The Offer in Compromiseis considered the Holy Grail of Tax Relief. The IRS settles a back-tax debt for less than the total amount owed. How much less? Well, that depends on your specific set of circumstances. Each Offer in Compromise is different, depending on the taxpayer.
One thing that’s consistent about all OICs is the list of prerequisites.
Tax Compliance Top Priority
Make compliance your first step. You’ve got to be in current tax compliance before submitting your OIC settlement r...
Sometimes carrying the weight of an IRS tax debt can lead to a lonely place. But, don’t beat yourself up too much. There are ways to fix the problem. You’re not a bad person because you owe taxes. And, you’re not alone, that’s for sure.
The IRS recently released some statistics from their collection of delinquent tax liabilities.In 2016 the IRS added 7,652,000 new tax delinquent accounts for a total of more than $14 million unresolved accounts by the end of the year. All that adds up to m...
We get this question a lot from clients and those that are simply seeking information. Sometimes its less of a question and more of a statement, something like –
“I’m not paying it until they take away the penalties!”
That’s fine, but you may not get too far that way.
The basic answer to the question is… pay it, then ask for relief. If you can’t pay it all at once, set up a monthly Installment Agreement, then ask for relief.
Last month, January 2018, the IRS started reporting taxpayers with “Seriously Delinquent Tax Debt” to the State Department. In this case, seriously delinquent means $50,000+ adjusted yearly for inflation. So, if you fit the criteria below, your passport could be denied, revoked or limited.
The IRS uses the Collection Financial Standards to help calculate your ability to pay a back-tax liability.These limits on monthly living expenses play a significant role in your ability to qualify for the Offer in Compromise settlement program and your Offer amount. The Standards are revised each year around the end of March.
Quick IRS Offer in Compromise Tip
If you’re preparing your OIC for submission toward the end of March, consider waiting a week or so before sending it to the IRS. It ma...
If you meet the Low Income Certification requirements, you will not be required pay the IRS $186 Offer in Compromise (OIC) application fee, nor will you be required to send in your first monthly payment or make monthly payments while your OIC is under review. See the table below and IRS form 565 for more information.
*Taken from IRS Offer in Compromise Booklet revised 01.2014
When you hire Fresh Start Tax Relief, we'll help you determine your total tax debt, your total penalty balance, your CS...
An IRS tax lien affects different people in different ways depending on a lot of different circumstances. One concern we come across quite often is whether or not a delinquent taxpayer with an IRS tax lien can sell or refinance their home. Although a Notice of Federal Tax Lien makes it very difficult to do either, it's possible.
If you have an IRS tax lien that you cannot satisfy with a lump sum full payment and would like to sell your home, you will likely need to do two things. First,...
If you have a formal Installment Agreement with the IRS and are tired of sending in checks each month, one solution is the Payroll Deduction Agreement.
If your employer will agree to it, use IRS form 2159 to have your monthly IRS Installment Agreement deducted directly from your paychecks. This may decrease your chances of submitting a late payment or missing a payment altogether.
The IRS Quick Sale Value multiplier on most assets is 80%. In other words, the Service will value a $100,000 home at $80,000 for Offer in Compromise purposes. But, 80% isn't used for all assets. And, some assets have exclusion amounts that will be subtracted from the Quick Sale Value.
Retirement Accounts are valued at 70% by the IRS for Offer in Compromise purposes while the current cash value is used for Whole Life Insurance accounts.
If you owe the IRS back taxes and want to know more ...
IRS Refund Statute Expiration Date and Penalty Relief
Did you know that the IRS has something called the Refund Statute Expiration Date (RSED)?
The IRS is prohibited from issuing a refund of abated penalties and interest on a full paid account if the RSED has passed.
The Internal Revenue Manual section 25.6.1.10.1.1(6) states:
a claim for credit or refund must be filed within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later.
The IRS now allows individual taxpayers to set up a monthly payment agreement to satisfy a back tax liability online. If you owe $50,000 or less and want to set up a formal Installment Agreement with the IRS without talking to the Service on the phone, here's your chance.
If you owe $50,000 or more in personal taxes to the IRS, you may be required to complete a Collection Information Statement.
