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Offer in Compromise – How Much Money can an IRS Offer in Compromise Save Me?


The Offer-in-Compromise can be a life-saving form of tax relief for those who truly need it. On average people who settle their debt using an Offer-in-Compromise end up paying less than 20% of the actual amount they owed to the IRS.

Approved by Congress to aid financially struggling taxpayers, an IRS settlement through the Offer in Compromise (OIC) program can be the ideal tax debt solution for resolving your tax problem as it can result in significant savings.

In some cases, your financial situation may make it nearly impossible for you to pay off all your IRS tax debt, even when utilizing tax relief over the long term via an installment plan. In such situations, the IRS may be willing to accept an Offer in Compromise and significantly lower your IRS tax debt.

Here is how an IRS Offer in Compromise works:

  • Through the work of our IRS Tax Attorneys, the IRS acknowledges that there is no feasible way to pay off all your tax debt. This means that you do not have enough income to pay off your tax debt and do not have enough valuable assets that the IRS could seize.
  • Using the IRS guidelines for an Offer in Compromise, you offer to pay the IRS the maximum amount that you can afford even though that amount may fall far short of the actual tax debt
  • If the IRS accepts that the amount of your Offer in Compromise, the IRS will agree to compromise, settle and essentially lower your tax debt to match the amount you can pay
  • Once you have finished paying the agreed upon amount, your tax debt is considered “paid in full.” This is true even if the agreed-upon Offer in Compromise is only a small percentage of what you originally owed


Our clients get positive tax relief results.




Getting Help with Offer In Compromise

Yes, a taxpayer can submit their own Offer in Compromise. Our team doesn’t recommend it if you are serious. To have a better chance of approval of your Offer in Compromise, one should utilize the assistance of an experienced IRS Tax Attorney for this complex process. The highly qualified, trained and experienced team at Flat Fee Tax Service, Inc. will work very hard to see if this is the best solution for your IRS tax debt.

To be eligible for an Offer in Compromise our IRS Tax Attorneys must demonstrate to the IRS that collection of the tax would create an economic hardship or would be unfair and inequitable.

For the best chances in successfully negotiating an Offer in Compromise, you’ll want an experienced professional with a successful track record on your side. Flat Fee Tax Service, Inc.’s expert IRS Tax Attorneys are highly experienced in preparing, submitting and settling these tax debt cases. By calling one of our Tax Relief Consultants, we will answer any questions you may have and provide you with a better assessment of your options.




IRS Fresh Start Initiative – IRS fresh start initiative – Tax Debt Forgiveness Program

The IRS Fresh Start Initiative has had one goal: to make it easier for individuals and businesses to receive IRS tax relief and to pay their back taxes and IRS penalties. The IRS Fresh Start Initiative has been expanded since then, but still holds true to its original purpose. How exactly will it affect you if you’re struggling to pay up? Here are the four components that the IRS Fresh Start Initiative has changed for your benefit.

What Is the IRS Fresh Start Initiative Program?

The image of the IRS is one of intimidation. Whether deliberately cultivated or not, the IRS does little to dispel this perception. In recent years, the IRS has sought to reboot the way it interacts with taxpayers, with IRS agents receiving training and instruction in how to assist taxpayers who are in arrears. The IRS Fresh Start Initiative combines IRS penalty relief, installment payments; federal tax lien releases and a program known as Offer in Compromise that allows many taxpayers to settle their federal tax debts for less than what they actually owe.

How the IRS Fresh Start Initiative Will Help Waive IRS Tax Penalties

Originally, when paying and filing your taxes, missing the April deadline meant immediate interest charges and penalties. But with the IRS Fresh Start Initiative, qualifying unemployed taxpayers can apply to have Failure-to-Pay penalties waived for six months.

The IRS Fresh Start Initiative program was launched in 2012 to help taxpayers who were struggling with the effects of the ongoing financial crisis. The first aspect of the program provided some unemployed taxpayers with exemption from the failure-to-pay penalty.

