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Offer in Compromise = How Do You Know if it is Right For You To Settle Back Taxes + Former IRS Settlement Agent + Ft. Lauderdale, Miami, Palm Beaches, Boca Raton, Aventura

by | Nov 29, 2018 | Tax Help

Fresh Start Tax

Michael Sullivan Offer Expert, How Do You Know the Offer in Compromise is Right For You To Settle Back Taxes is Right for You

 

I am a former IRS agent and teaching instructor with the Internal Revenue Service.

When I was employed by the Internal Revenue Service I work the offer in compromise program.

We are a local South Florida tax firm that had specializing in IRS tax debt settlement since 1982.

Not only did I accept and reject offers in compromise, I was also a teaching instructor at the service center to help qualified revenue officers decide which offers to accept and reject.

Given the above information, I can tell you I am a true expert for the IRS offer in compromise and I wish to explain to you whether an offer in compromise is a viable option for you.

Due to social media, marketing and advertising the assumption by the general public is that IRS can settle tax debt for pennies on the dollar.

Let me first let you know that IRS does accept offers in compromise and as a matter of fact last year approximately 32,000 offers in compromise were accepted out of the 78,000 that were filed. That number varies from year to year but the percentages usually remain the same of acceptability.

The average settlement was $9500 per case but remember that is just an average in not everybody can settle their tax debt for $9500.

There is much information you need to know before you go off filing an offer of compromise and giving your money to some firm to try to pull off some amazing trick because you have been sold a bill of goods and bought in to some marketing ploy and they’ve convinced you are a settlement candidate.

It first starts with the review of your personal financial statement which is found on the 433 OIC.

When the offer in compromise gets sent in to the Internal Revenue Service it is met with the reviewer that make sure that you are truly qualified candidate for the offer in compromise program.

That reviewer checks the completed form to make sure it is a valid agreement. The offer in compromise is a legal document between you and the Internal Revenue Service. If IRS were to accept the offer and the next day you win the lottery the accepted offer still stands.

Also reviewer make sure that all the documentation is attached so that the revenue officer who will work your offer in compromise can move forward.

Approximately one third of all offers in compromise are sent back to the taxpayer because the offers are not filled out correctly or the appropriate documentation is not attached.

IRS will check to make sure all your tax returns are current and filed on the IRS system.It is critically important you know that you must have all tax returns filed before IRS will process your offer.

You should know that the Internal Revenue Service rejects an offer before it accepts an offer. one of the basic rules is that the revenue officer is lazy and is easier to mark rejected then they go through all the work of accepting an offer in compromise. I should know this is a former instructor of the offer in compromise I see many are revenue officers simply send offers back because some of the eyes were not dotted in the T’s were not crossed.

Due to the volume of cases the IRS has, which is over 7500 cases waiting in the IRS Q, is far easier for the IRS to say no then to accept because an average of anywhere between 20 and 40 hours are spent on accepting the offer in compromise. If you have an offer in compromise accepted, four signatures are generally required for signature as it goes up and down the chain.

So how do you know if the offer in compromise is right for you. Call for a free initial tax consultation and hear the truth from a true IRS tax debt settlement former agent.

The first place to go is to fill out the IRS pre-qualifier tool for the offer in compromise. Because of so many scrupulous tax companies that have been ripping people off, the IRS wanted to make sure the general public has a tool that they can use to find out if they are prequalified to file the offer in compromise to make sure it is a viable option.

It contains all the necessary information in regard to your income, your expenses and your assets and it predetermined for you whether the offer in compromise is even a viable option for you.

IRS will take a very close look at the liquidity of your assets, your current income, and your monthly expenses before it renders a decision as IRS wants to make sure it collects all the money from you that they can within the 10 year statutory period of time.

One of the questions the agent will want to consider is, can we collect more money over 10 years than accept the current agreement on the table for the IRS offer in compromise.

As a general rule, you will have to give IRS your total liquidity of all your assets before they will even consider the acceptance of an offer in compromise.

IRS on larger dollar cases is a tremendous amount of due diligence. The IRS has a wealth of information on the various computers they can use to dig and find assets or income.

Why? you may ask is because all offers in compromise are open for public inspections at eight regional offices throughout the United States.

Your offer in compromise must be thoroughly documented which includes all your bank statements for the last six months to a year, all your pay stubs, all your monthly expenses along with certain documentation for assets that have value.

IRS also takes a look at the values of your pensions, your IRA, your business as well.

The offer in compromise is one of the most reviewed documents, it is like going through a mini audit.

Some of the due diligence that IRS will conduct on a larger dollar cases is checking Google, the accurate search engine, Department of Motor Vehicles, real estate records, insurance policies, credit reports, loan applications, insurance policies, and inter-government agency records including those garnered by Homeland security and other such agencies.

