by Fresh Start Tax | Sep 12, 2014 | Tax Help
If you want to settle your debt for pennies on a dollar it only makes perfect sense to hire a former IRS revenue officer who both worked and taught the IRS tax debt settlement program called the offer in compromise.
Not only did we work and settle cases for the Internal Revenue Service, we also taught IRS agents how to work the the program and qualify taxpayers for The tax debt settlement program.
I am one of the most foremost experts on how to settle your debt for pennies on a dollar.
We are very affordable.
The IRS tax settlement process is very specific.
- 38% of all those who apply to the IRS tax settlement called the offer in compromise get there tax debt settlement approved.
- The average settlement is $.14 on the dollar but everything is completely predicated on your current and verifiable financial statement.
My blog contains some of the material necessary to find out if you have a qualified case to settle your debt to the offer in compromise.
FST takes no money from any potential clients unless we know they have a very viable chance of acceptance for the offer in compromise program. we will walk you through the IRS pre-qualifier tool before sending in any IRS tax debt settlement or offer in compromise.
Below you will find out the basic outline of what the average taxpayer needs to know how to settle their debt through the IRS offer in compromise.
The IRS Offer in Compromise, How to Settle Your IRS Tax Debt
An offer in compromise/IRS Tax Debt Settlement 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 and can consider 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 Offer in Compromise program is not for everyone. Let us pre-qualify you.
If you use the Pre- Qualifier tool for the IRS Tax Settlement called the Offer in Compromise
The IRS in the process of making modifications to the Pre-Qualifier Tool application.
If you use this tool, please consider making the following adjustments to your displayed results.
- If you enter an amount on Screen 3 Assets, Line 1 which reads “Total bank Balances,” you may reduce this amount by $1000. The result may not be less than zero.
- If you enter an amount on Screen 3, Vehicle 1, you may reduce this amount by $3450. The result may not be less than zero.
- If you enter an amount on Screen 3, Vehicle 2, and you are making a joint offer with a spouse or other party, you may also reduce this amount by $3450. The result may not be less than zero.
This is the latest information.
Make sure you are eligible to settle your IRS Tax Debt though the Offer in Compromise
Before we 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.
You can use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Submitting your offer in compromise to settle your IRS tax debt.
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 must include:
1. Form 433-A (OIC) (individuals) or
2. 433-B (OIC) (businesses) and all required documentation as specified on the forms;
3. Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
4.$186 application fee (non-refundable); and
5. Initial payment (non-refundable) for each Form 656.
Select a payment option for the offer in compromise/IRS Tax Debt 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 Payments to the IRS:
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 of an offer in compromise, IRS tax debt settlement
Important Note – 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.
Los Angeles – IRS Tax Debt Settlement, Offer in Compromise = Affordable Former IRS Settlement Officer = Los Angeles, California
by Fresh Start Tax | Sep 12, 2014 | Tax Help
I am a former IRS revenue officer and teaching instructor of the IRS tax debt settlement called the offer compromise.
I am one of the most foremost experts on how to settle your debt for pennies on a dollar.
And yes, I am very affordable.
Not only was I a former revenue officer and teaching instructor with the Internal Revenue Service ,I taught other IRS agents the ins and outs of the offer in compromise.
I know the complete working system to settle your IRS tax debt through the offering compromise.
The IRS tax settlement process is very specific.
38% of all those who apply to the IRS tax settlement called the offer in compromise get there tax debt settlement approved.
The average settlement is $.14 on the dollar but everything is completely predicated on your current and verifiable financial statement.
This blog can only contain some of the material necessary to find out if you have a qualified case to settle your debt to the offer in compromise.
We take no money from any potential clients unless we know they have a very viable chance of acceptance for the offer in compromise program.
Below you will find out the basic outline of what the average taxpayer needs to know how to settle their debt through the IRS offer in compromise.
The IRS Offer in Compromise, How to Settle Your IRS Tax Debt
An offer in compromise/IRS Tax Settlement 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 and can consider:
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 Offer in Compromise program is not for everyone. Let us pre-qualify you.
If you use the Pre- Qualifier tool for the IRS Tax Settlement called the Offer in Compromise
The IRS in the process of making modifications to the Pre-Qualifier Tool application.
If you use this tool, please consider making the following adjustments to your displayed results.
- If you enter an amount on Screen 3 Assets, Line 1 which reads “Total bank Balances,” you may reduce this amount by $1000. The result may not be less than zero.
