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Rejected Offer in Compromise – FIGHT BACK & WIN – IRS OFFER APPEALS SPECIALIST, FORMER IRS

by | Dec 10, 2012 | Tax Help, Uncategorized

Mike Sullivan

 

Rejected Offer in Compromise – FIGHT BACK & WIN – IRS OFFER APPEALS SPECIALIST, FORMER IRS

Having been a Former IRS agent and instructor I worked my share of offers in compromise for the IRS.

I know the system and settlement techniques used by the IRS. I will review for Offer in Compromise for no cost and determine if you offer can be accepted by the IRS. 1-866-700-1040.

Things you should know about offers in compromise .

Even though the IRS has a new Fresh Start Program and proudly proclaims it is now ready to settle, the truth of the matter,  the IRS employees do not like working Offers.Why? they take to long to work, the managers must review and if accepted the General Council for IRS must approve the Offer. That means your work is subject to constant review. It is far easier to look for reason to reject the offer that have it accepted.

Hiring tax professionals that know there way around the IRS.

Being Former IRS Agents and Instructors we know our way around the system. It is all about the packaging. If we can make it easy for the IRS agent you have a far greater chance of the IRS accepting the offer if you met the terms of the offer.

Call us today for a no cost consult and see if we can help you. 1-866-700-1040.

The Process of the Offer in Compromise Appeal.

If you received a letter notifying you that your offer was rejected you have 30 days to request an appeal of the decision.

You can request an  IRS Tax Appeals conference by:

1. preparing either a Form 13711, Request for Appeal of Offer in Compromise, or

2. a separate letter with the following information included:

a. Name, address, social security number, and daytime telephone number
b. A statement that you want to appeal the IRS findings to the Appeals office
c. A copy of your rejected offer letter
d. Tax period or years involved
e. A list of the specific items you don’t agree with and a statement of why you don’t agree with each item
f. Any additional information you want Appeals to consider
g. The facts supporting your position on any issue that you do not agree with
h. The law or authority, if any, on which you are relying
i. Sign the written protest, stating this it is true under the penalties of perjury

In preparing a request for an appeal, compile a list of specific with which items you do not agree and include a statement explaining why you disagree with each item.

Consider using Form 13711 in the preparation of your appeal.

You may also find a review of the following beneficial to review your denial letter and gather the correct facts so the IRS Agent can understand what you disagree with. you should start with the:

1. Your Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals,
2. the supporting documentation submitted with the Form 433-A

Check your figures and calculations again and verify the documents you submitted to Collection.

The Monthly Income/Expense Statement (see Section 4, Page 4) requires you to provide the following:
1. Proof of pay stubs and earnings statements of gross earnings and deductions for the past three months from each of your employers,
2. Proof of pension, social security and/or other income for the past three months,
3. Current statement(s) from the lender on your automobile(s), including the monthly payment and balance due for each vehicle,
4. Current statement(s) from all lien holders on your residence, including the amount of the monthly payment and balance due for each lien,
5. A copy of your last filed Form 1040 with all schedules, and
6. Proof of current expenses paid for the past three months including utilities, rent, insurance, property tax, non-business transportation expense (i.e. car payments, lease payments, fuel, oil, insurance, registration, parking), healthcare (including insurance premiums co-payments, other out-of-pocket expenses) and court-ordered payments. All documents must be attached with clear copies of receipts.

Common Mistakes for the OIC

a. The amounts used on the Monthly Income- Expense Statement  of Form 433-A could be different than the amounts used on the IET worksheet for food, clothing, miscellaneous, transportation, housing and utilities, out-of-pocket healthcare and other expenses.

