Over 42% of all taxpayers who try to settle their debt through the offer in compromise program were accepted by the Internal Revenue Service. They settled their debt for pennies on the dollar.
Before you go off trying to set settle your debt for pennies on a dollar there is a very specific pre-qualifier tool that you should walk shoot through to make sure you are an eligible candidate for the settlement.
When you call our office today we will review your case and give you a free initial tax consultation.
Do you want to settle for “pennies on a dollar”. Call Fresh Start Tax 1-866-700-1040.
We are former IRS Agents who have processed hundreds of these cases and actually worked the taught the Offer in Compromise program while employed at the IRS.
We are the highest rated BBB company. We are tax experts in this field.
Before saying YES, lets file an offer, Fresh Start Tax reviews each case to make sure you qualify for the program.
There are other options available in case the Offer in Compromise program is not for you.
What You Must Know Before You File an Offer in Compromise
What is an Offer In Compromise?
1 . Do You Qualify for an Offer in Compromise?
2. How to File an Offer in Compromise
All Taxpayers Do Not Qualify for an Offer in Compromise. Check with us first. Pay no one unless you know you qualify
Absent special circumstances, if you have the ability to fully pay your tax liability in a lump sum or via an installment agreement, an offer in compromise will not be accepted by IRS
Offer in Compromise Payments are Non-refundable
The IRS considers the 20 percent payment for a lump sum offer and any periodic payments as “payments on tax” and are not refundable, regardless of whether the offer is declared not-processable or is later returned, withdrawn, rejected or terminated by the IRS.
Most offers require a deposit of 20% of the offered amount.
Federal Tax Liens are Not Released until the Offer in Compromise is fully satisfied.
If there is a Notice of Federal Tax Lien on record prior to acceptance of the offer, the lien is not released until the OIC terms are satisfied or until the liability is paid, whichever comes first. A Notice of Federal Tax Lien may be filed during the course of the OIC investigation.Most of the time, the Federal Tax Lien has already been filed.
Refunds on tax returns
The IRS will keep any refund, including interest due, because of a overpayment of any tax or other liability, for tax periods extending through the calendar year the IRS accepts the OIC.
There is one exception to this rule: Offers submitted under the basis of doubt as to liability do not qualify here.
Federal Tax Levies 668A, 688W
The IRS will keep all payments and credits made, received or applied to the total original tax liability before the OIC was submitted. The IRS may also keep any proceeds from a levy that was served prior to the submission of an OIC, but which were not received at the time the OIC was submitted.
Statutory Period for Collection Suspended
The statutory period for collection is suspended during the period that the OIC is under consideration and is further suspended if the Offer in Compromise is rejected by the IRS and you appeal the rejection.
Five Year Compliance is mandatory if IRS accepts the Offer.
If your offer is accepted, you must timely file all tax returns and timely pay all tax for five years or until the offered amount is paid in full, whichever period is longer. Failure to adhere to these terms will result in default of the offer and the IRS may then collect the amounts originally owed plus penalties and interest.
OIC Payment and Application Fee Exceptions Application Fee maybe waived
If you qualify for a low-income exception waiver or you submit a doubt as to liability offer you are exempt from the $150 application fee and any OIC payments due upon submission of the OIC or during the course of the investigation. The low-income waiver does not apply to businesses.
Appeal any rejection
If your OIC is rejected, you will have the opportunity to file an appeal which will be heard by the IRS Office of Appeals. There are no appeal rights associated with offers that are returned, withdrawn or terminated.
Approved Installment Agreement
If you have an approved installment agreement and submit a periodic payment offer, you are not required to continue to make the installment agreement payments while the offer is being investigated. You will, however, be required to make the OIC periodic payments as they become due.
Offers open to Public Inspection
The law requires the IRS to make certain information from accepted Offers in Compromise available for public inspection and review.
These public inspection file locations are located in designated IRS Area Offices.
The Plantation IRS Office is one of these areas.
