Complete Guide To IRS Offers In Compromise | San Diego

Your Tax Settlement Guide: IRS Offers In Compromise

Having a tax debt is a huge problem for both American citizens and the U.S. government. Roughly 5 percent of Americans do not pay their taxes or have tax debt. This equates to about $28 billion per year in lost proceeds for the U.S. government. Is it any wonder that the IRS will become very aggressive with their enforcement tactics. While the IRS has ramped up financial and criminal penalties for those who do not pay their taxes, the agency has also offered various programs to help Americans pay off their debt.

The good news for taxpayers who have a lot of tax debt and are struggling financially is that it’s possible to become tax-debt free without going broke. The key is an Offer In Compromise (OIC) settlement with the IRS.


Getting a tax settlement approved by the IRS is difficult. In 2016, out of approx. 80,000 tax settlement that was submitted, the IRS only approved approx. 33,000. That’s an approval rate of about 42 percent.

Offer in Compromise - Tax Settlement
Tax Settlement – Offer in Compromise


What is an Offer in Compromise?
The IRS defines an OIC as “a tax settlement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed.” Meaning you pay less than the total debt you owe. Our tax professionals know this is a great tax relief option. What about you?

Who is an Offer in Compromise for? An OIC is generally intended for people who are financially unable to pay their entire tax debt amount. This type of OIC is known as Doubt as to Collectibility.

Insider legal tips:

  1. An Offer in Compromise is not available to those in the middle of bankruptcy proceedings.
  2. Payroll tax cannot be forgiven in an OIC unless you close out your E.I.N. You must shut your business down. If you do that, your payroll taxes will convert to income tax and then they can be settled.

Why will the IRS settle tax debt?

  • Protect individuals for financial hardship. It is in the interest of the IRS to give a taxpayer a Fresh Start so that they no longer have to expend collection resources on a tax debt that will never be paid.
  • The IRS will consent to an Offer in Compromise if the agency believes the tax settlement is the greatest amount it can collect before the 10-year statute of limitations runs out, which effectively stops the IRS’ ability to collect money from a taxpayer.

Interesting fact: The average Tax Settlement that the IRS accepted in 2015 was approx. $7,500.


Be warned: using the IRS financial formula doesn’t guarantee that the IRS will accept your OIC. There are many factors that can influence your OIC calculation that this formula cannot take into account, such as how close you are to the statute of limitations, i.e., how much longer the IRS can try to collect on your debt.

Important: The IRS is limited by the statute of limitations (also referred to as CSEDs), which says that the IRS only has 10 years (from date of assessment) to collect to your tax debt. If the 10 years are up, then the IRS cannot legally collect money from you. Read more about why calculating your CSED is extremely important to resolving your tax debt here.

What this means is that older tax debt will have greater bargaining power with the IRS, as they see your OIC as the last chance to collect some money from you before the statute of limitations runs out.



Taxpayer troubles with getting OIC’s approved

There is a myriad of reasons why a person’s Offer in Compromise gets denied by the IRS. Here are some of the most common reasons:

  • The tax settlement application will be returned without consideration if taxpayers haven’t filed all required tax returns.
  • A taxpayer who can fully pay the liabilities through an installment agreement or other means won’t qualify for an OIC in most cases.
  • A person’s RCP is too high, i.e. he/she makes too much money or has too many assets.
  • Someone in the middle of bankruptcy proceedings.
  • Someone has a “good chunk of money” in their 401K.
  • The IRS will reject your settlement offer if the “I’s” and “T’s” weren’t all crossed on your paperwork.

If the IRS rejects an OIC, the taxpayer will be notified by mail. The letter may or may not explain the reason why the IRS rejected the settlement offer. The agency will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals. The appeal must be made within 30 days from the date of the letter.

How Long Does An Offer in Compromise Take?

The entire Offer in Compromise process, from filing the application to an IRS decision will take approx. 10 to 12 months. The IRS will stop all enforcement action during this period of time. It’s important to also note that penalties and interest will continue to accumulate daily while OIC is being contemplated. So it’s important to get it right the first time, otherwise, you can end up with more debt than when you started. Additionally, submitting an OIC will suspend your debt’s CSED (the timeframe of collectability).

Hiring Our San Diego Tax Attorneys

As you have learned here, getting an OIC approved can be difficult, even for a tax professional, as it all depends on a given individual’s financial situation. However, an experienced tax attorney can think of things that may tip the scales in your favor, such as your case’s statute of limitations (which the IRS is notoriously bad at calculating, and other financial factors.



The time involved in all Offers in Compromise is approx. the same. Some people take a few more labor hours than others. Don’t overpay to settle your tax debt. It doesn’t matter how much we save you. How much you owe is IRRELEVANT! It’s all about labor hours it takes to do the job.

