by Fresh Start Tax | Nov 3, 2012 | California Tax, IRS Representation, IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Offer in Compromise, Tax Settlements
IRS Tax Debt Settlement – Offer in Compromise – Former IRS Offer in Compromise Specialist
Fresh Start Tax – Joe Dimino and Michael D. Sullivan
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627 Costa Mesa, CA 92627 1- 866-700-1040
IRS accepts about 14,000 Offers in Compromise a year. 57,000 are submitted to the IRS.With the new Fresh Start Program instituted by the IRS we can expect many more offers being filed in the future. the program will help many struggling taxpayers.
A IRS Offer is sometimes called a IRS Tax Debt Settlement. As a Former IRS Agent and Teaching instructor with the IRS I use to teach the program to new Revenue Officers. Modesty speaking I am a true expert when it comes to IRS Tax Debt Settlements.
There are many companies that advertise “We can settling your case for pennies on a dollar.” While that statement is very true, I would caution any taxpayer to make sure the company you are dealing with is an experienced and trustworthy tax firm because our market is saturated with scam artists.
Check out BBB ratings and check on the person directly who will be handling your case.
My advice to the public is to have your offer pre-qualified before submitting your Offer in Compromise for a IRS Tax Debt Settlement.
Fresh Start Tax LLC will do just that.
Before we take dollar one, we will tell you whether you are a valid offer candidate before you spend a nickel.
Contact us today and hear the truth. We are A plus rated by the BBB.
What is an Offer in Compromise or a IRS Tax Debt Settlement
An offer in compromise is an agreement between a taxpayer/business and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount 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. For information concerning tax payment options, including installment agreements call us today. 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. this is known as 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, IRA’s, pension plans and other property and assets of the taxpayer.
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 of an Offer 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. you must have proof that the liability is incorrect.
Second.
An acceptance of an Offer 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.
An acceptance of an Offer is permitted based on effective tax administration.
An offer in compromise 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. These are rare.
How do you calculate the Tax Settlement or the Offer
Calculating the Offer in Compromise
To determine the acceptable minimum offer amount, the IRS will look at the taxpayer’s income and available assets, and compare it to their monthly expenses and other secured debts; however, not all expenses qualify.
For example, non-secured debt, such as credit card debt, will not be taken into account when calculating your offer. The IRS imposes a cap on qualified expenses, such as housing and transportation costs, to limit the amount you can claim, even if your actual expenses are much greater. There is a National Standard IRS embraces.
The value of any assets the taxpayer currently has, such as a home, car, 401K, or checking account, will be automatically calculated into the minimum offer amount. Those taxpayer who have a valuation of assets exceeding their tax liability are not good candidates for an offer in compromise, since the IRS will deem the taxpayer capable of paying the entire liability. If your assets exceed the amount of tax you owe, you are wasting your time filing an offer in compromise.
This does not mean, however, that one should liquidate their assets prior to submitting an offer. The IRS may or will consider these recently sold assets to be dissipated assets which could and will have an adverse effect on the final offer amount.
What is a Dissipated Asset.
Dissipated assets are anything of value that you had and subsequently sold, which could have satisfied your tax liability.
An example.
The sale of a business or car could be a dissipated asset. If the proceeds from the sale were spent on something other than your tax liability, and are no longer available to you, the IRS may add the value of the dissipated assets to your minimum offer amount.Check with us if this is the case.
Dissipated assets and their treatment can be difficult for many taxpayers to understand. Treatment of assets is an important factor when the IRS determines the viability of an offer in compromise. Therefore, one mis-characterized asset, or one that is not accompanied by proper explanation can cause an offer in compromise to be rejected.
Call us today and find out if and how you can qualify for a settlement with the IRS.
Call 1-866-700-1040 for a no cost consultation.
by Fresh Start Tax | Oct 22, 2012 | IRS Tax Debt, Offer in Compromise, Offshore Tax Problems, Tax Settlements
Offer in Compromise – Tax Debt Settlement – Former IRS Agent
Timing is everything when filing a Offer in Compromise or a IRS Tax Debt Settlement.
I should know.
I am a Former IRS agent and teaching instructor with the IRS who taught the Offer in Compromise program while employed by the IRS. I have reviewed hundreds and hundreds of offers. To get a IRS tax debt settlement approved by the IRS you must file a perfect offer settlement because it is a legal document.
IRS accepts over 27% of all offers filed and almost 80% of those are rumored to be filed by tax professionals.
You want to file your offer when you are at the lowest ebb of your financial life. IRS evaluates two primary objects, your current income and your assets.
IRS will ask you to complete a 433OIC and have the statement fully documented. With that in hand, the IRS has very specific formulas that evaluate your financial statement in regard to income and assets.
If you would like us to provide you with a no cost analysis contact us today.
Understanding the Offer in Compromise, tax debt settlement process.
