Offer In Compromise (OIC)
An Offer in Compromise is a formal agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed. It allows taxpayers that cannot afford to full pay their delinquent tax liability the opportunity to settle permanently for a reduced amount.
Before an Offer in Compromise is submitted and the negotiation process begins, our staff will perform a detailed and comprehensive review of your case to verify and confirm that your account is in compliance with the IRS. If your Offer in Compromise is not prepared or submitted correctly or if the taxpayer is not in compliance, the IRS can and will reject the Offer. This is why it is very crucial to have an experienced and qualified professional on your side. Expert Tax Solutions (ETS) will negotiate on your behalf to settle your IRS tax debt for the lowest amount allowed by law. Besides a highly skilled negotiation process, the Offer in Compromise consists of many complex formulas that determine the minimum amount the IRS will accept.
During the initial free consultation our tax consultants complete a detailed financial interview with the taxpayer, to determine if an Offer in Compromise is in the taxpayer’s best interest. If any company providing tax relief guarantees you a settlement without being familiar with your entire financial situation, then it is most likely too good to be true.
If your settlement is originally denied by the IRS, Expert Tax Solutions will represent you within the IRS Appeals Division, with no additional fees, giving you a second chance of having your Offer in Compromise accepted.
If you cannot pay your tax debt in full the Offer in Compromise program is for you. The Offer in Compromise program has given countless taxpayers the opportunity for a fresh start, enabling them to get back on track with their lives.
One of the main functions of the IRS is to assess and collect all federal income taxes due. The IRS has substantial authority and power that was given to it by Congress to carry out its goals. With these powers and the substantial financial resources that have been assigned, the IRS is essentially the world’s largest and most powerful collection agency. The IRS has enormous collection powers when it comes to getting its money. IRS officials can seize bank accounts, take paychecks and sell your assets.
If you owe the IRS, you have to take steps to deal with the government agency. One of the ways you could do this is through an IRS Installment Agreement, negotiated by one of our Tax Professionals. If you are behind on your taxes, you may qualify for an IRS Installment Agreement. Once the agreement is arranged, you can make smaller, more manageable payments on your tax liability.
When trying to establish an IRS Installment Agreement, the taxpayer’s Tax Professional must have reasonable negotiating skills. The IRS wants to collect the entire balance due as soon as possible, while the taxpayer is in need of a payment that works within their budget and that does not cripple them financially.
Often the taxpayer gets a monthly payment that is greater than what they can afford. This can result in a default under the agreement. If this occurs, the IRS will restart the collection process all over again. The taxpayer’s representative needs to make sure that they get an affordable installment agreement established upfront. The assistance of a tax professional can greatly improve the taxpayer’s chances of getting an affordable agreement.
The advantage to the installment agreement is that it will put an end to any collection efforts that the IRS was undertaking. This includes tax levies, garnishments, and collection calls.
Before an Installment Agreement can be negotiated by Expert Tax Solutions, our tax experts will review your IRS transcripts to make sure you are in compliance. Many times, delinquent tax returns may be required to be filed before the IRS will consider any payment options.
By aggressively negotiating with the IRS and working diligently, Expert Tax Solutions can negotiate an affordable Installment Agreement on your behalf. Our goal is to obtain an Installment Agreement that fits within your budget and allows you to pay your necessary living expenses.
Taxpayer’s representative has to prove that the taxpayer is unable to pay the full amount of the taxes owed in order to be eligible for any Installment Agreement. In addition, they must supply the IRS with financial statements and other information pertaining to their financial condition.
IRS employees that arrange for tax liability payment plans are very knowledgeable, and their goal is to get the largest possible monetary commitment out of you. Taxpayers should be aware that IRS employees are very smart, and negotiating with such employees takes skill and expertise.
The IRS wants to collect its money as soon as possible. The IRS isn’t concerned about whether you can make your house or car payment. The government’s only concern is collecting their money now.
Many people who attempt to work out an Installment Agreement are not aware of their rights. By working alone, they will more than likely pay more than if they had experienced tax professional’s representation.
This is a negotiation. You need an experienced professional in your corner! Our tax professionals have created a program to help our clients at every step of this process so that our clients can receive a comfortable Installment Agreement.
Bank Levy Release
A bank levy is issued by the IRS when your taxes remain unpaid and resolution has not been reached. The IRS will freeze your bank accounts and seize any money in your bank account up to the amount that you owe, including penalties and interest. The IRS can issue a bank levy as many times as they please, until the tax debt is satisfied. A bank levy is a very successful collection tactic that the IRS uses which serves a second purpose besides collecting back taxes – to get your attention!
The good news is that the tax experts at Expert Tax Solutions can have your bank levy released!
When a bank levy is issued by the IRS, there are specific procedures that your banking institution must follow. Even though the bank withdraws the funds from your account and/or sometimes freezes the use of the funds, the Tax Professionals at ETS can have your bank levy released. Depending upon your financial and tax situation, ETS will need to take different actions to handle your IRS bank account levy. An IRS bank levy can be stopped but it is important to act quickly since you will not have much time to stop the IRS once a bank levy has been issued.
The IRS is a very determined and fierce collection agency. It does not make sense to negotiate with them without proper representation. When a bank levy is issued, it is usually caused by poor or lack of communication between the taxpayer and the IRS. The tax professionals at ETS keep constant contact with your IRS agent to ensure that future bank levies are not issued, as long as the taxpayer remains in compliance. ETS will secure a collection hold on your account for a specified period of time; protecting you from future enforced collection action. While your account is placed on a collection hold, our Tax Professionals will carefully analyze and evaluate your specific situation and determine the best course of action for you.
