by Fresh Start Tax | Sep 12, 2013 | Expatriate Tax, FBAR, Tax Help
We are a full service tax from the deals in International tax affairs including nonresident alien tax help.
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Taxation of Nonresident Aliens
Definition
An alien is any individual who is not a U.S. citizen or U.S. national.
A nonresident alien is an alien who has not passed the green card test or the substantial presence test.
Who Must File
If you are any of the following, you must file a return:
- A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year. You must file even if:
- Your income did not come from a trade or business conducted in the United States,
- You have no income from U.S. sources, or
- Your income is exempt from income tax.
However, if your only U.S. source income is wages in an amount less than the personal exemption amount (see Publication 501), you are not required to file.
A nonresident alien individual not engaged in a trade or business in the United States with U.S. income on which the tax liability was not satisfied by the withholding of tax at the source.
A representative or agent responsible for filing the return of an individual described in (1) or (2),
A fiduciary for a nonresident alien estate or trust, or
A resident or domestic fiduciary, or other person, charged with the care of the person or property of a nonresident individual may be required to file an income tax return for that individual and pay the tax (Refer to Treas. Reg. 1.6012-3(b)).
NOTE:
If you were a nonresident alien student, teacher, or trainee who was temporarily present in the United States on an “F,””J,””M,” or “Q” visa, you are considered engaged in a trade or business in the United States. You must file Form 1040NR (or Form 1040NR-EZ) only if you have income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc.
Refer to Foreign Students and Scholars for more information.
Claiming a Refund or Benefit
You must also file an income tax return if you want to:
- Claim a refund of overwithheld or overpaid tax, or
- Claim the benefit of any deductions or credits. For example, if you have no U.S. business activities but have income from real property that you choose to treat as effectively connected income, you must timely file a true and accurate return to take any allowable deductions against that income.
Which Income to Report
A nonresident alien’s income that is subject to U.S. income tax must generally be divided into two categories:
Income that is Effectively Connected with a trade or business in the United States
U.S. source income that is Fixed, Determinable, Annual, or Periodical (FDAP)
Effectively Connected Income, after allowable deductions, is taxed at graduated rates. These are the same rates that apply to U.S. citizens and residents.
FDAP income generally consists of passive investment income; however, in theory, it could consist of almost any sort of income. FDAP income is taxed at a flat 30 percent (or lower treaty rate) and no deductions are allowed against such income.
Effectively Connected Income should be reported on page one of Form 1040NR. FDAP income should be reported on page four of Form 1040NR.
Which Form to File
Nonresident aliens who are required to file an income tax return must use:
- Form 1040NR-EZ (PDF) if qualified. Refer to the Instructions for Form 1040NR-EZ to determine if you qualify.
- Find more information at Which Form to File.
When and Where To File
If you are an employee or self-employed person and you receive wages or non-employee compensation subject to U.S. income tax withholding, or you have an office or place of business in the United States, you must generally file by the 15th day of the 4th month after your tax year ends.
For a person filing using a calendar year this is generally April 15.
If you are not an employee or self-employed person who receives wages or non-employee compensation subject to U.S. income tax withholding, or if you do not have an office or place of business in the United States, you must file by the 15th day of the 6th month after your tax year ends. For a person filing using a calendar year this is generally June 15.
File Form 1040NR-EZ and Form 1040NR at the address shown in the instructions for Form 1040NR-EZ and 1040NR.
Extension of time to file
If you cannot file your return by the due date, you should file Form 4868 (PDF) to request an automatic extension of time to file. You must file Form 4868 by the regular due date of the return.
You Could Lose Your Deductions and Credits
To get the benefit of any allowable deductions or credits, you must timely file a true and accurate income tax return.
For this purpose, a return is timely if it is filed within 16 months of the due date just discussed.
The Internal Revenue Service has the right to deny deductions and credits on tax returns filed more than 16 months after the due dates of the returns.
Before leaving the United States, all aliens (with certain exceptions) must obtain a certificate of compliance.
Sailing permit or departure permit
This document, also popularly known as the sailing permit or departure permit, must be secured from the IRS before leaving the U.S.
You will receive a sailing or departure permit after filing a Form 1040-C (PDF) or Form 2063 (PDF).
Even if you have left the United States and filed a Form 1040-C, U.S. Departing Alien Income Tax Return (PDF), on departure, you still must file an annual U.S. income tax return.
