Call Today: 877-825-1179

La Porte Chamber of Commerce
VERIFIED Seal Success Tax Relief, LLC BBB Business Review    

Posts by Thelma

Offer in Compromise: 5 Tips to Increase Your Approval Chances

Offer in Compromise: 5 Tips to Increase Your Approval Chances

By on Dec 29, 2017 in Consultation | 0 comments

If you owe an extreme amount of debt to the IRS, it may seem that you will never be able to pay it off. You might be kept up at night thinking about how the IRS could collect the debt, including putting a levy or lien on your car, house, or other property. But you might be able to rest easy tonight because the IRS has an initiative that can settle your tax debt for less than the full amount. The Offer in Compromise is a solution that can help taxpayers who are unable to pay the total amount that they owe to IRS in the timeframe required, or if doing so would cause the taxpayer severe financial strain. Instead of letting your property become subject to IRS seizure, negotiate your bill down through the Offer in Compromise program. But to get approved, you have to be qualified, and below are five tips to increase your approval chances. Know which Forms to File To file an offer in compromise, you must complete Form 656 (Offer in Compromise), Form 433-A (Collection Information Statement) as well as 433-A Worksheet (Calculation Payment Worksheet). Have Backup Documents When you file an offer of compromise, you need to prove that you are unable to pay the full tax debt that you owe to the IRS. Make sure to have documents on hand that present your argument with data and credibility. Pay Application Fee To have your offer in compromise processed, you must pay the $186 fee. If you are unable to pay this amount, you can submit a request for a waiver. File all Required Tax Returns According to the IRS website, beginning with offer applications received on or after March 27th 2017, the IRS will return any newly filed offer in compromise application if the applicant has not filed all required tax returns. Any application fee included with the offer of compromise will also be returned. Any initial payment required with the returned application will be applied to reduce your balance. This policy does not apply to current year tax returns if there is a valid extension on file. Use the IRS Online Tool The IRS offers an online tool to help you...

Read More
Expert Tips on Getting an Offer in Compromise Approved

Expert Tips on Getting an Offer in Compromise Approved

By on Dec 23, 2017 in Consultation | 0 comments

If you have tax debt that you feel you cannot afford to pay, then you may qualify for an Internal Revenue Service (IRS) program that requires you to pay less than the full amount due.  This is done through an Offer in Compromise. An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS that allows the taxpayer to pay less than the full amount owed.  The IRS generally approves up to 40% of OIC applications each year.  The biggest factor to consider when it comes to an OIC is that you must prove that you are not in a position to pay your full tax bill. There are many people who want a clean slate when it comes to their taxes. Ask yourself: “How should you make your case?” Tips for Getting Your Offer in Compromise Application Accepted Be thorough: The IRS will not grant an OIC to a taxpayer who does not show the need. You will be asked to provide detailed financial records, bank statements, paystubs and additional paperwork.  The more information that you can provide to strengthen your case, the better. Stay current on your tax returns: You cannot qualify for an OIC if you have not submitted previous tax returns. Deciding how much to offer: To submit an OIC, you will need to carefully follow the instructions on the IRS Form 433.  This worksheet will help you determine the amount you want to offer. This calculation is based on the net value of your assets plus your excess monthly income after you subtract all of your monthly expenses. Special circumstances: The IRS is known to give consideration to taxpayers with any special circumstances including physical or psychological hardship or those who are of advanced age.  The IRS will even take into account the mental illness of a close family member if it has impacted you financially, for example. Re-submit if necessary: If the IRS rejects your first application, consider applying again. The IRS will notify you of their decision in writing and will list a reason that the offer was rejected.  If you are told that the offer is too low (this is one of the most common reasons for rejection),...

