selling or refinancing when there is a tax lien

Selling or Refinancing when there is an IRS lien

The dreaded tax lien is essentially an official statement telling you that the government has claim to your property until you pay your unpaid tax debts that you owe the Internal Revenue Service. Tax liens dramatically impact your refinancing and buying options more so than any other kind of debt. The odds of your getting refinancing or selling the property when there is a tax lien involved are slim. The IRS would tell you that until you satisfy the lien you will be unable to sell or refinance the property. The filing of a Notice of Federal Tax Lien is the formal notice that the government provides making a legal claim to the property as security or payment for a tax debt. It puts the other creditors on notice that the federal government has a claim on the property.

If you have a tax lien on your property or assets then you should reach out to our team of tax attorneys and tax specialists at McCauley Law Offices, P.C. You can still sell a property with a tax lien, or request refinancing when you have a tax lien on a property, however you must go about the process a bit differently and be strategic in your efforts. We can assist you with each step.

How do you satisfy a tax lien against your property or assets?

There are a few different options to satisfy the tax line. If you have equity in the property, the tax line is paid by using the equity out of the sales proceeds at the time of closing. This can be in part or in whole depending on the equity. If the home is selling for less than the lien amount, we can request on your behalf that the IRS discharge the line to allow for the completion of the sale. You or the lender can also request that the federal tax line be made secondary to the lender’s lien, to allow for refinancing or restructuring of a mortgage. During times of economic downturns and uncertainty, the IRS works to speed these types of request for discharge or mortgage restructuring. Traditionally, your lender, if you still owe on a mortgage of the property, has the priority lien on the property and that priority trumps any priority that the federal tax lien may have.

So, how does federal tax lien priority work?

It would be a very rare situation to find that your lender’s lien does not have priority over the property. Federal law says that mortgages and other secured asset loans have priority lien after fees and property taxes. They hold the most important lien, if you will, and if you do not pay them then they will foreclose on the property for non-payment. If the IRS filed a federal tax lien on the property or asset, then their request to the property would be secondary to your initial mortgage or asset loan.

Refinancing is Difficult

Refinancing a property that has a federal tax lien on it is very difficult. No standard lender is going to take a risk and offer a refinancing agreement without the mortgage being a purchase money mortgage with the types of protections that are in place. The lender would not lend unless the lien was withdrawn, discharged, subordinated, or paid off at closing.

Ways of Having the IRS Lower the Priority on a Tax Lien

We’d be happy to assist you with requesting the the IRS lower the priority on a tax lien. The IRs has a priority to work with financially distressed property owners to avoid having a federal tax lien block refinancing or the sale of a property. We can request that the IRS make a tax lien secondary to the lien from a lender that is restructuring or refinancing the loan for you. We can request that they discharge the claim altogether if the home is being sold for less than the amount of the mortgage lien in certain situations. The process of requesting a discharge or subordination of a tax lien takes about 30 days after the request is submitted.

Subordination of a tax lien makes the governments lien secondary to another lien on the property, such as your lenders. You can apply for a subordination of a federal tax lien, and without one you will be unlikely to borrow funds or refinance in the future. This is the true way to lower the priority on a tax lien.

Discharge of a lien is available you are giving up ownership of the property, selling it, at a amount less than the mortgage lien if the mortgage lien is senior to the tax lien. Sometimes the IRS will also provide a certificate of discharge of the lien if you have sufficient equity in other assets, thus paying the IRS tax debts owed.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

The Long and Short of It – This Attorney is Going to Jail

New Jersey attorney Douglas M. Long pleaded guilty to evading more than $250,000 in federal taxes on income generated from his law firm. Long, managing partner of Long & Marmero LLP, had primary control over the firm’s finances and supervised the firm’s bookkeeper. He used the company’s bank accounts to pay for school tuition payments for his children, utilities and service fees for his homes, student loan payments for himself and his wife and other personal expenses.

