Monthly Archives: November 2018

IRS Settlement On Back Taxes – Tax Negotiation

IRS Tax Negotiation & Tax Settlement

What Is An IRS Tax Settlement?

A tax settlement is an arrangement which is acceptable to the IRS or state taxing authorities that allows a taxpayer to retire and settle a back tax debt for less than the original amount owed. The IRS or State Taxation authorities sometimes allow this type of tax settlement when extenuating circumstances exist that would prevent the taxpayer from honoring the full debt.  While not every situation is appropriate for engaging in a tax settlement process, individuals who owe taxes often find that tax authorities are willing to explore the individual situation to determine if a tax settlement is possible.  This is typically based on current tax regulations and the circumstances of the taxpayer.

Benefits of an IRS Settlement on Back Taxes

There are several benefits associated with attempting to negotiate a tax settlement.

  • Pay Less Now – The most obvious is that the taxpayer ultimately pays a considerably lower amount of money to the tax authority.  Assuming that the situation of the applicant meets certain qualifications, a tax settlement amount may be determined and presented within a very short period of time. Once the balance is paid based on a mutually agreeable settlement, your back tax debt is considered settled-in-full, meaning that you, the taxpayer, is no longer subject to late fees and other types of penalties that would be incurred otherwise.
  • Avoid Federal Tax Liens, Wage Garnishments, and Bank Levies – Another benefit of a tax settlement is that the taxpayer avoids the placement of federal and state tax liens on a home or business, a bank levy on one or more available accounts, or the implementation of a wage garnishment on his or her paycheck.

How Does a Tax Settlement Work?

The IRS will allow a taxpayer to either negotiate a tax settlement for less than the total amount owed or come to an agreement on another method for the IRS to collect taxes owed over time. For either of these situations, the taxpayer must meet the qualifications of one of the tax settlement programs set forth by the IRS. The taxpayer will first have to determine which type of tax settlement they would like to apply for and then submit the appropriate forms to the IRS for review before making a decision. A taxpayer can either fill out the information themselves or they can have a designated tax professional make the filing on their behalf.

Typically, the negotiation of the tax settlement remains between the individual and the IRS or tax authority involved and may include a third party if the taxpayer seeks professional tax settlement assistance. Firms that specialize in IRS tax relief programs, surprisingly, also help to lower the costs to the individual, since there is typically a very positive outcome to seeking the assistance of an IRS tax relief professional.

In many instances, a tax settlement calls for paying off the entire tax settlement amount within a specified period of time.  During that time frame, no late taxes or tax interest is assessed on the balance of the tax settlement. Taxpayers may choose to pay off the tax settlement amount in one lump sum.  If this is not possible, the IRS or tax authorities will set up a schedule of payments that are within the means of the taxpayer, with the last payment coinciding with the final date attached to the tax settlement offer. Once a settlement has been reached by both parties, the taxpayer will be considered good standing with the IRS for the tax year/years that the settlement covered (unless the taxpayer defaults or doesn’t hold up to all the terms of the agreement).


Who Is Eligible for a Tax Settlement on Back Taxes?

The IRS offers settlements to taxpayers that are struggling with their tax debts or have valid reasons to abate their penalties. Not everyone is eligible for a tax settlement. In fact, most taxpayers are not eligible nor qualified to settle with the IRS.



The main factor the IRS takes into consideration when determining if the taxpayer will qualify for a tax settlement is their financial situation. If the taxpayer is undergoing financial hardship, it’s usually a good indicator of the IRS that a tax settlement on back taxes might be a great option.


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IRS Tax Relief – IRS Tax Lawyers San Diego

The IRS may now purport to be a “kinder and friendlier” agency, but don’t be fooled into thinking that its tax agents are your friends. They’re not; they’re just doing their job: to collect the maximum amount of taxes, penalties, and interest from you.

If you owe money to the IRS, the simple fact is that you are no match for their relentless collection techniques.

Every day, individual and business taxpayers make the costly mistake of representing themselves in a conflict with the IRS or their state’s Department of Taxation.