If you are married and both you and your spouse are required to file, you must each file a separate return, unless one of the spouses is a U.S. citizen or a resident alien, in which case the departing alien could file a joint return with his or her spouse (Refer to Nonresident Spouse Treated as a Resident).
Contact us today for an initial tax consultation and you can speak directly a tax professional.
We are comprised of tax attorneys, tax lawyers, certified public accountants, former IRS and nonresident alien tax consultants.
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by Fresh Start Tax | Sep 12, 2013 | Expatriate Tax, Tax Help
Expatriation Tax Rules and Tax Help
Our firm is comprised of tax attorneys, CPAs and former IRS agents. we have over 206 years of professional tax experience in over 60 years of working for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
If you need EXPAT tax help and need to speak to international attorneys, CPAs or former IRS agents.
Contact us today for free initial tax consultation
The expatriation tax provisions under Internal Revenue Code (IRC) sections 877 and 877A apply to US citizens who have renounced their citizenship and long-term residents (as defined in IRC 877(e)) who have ended their US resident status for federal tax purposes.
Different rules apply according to the date upon which you expatriated.
- Expatriation on or after June 16, 2008
- Expatriation after June 3, 2004 and before June 16, 2008
- Expatriation on or before June 3, 2004
- Expatriation on or after June 16, 2008
If you expatriated after June 16, 2008, the new IRC 877A expatriation rules apply to you if any of the following statements apply.
Your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than a specified amount that is adjusted for inflation ($147,000 for 2011, $151,000 for 2012, and $155,000 for 2013).
Net Worth
Your net worth is $2 million or more on the date of your expatriation or termination of residency.
You fail to certify on Form 8854 that you have complied with all U.S. federal tax obligations for the 5 years preceding the date of your expatriation or termination of residency.
If any of these rules apply, you are a “covered expatriate.”
Citizenship
A citizen will be treated as relinquishing his or her U.S. citizenship on the earliest of four possible dates:
(1) the date the individual renounces his or her U.S. nationality before a diplomatic or consular officer of the United States, provided the renunciation is subsequently approved by the issuance to the individual of a certificate of loss of nationality by the U.S. Department of State;
(2) the date the individual furnishes to the U.S. Department of State a signed statement of voluntary relinquishment of U.S. nationality confirming the performance of an act of expatriation specified in paragraph (1), (2), (3), or (4) of section 349(a) of the Immigration and Nationality Act (8 U.S.C. 1481(a)(1)-(4)), provided the voluntary relinquishment is subsequently approved by the issuance to the individual of a certificate of loss of nationality by the U.S. Department of State;
(3) the date the U.S. Department of State issues to the individual a certificate of loss of nationality; or
(4) the date a U.S. court cancels a naturalized citizen’s certificate of naturalization.
Long-term residents
For long-term residents, as defined in IRC 7701(b)(6), a long-term resident ceases to be a lawful permanent resident if
(A) the individual’s status of having been lawfully accorded the privilege of residing permanently in the United States as an immigrant in accordance with immigration laws has been revoked or has been administratively or judicially determined to have been abandoned, or if
(B) the individual (1) commences to be treated as a resident of a foreign country under the provisions of a tax treaty between the United States and the foreign country, (2) does not waive the benefits of the treaty applicable to residents of the foreign country, and (3) notifies the IRS of such treatment on Forms 8833 and 8854.
IRC 877A imposes a mark-to-market regime, which generally means that all property of a covered expatriate is deemed sold for its fair market value on the day before the expatriation date.
Any gain arising from the deemed sale is taken into account for the tax year of the deemed sale notwithstanding any other provisions of the Code. Any loss from the deemed sale is taken into account for the tax year of the deemed sale to the extent otherwise provided in the Code, except that the wash sale rules of IRC 1091 do not apply.
The amount that would otherwise be includable in gross income by reason of the deemed sale rule is reduced (but not to below zero) by $600,000, which amount is to be adjusted for inflation for calendar years after 2008 (the “exclusion amount”).
For calendar year 2013, the exclusion amount is $663,000. For other years, refer to the Instructions for Form 8854.
The amount of any gain or loss subsequently realized (i.e., pursuant to the disposition of the property) will be adjusted for gain and loss taken into account under the IRC 877A mark-to-market regime, without regard to the exclusion amount. A taxpayer may elect to defer payment of tax attributable to property deemed sold.
Form 8854, Initial and Annual Expatriation Information Statement, and its Instructions have been revised to permit individuals to meet the new notification and information reporting requirements.
