If you’re dealing with back tax debt from the Internal Revenue Service is always in your best interest to hire local South Florida tax professionals.
We are a local South Florida professional tax firm staffed with tax debt attorneys, certified public accountants, former IRS agents, managers and tax instructors.
We have over 206 years of professional tax experience and over 60 years directly with the Internal Revenue Service.
Free Professional Tax Advice from Tax Debt Attorneys and Professionals
There are different ways to deal with the Internal Revenue Service to settle a tax debt.
One of the critical aspects in settling with the Internal Revenue Service is to make sure that your case is permanently resolved.
Many taxpayers are fooled by thinking because their case is in a non-collectible status or part pay status that their case is primarily result but those cases are only held in all abeyance for a period of 2 to 3 years. All these type cases wind up coming back to the main IRS enforcement computer.
Ways of permanent tax resolution
The ways of permanently resolving your debt are either through a:
1.bankruptcy proceeding,
2. the statute of limitations expiring or
3. the settling of your case through an offer in compromise or a tax debt settlement.
Hiring a local solid tax debt attorney firm can assure that you can resolve your case for the lowest amount of money in the least amount of pain to the client.
This article will only deal with the offer in compromise to relieve yourself of the IRS tax debt.
Tax Debt Settlements
Experienced tax attorneys and tax firms can help assure that you will settle your tax debt with the Internal Revenue Service for the lowest dollar allowed by law. It also should be known that there are specific formulas that dictate the IRS tax settlement policy.
It is in your best interest to be very truthful before submitting a tax debt settlement called and offer in compromise.
IRS will require a detailed financial statement with all supporting documentation including all bank records and verification of all income and expenses for the last year.
The normal IRS investigation of a offer in compromise can take any place between 15 and 40 hours.
The Internal Revenue Service conducts a thorough search which will include searches of Google, credit reports, and all licenses to confirm the thoroughness of your financial statement. IRS has their own internal search engines to conduct asset searches on all taxpayers that owe back taxes debt.
Tax Debt Attorney Facts
1. The Internal Revenue Service receives about 60,000 offers in compromise each year.
2. About 38% of those offers are accepted by the Internal Revenue Service.
3. The average settlement on a dollar is $.14.
4. If you are going to file for tax debt relief with the Internal Revenue Service you need to be patient. The average wait time to settle your case with the IRS is between six months to a year.
The Offer in Compromise, the IRS Settlement process
Within the last two years the Internal Revenue Service has come out with a new program or initiative called the fresh start. And in case you’re thinking it is not named after our tax firm.
It has allowed taxpayers struggling with old tax debt to permanently deal with the Internal Revenue Service and completely eliminate their tax debt for pennies on the dollar.
Before taxpayers goes running off to settle their IRS debt the taxpayer must make sure that they are a suitable and qualified candidate for the offer in compromise program.
Warning to taxpayers
As a warning to taxpayers, searching the Internet for tax companies to do this work I would caution you to make sure you are giving your work to a professional tax company. Most Internet sites that you see do not use qualified tax professionals to deal with your IRS tax debt. As a matter of fact, many sites that you see on the Internet are lead generation sites and literally sell your information to third-party buyers.
They use semi-qualified people were more interested in generating fees in settling your tax debt.
Before hiring a tax that firm check on the qualifications of the professional that we will be working your particular case.
Ask that person many questions.
You will get a good solid gut feeling on whether you should hire that person or that firm. You should also check on the BBB rating as well as asking for similar results on a case that is similar to yours.
Pre-Qualifer Tool for Tax Debt
To make sure that you do not fall victim for some of these companies, the Internal Revenue Service has now a pre-qualifier tool that you can use before you submit your offer in compromise to settle your tax debt with the IRS.
You will find that pre-qualifier tool right on our website.
I would urge all taxpayers before paying a dime to any tax firm to walk themselves through this very simple process to make sure they are qualified for an IRS tax debt settlement called the offer in compromise.
What dollar amount is IRS looking for to settle, there is a very specific formula
The Internal Revenue Service is interested in two main things things, your assets in your income.The basic settlement formula is this: IRS wants the sum total of the liquidation value of your assets plus a times 12 value of your monthly income over and above the monthly allowable expenses. By calling us directly we can figure out the amount required to satisfy the Internal Revenue Service.
IRS has specific formulas to deal with the taxpayer’s income and the liquidation of certain assets to come up with a fair settlement amount for the offer in compromise to settle a tax that.
We at Fresh Start Tax llc will pre-qualify your offer in compromise and make sure that you are a quality candidate for the tax debt settlement call the offer of compromise.
Contact us today for free initial tax consultation and we walk you through this program. Yes we will give you free tax advice to make sure you’re qualified for the program.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS mainly consider your unique set of facts and circumstances:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
The IRS generally approves an offer in compromise when the amount offered represents the most the IRS can expect to collect within a reasonable period of time.
Explore all other payment options before submitting an offer in compromise.
The Offer in Compromise program is not for everyone.
If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
Make sure you are eligible for a Tax Debt Reduction
Before the IRS can consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding. Use the Offer in Compromise Pre-Qualifier on the fresh start tax llc to confirm your eligibility and prepare a preliminary proposal.
Submitting your offer to the IRS
Your completed offer package will include:
1. Form 433-A (OIC) (individuals) or
2. 433-B (OIC) (businesses) and all required documentation as specified on the forms;
Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate
3. Form 656;
4. $150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a payment option for the Tax Debt for the OIC
If you owe the money there are basically two choices.
Your initial payment will vary based on your offer and the payment option you choose:
1. Lump Sum Cash: 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.
2. 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 .
Understanding the Tax Debt process with the IRS
While your offer is being evaluated:
1. Your non-refundable payments and fees will be applied to the tax liability ,y ou may designate payments to a specific tax year and tax debt;
2. A Notice of Federal Tax Lien may be filed; Do everything in your power to make sure the federal tax lien is not filed,
3. Other collection activities such as tax levies and wage levies may be suspended;
4. The legal assessment and collection period is extended from the normal 10 years;
5. Make sure you make all required payments associated with your offer in compromise;
6. You are not required to make payments on an existing installment agreement or payment agreement program; and
7. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date. If this happens by a lottery ticket.
As a former IRS agent and teaching instructor I cannot tell you how important it is to make sure you get competent tax help in dealing with your back tax debt.
We at Fresh Start Tax are comprised of tax debt attorneys, certified public accountants, former IRS agents, managers and tax instructors.
We have worked out of the local South Florida IRS offices for over 60 years.
We are some of South Florida, Fort Lauderdale, and Miami top experts for tax debt attorney help.
