by Fresh Start Tax | Apr 30, 2013 | Tax Help
How to Get Rid of a Federal IRS Tax Lien 1-866-700-1040
There are different ways to get rid of a federal IRS tax lien. As former IRS agents and managers we know all the techniques and solutions to get rid of the federal IRS tax lien.
You should call us today for free initial tax consultation and hear with the most affordable and quickest solutions that are available to you to get rid of your federal IRS tax lien.
We are comprised of tax attorneys, CPAs, and former IRS agents and managers who have over 60 years with the Internal Revenue Service.
We are true tax experts on IRS federal tax lien relief.
We are A+ rated by the Better Business Bureau and a bit in private practice since 1982.
New Procedure to Get Rid of a Federal IRS Tax Lien – Fresh Start Notice of Federal Tax Liens Program
Finally, an Increase in the Notice of Federal Tax Lien filing threshold.
IRS Files Federal Tax Liens when liabilities exceed $10,000.
The brand new Fresh Start changes increase the IRS Notice of Federal Tax Lien filing threshold from $5,000 to $10,000.
Notices of Federal Tax Liens may still be filed on amounts less than $10,000 when circumstances warrant.
The IRS will not retroactively apply the new $10,000 lien notice filing threshold and automatically withdraw a previously filed lien.
You may request a federal tax lien withdrawal after the lien has been released.
The IRS may now issue a withdrawal of a filed Notice of Federal Tax Lien after the lien has been released. If you wish to have the Notice of Federal Tax Lien withdrawn, you must request the withdrawal in writing.
Use Form 12277, Application for Withdrawal (PDF). In item 11, Reason for requesting withdrawal, check the last box,
“The taxpayer, or the Taxpayer Advocate acting on behalf of the taxpayer, believes withdrawal is in the best interest of the taxpayer and the government.”
Generally, eligibility requirements are:
a. Your tax liability has been satisfied and your lien has been released,
b. You are in compliance for the past three years in filing,
c. All individual and business returns,
d. All information returns,
e. You are current on your estimated tax payments and federal tax deposits, as applicable.
Before the Internal Revenue Service will withdraw federal tax lien it will verify the above compliance measures to absolutely ensure it is in the best interest to withdraw that IRS Federal Tax lien.
You must make sure the aforementioned general eligibility requirements are met.
Notice of Federal Tax Lien withdrawal after entering into a Direct Debit installment agreement. Major change!
If you are a qualifying taxpayer and meet the eligibility requirements, you may have your filed Notice of Federal tax Lien withdrawn after entering into a Direct Debit installment agreement. Your request for lien withdrawal must be in writing. Please use Form 12277, Application for Withdrawal (PDF). In item 11, “Reason for requesting withdrawal,” check the third box , “The taxpayer is under a Direct Debit Installment Agreement.“
Qualifying taxpayers are:
1. Individuals,
2. Businesses with income tax liability only,
3. Out of business entities with any type of tax debt.
Eligibility Requirements are:
a. The current amount you owe must be $25,000 or less,
b. If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting the lien withdrawal to be eligible,
c. Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier,
d. You must be in full compliance with other filing and payment requirements,
e. You must have made three consecutive direct debit payments,
f. You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien,
g. You cannot have defaulted on your current, or any previous, direct debit installment agreement.
If you are currently on a regular installment agreement, you may convert to a Direct Debit Installment Agreement.
What is a Federal IRS Tax Lien
A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt.
The lien protects the government’s interest in all your property, including real estate, personal property and financial assets.
A federal tax lien exists after the IRS:
a. Assesses your liability,
b.Sends you a bill that explains how much you owe (Notice and Demand for Payment); and,
c.You neglect or refuse to fully pay the debt in time.
The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.
Other Ways to Get Rid of a IRS Federal Tax Lien
1. Paying your tax debt in full is the best way to get rid of a federal tax lien.
The IRS will release your federal tax lien within 30 days after you have paid your tax debt.
Other Tax Options: When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist.
