by Fresh Start Tax | Nov 5, 2018 | Tax Help
Yes, you can resolve your IRS tax debt through the Offer in Compromise, Since 1982. Call us to find out more, Free Consult
There are hundreds or maybe a thousand firms promising IRS will settle your tax debt for pennies on the dollar.
While this is true, 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.
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 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.
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.
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.
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
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
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.
If your offer is accepted
• 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).
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.
Just for the record, the feature of the offer in compromise is that IRS will release your federal tax liens that have been filed after the taxes paid off.
Remember, offers in compromises are not for all people. You must speak to true tax experts to make sure you qualify and you should never give 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.
Call us today for a free tax consult.
You Can Resolve IRS Tax Debt Through Offer in Compromise, Former IRS Agent
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.
There are hundreds or maybe a thousand firms promising IRS will settle your tax debt for pennies on the dollar.
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.
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 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.
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.
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.
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:
• 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. You must speak to true tax experts to make sure you qualify and you should never give 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.
IRS Tax Debt Settlement * Will IRS Settle For Pennies on A Dollar ** Speak To Former Agent
by Fresh Start Tax | Oct 31, 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, how much will IRS take on an offer in compromise?
There are hundreds or maybe a thousand firms promising IRS will settle your tax debt for pennies on the dollar.
While this is true, 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.
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 formula.
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 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.
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.
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.
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:
• 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
• 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.
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. You must speak to true tax experts to make sure you qualify and you should never give 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.
How Much Will IRS Take/Settle On an Offer in Compromise, Former IRS Will Tell You
by Fresh Start Tax | Oct 31, 2018 | Tax Help
The chief way to settle your debt with the Internal Revenue Service is to file an offer in compromise. that is the program to settle with IRS.
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 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.
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.
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.
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.
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
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
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
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
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.
If your offer is accepted
• 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).
Have any questions, call us today for a free initial tax consultation and speak to a true IRS tax expert on how to settle an IRS tax debt with former IRS agents
by Fresh Start Tax | Oct 23, 2018 | Tax Help
If you owe a chunk of change to IRS you have options. Former IRS agents can help get rid of the IRS and stop the calls.
There are various means of paying back taxes to IRS. As former IRS agents we will explain your options. A tax settlement may be in your future.
As a former IRS agent and teaching instructor with IRS you should know as a general rule someone with more experience will work your IRS collection case.
That person will have a lot of experience looking for assets and more carefully evaluating your current financial statement.
Your current financial statement holds the key to tax negotiation with the Internal Revenue Service.
Success comes by knowing the system and understanding what it takes to close an IRS case.
IRS takes a closer look at all cases large dollar especially the financial statements, the IRS is looking for the ability of the taxpayer to pay the back tax. As a former IRS agent this was part of my job.
One of the first tasks of IRS is to make sure all back tax returns are filed and current in the system.
IRS will not close out any open taxpayer inventory case unless all back tax returns are filed and the taxpayer is current on estimated tax payments or their withholding is up-to-date.
IRS is a stickler on this because they don’t want the problem of the back tax debt recurring.
So how will IRS work your case?
The Internal Revenue Service will ask the taxpayer to fill out an IRS form 433A.
You can find that on our site or on the government site. IRS will expect that form to be fully completed fully documented along with copies of the last six months bank statements, copies of all monthly expenditures, bills and a copy of pay stubs.
IRS will conduct a thorough review on that financial statement.
The internal revenue service can go through great lengths to do due diligence on your case. They have many search engines at their disposal. They will check Department of motor vehicle, records public records, credit reports, insurance policies and a plethora of other information found on internal systems used by different federal and state government agencies.
IRS knows much more about you than you can possibly imagine. You must make sure you still out your financial statement truthfully and accurately. That’s why it is best a true tax professional provide the necessary tax help to resolve your problem.
After this review of the financial statement the Internal Revenue Service generally has various buckets of closing programs that the taxpayer can be put into as a result of their current financial statement.
The importance of filling out your financial statement and giving it to IRS is the key to success and failure. I could never tell you how important the financial statement as it will determine the outcome with Internal Revenue Service.
Bucket One.
Currently uncollectible or hardship cases
If the Internal Revenue Service looks at your current financial statement and determines that your expenses exceed your income and you fall within the necessary means test, IRS can place your case in this non-collectible status.
There is good news and bad news within the status.
The good news is IRS will probably suspend your case between one and three years and kick it out for review a couple of years later, the bad news is the penalties and interest still run and the debt gets larger.
Bucket Two.
Installment agreements or monthly payments
If after the Internal Revenue Service looks at your current financial statement and they determine that you have more income than the necessary standards of meeting tests, IRS will ask for a monthly payment based on that financial statement. Hiring a tax professional can assure that IRS does not grab more money than necessary on or review of your financial statement. There are different monthly installment agreements and we will review with you your options upon your free consultation.
Bucket Three.
Offer in Compromise
This is called the pennies on a dollar program that you see advertised on TV however the offer in compromise is not for everyone.
I am a former IRS agent and teacher of the offer in compromise.
Approximately 32,000 taxpayers a year can settle their debt for pennies on the dollar, the average settlement is $9500 a year and I caution and warn taxpayers who submit offers in compromise to go through the IRS pre-qualifier tool to find out if they can truly settle their tax debt.
As a former IRS agent I carefully will walk through your financial statement and if you have any chance of being accepted for the offer I will walk you through the program and submit the offer in compromise.
Bucket Four.
Statute of limitations
IRS has 10 years to collect on their back tax debt, the period starts from the date of the assessment. The date of the assessment is the time that IRS had to put your case on the computer at the start the billing process. Various factors will extend the statute such as bankruptcy, the filing of the CDP, or the filing of offer but as a general rule after the 10 year date of assessment date your case goes away by federal statute,
Bucket Five
Bankruptcy.
Yes, Bankruptcy, many taxpayers are unaware that you could file a bankruptcy, a chapter 7 the discharge debt.
As a general rule the taxes have to be three years or older, assessed for more than 240 days and the tax returns have to be filed for at least two years. there are also different chapters in bankruptcy such as an 11 and 13 that a taxpayer can be qualified by speaking to a true bankruptcy expert.
When you call our office we will walk you through the various programs after review of your current financial statement.
Call us for a free initial tax consultation and we will walk you through the process of dealing with the Internal Revenue Service.
Do You Owe IRS a Chunk Of Change in Back Taxes + IRS Tax Help Is Right Here + Former IRS