When possible, our tax attorneys have helped many clients get favorable OICs approved. Below is a graph some of those cases:

Someone who is contemplating an OIC should seriously consider retaining the help of a tax attorney. Unlike CPAs and enrolled agents from debt resolution firms, a tax attorney isn’t just trained in compliance. In addition to knowing the rules, a tax attorney is trained in the art of negotiation and persuasive tactics, which is exactly what an Offer in Compromise is – a negotiated settlement.

The IRS Tax Attorneys at Flat Fee Tax Service has calculated hundreds of RCPs and CSEDs for clients. They also are experienced to look at an individual’s whole financial situation, using every legal tool to get their clients the best tax settlement possible. Call our tax professionals for your free consultation.

FLAT FEE TAX SERVICE, INC. – 1-866-747-7435

California Tax Settlement| Offer in Compromise | Flat Fee Tax Service

Offer In Compromise San Diego

An Offer in Compromise has been touted as a tax settlement program that allows taxpayers to settle their debts for “pennies on the dollar”. The tax professionals at Flat Fee Tax Service will be the first to tell you that there is no magic wand for eliminating federal IRS tax debt.

Everyone is not qualified and eligible for this type of tax settlement procedure. A successful Offer in Compromise requires an immense amount of financial disclosure.

In order to create a tax relief option for you, a full financial of the taxpayer should be taken and assessed by a licensed tax professional. Our tax professionals encourage all taxpayers to simply ask the company representatives they are interviewing if they are licensed attorneys.

Eight hours of sales training just is not enough to get a taxpayer through this process. Check out the internet for complaints. Compare fees.

What You Need To Consider For An Offer In Compromise

A general overview divides most Offers in Compromise (hereinafter “OIC”) into three categories: wage (W2) earners, self-employed/small business owners, and corporations. The vast majority of all types of settlement Offers will require between 6-18 months of time with the Revenue Service after submission, and most taxpayers require approximately a month to gather all necessary items.

While under consideration, taxpayers remain free from collection actions taken by the Revenue Service, but balances continue to exist and grow due to interest and penalties. Some items that are typically reviewed by the IRS when you submit an Offer in Compromise package are:

  • Forms 433A or B, or both;
  • Form 656;
  • Bank statements;
  • Mortgage statements;
  • Asset valuation statements (401k or IRA statements);
  • Vehicle ownership statements;
  • Paystubs;
  • Profit and Loss formatted for a year to date information;
  • Medical cost invoices;
  • Internal tax account histories.

California Tax Debt – Offer In Compromise

The state of California Franchise Tax Board (FTB) also has an Offer in Compromise procedure but is even more difficult than the federal tax settlement in its requirements in the granting of a successful Offer. we all know that the State of California is dead broke. The FTB wants every penny they can collect. There are options available but you will need a seasoned tax professional to navigate the FTB for you.

Filing An Offer In Compromise

The State of California does not give out statistics for DIY (do it yourself) tax settlements. For the federal IRS, you have approximately a 30% chance of acceptance if you DIY.



If you are considering undertaking an Offer in Compromise procedure, call our tax professionals now. The consultation is free.


FREE CONSULTATION – 1-866-747-7435


IRS Notice of Levy Help |Flat Fee Tax Service

What is a Notice of Levy? IRS Tax Levy?

An IRS Notice of Levy is a letter sent to taxpayers who have not paid their back taxes and have an IRS lien placed against them. The IRS is notifying the delinquent taxpayer that they will begin collecting the debt using levy actions such as wage garnishment, property seizure, and bank account seizure. A notice of levy causes many problems for taxpayers. It means that the taxpayers’ accounts and assets may be frozen by the tax lien, which may prevent the possibilities of selling them or changing ownership of the items. The taxpayer only has 30 days in which to take care of the tax debt before the levy actions are taken. Failing to pay back the full amount of the debt after receiving an IRS notice of levy will mean that levy actions will start unless the necessary steps have been taken.

It’s important to note here that a levy is a legal seizure of your assets to use towards a taxpayer’s outstanding tax debt. They’re different from a lien, as a lien is a hold on assets, while a levy will actually take them away from the taxpayer.

IRS Tax Levy - Tax Garnishment
IRS Tax Levy – Tax Garnishment

What Actions Will the IRS First Take Before a Notice of Levy is Issued?

The IRS will do a series of actions before resorting to sending a notice of levy. First, the IRS will have assessed your account, decided that you have a certain amount of tax debt to pay, and then they will send you a notice that demands immediate payment. This is a tax bill. The IRS expects to be paid upon receipt. If the taxpayer neglects to pay the amount issued, then the IRS will send a final notice of intent to levy accompanied by a notice of your right to hearing. The IRS must also include an explanation for the issuing of the tax levy, the process in which the levy happens, and the alternatives the taxpayer has when dealing with enforcement. These documents are released thirty days prior to the levy being issued, allowing the taxpayer a month to respond promptly. These ‘before’ notices will be sent via certified mail and or delivered at the address the IRS has on file. In some cases, the IRS will hand deliver the notice to the taxpayer.