Form 433-F, Collection Information Statement
If you owe the IRS between $50,000 and $200,000 and want a monthly Installment Agreement or Currently Not Collectible (CNC) status, the Service may require you to complete form 433-F. It is a two page document that is used to obtain current financial information to determine the best way to satisfy the...
There are quite a few different tax relief options available through the IRS. You hear them advertised on the radio, see them on television and find them everywhere online. But, which one is best for you?
It can be difficult to figure out if you qualify for an Offer in Compromise settlement,Penalty Abatement or just amonthly payment plan. Tax Resolution companies advertising settlements for everyone can make it even more difficult to determine. It's hard to know...
The IRS First Time Abatement (FTA) is a great way to remove a penalty with a single phone call to the IRS. However, you need to either have a formal Installment Agreement in place or have no balance due.
Fresh Start Tax Relief can help you request your FTA from the IRS. We'll help you identify the penalty(s) that qualify for FTA and tell you what to say to the IRS representative to get it.
When you request your Guaranteed or Streamlined Installment Agreement from the IRS, also ask if the Service will defer the filing of a Notice of Federal Tax Lien (NFTL).
The Internal Revenue Manual states the following in section 5.12.2.3.1:
"An NFTL [Notice of Federal Tax Lien] filing determination is not required on Guaranteed/Streamlined Installment Agreements or In-Business Trust Fund Express Agreements."
The IRS is required to notify you before seizing your assets. This means that you'll receive a Final Notice of Intent to Levy in the mail prior to receiving a bank levy or wage garnishment.
A Final Notice of Intent to Levy (Notice LT11, Notice CP90, Letter 1058) gives the taxpayer Appeal rights. You may request a Collection Due Process (CDP) Hearing if you disagree with the IRS' intent to take your assets as payment for the tax. The IRS allows 30 days fro...
Was your Offer in Compromise rejected by the IRS? If so, you may Appeal the initial rejection using IRS form 13711. Be sure to complete the form completely and attach any substantiation documents you may have to support your reasoning for the Appeal.
You may disagree with the Offer Specialist that reviews your OIC package. A disagreement over one or two monthly expenses could make or break your Offer. So could a dispute over an income producing asset or any number of items that could i...
If you've looked at IRS form 433-A(OIC) closely, you've seen the $1,000 exclusion the Service allows for bank accounts. What you may not know is that the IRS may also allow you to exclude one month's living expenses from the balance in your checking account at the time you submit your Offer in Compromise.
If you'd like to know more about the IRS Offer in Compromise, check our website, then call us to find out how we can help.
Are you self employed with an IRS back tax debt? You may be wondering whether or not the Offer in Compromise is the right fit to resolve your tax liabilities. A lot depends on your equity in assets and your ability to make monthly payments toward the back taxes.
If you have tools of trade that you use to produce income, the IRS will treat them differently than other assets you own. The IRS will include either the equity in your income-producing assets or the revenue you generate using th...
According to Internal Revenue Manual section 5.12.2.4, "A decision may be made to defer the filing of an NFTL when the revenue officer can substantiate with reasonable certainty and supported with documentation from the taxpayer, that filing the NFTL will hamper collection."
In general, the best time to request the abatement of penalties associated with your IRS back tax debt is after you've gained current tax compliance. Make sure all tax returns are filed and that you are making all 1040ES payments timely.
If you submit your request for the abatement of penalties while you are missing tax returns or while you are still accruing additional back tax debts, the IRS will be less likely to believe your reasons for falling behind. The Service likes to see a defini...
The IRS Installment Agreement is a popular choice among taxpayers attempting to resolve a federal back tax debt. Here are the different types of Installment Agreements available.
Where a lot of taxpayers get into a difficult spot when trying to pay back an IRS tax debt is with their housing expense. The IRS has placed a ceiling on housing expenses when calculating a delinquent taxpayer's ability to pay monthly.
In many cases, a taxpayer attempting to resolve a back tax liability will be over the housing and utilities expense which can often increase the monthly payment amount requested by the IRS. There are a couple of ways around this depending on your situation...
