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 | Oct 16, 2012 | IRS Notice or Letter, Representation, Tax Levy and Wage Garnishments
Tax Levies, Tax Garnishment & Tax Liens – Get Removed or Released by calling Former IRS agents – Fresh Start Tax LLC
We are a local Tax Firm located in Upper Montclair.
We are comprised of Tax Attorneys, CPA’s and Former IRS agents who have over 60 years of experience working directly with the IRS.
Why use Fresh Start Tax LLC
Being Former IRS Agents, Managers and Instructors we know exactly what the IRS formulas and settlement techniques are in settling their cases. We know the exact way IRS will close your case based on your unique situation.
The IRS files 3.8 million levies each year and 980,000 Federal Tax Liens.
If you have any type of IRS tax problem including tax levies, tax garnishments or tax liens it only makes sense to call former IRS Agents, Managers and Instructors.
We can get IRS tax levies and tax garnishment released within the week you call as a general rule. Once Fresh Start Tax has a detailed financial statement we can not only get your tax levy or tax garnishment released or removed, we can also settle your case.
Most of these enforcement actions occur because taxpayers failed to follow up on IRS notices and letters giving the IRS no choice but to follow up with enforced collections.
Once we are retained by a client and secure a documented financial statement, that very day we can get a levy released.
Call us today to find out more 1-866-700-1040.
The following is a detailed outline of the IRS collection process.
If you do not pay in full when you file your tax return, you will receive written notice from the IRS of the amount you owe, a tax bill from the IRS.
This bill or tax notice starts the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax. Notices or letters are sent out in 5 weeks cycles.
First Notice.
The first notice you receive will be a letter that explains the balance due and demands payment in full. It will include the amount of the tax, plus any penalties and interest added to your unpaid balance from the date the tax was due.
You may pay the amount due by sending the IRS a check or money order, payable to the United States Treasury, with a copy of the notice. Over 25 million taxpayers cannot pay that notice.
If you cannot pay in full, you should send in as much as you can with the notice.The unpaid balance is subject to interest that will compound daily and a monthly late payment penalty.
It is always in your best interest to pay your tax liability in full as soon as you can to minimize additional charges.
You also may want to investigate and consider other methods of financing full payment of your taxes, for example by obtaining a cash advance on your credit card or a bank loan because the interest rate and any applicable fees your credit card company or bank charges may be lower than the combination of interest and penalties imposed by the Internal Revenue Code.
Many persons have no way to finance the IRS debt so the IRS has a program to deal with the back taxes.
Paying off your IRS tax debt by using other financial methods also may keep your tax debt from negatively affecting your credit rating.
If you cannot pay in full.
If you are unable to immediately pay your balance in full, IRS may be able to offer you a monthly installment agreement.
If you cannot full pay under an installment agreement you may propose an Offer in Compromise (OIC). An OIC is an agreement between a taxpayer and the IRS that resolves the taxpayer’s tax liability by payment of an agreed upon reduced amount.
If you are unable to pay anything because of a current financial hardship, IRS may temporarily suspend certain collection action, such as issuing a levy , until your financial condition improves. This action is called putting your case in hardship.
The IRS may, however, file a Notice of Federal Tax Lien while your account is suspended. Remember the interest and late payment penalties will continue to accrue while collection is suspended.
Some of the actions IRS may take to collect taxes include:
a. Filing a Notice of Federal Tax Lien
b. Serving a Notice of Levy, or ( bank levy or wage garnishment levy )
c. Offsetting a refund to which you are entitled
The federal tax lien is the IRS legal claim to your property, including property that you acquire after the lien arises.
The federal tax lien arises automatically when you fail to pay in full the taxes you owe within ten days after we send our first notice of taxes owed and demand for payment.
The government also may file a Notice of Federal Tax Lien in the public records.
The Notice of Federal Tax Lien publicly notifies your creditors that the IRS has a claim against all your property, including property acquired by you after the Notice of Federal Tax Lien is filed.
The filing of a Notice of Federal Tax Lien may appear on your credit report and may harm your credit rating. Once a lien arises, the IRS generally cannot release the lien until the taxes, penalties, interest, and recording fees are paid in full or until the IRS may no longer legally collect the tax.
The IRS will withdraw a Notice of Federal Tax Lien if the Notice was filed while a bankruptcy automatic stay was in effect. The IRS may withdraw a Notice of Federal Tax Lien if the IRS determines that
(1) the Notice was filed too soon or not according to IRS procedures;
(2) you enter into an installment agreement to satisfy the liability unless the installment agreement provides otherwise;
(3) withdrawal will allow you to pay your taxes more quickly; or
(4) withdrawal is in your best interest, as determined by the National Taxpayer Advocate, and the best interest of the government.
The IRS also may use a levy to collect taxes. The IRS may levy assets such as wages, bank accounts, Social Security benefits, and retirement income.
The IRS also may seize any of your property for the purpose of selling the property to satisfy a tax debt including your car, boat, or real estate. In addition, any future federal tax refunds or state income tax refunds that you are owed, may be applied to your federal tax liability.
Call us today for a no cost professional tax consultation. 1-866-700-1040.
