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Possible IRS Tax Solutions |
You dont have to manage an IRS tax problem alone. So do not procrastinate locating the assistance you need. The IRS will not go away! There are tax experts available to be your resource and guide you through this challenging time in your financial life. These IRS tax relief specialists are able to permanently resolve your IRS past due tax problems and help you get back on the road to financial recovery.
Although the federal Offer in Compromise program is typically the most desirable, t here are many types of IRS programs that can offer you the tax relief you are seeking. The most common IRS solutions are:
Installment Agreement
A program like this is typically for delinquent taxpayers and businesses that cannot settle their entire tax debt all at once and need to make payments. Typically the installment agreement is 60 months or less although the IRS is allowed to collect over 10 years. Installment Agreements are employed when the taxpayer has the ability to pay back tax as evidenced by his or her financial profile when using IRS Collection Standards. Those Standards are averages of expenses that individuals living in various parts of the nation are likely to incur. Standards are set for food and clothing, housing and utilities, transportation costs and health care (allowances for health care are set, not on standards, but on actual experience of each individual, plus court ordered or legally mandated payments such as family support, student loans and judgments. The allowances indicated in the Standards are added together and then subtracted from monthly after tax income. Any excess of after tax income over the allowance is referred to by the IRS as 'ability to pay' and is the amount the IRS will demand each month in an Offer in Compromise or Installment Agreement If 60 payments of the 'ability to pay' amount is less than the tax debt the IRS will consider an offer to pay the lesser amount. If the 'ability to pay' amount is greater than the tax liability, the IRS will demand their money in an Installment Agreement of not more than 5 years.
The Installment agreement provides the taxpayer valuable time to catch up on finances and escape the harassment and embarrassment of dealing with revenue officers and IRS agents. If the IRS has burdened you with an unreasonable payment plan or is threatening to levy or garnish your wages, bank accounts and other seize your assets, we may be able to arrange an Installment payment plan for you that conforms to your current financial situation or, if your financial condition warrants, we can have your account placed in a "not currently collectible" status. Under this program, the IRS withholds all collection activity until you are financially able to accept a payment plan or have an IRS Offer in Compromise submitted. For your free tax review, Click Here.
IRS Offer In Compromise
If you have a tax problem with the IRS you need to exercise your legal rights and consider submitting an IRS Offer in Compromise. The amount of money you owe the IRS is not relevant. Instead, what is important is your financial ability to pay your IRS tax owed. You must prove two things to the IRS before they will accept your Offer in Compromise. First, you must prove your asset value is low or nominal and second, your monthly allowable expenses equal or exceed your monthly income. If you meet these two criteria, you may qualify for a reduced settlement with the IRS.
You must determine your asset value before you submit an Offer in Compromise. The IRS will not accept an Offer in Compromise for an amount less than your total equity value. The equity you have in an asset is the value of the asset minus the liability you owe on the asset. For example, if your home is worth $100,000 and your loan against the home is $50,000, you have $50,000 in equity value in that one asset. The total equity in all of your assets must be determined and be LESS than the total tax you owe.
You will need to determine if your monthly allowable expenses equal or exceed your monthly income. If your monthly allowable expenses equal or exceed your monthly income, and your asset value is low or nominal, you may submit an IRS Offer in Compromise. An experienced tax professional can help you decide if you qualify for an Offer in Compromise. The IRS mandates that you cannot use all of your monthly expenses when you calculate whether your monthly expenses equal or exceed your monthly income. The IRS only allows you to use allowable monthly expenses. The IRS divides monthly allowable expenses into necessary expenses and conditional expenses. This is an allowable expense. The IRS has mandated monetary limits on some allowable expenses. As a result, you will not be allowed to claim the entire amount you spend on certain allowable expenses. When you are calculating whether your IRS monthly allowable expenses equal or exceed your monthly income, you must be certain that your actual expenses do not exceed the IRS monetary limits for that expense as mandated by the IRS. To receive your free IRS settlement evaluation, Click Here.
Filing all Unfiled Tax Returns Required The IRS is extremely rigid when it comes to filing all of your federal tax returns as a pre-requisite to filing an Offer In Compromise. The IRS is unlikely to accept your Offer in Compromise unless all of your federal tax returns have been filed. The IRS agent who will handle your Offer in Compromise will check your IRS files and records to find out if you have filed all of your federal tax returns. The IRS will not accept your Offer in Compromise if you are not current or have failed to file all of your federal tax returns. Being current and having all of your federal tax returns filed is critical to having your Offer in Compromise accepted. This is an extremely important aspect of this process. There is a $150 filing fee that must accompany any Offer in Compromise.If you need tax debt help to file your past due IRS tax returns, Click Here. Withholding of Collection Action when An Offer In Compromise is Filed. The IRS will usually stop collection actions against you after you submit your Offer in Compromise. According to the IRS, all collection activity must be stopped if the IRS believes that you submitted your Offer in Compromise in good faith.
How is Good Faith defined? Good faith means that you submitted your Offer in Compromise for the purpose of settling your back taxes and not for the purpose of stopping or hindering IRS collection actions. However, in many instances, the IRS illegally continues to enforce collections against a taxpayer after the Offer in Compromise has been submitted. Typically, experienced tax specialists may be able to help you release collection action by the IRS.
After the Offer In Compromise is Remitted
If your offer is accepted, the Internal Revenue Service will ask you to pay the reduced amount suggested in your offer. After you have paid the offered amount, the Internal Revenue Service will likely release any liens against you on your property.
IRS Penalty Abatement
In addition to an IRS Offer in Compromise, there is another, very effective option for reduction of an outstanding tax debt. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, the penalties and interest that have built up may be able to be disputed and an attempt made to negotiate them. Relief from penalties falls into four separate categories. They are:
- Reasonable Cause Mistake made by the taxpayer, ignorance of law, death, serious illness, unavoidable absence, etc.
- Statutory Exceptions Simple or complex legislative tax code changes.
- Administrative Waivers Undue hardship, fire, flood, natural disaster, bad legal/tax advice.
- Correction of Service Error Mistake made by the IRS. Source IRS
Since the criteria for waiving accrued penalties and interest is based more on your stated representations rather than financial hardship, terms for a successful penalty abatement are more rigorous. More so than any other, this option involves a great deal of skill to successfully navigate the IRS protocol to bring a successful result. If successful, results are substantial; savings are usually significant, your personal tax professional will cover the intricate details of a penalty abatement, accurately explaining why you would or wouldn't be a candidate for this relief. To receive your free penalty abatement tax review, Click Here.
Unfiled Tax Returns * Unfiled Federal Returns * Unfiled Taxes * Unfiled IRS Returns
IRS Offer in Compromise * Offer in Compromise * Offer and Compromise * IRS Offer to Compromise
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