Appeal IRS Problem with Former IRS Appeals Agents – The Appeals Process

Fresh Start Tax
Appeal System of the Internal Revenue Service.
People sometimes disagree on tax matters, the IRS has an appeal system. However reasons for disagreeing must come within the scope of tax laws. The IRS process of appeals must be followed to the letter of the law or they will be completely denied by the Internal Revenue Service.
The Appeal IRS Decision
The tax decision reached by the examiner may be appealed to a local appeals office, which is separate and independent of the IRS Office that conducted the examination.
An appeals office is the only level of appeal within the IRS.
IRS Conferences with  the appeals division office personnel may be conducted in person, through correspondence, or by telephone with the taxpayer or its authorized representative.
Instructions for requesting a conference with an appeals officer are always provided in the letter of proposed tax adjustment. It is the job of each unit to make sure each taxpayer, business or corporate entity receives specific instructions regarding the appeals process.
In FSLG, the Letter 950 is generally used to propose adjustments to employment taxes.
It states that to request a conference with an appeals officer, the taxpayer will need to file either a small case request or a formal written protest with the contact person named in the letter.
Whether you file a small case request or a formal written protest depends on several factors.
Small Case Appeals
If a conference is requested the examiner will send the conference request letter to the appeals office to arrange for a conference at a convenient time and place. The taxpayer or its qualified representative should be prepared to discuss all disputed issues at the conference. Most differences are settled at this level.
To go further passes process involves going to tax court so it is critical that cases are settled at this level. Needless to say Tax Court can run thousands and thousands of dollars.
Only attorneys, certified public accountants or enrolled agents are allowed to represent a taxpayer before Appeals.
Making a Small Case Request $25,000 or less
A small case request is appropriate if the total amount of tax, penalties, and interest for each tax period involved is $25,000 or less.
If more than one tax period is involved and any tax period exceeds the $25,000 threshold, a formal written protest for all periods involved must be filed.
The total amount includes the proposed increase or decrease in tax and penalties or claimed refund.
To make a small case request, the instructions in the letter of proposed tax adjustment provide that the taxpayer should send a brief written statement requesting an appeals conference and indicate the changes with which it does not agree with and the reasons it does not agree with them.
Be sure to send the protest within the time limit specified in the letter you received, which is generally 30 days.  If you are sending this request in by mail make sure you send it certified. If it is not received on a timely basis IRS will deny your request.
Filing a Formal IRS Protest or Appeals with the IRS
When a formal protest is required, it should be sent within the time limit specified in the letter. The following should be provided in the protest:
1. Taxpayer’s name and address, and a daytime telephone number.
2. A statement that taxpayer wants to appeal the IRS findings to the Appeals Office.
3. A copy of the letter proposed tax adjustment.
4. The tax periods or years involved.
5. A list of the changes that the taxpayer does not agree with, and reason for disagreement.
6. The facts supporting the taxpayer’s position on any issue that it does not agree with.
7. The law or authority, if any, on which the taxpayer is relying.
Important note
All taxpayers must sign the written protest, stating that it is true, under the penalties of perjury as follows:
“Under the penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete.”
If the taxpayer’s representative prepares and signs the protest for the taxpayer, he or she must substitute a declaration stating:
That he or she submitted the protest and accompanying documents and;.
Whether he or she knows personally that the facts stated in the protest and accompanying documents are true and correct.
You can hire Former IRS Appeal Agents for Nationwide appeals
If you need to hire professional tax help to appeal or resolve your IRS dispute contact us today a you can speak directly to former IRS agents, managers and tax instructor.
Also on staff at Fresh Start Tax is a former IRS appeals agent who worked in the Appeal division for over 25 years. We are a nationwide company.
You can contact us today for a free initial tax consultation.
 
Appeal IRS Problem with Former IRS Appeals Agents – The Appeals Process
 
 

Appeal Resolve IRS Dispute – Former IRS Appeals Agents – Ft.Lauderdale, Miami, Palm Beaches – Florida

Fresh Start Tax
 
The Appeal System of the Internal Revenue Service.
Because people sometimes disagree on tax matters, the IRS has an appeal system. Most differences can be settled within this system without going to court and not only that is a much cheaper way to go ahead and resolve your IRS dispute.
Reasons for disagreeing must come within the scope of tax laws.
A case may be taken directly to tax court if the taxpayer does not want to appeal within the IRS.
Appeal or Resolution Within the IRS
The tax decision reached by the examiner may be appealed to a local appeals office, which is separate and independent of the IRS Office that conducted the examination.  An appeals office is the only level of appeal within the IRS.
IRS Conferences with appeals office personnel may be conducted in person, through correspondence, or by telephone with the taxpayer or its authorized representative
Instructions for requesting a conference with an appeals officer are provided in the letter of proposed tax adjustment.
In FSLG, the Letter 950 is generally used to propose adjustments to employment taxes.  It states that to request a conference with an appeals officer, the taxpayer will need to file either a small case request or a formal written protest with the contact person named in the letter.
Whether you file a small case request or a formal written protest depends on several factors.
If a conference is requested the examiner will send the conference request letter to the appeals office to arrange for a conference at a convenient time and place.  The taxpayer or its qualified representative should be prepared to discuss all disputed issues at the conference.  Most differences are settled at this level.
Only attorneys, certified public accountants or enrolled agents are allowed to represent a taxpayer before Appeals.
Making a Small Case Request
A small case request is appropriate if the total amount of tax, penalties, and interest for each tax period involved is $25,000 or less. 
If more than one tax period is involved and any tax period exceeds the $25,000 threshold, a formal written protest for all periods involved must be filed.  The total amount includes the proposed increase or decrease in tax and penalties or claimed refund.
To make a small case request, the instructions in the letter of proposed tax adjustment provide that the taxpayer should send a brief written statement requesting an appeals conference and indicate the changes with which it does not agree with and the reasons it does not agree with them.
Be sure to send the protest within the time limit specified in the letter you received, which is generally 30 days.
Filing a Formal IRS Protest or Appeals with the IRS
When a formal protest is required, it should be sent within the time limit specified in the letter.  The following should be provided in the protest:
 