Long had the firm’s bookkeeper classify those payments as law firm business expenses to avoid his tax obligations. In addition, he declared that his personal tax returns for tax years 2012 through 2015 were true and accurate when they were not.

During that time Long concealed over $800,000 in personal income and evaded payment of over $250,000 in taxes owed to the IRS, including $368,000 in income and $120,000 in taxes for tax year 2014.

This was not Long’s first encounter with the law. In 2016 he was reprimanded by the state’s Office of Attorney Ethics for not supervising a bookkeeper who used almost $200,000 in client deposits that should have been held in trust, for firm expenses including overdraft fees and paying back personal loans.

Long’s current tax evasion charge carries a maximum sentence of five years in prison and a potential fine of $250,000, or twice the gross gain or loss from the offense. In addition to the guilty plea, Long agreed to pay restitution to the IRS.

card payments form 433d

Form 433-D IRS Installment Agreement [with video]

Form 433-D is used for the application for an Installment Agreement with the IRS to know when and how much to automatically draft from a bank account.

What a Form 433-D is used for

This form is used for the application of an Installment Agreement with the IRS.

An Installment Agreement is the understanding between you and IRS that you will pay back your debt in “installments” or monthly payments. This is a good idea if you have a large amount and need to pay it back gradually. The downside to this is that if you miss a payment, you may be denied the continuing of the Installment Agreement and have to pay it all upfront.

It may be in your benefit to have automatic payments because it could be cheaper over the long-haul with lower interest rates.

NOTE: It can take about 30 to 45 days for this form to be approved and the first payment drafted.

How to fill out a Form 433-D

Here’s a video about how to fill out your Installment Agreement Form 433-D:

Difference between Form 443-D and Form 9465

Form 433-D is the basic Installment Agreement for payment over a period of time.

Form 9465 is a request to have an Installment Agreement.

Submitting Form 433-D

There are two ways to submit the form:

1. Electronically

There’s not a way to submit this form electronically, but you can view and pay your balance by going to IRS.gov/directpay.

2. By mail

Mail Form 433-D to: Internal Revenue Service. ACS Support. PO Box 8208. Philadelphia, PA 19101-8208.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

federal tax lien statute of limitations

Federal Tax Lien Statute of Limitations

A fact that is not widely advertised by the Internal Revenue Service is the statute of limitations on Federal Tax Liens. The Federal Tax Lien Statute of Limitations is 10 years. This means that the Internal Revenue Service has 10 years to collect unpaid tax debts from you. After the 10 years expires, the IRS will wipe your tax debt clean and stop making attempts to collect the tax debts from you. Hearing this you may think that the best option is just to wait out the 10-year period owing tax debts and avoiding the IRS. Think again, unfortunately it is not that simple. The 10-year statute of limitations gives the IRS an advantage and is certainly not an ‘out’ for taxpayers that owe back taxes. It dissolves them of the time and expenditures of trying to reach you to get you to pay the taxes.

Consequences of Owing Back Taxes

During the ten-year period that you owe back taxes, the IRS will make attempts to get you to pay your taxes. They can garnish your wages, impose levies and place tax liens on your property. Your credit will be ruined, you will not be able to apply for a license, get a loan, buy a property or sell a property, and in some cases it could even pose a challenge to maintaining or obtaining employment. Put simply, you should not attempt to wait out the 10-year Federal Tax Lien statute of limitations. You should not ignore the IRS’s attempts to get you to pay your back taxes. You do not have to avoid their communications. You will inevitably receive a Notice and Demand for Payment from the IRS, letting you know that they are filing a lien against property that you own.

What are the Exceptions to the Statute of Limitations Expiring on Federal Tax Liens?

