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Complete Guide To IRS Offers In Compromise | San Diego

Your Tax Settlement Guide: IRS Offers In Compromise

Having a tax debt is a huge problem for both American citizens and the U.S. government. Roughly 5 percent of Americans do not pay their taxes or have tax debt. This equates to about $28 billion per year in lost proceeds for the U.S. government. Is it any wonder that the IRS will become very aggressive with their enforcement tactics. While the IRS has ramped up financial and criminal penalties for those who do not pay their taxes, the agency has also offered various programs to help Americans pay off their debt.

The good news for taxpayers who have a lot of tax debt and are struggling financially is that it’s possible to become tax-debt free without going broke. The key is an Offer In Compromise (OIC) settlement with the IRS.

READ ABOUT IRS OFFER IN COMPROMISE SUCCESS STORIES.

Getting a tax settlement approved by the IRS is difficult. In 2016, out of approx. 80,000 tax settlement that was submitted, the IRS only approved approx. 33,000. That’s an approval rate of about 42 percent.

Offer in Compromise - Tax Settlement
Tax Settlement – Offer in Compromise

FLAT FEE TAX SERVICE HAS A 90% IRS SETTLEMENT APPROVAL RATE.

What is an Offer in Compromise?
The IRS defines an OIC as “a tax settlement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed.” Meaning you pay less than the total debt you owe. Our tax professionals know this is a great tax relief option. What about you?

Who is an Offer in Compromise for? An OIC is generally intended for people who are financially unable to pay their entire tax debt amount. This type of OIC is known as Doubt as to Collectibility.

Insider legal tips:

  1. An Offer in Compromise is not available to those in the middle of bankruptcy proceedings.
  2. Payroll tax cannot be forgiven in an OIC unless you close out your E.I.N. You must shut your business down. If you do that, your payroll taxes will convert to income tax and then they can be settled.

Why will the IRS settle tax debt?

  • Protect individuals for financial hardship. It is in the interest of the IRS to give a taxpayer a Fresh Start so that they no longer have to expend collection resources on a tax debt that will never be paid.
  • The IRS will consent to an Offer in Compromise if the agency believes the tax settlement is the greatest amount it can collect before the 10-year statute of limitations runs out, which effectively stops the IRS’ ability to collect money from a taxpayer.

Interesting fact: The average Tax Settlement that the IRS accepted in 2015 was approx. $7,500.

MANY OF FLAT FEE TAX SERVICE CLIENTS PAID ONLY $500 IN TOTAL

Be warned: using the IRS financial formula doesn’t guarantee that the IRS will accept your OIC. There are many factors that can influence your OIC calculation that this formula cannot take into account, such as how close you are to the statute of limitations, i.e., how much longer the IRS can try to collect on your debt.

Important: The IRS is limited by the statute of limitations (also referred to as CSEDs), which says that the IRS only has 10 years (from date of assessment) to collect to your tax debt. If the 10 years are up, then the IRS cannot legally collect money from you. Read more about why calculating your CSED is extremely important to resolving your tax debt here.

What this means is that older tax debt will have greater bargaining power with the IRS, as they see your OIC as the last chance to collect some money from you before the statute of limitations runs out.

REMEMBER THIS: THE IRS WANTS TO DO 2 THINGS. ONE IS COLLECTING MONEY. THE 2ND IS TO CLOSE A CASE. AN OFFER IN COMPROMISE ACCOMPLISHES BOTH.

https://www.youtube.com/watch?v=Zum6A4QdOJA

IF YOU DO NOT SETTLE WITH THE IRS, AND A TAX DEBT REMAINS IN PLAY, YOU WILL BE LEVIED. THAT’S A FACT.

Taxpayer troubles with getting OIC’s approved

There is a myriad of reasons why a person’s Offer in Compromise gets denied by the IRS. Here are some of the most common reasons:

  • The tax settlement application will be returned without consideration if taxpayers haven’t filed all required tax returns.
  • A taxpayer who can fully pay the liabilities through an installment agreement or other means won’t qualify for an OIC in most cases.
  • A person’s RCP is too high, i.e. he/she makes too much money or has too many assets.
  • Someone in the middle of bankruptcy proceedings.
  • Someone has a “good chunk of money” in their 401K.
  • The IRS will reject your settlement offer if the “I’s” and “T’s” weren’t all crossed on your paperwork.

If the IRS rejects an OIC, the taxpayer will be notified by mail. The letter may or may not explain the reason why the IRS rejected the settlement offer. The agency will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals. The appeal must be made within 30 days from the date of the letter.

How Long Does An Offer in Compromise Take?

The entire Offer in Compromise process, from filing the application to an IRS decision will take approx. 10 to 12 months. The IRS will stop all enforcement action during this period of time. It’s important to also note that penalties and interest will continue to accumulate daily while OIC is being contemplated. So it’s important to get it right the first time, otherwise, you can end up with more debt than when you started. Additionally, submitting an OIC will suspend your debt’s CSED (the timeframe of collectability).