The revised Form 8854 and its instructions also address how individuals should certify (in accordance with the new law) that they have met their federal tax obligations for the five preceding taxable years and what constitutes notification to the Department of State or the Department of Homeland Security.
Please Note. If you expatriated before June 17, 2008, the expatriation rules in effect at that time continue to apply. See chapter 4 in Publication 519, U.S. Tax Guide for Aliens, for more information.
Expatriation after June 3, 2004 and before June 16, 2008
The American Jobs Creation Act
The American Jobs Creation Act (AJCA) of 2004 amends IRC section 877, which provides for an alternative tax regime for certain, expatriated individuals. Amended IRC 877 creates objective criteria to impose the tax on individuals with an average income tax liability for the 5 prior years of $124,000 for tax year 2004, $127,000 for tax year 2005, $131,000 for 2006, $136,000 for 2007, or $139,000 for 2008, or a net worth of $2,000,000 on the date of expatriation.
In addition, it requires individuals to certify to the IRS that they have satisfied all federal tax requirements for the 5 years prior to expatriation and requires annual information reporting for each taxable year during which an individual is subject to the rules of IRC 877.
Further, expatriated individuals will be subject to U.S. tax on their worldwide income for any of the 10 years following expatriation in which they are present in the U.S. for more than 30 days, or 60 days in the case of individuals working in the U.S. for an unrelated employer.
Finally, even if they do not meet the monetary thresholds for imposition of the IRC 877 expatriation tax, IRC 7701(n) provides that individuals will continue to be treated as U.S. citizens or long-term residents for U.S. tax purposes until they have notified both the Internal Revenue Service (via Form 8854) and the Secretary of the Department of State (for former U.S. citizens) or the Department of Homeland Security (for long-term permanent residents) of their expatriation or termination of residency.
Also, for individuals who expatriated after June 3, 2004, and before June 16, 2008, IRC 6039G requires annual information reporting for each taxable year during which such an individual is subject to the rules of IRC 877. Form 8854 is due on the date that the individual’s U.S. income tax return for the taxable year is due or would be due if such a return were required to be filed.
Form 8854, Initial and Annual Expatriation Information Statement, and its Instructions have been revised to permit individuals who expatriated after June 3, 2004, and before June 16, 2008, to meet the new notification and information reporting requirements under IRC 6039G.
Notice 2005-36, Form 8854 and Expatriation Reporting Rules
Press Release IR-2005-49 (issued 4/22/05), IRS, Treasury Release Guidance on Expatriation Reporting Requirements
Expatriation on or before June 3, 2004
The expatriation tax provisions (prior to the AJCA amendments) apply to U.S. citizens who have renounced their citizenship and long-term residents who have ended their US residency for tax purposes, if one of the principal purposes of the action is the avoidance of U.S. taxes. You are presumed to have tax avoidance as a principle purpose if:
Your average annual net income tax for the last 5 tax years ending before the date of the expatriation act is more than $124,000, or
Your net worth on the date of the expatriation act is $622,000 or more.
If you meet either of the tests shown above, you may be eligible to request a ruling from the IRS that you did not expatriate to avoid U.S. taxes. You must request this ruling within one year from the date of expatriation. For information that must be included in your ruling request, see Section IV of Notice 97-19. If you receive this ruling, the expatriation tax provisions do not apply.
The expatriation tax applies to the 10-year period following the date of the expatriation action. It is figured in the same way as for those individuals expatriating after June 3, 2004, and before June 17, 2008. Individuals who renounced their US citizenship, or long-term residents that terminated their US residency, for tax purposes on or before June 3, 2004, must file an initial Form 8854, Initial and Annual Expatriation Information Statement. For more detailed information refer to Expatriation Tax in Publication 519, U.S. Tax Guide for Aliens.
Individuals who renounced their U.S. citizenship or terminated their long-term resident status for tax purposes on or before June 3, 2004, must file a Form 8854, Initial and Annual Expatriation Information Statement (PDF), to comply with the notification requirements under IRC 877. For more detailed information refer to Expatriation Tax in Publication 519, U.S. Tax Guide for Aliens.
What to do if you haven’t filed a Form 8854
For more detailed information on how, when and where to file Form 8854, refer to the Instructions for Form 8854.
