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IRS GOV -- IRS Offer in Compromise -- Who is Qualified -- Who Can Settle for Less

IRS GOV

OFFER in COMPROMISE

WHO CAN QUALIFY

to

SETTLE for LESS

While our economy was weak and in a constant state of turmoil, many taxpayers have been living with anxiety and agonizing over their delinquent tax liabilities. Many taxpayers through no fault of their own, lost their jobs, had to dip into their 401K's to survive and may have decided to not file their tax returns in hopes of surviving. If the amount of your back income tax debt is unmanageable, you may feel scared, overwhelmed and helpless. You may feel as though you will never be able to pay the IRS the back tax debt owed. Fear of a Federal Tax Lien, fear of a levy against your assets (wages, salary, commissions, bank accounts or Social Security) may leave you paralyzed.

You may fear, with justification, that an IRS Revenue Officer may soon be knocking on your door. Maybe one of these events has already taken place causing you an inordinate amount of stress and financial difficulties.

You may have heard a radio spot or have seen a TV ad touting "Step right up. Pay the IRS pennies on the dollar and get rid of your back tax debt." This sure sounds good, doesn't it? An IRS solution is at hand. Just give us a "ton of your money" and your IRS problems will go away.

If you are smart, you will be skeptical.

RADIO ADS AND TV COMMERCIALS ARE NOT FREE AND THEY ARE NOT CHEAP. SOMEONE PAYS FOR THEM. DON'T LET IT BE YOU.

Are You Ready and Motivated to Fix Your IRS Problems?

Have you been procrastinating? Are you now ready and motivated to get your IRS problems fixed and behind you? If you are ready to move forward, contact the best IRS help team at Flat Fee Tax Service, Inc. Get it done.

Does the IRS really settle and compromise with taxpayers? THE ANSWER IS YES.

Will the IRS really let you off the hook easily? NO. Not everyone is qualified and eligible for an Offer in Compromise.

Who is paying for those "slick" radio and TV ads. You are with inflated tax resolution fees.

Can these tax relief firms really help a struggling taxpayer that owes the IRS? Sometimes yes, sometimes no. It depends if the tax resolution is really interested in helping you or is more interested in collecting a fee from a taxpayer who is not qualified for an Offer in Compromise.

Our team, at Flat Fee Tax Service, Inc., will educate you on the topic of "Offer in Compromise" so that you will know if your settlement Offer stands an excellent chance of acceptance prior to your engaging an IRS Tax Solution firm.

WHAT IS AN OFFER in COMPROMISE?

An IRS settlement through the Offer in Compromise program will allow a struggling taxpayer to settle their back tax debt for less than the full amount owed if the taxpayer cannot afford to pay the tax liability in full. Five (5) years ago the IRS issued a warning (R-2004-17) to taxpayers that they check the rules surrounding an Offer in Compromise before applying for an IRS settlement. The IRS Commissioner at that time, Mark Everson, stated "The Offer in Compromise program serves an important purpose for a select group of struggling taxpayers. But we, at the IRS, are increasingly concerned about unscrupulous promoters charging excessive fees to taxpayers who have no chance of meeting the programs requirements. We urge not to be duped by high priced promises."

STREAMLINED OFFER in COMPROMISE

A few years ago, the current IRS Commissioner at that time, Doug Shulman, expanded the Offer in Compromise program to include more struggling taxpayers. The IRS calls their new and expanded settlement program "Streamlined Offer in Compromise" or "The Fresh Start Initiative". Due to the economic times that we live in, the IRS case load has exploded. More taxpayers than ever are struggling to keep up.

As of right now, the IRS accepts, approximately, 42% of all settlements through the Offer in Compromise program.

FLAT FEE TAX SERVICE, INC. CLIENTS HAVE A 95% OFFER IN COMPROMISE SUCCESS RATE.

WHY IS THAT?

While 42% may seem small, it is up by 20% from 2 years ago. The IRS is still in the business of collecting money for the Federal Government. The IRS will reject every Offer in Compromise that does not have their "I's" dotted and their "T's" crossed. If you try and do the paperwork yourself, you could succeed but most likely you will fail. The IRS will not tell you why your settlement Offer was rejected.