IRS Tax Levy - Tax garnishment
IRS Tax Levy – Tax Garnishment

When Will a Tax Levy Be Issued?

Simply stated, when the IRS has witnessed enough noncompliance and they decide it’s time for enforcement. This means that the taxpayer has not paid their taxes nor have they taken the proper steps to make arrangements in doing so. The IRS will then take severe collection action and issue a tax levy against assets you own or that others do (for instance your wages are taken from your employer).

What Can a Levy Be Issued Against?

There are quite a few of item of value the IRS can levy once the notice has been delivered and there has been no correspondence within thirty days. In terms of what the government can legally take from a delinquent taxpayer, this will give you an idea:

Tax Garnishment – Garnish Wages

The IRS will order your employer garnish your wages and issue them towards your tax debt rather than to you personally. Depending on the severity of your tax levy, this tax garnishment is continuous. The tax levy will stay in place until your tax debt is paid in full or it is released and stopped.

Contractor or Vendor Payments

The IRS has all your information. When an IRS Revenue Officer is on the case, they can reach out to third parties who owe the levied taxpayer money and demand these payments are sent to the IRS instead.

OPM Retirement Benefits, SSA Benefits, Employee Travel Advances

The IRS also has the power to take these perks from you and use them towards the entirety of your tax debt owed.

IRS Tax Levy – Bank Accounts Levies

In the worst case scenario, the IRS can put a tax lien on your bank account and lock it from you. After twenty-one days, they can then demand that whatever money in your account is transferred directly to the IRS.


Depending on the situation, if the taxpayer is going to be receiving commission from a certain project or legal endeavor, then the IRS will take action and claim the commission to help satisfy tax debt.

Property – Rental Income

Any piece of property that the taxpayer owns which could help satisfy their tax debt. This starts with a home and can go all the way to toy vehicles that could be used to satisfy a tax debt. Any piece of property that the taxpayer owns which the IRS considers valuable, they can levy and use towards the outstanding amount owed. Should you have rental income, the IRS can order every tenant you have to pay them instead of you.

Anything of Value

Truthfully, when the IRS has decided to take action, it’s possible that they can levy anything the taxpayer owns and use it towards the tax debt. Even possessions or holdings that are not considered assets to the taxpayer could be levied and used to resolve the amount owed.

Offer in Compromise
Offer in Compromise – Tax Settlement

What to Do Once You Receive the Intent to Levy Notice?

The obvious way to avoid having your assets seized and penalties added to your account would be to pay off your tax debt. If you are here and reading our information, paying your tax debt probably isn’t feasible. Listed below are payment programs tailored towards taxpayers that are not in the financial situation to pay off their debts. The two main alternatives being an installment agreement and an offer in compromise.

Installment Agreement

This is basically a payment plan similar to the way one would pay off a loan. Depending on what is agreed between the taxpayer and the IRS, the taxpayer will then be put on a monthly installment plan and pay off their debt in increments. An IRS Installment Agreement will last anywhere from 3-6 years. Again, depending on what is agreed, it is possible that through this payment plan the taxpayer will end up paying a larger amount in interest.

Offer in Compromise – Tax Settlement

An Offer in Compromise is a tax settlement between the IRS and the taxpayer for an amount equal to less than what is owed. Due to the IRS not wanting to implement a forgiveness policy for all those who cannot pay their taxes, eligibility has requirements. The taxpayer needs to meet very specific criterion and must prove to the IRS that there is no possibility that they could pay the tax owed. The IRS, usually coordinating with a tax professional representing the delinquent taxpayer, will come to an agreement on how much is owed and will settle with one lump sum payment.

IRS Final Notice of Intent to Levy

The IRS will levy your assets is a tax garnishment is something a taxpayer wants to avoid at all costs, it’s important to consult a tax professional. They will assess your situation and help you not only plan a course of action, but detail exactly what sort of aid you’re eligible for. If the IRS is going to levy a taxpayer’s assets, then something has gone seriously wrong. It’s important to find the type of help that will make sure they can at least mitigate the situation and avoid further penalties.

At the very least, correspondence is huge. Go ahead and open your mail. “Being forewarned is being forearmed”. By just ignoring the IRS, the taxpayer is not only being delinquent, but they’re also giving the IRS means to take action. It’s important to reach out to them and even if you do not know how to explain that you are trying to assess the situation and find alternatives that could settle the debt.