1. Discharge of property — Allows property to be sold free of the lien.
The seller or buyer can submit Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien (PDF).
2.Subordination — Does not remove the lien, but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage.
For more information review Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien (PDF).
3.Withdrawal — Removes the public notice and assures that the IRS is not competing with other creditors for your property.
If applying for a withdrawal, use Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (PDF).
How a IRS Federal Tax Lien Affects You
All Assets. A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
Credit. Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
Business. The lien attaches to all business property and to all rights to business property, including accounts receivable.
Bankruptcy. If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
How to Get Rid of a Federal IRS Tax Lien – Former IRS Agents/Managers – IRS Tax Lien Relief
by Fresh Start Tax | Apr 29, 2013 | Tax Help
Help for any IRS Problem – Former IRS Agents/Managers 1-866-700-1040
If you need help for any IRS problem whatsoever contact us today for free initial tax consultation.
We are comprised of tax attorneys, IRS tax lawyers, certified public accountants, and former IRS agents and managers.
We have over 60 years of direct working experience and knowledge of the Internal Revenue Service.
We have worked in the local, district, and regional tax offices of the IRS.
While at IRS we taught tax law. Also on staff as a former IRS appellate agent of 25 years. Collectively we have worked every facet of IRS problems. We can help with with all your IRS Problems.
As a result of our 60 years of working for the Internal Revenue Service we are your ultimate help for any IRS problem that you have. We can resolve any IRS notices, bills, collections, audit, or IRS appeal issues that you may have.
We have over 206 years a professional tax experience and we are A+ rated by the Better Business Bureau. We have been in private practice since 1982.
Before you hire any tax firm for help with any IRS problem contact us today and hear what we have to say because we are the true experts for the resolution of IRS issues and problems.
Can the new IRS fresh start program help you for your IRS problem,new IRS policies
The Internal Revenue Service it’s doing its best to reach out to taxpayers having particular issues and problems with the IRS. As a result of several complaints from taxpayer and taxpayer groups the IRS last year came out with a series of different programs to help for taxpayers at fault to certain categories resolve their IRS tax problem.
There are four basic areas that these fall into. You will find below part of the new IRS fresh start program and how it may be helpful to you.
From the IRS
In its latest effort to help struggling taxpayers, the Internal Revenue Service today announced a series of new steps to help people get a fresh start with their tax liabilities.
The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
“We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” IRS Commissioner Doug Shulman said. And it’s all about time.
“These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.”
Changes to its tax lien filing practices
The is IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers.
The changes include:
a. Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
b. Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
c. Creating easier access to Installment Agreements for more struggling small businesses.
d. Expanding a streamlined Offer in Compromise program to cover more taxpayers.
From the Commissioner of the IRS
“These steps are in the best interest of both taxpayers and the tax system,” Shulman said. “People will have a better chance to stay current on their taxes and keep their financial house in order.
We all benefit if that happens.”
Tax relief for taxpayers selling their homes
This is another in a series of steps to help struggling taxpayers. In 2008, the IRS announced lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems. And last year, the IRS held about 1,000 special open houses to help small businesses and individuals resolve tax issues with the Agency.
A review of collection operations which Shulman launched last year, as well as input from the Internal Revenue Service Advisory Council and the National Taxpayer Advocate.
New Federal Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances. These balances are set currently at $10,000.
The IRS plans to review the results and impact of the lien threshold change in about a year.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt.
The notice Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.
What does a federal tax lien mean
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter.
A lien will affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
“Raising the lien threshold keeps pace with inflation and makes sense for the tax system,” Shulman said. “These changes mean tens of thousands of people won’t be burdened by liens, and this step will take place without significantly increasing the financial risk to the government.”
Federal Tax Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
Installment payments – Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.
“We are trying to minimize burden on taxpayers while collecting the proper amount of tax,” Shulman said. “We believe taking away taxpayer burden makes sense when a taxpayer has taken the proactive step of entering a direct debit agreement.”
Installment Agreements and Small Businesses, Payroll Taxes 941
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate.
Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
“Small businesses are an important part of the nation’s economy, and the IRS should help them when we can,” Shulman said. “By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations.”
Offers in Compromise – The Tax Debt Settlement Process
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate.
In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.
The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
Areas of Tax Practice:
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Help for any IRS Problem – Former IRS Agents/Managers – IRS Problem Resolution
by Fresh Start Tax | Apr 29, 2013 | Tax Help
Offer in Compromise – Free Tax Consultation from Former IRS 1-866-700-1040
As a former IRS agent I was an offers in compromise specialist.
Not only to work offers in compromise but as a teaching instructor.
I am a true offer in compromise or IRS tax debt settlement expert trained by the IRS.
I have worked a lifetime worth of offer cases.
As a result of my years of experience at the Internal Revenue Service, I know all the settlement formulas, the settlement procedures, and the exact structure to make this work for any taxpayer who is a true candidate for the IRS settlement program.
If you are considering filing an IRS tax debt settlement called an offer in compromise contact us today and we can offer you a free tax consultation and answer any question that you may have before you file the offer in compromise or the IRS tax debt settlement.
The IRS tax debt settlement or the offer in compromise is a true tax specialty.
There are a lot of misconceptions about the IRS tax debt settlement of OIC and it’s important for taxpayers not to be ripped off by Internet companies and firms claiming they can settle their case for pennies on a dollar.
Each case is unique in each case has its challenges. There is no such thing as a simple offer.
On our website, go to our homepage, click on IRS tools you will find the offer in compromise pre-qualifier. I advise all taxpayers who want to file an offer compromise to walk-through that pre-qualifier to make sure they are qualified offer candidate before filing.
After you walk through that form and have any questions please feel free to contact us and you will speak directly to a qualified IRS attorney, IRS lawyer, former IRS agent or instructor.
The Offer in Compromise/Tax Debt Settlements
The Internal Revenue Service Offer In Compromise Program is the basic IRS settlement tool used by taxpayers to settle their IRS debt.
IRS receives about 60,000 Offers a year. They usually take at least 9 months to work by the IRS.
Settlement program for IRS has a 25% -30% success rate for all those who file offers in compromise. most offers that are accepted by the IRS.
You should know from the start that not all taxpayers fit into the IRS settlement program. Many taxpayers hear about the program thinking that IRS accepts offers in all cases.
The offer in compromise program is for those who have very few assets and have a limited amount of income. There are strict standards for the offer in compromise or IRS tax debt settlement program.
You should not engage any tax firm until they let you know that you are a true settlement candidate.
Many internet tax firms rip thousands and thousands of taxpayers off by telling them ” we can settle for pennies on a dollar. ” If you are going to hire any firm to process your IRS tax debt settlement or your offered compromise I suggest you hire a professional tax firm that has IRS tax attorneys, IRS tax lawyers, certified public accountants, or former IRS agents and managers.
Make sure you are speaking to a tax attorney, certified public accountant, and enrolled agent or a former IRS agent. With most Internet firms they often have sales people try to convince you into an IRS settlement program. Be very cautious this does not happen to you because you can lose your upfront money.
We have over 60 years of direct working knowledge and experience with the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
We will review your case for free and let you know whether you are a qualified settlement program candidate for your back taxes. Hear the truth from fresh start tax today.
What is a IRS Tax Debt Settlement
An offer in compromise or IRS tax debt settlement program 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.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC. check the IRS pre-qualifier before filing.
Eligibility for IRS Tax Debt Settlements
In order to be eligible for an 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.
Reasonable Collection Potential
In most cases, the IRS will not accept an OIC unless the amount offered by the 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.
IRS may accept an Tax Debt Settlement or Offer in Compromise based on three grounds.
1. Acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
2. Acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that 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.
3. Acceptance is permitted 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.
Submission of the IRS Offer in Compromise/IRS Tax Debt Settlement
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of Form 656 (PDF), Offer in Compromise, and must also submit Form 433-A (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (PDF), Collection Information Statement for Businesses.
You can find these forms on our website.
A taxpayer submitting an 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 and/or Form 433-B.
