by Fresh Start Tax | Nov 1, 2018 | Tax Help
As a former IRS agent and teaching instructor and a national expert, I am asked this question hundreds of times a year,” Will IRS settle for pennies on the dollar?”
The answer flat out is yes, but you better read the rest of the story.
For the record, we are a local South Florida tax firm that has been practicing since 1982 are former IRS agents worked out of the South Florida IRS offices.
There are hundreds or maybe a thousand firms promising IRS will settle your tax debt for pennies on the dollar. I’m trying to warn the general public not to be ripped off.
Most firms want you to believe immediately there is a tax debt settlement in your future and that’s why they charge larger monies larger retainers all for the promise of settlement.
There are many scrupulous companies out there that simply take your money and you have a case that has no chance of settlement.
I know because I receive hundreds of calls a year about tax resolution firms that take money from suspecting taxpayers hoping to settle their debt only to find out they have been ripped off.
Make sure this does not happen to you.
A simple call to our office, free tax consultation, will tell you the truth about is the offer in compromise program right for you. IRS has strict rules about an IRS tax debt settlement.
Just so you know the answer to the initial question, how much will IRS take for an offer in compromise, there is no set standard amount of what the IRS will accept for your offer in compromise to settle your tax debt, it is all decided by formula.
And there is a very exacting settlement formula to settle your tax debt for pennies on the dollar.
When you call us today will explain that formula to you. As a general rule IRS is looking for your current income expenses and your assets. IRS doesn’t much care for most of your liability including credit cards and debt to other parties IRS is mainly looking for asset-based areas and where they can collect the back tax.
Also it is very important to remember all your tax returns must be filed and on the IRS system before IRS will accept the offer in compromise.
If you want to know the truth about the offer in compromise program I am the person you need to speak to. Since 1982.
I am a former IRS agent and teaching instructor with my former boss of the offer in compromise program.
I know the system inside and out I worked it I’ve trained others and have accepted offers in compromise for the federal government. I’m a true IRS tax expert on the offer in compromise.
I am a true IRS tax expert, national speaker, and have been on FOXBusiness news and other outlets speaking about different matters about Internal Revenue Service.
There are many myths about the offer in compromise program.
There are strict standards that the IRS employee before they accept an offer in compromise. I know because I’ve both accepted offers in compromise taught new employees to accept the offer in compromise or reject them and I know the system inside and out.
I suggest that every client or taxpayer before they file an offer in compromise either do one of two things.
Number one, call a true tax expert who knows the offer in compromise inside out or number two, to fill out the IRS pre-qualifier tool for the offer in compromise.
If you’re calling a professional firm you want to make sure the representative has at least filed 100 offers.
It takes a lot of experience and knowledge to get an offer in compromise through. some are very simple and don’t need a lot of experience while others demand. expertise skill level.
The Internal Revenue Service spends several hours, much more than you think to accept an offer in compromise. As a general rule, the average agent can spend between 20 to 40 hours to accept an offer in compromise.
After that takes place, the revenue officer must convince their local supervisor, the area manager, and the General Counsel of Internal Revenue Service to accept the offer.
It literally goes back and forth in the system. Some exceptions do exist. Dollar amount has a lot to do in the direction your offer will take.
Why? because all offers and compromise are a matter of public record.
That public record is available at eight regional IRS offices in the United States.
Even though offers are open to public inspection only one person last year looked through the IRS offers in compromise files.
IRS is not made electronic copies for review. knowing that these files are public record believe it or not only one person last year visited a regional office to review the offer in compromise. This year no one has been to an office.
There is a base rule for Internal Revenue Service accepting an offer in compromise.
You must give IRS the total equity in all your assets before IRS will consider or contemplate the acceptance. Some exceptions exist, assets consist of houses, pension plans, stock, business valuations, IRS wants to make sure you’re actually borrowing the money to settle.
If you are interested in filing an offer in compromise you can call us today for a free initial tax consultation and I will walk you through the process of the true IRS debt settlement called the offer in compromise.
Offer in Compromise FACTS:
IRS last year accepted approximately 30,000 offers in compromise in approximately 75,000 were accepted. The average settlement was $9500.
Don’t let this average settlement fool you, it’s based on an average of all the offers accepted.
Offers in compromise are excepted by formula not by judgment.
The basic formula are the total value of your assets times what you have left over a month on a current income and expense statement times the number of months left in the statute. Some exceptions do apply.
Due diligence that can be used by IRS. The dollar of your case drives the due diligence.
You want to make sure your financial statement is accurate.
IRS has a host of web-based tools that can search your assets, places were you work, your income, your real estate records, your car records, your business records, insurance records , financial statement you’ve given institutions, credit reports and financial statements you’ve given the credit companies.
The amount of due diligence that the IRS spends working on cases depend strictly on the dollar amount of the tax debt. If you over hundred thousand dollars IRS spends a great deal more honor offer case.
Make sure you are very honest in the submission of your offer in compromise
So. what is an offer in compromise, a tax debt settlement
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.
IRS consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
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 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 file:
Before 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.
Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Your completed offer package will include:
• Form 433-A (OIC) (individuals) or 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;
• $186 application fee (non-refundable); and
• 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. If your offer is accepted, you will receive written confirmation. Any remaining balance due on the offer is paid 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 of the OIC
While your offer is being evaluated there are specific rules and guidelines:
• 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.
If your offer is accepted: your blessed
• You must meet all the Offer Terms listed in Section 8 of Form 656, including filing all required tax returns and making all payments;
• Any refunds due within the calendar year in which your offer is accepted will be applied to your tax debt;
• Federal tax liens are not released until your offer terms are satisfied; and
• Certain offer information is available for public review by requesting a copy of a public inspection file.
If your offer is rejected
• You may appeal a rejection within 30 days using Request for Appeal of Offer in Compromise, Form 13711 (PDF).
If your offer is not accepted this appeal process many times is the best way to settle the tax debt as the appeals division is a little more lenient sometimes than the IRS revenue officer. Don’t be dismayed if your case goes to appeals. Many times the best settlements come while the case is in the Appellate Division.
Call us today for a free initial tax consultation and we will walk you through the system to get your offer in compromise accepted if you are a credible candidate for the program.
We only file offers in compromise if you are a suitable candidates.
Remember, offers in compromises are not for all people.
e your money to any firm unless you speak to the person and you truly understand how IRS will accept your financial statement and accept the offer in compromise.
Offer In Compromise : Will IRS Settle For Pennies on a Dollar * Ask Former IRS Agent + Ft. Lauderdale, Miami, Palm Beaches, Boca Raton, Pompano
Offer In Compromise : Will IRS Settle For Pennies on a Dollar * Ask Former IRS Agent + Ft. Lauderdale, Miami, Palm Beaches, Boca Raton, Pompano Beach
by Fresh Start Tax | Sep 28, 2018 | Tax Help
Need Help With IRS DEBT? Hear the Truth Right Now, Since 1982
It only makes sense to hire IRS tax attorneys, and former IRS agents managers and tax instructors to provide the best tax relief options.
We have over 100 years of direct IRS work experience in the local IRS offices and know every format and methodology to give you the most success for IRS debt and tax relief options.
We will review with you the various examinations to help, get rid of, relieve or eliminate you of your current IRS Tax Debt obligations on IRS Back Taxes.
We can file all back taxes as well. All tax returns must be filed before IRS will close your case. IRS uses different collection methods to make sure all tax returns are filed.
An important note of interest is if you do not file your tax returns IRS may file them under 6020 B of the Internal Revenue Code.
There is a very exacting process to eliminate your IRS problem and we know the system. IRS does not leave their system of resolution up in the year. We will review with you their definitive process so you understand exactly how IRS is going to resolve your case.
We will walk through all the programs to see what programs you qualify. We can go over all your options to qualify for relief.
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.
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 also have on staff the CPA tax attorney.
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 close out Tax Debt Cases for Back Taxes?
The 5 ways or programs for IRS Tax Debt
1. By Payment in full,
2. By smoothly 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.Sometimes this program is called currently not collectible. IRS can kick out your case and then review it in 2 to 3 years.
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. You must turn in a completely accurate financial statement.
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. IRS also has a pre-qualifier tool.
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
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.
Also, beware that many times the Internal Revenue Service want to make sure you are current in your withholding tax or your estimated 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 for 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 Back Tax Issues, You will qualify for different types of relief.
These are your Options for back tax relief.
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.
With these programs you will not pay less tax. 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 an 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 beforehand 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 settlement s.
The Offer in Compromise + Through the New Fresh Start Tax Initiative now provide by the IRS.
If you have any questions or issues about the offer in compromise program to settle or negotiate your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise.
It is possible for the IRS to spend over 20-40 hours working an offer in compromise.
IRS uses the Accuriant search engine, Google in a variety of other searches to check on assets and histories of taxpayers and businesses.
You want to make sure you are accurate and truthful on your financial statement.
The higher the dollar case the greater the due diligence. Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
One base rule for the offer in compromise program. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
Below you will find out what you need to know about the offer in compromise program.
Beginning immediately b y the IRS:
The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. The internal revenue service will immediately reject your offer in compromise. Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on the file.
When IRS determines that they will settle with you, IRS will consider your unique set of facts and circumstances.Keep in mind IRS is not limited in this but these are the major factors for settlements.
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
Right now that is approx. 9 months
Make sure you are eligible for the offer in compromise to settle your back IRS tax debt.
Before 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.
Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Submit your offer in compromise to settle your IRS tax debt
You’ll find step-by-step instructors and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Your completed offer package will include:
• Form 433-A (OIC) (individuals) or 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;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.
Select a payment option on an IRS offer settlement
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:(most common)
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.
Understand the process to settle your tax debt on an IRS settlement offer to pay less tax
While your offer to pay less taxes 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.
Call us today for free initial tax consultation and speak to a true IRS tax expert who will walk you through the process of how to negotiate with IRS over back taxes and see if you qualify to pay less taxes for an IRS tax settlement.
When you call our office you will hear the truth. The local tax experts for those owing back IRS taxes.
With over 200 years of dealing in IRS tax problems, we know every system that IRS can have and we can manage your case effectively.
NEED HELP WITH IRS DEBT + IRS TAX ATTORNEYS + TAX RELIEF OPTIONS
