Settle your Tax Debt for Pennies on a Dollar
You should know that it is very possible to settle your tax debt for pennies on a dollar but you must qualify for the tax debt settlement program called the offer in compromise.
The IRS statistics for this past year has shown that 38% of all offers in compromise/ tax debt settlement filed with the Internal Revenue Service are excepted.
Most of the offers in compromise that are not accepted never should’ve been filed or were not filed by qualified professionals. It is critical you know the program before you make an attempt to settle your tax debt.
IRS receives around 48,000 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. That is a statistical average.
Every case that is worked by the IRS is based on its own merit and its own set of facts.
Not everybody is a qualified candidate for a tax debt settlement program.
You can settle your tax debt for pennies on a dollar but you must meet very specific criteria.
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. Call us today for no cost  and we will review your specific situation.
The standard for acceptance of a tax debt 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. That is why  timing is important before filing an offer in compromise to settle your tax debt. You want to know the positives and the negatives about your case.
To make sure taxpayers know about offers in compromise or the tax debt settlement program IRS last year came out with the pre-qualifier tool so taxpayers do not get ripped off by Internet companies who claim everybody can settle their case  for pennies on the dollar.
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. We can usually make that determination within a five-minute period time.
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. Also you should ask them based on a similar set of facts what results were received or gotten.
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. Most firms employ sales closers to qualify taxpayers to make sure they can pay the company before they even file the offer.
The reality should be that they carefully review your case and let you know your chances of success. Do not get sucked up into a company that will not review your financial statement first and let you know your chances of success.
 
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  and everyone’s case is different. IRS will take into account your:
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  to settle your tax debt
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.
 
Submitting  your offer Tax Debt Settlement Offer  to the Internal Revenue Service
 
Your completed offer  in compromise tax debt settlement 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.
 
Selecting a payment option for the IRS to settle your tax debt
 
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.
 
Understanding the process to Settle your tax debt with a offer in compromise
 
While your offer  in compromise 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.
We are a Florida tax from practicing in the state since 1982.
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.
 
 
 Settle your Tax Debt – Pennies on a Dollar – Former IRS Settlement Officer