IRS Tax Relief – Tax Options for Tax Relief
IRS Tax Relief can come in many different forms and different tax options. If you owe IRS money there are several ways to get IRS tax relief. While these different programs exist for IRS tax relief you must qualify for each program. As a general rule your current financial statement will determine how IRS will work to close your case. Internal Revenue Service uses the forms 433 A and 433 F to determine you financial state. Each financial statement serves as the closing method for the IRS for the IRS to take your case off of the IRS C.A.D.E. enforcement computer and will bring you immediate tax relief. All tax returns will need to be filed before IRS permanently closes any tax case.
The IRS Financial Statement
The IRS Financial Statement is the critical element to close all IRS collection cases. With the completion and full documentation of the financial statement your peace of mind is imminent. IRS trains all their collection personnel to fully evaluate each financial statement for accuracy and how it best serves the government’s interest. Remember the IRS is not interested in your tax relief just what is best for them.
1. A 433-F is used by the ASC Unit in the Regional Service Centers or call centers. You will complete the financial statement then either fax or send all the documentation to the Service Center working your case. It is best to call IRS when you have all the documentation and be prepared to fax all confirming income and expenses directly to the Agent working the case on the other end of the phone. Cases can be worked in any of the 14 Regional Call Center all across the United States.
2. A 433-A is used exclusively by the local Revenue Officers located nearest your residence or business. If a case has not been resolved at the ACS Unit at the Regional Offices these cases are sent to the local Revenue Officers. These are more highly seasoned and trained IRS Agents who take an in depth look at the financial statement using critical eyes. At this point IRS will conduct a much more thorough tax investigation on your case. When cases get to this point you want to be sure you have hired a tax professional.IRS Tax Relief is a phone call away if you call our offices.
How Internal Revenue Service will close your case. IRS Tax Relief options;
Once your case is in any IRS que, your case must be closed off the IRS enforcement computer whether it be at the Service Center or at the local office. Here are the available options to close your case. After this process you will finally have IRS Tax Relief.
After IRS has fully received a documented financial statement there will be a obvious solution to resolve your IRS case. IRS will either close your case via a ;
1. Hardship. This simply means you can not afford to pay the IRS at this time. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently non-collectible. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses and your assets are few or non existent. The IRS will use the National Standards Program to assess hardship.It is necessary for you to pull up the National Standards in your region to find out the means tests that IRS will use to qualify your case. Most cases these days are closed via this method and can bring immediate tax relief.
2. Payment Agreements. Cases can be closed with agreed monthly installment payments to the IRS. You can enter into a streamline payment. If you owe under $50,000 and you can pay the liability off within 5 years the IRS will generally expect a payment agreement. If you cannot pay within 5 years IRS will review your financial statement and determine your monthly payment based on the national standard in your area or region you live.
3. Offer in Compromise – The IRS may accept an Offer in Compromise based on three grounds:
A. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
B. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(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.
C. Effective Tax Administration / Exceptional Circumstances – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
4. The Filing of a Bankruptcy. If your personal income taxes are three tax years or older , your taxes have been filed for at least two years and your tax return has been assessed on the IRS computer system for more than 240 days you can discharge your debt in a Chapter 7 Bankruptcy. There are other rules that apply and you must check with a tax professional to ensure you can qualify for IRS tax relief thru filing of a bankruptcy, Professional Tax Representation.
While most taxpayers think they can represent themselves they will find many trapped doors that the IRS will spring open and use against them. IRS conducts a thorough review on all financial statement, it is much liken to a IRS tax audit.
Taxpayers should be advised that the IRS will review all bank deposits made over the last year, look for underreported income, check with DMV, pull credit reports, conduct a google searches on your name, look at charge account applications for hidden assets and will also ask Accutiant for all records of your complete financial status over the past ten years.
It is best to hire a professional firm especially if you have loose ends. If you have a simple case there is nothing wrong with you making the call to IRS yourself.
How Michael D. Sullivan, Former IRS Agent can get you tax relief. How we settle and negotiate your case with the Internal Revenue Service:
1. We immediately send a power of attorney to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS. We handle at communications. Since we worked for the IRS we know all the lingo and the tax procedure for tax relief.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-A or 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement and tax relief based on their current financial needs.