Offer in Compromise | Affordable Tax Settlement | Flat Fee Tax Service | San Diego

An Offer in Compromise is an tax settlement with the IRS that allows a financially struggling taxpayer to settle an income tax debt for less than the full amount owed. An Offer in Compromise may be a legitimate option if the taxpayer cannot pay the full income tax liability, or doing so creates a financial hardship. The IRS must consider a taxpayer’s unique set of facts and circumstances:

  • Ability to pay;
  • Income;
  • Expenses; and
  • Asset equity.

The IRS will generally approve an offer in compromise settlement when the amount offered represents the most that the IRS can expect to collect within a reasonable period of time. The IRS will try and discourage a taxpayer. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.

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Make sure you are eligible to settle with the IRS:

Before the IRS will consider a taxpayer’s settlement offer, the taxpayer must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding. Call the IRS tax relief team at Flat Fee Tax Service, Inc. for your free and confidential consultation. A consultation call to our team will be the quickest way for a taxpayer to find out their qualifications for an IRS settlement.

SubmitTING an Offer in Compromise:

A taxpayer can submit an Offer in Compromise (IRS settlement) on their own. It is not recommended. Presently, at the time of this writing, the IRS is accepting 40% of the settlement offers that are submitted. Most of the 40% used a tax professional.

The clients who use Flat Fee Tax Service, Inc. have had a 95% success rate. 

If you are stubborn and want to do your own settlement, you will find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B.  A taxpayer’s completed offer package must include:

  • Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
  • Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
  • $186 application fee (non-refundable); and
  • Initial payment (non-refundable) for each Form 656.

Select payment option:

The taxpayer’s initial payment will vary based on the offer and the payment option chosen:

  • Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with the application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
  • Periodic Payment: Submit an initial payment with the application. Continue to pay the remaining balance in monthly installments while the IRS considers the settlement offer. If accepted, continue to pay monthly until it is paid in full.

Should a financially distressed taxpayer meet the Low-Income Certification guidelines, the taxpayer does not have to send the application fee or the initial payment and the taxpayer will not need to make monthly installments during the evaluation of the offer. Check the application package for details.

You Need to Understand the Entire Process:

While an IRS settlement offer is being evaluated:

  • The taxpayer’s non-refundable payments and fees will be applied to the income tax liability (payments can be designated to a specific tax year and tax debt);
  • A Notice of Federal Tax Lien may be filed;
  • Other collection activities  (levies) are suspended;
  • The legal assessment and collection period is extended;
  • Make all required payments associated with the settlement offer;
  • The taxpayer is not required to make payments on an existing installment agreement; and
  • The settlement offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

IMPORTANT NOTE:

If a taxpayer decides to do their own Offer in Compromise, the settlement offer had better be done correctly the VERY 1st TIME. The reason is this: the IRS suspends the Statute of Limitations during the Offer in Compromise submission process. That means if the settlement offer is rejected for any reason, the IRS has extended the time to enforce collection.

DO IT RIGHT THE FIRST TIME AND AVOID A LOT OF TROUBLE

FLAT FEE TAX SERVICE – FLAT FEE TAX RELIEF:

  1. Guided by our Christian Values which is why we do not have Client Complaints.
  2. Accredited by the Better Business Bureau. A Plus Rating. Check our BBB reviews for yourself.
  3. Experienced IRS Tax Attorneys will work directly with you throughout the process.
  4. Stop, remove and release an IRS wage levy in one day.
  5. 96% of our clients who submit an IRS settlement have received a successful Offer in Compromise.
  6. Very Affordable Fees. Fees can be stretched out over 10 to 12 months.
  7. Our clients receive positive results.

FLAT FEE TAX SERVICE – FLAT FEE TAX RELIEF
1-866-747-7435

https://www.flatfeetaxservice.net

“America’s Best & Most Affordable IRS Tax Relief Team”

How Much Will the IRS Settle For | Flat Fee Tax Service | San Diego

The average amount that the IRS settles for in an offer in compromise is currently $6,629.  Sounds good, does it not? If only an IRS settlement was that easy, every taxpayer would be submitting IRS settlements, right?