While your offer in compromise is being evaluated by the IRS:
a. 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,
b. A Notice of Federal Tax Lien may be filed,
c. Other collection activities are suspended,
d. The legal tax assessment and collection period is extended,
e. You must make all required payments associated with your offer in compromise,
f. You are not required to make payments on an existing installment agreement, and
g.Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Fresh Start Tax LLC – New Jersey
209 Cooper Ave,
Upper Montclair, NJ 07043
1-866-700-1040
Call us today and speak to a true tax professional. 1-866-700-1040.
by Fresh Start Tax | Sep 16, 2012 | IRS Tax Debt, Offer in Compromise, Tax Settlements
Fresh Start Tax LLC is comprised of Board Certified Tax Attorneys, CPA’s and Former IRS Agents who are tax settlement experts. We can settle with the IRS.
We were Former Instructors with the IRS and taught the Offer in Compromise Program called the Tax Settlement program.
Call us for a no cost professional tax consult. 1-866-700-1040.
There are different ways to pay your taxes but it is possible to settle your case with the IRS if you can met the terms and conditions of IRS Settlement Program called the Offer in Compromise.
IRS settlement program is based on income and assets. The basic settlement formula for a IRS Offer in Compromise is base on the:
1. The distrait value of your assets,
2. Taking your current income subtracting your current monthly expense multiplied by 12 and applied against the National Standard Expenses.
Fresh Start Tax LLC will review any potential Offer in Compromise for no cost. 1-866-700-1040
If you do not qualify for a Tax Settlement or Offer in Compromise:
If you owe taxes but cannot pay the full amount by the tax deadline you should still file your return on time and pay as much as you can to avoid penalties and interest.
Here are alternative payment options you may want to consider to pay your back taxes:
Additional Time to Pay Based is based on your exact circumstances, no two cases are the same.
A brief additional amount of time to pay can be requested through the Online Payment Agreement application. Fresh Start Tax LLC can charge you a low fee to take care of this online payment agreement for you.
Installment Agreements and Payment Plans .
You can also request an installment agreement before your current tax liabilities are actually assessed by using OPA. The OPA option provides you with a simple and convenient way to establish an installment agreement and eliminates the need for personal interaction with IRS and reduces paper processing.
You may also complete and submit a Form 9465, Installment Agreement Request, make your request in writing, or call 1- 866-700-1040 to make your request to Fresh Start Tax LLC.
For balances over $50,000, you are required to complete a financial statement ( 433F )to determine the monthly payment amount for an installment plan. At this point it is best to hire a tax professional because the IRS has specific formulas and IRS can take advantage of taxpayers who have no experience in this arena.
You can pay by Credit or a Debit Card .
To pay your Federal taxes by credit or debit card, you can use all major cards (American Express, Discover, MasterCard, or Visa).
For information on paying your taxes electronically, including by credit or debit card, go to Electronic Payment Options Home Page and contact one of the service providers at its telephone number or Web site listed below and follow the instructions.
There is no IRS fee for credit or debit card payments, but the processing companies charge a convenience fee or flat fee.
If you are paying by credit card, the service providers charge a convenience fee based on the amount you are paying.
If you are paying by debit card, the service providers charge a flat fee of $3.89 to $3.95. Do not add the convenience fee or flat fee to your tax payment.
Call us today for more details and see if a IRS penalty abatement is right for you. 1-866-700-1040
by Fresh Start Tax | Aug 23, 2012 | Back Taxes, IRS Tax Debt, Offer in Compromise
We are former IRS agents who taught Tax Law at the IRS . We are offer in compromise and tax settlement experts.
Let us offer a free tax consultation to your back tax problem. 1-866-700-1040
There are several different options how to pay back taxes to the IRS.
This article will deal with the method of payment and the form of repayment.
Back taxes will always be a tax problem until you remove your case off of the CADE enforcement computer of the IRS.
If you are looking to retain a professional tax firm you should look to Fresh Start Tax LLC to find the easiest and most affordable ways to get Uncle Sam off your back.
We are comprised of Tax Attorneys, CPA’s and Former IRS Agents. We have over 60 years of working directly for the IRS.
Tax options to pay Back Taxes to the IRS:
Methods of making the back taxes payment
a.Electronic Funds Transfer.
You can pay your tax bill by electronic funds transfer, check, money order, cashier’s check or cash. To pay using electronic funds transfer, use the Electronic Federal Tax Payment System by either calling 800-555-4477 or using the online access at www.eftps.gov.
b.Credit card payments.
You can pay your bill with a credit card. Again, the interest rate on a credit card may be lower than the combination of interest and penalties the IRS must charge.
To pay by credit card you can contact one of the following processing companies:
1. WorldPay US, Inc. at 888-9PAY-TAX (or www.payUSAtax.com),
2. Official Payments Corporation at 888-UPAY-TAX (or www.officialpayments.com/fed), or
3. Link2Gov Corporation at 888-PAY-1040 (or www.pay1040.com)
How to get more time, get installment agreements of apply for a tax settlement
Installment Agreements.
