Orange County Accountant

With the recent downturn in the economy, Americans find themselves not only facing unsecured credit card debt problems, and difficulties handling their home and vehicle loans, but oftentimes unable to pay their IRS taxes in a timely manner. There is IRS tax debt help available to anyone who finds they owe money for back income taxes to the Internal Revenue Service. The federal government offers many tax relief programs that are designed to help the taxpayer repay the delinquent IRS tax debt due. But if you are a struggling taxpayer with a large IRS tax debt, then repaying the full IRS back tax debt may not be an option for you and your family. In fact, it may seem like an insurmountable financial hurdle you will never be able to overcome. That is why there is an IRS tax relief program called Offer in Compromise.Federal law does grant the IRS the power to agree to a settlement of your IRS tax debt for less than the actual amount you owe. Sometimes, the IRS can accept significantly less to end your IRS tax debt. However, the process of actually getting the IRS to agree to a tax settlement is not simple or straightforward. You may need expert IRS tax debt settlement help to insure that you have filed everything correctly and that you give yourself the very best chance to be approved for a reduced tax debt settlement offer. The IRS does not widely promote this program and it is not a full amnesty program. It is however, a way to significantly reduce your IRS tax debt, and have the “compromised amount” be considered payment in full for the IRS back tax liability. It is as close as you can get to a “fresh start” with the IRS!Knowing when it is prudent to seek professional IRS tax debt settlement help can be crucial to your success. The paperwork for the IRS tax debt settlement program is complicated. You are required to prove that you will never be able to pay back the entire tax debt, or that paying off your tax debt will cause “undue hardship”. You must commit to a full financial disclosure. The IRS looks at your income and all your “lifestyle expenses”. They even require an inventory of all your accounts, possessions, and the equity in your home. Getting approved can be a lengthy process and there are no guarantees you will quality for this form of IRS tax relief. The process can take up to a year. Having professional tax debt help can “make the difference” between success and failure. You simply cannot be expected to know all the complexities of the IRS settlement process to insure your tax debt settlement offer is accepted. But IRS tax relief professionals can give you this “much needed edge”.There are a number of companies that are able to provide delinquent taxpayers with the IRS tax debt settlement help they need. Some of these firms are actually tax law firms, while some are companies with tax specialists that assist with IRS back taxes. These firms are typically staffed with tax attorneys, enrolled agents, CPAs, and even previous IRS employees who have the “inside track” on how to successfully secure a tax debt settlement offer from the IRS. These companies will offer a free tax analysis which allows you to have your tax matter reviewed at no initial cost. These tax firms are also aware of all other IRS tax relief programs available should it not appear that you are likely to quality for tax debt settlement through the Offer in Compromise program. It is always advisable to check the record of any professional tax debt help firm or company you intend to contract with to handle your IRS tax debt problem. It goes without saying that successful resolution of your IRS tax debt is important!

IRS OFFER IN COMPROMISE – IRS TAX SETTLEMENT – IRS TAX RELIEF

An IRS Offer in Compromise ( also known as an OIC ) is an excellent way to settle your IRS Tax Debt with the IRS for much LESS money than what you currently owe. This Settlement of IRS Taxes

Taking on IRS tax debt is a daunting task that presents many confusing issues. The majority of taxpayers are aware of the option to pay their IRS tax debt in full or pay the tax debt in monthly payments or installments. But there is another option, the IRS “Offer in Compromise.” Knowing the steps to success with an IRS Offer in Compromise, also commonly called IRS tax settlement is important, because if your offer is approved you can save thousands of dollars! It can play a critical role in the financial future of any delinquent taxpayer, impacting not only the taxpayer individually, but the financial health and welfare of their family’s future. Settling Your IRS Tax Debt: In a nutshell, an “Offer in Compromise” is an IRS tax settlement. If you qualify for an offer, you can have your IRS tax debt greatly reduced. However, it’s not easy to qualify for an offer. The IRS will weigh your entire financial situation. If the IRS determines you don’t have enough income to satisfy your debt in full, your offer may be approved. It is your job to prove you can’t pay your IRS tax debt in full, so make sure you do your IRS research thoroughly. Insider Tip: It’s notoriously hard to have your IRS tax settlement approved, regardless of “how simply or straight forward it may sound.” But there is a secret way to crack the IRS’s code. The IRS has three ways of determining if you qualify for an Offer in Compromise/IRS tax settlement. The Factors: The IRS may accept the offer based on any of the following:> Doubt as to Collectability: If you know you cannot pay your IRS tax debt in full, you may qualify. Remember, if you have assets that could be sold to satisfy your debt these must be considered when you make your offer to the IRS. > Doubt as to Liability: If you think the debt liability does not fall to you, you’re a good candidate for an offer in compromise. But your reasons must be legitimate. Here are three legitimate reasons listed on the official IRS website:(1) the examiner made a mistake interpreting the law(2) the examiner failed to consider the taxpayer’s evidence or(3) the taxpayer has new evidence. IRS Tax Specialists: Expert IRS tax advisors may give you the edge you need to get your IRS tax settlement approved. Even with some insider knowledge, getting your Offer in Compromise approved by the IRS is difficult to achieve. That’s where IRS tax specialists come in. Tax specialists employ or include Tax Attorneys and Enrolled Agents. IRS tax specialists are experienced in all tax debt issues and know exactly what you qualify for, and how to help you get your Offer approved. They can make the difference in achieving an accepted offer. It’s Just The Start of Your Road to Recovery: Getting your offer in compromise approved is only the beginning of your road to recovery. When your tax debt settlement is approved you are entering a 5 year contract with the IRS. This “contract” means you have to file your taxes on time for five consecutive years. If you default on a payment or fail to file properly and timely, the IRS can charge you the original tax debt amount plus penalties and interest.

