IRS Settlement | FAQ | Flat Fee Tax Service | San Diego
Updated: Feb 12
TAX PROFESSIONALS ANSWER IRS TAX SETTLEMENT QUESTIONS 1. What is an Offer in Compromise?
An Offer in Compromise is a formal IRS debt settlement agreement offered by the IRS. Consequently, it allows financially challenged taxpayers to settle their IRS tax debt for less than they owe. In fact, the IRS will only accept a tax settlement through the Offer in Compromise program (#IRSsettlement) if it believes that the taxpayer cannot make the payment in full or through a payment plan. The IRS also must be shown that your IRS tax relief Offer in Compromise submission is equal to or greater than the amount the IRS could expect to collect from you, the financially challenged taxpayer. SUCCESSFUL OFFER IN COMPROMISE STORIES
2. What are the qualifications for an Offer in Compromise?
There are three different IRS tax relief ways that a taxpayer can qualify for an Offer in Compromise.
1. Doubt as to Collectibility
2. Doubt as to Liability
3. Effective Tax Administration
Nine times out of ten, all you should be concerned about is "doubt s to collectibility".
3. What forms do I need to request an Offer in Compromise?
Requesting IRS tax relief through an Offer in Compromise is complicated and requires lots of documentation. The IRS tax relief requirements vary based on whether you owe individual or business tax:
a. IRS Form 656-B – Offer in Compromise booklet for doubt as to collectibility or based on effective tax administration. It contains Form 656, 433-A (Offer in Compromise) and 433-B (Offer in Compromise).
b. You need three months of documentation on just about every expense and income source. This includes pay stubs, credit card statements, housing, investments, transportation, day care expenses, tax returns, etc. Photocopies will suffice as the IRS does not want originals.
c. If you are applying for an Offer in Compromise because you have serious doubts that you owe a certain amount or anything at all to the IRS, then you will need to use IRS Form 656-L.
4. Should I use an IRS Tax Attorney for my Offer in Compromise?
Yes! Yes! Absolutely! Yes! That is if you want to achieve success. A significant amount of Offer in Compromise rejections are due to errors in the settlement submissions. If you want your chances of a successful IRS tax relief effort via an Offer in Compromise (#IRSsettlements) increased, you should be represented by an experienced IRS Tax Attorney. The Offer in Compromise process is fairly complex and our IRS tax relief firm can greatly increase your chances for IRS tax relief by acceptance of your Offer in Compromise. Remember this, if the tax lawyers at Flat Fee Tax Service. does not believe you are a good candidate for an Offer in Compromise, they will help you find the next best IRS tax relief option for you to resolve your taxes with the IRS.
5. Can anyone qualify for an Offer in Compromise?
No. It is actually more like a "50-50" chance that the IRS accepts an Offer in Compromise filing. In fact, in 2016, the IRS accepted only 42.8% of the IRS tax relief Offer in Compromise submissions requested.
FLAT FEE TAX SERVICE, INC. CLIENTS HAVE
A 96% IRS SETTLEMENT APPROVAL RATE.
The IRS will only accept those financially challenged taxpayers that have proven that they are highly deserving of it. Being "financially challenged" is not the same as being "destitute." Before considering this type of filing be sure to read through the IRS tax relief requirements in detail to see if you meet them.
6. My Offer in Compromise has been submitted. How long does the IRS take to make a decision?
Presently, it takes approximately 10 to 12 months to complete an IRS tax relief submission through the Offer in Compromise program (#IRSsettlement). Staff, funding, and the time of the year that your Offer in Compromise is submitted all influence the decision process. The IRS will receive approximately 80,000 Offer in Compromise submissions every year. The IRS uses to 2 locations for Offer in Compromise submissions (Tennessee and Long Island). The job of the IRS at these locations is not to grant IRS tax relief but to look at your Offer in Compromise submission for clerical errors. If they find any "i" not dotted, or any "t" not crossed, the IRS will send your IRS settlement back and label it as "unprocessible". The IRS will not tell you what is wrong with IRS tax relief submission and you will have to start the process all over again.
Once, you get through the first (1st) faze of the Offer in Compromise process, then the IRS will forward your IRS tax relief settlement to an "examiner". The examiner will determine the success or failure of your tax settlement.
If the IRS doesn’t respond to you within two years, your settlement offer is automatically approved.
7. What if my Offer in Compromise was rejected and I don’t agree with the decision?
If you don’t agree with the IRS’s decision, you have the right to appeal the decision. Sometimes, the IRS issues a rejection because of a lack of information. If you have more details regarding your IRS tax relief submission, you should definitely appeal. You have 30 days from the denial to appeal.
8. I owe state taxes as well. Will the State accept my Offer in Compromise?
The IRS does not handle state taxes. Unfortunately, if you want to apply for an Offer in Compromise on your state taxes, you have to do that separately. Not all states offer this type of settlement, and the ones that do, typically have different ways of determining if you qualify. As a result, if the IRS accepts your offer, that increases the chance that the state will accept an Offer in Compromise, but it is not guaranteed.
9. Is it expensive to have a professional help with an Offer in Compromise filing?
NO! FLAT FEE TAX SERVICE OFFERS THE SAME LOW PAYMENTS PLANS AS OPTIMA TAX RELIEF, COMMUNITY TAX AND THE OTHER NATIONWIDE TAX RESOLUTION COMPANIES. GO TO OUR WEBSITE FOR FEE INFORMATION
REMEMBER, THE OFFER IN COMPROMISE PROCESS TAKES 10 TO 12 MONTHS.
The Offer in Compromise fees for your IRS tax relief filing at most tax resolution companies will range from $3,500 to $6,000. Go ahead and call them. Find out for yourself.
WHY WOULD YOU PAY MORE THAN YOU NEED TO? DON'T THROW YOUR MONEY AWAY AND GET NOTHING BACK.
THESE COMPANIES NEED TO OVERCHARGE IN ORDER TO PAY FOR THEIR TELEVISION ADVERTISING FEES AND COMMISSIONS TO SALESMEN.
10. Will the IRS file a tax lien after I submit my offer?
The IRS may file a Notice of Federal Tax Lien during consideration of your Offer in Compromise. The IRS will release the tax lien 30 days after payment terms are met and the payment verified.