FLAT FEE TAX SERVICE, INC. IS COMPLETELY HONEST DURING OUR CONSULTATIONS. WE DON'T LIE JUST SO THAT WE CAN GET YOUR MONEY.

An Offer in Compromise is not a negotiation as you would a dental bill or a bank loan. The IRS has a complex method to tabulate what your Offer should be. If you are not "right on the money" and try to "lowball" the IRS, your Offer will be rejected.

How to Determine if You are Qualified for an Offer in Compromise:

If you are looking to do an Offer in Compromise for your payroll tax liabilities, forget about it unless you close out your business and your EIN. If you do that, your payroll tax debt will convert to personal income tax and you can do an Offer. Should you remain in business, the payroll taxes (940/941's) are considered a Trust Fund. They are made up of withholding taxes which was never your money to begin with. The IRS doesn't take kindly to unpaid payroll taxes. If you have a choice, always pay your payroll tax liabilities before you pay your personal income tax debt.

Determine the reason for your Offer in Compromise request. There are 2 categories that the IRS looks at:

Doubt as to Collectability - This means you don't have the money to pay the full balance due now, nor will you have it before the Statute of Limitations runs out. The IRS wants to close cases. You need to give the IRS every reason possible so that they will accept your settlement offer.

Doubt as to Liability - This involves various issues regarding your responsibility for the tax liability. As an example, you may be an Innocent Spouse (my crazy Ex owes the back tax debt, not me). There may have been changes to your tax return creating a new tax liability that are the result of an audit or other adjustments. You disagree with these adjustments but the Statute of Limitations to prove your case has run out. Or, it's simply too late to amend your tax returns.

A Word to the Wise. Stick to "Doubt as to Collectability"

The IRS will expect you to put your income tax debt on your credit card, if you have one. If you own property, the IRS will expect you to try and access a home equity loan should you have any equity. In todays economy a lot of people do not have a credit card with any available credit and as far as home equity loan is concerned, most homes are under water or banks are not lending.

You will have to complete Form 433-A, Collection information Statement for Wage Earners and Self-Employed Individuals. from this information it will be determined what kind of monthly payment you can make. This will tell the IRS how much you can pay before the Statute of Limitations runs out.

The IRS could declare you to be Currently not Collectible. This means that you will be left alone for 12 to 24 months. The Statute of Limitations will continue to run out and you will most likely never pay the full amount of your tax debt.

After 12 to 24 months, the IRS will send you a scary Notice which is designed to scare you half to death. This Notice is sent through the Automated Collection System (ACS) which is the IRS computer. This is designed to get your attention and for you to respond. Do so. The IRS is simply checking in and wants to know if you hit the lottery, received an inheritance or got that incredibly high paying job. If nothing has changed much, you will remain Currently not Collectible and you will be left alone again.

If you have been declared to be Currently not Collectible, we, at Flat Fee Tax Service, Inc., recommend that you file an Offer in Compromise.

WHY FLAT FEE TAX SERVICE, INC. FOR YOUR OFFER in COMPROMISE:
Guided by our Christian Values
No Client Complaints
An Experienced IRS Tax Attorney Will Work Directly With You
Reliability and Credibility
Positive Results

ACCREDITTED BY THE BETTER BUSINESS BUREAU - A PLUS RATING

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FLAT FEE TAX SERVICE, INC. FEES:

Low, Flat and Fixed
Fair and Reasonable
Low Initial Retainer
Low Monthly Fees That Will Fit Your Budget

CALL THE FLAT FEE TAX SERVICE, INC. IRS TAX HELP PHONE: 1-800-589-3078 FOR YOUR FREE AND CONFIDENTIAL CONSULTATION.

CONTACT US

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Flat Fee Tax Service

3200 4th Ave., Suite 208,

San Diego, CA 92103

Phone. 800-589-3078

Email. info@flatfeetaxservice.us