There are a few circumstances which may extend or suspend the ten years to collect statute of limitations. The IRS will extend the collection period if you enter into an installment agreement with them to pay the back taxes. Collection by the IRS can continue to take place until the 89th day after expiration of the installment agreement. Another situation in which the IRS may extend the statute of limitations expiration date is under the agreement in which they release a levy. The IRS requires that this extension be included in the agreement. It should be noted that there are IRS codes that also will result in extensions of the collection period statute of limitation expiration date. For instance, if the United States files suit against you and reduces the tax claim to judgement, then there is no expiration until the judgement is satisfied.

How Do I Get Rid of a Federal Tax Lien?

If you are facing a tax lien, then McCauley Law Offices, P.C. can help you with your tax problems. Paying your tax debt in full may seem like an insurmountable task, but we can help you each step of the way. First, you should realize that you have options, no matter what situation you find yourself in. Paying your tax debt, in full, is the best way to get rid of a federal tax lien against you. When you enter into negotiations and communication with the IRS additional options open up to your for reducing the impact of an existing lien. We can help you with tax lien removal.

Can I transfer Property and Get out of a Tax Lien?

After a federal tax lien is attached to a property, it remains attached to the property until the lien has expired, is released, or until the property has been discharged from the lien. The transfer of property subsequent to attachment does not affect the lien. If property is sold by the taxpayer, the lien attaches to whatever is substituted for it, as it reaches all of the taxpayer’s property and rights to property.

Are there any situations in which the IRS will suspend the Federal Tax Lien Statute of Limitations?

Yes, there are a few common situations in which the IRS will suspend the collection period. They are:

  • Issuance of a statutory notice of deficiency
  • In the event that the assets of the taxpayer are in control or custody of a court
  • If the taxpayer is outside of the United States for a continuous period of at least 6 months
  • an extension exists for the payment of an estate tax
  • a wrongful seizure of property or a wrongful lien on property
  • a taxpayer bankruptcy filing triggering the automatic stay

At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

how does the irs calculate penalties

How Does the IRS Calculate Penalties

According to law, IRC § 6651(a)(1), the your Internal Revenue Service has to impose penalty for failure to pay tax that is due on your return. The same law, IRC § 6651(a)(2), provides the IRS with percentage of penalty to impose or fine the taxpayer. The IRS calculates penalties according to law and their code.

Common IRS Penalty Calculations According to Code

For failure to file your taxes,the IRS will penalize you unless you show that you have had a reasonable cause to not file. You must have them approve your reasonable cause. If you are found to be in willful neglect for failing to file your taxes then you will be charged an additional 5% of the amount shown as tax if the failure is not for more than 1 month. For each additional month that you fail to file, you will be charged and additional 5%, and this cannot exceed 25% in the aggregate. You can see why requesting an extension is necessary if you foresee that you will not be filing your return on April 15th.

Even if you have applied for and received an extension on filing, you should be aware of IRS penalties. Incoming tax returns can be subject to a minimum late filing penalty when filed more than 60 days after the return due date, including extensions. The minimum penalty is the LESSER of two amounts; either 100% of the tax required to be shown on the return that you did not pay on time, OR a specific dollar amount that is adjusted annually for inflation. The IRS has laid out guidelines for those specific dollar amounts which are:

  • $435 for returns due on or after 1/1/2020
  • $210 for returns due between 1/1/2018 and 12/31/2019
  • $205 for returns due between 1/1/2016 and 12/31/2017
  • $135 for returns due between 1/1/2009 and 12/31/2015
  • $100 for returns due before 1/1/2009

If you fail to pay tax reported on your return, the IRS will fine you 5% of tax not paid by the due date of April 15th. They will charge you 0.25% during any approved installment agreement (if return was filed on time and the taxpayer is an individual); 1% if tax is not paid within 10 days of a notice of intent to levy. You will be penalized with additional charges for any remaining unpaid tax each month or part of a month following the due date, until the tax is fully paid or until 25% is reached.