The tax professionals at Flat Fee Tax Service provide valuable IRS tax debt help at a very affordable fee. Our teams are located in San Diego, CA and Clearwater, FL.

Offer in Compromise information: In 2014, the IRS received 68,000 Offers in Compromise submissions from taxpayers. The IRS accepted 27,000 of those settlement offers. The IRS accepts approximately 40% of the settlement offers submitted. Our tax professionals expect an explosion of IRS settlement submissions in the coming year due to COVID-19.

FLAT FEE TAX SERVICE CLIENTS HAVE A 96% SUCCESS RATE 

The total amount accepted in all Offers in Compromise in 2014 was $179 million which is an average income tax settlement of $6,629.

The above statistics do not mean that a financially struggling taxpayer will settle with the IRS for that amount, or that there is a 40% chance your IRS settlement offer will be accepted.

The IRS uses a very specific and complicated formula in determining the settlement value of an Offer in Compromise and whether or not to accept or reject it.  Your success depends on how a taxpayer fits into the IRS formula.

The Offer in Compromise program formula works like this:

  1. The IRS will figure out how much they think that a taxpayer can pay them every month in an installment agreement. They do this by asking for your pay stubs or, if you are self-employed, a recent profit and loss statement from your business.
  2. The IRS wants to know about your monthly living expenses.  Some of those expenses such as your housing and utilities, car payment(s) and food/clothing will subject to IRS limitations. The IRS calls these limitations Collection Financial Standards, often referred to as allowable living expenses. The IRS is trying to create more cash flow than the struggling taxpayer will actually have by limiting the expenses to amounts the IRS thinks are reasonable.

The taxpayer’s monthly income, minus the allowable living expenses, equals the taxpayer’s monthly cash flow.  The IRS is going to put a value on the cash flow for purposes of determining the Offer in Compromise settlement value.

If the taxpayer can pay the IRS the offered settlement within five months after acceptance, the IRS values your monthly cash flow by multiplying it by a factor of 12. $200 of monthly cash flow will equate to an offered settlement valuation of $2,400.

If the taxpayer is unable to pay the settlement in full within five months, the IRS will grant you 24 months payment terms. However, your monthly cash flow ($200/month in our example) would be multiplied by a factor of 24, increasing the settlement offer to $4,800. The IRS will give the taxpayer a discount for paying the IRS the offered settlement sooner rather than later.

After determining the value of the settlement offer, the IRS will then turn to a valuation of the taxpayer’s assets, and add that to the value of your cash flow.  How much is your “stuff” worth?  Your car, house, retirement plan?  Subtract any loans to arrive at equity, and in most cases, reduce that by 20% to get to your IRS valuation.

Add your cash flow (multiplied by a factor of 12 or 24) to your asset value, and you have your proposed IRS settlement amount.

The taxpayer’s success with an offer in compromise is based on a full understanding of the IRS investigative process into the income, living expenses and assets of the taxpayer. It is not a one size fits all situation. The amount of one taxpayer’s settlement has no bearing on the success of another taxpayer.  The IRS does not have a set percentage of settlement to the amount owed.  

The taxpayer’s settlement offer depends on convincing the IRS that your financial situation is dismal and that the IRS will never get paid after applying their internal guidelines.

ARE YOU READY FOR A FRESH START?

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FLAT FEE TAX SERVICE – FLAT FEE TAX RELIEF:

  1. Guided by our Christian Values is the reason we do not have client complaints.
  2. Accredited by the Better Business Bureau. A Plus Rating. Check our testimonials on the BBB website.
  3. Experienced IRS Income Tax Attorneys work directly with you.
  4. Stop, Remove, Release an IRS wage levy in one (1) day.
  5. 95% of our clients who have submitted an IRS Offer in Compromise has received a successful IRS settlement.
  6. Very Affordable Fees. 10 to 12 months to pay our fees.
  7. Our Clients Receive Positive Results.