Although IRS Revenue Officers initially present themselves in a friendly way and seem willing to settle your tax liability problems, keep in mind that IRS employees are required to protect the interests of the United States Treasury. They are always striving to achieve the highest recovery for their employer, the government.

In such a situation, the unknowing and inexperienced taxpayer often mistakenly agrees to a stiff payment plan that ends up costing far more than it would have had the taxpayer retained competent tax representation. The fact is that experienced professionals are far better equipped than you to protect your rights, seek a resolution that is in your best interest, and settle your tax problems.

The IRS will take advantage of a taxpayer that is not knowledgeable about tax law and IRS collection procedures.

Frankly, taxpayers need to be protected from IRS error, abuse, and intimidation.

Taxpayers frequently overpay their tax liability either as a consequence of inappropriate IRS actions or because they do not have the counsel of a skilled and experienced tax professional.

That’s why the IRS tax relief team at Flat Fee Tax Service, Inc. was founded: to represent you, the taxpayer, against them, the IRS.

Put an IRS Tax Lawyer Between You and the IRS

When you seek an IRS tax relief program with Flat Fee Tax Service, Inc. you can stop IRS action, penalties and intimidation. Once you have an IRS tax relief program that fits your situation, the IRS cannot contact you. Thereafter you will not be required to have any personal contact with the IRS whatsoever.

Our IRS Tax Lawyers will help you resolve all of your tax problems including outstanding taxes, penalties, and interest, audits, liens, levies, garnishments, and seizures.

Because our IRS tax relief teams are dedicated to only representing taxpayers, we put all our training, knowledge, and skills as experienced IRS Tax Lawyers to work for you. With decades of experience and thousands of completed tax negotiations to our credit, we know how to plan and prepare an acceptable Offer in Compromise in an amount that is often drastically lower than the taxpayer ever hoped.

Due to our highly experienced IRS tax relief team, Flat Fee Tax Service, Inc. delivers a high rate of acceptance by the IRS of Offers in Compromise, Request for Innocent Spouse Relief, Equitable Relief, Collection Due Process Appeal, Abatement of Penalties and Interest, reduction of tax liability determinations, protection from harassing communications, and in some cases, even relief from all taxes due.

Not Filing Your Tax Return Is A Serious Matter!

The IRS may construe your failure to file tax returns as tax evasion — a criminal act punishable by a prison sentence for each year a return is not filed. Where do you turn for IRS tax help?

Needless to say, it’s one thing to owe the IRS money but quite another to potentially lose your freedom for failure to file a tax return.

The IRS can file “SFR” (Substitute For Return) Tax Returns on your behalf but without your approval. A Substitute For Return is the IRS’s version of an unfiled tax return. Because SFR returns are filed in the best interest of the government, the only deductions you’ll see are standard deductions and one personal exemption. You will not get credit for deductions to which you may be entitled such as exemptions for your spouse and children, deductions for interest and taxes on your home, cost of any stock or real estate sales, business expenses, and more.

Notwithstanding any action by the IRS and no matter how late it may be, you have the right to file your original tax return. However, as you can see, such filings can bring great risk unless properly handled by an experienced tax consultant.

Get Help With Your Back Taxes!

The IRS Offer in Compromise program provides taxpayers who owe the IRS more than they could ever afford the chance to pay a small amount as a full and final settlement.

This IRS tax relief program also offers taxpayers who don’t agree that they actually owe the taxes in the first place the chance to file an Offer in Compromise and have those tax liabilities reconsidered.

The Offer in Compromise program allows taxpayers to get a fresh start. All back tax liabilities are settled with the amount of the offer. All federal tax liens are released upon IRS acceptance of an Offer in Compromise and payment of the amount offered.

If the filed Offer in Compromise is based on your inability to pay, the IRS reviews your current financial position and considers your ability to pay, as well as your equity in assets.

When reviewing an Offer in Compromise, the IRS considers many factors including but certainly not limited to:

  • The amount collectible from your assets.
  • The amount collectible from present and future income. The IRS will consider the present value of money in relation to future collection potential. In other words, by accepting the offer the IRS will get money that is worth more today than in the future.
  • The amount collectible from third parties.
  • Sources of funds that are available to you but not subject to IRS collection action.

