Colorado Springs: Is There Really an IRS Fresh Start Initiative?

 

No, there is no active IRS Fresh Start Initiative.  If you visit www.irs.gov and type in "Fresh Start Initiative" there is no reference to an existing program.  Back in 2011 changes were made to  help taxpayers who are struggling to pay their tax debts.  The changes aimed to make it easier for individuals and small businesses to pay back taxes and avoid tax liens. There were several key benefits and changes to existing IRS policies to provide relief to taxpayers.

One of the main policy changes increased the threshold for filing a tax lien. Previously, the IRS would file a lien if a taxpayer owed $5,000 or more, but under the revised policies this threshold was increased to $10,000. This change helps protect taxpayers' credit scores and provides more time to pay off debts without the added pressure of a lien.

These policy updates expanded the Offer in Compromise (OIC) program, which allows taxpayers to settle their tax debt for less than the full amount owed. The IRS now considers a broader range of financial hardships when evaluating OIC applications, making it more accessible to those in financial distress.  There are still financial thresholds and standards that taxpayers have to meet to qualify for an OIC.

Additionally, more flexible installment agreements were introduces. Taxpayers who owe up to $50,000 can now qualify for streamlined installment agreements, allowing them to pay their debt over six years without providing extensive financial documentation.  Although, it may be advantageous to apply for a lower payment.  

Overall, when you hear advertisements for the "IRS Fresh Start Initiative" know that the actual program ended in 2012 and search for a tax professional who will help you to eliminate the stress and overwhelming fear of dealing with the IRS.  Then you will sleep better at night knowing that you can feel successful and thankful that you have completely met all your tax obligations.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: Is a Doubt as to Collectability Offer in Compromise Really Possible?

Do you feel numb and overwhelmed because of owing $20,000 or more to the IRS?  Have the IRS notices been stacking up? You hear an advertisement on the radio or see one on the television claiming that the IRS will settle your tax debt for pennies on the dollar.  You sit back and ask yourself is this really possible? Or, you think that it is too good to be true?

My answer to your questions is that with the proper guidance and professional assistance you can qualify for an IRS settlement.  But, you must complete the IRS process and provide substantiation of your claim. You must also have mountains of patience.  The process with the IRS can take time.

How do I know this?  About two years ago I had a new client come in with over $80,000 in taxes owed going back to 2013.  After completing an analysis of the taxpayer's circumstances and documents, I was able to determine that the taxpayer would qualify for a Doubt as to Collectability Offer in Compromise.  I completed the paperwork, gathered the support for what was stated on the OIC form, and had the taxpayer sign the OIC form.  I then submitted the package to the IRS.

After we received an acknowledgement letter, a few weeks later, it took about one year to get the initial response of a denial of the taxpayer's claim.  Since we felt we had a strong case, we appealed the initial result.  After a few months and some some communication with the appeals officer, we finally received the acceptance letter.  We were able to settle the taxpayer's $80,000+ debt for $100.  We both expressed a sigh of relief.  The taxpayer now has two responsibilities 1) pay the $100 and 2) stay tax compliant for the next 5 years.

This case shows that we can help taxpayer's to resolve tax debts they are unable to pay.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: Should I File an Offer in Compromise to Resolve my Tax Debt?

 

 

 

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

 

Colorado Springs: Can I Really Settle My Tax Debt for Pennies on the Dollar?

The simple answer to the question in title of this blog is "maybe".  Why do I say that?

 

The IRS provides a lifeline for those who either cannot pay or who doubt they actually owe the tax  through the Offer in Compromise (OIC) program, governed by Section 7122 of the Internal Revenue Code. This program allows taxpayers to settle their tax liabilities for less than the full amount owed for those who qualify.  Taxpayers have to be patient as this process can take at least a year to complete.

 

To qualify for an OIC a taxpayer must calculate their RCP using guidelines provided by the IRS that include both actual expenses and nation standards.  Once RCP is calculated the determination is made whether a taxpayer qualifies for the OIC or has to set up an installment agreement and full pay.

I recently completed a case that took over a year for the IRS to send us the OIC acceptance letter.  The taxpayer was unable to pay the tax in full after calculating the RCP.  This was a doubt as to collectibility offer.  We were able to settle an $80,000 plus debt for $100.  The taxpayer has two responsibilites now: 1) To make the $100 payment and 2) Stay tax compliant for the next five years, including making estimated tax payments if required.  If these two conditions are not met, the taxpayer can become liable once again for $80,000 tax debt.

We cannot settle every case for such a small amount.  Each taxpayer's facts and circumstances are unique.  Only a full analysis of your situation can determine what the best course of action will be.  Using a local Enrolled Agent(EA), CPA, or tax attorney who will complete such an analysis is highly recommended.

Section 7122 on Offer in Compromise is a valuable tool for taxpayers in distress.  However, this path requires careful preparation and a clear understanding of the obligations involved. Consulting with a tax professional can enhance the chances of a successful application.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

 

Colorado Springs: How Can I Resolve an IRS Lien?

 

Dealing with an IRS lien can be daunting, but taking prompt and informed action is crucial. An IRS lien is a legal claim against your property due to unpaid tax debt, affecting your credit and financial flexibility. Here’s how to handle it:

1. Understand the Lien: First, comprehend the lien notice. It indicates the IRS’s claim on your assets until the debt is settled.

2. Verify the Debt: Ensure the lien is accurate. A tax professional can help you determine if the owed amounts are correct. 