To qualify for this aspect of the IRS Fresh Start Initiative, wage earners must have been unemployed for at least 30 consecutive days. Self-employed taxpayers must have experienced at least a 25 percent reduction in income due to adverse economic conditions. The IRS also set maximum income limits of $200,000 for married taxpayers filing jointly.

Easy Installment Agreements: 

The IRS Fresh Start Initiative Program also raised the maximum tax owed for taxpayers from $25,000 to $50,000 to qualify for streamlined repayment plans. Under the Fresh Start Initiative payment agreement program, taxpayers may establish payment plans online through the Online Payment Agreement page located on the IRS website ( Taxpayers who owe more than $50,000 may still establish an IRS installment agreement but must either file a Collection Information Statement (Form 433-A or Form 433-F) or make sufficient payments against their past-due tax balance to bring the total tax owed below the $50,000 threshold.

How To Withdraw Notice Of Federal Tax Lien: 

The IRS Fresh Start Initiative raises the minimum threshold for filing an IRS Notice of Federal Tax Lien on taxes owed from $5,000 to $10,000. The new standard is not retroactive, and the IRS may still impose liens against taxpayers who owe less than $10,000 when the agency deems that circumstances warrant doing so. To request that the IRS withdraw the Notice of Federal Tax Lien against liens that have been released, taxpayers must file Form 12777 – Application for Withdrawal, available on the IRS website.

How To Make Use of the Offer in Compromise Program and Settle Your Tax Debt:

An Offer in Compromise, according to the IRS Fresh Start Initiative, allows taxpayers to settle their obligations to the IRS for less than the total amount owed. The IRS only allows taxpayers to obtain IRS tax relief under the Offer in Compromise program in circumstances where requiring repaying the full back taxes owed would constitute an undue burden or in cases where taxpayers demonstrate that they will be unlikely ever to be able to pay the full amount owed.





The IRS Fresh Start Initiative has established more flexible standards in evaluating the financial standpoint of taxpayers who request relief under an Offer in Compromise. As a result, more taxpayers may qualify. .To be eligible for IRS tax relief under the Offer in Compromise program for grounds other than Doubt as to Liability, taxpayers must meet all of the following conditions:

  • Cannot have an open personal or business bankruptcy petition
  • All required tax forms must have been filed
  • All required tax payments for the current year must be paid
  • Business owners with employees must have made current quarterly tax payments

An Offer in Compromise may be either for a single lump-sum payment or for installment payments. To request an Offer in Compromise, taxpayers must submit Form 433-A (OIC) for individuals or Form 433-B (OIC) for businesses along with either $186 to cover the application fee and either a payment of 20 percent of the proposed lump-sum payment or an amount equal to the first proposed monthly installment payment. Individuals and sole proprietors who qualify under Low-Income Certification guidelines set by the IRS are exempted from paying the application fee.

New Installment Guidelines according to the IRS Fresh Start Initiative:

IRS Installment agreements allow a person to make monthly payments on their tax debt if they can’t afford to pay the total at once, and/or aren’t eligible for an Offer in Compromise. In the past, once an individual’s tax balance reached $25,000, the IRS began conducting a financial analysis of the person’s income and expenses to determine how much the taxpayer would pay per month. Additionally, a Notice of Federal Tax Liens was filed.

Under the IRS Fresh Start Initiative, more taxpayers will be able to avoid this invasive process altogether, as the tax balance threshold has been raised to $50,000. At that point, once the installment agreement process is started, you’ll now have six years to pay the debt off. If you are considering entering an installment agreement, let our tax relief team know and our IRS Tax Attorneys will make sure you qualify.

Notice of Federal Tax Liens and the IRS Fresh Start Initiative:

If an individual fails to pay their tax debt the government can file a claim against that person’s property with a federal tax lien. “Property” includes everything an individual owns, including real estate, vehicles and financial assets. The Notice of Federal Tax Lien alerts creditors that the government has a legal right to a taxpayer’s property. This may limit your ability to get credit.