The IRS Tax Attorneys at Flat Fee Tax Service are capable in some circumstances of preventing an IRS levy from taking place after a taxpayer has received an IRS notice of levy. In some cases, there is not enough time or circumstances prevent this type of action from taking place. In other cases, our tax professionals can work with a client and the IRS agent to enter into a successful tax relief option that prevents, stops and releases the levy.

How Can Flat Fee Tax Service Help Me?

Because of how financially devastating an IRS Notice of Levy can be to a taxpayer, immediate action is required to ensure that enough time is available to take the necessary steps to have the tax levy stopped and released.

Contacting the tax professionals at Flat Fee Tax Service, Inc. as quickly as possible after receiving the tax levy notice could be the difference between an IRS garnishment on your wages, or getting your tax debt settled. In some cases, it may already be too late but we hope not.


Call now for more information about an IRS levy and speak with one of our tax professionals today: 1-866-747-7435.

Affordable IRS Tax Relief

The IRS Tax Attorneys at Flat Fee Tax Service, Inc. provides valuable IRS tax relief help at very affordable fees. We know that our clients have several problems:

  1. They have a serous tax problem and have the IRS “breathing down their neck”. Our clients usually are facing an IRS wage garnishment which will leave them with little to no money to live on.
  2. Our clients don’t have a lot of money to work with. If our clients could pay their past due IRS tax debt, they wouldn’t need protection by our experienced IRS Tax Attorneys.

That’s why our IRS tax relief firm came up with our unique way of financing tax relief work. Low, affordable tax relief fees paid over months. Our tax relief team has been helping clients resolve their tax debts for a long time. Resolving IRS problems, as they say, “it’s not our first rodeo”.

Our work consists of the following:

a. Stopping an IRS wage garnishment. Once our tax relief firm gets involved, it usually takes our Tax Lawyers one day to secure the IRS garnishment release. Should a taxpayer have an IRS Revenue Officer assigned to their case, it will probably take a little longer as the Revenue Officer will want a financial disclosure, pay stubs, bank statements, etc.

b. Prepare unfiled tax returns. Many times, our clients have years of missing, unfiled tax returns. Our experienced team can challenge a Substitute for Return (SFR) that the IRS created so that a tax debt can be collected. Our IRS Tax Attorneys will replace the Substitute for Returns with real tax returns. By doing this, we can dramatically reduce and eliminate failure to file penalties.

c. Currently not Collectible. If you owe less than $10,000, which is the minimum for an Offer in Compromise, then our tax resolution team can have a client placed into Currently not Collectible status. If you have little monthly income but have equity in a home, we can place you in Currently not Collectible status. That means that the IRS will leave you alone. If you have a refund, the IRS will keep it and apply it to your tax debt. The Statute of Limitations will be running and your tax debt could drop off completely.

d. Offer in Compromise. The IRS has a settlement agreement called an Offer in Compromise. This is a complete tax settlement. Our IRS Tax Attorneys have had many clients that have settled their tax debt for $100 to $500 (total). An Offer in Compromise is the ultimate, optimum tax relief program.

e. IRS Penalty Abatements. Our IRS Tax Lawyers can have the tax penalties that have been added to your tax debt, abated.


Yes, our tax relief team can help you with innocent Spouse, Installment Agreements, tax liens, payroll tax problems, but the bulk of our tax relief work is written above. Those are the problems that most people have.



North Carolina – IRS Payment Plans, IRS Settlements, File Back Tax Returns, Stop IRS Levy

If you are struggling with tax debt in North Carolina and you owe back income taxes to the IRS or need IRS tax relief it is only common sense to hire experienced IRS Tax Attorneys who know “the IRS system.” The IRS tax relief team at Flat Fee Tax Service, Inc. will resolve your current IRS tax debt problem.

If you are looking for an IRS tax debt settlement or an IRS payment plan, call Flat Fee Tax Service, Inc. today. During our free and confidential consultation, we will discuss an affordable IRS payment solution as well as a possible tax settlement with the IRS based on your legibility. Our IRS income tax relief team will get you an IRS payment plan that is suitable to your ability or inability to pay the IRS.

If you are looking an IRS settlement with the IRS for less, you should consider an IRS Offer in Compromise. During your free and confidential consultation, we will walk you through our pre-qualifier. Our IRS tax relief firm will know during our conversation with you whether or not an IRS income tax settlement is available to you. If you are qualified and eligible for an IRS Offer in Compromise, you can settle with the IRS for”pennies on the dollar.”

If you are missing income tax returns and you are presently not compliant, our tax return department will reconstruct your tax returns. You cannot settle with the IRS unless you are compliant. You cannot enter into an IRS payment plan unless you are compliant.

