Tag Archives: IRS

IRS Tax Relief – IRS Forgiveness – Offer in Compromise

If you owe the IRS and can’t pay, you may qualify for the IRS Debt Forgiveness Program. The IRS Forgiveness Program is officially called an Offer in Compromise. The Offer in Compromise program is the ultimate IRS Tax Relief option.

Under certain circumstances, financially struggling taxpayers can have their IRS tax debt partially forgiven. The IRS will never take 0 dollars as a settlement. The IRS will go as low as $100 as a total settlement. When the IRS considers “IRS Forgiveness”, the present financial condition of the taxpayer is of primary importance. That means the IRS cannot collect more than a taxpayer can pay. If any collection action by the IRS would force a tax debtor into a financial crisis, the IRS cannot collect the back taxes.

IRS Tax Relief – IRS Forgiveness – Offer in Compromise

Taxpayers that have the resources to pay only a partial amount of their tax debt can apply to the IRS government payment plan called an Offer in Compromise to resolve the remaining amount. Depending on the financial capacity of the taxpayer, the IRS significantly reduces the total debt to an amount that the taxpayer can pay. This reduced amount can be paid in a lump sum or in fixed monthly installments.

IRS Tax Relief – Fresh Start Initiative is an “Expansion” of the Offer in Compromise Program

To make it easier for taxpayers to qualify for an IRS Forgiveness in the Offer in Compromise program, the IRS has expanded their Fresh Start Initiative. Under these more flexible rules, taxpayers do not have to disclose extensive financial details to the IRS to judge their paying ability. The Fresh Start Initiative for IRS Forgiveness offers financially struggling taxpayers the following advantages:

  • The IRS now looks at only one year of future income for offers if they are paid in five or fewer months when calculating a taxpayer’s reasonable collection potential. This is down from previous four years. For agreements of six to 24 months, the IRS now looks at two years of future income instead of the previous five years.
  • Taxpayers are now allowed to make their student loans’ minimum payments for post-high school education loans guaranteed by the federal government.
  • Taxpayers may, under certain conditions, pay delinquent federal and state or local taxes in monthly installments if they cannot pay it in full.
  • The standard allowance for the Allowable Living Expense amount has been expanded. This allowance now includes credit card payments, bank fees and charges, and other miscellaneous allowances.

What Should You Do Next?

Understanding your IRS tax debt and dealing with the IRS isn’t easy to do alone, even with programs like IRS Forgiveness. Luckily, there are IRS Tax Relief professionals at Flat Fee Tax Service, Inc. who can help you navigate your IRS Forgiveness options.

FLAT FEE TAX SERVICE, INC. – Good People – Doing Great Work



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 IRS.gov, 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.


IRS Fresh Start Initiative – IRS Offer In Compromise Settlement

The IRS, in 2012, expanded their Offer in Compromise program with its Fresh Start Initiative, to help financially struggling taxpayers who are unable to pay their taxes due to financial difficulties. The Fresh Start Initiative, in addition to providing income tax relief to American taxpayers, also helps the IRS keep a check on the number of tax default cases, as it encourages more taxpayers to settle their old income tax debt so they can resume tax compliance.

What Qualifies You For The Fresh Start Initiative?

The IRS, under the Fresh Start Initiative, provides a number of options to financially distressed taxpayers.

1. IRS Penalty Relief

The Fresh Start Initiative allows eligible taxpayers up to a 6-month extension to pay their taxes. The IRS penalty for not paying income tax debt by April 15 is waived off until October 15. If, however, the taxpayer fails to pay their income taxes beyond the revised date, a penalty is charged.

The IRS penalty relief is available to two categories of taxpayers

  • Wages earning individuals who have been unemployed for a minimum of 30 consecutive days.
  • Individuals who experienced a dip of 25 percent or more in their income due to a slowdown.

Fresh Start Qualification Criteria

If you are married and filing jointly, your adjusted gross income must not exceed $200,000. If your filing status is single, qualifying widower, head of household, or married filing separately, the adjusted gross income must not exceed $100,000. In addition, if you have an outstanding of more than $50,000, you will not be qualified to receive a waiver.

2. IRS Installment Payment Plan

The IRS Installment Agreement provision allows taxpayers to pay their income taxes, in installments, in a scenario wherein the taxpayer is unable to pay in full. It also gives taxpayers more time to pay. The threshold for the maximum amount of debt against which an installment plan can be prepared has now gone up from $25,000 to $50,000, with the maximum term for the repayment of installments being 6 years. Though you need to pay less in penalties, the interest will continue to accrue on your outstanding dues.