Similar to installment agreements, FSI has raised the Notice of Federal Tax Lien filing threshold to $10,000 from $5,000. The IRS might still choose to file at an amount less than $10,000, but it’s not as automatic as before.

How the IRS Fresh Start Initiative can help with your Tax Problems:

While none of these alternatives represents an easy solution, each of them does provide a viable avenue for IRS tax relief. If you have been struggling to pay your federal income tax burden, investigating possible assistance under the IRS Fresh Initiative program is definitely worth your while, either on your own or with the assistance of a tax professional. You may find that your overall tax burden is significantly reduced.

Are You Wondering if You’re Eligible and Qualified for the IRS Fresh Start Initiative? Give Our Tax Relief Team a Call.

If you’re struggling with paying your taxes, don’t know how to fill out an Offer in Compromise or don’t know which forms to file, contact our tax relief team today. We’ll help you take advantage of the IRS Fresh Start Initiative.


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IRS Uncollectible – Currently not Collectible IRS Status

Currently not Collectible status protects you from the IRS. Being Currently not Collectible will stop IRS levies, IRS garnishments, threatening letters and collection enforcement. Being uncollectible forces the IRS to simply leave you alone without requiring any payment on your end.

The IRS will consider your account to be Currently not Collectible if our IRS Tax Attorneys, at Flat Fee Tax Service, Inc., provides them a collection information statement verifying that there would be a financial hardship if the IRS forced you to pay them.

To the IRS, Currently not Collectible is like “putting your tax debt on the shelf”. The IRS wants to close cases. The IRS will take your case out of their active collection inventory (shelving it). The Treasury Inspector General reports that the IRS reported 5.7 million delinquent accounts as Currently not Collectible.

In many cases, our tax relief team have seen clients become Currently not Collectible and remain there until the time frame the IRS has to collect (10 years) expires, after which the IRS debt is permanently removed and forgiven.

What, exactly, would make the IRS want to remove you from their inventory of uncollectible cases to determine if you are no longer entitled to financial hardship status?

To begin with, to remain uncollectible, the IRS requires that you file and pay all of your future taxes on time. That means if you are self-employed and previously had trouble setting aside money to pay your taxes, you have to do that to stay Currently not Collectible.

In addition to remaining current on your future taxes, what else should you be aware of if you are uncollectible?

1. A large increase in your income indicates to the IRS that you may no longer be in financial hardship.  The IRS will be looking at your future tax returns and comparing that your income levels when they determined that you were currently not collectible.  If there are significant increases in your income, the IRS may contact you for a new collection information statement to see if the increased income translates into an ability to pay.

2. When the IRS places your account in Currently not Collectible status, the IRS will mark a follow-up date for review of your account.  If this occurs, the IRS will give you two years as uncollectible until the follow-up date kicks in. The IRS usually marks a case for future review only if there is an indicator when you are placed in uncollectible status that there could be an increase in your ability to pay later.  This could be the case if, for example, you earned significantly more last year, but had a dip this year and you cannot make payments to the IRS, they may mark your case for later review of whether the hardship continues.

3. The IRS has the right to review your uncollectible status for any or reason or no reason at all.  After all, the money is owed to them, and they have the right to determine your situation has changed.  Denying the IRS a request for a new collection information statement is a surefire way to increase their curiosity and make them really, really want it.

That being said, it is more the exception than the rule for the IRS to come back on their own later and review whether you should be knocked out of currently not collectible status.  The most likely occurrence will be defaulting on your future tax filings and payments – and that is within your control.

Currently not Collectible puts the IRS on the sidelines and allows you to live your life without IRS intrusions into your bank accounts, wages, and property.  When combined with the expiration of the Statute of Limitations on the collection of your tax debt, it is a legitimate method of tax relief for your IRS tax debt.