“America’s Best & Most Affordable IRS Tax Relief Team”

IRS Tax Settlement | St. louis Missouri | Flat Fee Tax Service

The IRS tax relief team at Flat Fee Tax Service has done it again. It is with great pleasure that we have the pleasure to announce the IRS has accepted that our client, Peter M. of St. Louis, Missouri has settled his IRS tax debt of $35,000 for a grand total of $100.00.

THAT’S RIGHT!

An IRS Offer in Compromise settlement for $100.00 on a tax debt of $35,000.00.

THAT’S WHAT WE CALL A “FRESH START.”

Peter M. of St. Louis, Missouri contacted us at Flat Fee Tax Service, Inc. like all of our clients do. Filled with anxiety. Fearing an IRS Levy. Fear that the IRS will take everything and he may have to leave his job because he simply can’t afford an IRS levy.

The IRS may have already started taking your paycheck or your bank account.

NOT EVERYONE IS ELIGIBLE TO SETTLE WITH THE IRS.

If you call us at Flat Fee Tax Service, Inc. we can determine during our free and confidential consultation if you are eligible and qualified to settle with the IRS for less.

An Offer in Compromise (tax settlement) with the IRS allows you to settle whatever tax debt you might have for less than the full amount owed. An Offer in Compromise settlement is a legitimate option if you cannot pay your full tax liability or if doing so would create a financial hardship. The IRS considers the following circumstances and facts when you file an Offer in Compromise: your ability to pay, your income, any expenses, and asset equity.

In order to be eligible for an Offer in Compromise, you must be current with all filing and payment requirements. The IRS generally approves these settlement offers when the amount offered is the most they could expect to collect in a reasonable amount of time. There are other rules and regulations surrounding the eligibility of taxpayers to file an Offer in Compromise, which is explained below.

You Can Receive a Fresh Start.

An IRS Offer in Compromise is not a negotiation as you would “haggle” with a vendor or credit card company. The IRS has a financial formula that is used to determine a struggling taxpayers ability to pay their tax debt.

Monthly cash flow is considered to be the ability of cash to come in and be expended on a monthly basis. Form 433-A requires all taxpayers to calculate a few things in regards to their monthly cash flow. First, taxpayers must calculate and outline all categories of monthly income, and specify whether they were generated as wages or through investment distribution, then calculate all categories of expenses which pertain to necessary living. To find the net difference, subtract total living expenses from total income, and you have an idea of your monthly cash flow specific to your income and living expenses.

YOUR PAPERWORK MUST BE DONE CORRECTLY.

YOUR SETTLEMENT OFFER MUST BE “RIGHT ON THE MONEY.”

If you turn in your Offer in Compromise paperwork with mistakes of any kind, the IRS will reject your settlement Offer and return it to you and call it “unprocessable.”

The IRS will not tell you what your mistake was and you will have to start the settlement procedure all over again.

DO IT RIGHT THE FIRST TIME.

The IRS Offer in Compromise process takes approximately one (1) year to complete.

GREAT NEWS!

95% of the IRS Offer in Compromise submissions prepared by the IRS tax relief team at Flat Fee Tax Service have been successfully accepted by the IRS.

OUR FEES:

$1900 for an IRS Offer in Compromise settlement which includes the release of an IRS Levy.

FEES ARE AFFORDABLE:

1. Initial fee to start: $190.00
2. 8 monthly fee payments of $190.00
3. Total of: $1900.00

Peter M. of St. Louis, Missouri paid the affordable IRS tax relief team at Flat Fee Tax Service, Inc. $1900.00 and settled his IRS tax debt of $35,000.00 for $100.00.

PETER M. MADE THE RIGHT CHOICE.

PETER M. HIRED THE BEST.

PETER M. HIRED FLAT FEE TAX SERVICE

WILL YOU?

Call for your free and confidential consultation: 1-866-747-7435

FLAT FEE TAX SERVICE:

1. Guided by our Christian Values.
2. Fully Accredited by the Better Business Bureau. A Plus Rating.
3. No Client Complaints
4. 95% Offer in Compromise Success Rate.
5. IRS Wage Levy – Stopped and Released in One (1) Day.
6. Experienced IRS Tax Attorneys.
7. Very Affordable Fees.
8. Positive Results.

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