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 IRSOffers 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 or through their website
at www.taxmeless.com.
If you, like
many Americans fled abroad to a foreign country to escape your problems
and blundered back in the USA, and if you are only guilty of not paying
your U.S. taxes potential amnesty or forgiveness is now at hand.
Yes, you may
be able to return to the U.S. and lead a happy and productive life, without
the pressure and burden of looking over your shoulder waiting for the IRS
to show up and grab everything you own.
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.
