The IRS has recently been sending out tax levies to the Cities that the taxpayers live in. Why? If the taxpayers have had deposit on file with the City and received interest income, that becomes a levy source for the IRS. The IRS will send a levy out because the computer believes it may be a source of income. Very bad!!!!!!!!!!!!!!!
The Internal Revenue Service has just released their enforcement statistics for fiscal year 2009. These statistics are evidence that the Internal Revenue Service and the Federal Government are stepping up their efforts to seize the assets of millions of Americans. A record number of taxpayers experienced Federal Tax Liens, Federal bank levies and tax levies on their bank accounts. The statistics are as follows:
2009 Federal Tax Levies 3,478,118 2008 Federal Tax Levies 2,631,038 Increase of 32%
2009 Federal Tax Liens 965,618 2008 Federal Tax Liens 768,168 Increase of 26%
It is clear that the IRS is going to step up their enforcement action and try and collect the taxes to pay off this huge American deficit. This is the largest jump in enforcement action that we have seen in the past years and there is no evidence that the IRS plans to slow down.
Fresh Start Tax believes the increases will continue if not grow significantly for the fiscal year 2010. Our projections with the economic problems and the lost jobs, are that more and more Americans will continue to struggle. Fresh Start Tax will not be surprised if that Federal Tax Levy does not jump to a whooping 5 million tax levies next year.
The Fresh Start Tax Professionals believe several things can stop these enforcement actions from effecting all taxpayers including;
* if applicable, file an Offer in Compromise
* let a ” tax professional” handle your situation. they know the ins and outs.
* contact the IRS when you are in receipt of notices and letters
* be prepared to show the IRS that you may be experiencing a hardship
Individuals of Fresh Start Tax have been serving the professional community and taxpayers for over 60 years and are experts in the matters of Offers in Compromise, the removal of the Federal Tax Liens and the removal and release of the Federal Tax Levies. The Fresh Start Tax team consists of Tax Attorneys, Certified Professional Accountants, Enrolled Agents and former IRS employees.
Below are the addresses and telephone numbers for the IRS Service Centers to be used by Private Delivery Services – DHL, FedEx or UPS. The tax packages contain information about the program and state that “Private Delivery Services cannot use P.O. Box addresses,” but do not give Service Center addresses. Private Delivery Services also require a telephone number with the address.
Andover Service Center 310 Lowell Street Andover, MA 01810 (978) 474-9842
Atlanta Service Center 4800 Buford Highway Chamblee, GA 30341 (770) 455-2413
Austin Service Center 3651 S. Interregional Highway 35 Austin, TX 78741 (512) 460-7948
Memphis Service Center 5333 independent Road Memphis, TN 38118 N/A
Cincinnati Service Center 201 W. Rivercenter Boulevard Stop 11 Covington, KY 41011 N/A
Fresno Service Center 5045 E. Butler Avenue Fresno, CA 93727 (209) 456-5354
Kansas City Service Center 2306 E. Bannister Road Kansas City, MO 64131 (901) 546-3697
Ogden Service Center 1973 N. Rulon White Blvd. Ogden, UT 84404 N/A
Philadelphia Service Center 11601 Roosevelt Boulevard Philadelphia, PA 19155 (215) 516-2542
Most open IRS cases are closed in one of two ways, via a hardship or an installment agreement. How does the IRS determine how they are going to close your case? By simply taking a Form 443-A or Form 433-F financial statement from you, the taxpayer. Based on that financial statement and the documentation that goes along with that statement, the IRS will make a determination on your case.
If your case does not fall under the hardship rules, the installment agreement will be a payment plan that allows you to pay over a period of time. The IRS has the right to review the payment agreement from time to time, but most agreements end with the statute of limitations expiring on the case. So, unless your AGI (Adjusted Gross Income) increases significantly, these cases will die slowly throughout the years of the statute.
Why it is important to get a payment agreement as soon as possible:
1. It stops collection action against you for a long period of time;
2. It allows you to make affordable monthly payment to the IRS;
3. It gets your life back in order without the threat of IRS collection;
4. The IRS will release any levy they filed during the time they were working your case.
The IRS offers two types of installment agreements, streamlined and long term. After that, the Revenue Officer Agreement comes into play.
The Streamline Agreement
The streamline agreement can be obtained quickly. The rules for the streamline agreement come into play if the tax due is under $25,000, including all penalties and interest. You must have all your tax returns filed and have current withholding tax taken out or estimated tax paid. Under the streamline agreement the balance must be paid within 60 months or before the statute of limitation ends. Fresh Start Tax can get these cases resolved immediately. We can usually get a streamline process set-up within a one hour time period. One benefit of a streamline agreement is that no financial statement is required.
The Long Term Agreement
The long term agreement has several names, installment agreement or part pay agreement are the most common. The IRS requires a completed Form 433-A or Form 433-F, financial statement, depending on which division is working the case. The ACS unit requires a 433-F and the local or high dollar unit requires a 433-A. These cases are looked over more carefully and require a lot of documentation. The IRS will require bank statements, pay stubs, copies of all bills and possibly even cancelled checks. The IRS will also follow the National Standards Program which allows a limited amount of expenses per category. It is not recommended that you begin this process yourself with the IRS. It can be difficult to determine what they allow and what they do not. A professional can negotiate a better deal. The key to getting a good part pay agreement is packaging. At Fresh Start Tax we are the best at handling this process.