Application fee for the IRS Tax Debt Settlement program
A taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. 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.
The lump sum payment settlement for the Tax Debt Settlement
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum 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 $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount 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 amount.
Periodic Payment Settlement
The 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 $150 application fee.
This amount is nonrefundable, just like the 20 percent payment required for a lump sum 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.
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.
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
IRS Tax Debt Settlement in Default
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties. Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Rejections of the IRS Settlement for Back Taxes
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter.
In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
You can refile your IRS Settlement on Back Taxes if it is not approved
Remember you can file as many offers in compromise as you want.
Taxpayers are not restricted whatsoever. If your first offer in compromise is rejected learn from your mistakes and resubmit another offer correcting the issues in which IRS had problems with.
IRS Tax Debt Settlements – Free Answers to Questions – IRS Tax Attorneys, Lawyers, Former IRS
by Fresh Start Tax | Apr 25, 2013 | Tax Help
IRS Tax Debt Settlements – Free Answers to Questions – Former IRS 1-866-700-1040
If you are considering filing an IRS tax debt settlement called an offer in compromise contact us today and we can offer you a free tax consultation and answer any question that you may have before you file the offer in compromise or the IRS tax debt settlement.
The IRS tax debt settlement or the offer in compromise is a true tax specialty.
As a former IRS agent I was assigned offers in compromise not only to work but as a teaching instructor. I am a true offer in compromise or IRS tax debt settlement expert. I have worked hundreds and hundreds cases.
There are a lot of misconceptions about the IRS tax debt settlement and it’s important for taxpayers not to be ripped off by Internet companies and firms claiming they can settle their case for pennies on a dollar. Each case is unique in each case has its challenges. There is no such thing as a simple offer.
On our site, go to our homepage, click on IRS tools you will find the a pre-qualifier. I advise all taxpayers who want to file an offer compromise to walk-through that pre-qualifier to make sure they are qualified candidate before filing.
After you walk through that form and have any questions please feel free to contact us and you will speak directly to a qualified IRS attorney, IRS lawyer, former IRS agent or instructor.
The Offer in Compromise/Tax Debt Settlements
The Internal Revenue Service Offer In Compromise Program is the basic IRS settlement tool used by taxpayers to settle their IRS debt.
IRS receives about 60,000 Offers a year. They usually take at least 9 months to work by the IRS.
Settlement program for IRS has a 25% success rate for all those who file offers in compromise.
As a result of my years of experience at the Internal Revenue Service, I know all the settlement formulas, the settlement procedures, and the exact structure to make this work for any taxpayer who is a true candidate for the IRS settlement program.
You should know from the start that not all taxpayers fit into the IRS settlement program. Many taxpayers hear about the program thinking that IRS accepts offers in all cases.
The offer in compromise program is for those who have very few assets and have a limited amount of income. There are strict standards for the offer in compromise or IRS tax debt settlement program.
You should not engage any tax firm until they let you know that you are a true settlement candidate.
Many internet tax firms rip thousands and thousands of taxpayers off by telling them ” we can settle for pennies on a dollar. ” If you are going to hire any firm to process your IRS tax debt settlement or your offered compromise I suggest you hire a professional tax firm that has IRS tax attorneys, IRS tax lawyers, certified public accountants, or former IRS agents and managers.
When call the company make sure you know who you’re speaking to before engaging any tax firm to settle your IRS cases on back tax.
Make sure you are speaking to a tax attorney, certified public accountant, and enrolled agent or a former IRS agent. With most Internet firms they often have sales people try to convince you into an IRS settlement program. Be very cautious this does not happen to you because you can lose your upfront money.
We have over 60 years of direct working knowledge and experience with the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
We will review your case for free and let you know whether you are a qualified settlement program candidate for your back taxes. Hear the truth from fresh start tax today.
What is a IRS Tax Debt Settlement
An offer in compromise or IRS tax debt settlement program 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.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC. check the IRS pre-qualifier before filing.
