How Does an Offer in Compromise with The Irs Work?

Tax Computation — Nationwide — Ultimate Tax Relief

Businesses or Individuals who have a tax debt they cannot pay may have heard that they can settle their tax debt for less than the full amount owed. It’s called an Offer in Compromise. It’s not universally approved and there are a lot of requirements that go into obtaining approval, but the process is traversable with the appropriate help and the right resources. It’s never necessary to deal with these things alone, so keep

reading to learn how to get the help you need.

What to Expect if Your Offer Is Accepted

The acceptance of the offer is only the beginning of your opportunity to get some resolution. That means you’ll have to ensure compliance with all the stages of the repayment plan to avoid invalidating it. You also need to realize that the federal tax lien will remain until the payment plan is completed, so if it involves more than 12 installments, be ready to accommodate it in future financial planning.

Getting the Help You Deserve With Your Tax Debt

Tax debt relief is a crucial component of achieving financial freedom from the IRS. That’s why we want to give you a top-to-bottom rundown of tax debt relief. We’re going to walk you through the ABCs of tax relief, from why you need it to how it works. We’ll also answer some tax debt relief FAQs so you know exactly what to expect at every step of the tax relief.

Other Important Information

If you currently do not have an outstanding federal tax lien, one may be filed as part of the review and approval process while you are negotiating an offer. The payment and assessment process is also extended during the review period, and your non-refundable payments take

the place of any pre-existing installment plan you might have been paying toward. There’s also a self-help tool online a few keystrokes away that can help you better understand the process the IRS uses for evaluating these offer applications and deciding what to extend as a compromise.

If you are currently going through bankruptcy the IRS will not approve offers proceedings because your tax debt might fall under the purview of the judge ordering your debt restructuring and discharge. Make sure you handle any bankruptcy proceedings before you begin the process of reaching a compromise with the agency. We will help you prepare a great offer, coupled with a well-detailed financial report, which would increase the chances of the IRS accepting the offer promptly.

< Older Post Newer Post >

Tax Time — Nationwide — Ultimate Tax Relief

What Is Tax Resolution?

by websitebuilder • 7 October 2021

Tax Form — Nationwide — Ultimate Tax Relief

What Is the Irs Fresh Start Tax Debt Forgiveness Program?

by websitebuilder • 7 October 2021

One of the biggest unknown to IRS debtors is that under certain circumstances, most taxpayers can have their taxdebt partially forgiven by the IRS. The provision of the law made It possible to pay these debts in full without exorbitant penalties or interests. This provision is therefore called In the IRS Fresh Start Program that allows you to pay off your debts conveniently. Similarly, the IRS has expanded the program by adopting a more flexible program like Offer-in-Compromise that allows you to write off substantial parts of your tax debts conveniently. To this extent, the remaining balance can be spread over a maximum of six years agreeable payments via monthly installment. The payoff balance is usually pre-determined by the present income and the value of the taxpayer’s liquid assets. In addition to helping people pay off tax debts easily, the IRS Fresh Start Program will enable some of the most financially distressed taxpayers to clear up their tax problems, possibly more quickly than in the past without being subjected to interests, penalties, tax liens, seizure of assets, or wage garnishments. The Fresh Start repayment process can be instituted once your IRS tax debt is up to $50,000, by choosing one of the three available repayment plans. The IRS began Fresh Start in 2008 to help struggling taxpayers. It was also lengthened in 2012 to help individual taxpayers or corporate tax-paying bodies with up to $50,000 tax debts. The IRS Fresh Start Program recognizes that many taxpayers are still struggling to pay their bills because of unemployment and its likes so they have put in place this program. The IRS penalties can be waived for taxpayers who have been unemployed. More so, individuals who have been unemployed for a duration of over 30 days are also eligible to request a six-month extension to file and pay the owed taxes with zero IRS penalties. Repayment options available under the IRS Fresh Start Program The IRS Fresh Start Program has made it possible for IRS debtors to choose among three available repayment options. These repayment plans are intended to allow the suitable pay off of tax debts according to the law, as well as to protect IRS Debtors from being subjected to other penalties and interests associated with the payment of these tax debts. 1. Extended Installment Agreement When a person owes the IRS money that they can’t pay in full, they typically will qualify to deal with the debt via a payment plan. This payment plan is called an “installment agreement” in IRS terminology. Simply stated, an installment agreement is a contract with the IRS to pay the taxes you owe within an extended time frame. IRS Debtors can spread their payment over six years, without any form of interests or penalties. With this option, the IRS collection activities like the seizure of assets, tax liens, and wage garnishments will be put on hold. The Extended Installment Agreement is the most ideal among beneficiaries of the IRS Fresh Start program. 2. Offer in Compromise (OIC) The OIC is not commonly used as the Extended Installment Agreement. Though, it is a feasible repayment plan for taxpayers who intend to work out their IRS debts. An offer in compromise is a tool that many taxpayers can use to settle their federal tax debts. If a person owes money to the IRS but cannot afford to pay the full debt due to substantial life events, such as significant loss of income, disability or any other circumstances that will create hardship to the taxpayer if such payments are made in full. In this case, the taxpayer may be able to offer the IRS a smaller that is more affordable as settlement. The IRS called this process offer in compromise (OIC). The offer can include a lump sum payment or a series of payments over a period of months. Unlike a traditional IRS payment plan, if the IRS accepts the OIC and the taxpayer pays as agreed.it is important to note that the chances of getting an OIC approved is higher if the taxpayer makes a reasonable offer to the IRS. Such a proposal must be based on the current financial situation of the taxpayer. It is advisable to work with a tax professional, who would help prepare and submit an acceptable offer to the IRS on behalf of the taxpayer.