Hiring Our San Diego Tax Attorneys

As you have learned here, getting an OIC approved can be difficult, even for a tax professional, as it all depends on a given individual’s financial situation. However, an experienced tax attorney can think of things that may tip the scales in your favor, such as your case’s statute of limitations (which the IRS is notoriously bad at calculating, and other financial factors.

DON’T OVERPAY FOR YOUR OFFER IN COMPROMISE!

FLAT FEE TAX SERVICE POST FEES ON OUR WEBSITE.

The time involved in all Offers in Compromise is approx. the same. Some people take a few more labor hours than others. Don’t overpay to settle your tax debt. It doesn’t matter how much we save you. How much you owe is IRRELEVANT! It’s all about labor hours it takes to do the job.

When possible, our tax attorneys have helped many clients get favorable OICs approved. Below is a graph some of those cases:

Someone who is contemplating an OIC should seriously consider retaining the help of a tax attorney. Unlike CPAs and enrolled agents from debt resolution firms, a tax attorney isn’t just trained in compliance. In addition to knowing the rules, a tax attorney is trained in the art of negotiation and persuasive tactics, which is exactly what an Offer in Compromise is – a negotiated settlement.

The IRS Tax Attorneys at Flat Fee Tax Service has calculated hundreds of RCPs and CSEDs for clients. They also are experienced to look at an individual’s whole financial situation, using every legal tool to get their clients the best tax settlement possible. Call our tax professionals for your free consultation.

FLAT FEE TAX SERVICE, INC. – 1-866-747-7435

IRS Settlement In Monroe, NC

Today, August 21st, 2018, our IRS tax relief team celebrates an Offer in Compromise success story. Our client, Lacey H., from Monroe, NC, has received word that his IRS settlement has been accepted.

Lacey called our IRS tax defense team on April 15th, 2017. He owed $65,000. Lacey had an Installment Agreement with the IRS. He had a 401K. we provided Lacey with his options during his free and confidential consultation.

Our IRS Tax Lawyers prepared his 2016 tax return to make Lacey compliant with IRS law. We then proceed with his Offer in Compromise. Today, our IRS tax relief team announces that Lacey settled his $65,000 tax debt for a grand total of $11,846.

Our IRS tax relief team provides tax defense to Americans throughout the United States.

For your free and confidential consultation, call 1-800-589-3078.

IRS Tax Relief in Mississippi – IRS Settlement

CONGRATULATIONS
Our client, David T. from Olive Branch, MS has received his IRS Offer in Compromise settlement. David has settled his $67,000 for a grand total of $500.00.
 
David came to Flat Fee Tax Service, Inc. in July 2016. He had not filed his tax returns in 10 years. The IRS was ready to levy (garnish) him. Our IRS tax relief team, led by our Tax Attorneys, provided David with a tax defense and we have settled his tax debt. Today, David has his Fresh Start.
Our IRS Tax lawyers provide IRS tax defense for Americans throughout the United States.
 
If you have an IRS tax debt and need help,
call our team at 1-800-589-3078.
FLAT FEE TAX SERVICE, INC.
BBB ACCREDITED – A PLUS RATING

IRS Settlement in Pompano Beach, FL

OUR TEAM HAS DONE IT AGAIN!

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.

https://www.facebook.com/thebestirshelp

 

Tax Forgiveness in Marion, NC

TAX FORGIVENESS – REAL TAX RELIEF

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.

FLAT FEE TAX SERVICE, INC.

READ MORE:

https://www.facebook.com/thebestirshelp

Crowley, Texas IRS Settlement – IRS Accepted $250 on a $46,000 Tax Debt

Our IRS tax professionals have been on fire. The very best IRS help team at Flat Fee Tax Service, Inc. announces an IRS settlement. Our client, Neshyra H. from Crowley, Texas has had her $250 Offer in Compromise accepted by the IRS. Our client owed the IRS $46,000. Now she owes nothing thanks to the very best IRS help team. This is the kind of work we do everyday for every client.

Stop an IRS Wage Levy/Garnishment in 1 Day

Our team of IRS Income Tax Relief Specialists built our reputation by having an IRS Wage Levy (wage garnishment) stopped and released in 1 (one) day. Whether you have unfiled, missing income tax returns or not, call our team of tax relief experts. Keep your paycheck. Save yourself from economic hardship. Get right side up with the IRS. Once your IRS Levy has been stopped and released, let our team find out if your income tax debt can be settled. Don’t sit on your hands. Be pro-active. Give us a call today.

Melbourne FL IRS Settlement – SSDI Saved

Our IRS Tax Relief Team announces another successful  IRS settlement. Our client, Deborah F. from Melbourne, Florida, has settled her $73,000 income tax debt for a total of $375. Fantastic job by our team of IRS professionals. Deborah came to us because the IRS was going to seize 15% of her Social Security Disability check. She had some missing tax returns and she was desperate, anxious and needed help fast. Our team attacked her problem immediately and today, We stopped the IRS levy, filed her missing returns and had her IRS debt settled for 1 low, affordable fee. Deborah is free from her income tax debt. Great Job! You can expect a Great Job from Flat Fee Tax Service, Inc.Tablet pc with text Great News isolated on black backgroundGREAT NEWS