IRS Tax Problems – Tax Problem Settlements, Negotiations  – Former IRS Agents  1-866-700-1040

 
Contact us today and speak directly to tax attorneys, certified public accountants or former IRS agents, managers and tax instructors.
We have over 206 years of professional tax experience in over 60 years of working directly for the Internal Revenue Service and the local, district, and regional offices of the Internal Revenue Service.
On staff are former IRS agents who worked the offer in compromise or IRS tax debt settlement program. We are experienced both at the agent level and at the Appellate Division level as well.
We also taught tax law at the IRS and are true experts in IRS tax problem settlements.
If you have any type of IRS tax problem and are considering some sort of settlement call us today for a free evaluation and consultation to hear the different tax auction and remedies on how to completely and permanently resolve your IRS tax problem.  We are some of the most skilled IRS tax problem settlement and negotiation tax specialists nationwide.
  The new IRS fresh start initiative.
The new program relates to penalty relief, installment agreements, and offers in compromise.
I would like to say it was named after our firm however we cannot take kudos for the name of the new IRS program.
The Internal Revenue Service  announced a major expansion of its “Fresh Start” initiative to help struggling taxpayers by taking steps to provide new penalty relief to the unemployed and making Installment Agreements available to more people.
The IRS is doubling the dollar threshold for taxpayers eligible for Installment Agreements to help more people qualify for the program.
1. Tax Penalty Relief
The IRS announced plans for new penalty relief for the unemployed on failure-to-pay penalties, which are one of the biggest factors a financially distressed taxpayer faces on a tax bill.
To assist those most in need, a six-month grace period on failure-to-pay penalties will be made available to certain wage earners and self-employed individuals. The request for an extension of time to pay will result in relief from the failure to pay penalty for tax year 2011 only if the tax, interest and any other penalties are fully paid by Oct. 15, 2012.
The penalty relief will be available to two categories of taxpayers:
Taxpayers who are wage earners who have been unemployed at least 30 consecutive days during 2011 or in 2012 up to the April 17 deadline for filing a federal tax return this year.
Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2011 due to the economy.
This penalty relief is subject to income limits.
A taxpayer’s income must not exceed $200,000 if he or she files as married filing jointly or not exceed $100,000 if he or she files as single or head of household.
This  tax penalty relief is also restricted to taxpayers whose calendar year 2011 balance due does not exceed $50,000.
Taxpayers meeting the eligibility criteria will need to complete a new Form 1127A to seek the 2011 penalty relief.
The failure-to-pay penalty is generally half of 1 percent per month with an upper limit of 25 percent. Under this new relief, taxpayers can avoid that penalty until Oct. 15, 2012, which is six months beyond this year’s filing deadline.
However, the IRS is still legally required to charge interest on unpaid back taxes and does not have the authority to waive this charge, which is currently 3 percent on an annual basis.
Even with the new penalty relief becoming available, the IRS strongly encourages taxpayers to file their returns on time by April 17 or file for an extension. Failure-to-file penalties applied to unpaid taxes remain in effect and are generally 5 percent per month, also with a 25 percent cap.
2. The new IRS Installment Agreements  Program.
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
The new threshold
Effective immediately, the threshold for using an installment agreement without having to supply the IRS with a financial statement has been raised from $25,000 to $50,000.
This is a significant reduction in taxpayer burden. I cannot tell you how important this is an helping struggling taxpayers. In the past every taxpayer owing money to the Internal Revenue Service would have to fill out a significant financial statement just to get an IRS payment agreement or installment agreement. Now with this new program it allows taxpayers to set up agreements without a voluminous amount of paperwork and financial statements. This is a huge win for taxpayers.
Taxpayers who owe up to $50,000 in back taxes will now be able to enter into a streamlined agreement with the IRS that stretches the payment out over a series of months or years.
The maximum term for streamlined installment agreements has also been raised to 72 months from the current 60-month maximum.  Yes. this allows taxpayers to pay their bill over a full six years.
If you owe over $50,000:
Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F).
Taxpayers may also pay down their balance due to $50,000 or less to take advantage of this payment option.
An installment agreement is an option for those who cannot pay their entire tax bills by the due date. Penalties are reduced, although interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, a taxpayer must agree to monthly direct debit payments.
Call us today and let us set up your installment repayment plan with the Internal Revenue Service. 1-866-700-1040.
3. Offers in Compromise  or the IRS Tax Debt Settlement program
Under the first round of Fresh Start, the IRS expanded a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers. 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.
The IRS has more flexibility with financial analysis for determining reasonable collection potential for distressed taxpayers.
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.
Call us today for free tax evaluation on your case.
We can go over every tax option you have and get you the best possible deal with the Internal Revenue Service. Let us go ahead and permanently resolve your IRS tax problem by settlement and negotiation.
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IRS Tax Problem, Tax Problems Settlement & Negotiations – Former IRS Agents