A tax lien Withdrawal is different than a tax lien release? A Withdrawal removes the public tax lien record and helps assure other creditors that the IRS will not compete for your property and other assets.
Are you wondering how to get started resolving your own tax debt? A great place to begin is your Account Transcript(s).
If you don't want to draw attention to yourself by contacting the IRS in person or via telephone, request your transcripts online here at IRS.gov. You can choose to view them immediately online.
Your Account Transcript will give you a line by line explanation of transactions on the account. It will help you determine the following.
If you are a tax return preparer that has clients with looming IRS tax liabilities, Fresh Start Tax Relief may be a useful tool for you.
Many tax return preparers don't have the necessary experience it takes to effectively negotiate federal back tax liabilities. Fresh Start's system allows tax professionals to capitalize on the back tax resolution opportunity when their clients present it.
Contact Fresh Start and we will investigate your client's IRS collection case, review their Colle...
Did the IRS recently terminate your Installment Agreement? If your IRS termination letter is dated less than 30 days ago, you may be able to Appeal it by submitting a Collection Appeal Program (CAP) request on form 9423.
We recommend catching up your missed payment or correcting whatever issue may have caused your IA to default in the first place before submitting the CAP. In addition, you may want to simply call the IRS once you've corrected the issue to see if a representative can rein...
Since the IRS Fresh Start Initiative revised the Offer in Compromise, more people than ever are getting their Offers accepted. If you've had your OIC accepted, you're likely getting a good deal from your IRS settlement. If your accepted Offer was a Lump Sum Cash OIC, you got a really good deal. Here's why.
You have two basic choices to pay your Offer amount. Lump Sum Cash and Periodic Payments.
A Lump Sum Cash Offer in Compromise requires 20% of your total Offer amount to be paid with...
If you are negotiating a back tax debt with the IRS, you may be subject to the Collection Financial Standards. If you have three vehicles in your family, the IRS may only allow the expenses associated with two of them when determining your collection potential.
In addition, they may not allow your whole monthly car payment or your monthly vehicle operating expenses. The Service has ceilings on these expenses for collection purposes.
At Fresh Start Tax Relief, an educated consumer is our best customer. We help capable taxpayers that have fallen behind with the IRS resolve their own tax debts at a fraction of the price of other tax resolution firms.
If you need full service tax resolution, we can provide you with that option through M&M Financial Consulting, our parent company. But the truth is that most individuals with federal tax liabilities are in a position to resolve their own tax debt directly with the IRS. Mo...
There are a lot of tax resolution companies out there vying for your business. I would say between 150 and 200 national companies. You may think that choosing from this pool of options is a difficult task. But, I don't.
To me the choice is clear. If you are willing to put a few hours of your own time into resolving your IRS back tax debt, then Fresh Start Tax Relief is the clear choice. We will investigate your IRS tax account and show you the steps needed to resolve your IRS income t...
Did you know that the IRS has many online tools that are designed to help you understand your tax responsibilities, answer your questions and reduce the time it takes to get information from the IRS? Interactive forms, calculators and other tools are available to you right now, at no cost.
Have you received a "Notice of Tax Lien Investigation", "Wage Garnishment Pending" or "Tax Reduction/Protection Notification" in the mail?
Read it carefully. This may be a marketing ploy from a tax resolution company. They disguise their mailers to look like official IRS letters and notices. It gets a response from a lot of worried taxpayers that think they're contacting the IRS or state. To me it's a trick and has no place in Fresh Start's marketing. Here's an example of one.
Yes! But you need the right representation at a reasonable cost. Read more here.
How do I know if it will work for me specifically?
This will depend on your personal expectations and circumstances. In most individual IRS tax debt cases, a well planned phone call or two can resolve your income tax liabilities directly with the IRS. And, most people can do it themselves. They just need some initial guidance. Read more here.
Over the road truck drivers keep the economy moving by delivering goods everyday across the country. Life on the road means that some things get put on the backburner. Sometimes taxes are left there for a while and back tax debts pile up.
Fresh Start Tax Relief can help you gain control of your back tax liabilities by contacting the IRS on your behalf to research and investigate your account. We'll also help determine the best way to resolve and reduce your back taxes through government...