For failure to pay tax not reported on original return and not paid in full within 21 days of the date of notice and demand correspondence; 10 business days if the amount in the notice and demand equals or exceeds $100,000, 5% of tax not paid by the due date in the notice, which is typically 21 calendar days from the notice date, 10 business days if the balance equals or exceeds $100,000; 0.25% during approved installment agreement (if return was filed on time and the taxpayer is an individual); 1% if tax is not paid within 10 days of a notice of intent to levy. This will be a recurring monthly charge on the remaining unpaid tax each month or part of a month following the due tax, until the tax debt is fully paid.

With regards to estimated tax, the IRS uses Code §6654 an §6654 and says that estimated tax payments are required if you expect to owe $1000 or more when the return is filed. If your income is received unevenly during the year, you may be able to avoid or lower the penalty by annualizing your incoming and making unequal payments. Our knowledgeable tax attorneys can work with you to ensure that the proper forms are filed on your behalf and you can have the IRS calculate your penalty separately for each require installment. The IRS will calculate the number of days late and then multiply by the effective interest rate for the installment period. You can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. You may meet the criteria for a waiver of this penalty, and we can help you properly assess and request a waiver of this penalty.
If you provide the IRS with a returned check, or dishonored form of payment, IRS Code §6657 says that for payments of $1,250 or more, the penalty you will face will be 2% of the amount of the payment. For payments that are less than $1,250, the penalty is the amount of the payment or $25 whichever is less.

You can learn more about situations in which you will be assessed an IRS penalty on the information that we provide on tax penalties and what to expect. If you owe back taxes, or have not filed your returns for the year by the extension deadline at the latest, you need to contact us for help. You have options, and we can help you understand what those options are to avoid more tax penalties and interest fees. We are off a Free Confidential Tax Consultation to assess your specific needs and situation.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

Stocks

How to file form 3921 electronically

IRS Form 3921 is used to report the exercise of an incentive stock option. This form is used by corporations to document each transfer of stock to a person. If your corporation offers incentive stock options and you accept, you must file Form 3921 for each transfer.

Where to find Form 3921

If employees accept the incentive stock options (ISOs), then companies must file one form per ISO.

Each 3921 has three copies. Your company:

  • Files copy A with the IRS, either electronically or by mail (deadline is 2/28 in paper;  3/31 electronically)
  • Gives copy B to the employee who exercised options (deadline is 1/31)
  • Keeps copy C for your company’s records

Companies that fail to fill out these forms or not submit them on time may accumulate hefty fines (listed below).

How to file Form 3921

You can file Form 3921 either by mail or online. If you have more than 250 documents to file, then you are required to file online. Before you begin filing, there are a few things you need to start:

Failure to file Form 3921

If you fail to file the correct information or you’re late, you’re likely to be penalized. How much you pay depends on when you file the correct form.

Your business may end up paying as little as $50 or in the $100,000’s depending on the time and size of business.

  • Within 30 days after the due date: $50 per form. The maximum penalty is $547,000 per year or $191,000 for small businesses
  • More than 30 days after the due date, but by August 1st, you’ll pay $100 per form
  • The maximum penalty is $1,641,000 per year or $547,000 for small businesses
  • After August 1st, or if you never correctly file, you’ll pay $270 per form
  • The maximum penalty is $3,282,500 per year or $1,094,000 for small businesses

At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

pay back IRS

What happens if you owe the IRS money and don’t pay

Year after year, some taxpayers end up owing more money because it accrues year over year with more debt. But what if you don’t or can’t pay? Well, in some cases they will use your assets to pay back the debt. The IRS can place a lien on your property and assets, which could later become a levy, to seize your property to pay the tax bill.

How a lien can be placed to pay for your debts

A federal tax lien is a legal claim by the government to pay for your tax bill. Once a claim is placed, they have access to your personal property including real estate, personal property, and financial assets to pay back your debt.

What you can do to prevent the IRS from taking your property

There are a few ways to pay back the IRS without them placing a lien or a levy against you. Here’s how to pay back debt:

 1. Start an installment agreement

This is a payment plan to pay back the IRS in regular intervals. This shows that you are serious about paying back the debt. The disadvantage of this is that the IRS can terminate the plan if you consistently don’t pay them back.