- If you enter an amount on Screen 3, Vehicle 1, you may reduce this amount by $3450. The result may not be less than zero.
- If you enter an amount on Screen 3, Vehicle 2, and you are making a joint offer with a spouse or other party, you may also reduce this amount by $3450. The result may not be less than zero.
Make sure you are eligible to settle your IRS Tax Debt though the Offer in Compromise
Before we 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.
You can use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Submitting your offer in compromise to settle your IRS tax debt.
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 must 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 offer in compromise/IRS Tax 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 Payments:
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 of an offer in compromise, IRS tax settlement
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.
IRS Tax Settlement, Offer in Compromise = Former IRS Settlement Officer = Manhattan, New York City, Queens, Brooklyn, Bronx, Staten Island, Long Island
by Fresh Start Tax | May 7, 2014 | Tax Help
I am a Former IRS Revenue Officer who worked and settled cases with the Internal Revenue Service. I am a tax expert for IRS collection procedures.
FACT – Over 38% of all those who apply for the Nationwide IRS tax debt settlement call the offer in compromise have settled there cases.
Last year over 78,000 offers in compromise were filed for taxpayers wanting to settle an old tax debt.
The average settlement was approximately $.14 on the dollar.
Before you go running off to try to settle your IRS tax debt you should know there are certain standards that are acceptable before the Internal Revenue Service for a tax debt settlement to be approved.
It is wise for taxpayers to go through the pre-qualifier tool that you can find out our website for the offer in compromise.
You will find out if you are an eligible candidate and you will also find out the lowest dollar amount the Internal Revenue Service will settle for.
It is also important to know that you must be very accurate on your tax debt settlement financial statement because the IRS will want everything in your financial statement documented for the last year.
Also make sure you have a complete package when you send it in to the IRS, if not, the IRS will immediately reject the tax debt settlement.
Please find below the IRS nationwide tax debt settlement relief program called the offer in compromise.
Offers In Compromise
What is a Offer in Compromise or the Nationwide Tax Debt Settlement Program?
An offer in compromise or tax settlement (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
Eligibility requirements
In order to be eligible for an OIC, the taxpayer must have:
1. filed all tax returns,
2. made all required estimated tax payments for the current year and
3. made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
The IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).
The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
Acceptance – The IRS may accept an OIC based on three grounds.
First— Acceptance is permitted if there is doubt as to liability.
This ground is only met when there is a genuine dispute as to the existence or amount of the correct tax debt under the law.
Second— Acceptance is permitted if there is doubt that the amount owed is fully collectible.
Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third—Acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.Generally these offers are accepted because of rarer circumstance usually because of medical conditions.
Application- Submission of the Nationwide Tax Debt Settlement Program
When submitting an OIC based on doubt as to collectibility or based on effective tax administration, taxpayers must use the most current version of:
Form 656, Offer in Compromise, and also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or
2. Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
3. A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC). Form 656 can be found in the Offer in Compromise Booklet, Form 656-B (PDF).
A taxpayer must submit a $186 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. the fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
How to make payments for the tax debt settlement program
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
- A “lump sum offer” is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount. This payment is required in addition to the $186 application fee. The 20 percent payment is “nonrefundable” meaning it will not be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. Instead, the 20 percent payment will be applied to the taxpayer’s tax liability. The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent payment.
- An offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656. This payment is required in addition to the $186 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. These amounts are also nonrefundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
If you have any questions call us today regarding the nationwide tax debt settlement program called the offer in compromise.
You’ll speak directly to true tax professionals who are affordable tax experts in this matter.
by Fresh Start Tax | Dec 25, 2012 | Offer in Compromise
Offer in Compromise – New Rules, Settle for Less – Former IRS Agents
Call 1-866-700-1040 Free Tax consults A PLUS Rated BBB
I am a Former IRS agent and teaching instructor with the IRS. I taught tax policy to new IRS agents. I know all the rules, settlement policies and tax procedures to make a offer work if you are a qualified candidate.
We are comprised of Tax Attorneys, CPA’s and Former IRS agents, managers and instructors. We have over 205 years of total tax experience and over 60 years of direct work experience with the IRS.
We know all the settlement policies and tax strategies of the offer in compromise.
The settlement game has changed.
The Internal Revenue Service is now in the business of accepting offers in compromise. Even though IRS has been accepting them for years they now “really” want the offers to settle cases simply because the FEDS need money.
