by Fresh Start Tax | Oct 10, 2018 | Tax Help
The Truth about the Offer in Compromise, Former IRS Agent, Michael D. Sullivan
Being a former IRS agent and teaching instructor of the offer in compromise there are so many myths about the program it’s hard to keep up with.
MYTH
The majority of calls that I get or from taxpayers that believe that IRS is going to settle their tax debt because of the ads they see on TV the Internet and various marketing techniques.
While the offer in compromise is a true program offered by the Internal Revenue Service, approximately 32,000 Americans get their offers in compromise approved by Internal Revenue Service because they are true qualified candidates for the program. The majority do not get accepted.
The average settlement is $6500 per case in approximately 32% of all offers in compromise are accepted by the Internal Revenue Service.
Unfortunately there are many IRS debt settlement companies that take cases, make promises and their clients offer have no chance of going through the IRS system to settle their tax debt.
Many of these companies charge thousands of dollars and I hear all the stories as people call me after other companies have failed to perform. I warn any taxpayer who wants to hire a company to speak to the person who will be working their case before giving their money to any IRS debt settlement company. You should find out how many offers they have worked and get a gut feeling about what you think their level of expertise is. I would also suggest that you speak to somebody who’s worked for the Internal Revenue Service and knows the program inside and out.
Everybody should know that the Internal Revenue Service has an offer and compromise pre-qualifier tool and if they do not call a professional company they should walk through the pre-qualifier tool on IRS.gov.
So how does the offer in compromise get process through the Internal Revenue Service.
First of all, a reviewer looks at the offer to make sure the offer can be referred to a revenue officer. The offer in compromise must from a technical standpoint be filled out completely have all signatures and all key elements of the 656 in place.
The reviewer then pulls up a transcript to make sure all the tax returns have been filed. If the offer in compromise is not filled out correctly all tax returns not filed, the reviewer sends it back to the taxpayer.
Once it passes the test of the reviewer, the offer is then passed on to a revenue officer specialist who has been trained by the Internal Revenue Service what to look for and what can be accepted by the Department of treasury.
KEEP IN MIND
The offer in compromise is a binding contract or covenant between the Department of treasury and the taxpayer and is a true legal settlement and document.
Once the revenue officer who is the offer in compromise specialist looks at the financial statement that person will get a general sense of how they feel about the offer in compromise.
A GOOD OFFER TIP
Put a letter or an accompaniment document letting the reviewer know from the beginning why your client or taxpayer needs to have this offer accepted and any extenuating circumstances that may exist.
BIG OFFER TIP
It puts a idea in the mind of the revenue officer of the desperate situation that the taxpayer is going through. The reason this is important is that the revenue officer is only looking at a piece of paper is removed from the reality of the taxpayer.
The job of a true practitioner is to help your client.
So you must make the situation real to the Internal Revenue Service as to understand the effects of the burden of the tax liability.
As a former IRS agent revenue officer I would look at the offer, glanced through, it look at the numbers, look at the written statement and kinda have a feeling about the offer in compromise. It is very important for that initial review to ge well, the IRS offer specialist feel good about working the offer in compromise, it sets the tone.
Please keep in mind it is much easier for a revenue officer offer in compromise specialist to reject the offer in compromise because there is a lot of process work and due diligence that a person must do to accept the offer in compromise.
Not only do you as a revenue officer have to approve the offer but so does your manager, the regional manager and so does the district council of Internal Revenue Service for legal purposes.
Many people ask why this process is so extensive and why so much time is spent.
The answer is quite simple, all offers in compromise that are accepted by the Internal Revenue Service are open to public review for one year at certain regional tax offices so the public can review offers in compromise and see which cases IRS accepts and which cases they do not.
So you can expect the Internal Revenue Service to be very cautious and more importantly use the same standard to accept every single offer in compromise. Appearance is very important to the Internal Revenue Service
Once the revenue officer starts looking at the financial statement they pay a lot of time to three main things:
1. the assets,
2. the income, and,
3. the expenses claimed by the taxpayer.
ASSETS.
The revenue officer wants to make sure that they’re getting their full liquidated value as part of the basis for settlement to Internal Revenue Service.
IRS will discount your residence approximately 20% but IRS generally will never settle for less than full liquidation value of the assets of any taxpayer and/or business.