If you've been threatened with an IRS bank levy, let the tax experts and professionals at ETS represent you and put end to your IRS problems!
Currently Not Collectible
Currently Not Collectible (CNC) means that a taxpayer has no ability to pay his or her tax debt. When the taxpayer demonstrates they are in a severe financial hardship and have no ability to make monthly payments or liquidate assets in order to pay their back taxes, the IRS can declare the account "currently not collectible." In order for the IRS to consider placing your account in CNC status, the IRS agent will have to review detailed financial forms and substantiating documentation submitted by the taxpayer.
Once the IRS declares a taxpayer currently not collectible, the IRS must stop all collection activities, including levies and garnishments. The IRS must send an annual statement to the taxpayer stating the amount of tax still owed. This annual statement is not a bill. While in CNC status, the 10-year statute of limitations on tax debt collection is still running. If the IRS cannot collect the tax within the 10-year statutory period, then the tax debts will expire.
Our tax experts at Expert Tax Solutions will evaluate your specific situation to see if CNC status is the best relief option for you. CNC status is considered on an individual basis. In the right circumstances, CNC can indeed provide a good tax solution that permanently solves your tax problem. In other situations it might be a temporary fix to give the taxpayer some breathing room until other tax solutions are available. You need expert tax representation by a qualified professional to get the results that you are looking for.
Is your IRS debt over 10 years old?
The IRS has 10 years to collect outstanding tax liabilities, from the date assessed. The 10 year mark is calculated from the day a tax liability has been finalized. A tax liability can be finalized in a number of ways. It could be a balance due on a tax return, an assessment from an audit, or a proposed assessment that has become final. From that day, the IRS has 10 years to collect the full amount, plus any penalties and interest. If the IRS doesn't collect the full amount in the 10 year period, then they must cease collecting on the remaining balance, since the statute of limitations has expired.
Most taxpayers and even some tax professionals are unaware of the fact that the IRS must collect a tax debt within 10 years. The 10 year period isn’t based upon the year for which the taxes are due but rather the date the liability was actually assessed.
Why is the IRS still collecting on a tax debt from 12 years ago?
As with all IRS rules, the Collection Statute has many exceptions. Some actions that will extend the collection statute date are:
· If the taxpayer agrees in writing to allow the IRS more time to collect the tax by signing a waiver
· If the taxpayer files for Bankruptcy during the 10 year period
· If the taxpayer files an Offer in Compromise during the 10 year period
· If the taxpayer files an application for Taxpayer Assistance Order from the Taxpayer Advocate Service during the 10 year period
· If the taxpayer files a request for a Collection Due Process hearing
There are some instances where a tax debt from over 20 years ago is still being collected by the IRS! This is why a skilled and experienced Tax Professional is required to successfully represent you with the IRS. Our tax experts at Expert Tax Solutions will request your transcripts from the IRS to analyze and interpret them in order to choose which tax solution is most advantageous to you. ETS will advise you of the best course of action and together we will put an end to your IRS tax problems!
Will the IRS Notify Me Once the 10-Year Statute Expires?
The IRS will NEVER inform you when the 10 years are up. They will continue to send you invoices and collect on the debt. It is up to the taxpayer and their representative to prove to the IRS that the 10 year collection statute has in fact expired. It is very important to note that although tax liens can no longer be enforced, your tax lien may be still on file with credit bureaus or with your local recording office unless it is requested to be released.
Comprised of Tax Professionals with over 20 years of experience, Expert Tax Solutions is a full service Tax Resolution firm that can handle almost any IRS or State Tax Issue.
Our most important asset is our clients, and we are driven to achieve optimal results while providing a professional customer service experience.
We are on hand to provide quick representation and answers for clients that are impacted by garnishments, bank levies, liens and many other challenges.
Expert Tax Solutions specializes in resolving and reducing IRS or State Tax Debt. Our unique "Two Phase" approach is truly revolutionary in the Tax Resolution industry. This approach enables you to have a very detailed understanding of your options BEFORE you pay any fees towards Resolution services.
If we find that your case is strong enough to move forward with a Resolution, we will provide you with all your options so that you can best decide how to move forward. Our clients appreciate this very honest approach prior to enrolling in a Resolution plan as it helps us to achieve both trust and understanding during the first phase of our program.
If you haven't filed a tax return in many years or if you neglected to file a return for a particular year, you have good reason to worry. When it comes to looking for unfiled taxes, the Internal Revenue Service can look as far back in your history as required to make sure that you pay your debt to the federal government.
Title 26 of the United States Code, Section 6502, sets a statute of limitations for the IRS on the collection of unpaid taxes. Many people wrongly interpret this law by assuming that if an unfiled return occurred more than ten years ago, the IRS cannot collect taxes. However, the statute of limitations applies once taxes are actually assessed, either by means of a return that is filed late, that is prepared for you by the IRS, or any settlement agreement that you have come to with the IRS. There is another statute of limitations that precludes you from receiving a refund for an unfiled return that is more than three years delinquent. Once your unfiled returns pass this three-year mark, any refund that you could have received had you filed in a timely manner becomes the property of the U.S. Treasury and cannot be claimed by you or applied to any taxes you might owe in the future.
Expert Tax Solutions can help you file your passed due taxes.
We offer a broad range of services for business owners, executives,
and independent professionals. We are affordable, experienced, and friendly.
Please call us today at (978) 250-1596 . We'll be happy to offer you a free initial consultation. Thanks for visiting!