With the new Fresh Start Program offered by the Internal Revenue Service the IRS will find itself flooded with hoards of new offers in compromise also called tax debt settlements so taxpayers can reduce and settle their tax debt with the IRS.
This new program will offer literally thousands of taxpayers a way out that was never afforded to them before.
The old program offered little in the way of a tax settlement. About 15,000 thousand cases were accepted each year out of the 55,000 offers in compromise filed.
I would expect that number of offers in compromise to triple this year. IRS will not have the manpower to keep up with the demand of the new offer in compromise settlements.
The main components of the new Offer in Compromise
The IRS looks at two major aspects;
1.Income and
2. Assets, they care little on your debt situation. Some rules have loosen and each case is based on it own merit.
IRS will investigate four major issues to accept your offer in compromise
The four components of collectibility:
1.net equity in assets,
2.present and future income,
3.amounts collectible from third parties,
4. and amounts available to the taxpayer but beyond the reach of the IRS)
IRS will determine the total asset value of all assets and what is called reasonable collection potential in regards to your present income.IRS adds the two together and comes up with a settlement proposal.
After the IRS reviews your 433 OIC and your 656 the IRS will assign a detailed evaluation of the case and send to you a proposed settlement based on the offer in compromise you turned in along with the financial statement that you provided.
You can have former IRS agents and managers pre-qualify your offer in compromise or your tax debt settlement.
We will provide a free analysis so your do not get ripped off by other tax resolution companies.
You will have Former IRS Agents who were offer in compromise specialists give you a detailed review of the your offer in compromise before it is sent in.
Get free advice on your tax debt settlement.
Call us today for free tax consult. 1-866-700-1040