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Tax Debt Attorney – IRS Tax Debt Settlement And Solutions – IRS Tax Attorney

Dealing with IRS tax debt settlement involves navigating the complicated maze of U.S. tax law. An IRS tax debt attorney has the knowledge of tax law and expertise needed to negotiate with the IRS on your behalf to reduce your tax debt and resolve your issues. Our tax relief team offers tax debt help to individuals and businesses with IRS debt problems.

The Internal Revenue Service has an army of tax debt attorneys looking out for their best interests; as a taxpayer, you should have the same benefit of an experienced tax debt attorney looking out for your family’s financial security. We have helped hundreds of clients to reduce tax debt and save thousands of dollars. In the process, we have honed our negotiation skills to get the best possible IRS tax relief settlement for each client.

Our dedicated IRS tax debt attorneys and federal tax lawyers can help find the best possible solution for your federal tax debt problems and negotiate with the IRS on your behalf for IRS tax relief.

Flat Fee Tax Service, Inc. and our Tax Debt Attorneys can help you settle tax debt for a fraction of the amount owed. With the help of our tax debt attorneys, you can eliminate interest charges and penalties, and even remove a federal tax lien. Our tax relief professionals can prevent or stop IRS wage garnishments (in one day), provide effective tax debt solutions to property seizures, bank levies and other tax problems.

The IRS is one of the most powerful entities in the country and it has an army of attorneys on its side. Effective representation with a tax debt attorney experienced in IRS is essential in order for you to defend your rights and protect your assets. With over 50 years of combined experience, the tax relief team at Flat Fee Tax Service, Inc. has both the broad IRS tax law knowledge and the specific expertise in the form of IRS tax debt attorneys required to handle your case. We have also added a new section of IRS tax forms used for taxpayers and tax-exempt organizations. It includes detailed info on most popular IRS Forms such as Form 1040, Form 2848, W-2 Form & much more.


The Offer in Compromise program operated by the IRS, whereby an individual in need of tax debt help pays part of the debt up front and the IRS cancels the remainder, can be a tricky proposition if you have significant assets. After all, if you have significant assets, why should the IRS not simply seize your assets to pay your tax debt?




The answer, often, is that significant liabilities are attached to said significant assets. You have a nice car, but you also have a big car payment. You have a beautiful home, but you have an ugly ARM mortgage that you can’t refinance because your house value has declined. You have a good-looking 401K, but you’re near retirement and need it.

Whether you are someone with a checking and savings account and not much else or you have a lengthy balance sheet and are planning to pursue an Offer In Compromise, consider the services of an experienced tax debt attorney.



If you are hesitating to secure the services of a tax debt attorney out of financial concerns, Flat Fee Tax Service, Inc. will help you with low, affordable fees. We are dedicated to providing tax debt help to our clients with guaranteed financing and an easy payment plans to fit your budget.


Our Tax Debt Attorneys service and protect struggling taxpayers throughout the United States.

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Tax Debt Help – American Tax Debt Relief – Tax Debt Legal Help in IRS Tax Issues

Tax Debt Help: Tax Relief Help with Settling Tax Debt

Flat Fee Tax Service, Inc. is a tax relief firm that will analyze your tax and financial situation and come up with the best tax debt method for you. You can be assured that you will be working with an experienced IRS Tax Attorney who will protect you. You will work directly with our IRS Tax Lawyer. Our tax relief team are experts in tax settlements. We will give you all of your options and will not make promises about settling for less than what is possible. You can be assured your situation will be evaluated honestly and that our tax professionals will find the settlement method that will save you the most money.

How does tax debt help work?

  • You will receive a free, no-obligation and confidential consultation.
  • Our team will determine the best settlement method for your unique tax and financial problem.
  • Find out if you are a good candidate for the offer in compromise program.
  • Our IRS Tax attorneys will file a Power of Attorney with the IRS. You will no longer speak to the IRS.

Tax Debt Help – IRS Settlement – How To Settle With the IRS

The IRS realizes that there are special circumstances where taxpayers simply cannot pay their tax debt. As a result, there are several ways to settle for less than you owe. Here are some tax debt settlement options.