If you do not file your tax returns, the IRS will create a tax debt by use of a “Substitute for Return.” A Substitute for Return, or SFR, is not a tax return. It is a mechanism the IRS uses to create a tax debt. The IRS will pile on the penalties and interest. The IRS will place you in the highest tax bracket and voila, you have an inflated tax debt. The IRS can then enforce collection.

The Emergency IRS Wage Levy Release Team at Flat Fee Tax Service, Inc. can have an IRS Wage Levy stopped within hours. If you do not have an IRS Revenue Officer assigned to your case, our experienced IRS Tax Attorneys can restore your paycheck in a very short period of time. If you do have an IRS Revenue Officer assigned to you, you have a more serious IRS problem and the IRS Revenue Officer will present more hoops to jump through, but, the IRS levy can still be released.

IRS Offer in Compromise
Offer in Compromise Settlements

North Carolina taxpayers, contact Flat Fee Tax Service, Inc. and let us discuss your options and what IRS solutions are available to you.

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  7. 90% of our clients who have submitted an Offer in Compromise have been successful.
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IRS Tax Attorney Georgia – IRS Tax Debt Settlement Help

Instant IRS Tax Relief from Garnishments, Levies, and Liens

If you owe more than $10,000 (the minimum to settle an IRS tax debt) of back taxes to the IRS, then the IRS is legally able to do many things in order to get that money from you. The IRS will do the automatic things like “pile on” on penalties and interest charges, or even harsher enforcement actions like garnish your wages (tax levy) directly from your employer, put tax levies on your bank accounts, or put federal tax liens on your home and property. Should you be a victim of any of these IRS enforcement actions, our IRS Tax Attorneys can help you immediately.

Give our IRS tax relief firm a call today at 1-800-589-3078 to learn what your rights are.

Finding the Right IRS Tax Lawyer

Finding the right IRS Tax Attorney is a tough task, but absolutely necessary if you want to actually see results. The wrong choice can leave you owing 10’s of $1,000’s to the IRS, and struggling financially for years. But the right choice can actually save you 10’s of $1,000’s over the long haul and give you the life of freedom and choice that you have always wanted.

Do a little bit of homework and check the Better Business Bureau record. Check out


Our IRS tax relief firm is sure that we can provide you the top level of tax relief service possible, and the BBB has agreed with that by giving us an A+ rating.



Serving All of the State of Georgia

Yes, our IRS tax relief firm and IRS Tax Attorneys are physically located in San Diego, Calif. but we live in the 21st century. If you have a phone and access to a computer, you can take advantage of our superior tax relief service and our very affordable fees. If you live in or around the great state of Georgia, we can help you out today. Whether you live in any of the larger cities like Atlanta, Macon, Augusta, Savannah or Columbus or the smaller cities and towns throughout Georgia, we can help you. Give us a call today at 1-800-589-3078 to see what we can do for you!

If you are tired of being bullied by the IRS and their officers, it’s time to take action now! If you cannot live with an IRS wage garnishment (who can?), call us today. If you have unfiled tax returns, call us today. If you need IRS tax debt settlement help, call us today.

Our highly experienced IRS Tax Attorneys are standing by, and ready to answer any questions that you have regarding your tax debt, IRS programs, and more.

We will go to battle with the IRS for you, and negotiate a favorable tax settlement that will not only allow you to pay back the amount owed over time, but also pay significantly less than you normally would have to. If you would like to learn more about this, please use these contact buttons to either call or email us.

Thank you for your consideration. Flat Fee Tax Service, Inc. looks forward to helping you!

San Diego IRS Tax Debt Help – California Tax Settlements

Failure to File (Filing Back Taxes)

Having unfiled tax returns and not filing your taxes can happen for many reasons. The most important first step is to get up to date and file your back returns. Our San Diego IRS tax relief firm will work with the IRS on your behalf to resolve any past issues, file your back taxes and do all we can to minimize your back tax debt and any IRS penalties associated with your failure to file.

The IRS will not allow you to use other tax debt relief options like an Offer in Compromise or Installment Agreement until your back taxes are filed. Once the unfiled tax returns are filed our IRS Tax Attorneys can work with the IRS to arrange alternate payment methods if you are unable to pay the balance due.


IRS Tax Liens and IRS Wage Garnishments

Never ignore a notice from the IRS. The IRS has notices that are in sequence and they can have very serious consequences. The IRS can place a federal tax lien on your property, house, car or wages or even go as far as seizing your property in order to collect the back taxes. Contact our San Diego IRS tax relief firm immediately so we can begin to negotiate on your behalf. When you are represented by an IRS Tax Attorney, it will show the IRS that you are trying to resolve the issue quickly.

