Platinum Tax Defenders Helps You Settle Back Taxes for Less
- August 18, 2019
- Posted by: Platinum Tax defenders
- Category: Tax Resolution
Do you owe more than $10,000 to the IRS? Platinum Tax Defenders can help you get an Offer in Compromise approved by the IRS and settle for less. Platinum Tax Defenders understands the stress of needing to settle back taxes with the IRS. Owing back taxes to the IRS is always stressful. When you have back taxes you can’t pay, you may be wondering what your options are. One of the best options to settle back taxes when you can’t afford to pay is an Offer in Compromise. By effectively negotiating an Offer in Compromise with the IRS, your back-tax debt could be much less. The tax experts at Platinum Tax Defenders have years of experience negotiating Offer in Compromise deals for their clients. Recently, Platinum Tax Defenders successfully got a client’s back-tax debt down from over $140,000 to $100. If you owe the IRS more than $10,000 and can’t pay back taxes, call Platinum Tax Defenders. Our expert team of tax attorneys can help you negotiate a deal you can afford to settle back taxes.
Platinum Tax Defenders Answers, “What is An Offer In Compromise?”
An Offer in Compromise is an IRS program that allows taxpayers to settle back taxes for less. If paying back taxes creates a financial hardship for you, you may be a candidate for Offer in Compromise. However, the IRS does not approve all Offer in Compromise deals it receives. When considering if they will accept your OIC, the IRS looks at several factors of the taxpayer’s circumstances. When attempting to settle back taxes via an Offer in Compromise, the IRS will consider:
– Your income
– Ability to pay
– Any assets you own
If the IRS determines whether you have the financial ability to pay back taxes, you generally won’t qualify for an OIC. Additionally, if you can pay back taxes through an Installment Agreement, you also won’t be eligible for an OIC.
Platinum Tax Defenders Can Determine If You Qualify for an Offer in Compromise
When determining whether you will qualify for an OIC, contact a tax resolution professional. A tax relief specialist can help you understand what the requirements are to apply for an OIC. Additionally, a tax resolution expert can help negotiate a settlement with the IRS on your behalf. There are several things to consider when determining if you will qualify for an OIC to settle back taxes.
Determine How Much the IRS Can Collect From You
One thing to consider when applying for an OIC is to determine how much the IRS can collect from you. The amount the IRS can collect in back taxes is your reasonable collection potential. To assess your reasonable collection potential, the IRS uses a specific calculation. When negotiating an OIC, you should offer the same or a little more than your reasonable collection potential. For that reason, it’s beneficial to work with a tax relief expert when negotiating an OIC with the IRS. A tax resolution specialist will be able to walk you through the process and help determine your reasonable collection potential. If your Offer in Compromise offer isn’t the same or more than the IRS’, they can reject your application. The IRS will not typically settle for less than it thinks it can reasonably collect in back taxes.
How Do I Know What My Reasonable Collection Potential Is?
To determine your reasonable collection potential, consult a tax relief professional. A tax relief expert can evaluate your reasonable collection potential by using the same formula the IRS uses. The IRS’ method for determining reasonable collection potential considers the following factors:
– The value of the taxpayer’s assets
– Extra monthly income the taxpayer will receive over the next four to five years
A top tax defender can often determine your reasonable collection potential by first adding up the money in your bank accounts. Next, the tax relief expert will add that to the value of your investments and assets such as:
– Real estate
– Retirement accounts
When determining your estimated extra monthly income, a tax resolution specialist assesses your leftover income after paying necessary living expenses. Basic living expenses include rent, mortgage payments, utilities, and groceries. Next, a tax resolution expert adds your total disposable income, cash, investments, and assets to determine a reasonable collection potential. A tax resolution professional will then take this number to learn how much to offer the IRS when negotiating an Offer in Compromise.
Can Platinum Tax Defenders Help me Submit an Offer in Compromise?
When submitting an Offer in Compromise, you must use the required form available on IRS.gov. The form you must submit is Form 656-A – the income certification form for an Offer in Compromise. You must submit this form for the IRS to waive the processing fee. Additionally, if you qualify for an OIC, you will need to provide a 20 percent down payment. Next, you will have to submit Form 433-A. The IRS uses this form to gather income information for wage earners and self-employed taxpayers. Form 433-A determines if you will experience financial hardships because of your tax debt. The IRS will require you to disclose details such as your income, assets, and expenses before approving your OIC. It’s helpful to work with a top tax defender when applying for an Offer in Compromise. The experts at Platinum Tax Defenders can guide you through the process.
Benefits of Hiring a Tax Resolution Specialist Before Applying for An Offer In Compromise
The IRS lists its requirements for applying for an Offer in Compromise on its website. However, most taxpayers find the process of applying for an Offer in Compromise to settle back taxes confusing. If you owe more in back taxes than you can afford, you don’t want to risk the IRS rejecting your Offer in Compromise. Also, most taxpayers don’t feel comfortable negotiating with the IRS on their own. Most taxpayers don’t know what the tax codes are or how to apply them to their back-tax situation. Platinum Tax Defenders’ expert staff can help you successfully negotiate an Offer in Compromise deal with the IRS.
Call Platinum Tax Defenders today for a Free Consultation
The tax relief professionals at Platinum Tax Defenders have helped thousands of clients save hundreds of thousands in tax debt. If the IRS rejects your Offer in Compromise, we can help you appeal their decision. We also know what documents you need to submit. Our expert team can help you make an offer to the IRS that they will be less likely deny. Call Platinum Tax Defenders today for a free consultation.