b. Collection Financial Standards are used to help determine a taxpayer’s ability to pay a tax debt. All standards, except miscellaneous, are derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey (CES). These financial standards are explained below:

c. National standard expense allowed for food, clothing and miscellaneous monthly expense. The standard amount is computed based upon your income and family size instead of actual expenses.
d. National standard expense allowed for out-of-pocket health care expenses including medical services, prescription drugs, medical supplies (i.e. eyeglasses, contact lenses, etc.). This amount is based on Medical Expense Expenditure Panel Survey data and is in addition to the amount paid for health insurance.
e. Housing and utilities expense allowed for housing and utilities monthly expense. The standard amount is computed based upon the state and county where you reside and your family size.
f. Transportation expense allowed for monthly transportation expenses. The standard amount is computed by combining the standard for ownership cost and operating cost. This is based on the number of vehicles you own and the region you live.Note: Certain assets such as vehicles, and real estate should be valued at the quick sale value. This is the amount you can sell the asset today.

g. You may compute the value of a vehicle by consulting a trade association guide for the fair market value  and discounting the value by 20%. You may compute the value of real estate by an appraisal, the replacement cost value on your residence and possibly the taxable value of your home.

Lastly make sure all documents and letters of explanation are attached.

Rejected Offer in Compromise – FIGHT BACK & WIN – IRS OFFER APPEALS SPECIALIST, FORMER IRS

IRS Financial Statement + IRS National Standards + Do not let IRS bully you! = Former IRS

by | Mar 24, 2011 | IRS Tax Advice, Tax News

Fresh Start Tax

 

Affordable Fresh Start Tax LLC        A Professional Tax Firm       Experts in taxation

 

I am a former IRS Agent of 10 years and a teaching instructor who taught at the local, regional and district IRS offices.

IRS will try to tell you the National Standards apply and they cannot deviate from that. Do not let them bully you. That is not the case. Below is the direct link from the IRS IRM that gives you power to fight back.

http://www.irs.gov/irm/part5/irm_05-015-001.html#d0e1381

Some of the other expense IRS allows but does not tell you about.

Accounting and legal fees.Your representation fee to process this case. IRS will try to tell you that is not included in necessary expenses however that is not the case. Normal fee range between $2000-$3500, so make sure that is included into necessary and reasonable expenses.

Charitable contributions. If your condition of employment or your job requirement finds that it is required IRS must allow the charitable contribution. I have never had an agent agree on this without pressing on the the manager. The normal IRS Agent does not want to do any more than they have too and this is always a fight.

Child Care (Baby-sitting, day care, nursery and preschool) If it meets the necessary expense test. Only reasonable amounts are allowed. Cost of child care can vary greatly.

Court-Ordered Payments.Alimony, child support, including orders made by the state, and other court ordered payments) If alimony and child support payments are court ordered, reasonable in amount, and being paid, they are allowable.

Dependent Care. For the care of the elderly, invalid, or handicapped.) If there is no alternative to the taxpayer paying the expense.

Education If it is required for a physically or mentally challenged child and no public education providing similar services is available. Education expenses are also allowed for the taxpayer if required as a condition of employment.

Life Insurance If it is a term policy on the life of the taxpayer only. If there are whole life policies, these should be reviewed as an asset for borrowing against or liquidating. Life insurance used as an investment is not a necessary expense.

Secured or legally perfected debts. If it meets the necessary expense test. Taxpayer must substantiate that the payments are being made.

Unsecured Debts. If the taxpayer substantiates and justifies the expense, the minimum payment may be allowed. The necessary expense test of health and welfare and/or production of income must be met. Except for payments required for the production of income, payments on unsecured debts will not be allowed if the tax liability, including projected accruals, can be paid in full within 90 days. Examples of unsecured debts which may be necessary expenses include: Payments required for the production of income such as payments to suppliers and payments on lines of credit needed for business and payment of debts incurred in order to pay a federal tax liability.

Taxes If it is for current federal, FICA, Medicare, state and local taxes. Current taxes are allowed regardless of whether the taxpayer made them in the past or not. Delinquent state and local taxes are allowable depending on the priority of the FTL and/or Service agreement with the state and local taxing agencies.

Optional Telephones and Telephone Services (Pager, Call waiting, caller identification or long distance) If it meets the necessary expense test.

Student Loans If it is secured by the federal government and only for the taxpayer’s education. Taxpayer must substantiate that the payments are being made.

Internet Provider/E-mail If it meets the necessary expense test – generally for production of income.

Never let the IRS bully you, fight back