Offers in Compromise

The heat is on, Congress wants to know why the Internal Revenue Service has such a large and growing tax debt.  Think what IBM's balance sheet would look like if IBM could not write off the debts it can not collect. 

The Internal Revenue Service has increased the acceptance rate and has been adjusting the attitude of IRS staff. The Offer-In-Compromise program in intended to settle delinquent tax bills by paying an agreed amount. The agreed amount is much less than your original debt and it allows you to avoid bankruptcy. Some firms tell you it's a new program and it may stop anytime. This program to reduce your outstanding taxes to a lower amount has been around for years. Al Capone made an Offer-In-Compromise, his preparer did know how, or he did not listen to the real story. You have seen the ending to his story on TV, he went to jail!

If you owe delinquent taxes, you can use the Offer-In-Compromise program to reduce the amount you have to pay. When your offer is accepted and the amount agreed upon is paid, your past due tax liability will be eliminated. As part of the offer you agree to file all your tax returns for the next five years on time, with no payment due.  If you don't the IRS has the right to collect the original amount due.  You outstanding tax liens and levy's will be released. Your credit will be on the way to having your restored and you can avoid Bankruptcy for tax reasons.

In some cases installment plans, or a change in status to not currently collectable may be a better approach. If collection action is causing a taxpayer hardship, it is time for a form 911 Application for Taxpayer Assistance Order to Relieve Hardship.

At 1-800-FileTax we focus on two types of Offers:

1. A special program for wage earners, with tax liabilities under $10,000 of total tax, penalties and interest due. Taxpayers can not own real estate. If you qualify, the IRS is eager to get what they can, sometimes as low as $.10 on the dollar.

2. Negotiation of Offer-In-Comprise for taxpayers who owe more than $10,000 total and they own real estate. Offers for business owners, self-employed or salaried taxpayers who have delinquent taxes greater than $10,000 have to be prepared carefully. If you meet the IRS qualifications they are willing to settle and get you back on track.

You will need some forms Offer-In-Comprise form 656 will needed to be submitted. You will need to prepare a Collection Information Statement for Individuals form 433-A, if you are self-employed you will also need a Collection Information Statement for Businesses form 433-B. Instructions are in Publication 16728N, available from the IRS by mail or phone. Other documents will be requested by the Internal Revenue Service, as part of the processing of your offer. The requirements for documents will vary around the US.

Nothing personal, the IRS wants you off the books and to keep current with your taxes in the future. Keeping current in the future is good for you and good for the country. Some of the Revenue Agents don't agree with this program. You can count on these die hards and over worked staff to make it difficult to process and accept your offer.

Past due taxes can be compromised no matter how old. Your offer-in-compromise can include different kinds of taxes, regardless of amount. Why not send us some background data or just call. The call is free and we know what we are doing. We do not make you any guarantee, nobody can. We seldom recommend an offer when the taxes are more than nine years old. We will not accept your fee if we don't think you offer can be approved.

At 1-800-FileTax we don't think our clients and friends are criminals. We know thinks happen in life that cause serious harm. You will enjoy our no-guilt, no-attitude service. At 1-800-FileTax all our preparers are trained accountants or enrolled agents. We have been preparing tax returns since 1947. After preparing over 25,000 tax returns we learned a trick or two.

E-mail us and give us some background information and we will call you. You can call 1-800 File-Tax and talk to one of our representatives. This is the hardest part of the process that will start the reorganization of your life.


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