Taxpayers can set up an installment agreement with IRS by using the Online Payment Agreement (www.irs.gov) without any intervention of an IRS agent. It is, however, essential that they agree to pay the installments through a direct debit mode.

3. Offer in Compromise (OIC) IRS Settlement

The Offer in Compromise provision allows financially struggling taxpayers to settle their outstanding income taxes for less than what they actually owe to the IRS. After the expansion of “Fresh Start” initiative, it has become easier for taxpayers to qualify for an Offer in Compromise settlement, as the IRS has relaxed the qualification standards, and therefore, more people are now eligible to settle with the IRS for less.


To apply for an Offer in Compromise (OIC) settlement, the taxpayer needs to file Form 433-A (OIC) or Form 433-B (OIC), and deposit a non-refundable application fee of $186. If, however, the taxpayer qualifies under the Low Income Certification guidelines, they would not have to pay the application fee. In addition to the form and application fee, the taxpayer may also be asked to pay the first month’s installment or 20 percent of the settlement amount, at the time of filing.


IRS Wage Garnishment – IRS Levy – IRS Tax Attorney

Wage Garnishment/ Bank Levy Release

Can You Live Off of 50% of Your Paycheck?

Of course, you can’t. When the IRS or state has tried to collect your back income taxes unsuccessfully, they will begin to seize your assets. Assets can be your bank account(s) and/or your paycheck and wages. So by not opening letters or returning phone calls, they will take the next step. This process is called a “levy”. When the IRS seizes your wages, it’s commonly termed a “wage garnishment”. IT’s really called a levy

The IRS, taxing authorities, are legally allowed to:

  • Seize Bank accounts
  • Demand payment from accounts receivable (yes, if someone owes you money, they will have to pay the IRS and not you.. effectively putting you out of business)
  • Take control of property for auction
  • Assume title on vehicles.

Virtually anything of value can be seized to satisfy the outstanding income tax debt. Levies and wage garnishment can be the most stressful and humiliating of all collection tactics. The IRS will do this to force taxpayers into willful compliance. We do not recommend that you go at this alone.


The best IRS help team, at Flat Fee Tax Service, Inc., is led by an IRS Tax Attorney who will contact the IRS IMMEDIATELY to release you wage garnishment and/or tax levy.

Flat Fee Tax Service, Inc. has been very successful in getting levies lifted and garnishments stopped. Most often, our clients get their IRS wage garnishment stopped in one day. Our IRS Tax Attorney knows your rights as a taxpayer and our IRS help team is here to help. If you are at this point, then your best bet is to seek out our professional help to put a stop to further IRS enforcement action.


Can The IRS Levy Seize My Bank Account – Yes – IRS Tax Attorney Help

The IRS can legally seize, levy your assets to satisfy an income tax debt. When the IRS sends a tax levy to your bank, the levy attaches to all the funds in your account at the time. Your bank is required to give your money to the IRS once a 21 day period elapses. You have twenty-one (21) days (includes Saturday, Sunday and holidays) to have the IRS release your money back to you. You have no time to lose.

IRS Actions Before Issuing a Bank Levy

The IRS will not levy and seize your bank account(s) until the IRS has sent you several notices of your obligation to pay your income tax debt. The IRS must make a tax assessment against you and send you a Notice and Demand for Payment.

If you do not respond to this notice or refuse to pay the income tax debt, the IRS may send additional notices before finally issuing you a Notice of Intent to Levy and Notice of Your Right to Hearing. This must be sent to you at least 30 days before the levy.

You have a right to this hearing, known as a Collection Due Process (CDP) hearing if you respond to the notice within 30 days. If you request a hearing, the IRS cannot levy your bank account until after the hearing. This is why it is critical that you take action immediately if you have received a Notice of Intent to Levy.

At the CDP hearing, you can negotiate an IRS settlement through the Offer in Compromise program or enter into an installment agreement. You can also dispute the amount if you believe the IRS has made a mistake in assessing the tax, provided that you haven’t had a prior opportunity for an appeal. If you are unable to negotiate a deal, you can live with at the CDP hearing, you have the option of filing a petition in Tax Court. Tax Court is not your best option.

What to Do Once a Bank Levy Is Served?


If you missed your chance to have a CDP hearing and the bank levy has been served, your bank must hold onto your funds for 21 days before handing them over to the IRS. This short delay gives you time to negotiate or otherwise stop the levy before the IRS takes your money. The levy freezes the funds in your account, so you will not be able to avoid the levy by withdrawing funds.


It is much better to negotiate with the IRS while your money is still in your possession. You may have several options for disputing your tax or negotiating a payment agreement, and they are all preferable to an IRS bank account levy.

