Wednesday, July 13, 2011

IRS Offer in Compromise Explained - Settle With The IRS for Less

Do you qualify for an IRS settlement through the Offer in Compromise program depends on many factors. While this is something that many taxpayers are interested in, not all of you taxpayers will qualify. In fact, only 10 to 15 percent of all offers are accepted.
REASONS FOR DISQUALIFICATION
The main reason that taxpayers fail to have their Offer in Compromise approved is because they did the paperwork themselves and the IRS kicked out their Offer as "un-processable." In other words you did not "dot the "i's" and you did not cross the "t's."
The 2nd reason is that the taxpayer offered a "low ball" amount, thinking they were negotiating with a credit card company. An Offer in Compromise is not a back and forth negotiation. It is based on a financial formula. The Offer amount has to be "right on the money."

If you are interested in an IRS compromise you must first determine your eligibility. If you feel that you need tax relief from this settlement method, you should feel comfortable moving forward.

Below are the three circumstances in which an Offer in Compromise may be considered:

  1. There is a doubt that your tax liability will be collected in the near future. The IRS classifies this as doubt as to collectibility. For a "Doubt as to Collectibility Offer in Compromise", the IRS will consider the following questions: will the IRS be able to collect more through forced collections than by accepting a compromise settlement? Will it make sense for the IRS to let you, the taxpayer, get your finances in order with the hopes of collecting taxes in the future.
  2. There is doubt that your assessed tax liability is correct. For example, an IRS examiner may have made a mistake when assessing the tax as well as  penalties and interest. This is known as doubt as to liability. 
  3. Financial hardship (usually for elderly taxpayers who have some equity). Would the taxpayer be put in a very bad financial position if the collection process begins? Think "elderly and on Social Security." If so, the IRS may decide to accept an offer in compromise as opposed to forced collections. This is known as Effective Tax Administration.

MORE THAN LIKELY

YOUR

OFFER in COMPROMISE

WILL BE FOR

DOUBT AS TO COLLECTIBILITY

Does your situation match one or more of those listed above? If so, you have the opportunity to have your Offer in Compromise accepted by the IRS. Here are several other requirements needed to qualify: you cannot be going through bankruptcy; all federal tax returns must be filed; you must pay the application fee of $150 for the offer to be processed; and all documentation must be submitted.

Are you confused as to whether or not you are eligible to settle with the IRS? Are you having a difficult time determining if you qualify for an IRS Offer in Compromise? If this is the case, you should consult with a tax professional who has past experience in the area of tax settlement. By getting professional help you can determine if you qualify for an IRS settlement through the Offer in Compromise while also moving forward with the process itself.

You are not required to hire a tax professional to submit an Offer in Compromise, but it definitely makes sense for most people. The assistance that you receive is well worth any money that you have to pay out.

THE IRS IS A PROFESSIONAL COLLECTION AGENCY

WITH BROAD POWERS

The IRS will always be looking to reject your Offer in Compromise filing because the IRS is tasked with collecting money for a "broke" Federal Government. The IRS must follow their own rules and regulations, including those that are designed for a taxpayer to be able to settle their back tax liability. 

The IRS will look to reject your settlement offer as "un-processable." If you do not dot the "i's" and cross your "t's", the IRS will send your Offer in Compromise back faster than you can "shake a stick."

If you try and "low ball" your Offer, the IRS will reject your settlement offer. The IRS has a financial formula and if your Offer is not "right on the money", your settlement offer will be rejected.

If you fail to provide all of the documentation requested by the IRS, your settlement offer will be rejected.

If you fail to meet a deadline, your settlement offer will be rejected.



What do you think? Do you qualify for an IRS offer in compromise? If you don't know the answer, speak with a an experienced IRS tax professional. If you are struggling to make "ends meet," you probably are eligible for an Offer in Compromise. 

GET A FRESH START

If you qualify for an IRS settlement through the Offer in Compromise program, it makes good sense to consider consulting with an experienced IRS tax professional. Settling your tax liability for less than the total amount can quickly improve your tax and overall financial situation.


