Back Taxes – How to get your Best Settlement Deal with the IRS 1-866-700-1040
If you want to know how to get your best settlement deal with the Internal Revenue Service you want to talk to former IRS agents who used to work the offer in compromise program with the Internal Revenue Service.
Being former IRS Agents we know the exact formula and settlement procedures that will be used by the Internal Revenue Service. We guarantee that we can get your best settlement deal because we taught the program at the IRS.
58,000 taxpayers filed for an IRS tax debt settlement last year and of those some 18,000 offers in compromise were accepted by the Internal Revenue Service.
The reason the acceptance rate is up is because IRS is loosening up the standards for the offer in compromise program.
The average settlement time is between six and nine months and the average settlement dollar is $.14 on the dollar.
However do not let the $.14 on a dollar fool you.
This is no more than an average. Each case is unique and completely depends on your individual situation.
New IRS Settlement Program
The IRS has expanded its “Fresh Start” initiative by offering more flexible terms to its Offer-in-Compromise Program.
These newest rules enable some financially distressed taxpayers to clear up their tax problems even quicker.
An offer-in-compromise (OIC) is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to determine the reasonable collection potential.
This expansion of the “Fresh Start” initiative focuses on the financial analysis used to determine which taxpayers qualify for an Settlement Deal.
Here are some of the Settlement changes:
Revising the calculation for a taxpayer’s future income The IRS will now look at only one year (instead of four years) of future income for offers paid in five or fewer months; and two years (instead of five years) of future income for offers paid in six to 24 months.
All OICs must be paid in full within 24 months of the date the offer is accepted.
Allowing taxpayers to repay their student loans Minimum payments on student loans guaranteed by the federal government will be allowed for the taxpayer’s post-high school education. Proof of payment must be provided.
Allowing taxpayers to pay state and local delinquent taxes.
When a taxpayer owes delinquent federal and state or local taxes, and does not have the ability to fully pay the liabilities, monthly payments to state taxing authorities may be allowed in certain circumstances.
Expanding the Allowable Living Expense. Allowance Standard allowances incorporate average expenses for basic necessities for citizens in similar geographic areas. These standards are used when evaluating installment agreement and offer-in-compromise requests. The National Standard miscellaneous allowance has been expanded. Taxpayers can use the allowance to cover expenses such as credit card payments and bank fees and charges.
The New Streamline Settlement Program
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate.
In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements.
An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.
The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
How to Get the Best Settlement Deal with the IRS
The Internal Revenue Service uses very specific standards to settle IRS tax debt.
If you are unfamiliar with the standards used by the Internal Revenue Service you will have no way of knowing how low the Internal Revenue Service will go. With that said there is a formula that is used.
The Settlement deal formula is comprised of two factors, assets and income.
IRS will want to know what your total liquidation value of the total sum of all your assets including pensions, equities in homes and all personal assets.
IRS will conduct an income to expense ratio to find out if you have any disposable income left over after the national and regional standards are applied.
If you are not familiar with the IRS national and regional standard tests you need to be. This is a very critical element of the settling process because should the IRS finds that you have disposable income left over after the national and regional standard tests are applied the IRS will multiply that monthly overage times 12. Just for the record the national and regional standards of the same standards that are set up by the United States trustee for bankruptcy and other government agencies in regard to reasonable standards and financial cases.
IRS will then add up your total equity that you have in all your assets plus the disposable monthly income left over times 12 and that will comprise your offer compromise settlement number to the Internal Revenue Service.
IRS will generally accept no less than that figure unless some unusual hardships exist.
The Pre-Qualifier Tool for Settlements
IRS has made a much easier for taxpayers to settle with the Internal Revenue Service by now using a pre-qualifier tool that you can find our website. It is best for every taxpayer to walk to the pre-qualifier tool to find out for themselves if they can if they are a legitimate settlement candidate.
There are so many little factors that can reduce your settlement offer to settle for less with the Internal Revenue Service. There are many monthly expenses it can be included in your offer in compromise at the Internal Revenue Service will not tell you about.
Unless you’re a tax expert in the field you will not know the smaller things that can help reduce your offer to settle for less. Yes, we know the loopholes.
After working thousands and thousands of cases and being tax experts in settling with the Internal Revenue Service we will conduct a free tax analysis to let you know what the very best deal that you will get to settle for less.
Unless you’ve either work for the Internal Revenue Service or filed hundreds and hundreds of offers in compromise it would be absolutely impossible to let any taxpayer no just how low the IRS will go.
Being former IRS agents we know all the standards, all the protocols, all the settlement boundaries, and all the applicable standards that will be of plight against every single case.
The National Standards (you can find these on our website)
Collection Financial Standards are used to help determine a taxpayer’s ability to pay a delinquent tax liability.
Allowable living expenses include those expenses that meet the necessary expense test. The necessary expense test is defined as expenses that are necessary to provide for a taxpayer’s (and his or her family’s) health and welfare and/or production of income.
National Standards for food, clothing and other items apply nationwide.
Taxpayers are allowed the total National Standards amount for their family size, without questioning the amount actually spent.
National Standards have also been established for minimum allowances for out-of-pocket health care expenses.
Taxpayers and their dependents are allowed the standard amount on a per person basis, without questioning the amount actually spent.
Maximum allowances for housing and utilities and transportation, known as the Local Standards, vary by location. In most cases, the taxpayer is allowed the amount actually spent, or the local standard, whichever is less.
Generally, the total number of persons allowed for necessary living expenses should be the same as those allowed as exemptions on the taxpayer’s most recent year income tax return.
If the IRS determines that the facts and circumstances of a taxpayer’s situation indicate that using the standards is inadequate to provide for basic living expenses, we may allow for actual expenses.
However, taxpayers must provide documentation that supports a determination that using national and local expense standards leaves them an inadequate means of providing for basic living expenses.
Contact us today if you have any back tax issues with the Internal Revenue Service. Due to our years of experience at the Internal Revenue Service we can assure them guarantee you that we can get your best settlement deal from the IRS.
All tax consultations are free, we are A+ rated by the Better Business Bureau have been in practice since 1982.
Back Taxes IRS – How to get your Best Settlement Deal with the IRS
