The tax professionals and IRS Tax Pros at Flat Fee Tax Service have years of experience in negotiating Offer in Compromise settlements. We provide tax debt help throughout the United States. Working with our tax professionals substantially improves your Offer in Compromise process. Eliminate stress and uncertainty while getting the lowest settlement amount possible by working with Flat Fee Tax Service.
THE CLIENTS OF FLAT FEE TAX SERVICE HAVE A 96% OFFER IN COMPROMISE SUCCESS RATE. ON AVERAGE, OUR CLIENTS SAVE 95% OF THEIR TAX DEBT.
If you are struggling to pay your back taxes, you may qualify for an Offer in Compromise. This program may allow you to settle back taxes or IRS liability at a substantial discount on the basis of doubt of liability, collect-ability or effective tax administration.
Nearly all successful tax settlements through an Offer in Compromise are due to the inability of the taxpayer to pay their tax debt after paying their daily allowable expenses.
Established by the Internal Revenue Service, the Offer in Compromise Program is a formal application to the IRS requesting that it accept less than full payment for what you owe in taxes, interest, and penalties. This out of court agreement negotiates your back taxes and places collection efforts on hold and prohibits the IRS from instituting a tax levy of your assets and wages.
While it is possible to submit an application yourself, many people complete the forms incorrectly, overstate their assets and income, and offer too much. IRS figures show that 75% of offers are returned immediately due to incorrect forms. Of the 25% that are processed, approximately 50% are rejected. This is why it’s important to work with an experienced tax consultant throughout your Offer in Compromise process.
I am Dave Rosa. It is my pleasure and duty to provide you with a comprehensive evaluation of your IRS problems. Our conversation will take 20 to 30 minutes of your time. By the time our consultation ends, you will know if an Offer in Compromise will solve your tax debt problem.
An Offer in Compromise is an IRS tax Settlement: The good, the bad, and the ugly.
There are many positives and negatives to deciding whether an Offer in Compromise is the right next-step in resolving your IRS debt.
One thing is for sure: An Offer in Compromise (a/k/a OIC) is not a one-size-fits-all affair. There are many factors to think about before attempting to settle with the IRS.
A successful tax settlement can put a smile on your face and have you jumping for joy (the IRS said yes and your tax debts are over!).
Or, like “all things IRS” the IRS, an Offer in Compromise (OIC) can leave you a little frustrated as it requires an understanding of how to navigate though the IRS settlement guidelines that often have no fairness or reason.
What you want, though, is to know what to expect, and to make a fully informed decision about whether the IRS compromise process is right for you.
Here, then, are the good, the bad, and the ugly of an Offer in Compromise:
An OIC can be as advertised – a fresh start from your IRS debt.
No more looking over your shoulder with fear of an IRS seizure of your wages or bank accounts.
Improved credit score – after an offer in compromise is complete, the IRS will release all tax liens filed against you.
IRS collections are put on hold while the Offer in Compromise is investigated. After acceptance, you will have peace from IRS certified mail letters, visits from IRS Revenue Officers and wondering what’s around the corner.
You have put the IRS behind you and can buy a house, a car, and save for retirement.
The Bador not so good:
The IRS will do a comprehensive investigation of your finances before settling, requiring completion of their Form 433A or 433B to disclose your income, expenses and assets.
You will have to tell the IRS where you work and bank, and list your assets, including your house, cars, valuables and retirement accounts.
Verification will be required, including an IRS review of your paystubs, tax returns, bank statements, business profit and loss, and proof of payment of your monthly bills.
While an Offer in Compromise is being reviewed, the IRS timeline to collect from you (10 years), stops running. In that regard, it can be a bad idea to try to settle when only a few years remaining for the IRS to collect.
After acceptance, the IRS will put you on a five year probation, requiring full compliance in filing and payment of all taxes. Not performing to IRS expectations going forward will default the settlement.
The Ugly (Not all that ugly)
An Offer in Compromise is not a quick fix – a settlement offer can take the IRS a minimum of 9-12 months to investigate, with another 6 months if appeal is needed; the IRS then allows 5-24 months to pay the tax settlement.
The IRS has guidelines that can impose their will over yours on budgeting matters. Making credit card payments, or have a high monthly mortgage or car loan? Forget it, the IRS may want that money in their settlement calculations.
If the IRS determines they can collect the amount you owe, your settlement offer will be turned down (with appeal rights).
The IRS does not have an open door policy on offers. It is not a handshake deal – the settlement amount is not based on fairness but collectibility of the debt.
The IRS most recently rejected 60% of the offers it received, consisting of 41,000 rejections out of 68,000 submissions.
FLAT FEE TAX SERVICE HAS A 96% OFFER IN COMPROMISE APPROVAL RATE
It is easy to be lead to believe how simple it all is. And make no mistake, an Offer in Compromise can be a wonderful way to rid yourself for good of the IRS. But like the Clint Eastwood film, you need to know the good, the bad and the ugly to make sure that an OIC is the right move for you.
And keep in mind that there are other tax relief options – a settlement compromise is not the only way to clear the IRS out of your life. The IRS can agree that you owe the tax debt but not force you to repay it (known as being Currently not Collectible, where the IRS puts you in their bad debt category and leave you alone). The IRS has 10 years to collect taxes – maybe you let the time frame expire (Statute of Limitations) rather than compromising.
I am Dave Rosa. It is my responsibility and my pleasure to provide a thorough, comprehensive and free consultation. Our conversation will take 20 to 30 minutes.