IRS Tax Levies – IRS Wage Garnishment

An IRS Wage Garnishment is one of the ways the IRS uses to collect the taxes you owe. If the IRS sends an IRS garnishment order to your employer they will demand that your employer send part (and sometimes all of your check) of your wages to the IRS to cover your tax debt. If your wages have been garnished, contact our San Diego IRS specialists immediately.  We will contact the IRS immediately to have your wage garnishment stopped and released. After our IRS Tax Attorneys get that task accomplished, then we will get your unfiled tax returns prepared and filed (if you have missing tax returns) and then proceed with your IRS settlement.

IRS Bank Levy

If you have received a notice that your bank account(s) have been seized by the IRS, contact our San Diego IRS tax relief firm immediately. You will be given twenty-one days to get your money back. This period of time includes Saturdays, Sunday and holidays. You have little to no time to lose.

Tax Settlements – IRS Tax Relief Options

  1. Offer in Compromise
    Not everyone is eligible or qualified for an Offer in Compromise (OIC). An IRS settlement agreement (Offer in Compromise) is between a taxpayer and the IRS, that will help you settle your tax debt for much less than what you owe. Our IRS Tax Attorneys are experienced tax professionals who have experience negotiating Offers in Compromise with the IRS. Flat Fee Tax Service, Inc. clients have a 95% IRS settlement success rate. Contact us today so we can determine if your situation qualifies for this special program.
  2. Installment agreement
    When you cannot afford to pay your tax debt immediately, we can help you negotiate an Installment Agreement with the IRS. This type of payment plan option is good for those who cannot afford a lump sum payment to cover their tax debt.
  3. Currently Not Collectible
    When you owe the IRS less than $10,000 and cannot pay your tax debt, our IRS Tax Attorneys will have your tax debt placed into a Currently Not Collectible status, that means that your account is removed from the IRS’ active collection status. There are very strict guidelines for people who qualify for this status. Contact our tax relief team today so we can help you determine if you qualify.
  4. IRS Penalties and Interest
    We are experienced at representing clients before the IRS to negotiate lower penalties or interest payments on back taxes. Sometimes it is possible to have the penalties and interest completely removed, depending on the situation

Flat Fee Tax Service, Inc. offers a free, complimentary, and confidential tax analysis. Call our IRS tax relief firm today at 1-800-589-3078 and find out how we can help you.




What Happens If You Don’t File Tax Returns for 10 Years or More?

There are numerous reason for having unfiled tax returns, It’s not hard to get behind on your taxes. Perhaps there was a death in the family or you suffered a serious illness. Perhaps you got divorced or lost your job. Whatever the reason, once you haven’t filed for several years, a taxpayer may become too frightened to file. However, not filing taxes for 10 years or more exposes you to steep failure to file penalties and a potential prison term.

There’s No Time Limit on the Collection of Unfiled Tax Returns

If you have unfiled tax returns, it may be tempting to believe that the IRS or state tax agency has forgotten about you. However, you may still be on the hook 10 or 20 years later. If you don’t file and owe taxes, the IRS has no time limit on collecting taxes, penalties, and interest for each year you did not file.

It’s only after you file your taxes that the IRS has a 10-year time limit to collect monies owed. The state tax agency has their own rule and many have more time to collect. For example, California has up to 20 years after you file to collect.

You Could be Charged with a Crime

The IRS recognizes several crimes related to evading the assessment and payment of taxes. Penalties can be as high as 5 years in prison and $250,000 in fines. However, the government has a time limit to file criminal charges against you. If the IRS wants to pursue tax evasion or related charges, it must do this within six years from the date the unfiled return was due. Non-filers who voluntarily file their missing returns are rarely charged.

Determine If the IRS Filed a Substitute for Return (SFR)

Having an unfiled tax return doesn’t mean the IRS won’t file one for you. The IRS may file a Substitution for Return (SFR) on your behalf. Don’t think of this as a complementary tax filing service. The IRS won’t give you any of the exemptions or deductions that rightfully belong to you. The IRS will also pile on “failure to file penalties”.

Once a Substitute for Return (SFR) is filed, you will be sent a notice to accept the tax liability as filed in this alternate return. If you don’t respond, the IRS will issue a notice of deficiency. At this time the tax is consider owed by you and the IRS can begin to enforce collection via tax levy and tax liens. To encourage payment, a tax levy can be placed on your wages (IRS wage garnishment) or bank accounts. A federal tax lien may also be placed against your real property.

If a Substitute for Return was filed, you don’t have to accept the outcome. An IRS Substitute for Return can be challenged. You can go back and refile those years and include any available deductions. Chances are you can decrease the tax owed, as well as the interest and penalties.

