An IRS collection agent throws a word or phrase your way, and you have no idea what he is talking about. As they say, it is all Greek to you. And too much is at stake to bluff your way through it. A wrong move or misunderstanding could result in a levy on your bank account, wages, or seizure of assets. How can you negotiate yourself out of trouble with the IRS if you don't understand the language of IRS collection agents? To even the playing field, here are the 10 of the most important terms you should know when you owe back taxes to the IRS: 1. IRS Revenue Officer. This ... Read More
The benefits of using Form 433F: Shorter, simpler disclosures to IRS collections
If you owe the IRS money, chances are they are going to want a collection information statement from you to determine how they can be repaid. The IRS does not make completing the collection information statement easy on you. For starters, there are five different financial statements that the IRS collection division uses. How do you know which one is the right one to use? IRS Form 433F. If you are working with the IRS Automated Collection Service, you will likely be requested to use IRS Form 433F. IRS Form 433A. If a local IRS collections Revenue Officer has contacted you, he will ... Read More
How much money will the IRS settle for in an offer in compromise?
The average amount the IRS settles for in an offer in compromise is $6,629. Sounds good, doesn't it? If only it was that easy - everyone would be doing it, right? The reality is that in 2014, the IRS received 68,000 offers in compromise from taxpayers. The IRS accepted 27,000 of those offers. That's an acceptance rate of 40%. Or, if you are a glass half full kind of person, that's a rejection rate of 60%. The total amount accepted in those offers was $179 million. If you are keeping score, that's an average settlement of $6,629. Now, that does not mean that you can ... Read More
I just gave the IRS a collection information statement – when can they ask again?
How frequently can the IRS ask you for a collection information financial statement? To resolve most IRS collection cases, the IRS requires a disclosure of your finances. If you think about it, that's fair. You owe the IRS money, and they want to know how - and if - they can get paid. The IRS uses what is known as a collection information statement to find out what you make, how much you spend, what you own and who you owe. The collection information statement is important - it actually leads to resolution with the IRS. Whether you are seeking an offer in compromise, a monthly payment ... Read More
IRS offer in compromise asset valuation formula: houses, cars, household goods & bank accounts
You owe the IRS and would like to put past mistakes behind you and get a fresh start. You may have heard a lot about the IRS offer in compromise program - popularized by those deep-voiced TV and radio advertisements that makes it sound like you just call the IRS, offer a number, they say yes, and your done. Simple, right? The IRS offer in compromise program is legitimate, and it works, but it's not that simple. The IRS has a formula that they use in analyzing an offer in compromise. The IRS looks at two pools of money in an offer in compromise: (1) How much does the IRS think you can pay ... Read More