At the end of 2014 Fresh Start Tax Relief was hired by a local Chicagoan. He lives two blocks from our office. A balance due on his 2013 1040 tax return prompted him to call.
He already had a formal Installment Agreement in place on a $2,500 tax debt from 2010 and wasn't sure how to handle an additional $10,000 tax debt from 2013.
Here's what we were able to help him figure out.
His accountant did not eFile his 2013 tax return as promised.
He will be able to include his new 2013 balance due ...
The IRS Offer in Compromise (OIC) is a great tool to resolve your back tax liabilities, if you qualify. The IRS looks heavily at your assets and your ability to pay monthly.
If the equity in your assets is more than you owe the IRS, you may not qualify for the OIC. But the OIC equity calculation isn't as simple as taking the fair market value of your asset and subtracting the loan balance. It can be much more in depth than that. For example, the IRS uses a Quick Sale Value (QSV) or liquida...
Your business has an employment or 941 payroll tax liability. You've successfully secured a formal Installment Agreement or CNC status with the IRS to satisfy the payroll tax. But, you've now got a Civil Penalty (IRC 6672) assessment against you personally and need to resolve you need to resolve that too. What do you do?
If you've hired a company to assist you with your business Installment AGreement, they will gladly help you resolve your new pe...
IRS Publication 1, Your Rights as a Taxpayer is a must read if you have fallen behind with your federal taxes. It is a quick two pages, but contains some great information and answers some common questions such as:
Will the IRS think I'm guilty if I hire a professional to represent me?
IRS Pub 1, #9 states that "Taxpayers have the right to retain an authorized representative of their choice".
So if you are too anxious to talk to the IRS yourself, hiring a qualified re...
Fresh Start Tax Relief is happy to work with your CPA or accountant to help you resolve your tax debt. Many of my past clients have had a trusted tax advisor for years. But that person didn't have the knowledge or experience to resolve their IRS back taxes efficiently and effectively.
With help from Fresh Start Tax Relief, you and your trusty accountant can resolve your back taxes without the anxiety and high fees that come with signing over IRS Power of Attorney to a stranger.
Fresh Start Tax Relief has put together five free tax resolution guides to help answer your questions and get you started resolving your federal back tax liabilities. Get them before you pay anyone to help you fix your back tax problem.
Your IRS tax debt could be easier than you think to resolve. You may be able to set up a formal installment agreement with the IRS online or with one simple phone call.
Before you spend any money on outside tax help, download Fr...
Fresh Start Tax Relief's service includes obtaining IRS Account Transcripts for our clients. We then review and analyze the transcripts to help determine penalty and interest amounts, compliance and threat of enforced collection actions such as bank levies and wage garnishments.
You can get started on your own investigation and compliance check by ordering your own transcripts online. Get them directly from the IRS here.
If you need help ordering and analyzing your IRS transcripts, call u...
You've heard it before. Ideas are a dime a dozen, execution is priceless.
Keep this in mind when resolving your IRS tax debt. Whether you hire a professional to represent you in front of the IRS or you're doing it yourself, you will need to execute your part of the strategic plan to resolve your tax liabilities.
You can have the perfect strategy to fix your back taxes and reduce your total liability, but if you don't take action and implement the necessary step...
A client recently sent me an email asking me to review his request to the IRS for penalty relief. The first thing I notices is that his written request was for penalties covering two separate tax years.
The first piece of advice I gave him was to submit a separate request for each year. Send them about a week or two apart. And, mail each request via US Mail Certified Receipt.
Separate requests will give him a better chance at penalty relief. If the requests are together in the same wr...
Did you know that the IRS may accept your request for penalty relief due to Reliance on the Advice of a Tax Advisor? This reasoning for the abatement of IRS penalties generally relates to the Accuracy-Related Penalty.
Read more about it in the Internal Revenue Manual section 20.1.1.3.3.4.3 – Advice from a Tax Advisor.
A tax resolution company with a strong online presence recently reiterated its base fee of $1,500 in a blog post. The blog went on to list fees for services based on different taxpayer situations. The fees range from $750 to $5,500.
Fresh Start Tax Relief's fee is $499, no matter what your situation. Contact us today to find out how we can help you resolve your IRS back tax problem for good.