Eligibility for IRS Tax Debt Settlements
In order to be eligible for an 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 an OIC unless the amount offered by the 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.
IRS may accept an Tax Debt Settlement or Offer in Compromise based on three grounds.
1. Acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
2. Acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that 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.
3. Acceptance is permitted 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.
Submission of the IRS Offer in Compromise/IRS Tax Debt Settlement
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of Form 656 (PDF), Offer in Compromise, and must also submit Form 433-A (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (PDF), Collection Information Statement for Businesses.
You can find these forms on our website.
A taxpayer submitting an 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 and/or Form 433-B.
Application fee for the IRS Tax Debt Settlement program
A taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. 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.
The lump sum payment settlement for the Tax Debt Settlement
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum 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 $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount 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 amount.
Periodic Payment Settlement
The 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 $150 application fee.
This amount is nonrefundable, just like the 20 percent payment required for a lump sum 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.
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.
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
IRS Tax Debt Settlement in Default
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties. Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Rejections of the IRS Settlement for Back Taxes
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter.
In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
You can refile your IRS Settlement on Back Taxes if it is not approved
Remember you can file as many offers in compromise as you want.
Taxpayers are not restricted whatsoever. If your first offer in compromise is rejected learn from your mistakes and resubmit another offer correcting the issues in which IRS had problems with.
IRS Tax Debt Settlements – Free Answers to Questions – IRS Tax Attorneys, Lawyers, Former IRS
by Fresh Start Tax | Apr 24, 2013 | Tax Help
Wage Garnishment – IRS Tax Attorneys, Lawyers – Experts in Wage Garnishments Removal, Settlements 1-866-700-1040
If you need immediate removal of an IRS wage garnishment contact us today for immediate tax relief and get your case settled.
We are comprised of IRS tax attorneys, tax lawyers, certified public accountants, enrolled agents, and former IRS agents managers and tax instructors.
We have over 206 years professional tax experience and over 60 years of working directly for the Internal Revenue Service has agents and managers. While at the Internal Revenue Service we also taught collection tax law.
Because of our term of service at the Internal Revenue Service we are tax experts in the removal of wage garnishments and tax settlements. As a result of our 60 years at IRS, we know the exact systems, the exact protocols, and the exact methods in which IRS releases wage garnishment levies and how they settle their cases.
Why did IRS send out a Wage Garnishment
IRS sends out a series of three or four billing notices to the last known address of the taxpayer which address shows up as a result of the filing of their last filed income tax return.
IRS is allowed by law only to send that last billing notice to the last address shown on their tax return. No other requirement needs to be met. IRS makes no other attempt to contact the taxpayer.
If the taxpayer does not comply to IRS request to contact the one 800 number shown on the final notice of their bill, the IRS systemically sends out a wage garnishment levy to the taxpayers employer.
The employer is usually found on a W-2 or other income indicators that the Internal Revenue Service has on their CADE2 computer.
All of these wage garnishment levies are sent out systemically by the Internal Revenue Service in their untouched by human hands.
How long is the wage garnishment levy in effect
The IRS wage garnishment is a continual levy and does not stop until he employer receives an actual release of the federal tax wage garnishment.
The form the IRS sends to garnish a person’s wages is a form 668-W. A taxpayer should immediately contact a tax professional or the Internal Revenue Service to start the process to get the IRS wage garnishment removed and the case settled.
What is needed to get the wage garnishment released
To get the wage garnishment released from the Internal Revenue Service a taxpayer will have to provide a current financial statement to the Internal Revenue Service.
That form is the 433-F and you can find that financial statement on our website.
That form will need to be sent or faxed to the Internal Revenue Service along with the last pay stubs, the last 3 to 6 months bank statements, and a copy of all income and expenses for the last three months.
IRS will use the national and regional standards to assess your financial statement before they make a determination on your case.
IRS may also request that all federal income tax returns be filed and brought up to date and evidence or proof that you are making current tax deposits or have enough withholding being taken now your check at the situation will not occur again.