If your bank account has been levied, contact an IRS Tax Attorney immediately. This is your only hope


The Pros and Cons of Using an IRS Tax Attorney – Local or Nationwide

If you are in need of IRS tax help, be sure to consult with an IRS tax resolution team led by an IRS Tax Attorney. Taxpayers who have an income tax debt have found federal tax relief essential when it comes to resolving disputes with missing tax returns or past due income tax debt, Looking for an IRS Tax Attorney help often comes down to assuming you have to find a local professional. But is this really the best move for you?

Although your first priority might be to find a free tax lawyer, you’ll be unlikely to locate one. You will want an IRS Tax Attorney who resolves IRS tax problems on a daily basis.  You do not want an attorney who may interface with the IRS “every so often”. As a matter of pragmatism, it’s good to remember that you get what you pay for. In this respect, free tax assistance probably won’t be to your advantage. Real income tax problems require real “honest to goodness” solutions. While you would look for a local plumber or a local doctor to attend to your drainage or health needs, local tax relief attorneys aren’t always your best option.

Contemporary Realities

You don’t have to ask, “When do I need an IRS Tax Attorney?” knowing already that your income tax issue is one that requires an experienced licensed professional, you’ll next ask, “Where do I get IRS help?” Enlisting a local tax relief lawyer may be in your interest if you’re familiar with the party you’re going to be working with. However, finding reliable tax relief lawyers–ones you don’t already know–can be a challenge. More than likely a local tax attorney will be more expensive. Also, a local tax attorney will probably not allow you to stretch out your fees over an 11 month period as Flat Fee Tax Service, Inc. will.

Who can you trust? You want to make sure that you find not only an affordable IRS tax attorney but also one that you know can handle your income tax problem accurately and legally. How do you gauge these qualities in a tax professional you’ve never met? Once upon a time, you had to rely on word of mouth. These days, though, finding an IRS Tax Attorney for IRS problems comes down to using all the modern tools at your disposal.

The internet is your best friend when it’s time to conduct research. If you know when to hire a tax attorney, you can first begin by searching for tax resolution companies. Reputable organizations or individuals will have a basic description of their services, as well as individual reviews on non-affiliated websites. The more information you have about the tax professional in question, the more informed your decision will be.

What to Look For

Is the IRS Tax Attorney Accredited by the Better Business Bureau?

Does the IRS Tax Help Company Have Complaints?

When looking for an affordable IRS tax attorney or tax relief professionals that are also reliable, there are a few key things to keep an eye out for. Having positive Better Business Bureau reviews certainly adds credibility but you also want to look at the company’s specific area of expertise. Choosing the best IRS help team that has a reputation for both sound tax resolutions, as evidenced by previous clients, and experience handling a variety of income tax issues is ideal.

An IRS Tax Attorney may ultimately come down to how your first consultation goes. When you describe your income tax problem to a specialist, pay attention to what you’re told. First, you should never be pressured to pay for services up front; nor should you accept tax help services that are not clearly defined for you. These rules apply whether you’re dealing with someone locally or a nationwide organization. It all comes down to their reputation and how they conduct their business. And just as you wouldn’t drive to the IRS headquarters to discuss your problem, finding a reliable tax professional doesn’t necessarily mean going down the street to meet them. Place your trust in your research first, then the abilities of your licensed tax professional–wherever they reside.


IRS Negotiated Tax Settlements – Settle Your Tax Debt – IRS Tax Attorney

Did you know that your income tax debt with the IRS can be settled for less than you owe them through their Offer in Compromise program? This is also called “The Fresh Start Initiative”.

The Offer in Compromise program allows financially struggling taxpayers to settle with the IRS on income tax debt that has been:
1) incorrectly assessed or
2) for liabilities they cannot afford to pay.


The IRS Code states: “We (the IRS) will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential” (Internal Revenue Code section 7122).

If you are eligible and qualified for an IRS settlement, it is possible to completely eliminate all of the taxes you owe – including all penalties and interest – at a huge discount. There is no preset bottom limit that the IRS will accept to settle your debt especially if your offer is done “right.”

It doesn’t matter if you owe the IRS a “GAZILLION” dollars, it’s all about the taxpayer’s ability to pay their income tax debt.

Ultimately, the IRS does not look at how much you “owe”. It is simply looking at “how much you earn” and “how much in assets you own”. If your Offer in Compromise is done correctly, it may be possible to settle yours for as little as $100. Many of our clients at Flat Fee Tax Service, Inc. have paid between $100 and $500 to settle their income tax debt. Every taxpayer is different. It is all about your ability to pay and lack of assets.