Fresh Start Tax Relief is able to research and investigate our clients' IRS collection cases using IRS form 8821, Tax Information Authorization to request relevant information from the Service. This helps us determine the best resolution strategy for your specific situation.
Along with our research and investigation results from your case, we consider your Collection Potential (using form IRS 433-F or 433-A) to match the best solutions available to your particular needs. We are able to t...
If you have a personal IRS tax lien filed against you, a Withdrawal of your tax lien may be possible.
If you have an IRS an income tax debt of less than $25,000, you are on a direct debit installment agreement and you've made at least three payments, you may want to request a Withdrawal of your tax lien.
Call us to find out if a Withdrawal is an option for you. Or, check out our website for information.
What makes choosing a tax resolution company so difficult? I think it's all of the different promises, guarantees and options you hear about on the T.V., radio, online and from salesmen over the phone. I've seen a commercial that said IRS tax debts can be settled for 10% of the total amount owed. A radio ad I recently heard stated that new government programs are available to lower tax debts substantially and if I owe $10,000 or more I could qualify.
If you're looking for back tax representation, you've probably talked to a few different companies about your tax issues. And, I'm sure you've been quoted a few different fees for services. Whether you choose to hire professional help or not, may depend on the fee. Most people in tax trouble don't have money to throw around on hidden fees and extra charges. You need to be aware that additional fees are possible and sometimes inevitable, depending on a few factors.
If you recently had an IRS tax lien filed against, you've likely received several phone calls and letters from companies wanting to help you resolve your back taxes. A lot of these companies use scare tactics to get you to hire them. All of them, to some extent, are betting on you sticking your head in the sand to avoid dealing with the IRS.
They don't want you to research your resolution options. They want do want you to believe that the IRS is too difficult and complicated to navigate...
Most of the large tax resolution companies that scammed people out of millions of dollars are gone. Tax Masters, American Tax Relief and a few others no longer exist. The scary thing about tax resolution companies these days is whether or not they will be around tomorrow and their fees.
Fresh Start's parent company, M&M Financial Consulting, Inc., will be celebrating 10 years in business in 2015. M&M Financial and Fresh Start Tax Relief have a solid track record of resolving tax liabiliti...
The IRS Offer in Compromise is a great tax resolution program, if you qualify for it. If you hire a professional to prepare and negotiate an IRS OIC for you, it will likely cost a lot of money.
The Offer in Compromise process takes months. This means that the initial fee you pay a tax resolution company may not be your last.
Fresh Start Tax Relief will tell you whether or not your best resolution option is the OIC and we'll guide you through the process of preparing and submitting your ...
A big question amongst those of you with back taxes owed to the IRS is regarding the cost of IRS representation. Just about everyone would hire a professional if the price was right.
If you talk to five different tax resolution companies and get a fee quote from each of them, you'll likely end up with five different resolution strategies with five different fees. Both the resolution strategies and fees may range from reasonably to way out of the ballpark.
We can help you find the best way to resolve your IRS tax debt. We take the unknown out of your back tax liability and arm our clients with the knowledge and confidence to resolv...
For those of you worrying about your IRS back tax debt and whether or not the IRS is going to sneak into your bank account or garnish your Holiday paycheck, you have a couple of weeks to relax. The IRS takes a break from sending new levies and garnishments December 22nd through January 1st.
However if you already have a levy in place, you still need to work to get it released.
If you owe IRS back taxes, don't procrastinate. Call Fresh Start Tax Relief today at 866-937-5079. We'll hel...
There are a lot of good tax resolution companies and representatives out there. You just need to do your homework on each of them. Start with Fresh Start Tax Relief. Contact us to find out how our service can help you....
Realtors and other real estate professionals often find themselves in back tax trouble with the IRS. Fresh Start Tax Relief is the perfect solution. We'll help you resolve your current IRS back tax debt and advise you how to avoid more back tax headaches in the future.
Our fee is $499. Call us today to find out how our Guided Tax Relief system can help you get out from underneath your IRS back taxes.