File Your Missing Unfiled Tax Returns

You may want to file your old unfiled tax returns before an IRS demand is made. There’s no time limit for submitting a previously unfiled return. However, if you’d like to claim your refund, you have up to three years from the due date of the return. It may be a good idea to speak with an experienced tax attorney before filing old returns. But, here’s some benefits of getting missing tax returns filed:

  • Protect your Social Security benefits: If you’re self-employed and don’t file, you won’t receive credits toward Social Security retirement or disability benefits. The IRS can levy your Social Security benefits to the tune of 15% per the Federal Payment Levy Program (FPLP).
  • Avoid issues obtaining loans: Loan may be denied or delayed if you cannot prove income by providing tax returns or reportable income.
  • Not having to worry about your unfiled tax returns: Once your tax issue is resolved, it will free up your time for more enjoyable pursuits.

Negotiate Your Tax Bill

If your tax assessment is too high, you may be able to negotiate a better deal. Penalties may represent 50 percent of what you owe to the IRS. Getting these removed can make a real difference.

If your debt is more than $10,000, you might consider a Partial Payment Installment Agreement (PPIC) where the IRS agrees to accept less than the total you owe. The IRS will only agree to a PPIC if it’s clear that the monthly payments you can make will not cover your total taxes due for many years.

An Offer in Compromise (OIC) is the ultimate IRS settlement agreement between a taxpayer and the IRS that settles a taxpayer’s tax liabilities for less than the full amount owed. In 2016, the IRS approved approximately 42% of all Offer in Compromise submissions. Find out if you qualify to settle your tax debt.



Still Have Questions About Not Filing Taxes?

Reach Out to an IRS Tax Attorney

The interest and penalties on back taxes can be substantial. If it’s likely that you owe money, it’s a good idea to talk with an experienced IRS Tax Attorney before filing your unfiled tax returns. Our IRS Tax Lawyers can negotiate with the IRS or state tax agency and set up a payment schedule you can reasonably meet. It may also be possible to reduce the fines and fees assessed against you.

IRS Tax Relief In San Diego – Tax relief Southern California

Are You Looking For IRS Tax Relief In San Diego – Southern California

There are many types of tax issues that we can resolve. They include, but not limited to these types of IRS Tax relief:

Can’t Pay Back Taxes?

Unpaid taxes is the start of the IRS collection process, and the IRS tax relief team at Flat Fee Tax Service, Inc. can take action take action early for you and prevent penalties and interest. Our IRS Tax Lawyers will find the best tax relief solution for your Federal and State Taxes situation.

IRS Penalties and Interest Removal

IRS Interest and Penalties removal – arise from the Internal Revenue Service determining you have unpaid back taxes or you have made a late filing, Flat Fee Tax Service, Inc. knows all of the updated laws and we can use them to your advantage to possibly get some penalties removed. We can help get IRS tax relief for your account.

IRS Notices and CP Letters

Once the IRS has determined you owe back taxes they will then begin to take collection actions against you. The IRS tax relief team at Flat Fee Tax Service, Inc. knows the proper way to respond to the IRS & State Agencies based on the letter you have received. Our IRS Tax Attorneys can take action before collection issues arise on your behalf and protect you from bank levies, wage garnishment, property seizures and other forms of IRS Collection methods.

IRS Tax Lien

An IRS tax lien is another step the IRS takes toward the forced collection of back taxes owed. A tax lien will significantly hurt your financial situation and future ability to take out loans or borrow on credit. It could destroy your credit. Flat Fee Tax Service, Inc. can work for you to get these tax liens removed & help restore your credit rating which also helps your future employment opportunities.

IRS Tax Levy

An IRS  tax levy is the strongest weapon of the IRS, this is when they will begin seizing any assets and property that they can legally take from you. This includes your wages, paycheck and/or bank account(s).  Flat Fee Tax Service, Inc. can protect you from these egregious actions.

IRS Currently Not Collectible  (CNC)

An IRS Currently not Collectible status means that the IRS has determined that the amount owed to the IRS is not collectible at the present time.   If a taxpayer’s financial situation improves, the IRS will take the account off the Currently not Collectible (CNC) status and begin the collection process again.  Flat Fee Tax Service, Inc. can help you in getting your Currently not Collectible status and negotiate an interest and penalty removal.

IRS Wage Garnishment

IRS wage garnishment is one of the most common forms of levy used by the IRS. An IRS wage garnishment / IRS wage levy is “continuous” which means it goes on and on until the wage garnishment pays the tax debt in full or is stopped and released. The IRS Tax lawyers at Flat Fee Tax Service, Inc. understand how a wage levy works and what laws can be used to release your tax levy. We can help get your levy released in one (1) day.

IRS Bank Levy

An IRS bank levy can be a financially devastating enforcement mechanism used by the IRS. You have twenty-one days to get your money back. This includes Saturdays, Sundays and holidays. You have no time to lose. Our tax relief team understands how the IRS bank levy process works and what can be done to stop the levy or prevent the IRS from using a bank levy again. We will put our team of experts to work for you to get a levy released.

