Q: Who qualifies for a relief program?
A: From the individual taxpayer to the small business, almost everyone will qualify for some form of relief. When the IRS was conceived, it was given certain rights and resources in order to collect past debt. To comply with this country's long tradition of checks and balances, taxpayers were given rights as well, but they were hidden deep within the law where the average taxpayer would never look. Our staff of tax professionals knows these rights and knows what you are entitled to. From quickly releasing a wage garnishment to negotiating a settlement, they will provide a fast, accurate solution and enforce your rights as they were originally intended.
Q: What is an Offer In Compromise? A: An Offer in Compromise (OIC) is an agreement of settlement between a taxpayer and the Internal Revenue Service (IRS) that resolves the taxpayer's tax liability. The IRS has the authority to settle or compromise federal tax liabilities by accepting less than full payment under certain circumstances. The IRS may legally compromise for one of the following three reasons.
• Doubt as to Collectibility:
Doubt if the full amount of the liability will be paid based on present and/or future assets and income. The minimum offer amount must generally be equal to (or greater than) the taxpayer's reasonable collection potential (RCP). The RCP is defined as the total of the taxpayer's realizable value in real and personal assets, plus his/her future income.
Note: Unless the taxpayer files an OIC claiming special circumstances, the offered amount must equal or exceed the reasonable collection potential. Realizable value is the asset's quick sale value (amount which could be reasonably expected through the sale of the asset) minus what the taxpayer owes to a secured creditor.
• Doubt as to Liability: Doubt exist that the assessed tax is correct.
(Examples: Innocent Spouse, Social Security was stolen and used by someone else)
• Effective Tax Administration: There is no doubt that the tax is correct and no doubt that the amount owed could be collected in full, but exceptional circumstances exist such that collection of the full amount would create economic hardship or where compelling public policy or equity considerations provide sufficient basis for compromise. The taxpayer bears the burden of proof to show their OIC qualifies for public policy or equity considerations. They must show that their circumstances are compelling enough to justify acceptance of their OIC compared to other taxpayers in similar circumstances. (Example: Elderly couple with equity in the home living on Social Security Disability with no other means of income)
Q: How long does it take?
A: Because the specifics of each case are so different, resolution can range from one week to 9 months. If you have time sensitive issues, make sure and tell your Premier Account Representative as they can tailor a program to specifically suit your needs.
Q: What can you do that I can’t do for myself?
A: First, you may always represent yourself before the IRS, but many taxpayers find dealing with the IRS too frustrating and time-consuming. Further, a qualified professional can recommend planning steps that can legally and ethically reduce the amount of an acceptable offer (settlement). Additionally, the national Offer in Compromise acceptance rate, without professional representation, is 18%. We have a 97% success rate!
Q: Will I have to see or speak to the Internal Revenue Service if you take my case?
A: No! Premier Tax Resolutions will handle your case in its entirety. All communications with the IRS will be made directly through our tax team.
Q: There is a bank levy or wage garnish in place, how quickly can it be removed? A: Levies and Wage Garnishment are the most crippling and humiliating of all collection tactics. They’re designed to force taxpayers into willful compliance. Thankfully, our staff has years of experience lifting levies and Wage Garnishment quickly and painlessly. Depending on the type and severity, it usually takes only 2-10 business days for us to successfully lift either.
Q: I have not filed returns for a number of years. Is it too late to reach a settlement and make a fresh start?
A: NO. All legally required returns must be filed to do either an Offer in Compromise or an Installment Agreement Plan. We will assist you in bringing your tax filings current and formulate a strategy to resolve your tax debt permanently. For many taxpayers, this typically leads to an Offer in Compromise, Monthly Installment Payment Plan, or a request for the Abatement of Penalties.
Q: I filed my tax returns but didn't have the money to pay what was owed. What do I do now? A: When the Internal Revenue Service sends you a notice stating that you owe back taxes, the amount is usually much higher than what you thought because they have tacked on penalties and interest. Of course you could just write a check and pay them the full amount, including penalties and interest. Worse you could just ignore them; meanwhile the penalties and interest keep piling up. Or you could hire a tax professional who is experienced in the matters of back taxes. By analyzing your situation, we can determine your best course of action. For many taxpayers, this typically leads to an Offer in Compromise.