Revenue Officer Agreement
Should your case not be closed by the Automated Collection System, your case will head out to the local field branch of the IRS. A Revenue Officer is assigned the case. Their job, if it involves an installment agreement, is to secure a 433-A, a very long detailed financial statement complete with all documentation. If it gets to this point, you want IRS representation by trained professionals or you will be taken to the cleaners.
Fresh Start Tax is here for you.
Within 24 hours of receiving your current financial statement you will have your levy released and your case settled. STOP YOUR LEVY NOW!
1. The IRS has a list of levy information for all taxpayers on their master computer that goes back seven years.
2. The IRS gets the levy information from your 1040 tax return and attached documents, the W-2’s, 1099’s and various other sources such as interest or dividend income information.
3. The IRS has a record of all bank checks you have sent them and they keep this bank information on file.
4. The IRS will send a federal levy 668(a) or 668(W) out 6 weeks after you have received your CP-504, Notice of Intent to Levy. The 6 week period starts from the date on the IRS letter or notice.
5. Whether you sign for the certified notice letter that IRS sends out or not, the 6 weeks still runs from the date on the letter.
6. The IRS must give you a right to a hearing before the tax levy may be sent. There is a 30 day period of time for a tax hearing
7. The IRS can and will send out multiple levies to bank accounts, Form 668(a) and on wages, Form 668(w).
8. On an IRS bank levy, 668(a), there is a 21 day freeze on funds in the account the day the levy hits the bank. This gives you 21 days to resolve the case.
9. A wage garnishment, 668(w), or levy on wages is continuous and will not be removed or released until the case is closed.
10. The IRS will not release any levy until all tax returns are current.
If you receive a Tax Levy or Notice of Intent to Levy:
* Contact Fresh Start Tax at 1.800.700.1040 and we will handle the IRS for you;
* Make sure all tax returns are filed and you are current on all filings(we can do that too);
* Prepare and document an IRS financial statement, Form 433-F.
The IRS Financial Statements, Form “433-F”
The IRS Financial Statements are the single biggest problem for taxpayers when trying to close their IRS case. It is this document “alone” and the corresponding documentation that determines the outcome of your case.
The biggest cause of concern and problems comes from lack of knowledge in packaging the 433-F. The lack of knowledge on how to fill this out can significantly change the outcome of your case.
Paying too much to the IRS can cause financial hardship. Be very aware that your lack of knowledge is the IRS’s success.
Here are some tips for success when dealing with the IRS financial Statements.
Form 433-F is a financial statement that is primarily used by the Automated Collection System of the Internal Revenue Service, also call the ACS Unit.
The ACS Unit has offices set up in regions across the United States, but it works through an 1-800 telephone system. All calls to ACS are routed into one national telephone system. Those calls are routed to regions whose telephones lines are available to pick up. For instance, it is possible that calls from Florida are worked in California.
One benefit about this system is that it allows taxpayers on the East Coast to call up to 8:00 PM, Eastern Standard Time to handle their cases.
The downside to this system is that it is almost impossible to close the case with one telephone call.
Fresh Start Tax has the ability to make this happen.
What typically happens when you call the 1 800 telephone number is that the IRS agent asks you to complete the 433-F with all supporting documentation.
If you have the 433-F with the documentation you will fax it to the IRS agent directly. If you are missing one or more piece of information you must call back to submit the missing documents. You call the 1 800 telephone number again and talk to a different agent.
You’ll probably never get the first agent.
You have to go over the whole case again and at that time the second agent who reviews the 433-F may ask for different documentation that the first agent never inquired about. This process can repeat itself over and over.
This is the most frustrating system in the world and IRS knows it. When you finally close your case with an agent it must be approved by a supervisor.
In most cases the agent your working with will say “a supervisor will get back to you and let you know if it is approved”. Many times no supervisor calls.
You must call them back, to find out if your case if closed. If you do not confirm that your case is closed, it is very possible the case will hit the enforced collection system of the IRS. If this happens a federal tax lien and/or federal tax levies on bank accounts and wage garnishment may take place.
Always call back to confirm that your case is closed. By the way, wait times on the phone can be up to 45 minutes. Mondays and after Holidays, the wait time is big. You need to find the time and patience to call back.
The basic tips to closing your case when calling the IRS using the 433-F Financial Statement:
* Complete every line on the 433F;
* Answer all questions. Write none or not applicable in boxes that do not apply to you;
* Have all documents ready to be faxed to the IRS. Do not call them until all documents are ready to be faxed;
* Make sure you have bank statements, pay stubs and supporting documentation for expenses;
* When the IRS tells you they need managerial approval to close your case, make sure you contact them back or your case will still be open in the system. Do not assume the case will close itself.
Fresh Start Tax is a professional company with experts in this field. We can get you your very best result.
Call us today and end your problem NOW !!!