Offer in Compromise

An IRS settlement through the Offer in Compromise program is when you settle tax debt for less than you owe. Obviously, not everyone is eligible to settle their tax debt. The process can be confusing and difficult, and there are strict qualification requirements. The IRS will only accept an Offer in Compromise settlement if your settlement offer is equal to or greater than the amount the agency would be able to collect using forced collection mechanisms (seizing assets, IRS garnishments, etc.).

IRS Penalty Abatement

An IRS Penalty abatement is when the IRS forgives the penalties added to your tax debt. This is a very common method for settling taxes for less than you owe. In fact, about a third of all IRS penalties are removed at a later date. Please note: You only get one opportunity at an IRS penalty abatement. It is important to do it correctly.

Partial Payment – IRS Installment Agreement

An IRS Partial Payment Installment Agreement is when you make payments based on what you can afford rather than the monthly amount required to satisfy your tax debt in full before the CSEDs expire. The balance gets reduced as the statute of limitations comes into effect. Under the statute of limitations, tax debt expires after a certain period of time (generally 10 years from the date it is assessed). As the expiration date hits, that tax debt is erased, and you are no longer responsible for it.

Why pay the tax debt if it is just going to expire? Because setting up a payment plan stops the IRS from taking enforced collection actions like the seizure of assets, IRS garnishment of your wages, or taking your passport.

Tax Debt Help – Innocent Spouse Tax Relief

Innocent spouse relief is only available to taxpayers who have filed jointly with their spouse. Normally, both spouses are liable for all tax debt, IRS penalties, and interest, but there are some rare situations where it’s unfair to hold both spouses liable. If you qualify, the IRS will still hold one spouse liable, but you aren’t responsible.


The Best IRS Tax Debt Help

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IRS Settlement in Pompano Beach, FL


Fernando M. from Pompano Beach came to us as a referral from a very satisfied former client. Fernando needed 7 tax returns to be prepared and filed before our Tax Lawyers could work on his IRS settlement. Our team prepared his non-filed tax returns immediately as we needed to have Fernando compliant with the IRS.

Today, we can announce this: The IRS has accepted Fernando’s settlement. Fernando will pay the IRS $2,000 to settle $63,000 of tax debt. This is fantastic news!

Fernando needed a Fresh Start and our successful Offer in Compromise settlement is providing that.

Great job by “the best IRS Help” team in America.


Tax Forgiveness in Marion, NC


Kenneth M., known as Rick, from Marion, N.C came to us with a $112,000 IRS tax debt. Well, today, our team can tell the world that the IRS has accepted our Offer in Compromise settlement. Rick will pay the IRS $375. He is now done with the IRS. Our team, led by an IRS Tax Lawyer put together the package that got Rick the tax forgiveness he needed. Congratulations to our team. This is another example why we have the “best IRS help team”.

Not everyone is eligible and qualified for tax forgiveness, but if you are, you should take advantage of the IRS Offer in Compromise program.




Offer in Compromise Success ($500 settlement on $68,000 income tax debt): Our tax resolution team announce another successful IRS settlement. Our client, Joseph M. from Hutchinson, MN reached out for our helping hand November 15th, 2015. At that time, Joseph owed the IRS $68,000. He had all of his returns filed, so he was fine with being tax compliant. He earns $6K per month but Joe has $2000 per month in court-ordered child support, which he pays. He also has health insurance that was increasing an additional $300 per month. He had no assets of any kind. Our team, the best IRS help, proved to the IRS that Joe could only pay a total of $500 to settle his $68,000 income tax debt. Now Joe has the Fresh Start he deserves. He will be required to file his tax returns on time and pay whatever he owes for 5 straight years. We congratulate Joe. Who else wants to find out if your income tax debt can be settled?



Private Collection of Some Overdue Income Taxes

Starting this month, the IRS will begin sending letters to a select group of taxpayers whose overdue federal income tax accounts are being assigned to one of four private-sector collection agencies.


