How to Settle your Tax Debt – Pennies on a Dollar – Former IRS Settlement Officer
Let me first say that you can settle your tax debt for pennies on the dollar if you qualify and meet the standards for offer in compromise program.
The statistics for this past year has shown that 38% of all offers in compromise filed with the Internal Revenue Service are excepted.
IRS receives around 50,000 offers in compromise per year. From what I’ve been told by IRS agents who have worked the offer compromise tax settlement program this year, that the average settlement is $.14 on the dollar.
Not everybody is a qualified candidate for a tax Settlement.
You can settle your tax debt for pennies on a dollar but you must meet very specific criteria. The offer program and settling your tax debt program is not for everyone.
I should know. I am the former IRS agent in teaching instructor and taught the IRS offer in compromise program while employed by the Internal Revenue Service.
There are strict standards to get your offer in compromise accepted by the Internal Revenue Service to settle your tax debt.
Before you go running off paying a tax firm or Internet company to settle your debt for pennies on a dollar you must be completely aware of the standard that IRS has for settlement.
The standard for acceptance is simply this, you must give IRS the total value of all your assets plus the Internal Revenue Service will compare your monthly income and expenses against the regional, national income and expense standards. If there is any money left over at the end of the month they use a 12 multiplier. IRS simply adds up the total value of all your assets plus the 12 multiplier figure and that is the sum total of your offer in compromise.
The Internal Revenue Service will not accept anything less.
You will find that the IRS has a pre-qualifier tool and you can find on our website.
You can  contact us today to find out if you qualify for an offer in compromise. We will not take any money on any  client unless we feel they are qualified to file an offer in compromise.
Before you choose a  firm to settle your IRS tax debt make sure you check the Better Business Bureau rating, ask to speak directly to the person working your case, and make sure they have qualified tax professionals on staff.
I would make sure on staff you will find either a tax attorney, certified public accountant, enrolled agent, or former IRS agent that you can speak directly to.
Do not just give all your information to a sales agent which most firms employ.
 
The IRS Offer in Compromise/ Settle your Tax Debt
 
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.
The IRS will consider your unique set of facts and circumstances:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
The IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
The IRS will 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
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.
 
 
Submit your offer Tax Debt Settlement Offer
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 Form 656;
3. $150 application fee (non-refundable); and
4.  Initial payment (non-refundable) for each Form 656.
 
Select a payment option for the IRS
 
Your initial payment will vary based on your offer and the payment option you choose:
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.
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.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package for details.
 
 
Understand the process to Settle your tax debt
While your offer is being evaluated:

• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);

• A Notice of Federal Tax Lien may be filed;

• Other collection activities are suspended;

• The legal assessment and collection period is extended;

• Make all required payments associated with your offer;

• You are not required to make payments on an existing installment agreement; and

• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

 
Contact us today for free initial tax consultation and find out whether you are a qualified candidate for the IRS offer in compromise program otherwise known as IRS settlements.
We have over 60 years of direct work experience with the Internal Revenue Service in the local, district, and regional tax offices of the IRS.
On staff is a former IRS settlement officer who not only worked the IRS offer in compromise program but also for taught the program to new IRS agents.
We are true experts for the tax debt settlement program.
 
How to Settle your Tax Debt – Pennies on a Dollar – Former IRS Settlement Officer