Wednesday, August 16, 2017

Five Best Steps For An IRS Tax Settlement - Offer in Compromise - IRS Tax Attorney

IRS TAX SETTLEMENT

OFFER IN COMPROMISE

Income tax issues with the IRS are a serious financial problem. This is largely due to penalties and interest accruing over time. 

What was once a small $1500 tax debt, may balloon to $2500 or more. Due to IRS penalties and interest, an IRS income tax debt can double in approximately 4 1/2 years. 

You can be sure, the IRS will not forget the income tax debt that you owe. The Automated Collection Systems (ACS) are built to ensure collection actions are swift and efficient. IRS Collections efforts begin with IRS notices and, eventually will lead to seizure action (tax liens, bank levies, wage garnishments, etc). 

IRS enforcement seizure proceedings are complex and costly to the taxpayer. It is important to resolve your income tax debts before the enforcement process begins.

ONCE IRS ENFORCEMENT ACTION STARTS, BE SURE TO HAVE AN IRS TAX ATTORNEY REPRESENT YOU



LET'S GET STARTED WITH THE STEPS OF 
IRS SETTLEMENT

Step 1: Verify How Much You Owe

Don’t assume the amount reflected on the IRS notice is the what you actually owe. The Internal Revenue Service does make many mistakes. In fact, it is your responsibility to prove to the IRS what you owe. 

Before you do anything, you will need to check your income tax files and compare your numbers against the IRS collection notice. The amounts might be different because of penalties and interest, so don’t look for exact numbers. 

If you can’t make sense of it, call the IRS Tax Help Phone at Flat Fee Tax Service, Inc. The best IRS help team at Flat Fee Tax Service, Inc. can figure this out for you very quickly.

IRS Tax Tip: If you did not file a federal income tax return for the year in question, the IRS may have filed what is called a Substitute for Return. A Substitute for Return is NOT A TAX RETURN.  

A Substitute For Return (SFR), usually calculates a higher income tax than, if you were to file on your own. A Substitute for Return provides the IRS with a debt that the IRS can collect.

A SUBSTITUTE FOR RETURN CAN BE CHALLENGED AND AN ACTUAL FEDERAL TAX RETURN CAN BE FILED. 

Step 2: Recalculate Your Back Tax Return(s)

Taxpayers make errors and/or omissions on their income tax return(s), resulting in a superficial tax debt. You want to know what to look for when recalculating your tax return. IRS Code experience is key here. How is your IRS Code knowledge for that specific year?

If after recalculating your tax return, you determine no taxes are owed, congratulations! You just resolved your back tax problem at little or no cost. In addition, the penalties and interest you may have owed, are no longer applicable. All that’s left for you to do, is mail your tax return and follow up with the IRS in a month or so.

If after recalculating your tax return, you can establish that you owe back taxes, proceed to Step 3.

IRS Tax Tip: Form 1040X (Amended US Individual Tax Return) may not be sent electronically. Only original returns may be filed over the internet.

Step 3: Determine How Much You Can Afford Towards Back Taxes

Now that your income tax debt has been verified (Steps 1 & 2), you must evaluate your finances. You either have the money to pay off your income tax debt or you don't. 

THIS IS WHEN YOU SHOULD BE CONSIDERING AN 
IRS SETTLEMENT

Paying an income tax debt is going to affect your standard of living. How much can you pay a month, if you can’t pay the debt of in full? You need to figure this number out, before contemplating any IRS payment plan or IRS tax settlement. 

Paying off an income tax debt, in whole or parts, should not put you and your family out on the street.

95% OF FLAT FEE TAX SERVICE, INC. CLIENTS HAVE HAD A SUCCESSFUL 
OFFER IN COMPROMISE

It is important to note, if paying off your income tax debt creates a financial hardship, you may very well qualify you for an Offer In Compromise.

Step 4: I HAVE The Money To Payoff My Back Tax Debt (Otherwise Skip to Step 5)

Since you have the money, you can resolve your back tax issues. Pay off the tax debt as soon as possible. You need to stop the penalties & interest from accruing against your back taxes. 

The IRS interest rate for 2017 is 4.25% per year, which does NOT include the bigger penalties imposed by the IRS; “failure to pay penalty” or “failure to file penalty”.

IRS Tax Tip: If your income tax debt is substantial, you should weigh out the cost-benefits of hiring an IRS tax settlement firm. 

The IRS Tax Attorney(s) at Flat Fee Tax Service, Inc. may be able to help you reduce penalties and interest, which could end up saving you thousands of dollars.
Step 5: I DO NOT Have The Money

NOW WE ARE TALKING ABOUT AN IRS SETTLEMENT OR BEING DECLARED CURRENTLY NOT COLLECTIBLE

Proceeding from here will vary from taxpayer to taxpayer.

Tax Debt Owed: is between $1500 ~ $8500 (No Financial Hardships):

DON'T WASTE YOUR MONEY

With these back tax amounts, we don’t recommend engaging with a tax relief company. It doesn't make financial sense to hire an IRS tax resolution company. 

The cost benefit to you just isn’t there. We would recommend having a tax professional take a look at your tax returns; if you have not done so already (as indicated in Step 2). Having a professional tax consultant review a return should not cost more than, $100 to $500.
Once the back income tax amount is verified, you can use Form 9465 Installment Agreement Request to initiate process. Remember, only go for this option if, you don’t have a substantial financial hardship. (i.e low-income, death, disability, etc).
Tax Debt Owed: is $8500+ (No Financial Hardships):

If you owe at least $8500 or more to the IRS, you might want to have an IRS tax professional look things over. Specifically, you want to engage with a tax settlement firm that specializes in back tax resolutions. 

The reason for this recommendation is simple, it may save you a lot of money. The larger the debt, the higher our recommendation. 

Two ways they can save you money:
An IRS tax settlement firm knows how to negotiate an installment agreement that works for you. You want a monthly payment that is affordable. If the IRS pushes back on a monthly payment that you feel is affordable, your settlement firm should be able to push back.  
Knowledge of the IRS Code and experience comes into play with all IRS negotiations.
It is not guaranteed but, a tax settlement firm might be able to remove penalties and interest from your back tax bill. Depending on how much you owe, saving money on penalties and interest could, greatly outweigh the costs of professional back tax help. Not to mention, they do all the work for you.

I DO NOT Have the Money (Do-It-Yourself):

Obtaining an IRS tax settlement, can be accomplished on your own. When it comes to taxes, the IRS likes individuals to handle things themselves. Why, you may ask? 

 YOU DON'T KNOW THE IRS CODE AND YOU DON'T HAVE ANY IDEA WHAT YOUR RIGHTS AND OPTIONS ARE.

Again, if the amount you owe is substantial, it is highly recommend ed you have an IRS Tax Attorney handle your IRS negotiations. 

IRS financial hardship cases are complex and require a lot of experience to get it done right. If after considering these points, you decide to settle your taxes on your own, you need to familiarize yourself with all the Fresh Start options. 

We further recommend you contemplate why those options exists and determine where you fit in. We recommend reading the IRS Code before you started. 

CALL THE BEST IRS TEAM AT FLAT FEE TAX SERVICE, INC. FOR YOUR FREE AND CONFIDENTIAL CONSULTATION

FLAT FEE TAX SERVICE, INC.

IRS TAX HELP PHONE:

1-800-589-3089

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