Read More
IRS Installment Agreement Interest Rates Guidelines

IRS Installment Agreement Interest Rates Guidelines

By on Dec 21, 2017 in IRS | 0 comments

If you are working to settle your tax debt with the Internal Revenue Service (IRS), you may see an installment agreement as a viable and appealing option for helping you repay your debt.  An installment agreement allows you to pay the IRS back over an extended period of time, rather than in one lump sum. It is similar to a credit card payment, in that you make monthly payments over the course of several years until the debt is eliminated.  Also, like a credit card, it is important to remember that you are still responsible for any penalties and interests that you have accrued, so you should factor that in when you are making decisions about repayment. Here are some facts about how the IRS calculates the interest on your tax debt: Interest (and penalties) are charged on any unpaid debt until the entire balance is paid back. Interest on your tax debt accrues each day. The interest rate used is calculated every three months, meaning it can change as time goes on. Interest stops accruing as soon as the balance is paid in full. Installment Agreement Payment Options So, not only are you responsible for paying the amount you originally owed the IRS in unpaid taxes depending on the total amount due, you could also be responsible for a sizable amount in interest and penalties, though you will not be subject to wage garnishments, levies and other collective actions. You’ll want to factor this in when you are making your appeal to the IRS for the installment agreement to be sure that the monthly payments you end up with are affordable for you and your family. The IRS essentially tries to let you set the monthly payments, provided the payment is high enough. Your goal is to establish a payment high enough to pay off the debt, but not so high that you have to default. In addition, the more you owe the IRS, the more financial information they will require from you in order to approve an installment agreement. For a frame of reference, if you owe less than $10,000, your installment plan will very likely be approved as a “guaranteed” installment agreement. Under this type of...

Read More
Does Owing the IRS Affect Your Credit Score?

Does Owing the IRS Affect Your Credit Score?

By on Dec 20, 2017 in IRS, Tax Debt, Tax Tips | 0 comments

A strong credit score is extremely important when it comes to qualifying for loans to buy a house, buy or lease a car, and accessing a line of credit whenever you need it.  If you owe taxes to the Internal Revenue Service (IRS), you may wonder if this tax debt can negatively affect your credit score.  As you might expect, the answer is somewhat complicated. Here is what you need to know: Quick Facts About the IRS and Your Credit Score Your credit score can be impacted if you do not pay your taxes in a timely manner. However, if you file your return, but are not able to pay the full amount due right away, this alone will not automatically mean a lower credit score. Owing back taxes does not automatically translate to a lower credit score. The amount that you owe the IRS is probably the biggest factor when determining whether your debt will impact your credit score. The only way that your credit can be impacted is if the IRS files what is called a Notice of Federal Tax Lien that gives the government the right to seize your property, including your home and your vehicles. The IRS will only do this if you owe a sizable debt and have not made efforts to pay it even after written notices.  Keep in mind that you will always receive many notices before the IRS files a Notice of Federal Tax Lien. The IRS is usually willing to work with you to help resolve your tax debt. You may qualify for an installment agreement. This allows you to pay your debt over time rather than in one, large lump sum. An installment agreement is not reported to credit companies. In addition, if you truly cannot afford to pay the debt that you owe, you can apply for an Offer in Compromise, an agreement atha settles your tax debt for less than you owe. It is important to understand that the IRS does not look favorably on those who neglect to file their tax returns (even if you cannot pay your debt) and will not grant relief in many cases unless your returns are current. Keep in mind that...

Read More
Georgia’s State Tax Liens Statute of Limitations

Georgia’s State Tax Liens Statute of Limitations

By on Nov 26, 2017 in State Tax Lien, Tax relief, Tax Resolution | 0 comments

  If you have received notice that the Georgia Department of Revenue (GDOR) has issued a tax lien or are concerned that this may be on the horizon, now is the time to act and resolve your back tax debt once and for all.  A tax lien is a very serious legal claim that the state can issue against taxpayers that gives legal claim of your property to the state as security or payment of your tax debt.  A tax lien is generally a last resort effort by the GDOR, after many attempts have been made to recover a taxpayer’s debt.  It can have significant impact on your personal (or business) financial outlook, including your credit score and ability to qualify for a wide variety of loans. How to Release a Georgia State Tax Lien A release of a tax lien is possible and can be obtained if you meet one of the following criteria: When the tax liability has been resolved (ie. paid in full); If you can prove that the lien was filed in error (you can request a formal withdrawal of the lien); Expired liens (also known as statute-barred liens) do not attach to any property interest of the taxpayer whose name appears on the lien. Statute of Limitations Related to State Tax Liens   There is a defined statute of limitations on tax liens that you should also be aware of. State tax liens must be filed within seven years of the assessment date of the tax liability.  Once the Georgia Department of Revenue files a lien, it has seven years from the date the lien was recorded to collect the debt from a taxpayer. It’s also important to note that a tax lien may also be renewed for an additional seven-year period by re-recording the lien prior to the expiration of the previous seven-year period. Even if a tax lien is released, withdrawn, or expires, it can be extremely difficult to get this “mark” off of your credit report if it hits one of the three main credit bureaus: Equifax Experian TransUnion National credit bureaus make their own rules for how long a tax lien can be kept as public record.  This can impact...

Read More