FREQUENTLY ASKED QUESTIONS
Offer in Compromise Related
Service Related
Other Tax Resolutions Related
Offer in Compromise Related
Q. I cannot afford to pay the Offer in Compromise $150 filing fee. What should I do?
A: You may not have to pay the $150 filing fee if you meet the guidelines below:
IRS OIC Monthly Low Income Guidelines
| Size of family unit | 48 Contiguous States & D.C. |
Hawaii | Alaska |
| 1 | $2042 | $2348 | $2552 |
| 2 | $2750 | $3163 | $3438 |
| 3 | $3458 | $3977 | $4323 |
| 4 | $4167 | $4792 | $5208 |
| 5 | $4875 | $5606 | $6094 |
| 6 | $5583 | $6421 | $6979 |
| 7 | $6292 | $7235 | $7865 |
| 8 | $7000 | $8050 | $8750 |
| For each additional person add: |
$708 | $815 | $885 |
For example, if you live in one of the 48 Contiguous states and there are 3 people within your household earning a total gross income of $3000, you will qualify for income exception according to the table above. You will not need to provide the $150 filing fee and 20% payment. You must also include the form 656-A with your offer.
If the IRS later determines that you do not qualify for low-income exception, your offer will be returned and you will not have appeal rights to the decision.
Q. If I am currently on a payment plan with the IRS, can I still apply for an Offer in Compromise?
A. Yes you can still apply for an Offer in Compromise. While your OIC is being reviewed, you are taken out of collections meaning you can stop making installment payments during that period.
Q. How much interest am I going to pay if my Offer in Compromise (OIC) is accepted?
A: None. Interest will not grow on the taxpayer's accepted Offer in Compromise amount from the date of acceptance until the OIC is paid. Interest and penalties will continue to accumulate on the unpaid tax liability while the OIC is under consideration. However, if you default on the terms of the offer such as not making a payment on time, the IRS will continue to add interest as Section 6601 of the IRS Code states. Interest will be applied to the amount the IRS determines is due after default and it will continue until the taxpayer completely satisfies the amount owed.
Q. If my offer gets accepted, what are the next steps?
A. 1) Pay the offer amount according to the OIC (Form 656). 2) Comply with the IRS Code by filing all required tax returns and payment of the required taxes for 5 years or until the offered amount is paid in full, whichever is longer.
Q If my offer gets a final rejection, what are the next steps?
A. We will review your financial position once again and set you up on a payment plan with the IRS. This will prevent the IRS from levying your wage or seize your property.
Service Related
Q. What are your fees?
A: Our fees are based on a flat rate. Depending on the type(s) of service(s) you require, the rate will differ. Through your initial consultation with us, we will establish the service(s) you need and the appropriate fee.
Q. What are the procedures once I sign up with STR?
A: You will be assigned to a specific Account Manager and a team of Tax Practitioners to help you with your back taxes. Your Account Manager is your sole point of contact. If you receive a Questionnaire Packet in the mail from us, please complete and return it to us immediately along with the requested documents. This will speed up your resolution and provides us with an overview of your tax situation. Refer to our Step-by-Step Process for additional details.
Q. How does the 100% Money Back Guarantee Work?
A: If you are not completely satisfied with our service, we will provide a full refund. Refer to Our Approach for more details.
Q. Can STR deal solely with the IRS on my behalf?
A: Yes. Once we receive a signed Form 2848 (Power of Attorney and Declaration of Representative) from you, STR’s Tax Practitioners are then authorized to speak to the IRS on your behalf. Hence, it is critical for you to return us the Form 2848 in a timely manner.
Other Tax Resolutions related
Q. How much income can the IRS garnish from me?
A: The amount garnished is determined by the amount you earn, your filing status, and the number of dependents in your household. Please refer to the Form 668-W for further details.
Q. If I incurred a tax liability before I got married, is my spouse held liable too?
A: No. However, the IRS will still request your spouse’s information. This allows IRS to determine the total household income. In some community property states, the IRS may take collection actions against your spouse. The most typical collection method is wage garnishment.
Q. What if I lost most of my records to prepare my tax returns?
A: We will be able to obtain any income information the IRS has on file on your behalf.