2. Request a short-term extension

Sometimes taxpayers need just a little more time to pay back the balance. When they do, they can request a 120-day extension. Taxpayers will not be penalized if they formally request an extension. There will be an increase, however, of .5% in interest per month on the amount.

3. Apply for a hardship extension

This can only happen if you can prove that the money you owe would cause hardship for you or your family. There are no costs or penalties for this, but there is an increase in interest in your payment.

4. Borrow from your 401(k)

You can pull from your 401(k) to pay for the debt, but it’s not recommended. There are other implications to this and small fees may be involved.

5. Use a debit/credit card

If it’s not an absurd amount, maybe it’s best to put it on a credit card. Don’t use a debit card unless you have the money ready to pay. Fees vary generally and double-check the interest for the card before you do this. It may be better for you to do an installment agreement with the IRS instead.

6. Get a personal loan

A loan from a family or friend could be the answer. Use your best judgment on this one.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

A Buffet of Lies and Deceit

The owners of the New China Buffet and Grill in Tennessee have been charged with employment and income tax fraud, conspiracy to harbor illegal aliens and money laundering. Quanwei Shi and Chongqiang Chen, both 29, are accused of hiring undocumented workers from China and Guatemala to work at their restaurant. They did not require the workers to complete any forms related to immigration status and paid them in cash.

The indictment states that Shi evaded payroll taxes by failing to withhold $175,455 from the workers’ payments. Shi is also accused of signing and filing false forms with the IRS that under reported the business gross receipts for tax years 2017 and 2018.

The illegal workers, who lived with Shi and Chen, were transported to the restaurant daily and ordered to work in the kitchen, where they could not interact with the restaurant’s customers.

The defendants face up to 20 years in prison.

tax penalty relief

Tax Penalty Relief

McCauley Law Offices, P.C. can help you if you are dealing with large penalty amounts and interest fees being applied to your back taxes.  Hopefully, the fact that the IRS charges penalties and interest fees on the debt that you owe does not come as a surprise to you.  You may feel as if you are underwater, swimming against a strong current when thinking of your debt to the IRS.  We can help you.  You may qualify for penalty relief, or penalty abatement services.  If you do not get help with your IRS penalties, they will continue to accrue until you pay your balance in full.

Most Common Things the IRS charges penalties for:

  • Failure to File – the date to file your taxes is April 15 unless you requested to file on an extended date and the request was approved by the IRS.
  • Failure to Pay – when you do not pay the taxes reported on your return in full by April, 15.  An extension to file does not mean that you have an extension to pay.
  • Failure to Pay with Withholding Amt or Quarterly Payments – When you fail to pay the correct amount via withholding or through quarterly payments that you set up.
  • Returned Check from Bank – when your bank does not honor your check or other form of payment

The penalties that the IRS can assess on your tax debts are calculated different depending on what they are penalizing. We cover common IRS penalty calculations separately in depth in other articles.

If you cannot pay your balance in full, you should pay what you can to the IRS as soon as possible. We can advise you of the proper channels for negotiating with the IRS including perhaps entering into an installment agreement to pay your remaining balance on taxes owed. You may also qualify for penalty relief or the IRS removing certain penalties. Our experienced tax attorneys can negotiate with the IRS on your behalf and potentially remove penalties owed.

Types of Penalty Relief the IRS Offers

The IRS will alleviate penalties in the case of reasonable cause. The IRS considers fire, casualty, natural disaster, or other disturbances as sound reasons for failing to file a tax return, make a deposit or pay tax when due. Other sound reasons are inability to obtain records, death, serious illness, incapacitation or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate family. They will render reasonable cause for other occurrences if you can show that you used all ordinary business care and prudence to meet your tax obligations but were unable to do so.

