New Oic Law

Under the new law, taxpayers submitting requests for lump-sum OICs must
include a payment equal to 20 percent of the offer amount. The payment is
nonrefundable, that is, it will not be returned if the OIC request is later
rejected. A lump-sum OIC means any offer of payments made in five or fewer
installments.
 

Taxpayers submitting requests for periodic-payment OICs must include the
first proposed installment payment with their application. A periodic payment
OIC is any offer of payments made in six or more installments. The taxpayer is
required to pay additional installments while the offer is being evaluated by
the IRS. All installment payments are nonrefundable.
 

Under the new law, taxpayers qualifying as low-income or filing an offer
based solely on doubt as to liability qualify for a waiver of the new partial
payment requirements.
 

If the IRS cannot make a determination on an OIC within two years, then the
offer will be deemed accepted. If a liability included in the offer amount is
disputed in any court proceeding, that time period is omitted from calculating
the two-year timeframe.
 

OIC requests are submitted using Form 656, Offer in Compromise. The form
provides detailed instructions for completing an offer and includes all of the
necessary financial forms. When submitting

These issues include a recently imposed requirement that taxpayers submitting lump-sum offers in compromise make a down payment of 20 percent of the amount of the offer.

Making an Offer in Compromise to the IRS may now involve posting 20% of the offer at the time the OIC is made. It is hard to understand how this will improve the offer in compromise program, and it is unclear what will happen to the 20% if the offer in compromise is not accepted by the IRS…

In this situation, two Forms 656 will be required.  One for the
individual liability, and the other for the partnership or corporate
liability.  A check or money order for $150 must be attached to each offer,
for a total of $300.  The IRS cannot combine…

First obtain a Form 656, Offer in
Compromise package (Version 7/2004). The package includes information and instructions for completing the form, as well as a worksheet that can be used to calculate an amount to offer. Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, and Form 433-B, Collection Information Statement for Businesses (Version 5/2001), are included in the Form
656 package and may need to be completed …

Once it is determined an Offer In Compromise ( OIC ) was filed solely to hinder and/or delay collection actions, the IRS will return the OIC without any further consideration.
Taxpayers will not be afforded the right to appeal this decision…

American Tax Relief claims it can help tax delinquents settle with the Internal Revenue Service for “pennies on the dollar” but two New York City lawsuits say it’s just not so.

New York City’s Department of Consumer Affairs filed a lawsuit accusing the company, American Tax Relief, of sending junk mail with exaggerated promises — and then collecting large fees but not clearing its clients’ tax debts.

Separately, a Brooklyn woman filed a lawsuit claiming that she paid $5,000 to the firm to help resolve what was a $50,000 tax debt. The woman eventually learned she didn’t qualify for the IRS settlement program the company was selling

These are the kind of services a Tax Attorney can provide: Offer in Compromise Cases, Penalty Abatement Petitions, Full Audit Representations Business Strategy Sessions. Preparation and Filing of Tax Returns.
Settle taxes for Pennies on the Dollar owed, Stop IRS wage and bank levies (garnishments), Have property li

Many Americans believe that an IRS debt is a debt for life and that the tax collector can hound them to the grave. Thankfully, that is not the case and there are statutory time limits on the ability of the IRS to examine and collect taxes. Taxes do expire at some point and in some cases IRS does not get the money they were legally entitled to collect.

Basically, IRS has 10 years from the date they send out their first bill to collect the tax. The 10 year rule does not apply

5. Very few offers were accepted in the past, because the standards were almost impossible to meet before a tax debt was legally compromised. Recent tax legislation has given new hope to taxpayers who were previously disqualified.

6. In the past the IRS really did not want to encourage OICs. Prior …