Hand Using A Calculator — Nationwide — Ultimate Tax Relief

Tax Lien Withdrawal

by websitebuilder • 7 October 2021

The IRS files federal liens against taxpayers who have unpaid tax obligations. The IRS generally notifies taxpayers after a federal tax lien has already been filed, after all the required statutory warnings. The IRS will first send a Notice of Demand for Payment in writing, specifying the amount due and the opportunity to disagree with contrary evidence or agree with a payment option. Consequently, the IRS will impose a tax lien on the taxpayer. However, the provision of the law allows a taxpayer the option of Tax Lien Withdrawal to make defaulters pay off their tax debt completely via a direct debit repayment option. We will help you set up the direct debit repayment plan, and then proceed to put in a formal request to withdraw the tax lien from your accounts or assets. If the withdrawal is successful, we ensure that such debts will not be reported to the three credit reporting agencies. In summary, we will educate you on all the legal options and workable options based on your unique situation for removing your tax lien. We are equipped with knowledgeable and dependable Tax Professionals that would help you determine which repayment option under the IRS Fresh Start Scheme is suitable for you. And would also assist in filing the required IRS forms and handle the application and set up the best repayment option for you. We are here to take off this burden and assist in making this easier without stress. We would be helping you file any back taxes you may have acquired and also suggest the best repayment plan having understood your situation and put you through a successful application process. Our highly tax professionals are skilled and efficient in submitting all required information including your income and asset value reports. Paying off your bulky tax debts would climatically make your finances better. The IRS Fresh Start Program is a great opportunity to settle your tax debts effortlessly and at your pace. Contact us to get started with the IRS Fresh Start Program and for professional help in every aspect of the process – right from the application to the preparation and submission of your financial reports

Counting The Coins — Nationwide — Ultimate Tax Relief

What Is Tax Services/Tax Preparation Service

by websitebuilder • 7 October 2021

Tax Services means the compilation of necessary information and completion of applicable forms and reports, in compliance with tax codes, regulations and statutes which must be filed with Federal, State and local government entities on behalf of individuals, corporations, general and limited partnerships, trusts or estates, including any consulting services in connection therewith. Most tax preparers prepare, file, or assist with general tax forms. Beyond these basic services, a tax preparer can also defend a taxpayer with the IRS. This includes audits and tax court issues. However, the extent of what a tax preparer can do is based on their credentials and whether they have representation rights. ax preparation includes federal, state, or local tax returns. Tax advisory service includes analyzing financial and tax problems, formulating solutions and making recommendations designed to provide advice on taxation for clients ranging from individuals to business. A tax advisor helps an entity translate personal and/or business goals into targeted action steps designed to maximize the entity's tax position. Tax planning helps clients understand the tax effects of each financial decision. Candidates' experience in tax preparation and tax advisory services may include participation in preparing and/or advising on: Federal and state individual income tax returns; Federal and state corporation tax returns; Tax consequences of acquiring existing businesses and business assets; Reorganization of corporations and partnerships; Estate tax planning; Individual and corporate tax planning (including federal, state, and local taxes); Tax ramifications of corporate and real estate transactions; Personal financial planning for individuals including client employees and executives; Income tax planning for executives including employee compensation and benefit plans; Investment planning; Tax efficiency of proposed gift and charitable contribution programs; Tax impact of income and deductions, contributions, major purchases and investments; Programs for planning for college; Retirement planning programs; Estate planning including preparation of wills, trusts, etc.; Representation of clients in tax negotiations and disputes with the IRS; Representation of clients in IRS, State, or local audit; Property tax assessments; Succession planning; Tax advice to executors and trustees; Tax credit reviews to determine maximum allowable credits (e.g., research and development credits); Trade and customs services - ensures compliance with trade laws and regulations while trying to avoid, reduce, or defer overall customs duties; Transfer pricing studies and evaluation, documentation, and modification of existing policies; Valuation services; and Value Added Tax (VAT) Services. There are four general types of tax preparers: certified public accountants, enrolled agents, tax attorneys, and non-credentialed preparers. Taxes can be confusing and complex. And because they can be complex there is no “one size fits all” solution for everyone. The Principal thing is to deal firmly, decisively, and promptly otherwise you may risk getting penalties and interest, and other measures, such as wage garnishing or placing of a lien on your property.