Also keep in mind assets includes IRAs, pensions, stocks, and values of businesses that the taxpayer may own.
Next the revenue officer will move on to the expenses claimed against income.
The revenue officer will compare the national, regional, and geographical standards of the cost-of-living are in every region of the United States and compare that to the income.
The IRS’s job is to make sure that the taxpayer is living well within their means before they will accept an offer in compromise.
The goal of the Internal Revenue Service is to make sure the taxpayer has to borrow money from third-party to pay the offer in compromise and to settle their tax debt. Any money in possession of the taxpayer in any savings account or checking account generally must be included in the offer in compromise.
( please keep in mind that exceptions exist in certain cases.)
Once the revenue officer is pretty certain that this is a doable or acceptable offer, it puts the offer through a series of financial tests to make sure the documentation on the financial statement is correct.
The IRS agent will spend approximately 20 to 40 hours to work an offer in compromise.
The Agent will do Google searches to check businesses and an individual’s name to find out if there are assets, it will use the accurate search engine to look for back assets, it will pull DMV records, pull courthouse records, and will use other search engines to make sure that this offer can be acceptable by the Internal Revenue Service.’s
One of the great sources that IRS can use is a credit report.
There is a plethora of information on a credit report and on large cases the revenue officer can and will pull a credit report up.
After the revenue officer is convinced this is a doable offer they will package up the case and send it to the manager for review and acceptance .
ANOTHER BONUS TIP
A taxpayer can file as many offers in compromise as they wish. Many times if an offer in compromise is rejected the first time the taxpayer should find out why the offer was rejected fix the errors or problems and resubmit the offer in compromise after a period of time when the problems and issues from the first offer have been resolved. learn your lessons from the first rejection and make them successful the second time around.
What to Do if the Offer is not accepted.
Keep fighting, do not give up!
In almost all cases we send an appeal and to get it to a third party who is not connected with the collection division.
We love the sending cases to and appellate officer who was a better and more balanced person to accept the offer in compromise.
If you have any question about your case or like us to review your offer in compromise or process it call us today for a free initial tax consultation.
You will hear the truth about the offer in compromise.
While there is so much more that I could write and can be included in this short blog these are the basic overviews of the IRS offer in compromise.
Please keep in mind I was a former IRS revenue officer teacher and instructor of the offer in compromise.
by Fresh Start Tax | Oct 9, 2018 | Tax Help
We are a local tax firm that specializes in unpaid back tax help, hear all your options and find out the truth, since 1982, 954-492-0088
If you have unpaid back taxes and you need true affordable professional help call us today. Since 1982 resolving thousands of taxpayer cases.
If you have unpaid back taxes with the Internal Revenue Service and the tax help your various options you have to seek IRS debt relief.
Process:
Before you settle with the Internal Revenue Service they would like to see a current financial statement on IRS form 433a. this is the only version of a financial statement the internal revenue will accept, sometimes they accept a 433F.
After a careful review of your current financial statement and the confirming documents you will submit which will include pay stubs in the last three months bank statements, IRS generally have three buckets of closing your open IRS collection case and settling your tax debt with the Internal Revenue Service. Please keep in mind that IRS will verify everything on your current financial statement.
General methods of closing after that review of your current financial statement IRS will include either placing you into a currently not collectible hardship situation, ask you for a monthly payment agreement or you could possibly qualify for an offer in compromise.
After review of your current financial statement we will make recommendations about the quickest, most affordable way to settle your debt with the Internal Revenue Service.
We have settled thousands of cases. We know the ins and outs of the IRS system.
Thousands of people who are seeking IRS tax debt relief for unpaid taxes have not filed back tax returns and many of them have not filed for years.
Here’s a special note of interest for those people who have not filed back taxes.
MORE THAN 6 YEARS, SPECIAL NOTE:
Some of the things that you need to know from former IRS agents
Being a former IRS and being in the tax resolution business for over 40 years, this is a question that I have been asked hundreds and hundreds of times by taxpayers who have not filed multiple back tax years.
If you need any help in this area contact us today for free initial tax consultation and speak to former IRS agents.
We can file all your back tax returns and workout effective tax settlement. We know all the IRS systems for immediate and permanent IRS tax relief.
