Tax Debt Relief Company – Tax Relief Specialists – Attorneys, Former IRS Broward, Dade, Palm Beach County – Tax Experts 954-492-0088
Call us for a no cost professional tax consultation and stop the worry today. We have worked and resolved thousands of cases right here in South Florida since 1982. 954-492-0088
We are one of the highest rated tax debt relief firms not only in South Florida but the country. We have a A plus rating by the Better Business Bureau.
We are comprised of Tax Attorneys, Lawyers, CPA’s and Former IRS Agents.
We worked in the local South Florida IRS offices as well as the district and regional offices. We have over 60 years of combined experienced.We worked as managers , instructors and trainers as well as teaching Tax Law at the IRS.
We will go over all the different tax policies and tax procedures to completely and permanently resolve your tax debt.
Relief of IRS Tax Debt
IRS basically resolves tax debt in 3 ways.
After the IRS reviews and verifies your current financial statement and current state of affairs IRS will request all the document to verify the creditability of your information.
After that carefully review the IRS will recommend one of the three following tax relief programs:
1. Apply for a Tax Hardship Status,
2. Start making payments to the IRS via a installment plan,
3. Filing of an Offer in Compromise.
The Detailed information of a Offer in Compromise
An offer in compromise 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.
IRS will not accept an Offer unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential. The RCP is usually based on Assets and monthly income.
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 that has equity.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses per National Standards Charts.
The IRS may accept an OIC based on three grounds.
1. 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.
2. 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.
3. 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 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.
Different types of payment to the IRS for tax debt settlements – Offers
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. The tax law provides rules for “lump sum offers” and “periodic payment offers” submitted on or after July 16, 2006.
A lump sum offer is defined as an offer payable in 5 or fewer installments. 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 to the IRS is required in addition to the $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.
The 20 percent amount will be applied to the your tax liability.
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more installments. 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 $150 application fee.
Non- Refundable
This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer.
While you are in Offer status
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.
Tax Debt Relief Company – Tax Relief Specialists – Attorneys, Former IRS – Broward, Dade, Palm Beach County – Tax Experts