As a Former IRS agents I can tell you first hand in the past the IRS agents did not like working offers in compromise. They took to much time and they were a lot of work and they were reviewed by the higher ups. Management would criticize your work so it was easier to find a reason to reject the Offer. In day pasts the motto was,” reject immediately”. The culture has changed and we are starting to see a major shift in settlement policy.
Expanded Offer in Compromise Program
The IRS has expanded its “Fresh Start” initiative by offering more flexible terms to its Offer-in-Compromise Program. These newest rules enable some financially distressed taxpayers to clear up their tax problems even quicker.
An offer-in-compromise is an legal and enforceable agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement.
The IRS primarily looks at the taxpayer’s income and assets to determine the reasonable collection potential. They generally add the assets of the taxpayer with the net disposable monthly income times 12 to arrive at the settlement formula.
This expansion of the “Fresh Start” initiative focuses on the financial analysis used to determine which taxpayers qualify for an OIC.
Here are the BIG OIC changes:
Revising the calculation for a taxpayer’s future income
The IRS will now look at only one year instead of four years of future income for offers paid in five or fewer months and two years instead of five years of future income for offers paid in six to 24 months.
All OICs must be paid in full within 24 months of the date the offer is accepted. This is the very best way of getting an offer accepted.
IRS is now allowing taxpayers to repay their student loans.
Minimum payments on student loans guaranteed by the federal government will be allowed for the taxpayer’s post-high school education.
Proof of payment must be provided.
Allowing taxpayers to pay state and local delinquent taxes.
When a taxpayer owes delinquent federal and state or local taxes, and does not have the ability to fully pay the liabilities, monthly payments to state taxing authorities may be allowed in certain circumstances.
Expanding the Allowable Living Expense.
Allowance standard allowances incorporate average expenses for basic necessities for citizens in similar geographic areas. These standards are used when evaluating installment agreement and offer-in-compromise requests.
The National Standard miscellaneous allowance has been expanded. Taxpayers can use the allowance to cover expenses such as credit card payments and bank fees and charges.
Call us today to see if qualify for a offer in compromise, free tax consults.
Offer in Compromise – New Offer Rules, Settle for Less – Former IRS Agents
by Fresh Start Tax | Nov 28, 2012 | New Jersey Tax, Offer in Compromise, Tax Settlements
Offer in Compromise – Settle IRS Tax Debt – Former IRS Agent, Tax Lawyers
Upper Montclair, Cedar Grove, West Orange, Ridgewood, Mendham, Franklin Lakes, Newark, Bernardsville – New Jersey
Have Former IRS Agents, Managers and Instructors who worked and taught the Offer in Compromise Program at the IRS settle your IRS Tax Debt.
Settle for the lowest amount allowed by Law.
We have worked hundreds of case and know the exact formulas of the Internal Revenue Service. Over 60 years of combined IRS tax experience.
We taught Tax Law to new IRS agents and know the exact policies of settlement structures.
You can call us today, 1-866-700-1040 for a no cost consult and let us review your information to see if you are a Offer in Compromise candidate.
The IRS Offer In Compromise/ Settle with the IRS
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount of the taxes that are owed.
If the tax liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
General Rule of thumb.
You must at least offer IRS all the equity you have in your total assets. IRS will not expect a offer unless your total value of assets to the IRS. Equity is consider a discounted fair market value.
Assets also included home value, IRA’s and Pension Plans
Call us for more details. 1-866-700-1040
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).
The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
The IRS may accept an OIC based on three grounds.
First, acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is collectible.
This means that doubt exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third, acceptance is permitted based on effective tax administration or exceptional circumstances.
An offer may be accepted based on effective tax administration when there is no doubt that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
The Process
While your offer in compromise is being evaluated by the IRS:
1. Your non-refundable payments and fees will be applied to the tax liability,
2. A Notice of Federal Tax Lien may be filed if the IRS feels the offer is frivolous,
3. Other collection activities may and are suspended,
4. The legal IRS tax assessment and collection period is extended for the time in offer status,
5. You need to make all required IRS tax payments associated with your offer in compromise,
6. You are not required to make payments on an existing installment agreement; and
7. Your offer in compromise is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Offer in Compromise – Settle IRS Tax Debt – Former IRS Agent, Tax Lawyers 1-866-700-1040