IRS Policy Statement 5-133
Delinquent returns—enforcement of filing requirements
Taxpayers failing to file tax returns due will be requested to prepare and file all such returns except in instances where there is an indication that the taxpayer’s failure to file the required return or returns was willful or if there is any other indication of fraud.
All delinquent returns submitted by a taxpayer, whether upon his/her own initiative or at the request of a Service representative, will be accepted.
However, if indications of wilfulness or fraud exist, the special procedures for handling such returns must be followed.
Where it is determined that required returns have not been filed, the extent to which compliance for prior years will be enforced will be determined by reference to factors ensuring compliance and evenhanded administration of staffing and other Service resources.
Factors to be taken into account include, but are not limited to:
prior history of noncompliance,
existence of income from illegal sources,
effect upon voluntary compliance, anticipated revenue, and
collectibility, in relation to the time and effort required to determine tax due.
consideration will also be given any special circumstances existing in the case of a particular taxpayer, class of taxpayer, or industry, or which may be peculiar to the class of tax involved.
Normally, application of the above criteria will result in enforcement of delinquency procedures for not more than six (6) years.
Enforcement beyond such period will not be undertaken without prior managerial approval.
Also, if delinquency procedures are not to be enforced for the full six-year period of delinquency, prior managerial approval must be secured.
PLEASE BEWARE, IRS CAN FILE FOR YOU.
When IRS files your tax return you will pay the highest amount allowed by law.
26 U.S. Code § 6020 – Returns prepared for or executed by Secretary
(a) Preparation of return by Secretary
If any person shall fail to make a return required by this title or by regulations prescribed thereunder, but shall consent to disclose all information necessary for the preparation thereof, then, and in that case, the Secretary may prepare such return, which, being signed by such person, may be received by the Secretary as the return of such person.
(b) Execution of return by Secretary
(1) Authority of Secretary to execute return
If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefore, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.
(2) Status of returns
Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes
When IRS prepares these tax returns they will allow you single with no exemptions dependence or deductions. You will pay the highest amount allowed by law.
You can undo this process by filing an original tax return in reducing your tax liability.
Don’t be afraid to file your back tax returns.
At some point in time IRS is going to catch up with you and most often it is better for you to contact them before they contact you.
As a former IRS agent you will find that IRS has little mercy on those who have purposely been avoiding filing and paying back taxes.
Contact us today and we can get you back in the system worry free.
So if you have any unfiled, back, delinquent tax returns call us today because we know the system. We are true IRS experts in this matter.
A side note, IRS keeps all records on file for six years. They have IRS source documentation to be able to show all 1099 and W-2 income from third-party sources.
You should also know that IRS can reconstruct your tax returns based on knowing where you lived and how much rent you paid.
Call us today for free initial tax consultation and we will walk through the process if you have unpaid back taxes and need to seek different IRS tax debt options.
Unpaid Back Tax Help + Pay Back IRS Taxes + IRS Help on Debt Relief Options + Miami, Ft.Lauderdale, Boca Raton, Aventura, Palm Beaches + South Florida
by Fresh Start Tax | Sep 19, 2018 | Tax Help
We are an AFFORDABLE LOCAL tax firm that specializes in IRS tax problems, Since 1982. We can help file all back tax returns and get you back in the system worry free.
We also worked as managers, supervisors and teaching instructors. We know all the systems. CALL 1-866-700-1040. Let our experience work for you.
Not only did we work in the above aforementioned positions, we were also on-the-job trainers for new IRS employees.
HEAR THE TRUTH ABOUT HOW IRS WILL HANDLE YOUR CASE FROM FORMER IRS AGENTS.
We know all the IRS systems inside and out we have worked both sides of any IRS problem and know the protocols and methodologies to resolve any IRS matter.
If you have not filed Back Tax Returns, you are not alone the tax gap is $450 billion.
The tax gap is a figure issue on taxes that should-be been collected if all tax returns were filed.
IRS is working hard to make sure all those with Unfiled tax returns are back in the system. The IRS CADE 2 computer us working hard to close the tax gap which is currently $500 billion.
Also, please keep in mind if you don’t file your back tax returns IRS has the option of filing your tax return under 6020 B of the IRC. IRS will do you no favors in filing, you will pay the highest amount allowed by law.
Filing back tax returns is not an issue for our firm. We have prepared thousands of back tax returns with or without tax records.