We all know how abusive collection agencies can be and have been. We can all imagine a collection agency employee using the power of the Federal Government to abuse a financially struggling taxpayer so that they can collect a commission. We can all imagine a collection agency collector abusing a struggling taxpayer and denying them their rights.


This is a new program that was authorized under a federal law enacted by Congress in December 2015 which enables these designated contractors to collect, on the government’s behalf, unpaid tax debts. Taxpayers being assigned to a private collection agency would have had multiple contacts from the IRS in previous years and still have an unpaid tax bill.

John Koskinen, the IRS Commissioner stated, “The IRS is taking steps throughout this effort to ensure that the private collection firms work responsibly and respect taxpayer rights. The IRS also urges taxpayers to be on the lookout for scammers who might use this program as a cover to trick people. In reality, those taxpayers whose accounts are assigned as part of the private collection effort know they have a tax debt.”

How Does the New IRS Program Work?

The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA). First, the IRS will send a letter to the taxpayer and their tax representative informing them that their account is being assigned to a PCA and giving the name and contact information for the PCA.

Only four private collection agencies are participating in this program: CBE Group of Cedar Falls, IA; Conserve of Fairport, NY; Performant of Livermore, CA; and Pioneer of Horseheads, NY. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private collection agencies are authorized to represent the IRS.

Once the IRS letter is sent, the designated PCA will send its own letter to the taxpayer and their representative confirming the account transfer. To protect the taxpayer’s privacy and security, both the IRS letter and the PCA’s letter will contain information that will help taxpayers identify the tax amount owed and assure taxpayers that future collection agency calls they may receive are legitimate.

IRS Penalty Abatement – IRS Tax Attorney – IRS Penalties



It seems like the Internal Revenue Service (IRS) loves punishing taxpayers with income tax penalties and interest. Income Tax penalties began as a way to encourage prompt payment of taxes owed to the government. IRS penalties are added to overdue income tax debt so often now that the extra charges have become a primary money maker for the IRS. According to the Internal Revenue Service Data Book, 2014 $25.5 billion dollars of civil penalties were assessed.

The best IRS help team at Flat Fee Tax Service, Inc. will work to help you, the taxpayer, who may qualify for removal of IRS penalties or penalty abatement.

What is an IRS penalty abatement? IRS penalty abatement is defined as removal of certain penalties assessed by the IRS.

Two common penalties that can meet criteria for possible abatement are:

  • Failure-to-File: “A failure to file penalty may apply if you did not file by the tax filing deadline”. (IRS Tax Tip 2013-58, April 18, 2013)
  • Failure-to-Pay: “A failure to pay penalty may apply if you did not pay all of the taxes you owe by the tax filing deadline”… (IRS Tax Tip 2013-58, April 18, 2013)

Each of these income tax penalties is calculated a bit differently. Although both are capped at a maximum of 25% of your unpaid tax. The Failure-to-File penalty is generally 5% of your unpaid tax for each month the return is late. The Failure-to-pay penalty is generally .5% of the unpaid tax for each month it is late. The IRS will assess penalties for partial months.

As an example: If you owed $100,00.00 on your individual income tax return and filed an extension, but paid the total when the extension is due on October 15, your penalty would be approximately $3,000.However, if in the same circumstance you do not file an extension, your failure-to-file penalty may be capped, resulting in a much higher total IRS liability.

Interest generally accrues on unpaid tax in addition to penalties until the debt is paid in full. According to, topic 653, “The interest rate is determined quarterly and is the federal short-term rate plus 3%”, and is compounded daily. The complexity of the calculation can cause taxpayers to owe thousands of dollars in addition to the original tax liability.

Interest will continue to accrue. If penalty abatement is granted the calculation for interest is adjusted accordingly.

Call the best IRS help team at Flat Fee Tax Service, Inc. or complete our form on this website to schedule your FREE and confidential consultation.