What to do if you haven’t filed an Income Tax Return
Among the various requirements contained in IRC 877 and 877A, individuals who renounced their US citizenship or terminated their long-term resident status for tax purposes after June 3, 2004 are required to certify to the IRS that they have satisfied all federal tax requirements for the 5 years prior to expatriation.
If all federal tax requirements have not been satisfied for the 5 years prior to expatriation, the individual will be subject to the IRC 877 and 877A expatriation tax provisions even if the individual does not meet the monetary thresholds in IRC 877 or 877A.
Individuals who have expatriated should file all tax returns that are due, regardless of whether or not full payment can be made with the return.
Depending on an individual’s circumstances, a taxpayer filing late may qualify for a payment plan. All payment plans require continued compliance with all filing and payment responsibilities after the plan is approved.
For more detailed information on what to do if you have not filed your required federal income tax returns, refer to Filing Past Due Tax Returns.
Significant penalty imposed for not filing expatriation form
The Internal Revenue Service reminds practitioners that anyone who has expatriated or terminated his U.S. residency status must file Form 8854, Initial and Annual Expatriation Information Statement (PDF).
Form 8854 must also be filed to comply with the annual information reporting requirements of IRC 6039G, if the person is subject to the alternative expatriation tax under IRC 877 or IRC 877A. A $10,000 penalty may be imposed for failure to file Form 8854 when required.
IRS is sending notices to expatriates who have not complied with the Form 8854 requirements, including the imposition of the $10,000 penalty where appropriate.
The Instructions for Form 8854 provide details about the filing requirements, related definitions and line-by-line instructions for completing the form.
Failure to file or not including all the information required by the form or including incorrect information could lead to a penalty.
You may Skype us today for free initial tax consultation to learn more
Expatriate Tax Help – International Attorneys, CPA’s, Former IRS, Accountants
by Fresh Start Tax | Sep 11, 2013 | Tax Help
Some Nonresidents with U.S. Assets Must File Estate Tax Returns
Everyone has to pay the fiddler and everybody has to pay the IRS
Deceased nonresidents who were not American citizens are subject to U.S. estate taxation with respect to their U.S.- situated assets.
U.S.-situated assets include American real estate, tangible personal property, and securities of U.S. companies.
A nonresident’s stock holdings in American companies are subject to estate taxation even though the nonresident held the certificates abroad or registered the certificates in the name of a nominee.
Exceptions:
Assets that are exempt from U.S. estate tax include securities that generate portfolio interest, bank accounts not used in connection with a trade or business in the U.S., and insurance proceeds.
Estate tax treaties between the U.S. and other countries often provide more favorable tax treatment to nonresidents by limiting the type of asset considered situated in the U.S. and subject to U.S. estate taxation.
Executors for nonresident estates should consult such treaties where applicable.
Executors for nonresidents must file an estate tax return, Form 706NA, United States Estate (and Generation-Skipping) Tax Return, Estate of a nonresident not a citizen of the United States, if the fair market value at death of the decedent’s U.S.-situated assets exceeds $60,000.
However, if the decedent made substantial lifetime gifts of U.S. property, and used the applicable $13,000 “unified credit exemption” amount to eliminate or reduce any gift tax on the lifetime gifts, a U.S. estate tax return may still be required even if the value of the decedent’s U.S. situated assets is less than $60,000 at the date of death (due to the decrease in the “unified credit exemption” for the lifetime gifts).
See Unified Credit (Applicable Credit Amount) Section in Publication 950, Introduction to Estate and Gift Taxes, and the Form 706NA Instructions for more information.
American citizens are subject to U.S. estate taxation with respect to their worldwide assets. An estate tax return, Form 706, United States Estate (and Generation-Skipping) Tax Return, Estate of a citizen or resident of the United States, is required for a deceased American citizen, if the fair market value at death of the decedent’s worldwide assets exceeds the “unified credit exemption” amount in effect on the date of death.
However, if the U.S. citizen made substantial lifetime gifts, and used the applicable “unified credit exemption” amount to eliminate or reduce any gift tax on the lifetime gifts, a U.S. estate tax return may still be required even if the value of the decedent’s worldwide assets is less than the “unified credit exemption” amount at the date of death (due to the decrease in the “unified credit exemption” for the lifetime gifts).
To determine the “unified credit exemption” amount for American citizens for any particular year, refer to the Instructions to Form 706 or to Publication 950, Introduction to Estate and Gift Taxes.
