Tax Relief Blog
Offer in Compromise First Step
Mar 27, 2018 by
The Offer in Compromise is 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...
IRS Collection Statistics
Mar 13, 2018 by
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...
IRS Collection Financial Standards Update Yearly
Jan 30, 2018 by
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...
What if I can't afford to submit my OIC to the IRS
Jan 4, 2016 by
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...
Retirement and Insurance Accounts in an Offer in Compromise
Dec 14, 2015 by
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 ...
Offer in Compromise Appeal, Form 13711
Oct 12, 2015 by
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...
Protect Your Bank Account Balance in an Offer in Compromise
Oct 5, 2015 by
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.
Protect Your Income-Producing Tools in an Offer in Compromise
Sep 28, 2015 by
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...
Two Ways to Calculate and Pay Your IRS Offer in Compromise
Jul 13, 2015 by
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...
Asset Values in an Offer in Compromise
May 4, 2015 by
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...
Do I really qualify for the IRS OIC, CNC, PPIA, IA or Penalty Abatement
Feb 9, 2015 by
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.
The problem with this is that the IRS d...
IRS Offer in Compromise Fee
Jan 12, 2015 by
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 ...
How Do I Prepare the IRS Offer in Compromise Form?
Sep 2, 2014 by
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 ...
Offer in Compromise Low Income Certification
Jul 28, 2014 by
The IRS OIC has an application fee of $186. If you meet the IRS Low Income Certification r...
Do I Qualify for the IRS Offer in Compromise
Jul 14, 2014 by
Fresh Start Tax Relief Helps People Help Themselves
Jun 30, 2014 by
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 ...