How soon can you get the IRS wage garnishment removed
As soon as IRS gets a fully completed 433F with all the associated documentation the IRS will begin the process of closing your case off the IRS enforcement computer and releasing your Wage Garnishment .
To do that IRS will need a closing method in which to close the case.
As a general rule the IRS closes case is one of three ways.
After the Internal Revenue Service analyzes your case they will determine that you are either a financial hardship candidate, you are suitable for installment agreement, or you are a tax settlement candidate and will let you know that you should file an offer in compromise.
Offers in compromise or IRS tax debt settlement should not be done without professional tax help. As a former IRS agent and teaching instructor of the offer in compromise I can tell you first hand the OIC is much more complicated than people ever think.
IRS accepts about 29% of all the offers in compromise filed and my hunch is that a 90% of those that are accepted are filed by professional tax companies.
The Internal Revenue Service can do more than just send a wage garnishment out
Keep in mind the Internal Revenue Service to not have to stop with just the wage garnishment. IRS has the option of issuing a bank levy to your financial institutions and also has the ability of file a federal tax lien. It is extremely important to contact the IRS and resolve this problem as soon as possible.
Contact us today. We are comprised of IRS tax attorneys, certified public accountants, and former IRS agents managers instructors.
We are A+ rated by the Better Business Bureau have been in private practice since 1982.
Wage Garnishment – IRS Tax Attorneys, Lawyers – Experts in Wage Garnishments Removal, Settlements
by Fresh Start Tax | Apr 24, 2013 | Tax Help
IRS Settlement Program for Back Taxes – Hear the Truth 1-866-700-1040
The Internal Revenue Service Offer In Compromise Program is the basic IRS settlement tool used by taxpayers to settle their IRS debt.
Settlement program for IRS has a 25% success rate for all those who file offers in compromise.
As a former IRS agent I have not only work this program but am a former IRS teaching instructor.
As a result of my years of experience at the Internal Revenue Service, I know all the settlement formulas, the settlement procedures, and the exact structure to make this work for any taxpayer who is a true candidate for the IRS settlement program.
You should know from the start that not all taxpayers fit into the IRS settlement program.
IRS has a pre-qualifier tool and you will find that our website.
You should not engage any tax firm until they let you know that you are a true settlement candidate. Many internet tax firms rip thousands and thousands of taxpayers off by telling them ” we can settle for pennies on a dollar. ”
Make sure you know who you’re speaking to before engaging any tax firm to settle your IRS cases on back tax. Make sure you are speaking to a tax attorney, certified public accountant, and enrolled agent or a former IRS agent. with most Internet firms they often have sales people try to convince you into an IRS settlement program. Be very cautious this does not happen to you because you can lose your upfront money.
We have over 60 years of direct working knowledge and experience with the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
We will review your case for free and let you know whether you are a qualified settlement program candidate for your back taxes. Hear the truth from fresh start tax today.
What is the IRS settlement program
An offer in compromise or tax debt settlement program 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.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
Eligibility
In order to be eligible for an 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 an OIC unless the amount offered by the 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.
IRS may accept an OIC based on three grounds.
First. Acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second. Acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that 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. Acceptance is permitted 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.
Submission of the IRS Offer in Compromise
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of Form 656 (PDF), Offer in Compromise, and must also submit Form 433-A (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (PDF), Collection Information Statement for Businesses.
A taxpayer submitting an 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 and/or Form 433-B.
Application fee for the IRS settlement program
A taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. 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.
The lump sum payment settlement
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum 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 $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount 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 amount.
Periodic payment offer or settlement
The 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 $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum 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.
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. If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties. Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Rejections of the IRS Settlement for Back Taxes
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals. The appeal must be made within 30 days from the date of the letter.
In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
You can refile your IRS Settlement on Back Taxes if it is not approved
Remember you can file as many offers in compromise as you want. Taxpayers are not restricted whatsoever. If your first offer in compromise is rejected learn from your mistakes and resubmit another offer correcting the issues in which IRS had problems with.
IRS Settlement Program for Back Taxes – Hear the Truth, Former IRS