Congratulations to M&M Financial Consulting, Inc. for being recognized by the Chicago Better Business Bureau for outstanding marketplace ethics. M&M is the recipient of the BBB's Honorable Mention Torch Award.
More than 1,700 Chicagoland and Northern Illinois businesses were nominated for the 2015 BBB Torch Awards. M&M was one of seven businesses selected. Well done M&M!
The IRS will Release your tax lien within 30 days of full payment. In some cases, the IRS will also Withdraw the tax lien after full payment. The Service may also Withdraw your tax lien even if the tax isn't full paid.
The difference between a Release and a Withdrawal is in how credit reporting agencies treat the two. A Withdrawal will remove the tax lien and any reference of it from a credit report. A Release will not. With just a Release, the tax lien will show up on a credit report f...
At Fresh Start Tax Relief we want to help people get out from underneath of their IRS tax debt without paying high fees to tax resolution firms and attorneys. Most individuals that owe a tax debt to the IRS can resolve it without outside help. You can even request the removal of penalties on your own.
Here are two tips to help you remove IRS penalties on your own.
The IRS can remove penalties over the phone. However, there is a dollar threshold. Although the dollar threshold changes f...
If you've received IRS Notice CP90 or IRS Notice 1058, it's time to act. Each is a Final Notice of Intent to Levy and Your Right to a Hearing. This means that you have 30 days to Appeal the possible levy action and if ignored, about 45 days before the IRS reaches into your bank account and/or garnishes your wages.
The most difficult part of most things in life is getting started. Fresh Start Tax Relief makes it easy to get started and on your way to resolving and reducing your IRS back ta...
You're probably aware that the IRS charges large penalties to those that fail to file and pay their taxes on time. Most of our clients have penalties assessed against them and would like to get them removed. They just don't know how.
At Fresh Start Tax Relief we investigate our clients IRS case to determine the total penalty amounts assessed, the types of penalties assessed and the periods the penalties have been assessed. We also tell our clients how to request the removal of their penal...
During a recent consultation with a client, I advised her that she could resolve her IRS tax debt with a phone call and explained how to do it. She asked me why other "tax professionals" she had talked to told her that she couldn't set up her resolution with the IRS with a phone call. I didn't have an answer for her.
Salesman for tax resolution companies will tell a struggling taxpayer a lot of different things to get money sent their way. The truth is that most personal IRS back tax deb...
When you're requesting the removal of IRS penalties, there are a few things that you should do beforehand. The first priority when resolving and reducing your IRS tax debt is gaining compliance. It's a good idea to be in tax compliance before you request the removal of penalties. The IRS likes to see that the problem that caused you to fall out of tax compliance and accrue the penalty has been fixed. It is difficult to sell the IRS a reasonable cause abatement request when you are still n...
"Filing and Paying Late - IRC 6651 — We charged a 5% combined penalty of 4-1/2% for filing late and 1/2% for paying late because, according to our records, you filed your return late and didn't pay your tax by the due date of your return. The combined penalty is 5% of your unpaid tax for each month or part of a month your return is late, but not for more than 25% (22-1/2% l...
This is a question that we hear frequently. I think there are quite a few salesmen out there that tell prospective clients that without a tax attorney, they won't be able to do certain things while negotiating their back taxes with the IRS. This really isn't true. The IRS states that Enrolled Agents, certified public accountants and attorneys have unlimited practice rights before the IRS. This means that any of them can fully represent a delinquent taxpayer before the IRS Collection divis...
I don't carry cash anymore. I use my credit card or debit card, and sometimes it gets me into trouble. I'm not alone in this. A lot of my clients over the years have been in credit card debt along with the IRS and state back taxes. It's something we commonly see at Fresh Start Tax Relief.
Credit card debt is unsecured debt. IRS and state back tax debts are secured debts. Once a tax lien is filed and made public, the IRS or state has a lien position and right to assets. Read more abo...
If you owe back taxes to the IRS and you've received a notice from the Service, your case may be in IRS collection status. Once the IRS starts issuing notices to collect a past due tax debt, the machine is moving forward and the collection process has begun.
We understand that is never fun to receive a letter from the IRS let alone open it and try to figure what in the world it means. When you owe taxes personally to the IRS, the Service will not give you any courtesy calls to set up arr...