Tax law provides many solutions for resolving tax debt. But if you were to contact the IRS directly, they would only alert you to one solution, and that’s paying the tax debt in full. Here are five popular IRS tax relief solutions you should know about to be more informed.

IRS Tax Settlement

It is possible to settle your IRS tax debt. But there are some pitfalls you need to know. First, take a good look at your assets and finances. If you have assets that can be sold to satisfy your tax debt or enough money in your bank account to pay the tax debt in full, you will not be approved for an Offer in Compromise (IRS Tax Settlement). Do not waste the money or effort if either scenario applies to your financial situation.

After you’ve determined that you have a chance at settling your IRS debt, you will need to fill out Form 656 “Offer in Compromise.” Make sure you fill out every single space, leave nothing out. Make sure to sign the paperwork, as this is a common mistake people make when they submit their own forms. You do not want your tax settlement offer rejected due to simple mistakes because you will have to submit 20% of your offer along with the forms. If your offer is rejected, this money is non-refundable.

You must also keep some common IRS tax settlement roadblocks in mind before you submit your offer. First, are you up to date with filing your taxes? If you are not, your offer will be rejected. The second issue is bankruptcy. If the IRS finds out that you have filed for bankruptcy at or around the same time you submitted your Offer in Compromise, your tax settlement offer will be denied. Finally, you need to remember that an IRS tax lien will not be removed when you submit your offer. Tax liens, with few exceptions, are only released when the tax debt is completely satisfied. The tax lien will remain until after your tax debt is paid off.

Getting an IRS Tax Levy Released

The IRS Tax Levy is a fierce weapon the IRS uses to collect on tax debt. If you do not reply to the IRS’s correspondence requesting payment, chances are high the IRS will use a tax lien or a tax levy on you. However, there are a couple of IRS tax relief solutions to try to get your IRS wage or bank levy stopped.

IRS Bank Levy

The IRS will send you a notice stating they intend to levy your bank account. You bank account is now frozen. After the notice you have only 21 days before the IRS seizes your money for good. Working fast is imperative. If you set up an installment agreement or make any kind of good faith payment before the 21 days are up, you can save the money that is in your bank account, and avoid the impact of the IRS tax levy.

· IRS Wage Levy

If you ignore your tax debt long enough, the IRS can implement a wage levy against you. This means the IRS will remove a set amount from your paycheck until your tax debt is paid in full. It is not unusual for the IRS to take up to 75% of your paycheck, leaving you a minimal amount to meet your own monthly financial obligations. You are certainly in need of IRS tax relief if you are the victim of the IRS wage garnishment. The IRS wage levy can also be released or “lifted” but seeking expert IRS tax help may be prudent as each pay period that passes creates more financial damage.

Installment Agreement

You can make monthly payments on your IRS tax debt. The IRS will calculate your income and assets when you file Form 9456. After the IRS determines you qualify, they will set the amount you can pay each month to pay off your tax debt. When you are approved, you must make sure not to default on your monthly payments. Your plan will be canceled and you will not qualify for another installment agreement for six months to one year. The monthly installment agreement is the most common IRS tax relief solution for payment of back tax debts. As you can see, the IRS provides many solutions for taking care of common tax problems. You have to act fast and make sure you respond to any notices you receive from the IRS as soon as possible. The IRS will not and can not be ignored.

When Negotiations Fail

Most people who call the IRS directly have trouble communicating with the IRS. The IRS is trained to collect money no matter what, so having them release your IRS tax levy is nearly impossible for the ordinary taxpayer. When levies are being implemented, time is limited. It’s a good idea to hire a tax care professional that can negotiate with the IRS for you, on your behalf. That will improve your chances at an IRS tax relief solution that is workable for you!