The Internal Revenue Service’s Fresh Start Program expanded Taxpayers’ options for repayment, or partial payment, of balances owed. It affords Taxpayers the option to get a fresh start with the agency. However, that does not mean that the process is easy or that the program will allow you to simply call the IRS and everything is forgiven and forgotten.
There are many layers to the program and not everyone will qualify for every option under the program. Our experienced licensed tax professionals will evaluate your situation and work with you to qualify you for the best option available to you. We will fight on your behalf to ensure that you truly have a fresh start with the IRS.
We offer comprehensive bookkeeping services for our clients and are QuickBooks Online Advanced Certified. Depending on your needs, we can take over your bookkeeping completely, reconcile your books to ensure accuracy, or perform periodic reviews of your books.
When your bookkeeping is performed by a tax professional as opposed to a bookkeeper, you can rest easy that tax time will be a breeze as the books will be kept with the preparation of the tax returns in mind. We also offer tax preparation services and give our Clients the peace of mind that comes with knowing that everything is being taken care and not being asked the same questions from the bookkeeper and the tax preparer.
We offer comprehensive tax consulting and planning services. Whether you are looking to see how a particular transaction may affect your tax liabilities or you are a business owner looking to save money on taxes, look no further. Our experienced team of licensed tax professionals is well-qualified to answer any questions you may have and guide you through the process of ensuring you only pay as much as tax as you are obligated to.
|What is an Offer in Compromise?
An Offer in Compromise (sometimes referred to an Offer and Compromise) is a tax settlement agreement between a taxpayer and the IRS. The IRS has the authority to settle or compromise federal tax liabilities by accepting a payment that is less than the actual amount of taxes you owe. The IRS may legally compromise a tax liability when doubt exists that you could ever pay the full amount.
How much money will the IRS accept in lieu of full payment?
The amount the IRS will accept in lieu of paying your full tax liability varies with each person because it is based on your assets, monthly income and monthly expenses. The offer amount is the result of applying a formula that includes your total monthly income less certain monthly expenses for several years plus the value or equity portion of certain assets. Settlement amounts can be as low as a few hundred dollars.
|Who’s eligible for an O.I.C.?
Every taxpayer is eligible to request an Offer and Compromise from the IRS but not all offers will be accepted. You have the greatest chance of having an offer accepted by the IRS if your monthly income and expenses are relatively equal so that you have little to no disposable income per month and your assets are relatively low in value or have little to no equity in your home. Most importantly, you must file all of your tax returns prior to submitting an Offer in Compromise with the IRS.
IRS Approval Time:
The overwhelming popularity of the OiC program has created a processing backlog at the IRS. OiC approval time can take anywhere from three to nine months. During this time, all IRS collection activity against you will be put on hold pending approval of your OiC. Once your OiC is approved and the IRS receives the agreed upon settlement amount, your outstanding tax liability is forgiven.
|Our staff of licensed tax professionals will represent you with your IRS and California tax audits. Our team can get involved at various stages of the audit process. Many clients come to us immediately upon getting contacted by the taxing agencies. Others start the audit on their own or with their accountant, and turn to our staff when they feel the process beginning to overwhelm them. Often, we are asked to step in once a taxing agency has made an unfavorable adjustment to the taxpayer’s liability.||Our approach towards audits is grounded in extensive preparation and process management. Although, our CPA’s & Enrolled Agents have achieved great results at every stage of the audit process, we feel the best results are achieved when we are retained immediately after a client receives notice of audit from the taxing agency.
Our staff has extensive experience in representing taxpayers in audits before the IRS, Franchise Tax Board, Employment Development Department and California Department of Tax and Fees Administration.
Anyone who has ever encountered a tax problem with the IRS or a state-taxing agency knows the magnitude of penalties levied by the government for non-compliance. Because of the rapid accrual of tax penalties and interest, what starts as a manageable tax problem quickly escalates to unmanageable levels.
The Internal Revenue Service will abate the penalties if you can prove “reasonable cause”. This could mean huge savings to you since the average IRS liability doubles roughly every three years.
Reasonable cause is when circumstances beyond your control kept you from filing and paying on time. Such as:
These are just a few. If you feel you have a unique situation that warrants penalty abatement, please contact us for a free evaluation.
This program is for taxpayers and businesses that do not have the ability to full pay the entire tax debt but have the ability to make monthly payments. If the IRS has forced you into an unreasonable payment plan or is threatening to levy your wages, bank accounts and other assets, we can negotiate a long-term payment plan based on your ability to pay. In some cases, if your financial condition warrants, we can have your account placed in a “not currently collectible” status. Under this program, the IRS withholds all collection activity until you are financially able to commit to a payment plan or have an Offer in Compromise submitted.
|The IRS or State will make several attempts to collect back taxes. They begin by sending you notices of tax due. Each notice increases in urgency. Finally, if all notices go unanswered, the IRS or State taxing agencies will issue a “NOTICE OF INTENT TO LEVY”.
Shortly after this notice is received, the IRS and/or State will begin to seize assets. They do this by issuing a levy on your bank accounts and/or wages. This process will continue until the balance is collected in full. As for self-employed individuals, the process is slightly different. Not only will the IRS and/or State taxing agencies levy bank accounts, they will issue a “DEMAND FOR PAYMENT” notice to all your accounts receivable.
|This is one of the most damaging collection processes. Not only will the IRS and/or State taxing agencies stop your flow of income, but once your customers or clients receive these notices, they will think twice about doing business with your company.
Thankfully, our staff has years of experience releasing Levies and Wage Garnishment quickly and efficiently. Depending on the your circumstances, it usually takes 2-10 business days for us to successfully negotiate a release of levies and garnishments. If a bank account has been levied, and you contact us within 10 days for State Levies and 21 days for IRS Levies, we are usually able to reverse what was taken and have it put back in your account.