The Internal Revenue Service may collect any unpaid estate tax from any person receiving a distribution of the decedent’s property under transferee liability provisions of the tax code.
Special Rules Applicable to Gifts or Bequests from Covered Expatriates
U.S. citizens and long-term residents who relinquished their U.S. citizenship or ceased to be U.S. lawful permanent residents (green card holders) on or after June 17, 2008, and who meet specific average tax or net worth thresholds on the day prior to their expatriation are considered “covered expatriates” – subject to IRC section 877A.
U.S. citizens and residents who receive gifts or bequests from covered expatriates under IRC 877A may be subject to tax under new IRC section 2801, which imposes a transfer tax on U.S. persons who receive gifts or bequests on or after June 17, 2008, from such former U.S. citizens or former U.S. lawful permanent residents.
In addition, covered expatriates under IRC 877A are not considered U.S. expatriates for purposes of Form 706NA, United States Estate (and Generation-Skipping) Tax Return, Estate of a nonresident not a citizen of the United States.
Non-Resident Alien US Tax Help – Estate Tax Returns
by Fresh Start Tax | Sep 11, 2013 | Tax Help
With the ever-changing world of tax treaties you will find that revisions, changes and expanded treaties are being made each and every year.
With the United States government hot and the trails of overseas and offshore banking more people are asking for copies of tax treaties. If you want to obtain a copy of the tax treaty, please read below.
Obtaining Copies of Tax Treaties
To view the text of a specific tax treaty, go to irs.gov and search for “tax treaties.”
You will find the text of each treaty, and in most cases, the Technical Explanation for the treaty.
The Technical Explanation provides more detail on the intent of the treaty language.
You can also request the text of treaties from the Department of Treasury at the following address:
Department of Treasury
Office of Public Correspondence
Room 3419
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Remember that treaties are updated periodically and amended by protocols, so be sure to check for the latest information on specific treaties when claiming treaty benefits.
How to OBTAIN copies of Tax Treaties
by Fresh Start Tax | Sep 11, 2013 | Tax Help
So okay, you made a mistake on your tax return is not a big deal to fix or correct. Thousands of taxpayers make mistakes on their tax returns. Many taxpayers receive 1099s or W-2s or many have found additional expenses that they failed the claim so IRS has put the procedure of the amended tax return in place.
If you need help with this process we can file your amended tax return and settle any tax debt if that is the case.
Amended Tax Returns
If you discover an error after your return has been filed, you may need to amend your return. The IRS may correct errors in math on a return and may accept returns with certain forms or schedules left out.
In these instances, do not amend your return! However, do file an amended return if there is a change in your filing status, income, deductions, or credits.
Also, if the Form 8938 (PDF), Statement of Specified Foreign Financial Assets, applies to you, see Filing Form 8938 after filing 2011 or 2012 annual returns in the Form 8938 Instructions.
Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), Form 1040EZ (PDF), Form 1040NR (PDF), or Form 1040NR-EZ (PDF).
If you are filing to claim an additional refund, wait until you have received your original refund (you may cash that check). If you owe additional tax for a tax year for which the filing date has not passed, file Form 1040X and pay the tax by the filing date for that year to avoid penalties and interest.
If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. The Form 1040X Instructions list the addresses for the service centers.
KEY NOTE : File a separate Form 1040X for each year you are amending.
- You need to mail each form in a separate envelope.
- Be sure to enter the year of the return you are amending at the top of Form 1040X.
The form has three columns. Column A shows original or adjusted figures from the original return. Column C shows the corrected figures. The difference between Columns A and C is shown in Column B.
There is an area on the back of the form to explain the specific changes being made and the reason for each change. Attach any forms or schedules that are affected by the change. Generally, to claim a refund, Form 1040X must be filed within 3 years from the due date of your original return or within 2 years from the date you paid the tax, whichever is later. Returns filed before the due date (without regard to extensions) are considered filed on the due date.
Attach copies of any forms or schedules that are being changed as a result of the amendment, including any Form(s) W-2 received after the original return was filed.
Tax forms can be obtained by calling 800-829-3676 or visiting www.irs.gov.
Two notes of interest
1. An amended tax return cannot be filed electronically under the e-file system.
2. Normal processing time for Forms 1040X is 8 to 12 weeks from the IRS receipt date.
State tax liability
Please note: Your state tax liability may be affected by a change made on your federal return. For information on how to correct your state tax return, contact your state tax agency.