Before you contemplate filing the offer in compromise and wasting your money on a company that has promised you they can settle your case for pennies on the dollar, you would be wise to give us a call to have an actual former IRS agent and teaching instructor of the offer in compromise give you the green light.

When you call our office you will speak to true IRS tax experts who knows the system and can tell you what to expect and tell you how to settle for the lowest amount possible.

Call us today for a free initial tax consultation, you will hear nothing but the truth from former IRS agents who know and understand the methodologies of the offer in compromise to make sure it is right for you.

 

How Do You Know the Offer in Compromise To Settle Back Taxes is Right for You + Former IRS Settlement Agent + Ft. Lauderdale, Miami, Palm Beaches, Boca Raton, Aventura

 

The Offer In Compromise + What You Need To Learn From Former IRS Agents, Offer Tax Experts

by | Nov 19, 2018 | Tax Help

Fresh Start Tax

 

Michael Sullivan, Offer in Compromise Tax Offer Expert at Fresh Start Tax, Former Agent

 

As a former IRS agent and teaching instructor with the Internal Revenue Service I used to teach the offer in compromise program to agents that were qualified to both work to process and accept offers in compromise.

I worked out a local South Florida IRS offices we have over 100 years of professional IRS work experience and over 200 years of professional tax experience in our offices.

Therefore, I know the system inside and out and when you call our office we will review your case with you and let you know before hand whether we will process your offer in compromise and take the case on.

We will never take any offer in compromise on that we do not believe will settle with the IRS.

One of the reasons the offer in compromise is the best way to settle your back tax that is simple it reduces your debt for pennies on the dollar and it removes the federal tax lien from your credit records.

The offer in compromise is a much more complicated process than taxpayers can possibly imagine. Much time is put in to the acceptance of an offer in compromise and IRS goes through great lengths of due diligence before it accepts an offer in compromise.

Below you will find out different aspects of the offer in compromise program you may not have been aware of so take heed.

1. All offers in compromise that are accepted are open to public inspection at rate eight regional IRS offices across the United States.

Believe it or not, only one person reviewed accepted offers in compromise at one regional site and to date this year, no one has reviewed any accepted offers in compromise.

2. It is much easier for an IRS agent to reject an offer in compromise into accepting why?, just sheer laziness, matter of fact an agent will look to reject an offer in compromise first as to accept it. It takes a lot more work to accept an offer in compromise because all the managerial reviews required.

3. An average offer in compromise takes anywhere between 20 to 40 hours to accept because of all the due diligence that is necessary for the program.

4. The offer in compromise group is a specialized group that goes through ask expansive training to understand the different nuances within the offer in compromise program and to make sure it legally can be accepted by the Internal Revenue Service.

5. The offer in compromise is a legal and binding contract between the taxpayer and the United States Department of treasury. it is wise for the taxpayer to become aware of the requirements if your offer is accepted. What I mean by this is that for the next five years you must pay all your taxes on time. Should you miss, your offer in compromise will kick back out to the field.

6. The smaller the dollar amount, the less work and effort is put into the offer in compromise. Large dollar cases require 2 to 3 times the amount of work that a small dollar case takes.

7. Last year, approximately one-third of offers in compromise were accepted by the Internal Revenue Service. As a general rule, somewhere between 30 and 35,000 offers are accepted every year. The average settlement dollar is $9500 per offer. That dollar amount is misleading because it is an average and is not really reflective because the OIC is based on a case-by-case basis.

8. The Internal Revenue Service has a number of financial search engines they use to check the offer in compromise for the validity of doing due diligence. They can use the Accuriant search engine, the Google search engine and internal governmental search engines such as LEXIS-NEXIS and other ones used by the Department of Homeland Security the FBI as well as other agencies to do checks.

9. Offers in compromise are accepted per formula. Therefore knowing the formula is the key to getting your offer in compromise accepted by the Internal Revenue Service. If you want to get your offer in compromise accepted you must go to an experienced tax practitioner who has worked at least 100 an offer in compromise to understand the complexity and the nature of the offer in compromise.

It only makes sense to have former IRS agents such as us who know the system inside and out to have the best chance to getting your offer accepted.

10. The base rule for the Internal Revenue Service is that you must give IRS your total liquid value as a base. The Internal Revenue Service generally will never accept anything less than your full liquid value. Also IRS is going to take a close look at your income versus your necessary living expenses ratios.

11. The average offer in compromise takes a minimum of nine months from the time their file to acceptance.

If you like to learn more call us today and we will review with you the offer in compromise program and find out if you’re a qualified candidate to get an offer in compromise accepted.

When  you call our office you will speak to true IRS tax experts regarding settlement of your tax debt on back taxes. We can also file any unfiled or past-due tax returns because the Internal Revenue Service cannot finalize your offer in compromise until all tax returns are filed.

 

The Offer In Compromise + What You Need To Learn From Former IRS Agents