There is a very systematic way to do this and it is called income tax reconstruction.
We take the methodologies learned at Internal Revenue Service and apply the best practice standards to go ahead and prepare your back tax return and make sure you pay the lowest amount allowed by law.
If you are going to owe money as result of your tax filing we can settle your tax debt as well.
On cases where taxpayers have received notices, we send IRS a power of attorney so you will never have to speak to IRS and we handle all the correspondence.
From there we go ahead and start the preparation of our tax return process by pulling IRS transcripts and any available records. From there, we submit the tax returns to IRS at the same time work out a remedy or solution if you’re go to owe back tax debt.
It is important for every taxpayer to know that if they are in a position where they haven’t filed back taxes that they start making estimate tax payments or creased or withholding to cover their new IRS tax debt. Internal Revenue Service wants to make sure future compliance is not an issue.
IRS Tax Debt Settlements, I am a former IRS agent and teaching instructors of the offer in compromise.
If you need to settle your tax debt with Internal Revenue Service, as a general IRS will want to current financial statement to make a determination.
You will need to do that on the IRS form 433A or 433F.
IRS will close your case by either issuing you went into:
1.currently not collectible file (hardship) or ,
2. ask you for a monthly payment.
Many taxpayers are eligible for the offer in compromise program to settle their debt for pennies on the dollar.
Last year over 38,000 taxpayers settle their tax debt for an average of $6500 per case. Keep in mind that is just an average national average in your case is completely dependent on your current financial statement.
Before you file for offer in compromise it is wise to fill out the IRS pre-qualifier tool to make sure you were a viable candidate and don’t waste any money.
When you call our office we will be review with you the various examinations you have to completely and permanently remedy all your IRS tax problems once and for all.
If the IRS has filed a federal tax lien against you, when you call our office we will go over the different ways you may be able to release your federal tax lien.
The federal tax lien will stay on your record for 10 years from the date of assessment unless an offer in compromise was accepted or you got into an IRS payment agreement that met the qualifications.
We are a full-service firm that specializes in IRS tax relief. With over 206 years of professional tax experience and over 65 years of combined work experience.
If you need to file tax returns, need an IRS tax settlement , need to work a payment plan, or if your experience a IRS tax hardship or need to get IRS levies and tax liens released call us today.
Call us today for a free initial tax consultation. 1-866-700-1040
When you call our office you will speak to a true IRS tax professional .
Since 1982 we have been solving IRS problems.
Help Filing Back Taxes + File Tax Returns + IRS Settlements + Ft.Lauderdale, Miami, Boca Raton, Aventura, Palm Beaches, South Florida
by Fresh Start Tax | Sep 17, 2018 | Tax Help
We are one of the nation’s premier IRS tax relief firms. We are staffed with former IRS agents, managers and teaching instructors. We are a local tax firm located right here in South Florida.
We will review with you the various examinations to help, get rid of, relieve or eliminate you of your current IRS tax debt in obligation. You may call us by phone or come in and visit our South Florida IRS office.
We can file all back taxes as well. All tax returns must be filed before IRS will close your case.
There is a very exacting process to eliminate your IRS problem and we know the system.
Call today and hear the truth from former IRS Agents. We worked out of the IRS offices.
We will walk through all the programs to see what programs you qualify.
We are an Affordable professional tax firm that can offer you a free initial tax consultation and walk you through the process if you have a back balance due the Internal Revenue Service.
If you have balance due on back taxes and are looking to set up a payment agreement, file firm offer in compromise to settle your back tax debt or you need to file back tax returns, call us today for a free initial tax consultation.
We are an Affordable IRS tax relief firm and settlement agency .
We have over 95 years of direct IRS work experience.
FST IRS Experience:
We have worked out of the local, district, and regional tax offices of the Internal Revenue Service. We are true IRS Experts in the area of IRS tax settlement services.
We have over 206 years of professional tax experience and over 95 years of working directly for the Internal Revenue Service we are true tax Experts that understand all the methodologies to resolve your IRS problem.
How does IRS dispose of Tax Debt Cases?
The 5 ways or programs for IRS Tax Debt
1. By Payment in full,
2. By monthly Payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (this is how your completely eliminate the tax debt)
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
Upon your initial free tax consultation we will walk through the various programs and let you know the easiest way to resolve your back tax debt.