You can check the status of your Form 1040X (PDF), Amended U.S. Individual Income Tax Return, using the “Where’s My Amended Return?” (WMAR) online tool, or the new toll-free telephone line 866-464-2050 three weeks after you file your amended return. Both tools are available in English and Spanish and track the status of amended returns for the current year and up to three prior years.
You must enter your Taxpayer Identification Number, usually your social security number, date of birth, and ZIP code in either application to prove your identity.
Once authenticated, you can view the status of your amended return across three processing stages–Received, Adjusted and Completed.
The Web tool includes an illustrated graphic that visually communicates where your amended return resides within the processing stages.
As a reminder, amended returns take up to 12 weeks to process and up to three weeks to show in the application.
There’s no need to call the IRS unless the application specifically tells you to do so.
How to File and AMENDED TAX RETURN – Fresh Start Tax – Former IRS
by Fresh Start Tax | Sep 11, 2013 | Tax Help
Unable to Pay IRS Taxes – South Florida
We are a local South Florida tax firm comprised of tax attorneys, certified public accountants and former IRS agents. We have been practicing since 1982 right here in South Florida and have an A+ rating.
If you are unable to pay your IRS back taxes as a general rule you have three available tax options.
I know them all, I was a former IRS agent in teaching instructor.You may speak with us for a no cost consultation. When you call our office you will speak directly to a tax professional.
You should know that IRS will require that all your tax returns are filed and up-to-date and that you have enough withholding being taken out of your pay check so that you will not continue to incur more tax debt. If you are not current the Internal Revenue Service will begin taking enforcement action.
So before you do anything with the IRS, make sure you are in tax compliance with back tax filings and current withholding’s. Many time the IRS will ask last to see a current estimate payment or a pay stub slip to verify you have withholding being taken now your check.
How the IRS will Deal with your Paying Back Taxes (Unable to Pay IRS Taxes )
IRS deals with all tax debtors in the same way.
No matter where you live or who you are, there is one standard for every taxpayer.
IRS will require a current financial statement which will be on IRS form 433F. If the cases is in the local office the revenue officer will require the longer version which is the 433 -A.
That form will have to be submitted to the Internal Revenue Service with all documentation including pay stubs, bank statements, and proof of all income and expenses for the last six months.
IRS will then take that financial statement and compare that to the national and regional statistics in the area that you live for all allowable living expenses.
IRS will then come to a determination based on your financial statements up against those of the national and regional standards. You can find the charts of the national and regional standards on our website.
After IRS carefully conducts a financial review you will fall in one of three categories based completely on that financial statement.
Your case will either be put into;
1. a non-collectible file which it will remain for anywhere from 1 to 3 years,
2. IRS will insist on a monthly payment or installment plan, or
3. you can be eligible for an offer in compromise or tax settlement
Question: I am unable to pay my delinquent taxes. Will the IRS accept an Offer in Compromise?
Answer:
You may qualify for an Offer in Compromise if you are unable to pay your taxes in full or if you are facing economic hardship or other special circumstances.
Note: Offer in Compromise Application Fee – Your offer must include the $150 application fee. If you are requesting a low-income exception of the fee, you must complete section 4 of the Form 656 (PDF), Offer in Compromise.
Offers received without the $150 fee or a completed section 4 of the Form 656 will not be accepted for processing. Please see Step 6 on Page 4 of the Form 656-B (PDF), Offer in Compromise Booklet, for more information on the application fee, and section 4 of the Form 656 to determine if you qualify for the low-income exception.
Please also see Steps 2 and 3 on Page 4 of the Form 656-B to determine whether your application must include either a completed Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
If you are not granted an Offer-in-Compromise and you are still unable to pay your delinquent taxes in full, you still may be eligible for an installment agreement.
File Form 433-D (PDF), Installment Agreement, and pay a $105 user fee, which we have the authority to deduct from your first payment(s) ($52 for direct debit).
If you default on your installment agreement, you must pay a $45 reinstatement fee if we reinstate the agreement.
You can call us today for more details.
We will give you a free tax assessment if you are unable to pay IRS taxes. We will review your financial statement and tell you that the exact way the Internal Revenue Service will deal with you.
If you have back returns you need to file we can prepare those before calling the Internal Revenue Service. Remember all your returns must be on the IRS computer before IRS will close out your case.
Unable To Pay IRS Back Taxes – Call Former IRS agents – Miami, Ft.Lauderdale, Pompano, Boca, Palm Beaches