You may request an installment agreement if you cannot pay the total tax you owe in full.
This is an agreement between you and the IRS to pay the amount due in monthly installment payments. There are different options depending on the facts and circumstances of each case. you should contact us directly to find out the options on your particular case.
Note: You must first file all required returns and be current with estimated tax payments. IRS will refuse to deal with you if you are not fully compliant with all tax filings.
If you owe under $50,000 we can get you a guaranteed installment agreement without detailed financial information however if you owe over $50,000 the work is much more involved and detailed financial statements will be required by the IRS.
Offer in Compromise, Tax Settlement
IRS is now offering more flexible terms with its Offer-in-Compromise Program.
An OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than the full amount owed.
An OIC is generally accepted only if the IRS believes, after assessing the taxpayer’s financial situation, that the tax debt can’t be paid in full as a lump sum or through a payment agreement.
The offer in compromise ( tax settlement ) is a very detailed format and requires the filing of a 433 OIC and 656. IRS spends an average of 20 man hours for every offer in compromise it accepts.
Call us to make sure you are a candidate for a offer in compromise or a tax settlement. If you are a candidate you will settle for pennies on a dollar. We are Offer in Compromise specialists.
Fresh Start Program just initiated by the IRS has made the Service a friendlier agency to deal with. Call us for more details.
How to pay Back Taxes to the IRS – Tax Settlement, Offer in Compromise – Fresh Start Tax LLC
by Fresh Start Tax | Jul 18, 2012 | Offer in Compromise, Tax Settlements
If your Offer in Compromise was rejected, all is not lost, you have options. We are former IRS agents, managers and instructors.
We know all the procedures. I am a former IRS teaching instructor of the Offer in Compromise.
Talk to us, free tax consults, 1-866-700-1040. Speak directly to a former agent.
The IRS has rejected your Offer in Compromise as to Collectibility, what can I do?
If you submit an Offer in Compromise as to Collectibility and the IRS rejects it, all is not lost!
If the IRS (Collection Division) rejects your Offer in Compromise, ask them why it was rejected.
If the Offer in Compromise was rejected because you have not filed all of your tax returns, ask what years need to be filed and then request additional time to file the tax returns.
If the Offer in Compromise was rejected because of additional information that the IRS wants, provide that information to the IRS.
Don’t ignore the IRS. If you need more time to obtain the information, inform the IRS that you are in the process of obtaining the information, but you need more time.
If the Offer in Compromise was rejected because the amount offered was not adequate, ask that the IRS provide you the amount of an acceptable offer and how it was computed.
Review the computations. If you agree with the computations, inform the IRS that you will be immediately submitting an “Amended Offer” for the higher amount as computed by the IRS.
If you do not agree with the IRS’s computation of an acceptable offer, file an appeal for the rejected offer.
In the appeal explain the part of the IRS’s computation of the acceptable offer that you do not agree with. If there is a dispute as to the value of assets, provide the current appraisals with the protest. If income or expenses are in dispute, provide documentation for what you believe are the correct amounts.
When the case is in Appeals, your case will be reviewed by an Appeals Officer or a Settlement Officer. If he or she requests additional information, provide it. Explain your situation. Don’ t tell him that you don’t have the funds for the offer; the Appeals Officer or the Settlement Officer already knows that.
Most of the times, you have to fund your offer from loans from relatives; or make monthly payments from your current income.
When the Appeals Officer or Settlement Officer has computed what he believes is an acceptable offer, review the computations.
If you agree with the amount of the acceptable offer, the Appeals Officer or the Settlement Officer will request that you submit an “Amended Offer” that he or she will process.
If the amount of the unpaid liability exceeds $50,000.00, Area Counsel will have to concur with the amount that “Amended Offer.”
If you don’t agree with the amount of the acceptable offer as computed by the Appeals Officer or the Settlement Officer, their is no further appeals other than by requesting “Post Appeals Mediation” in a few selected Appeals Offices through out the nation.
Thus, you should not be too quick not to reject the Appeals Officer or the Settlement Officer’s computation of an acceptable offer.
For example, your unpaid tax liability is $780,000.00; you offered $35,000.00; but the Appeals Officer or the Settlement Officer computed the acceptable offer in the amount of $100,000.00.
The Appeals Officer or the Settlement Officer wants an additional $65,000.00 for an acceptable offer; but you should not lose sight of the fact that by paying $100,000.00 your unpaid tax liability of $780,000.00 would be forgiven by the IRS for a payment of $100,000.00.
Let us at Fresh Start Tax review your case. Our experienced staff of former IRS Examiners and Appeals Officers will evaluate your offer and determine how far to pursue it.
Call us 1-866-700-1040
Offer in Compromise Rejected? File OIC Appeal, Former IRS Agent Instructors, Managers