3. Communicate with the IRS: Ignoring the lien will worsen the situation. An Enroll Agent, like Marcelino Dodge, EA, CTRC can communicate with the IRS on your behalf.

4. Payment Options: If  the debt is accurate, then if possible pay in full. This is the quickest way to remove the lien. If full payment isn’t feasible, Marcelino Dodge, EA, CTRC, will help you determine the best option for your facts and circumstances, such as an installment agreement or an Offer in Compromise, which allows you to settle for less than the owed amount.

5. Seek Professional Help: Consult a tax resolution professional, Marcelino Dodge, EA, CTRC, he can guide you through the process, negotiate on your behalf, and explore options like lien subordination or withdrawal.

6. Stay Compliant: Ensure you file and pay all future taxes on time to avoid further complications.

Addressing an IRS lien promptly and strategically can mitigate its impact and help you regain financial stability.

Cash Tracks Financial of Colorado Springs
Marcelino Dodge, EA, CTRC
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
www.cashtracksfinancial.com
success@cashtracksfinancial.com

Colorado Springs: Should I File an Offer in Compromise to Resolve my Tax Debt?

Facing a significant tax debt can be overwhelming, but an Internal Revenue Service (IRS) Offer in Compromise (OIC) provides a potential lifeline. This program allows taxpayers to settle their tax liabilities for less than the full amount owed, offering a fresh start for those in financial distress. Here are key reasons to consider filing an OIC:

1. Financial Relief: If you're struggling to pay your tax debt due to financial hardship, an OIC can significantly reduce the amount you owe, making it more manageable.

2. Avoid Bankruptcy: Filing for bankruptcy has long-term consequences. An OIC can be a preferable alternative, allowing you to resolve your tax issues without the severe impact on your credit score.

3. Simplified Process: Although the process can be complex, Cash Tracks Financial walks you through the process to provide tax relief and peace of mind.

4. Peace of Mind: Settling your tax debt can alleviate the constant stress and anxiety associated with owing the IRS, allowing you to focus on rebuilding your financial stability.

5. Future Compliance: Successfully completing an OIC can help you get back on track with your tax obligations, ensuring you remain compliant in the future.

Marcelino Dodge, EA, CTRC will analyze your circumstance to determine if you meet the eligibility criteria, filing an OIC could be a strategic move to regain control of your financial situation and secure a more stable future.

Cash Tracks Financial of Colorado Springs
Marcelino Dodge, EA, CTRC
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
www.cashtracksfinancial.com
success@cashtracksfinancial.com

Colorado Springs Video: How Can I Qualify for an Offer in Compromise?

 

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: How Can I Qualify for an Offer in Compromise?

 

You have heard the ads saying that your tax debt can be reduced from $100,000+ down to only a few dollars.  How accurate are these claims?  Do these companies do a thorough analysis?  Without a complete and thorough analysis, how can it be known whether or not you even qualify?  I highly recommend avoiding any company that fails to do a proper analysis to determine your reasonable collection potential (RCP).

Are you in filing compliance?  Are you making estimated payments or have enough withholding to cover your taxes for the year?  Each of these questions must have a "Yes" answer before an Offer in Compromise can even be submitted.

Marcelino Dodge, Enrolled Agent can help you with a complete analysis of your situation.  I can help to determine how best to approach your specific situation and determine the best possible solution.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: What are the Types of Offers-in-Compromise?

 

You owe back taxes, you have a stack of IRS notices in that special drawer, and the IRS has just levied your bank account.  What can you do?  You heard about this thing called an offer-in-compromise.  What is an offer-in-compromise?  Can I really get one?  What type of an offer can I make?  The offer-in-compromise program is authorized by Internal Revenue Code Section 7122.  The IRS is authorized to establish guidelines for when an offer-in-compromise (OIC) should be accepted

 

Step one:  Find a qualified tax professional such as an enrolled agent who will do a proper analysis to see if you even qualify to do an offer-in-compromise.

Step two: If you do qualify to submit and offer-in-compromise, what type offer can you make?  Based on your facts and circumstances you may qualify for one of the following:

• Doubt as to Liability
• Doubt as to Collectability
• Effective Tax Administration

Only after a personalized, thorough analysis will a tax professional competently make a recommendation as to what fits your best and is most likely to be successful.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA

525 N.Cascade Ave., Ste 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

Colorado Springs: Can I Qualify to Pay Less Than What the IRS Says I Owe in Taxes?

 We have all heard the advertisements from services claiming to be able to negotiate your back taxes down from several thousand dollars to only a few dollars.   Is this really possible for everyone?  It depends on the facts and circumstances for each individual taxpayer.  According to the Internal Revenue Code (IRC) Section 7122 the IRS is authorized to accept a compromise from taxpayers.  How does a taxpayer qualify for an Offer-in-Compromise(OIC)?  

The first step is to find a qualified tax professional such as Marcelino Dodge, EA to consult with you to determine if you are a candidate for an OIC.  If you are a qualified to file an OIC, you have to next get fully compliant by filing 6 years of back tax returns.  Once the necessary tax returns are filed, then we start the process of completing the OIC, determining the type of offer to make, and how much to offer.

Cash Tracks Financial Inc.

Marcelino Dodge

525 N Cascade Ave

Suite 200

Colorado Springs, CO 80903

(719) 359-8789

 www.cashtracksfinancial.com