by steve | Jan 31, 2011 | IRS Tax Advice
Did you receive a Wage Garnishment from the IRS, a 668W. Get help, FAST.
The IRS Wage Garnishment is a continuous levy on wages and other income. If you need professional tax help call our firm today. We can get immediate results.
How we get an Immediate Release of Wage or Bank Levy:
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak them.
2. We will make sure your tax returns are filed and current. If they are not filed, we will prepare and file your tax returns.
3. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement.
4. Settlement agreements can be in different forms:
a. Hardship. Hardship cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable.
b Payment Agreements are agreed upon monthly installment payments to the IRS.
c. Offer in Compromise. A much longer and detailed process of tax settlement. We will discuss in detail with you the merits of each.
5. The IRS will then fax to your payroll department, bank, or third party a Release Of Levy.
The IRS Continuous Effect of Levy on Salary and Wages
Unlike other levies, a levy on a taxpayer’s wages and salary has a continuous effect. It attaches to future payments, until the levy is released. Wages and salary include fees, bonuses, commissions, 2
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
A Form 668-A is issued to levy an author’s royalties. The author has a fixed and determinable right to royalties for books that have already been published. The levy reaches royalties for sales of those books in the future. The levy does not reach royalties for books that are written and published later. A new levy must be served to take those royalties.
Exempt Amount
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
If support is allowed, the same child can not be claimed as an exemption for figuring the exempt amount. See IRM 5.11.5.4 (2)a above.
If Then
The taxpayer has already shown proof of the required child support payment Write on the levy form, “Under section 6334 (a)(8) of the Internal Revenue Code, $ ____________________is exempt from this levy.”
The taxpayer shows proof of the child support after the levy is served Release enough of the levy so the support can be paid.
The taxpayer is not entitled to the support exemption unless the support is being paid.
Consider getting the taxpayer to have the child support payment withheld and sent directly to the person with custody.
Or, the taxpayer may make the child support payment through the Service, and the Service will forward the payment. When there is no open assignment, have the payments sent through Submission Processing. This may happen if the payments are being monitored in the campus.
by steve | Jan 31, 2011 | IRS Tax Advice
Fresh Start Tax llc 1-866-700-1040 A Professional Tax Firm Since 1982, the Practice of Tax. 1-866-700-1040
You do not have to speak to the IRS. We will fully represent you in this matter and settle your tax case.
If you have received a 668A, Notice of Federal Tax Levy, call our offices today to get immediate tax relief. We have many former IRS Agents and Managers on our tax staff that can get your situation taken care of immediately.
The Process of getting a Levy Release
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak them.
2. We will make sure your tax returns are filed and current. If they are not filed, we will prepare and file your tax returns.
3. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement.
4. Settlement agreements can be in different forms:
a. Hardship. Hardship cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable.
b Payment Agreements are agreed upon monthly installment payments to the IRS.
c. Offer in Compromise. A much longer and detailed process of tax settlement. We will discuss in detail with you the merits of each.
5. The IRS will then fax to your payroll department, bank, or third party a Release Of Levy.
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
Received form 668A – IRS Notice of Levy- Tax Firm, Immediate Tax Help “A” Plus Rated
by steve | Jan 31, 2011 | IRS Tax Advice
Fresh Start Tax LLC 954-492-0088 A Local Affordable South Florida Professional Tax Company Since 1982
We are a local tax firm specializing IRS settlements and tax negotiations. We can handle all your IRS needs and representation.
We have on staff Board Certified Tax Attorneys, CPA’s, Former IRS Agents and Instructors.
I am a former IRS revenue officer and teaching instructor of the offer in compromise as a former IRS agent.
I am a true expert when it comes to the IRS offer in compromise or tax debt settlement.
Call me today for a free initial tax consultation and hear the truth about the tax debt settlement programs offered by the Internal Revenue Service.
How we settle cases?
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak them.
2. We will make sure your tax returns are filed and current. If they are not filed, we will prepare and file your tax returns.
3. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement.
4. Settlement agreements can be in different forms:
a. Hardship. Hardship cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable.
b Payment Agreements are agreed upon monthly installment payments to the IRS.
c. Offer in Compromise. A much longer and detailed process of tax settlement. We will discuss in detail with you the merits of each.
5. The IRS will then fax to your payroll department, bank, or third party a Release Of Levy.
Fresh Start Tax is one of the premier tax resolution firms in the country.
We deal with all types of civil cases including individuals, businesses, non-profits, partnerships and corporations.
We have staff that specialize in every facet of IRS representation. We know all the IRS tax strategies because of our extensive IRS working backgrounds.