The most important aspect of working tax debt cases is completely dependent on the individual or business financial statements.It is the most important factor.
Your current documented financial statement determines all.
IRS uses a very simple formula to determine their settlement process. When you call our office we will explain the process and the system to you.
It is all about your assets and your income and your current necessary living expenses. There is a very specific formula.
IRS only allows certain expenses that are considered necessary living expenses. For more, you can look to the necessary standards used by the Internal Revenue Service.
There are charts available on what IRS allows. Anything not on those charts are disallowed and this is what trips out most taxpayers.
A simple review of your current financial statement and we can let you know the different programs you may be eligible for.
You will need to complete form 433F or form 433A for us to make a current determination. IRS will only use their financial statements.
It is critically important to know that you cannot pay less taxes unless you qualify for the offer in compromise program.
IRS has a very specific formula that they use to compute the offer in compromise. They can be found on our website.
The only way you can pay less tax is through the offer in compromise program. There is also an IRS pre-qualifier form.
I have over 40 years in this industry and it is critical if you want to settle your tax debt for the lowest possible amount you should go to true tax professionals.
Important information from the IRS
All your tax returns will have to be filed before IRS will work your offer in compromise. IRS is not allowed to close any case unless all tax returns are filed and you are on full withholding or making current estimate tax payments.
If you need help with your tax preparation call us and we can have a staff of Experts accountants and tax preparers complete all returns with or without records. Our former IRS agents are experts in IRS tax reconstruction of any individual or business, corporate tax returns. Our experience is invaluable to you and will be your best friend.
Also beware that many times the Internal Revenue Service want to make sure you are current in your withholding tax or your estimate tax payments are they will not close your work your case until you become fully compliant.
Beware of IRS tax settlement services companies. Many have checkered pasts.
We have been in this industry a long time there are many good companies in as many bad tax settlement service companies. For you to evaluate in IRS tax settlement service company you must ask to speak directly to the person who will be working your case.
Generally, when you call a tax services company, you are speaking to what is called a closer. That person is a salesman and will actually bill you and charge you for the services then your case gets passed down the line.
When you call fresh start tax, you will speak directly to the person who works your case and that person can give you a true evaluation on how and if IRS will accept an IRS tax settlement .
All IRS tax settlement service firms and companies are different.
Check out the BBB rating and make sure you have a true tax professional working your case.
I suggest you always hire someone who’s worked at the IRS because they are aware of the methodologies required to get your offer in compromise through the system.
Other ways to Solve Back IRS Taxes Debt or Settle Back Tax Issues
As a general rule, you may apply for hardships, payment agreements or settle for an offer in compromise to settle your debt for pennies on the dollar.
We will review with you your financial statement and let you know what the lowest possible settlement IRS will accept. 40% of all persons that owe back taxes are an issue into a hardship or are currently not collectible status and 6.5 million taxpayers enter into annual payment agreements.
These programs are designed to keep IRS off your back.
The other way to pay less tax is for the ten-year statute of limitation to run out and your debt will be written off by the Internal Revenue Service.
If you want to file an offer in compromise I thought you’d like to know what the statistics are.
Last year over 78,000 offers in compromise/IRS tax debt settlement were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Approximately 40,000 taxpayers last year paid less tax.
At the current time there are 7500 cases in the offer queue. The average wait time is nine months. There are not enough IRS employees to work the current inventory.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement.
We will not file for an offer in compromise unless you are a true candidate for the program. You must qualify.
There is a pre qualifier tool to find out if you are a settlement candidate for income or business tax debt.
Upon your initial tax consultation, we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program. However this program is not for everybody.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
There are many firms that take your money and then let you know after the fact you are not qualified. you need to know before hand whether you have a fighting chance. Being a former IRS agent employee gives you a huge advantage of having the review your offer in compromise to settle your tax debt.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlements.
When you call our office for free initial tax consultation you will find out why we are one of the premier IRS tax relief firms and tax settlement agencies.
We are A+ rated by the Better Business Bureau and have unsurpassed communications and service in one of the nations leading tax firms. When you call our office you will find out the difference between us and other IRS tax relief firms, settlement companies or agencies.
IRS Tax Relief Firm + Settlement Company & Agency + Former IRS Agent + Ft.Lauderdale, Miami, Aventura, Palm Beaches, Boca Raton