I am Dave Rosa, the V. P. of Client Relations at Flat Fee Tax Service, Inc. I will be conducting your confidential consultation regarding your IRS problem. It is my duty to you, as well as Flat Fee Tax Service, Inc., to provide you with an honest and straightforward evaluation. We will let you know if you are qualified and eligible for an IRS settlement of your tax liability through the Offer in Compromise program. We do not hire salespeople. We strive to keep our costs as low as possible so that we may pass on our savings to our clients.

At Flat Fee Tax Service, Inc., we are constantly seeking the best options for our clients who are in need of settling their back tax liability. Many struggling taxpayers have heard about the Offer in Compromise program which is a tax settlement program between the consumer and the IRS. You may not know all the facts about regarding an Offer in Compromise. 

Below is a great question by a client of Flat fee Tax Service, Inc. that addresses most people’s concerns regarding the Offer in Compromise program.

Question: My friends warn me about tax scams and unscrupulous people who claim they can eliminate tax debt. That’s why I worry when I read about the Offer in Compromise. Is this a scam too?

Answer: The simple answer: No! It’s true that scams artists operate in the debt-elimination business – whether they’re claiming to be able to eliminate tax debt or credit card debt. Flat Fee Tax Service, Inc. is certainly not a scam artist, and indeed, my colleagues who also negotiate Offers in Compromise with the IRS aren't either.

The Offer in Compromise is a legitimate option for consumers who, for various reasons, are unable to pay their back tax liability. While you have to meet certain eligibility requirements, you have to be able to show, for example, that you are financially incapable of paying your back tax debt, even over time. The Offer in Compromise program allows you to settle your tax debt once and for all.

Question: So why does the IRS offer this settlement program? 

Answer: Because the Offer in Compromise program simply makes good business sense. When confronting a taxpayer who is unable to pay their tax liability, the IRS has two options: chase you down indefinitely for the full amount or negotiate a settlement. It turns out that negotiating a settlement results in greater tax revenue for the IRS, and so when a taxpayer qualifies for the Offer in Compromise, the IRS gives it serious consideration. 

A successful Offer in Compromise will reduce your tax debt by a significant amount.




Keep in mind that the Offer in Compromise program is not your only option. If you do not qualify for the Offer in Compromise, you may want to consider a Penalty Abatement of your penalties and interest or an Installment Agreement, which will allow you to pay your tax debt over time by making monthly installment payments toward your back tax liability.

NEARLY EVERYONE CAN AFFORD

TO SETTLE WITH

THE IRS

IRS Wage Garnishment removal services up to $1900Offer in Compromise - Full Service - Tax Help
If you owe the IRS between $10K and $100K; pay only $1900 for full tax service which includes IRS Levy/IRS Wage Garnishment removal, IRS Offer in Compromise or IRS Penalty Abatement.


CAN YOU AFFORD 

$300 RETAINER

AND 

8 MONTHLY PAYMENTS

OF $200

If you can afford our very reasonable monthly fees, Flat Fee Tax Service, Inc. will stop an IRS Levy and complete your Offer in Compromise.

WHY FLAT FEE TAX RELIEF FOR YOUR OFFER in COMPROMISE
• Experienced Tax Attorneys
• Lower fees - higher value
• Integrity, credibility, personal service & results
• No Salesman - No Pressure - No Complaints

FLAT FEE TAX RELIEF OFFER in COMPROMISE FEES ARE:
• Fixed with no hidden charges
• Payable in monthly installments
• Low initial payment to begin work 
• Always competitive - Always affordable 

FLAT FEE TAX HELP - Good People - Doing Great Work

FLAT FEE TAX HELP - Christian Values

FLAT FEE TAX HELP - No Complaints

THE FLAT FEE TAX SERVICE

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1 comment:

  1. Struggling to make ends meet? Have a tax liability? Are you receiving notices from the IRS? If you answer yes to these questions, you need to look at an IRS settlement through the Offer in Compromise program.

    ReplyDelete