IRS Payment Plan

IRS payment plan is one of the most common forms of tax settlement used by the IRS.  Before you agree to an IRS Installment Agreement, call our tax relief team first. You may agree to a payment plan much larger than need be. We understand how a wage payment plan works and what laws can be used to release the levy. We can help get your IRS payment plan started.

IRS Offer in Compromise  (OIC)

An IRS settlement through the Offer in Compromise program is offered by the IRS to settle your tax debt for less than the full amount owed.  There are three major considerations for an IRS Offer in Compromise which will affect your the outcome.  If you qualify, your San Diego Offer in Compromise tax solution could be considerably less than you currently owe.  Call us now to see if you qualify for the IRS Offer in Compromise program.

Unfiled Tax Returns

Unfiled tax returns can lead to some of the biggest problems with the IRS. Flat Fee Tax Service, Inc. can prepare and file all types of past & present tax forms including personal, corporate, partnership, trust funds, and non-profit return.

Small Business Tax Problems

Common problems small business face when it comes to dealing with the IRS. Every business owner should be aware of the common problems because the IRS can easily destroy any business. The IRS Tax Lawyers at Flat Fee Tax Service, Inc. can represent you and your business against payroll issues, audits, bank levies, property seizures, and other collection issues your business is facing.



IRS Settlement On Back Taxes – Tax Negotiation

IRS Tax Negotiation & Tax Settlement

What Is An IRS Tax Settlement?

A tax settlement is an arrangement which is acceptable to the IRS or state taxing authorities that allows a taxpayer to retire and settle a back tax debt for less than the original amount owed. The IRS or State Taxation authorities sometimes allow this type of tax settlement when extenuating circumstances exist that would prevent the taxpayer from honoring the full debt.  While not every situation is appropriate for engaging in a tax settlement process, individuals who owe taxes often find that tax authorities are willing to explore the individual situation to determine if a tax settlement is possible.  This is typically based on current tax regulations and the circumstances of the taxpayer.

Benefits of an IRS Settlement on Back Taxes

There are several benefits associated with attempting to negotiate a tax settlement.

  • Pay Less Now – The most obvious is that the taxpayer ultimately pays a considerably lower amount of money to the tax authority.  Assuming that the situation of the applicant meets certain qualifications, a tax settlement amount may be determined and presented within a very short period of time. Once the balance is paid based on a mutually agreeable settlement, your back tax debt is considered settled-in-full, meaning that you, the taxpayer, is no longer subject to late fees and other types of penalties that would be incurred otherwise.
  • Avoid Federal Tax Liens, Wage Garnishments, and Bank Levies – Another benefit of a tax settlement is that the taxpayer avoids the placement of federal and state tax liens on a home or business, a bank levy on one or more available accounts, or the implementation of a wage garnishment on his or her paycheck.

How Does a Tax Settlement Work?

The IRS will allow a taxpayer to either negotiate a tax settlement for less than the total amount owed or come to an agreement on another method for the IRS to collect taxes owed over time. For either of these situations, the taxpayer must meet the qualifications of one of the tax settlement programs set forth by the IRS. The taxpayer will first have to determine which type of tax settlement they would like to apply for and then submit the appropriate forms to the IRS for review before making a decision. A taxpayer can either fill out the information themselves or they can have a designated tax professional make the filing on their behalf.

Typically, the negotiation of the tax settlement remains between the individual and the IRS or tax authority involved and may include a third party if the taxpayer seeks professional tax settlement assistance. Firms that specialize in IRS tax relief programs, surprisingly, also help to lower the costs to the individual, since there is typically a very positive outcome to seeking the assistance of an IRS tax relief professional.

In many instances, a tax settlement calls for paying off the entire tax settlement amount within a specified period of time.  During that time frame, no late taxes or tax interest is assessed on the balance of the tax settlement. Taxpayers may choose to pay off the tax settlement amount in one lump sum.  If this is not possible, the IRS or tax authorities will set up a schedule of payments that are within the means of the taxpayer, with the last payment coinciding with the final date attached to the tax settlement offer. Once a settlement has been reached by both parties, the taxpayer will be considered good standing with the IRS for the tax year/years that the settlement covered (unless the taxpayer defaults or doesn’t hold up to all the terms of the agreement).


Who Is Eligible for a Tax Settlement on Back Taxes?

The IRS offers settlements to taxpayers that are struggling with their tax debts or have valid reasons to abate their penalties. Not everyone is eligible for a tax settlement. In fact, most taxpayers are not eligible nor qualified to settle with the IRS.



The main factor the IRS takes into consideration when determining if the taxpayer will qualify for a tax settlement is their financial situation. If the taxpayer is undergoing financial hardship, it’s usually a good indicator of the IRS that a tax settlement on back taxes might be a great option.


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