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. .Still want to pay your taxes?  Many expatriates are dropping out of the loop and neglecting to make their ransom payments...  however, what if you return to the land of the free? Nelson's US Expatriate Tax Service has made successful IRS Offers in Compromise for many years for taxpayers located throughout the world.  They can be reached in the US at (805) 493-5707; US fax at (805) 492-9059 and emailed at ustax@theglobe.com; or through their website at www.taxmeless.com.

The IRS has for years had an "Offer in Compromise" program that allows taxpayers to wipe out for pennies on the dollar past due income taxes, and start again with a clean slate.  In January of this year, the IRS revised its program, introduced new forms, and liberalized the rules to make it easier to make a deal to eliminate  all past  years of accumulated U.S. taxes.

You can make a deal to pay off your taxes (including the penalties and interest) for only a small percentage of the amount owed. You must make full disclosure of all your income and assets and you also have to propose to the IRS the payment of a lump sum or making payments over a period of years.  The offers that the IRS will accept usually allow you to keep enough of your earnings to pay your living expenses and use most your current assets to pay the balance.

To be eligible you must convince the IRS of the doubt to your liability, doubt as to collectibility (of the  current amount  you owe) or undue financial hardship.  The IRS will investigate your application, and your individual factual situation.  The IRS does have  some agents posted in Mexico, but due to limited resources makes no  personal  visits to investigate. Often after confirming your story there may be further negotiations over the amount you are offering to pay.

An example of the process is demonstrated by the  real estate salesperson who lived in Mexico for over seven years but owed over two hundred thousand of dollars in U.S. taxes, interest and penalties when they left the states.  The burden of those taxes was the main reason that individual settled in Mexico.  Because that individual was near retirement age, and in poor health, by using the offer in compromise program was able to pay off all of the taxes with a nominal payment of  $18,000. This taxpayer then returned to the US (after successfully negotiating their offer in compromise) for medical treatment and later stayed to live with relatives.  Previously, that taxpayer thought it would be impossible to ever live in the US due to that huge outstanding tax assessment.

The entire offer in compromise process can take from 4 months to a year.  You must file tax returns for all the tax  years that you previously have not filed.   During the course of the application you must keep current on your taxes.  Many states have programs to reduce or eliminate past due taxes which are similar to the IRS program.

If your offer is rejected you do have appeal rights.  In the past the IRS has accepted a little over 25% of the offers made. They are under instructions current to significantly raise that acceptance percentage and get hundreds of thousands of delinquent taxes and taxpayers off the books.  Therefore, now is a good time to get started with your own Offer  in Compromise before the cycle turns and tax policies get tougher.
 

Nelson's US Expatriate Tax Service has made successful IRS Offers in Compromise for many years for taxpayers located throughout the world.  They can be reached in the US at (805) 493-5707; US fax at (805) 492-9059 and emailed at ustax@theglobe.com; or through their website at www.taxmeless.com.

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