today for a free initial tax consultation. We are a full service tax firm.
When you call our office you will speak to a true tax professional.
IRS Tax Help Problem Services + IRS Garnishment Levies + Tax Liens + IRS Audits, Payments Plan + Settle Tax Debt + 33040, 33042, 33043, 33050, 33001 + Key West + Covering, Florida Keys
by Fresh Start Tax | May 23, 2016 | Tax Help
We are an affordable professional tax firm with over 65 years of direct IRS work experience. Since 1982, Local South Florida Tax Experts IRS experts. Covering All of Key West.
We worked out of the local South Florida IRS offices. We are local Experts.
We worked in the audit, collections, and appeals division as well as former IRS teaching instructors.
We have over 65 years of working directly in the South Florida IRS offices. There is no substitute for that much internal training.
There is no South Florida firm with that much experience. We know all the systems in the IRS formulas and methodologies to resolve any IRS tax debt or problem.
I was a former IRS agent that taught the offer in compromise program. I know all the formulas.
Last year over 78,000 offers in compromise were filed by taxpayers and over 38% of those were accepted for average of $6500 per case.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement.
We will not file for an offer in compromise unless you are a true candidate for the program. There is a pre- qualifier tool.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program. However this program is not for everybody.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
You could hear the truth about the offer in compromise program when you call us.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
I know the system inside and out. As a former IRS agent I used to accept and reject offers in compromise. I have heard countless horror stories from taxpayers who called me about firms that have ripped them off promising settlements.
There is a very specific system and methodology to get an offer in compromise approved for pennies on the dollar. Last year 38,000 taxpayers had their cases accepted.
The question is pennies on the dollar possible to settle tax debt?
Yes, it is as a matter of fact, over 38,000 taxpayers got their debt settled with the Internal Revenue Service for average settlement of $6500 last year.
There were a total of 78,000 applications for the pennies on the dollar, offer in compromise program last year.
With that being said there is much to say about this pennies on the dollar program called the offer in compromise.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS and in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlements.
I would suggest anyone who wants to go ahead and settle their tax debt through the pennies on the dollar, offer in compromise program contact an experienced an honest tax professional, have them walk them through the pre-qualifier tool before they give their money to anybody.
If you have any questions or issues about the offer in compromise program to settle your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise. It is possible for the IRS to spend over 20 hours working an offer in compromise.
Caution: On cases over $100,000 it is typical they will check your credit report for the accuracy of your financial statement. The higher the dollar case the greater the due diligence.
Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
Right now there are over 7500 cases in the offer queue to be worked by local agents.
Keep in mind the current wait time is approximately 9 months.
We are a full-service firm with an expertise in any IRS tax debt matter including offering compromise.
One base rule for the offer in compromise program. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
Below you will find out what you need to know about the offer in compromise program.
TYPE’s OF OIC
• Lump Sum Cash Payment:
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.
Understand the process of OIC
While your offer is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for free initial tax consultation to see if you are a certified an eligible candidate for the offer in compromise program.
We call our office you will speak to a true IRS tax professional. So yes pennies on a dollar is possible, however make sure you’re a qualified candidate.
Call us today for a free initial tax consultation and speak to a true IRS expert about the offer in compromise the way to settle your tax debt for pennies on a dollar if you qualify.
When you call our office you will speak to true IRS tax expert to learn more about the offer in compromise and tax debt settlement program to reduce your IRS tax debt.
Offer in Compromise IRS + Settle Tax Debt + Reduce IRS Taxes Experts + IRS Debt Relief + Unfiled Back Tax Returns + 33040, 33042, 33043, 33050, 33001 + Key West + Covering, Florida Keys