The IRS has a set financial formula with guidelines and regulations that specify how a deal has to be structured for it to be accepted. Your IRS Tax Attorney at Flat Fee Tax Service, Inc. will know exactly what the IRS is looking for and what an acceptable offer would be.  If an Offer in Compromise is submitted that isn’t done according to their guidelines, it will be REJECTED. The 1st part of the IRS process has the IRS looking for clerical and procedural errors in your paperwork.  If you make a “trivial” paperwork mistake, the IRS will reject your Offer in Compromise as “unprocessable”. Then you would need to restart the entire process.


Call us today at 1-800-589-3078 for your FREE consultation regarding an IRS settlement or your Unfiled Tax Returns. Don’t let your unfiled tax returns keep you up at night.


IRS Tax Attorney – IRS Tax Relief

Tax Problems

If you are here, it’s likely that you have some kind of income tax problem. The IRS will take certain enforcement actions if a taxpayer has a lingering tax debt and has not made a clear resolution to pay back their tax debt. Some IRS tax debt problems are simple and can be handled with a quick Google search and phone call to the IRS, while other tax problems may require some professional IRS income tax help.

Here at Flat Fee Tax Service, Inc., we have the best IRS help team that can help you resolve a wide range of tax problems. Whether the IRS is enforcing collections through IRS tax liens, bank levies or wage garnishments, our experienced team of tax professionals will work with you and the IRS to resolve your tax problem. Our teams of IRS professionals are led by an IRS Tax Attorney who you work with directly. Our team is here to help you with an IRS tax levy, income tax penalties and interest, unfiled taxes and IRS settlements.

Income tax problems can be a huge burden to taxpayers and may even land them in jail but fear not Flat Fee Tax Service, Inc. is here to defend and protect.

Income Tax Solutions

Every IRS tax problem has a tax solution. Some income tax problems are simple and others may be complex. However, a lingering IRS tax debt is not a liability you want to contend on your own and is not one that can be ignored or excused. Once you’ve identified your income tax problem, you must consider which tax solution will resolve your tax debt while affording you the lowest possible financial impact.

IRS back tax debt problems usually come unexpectedly and you’ll be expected to pay your tax debt in one payment. Most of the time, taxpayers notified of these back taxes may not be able to afford to repay the tax debt all at once. Fortunately, we can help you with a tax resolution. There are different IRS payment plans available and we will work with you to determine which tax solution is best for you.

An IRS settlement through the Offer in Compromise program is offered to taxpayers who are in a financial bind and cannot afford to pay their tax debt in its entirety. An Offer in Compromise is a great option for taxpayers to reduce and eliminate their tax debt. There are certain eligibility requirements that you must meet in order to qualify for this IRS settlement plan and we can go over that when you call us for your free and confidential consultation. Our IRS tax attorneys are here to help you determine your financial eligibility for the Offer in Compromise plan and negotiate with the IRS to get you closer to resolving your tax debt.

Another IRS payment plan that can help resolve your IRS tax debt is an IRS Installment Agreement. An IRS installment plan allows taxpayers with an income tax debt to pay back their debt over an extended period of time. This can be extremely helpful for taxpayers who cannot afford to pay off their tax debt in one fell swoop. There are various types of installment agreement plans that taxpayers can be approved for. We can help you get approved for an IRS installment agreement that works effectively with your financial situation.

Whether it’s an Offer in Compromise plan, IRS installment agreement plan or placing you into Currently Not Collectible status, our team of tax professionals will work with you to determine a tax solution that will work with your unique tax debt issue and your ability to pay it back.

We are dedicated to helping you find the perfect tax solution to your tax problem.

IRS Tax Attorney

Our IRS Tax Attorneys and licensed tax professionals will work directly with you to resolve your IRS debt problems. But before seeking professional tax relief assistance, you may need to yourself ask a few questions. Do I need an IRS tax attorney? What does an IRS tax attorney do? What’s the difference between an IRS tax attorney and a licensed tax professional?

Your IRS tax relief solution may be simple and can be solved on your own. However, depending on the size and complexity of your IRS income tax debt, you may need assistance from a tax attorney or licensed tax professional. The best IRS help team at Flat Fee Tax Service, Inc. led by our IRS tax attorney will work with the IRS to resolve your income tax debt problem and offer you the lowest monthly payment allowable by the law. You can rest assured knowing that your IRS tax debt will be resolved with the help of Flat Fee Tax Service, Inc.

Don’t let your IRS tax debt cripple your finances any longer, take action and get your tax debt resolved now!