Monday, January 16, 2017

Can You Really Settle Your Tax Debt with the IRS for Pennies on the Dollar? IRS Tax Attorney Answers

IRS TAX ATTORNEY AND IRS SETTLEMENTS


It's not so easy to get the IRS to settle a tax debt for pennies on the dollar. It does happen, as approximately 42% of the Offer in Compromise applications are approved by the IRS. The IRS will settle in cases where a taxpayer clearly does not have the assets and/or income to pay off the tax debt in a reasonable time. 

90% of the clients at Flat Fee Tax Service, Inc. who have submitted an Offer in Compromise, have been successful. Our IRS Tax Attorneys know who is eligible and qualified and who isn't. The best IRS help team at Flat Fee Tax Service, Inc. will provide you with an honest assessment of your situation and provide you with all of your options.



If you are a median income earner or less and have no assets that can be applied to your income tax debt, you are probably eligible and qualified to settle with the IRS. 

If you have the money on hand to pay the IRS or will likely have it in the future no amount of negotiating will convince the IRS to settle for less than you owe. This is so whether you represent yourself or hire a high-priced law firm.

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. 

The IRS will accept your Offer in Compromise when its is proven to the IRS that:

(a) you aren't able to pay the full amount in a reasonable time, either as a lump sum or over time through a payment agreement
there is doubt as to the amount of your tax liability (unusual), 

(b)or due to exceptional circumstances, payment in full would cause an "economic hardship" or be "unfair" or "inequitable” for example, you can’t work due to health problems, or you’d be left with no money to pay your basic living expenses if you sold your assets to pay your tax bill in full.

To make this determination, the IRS has a financial formula that looks at your income and assets to determine your "reasonable collection potential" (RCP). You, the taxpayer, must provide detailed information about your financial situation on IRS Form 433-A (individuals) or Form 433-B (businesses), Collection Information Statement. 

This will include verifiable information about your cash, investments, available credit, assets, income, and debt. In addition to property, the RCP also includes your anticipated future income, less amounts allowed for basic living expenses. 

CALL THE IRS HELP PHONE

1-800-589-3078

FIND OUT IF YOU QUALIFY TO SETTLE

You will need to come up with a minimum offer amount as part of your Offer in Compromise. This is the minimum amount the IRS will accept and is based on the financial disclosures you make in your Form 433. Basically, your Offer in Compromise must equal the net realizable value of your assets plus your excess monthly income after subtracting your monthly expenses.

Before you submit your settlement offer to the IRS, you must (1) file all tax returns you are legally required to file (you need to be compliant), (2) make all required estimated tax payments for the current year, and (3) make all required federal tax deposits for the current quarter if you are a business owner with employees.

If you or your business is currently in an open bankruptcy proceeding, you are not eligible to apply for an Offer in Compromise. Your debts need to be resolved in your bankruptcy proceeding. That's what bankruptcy is for.

The Offer in Compromise Booklet, Form 656-B (PDF) has step-by-step instructions for preparing and submitting all the necessary forms for an Offer in Compromise. 

KNOW THIS: THE IRS WILL BE LOOKING FOR ANY MISTAKE THAT YOU MAY MAKE ON YOUR FORMS SO THAT THEY CAN REJECT YOUR SETTLEMENT OFFER.

YOU SHOULD HAVE AN IRS TAX ATTORNEY PREPARE YOUR OFFER IN COMPROMISE.

CALL THE IRS TAX HELP PHONE:

1-800-589-3078

FLAT FEE TAX SERVICE, INC.



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