Some of our many specialties include the following:
- Immediate Tax Representation
- Offers in Compromise/Settlements
- Immediate Release of Bank Garnishments or Wage Levies
- IRS Notices/Bill of Intent to Levy or Final Notices
- IRS Tax Audits, Large and Small Dollar
- Hardships Cases, Payment Plans, Installment Agreements
- Innocent Spouse Relief
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Trust Fund Penalty Cases/6672
- Non-filers, never filed, old and past due tax returns
Our Company Resume: ( Since 1982 )
- Our staff has over 135 years of professional tax representation experience collectively
- On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents,
- Former IRS Managers, Instructors and Trainers
- Highest Rating by the Better Business Bureau “A”
- Extremely ethical and moral
- Fast, affordable, and economical
- Licensed to practice in all 50 States
- Premium on client communication
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published Tax Expert
- As heard on 90.3 FM Monthly Radio Show, You and the IRS
by steve | Jan 31, 2011 | IRS Tax Advice
Medical and Dental Expenses
If you itemize your deductions on Form 1040, Schedule A, you may be able to deduct expenses you paid in 2010 for medical care – including dental – for yourself, your spouse, and your dependents. Here are six things the IRS wants you to know about medical and dental expenses and other benefits.
You may deduct only the amount by which your total medical care expenses for the year exceed 7.5 percent of your adjusted gross income. You do this calculation on Form 1040, Schedule A in computing the amount deductible.
You can only include the medical expenses you paid during the year. Your total medical expenses for the year must be reduced by any reimbursement. It makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital.
You may include qualified medical expenses you pay for yourself, your spouse, and your dependents, including a person you claim as a dependent under a multiple support agreement. If either parent claims a child as a dependent under the rules for divorced or separated parents, each parent may deduct the medical expenses he or she actually pays for the child. You can also deduct medical expenses you paid for someone who would have qualified as your dependent except that the person didn’t meet the gross income or joint return test.
A deduction is allowed only for expenses primarily paid for the prevention or alleviation of a physical or mental defect or illness. Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or treatment affecting any structure or function of the body. The cost of drugs is deductible only for drugs that require a prescription except for insulin.
You may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses. The actual fare for a taxi, bus, train, or ambulance may be deducted. If you use your car for medical transportation, you can deduct actual out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses. With either method you may include tolls and parking fees.
Distributions from Health Savings Accounts and withdrawals from Flexible Spending Arrangements may be tax free if you pay qualified medical expenses.
by steve | Jan 31, 2011 | IRS Tax Advice
Settle Your IRS Problem – Best Tips from Former IRS Agents
Many taxpayers get a tax refund from the IRS each year. However, if you owe tax, here are 10 free tips to deal with your problem.
Tip #1 – If you get a bill for late taxes, you are expected to promptly pay all the taxes owed including any additional penalties and interest. If you are unable to pay the amount due, it is often in your best interest to get a loan or borrow the funds to pay the bill in full rather than to make installment payments to the IRS.
Tip #2 – You can pay the IRS with your credit card. Plus you get points by using your credit card. To pay by credit card contact Official Payments Corporation at 800-2PAYTAX, www.officialpayments.com, Link2Gov at 888-PAY-1040 or www.pay1040.com. It is usually cheaper to owe the credit card company than Uncle Sam.
Tip #3 – The interest rate on a credit card or bank loan may be lower than the combination of interest and penalties imposed by the Internal Revenue Service. The IRS charges a failure to pay penalties which is in addition to the interest, which makes paying the tax even tougher.
Tip #4 – You can also pay the balance owed by electronic funds transfer (EFT), check, money order, cashier’s check or cash. The IRS loves cash (do not send cash by mail). To pay by using EFT you can take advantage of the Electronic Federal Tax Payment System by calling 800-555-4477 or 800-945-8400 or online at www.eftps.gov.
Tip #5 – An installment agreement may be requested if you cannot pay the liability in full. This is an agreement between you and the IRS for the collection of the amount due in equal monthly payments. To be eligible for an installment agreement, you must be current with the filing of all your tax returns and be current with estimated tax payments if you do not have withholding. If the tax debt is over $25,000., the IRS will require a documented financial statement, Form 433-F to be sent in and reviewed by an agent at one of the Service Centers.
Tip #6 – If you owe $25,000 or less in combined tax, penalties and interest, you can request an installment agreement using the web-based application called Online Payment Agreement found at IRS.gov. This is very simple and painless.
Tip #7. – You can also complete and mail an IRS Form 9465, Installment Agreement Request, along with your bill in the envelope that you have received from the IRS. The IRS will inform you usually within 30 -45 days whether your request is approved, denied, or if additional information is needed. If the amount you owe is $25,000 or less, provide the monthly amount you wish to pay with your request. If the monthly amount you request will pay the IRS debt in full within 60 months it will probably be allowed without completing a Collection Information Statement, Form 433-A or 433-F. The IRS will require additional information if the debt takes over 60 months to pay off.
You may still qualify for an installment agreement if you owe the IRS more than $25,000, but a Form 433-F, Collection Information Statement, is required to be completed before an installment agreement can be considered. The 433-F is used by the ACS Unit to determine your financial ability to pay. If your balance is over $25,000, the IRS will consider your financial situation and propose the highest amount possible. Fresh Start Tax can help negotiate your installment agreement. We will fight to get you the lowest payment possible based on your financial information.
Tip#8 – If an agreement is approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with incomes at or below certain levels, a reduced fee of $43 will be charged. The reduced fee is automatically figured based on your income.
Tip #9 – Make sure your withholding is adjusted so you do not have the same problem in future years.
Tip #10 – For complicated situations or high dollar cases, call a tax professional.