The average IRS Offer in Compromise takes a tax professional about 35 hours to complete from start to finish. Multiply that by an hourly rate of just $100 and you have a $3,500 fee on your hands. Good luck finding a tax resolution professional that's any good to work for less than $200 per hour. And if you're hiring an attorney, that hourly rate is likely to be between $250 and $500.
A lot of tax resolution professionals out there sell their clients the IRS Offer in Compromise before they ...
If you're considering hiring any of the companies listed below to help you resolve your IRS back taxes, contact Fresh Start Tax Relief first. Our $499 Service is outlined here. Even if you don't hire us, you'll learn something about your back tax debt. Securing a solution to your IRS tax problem may not be as difficult as these other companies make it out to be.
Call Fresh Start Tax Relief at 866-937-5079 or complete our contact form to the right.
In an effort to treat all taxpayers that are attempting to resolve a back tax debt equal, the IRS has limits or caps on certain monthly expenses. The Service calls these expense ceilings Collection Financial Standards. The Service uses the Standards to help establish your ability to pay.
The Collection Financial Standards can be found online at here.The Standards are updated yearly, April 1st.
The Standard amounts determined by the IRS for Food, Clothing and misc items, as well as those...
Reasonable fees are always a concern when you're looking help resolving and reducing your back IRS taxes. Depending on your case, tax resolution companies charge anywhere from $500 for an investigation only up to $10,000+ for larger cases.
Fresh Start Tax Relief's fee is $499. It doesn't change. Here's what you get.
Investigation of your IRS back tax case
Analysis of your Collection Potential to determine your best resolution options
A lot of people that owe back taxes to the IRS and state also owe other creditors. Many of them have considered bankruptcy as an option to resolve all of their debts. In some cases bankruptcy can help. M&M Financial's blog about taxes and bankruptcy discusses it briefly. And, Fresh Start has some limited information about it here. The IRS has provided some useful information on their website here.
Keep in mind that bankruptcy works differently for everyone based on individual circumstan...
We all know that the IRS Offer in Compromise (OIC) is an option available to some delinquent taxpayers to settle their federal tax debt for less than the total amount owed. But the finer points of the OIC are what you need to know in order to successfully submit your Offer and increase your chances of success. Here's a quick tip for those delinquent taxpayers that are really struggling financially.
The IRS OIC has an application fee of $186. If you meet the IRS Low Income Certification r...
Fresh Start Tax Relief recently had a client that needed to know whether or not he qualified for the IRS Offer in Compromise (OIC). Most of the facts were in his favor. His IRS tax debt totals more than $30,000. His family's monthly expenses do not exceed theIRS Collection Financial Standards. He has zero disposable monthly income and cannot make a monthly payment toward his tax debt. His tax liability was the result of a fraud investment scam that was out of his control. But, there is...
The IRS charges hefty penalties for failing to file a tax return on time when tax is owed. If you must file your personal 1040 tax return late, send the IRS form 4868 Automatic Extension of Time to File U.S. Individual Income Tax Return before the return due date. Remember, the Automatic Extension to File is not an extension to pay.
Form 4868 is a six month extension to file. If you do file for the extension, you must file your tax return by the six month extension deadline. If you don...
If you've stumbled upon this blog, you're looking for help resolving your IRS tax debt. You may be wondering whether or not you can resolve your tax debt on your own or if you need a professional.
The answer really depends on the size and complexity of your tax debt, and your level of comfort with the IRS. We believe that most personal, IRS tax debts can be resolved quickly and easily with a little guidance. Guidance is exactly what Fresh Start Tax Relief offers its clients. When you hire ...
If you owe back taxes to the IRS and you've received a notice from the Service, your case may be in IRS collection status. Once the IRS starts issuing notices to collect a past due tax debt, the machine is moving forward and the collection process has begun. 
The IRS charges hefty penalties for failing to file a tax return on time when tax is owed. If you must file your personal 1040 tax return late, send the IRS form 4868 Automatic Extension of Time to File U.S. Individual Income Tax Return before the return due date. Remember, the Automatic Extension to File is not an extension to pay.