The IRS does not consider a lack of funds as a reasonable cause for failure to file or pay on time. They will sometimes see the reason for the lack of funds as a reasonable cause that meets the criteria for the failure-to-pay penalty.

The IRS may provide relief from penalty under its administrative relief, First Time Penalty Abatement policy. You have to meet the policy’s requirements and we can help you determine if you are eligible under the requirements.

Some of the requirements under the policy are:

  •  You did not previously have to file a return or you have no penalties for the last 3 tax years prior to the tax year in which you have received a penalty.
  • You filed all currently required returns or filed an extension of time to file
  • You paid, or arranged to pay your full tax due

Understanding the First Time Penalty Abatement Policy is best when handled by a professional such as a tax attorney near you, helping you. For instance, you may want to wait until you can fully pay the taxes owed prior to requesting penalty relief under the services first time penalty abatement policy. You may also receive administrative relief if you have received incorrect oral advice from an IRS agent.

Penalty relief can be given if the IRS finds that you qualify for a statutory exception. These exceptions are for if you have received improper written information from the Internal Revenue Service.

The IRS does not abate interest charged for reasonable cause or as first-time relief. Interest is charged by law and will not cease until your account is fully paid.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

fresh start initiative

What is the Fresh Start Initiative and Can I Qualify?

You are not alone if you are a struggling taxpayer that hopes that the IRS will just forget about your tax debt. Unfortunately, the IRS will not forget about your tax debts and leave you alone if you decide to ignore your tax liability and fail to pay them. Failing to pay taxes that are owed can lead to a host of issues including tax liens, tax levies, seizures of assets, loss of business, and even imprisonment. Compared with these types of consequences, penalties and interest fees seem like a cake walk. The truth is the IRS is a party that you can negotiate successfully with, if you are willing to communicate with them and if you are handling the communication in a way that they see as acting in good faith. You must be honest with them. You cannot hide anything.

McCauley Law Offices, P.C. can help you if you owe back taxes and you are incurring more tax penalties and interest fees.

You may have heard of the Fresh Start Initiative program that the IRS created in 2011 and expanded in 2012, to assist struggling taxpayers that are having trouble staying afloat and making ends meet. If you are having trouble paying your federal taxes than this program, for individual taxpayers and small businesses, may be the best option for you. The IRS realized that they have an obligation to help honest individuals and small businesses that have fallen on hard times and may be having a problem with paying their tax debts. The Fresh Start Initiative utilizes the IRS’s offer in compromise option for paying back taxes.

The program made changes to IRS tax policies towards installment agreements, offer in compromise terms and tax relief options. It seeks to help a greater number of taxpayers instead of penalizing a larger number of taxpayers that are having issues with paying. Some of the previous policies regarding installment agreements and offers in compromise made taxpayers file different forms and go through reviews and this program seeks to streamline these programs and make it easier for taxpayers to pay their debt.

The Fresh Start Initiative Changes Include:

The IRS has revised the calculation for the taxpayer’s future income. They now allow taxpayers to repay their student loans, and to pay their delinquent state and local taxes. They have expanded the Allowable Living Expense allowance category and amount. They have made it easier, through the Fresh Start Initiative, for taxpayers to live comfortably while still paying their tax debts. Other things that the program did to alleviate some of the strain on taxpayers was narrow the parameters and clarify when a dissipated asset will be included in the calculation of reasonable collection potential. Also, generally, equity in income producing assets will not be included in the calculation of reasonable collection potential.

Reasonable Collection Potential is now calculated by only looking at one year of future income for agreements paid in five or fewer months instead of looking at four years of projected income; two years of future income for debts to be paid in six to 24 months instead of looking at five years of projected income.
McCauley Law Offices, P.C. can help you with the OIC program and the application steps. You will be required to fill out Form 656-B and Form 656 and there are a few steps you’ll need to take if you would like to take part in the Fresh Start Initiative OIC program.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.