This is a complex tax environment, one in which our IRS Tax Lawyers have worked for many years, and have established an outstanding record with a high rate of Offer in Compromise acceptance for our clients. Using our extensive experience and knowledge of IRS review processes, procedures and “hot buttons”, as well as the results of thousands of previous rulings and decisions on cases we have brought forward, our tax professionals have been uncommonly successful in representing clients to compromise all types of IRS taxes, penalties, and interest. Even unpaid trust-fund payroll taxes have been compromised.

If you qualify for this IRS tax relief program, our IRS Tax Lawyers can help you save substantial amounts of dollars in taxes, penalties, and interest. You must meet the following minimum rules to get help with your back taxes:

  • You must have filed all tax returns. It’s alright to owe money but you must have filed your returns.
  • You will need to disclose all assets owned including all cash and bank accounts.
  • You must not have adequate cash available in a checking, savings, money market, or brokerage account to pay the IRS.

Even if you don’t meet these criteria now, our tax consultants service can help you get into a position for submission of your offer. Just because you don’t meet the qualifications, the IRS will not back off. We can help protect you from aggressive IRS collection tactics while bringing you closer to submitting your offer.

There are many tax services providers on the Internet who offer to submit your Offer in Compromise, but you should know that these providers do not complete the forms. Rather, they have you fill in all the forms and then they will simply forward them to the IRS.

These cut-rate “experts” do little more than pass forms between you and the IRS. Anyone can mail in an IRS form. Such “service” is not professional tax representation.

This is the Flat Fee Tax Service, Inc. difference:

1. We have reduced the amount our clients owe the IRS by many Millions of dollars!

2. We advise taxpayers on the numbers during our initial tax relief consultation. This is critical because, to the extent that you have assets in excess of liabilities, the IRS is not likely to accept an Offer in Compromise that is less than the net value of your assets.

Example: If you think that you have a net equity of $83,000 in your home, and you note $83,000 as the net equity value of your home, the IRS is likely to argue that your Offer must be at least $83,000 (assuming no liabilities in this example). But an argument can be made that might reduce that $83,000 to zero or some other low number and, therefore, reduce the Offer by $83,000.

3. Our IRS Tax lawyers have the requisite skills gained through thousands of Offers in Compromise.

4. Our IRS tax relief team will be able to advise you on evaluating your assets and liabilities. For example, we will work with you to best determine your net equity in your home, on how to calculate your income and expenses and advise you on the amount of the Offer you should make.

Flat Fee Tax Service, Inc. has the level of seasoned experience necessary to best argue your case.

  • Our IRS Tax lawyers know the tax rules and IRS internal procedures.
  • Our IRS tax relief teams know how to argue the facts, the rules, and the procedures.
  • Our IRS Tax Attorneys are known among and credible with IRS agents.
  • Flat Fee Tax Service, Inc. has extensive IRS experience so we know how the IRS thinks.
  • Our IRS Tax Lawyers know IRS procedures.
  • Our IRS Tax lawyers know the limits of IRS discretion with IRS tax relief programs.
  • When necessary, we can write a technical memorandum on the facts and the IRS rules and procedures to accompany your request for an Offer in Compromise

5. We know when to take the Offer in Compromise to an Appeals level.

  • We know why an Offer should be taken to Appeals.
  • We know the Appeals procedures.
  • We know the discretion that an Appeals Conferee has and how to present an Appeals case.

6. We were founded by a distinguished IRS Tax Lawyer.

Think about it: the issues of your case are based on facts and IRS regulations. We know how to interpret the regulations to best protect you so you can come away with the best and lowest Offer.

7. We are not intimidated by aggressive IRS Offer Specialists.

The fact is that the IRS may take advantage of a taxpayer who represents himself, and likewise if the taxpayer’s advocate is weak. If the IRS can push and intimidate, they will push and intimidate. IRS Offer Specialists generally have “collection backgrounds” — they want to collect as much money as possible.