At the end of our conversation, you will have a complete understanding how you tax problem can be relieved.
Offer in Compromise – Tax Settlement – Settle with the IRS for Less
The IRS has a tax settlement program known as an Offer in Compromise (OIC) which provides financially distressed taxpayers an opportunity to settle their tax debts, including interest and penalties, for a lump sum which is less than the total amount of your tax debt. Some tax debt companies advertise (usually on late night cable tv) this as if it is a brand new or limited time program. In fact an Offer in Compromise has been around since the 1954 version of the Internal Revenue Code. It is true, however, that over the years the IRS has, at least based upon its official guidelines, become more lenient. Nevertheless, except for cases where the taxpayer is truly and irreparably broke, it will require expertise and hard work to convince the IRS that an Offer in Compromise is the appropriate tax settlement solution.
The amount of the Offer in Compromise will vary depending upon your income, assets, liabilities, and future income prospects. Current IRS guidelines allow for the tax settlement to be paid in several installments over a period as long as two years, however, the total payments are higher for a lump sum Offer in Compromise. Many Flat Fee Tax Service clients have paid $100 to $500 to settle with the IRS.
A TAXPAYER DOES NOT NEED TO BE “DESTITUTE” TO QUALIFY TO ACHIEVE A SUCCESSFUL OFFER IN COMPROMISE.
One fact which some tax resolution companies fail to properly explain to new clients it that if the entire amount of the tax, plus accrued interest and penalties can be paid over the remaining life of the collection statute of limitations, the IRS will not consider accepting the Offer in Compromise. This results in a very strange phenomenon. In some situations, the more you owe, the more likely it is that the IRS will accept an Offer in Compromise.
CURRENTLY THE IRS HAS BEEN APPROVING APPROXIMATELY 42% OF THE
Our tax lawyers have found that the negotiation of an Offer in Compromise (OIC) is a lengthy process usually takes 10 to 12 month to complete. While the IRS is processing the Offer in Compromise submission, the IRS must leave you alone. If the IRS fails to reject or accept the Offer in Compromise during a two-year period, the tax settlement will be deemed to be accepted. During the time the OIC is pending, the IRS will not require any payments on old taxes. However, during the time an OIC is pending, you must pay all of your current taxes as they become due, including any quarterly estimated income tax payments and federal payroll tax deposits. If you fail to do so, the IRS will immediately reject your OIC and you will not be entitled to any appeal rights. Furthermore, your deposit, discussed below, will be applied to your taxes and if you wish to make a new Offer in Compromise, you will need to make an additional deposit.
At the time the Offer in Compromise is filed, a deposit must be submitted. The amount of the deposit is 20% of the amount offered for a “lump sum” Offer in Compromise. For a “periodic payment” Offer in Compromise, you must include the first proposed installment with the IRS settlement offer. While a periodic payment OIC is being evaluated by the agency, you must make subsequent proposed installment payments as they become due. If the OIC is rejected, withdrawn, or returned, the IRS keeps any deposits made and applies them to the back taxes you owe. There is also a filing fee for an Offer in Compromise. As of 2016, the filing fee was $186.
If the Offer in Compromise is accepted, you must file and pay all taxes (including any estimated taxes and federal tax deposits) for a period of five years following the acceptance of the OIC. You are going to be required to “be good” for five (5) straight years. If you fail to file your If you breach this or any other term of the OIC, the IRS may immediately proceed against you to collect the entire amount of the original tax liability including interest and penalties, less any payments already received under the terms of the Offer in Compromise, with interest on the unpaid balance accruing from the date of default. An accepted IRS settlement may also be revoked if the IRS determines that there has been a falsification of concealment of assets, or a mutual mistake of a material fact sufficient to cause a contract to be reformed or set aside. In the event your OIC is accepted, a record of the amount of the taxes due and the amount accepted will be available for public inspection for a period of one year at the local IRS office.
The mere act of submitting the Offer in Compromise will extend the time the IRS has to collect the overdue taxes from you for a period of one year, plus the time that the IRS is considering your OIC. This means that if your Offer in Compromise is rejected, the time it took from beginning to to rejection will be added to the Statute of Limitations. Submitting the offer may also delay the earliest time in which you could discharge your taxes bankruptcy. Until the OIC is accepted, interest and penalties continue to accrue on the outstanding balance due. Any refunds owed to you by the Internal Revenue Service for tax years before the end of the calendar year during which the OIC is accepted will be kept by the IRS. Upon acceptance of the OIC, you will give up all rights to dispute the correctness of the tax for any of the years compromised.
THE IRS WANTS TO ACCOMPLISH TWO (2) THINGS: COLLECT MONEY AND CLOSE FILES. AN OFFER IN COMPROMISE ACCOMPLISHES BOTH OF THESE GOALS. THE IRS WILL HAVE COLLECTED “SOMETHING” AND THE FILE IS CLOSED. SO, IF IT CAN BE SHOWN THAT YOU CANNOT PAY YOUR TAX DEBT WITHIN THE STATUTE OF LIMITATIONS, THE IRS HAS AN INCENTIVE TO APPROVE THE TAX SETTLEMENT.
I am Dave Rosa. It is my duty and pleasure to provide you with a comprehensive and free consultation. my conversation with you will take 20 to 30 minutes. You can be assured that at the end of our conversation, you will know if you should do an Offer in Compromise or not.
We have have been doing successful Offer in Compromise submissions for the past twenty years. Our tax professionals will get you through this settlement process successfully.
FLAT FEE TAX SERVICE – 1-866-747-7435
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