  •     Taxpayer’s name and address, and a daytime telephone number.
  •     A statement that taxpayer wants to appeal the IRS findings to the Appeals Office.
  •     A copy of the letter proposed tax adjustment.
  •     The tax periods or years involved.
  •     A list of the changes that the taxpayer does not agree with, and reason for disagreement.
  •     The facts supporting the taxpayer’s position on any issue that it does not agree with.
  •     The law or authority, if any, on which the taxpayer is relying.

 
    The taxpayer must sign the written protest, stating that it is true, under the penalties of perjury as follows:
“Under the penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete.”
If the taxpayer’s representative prepares and signs the protest for the taxpayer, he or she must substitute a declaration stating:

  •     That he or she submitted the protest and accompanying documents and;.
  •     Whether he or she knows personally that the facts stated in the protest and accompanying documents are true and correct.

 
If you need to hire professional tax help to appeal or resolve your IRS dispute contact us today a you can speak directly to former IRS agents, managers and tax instructor.
Also on staff at Fresh Start Tax is a former IRS appeals agent who worked on the South Florida IRS appeals offices for over 25 years.
We also have on staff tax attorneys and CPAs for more complicated tax issues and cases involving tax court.
You can contact us today for a free initial tax consultation.
 

Appeal Resolve IRS Dispute – Former IRS Appeals Agents – Ft.Lauderdale, Miami, Palm Beaches – Florida

Back Taxes Help – Miami, Ft.Lauderdale, Palm Beaches – Affordable Tax Representation – South Florida

Fresh Start Tax
If you owe back taxes contact us today to hear about the various tax solutions to immediately and permanently help reduce your tax debt on your back taxes.
The new IRS fresh start program or fast start tax initiative that IRS is offering  is a series of various programs to help taxpayers who owe back tax debt deal with back tax problems. While everybody has their own individual situation by speaking to us we could put together an individual plan that will help you move forward so you can stop the anxiety and worry that dealing with these back tax issues cause.

The Process of Back Taxes Help – How the government deals with back taxes

There’s a very particular format  the Internal Revenue Service exercises in dealing with tax payers that owe back taxes.
You should know that the Internal Revenue Service is going to make sure that all your prior tax returns are filed and you are current in the present tax year of all withholding requirements.
This process is used by the Internal Revenue Service is called a full compliance check and is necessary on each case that is worked by the service center or by an IRS agent. It is critical before contacting the Internal Revenue Service you start the process of filing back tax returns if they are not currently filed.
IRS will want a current Financial Statement, Form 433-F.
IRS is then going to want to secure a current financial statement from you that reflects income and your current living expenses.
Internal Revenue Service will expect this financial statement to be fully verified proving all income and all necessary living expenses.
Internal Revenue Service will ask you to fill out a form 433F and either send or fax it to them along with all current documentation. You need to make sure the Internal Revenue Service receives this information before your last IRS bill or IRS notice L-1058.
If you do not contact the IRS prior to the expiration date of this letter you can expect the IRS to send out a bank levy, wage garnishment and possibly file the federal tax lien.
The Internal Revenue Service will also ask for your last pay stub, the last 3 to 6 months worth of bank statements and a complete explanation of all expenses taken on your financial statement.
You should be aware that the Internal Revenue Service has a national, regional and geographical expenses standards.
It is critical you familiarize yourself with this program or you will be in for a complete shock when IRS only allows you certain necessary living expenses.
After IRS fully reviewed your current financial statement they will make a determination on how they will deal with your case and as a general rule they fall into three categories.
Based on your financial statement the Internal Revenue Service may determine:

  • that you are currently going through an economic tax hardship and they will place your case into a currently noncollectable file.
  • The Internal Revenue Service may  determine that you can make monthly or current installment payments, or
  • the Internal Revenue Service may tell you that you are a suitable candidate for the offer in compromise or the settlement program on back taxes.

 

Some of the the new programs offer by the IRS and back taxes to help you the taxpayer.

 
The goal of the IRS is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
The changes include:

  • Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
  • Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
  • Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
  • Creating easier access to Installment Agreements for more struggling small businesses.
  • Expanding a streamlined Offer in Compromise program to cover more taxpayers.

 

The New Tax Lien Thresholds

The IRS will significantly increase the dollar thresholds when liens are generally filed.
The new dollar amount is in keeping with inflationary changes since the number was last revised.
Currently, liens are automatically filed at certain dollar levels for people with past-due balances. We understand that that new balance limitation is $10,000 total.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors.
Usually the government is not the only creditor to whom the taxpayer owes money.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter.
A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
 

Tax Lien Withdrawals

The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
 

Direct Debit Installment Agreements and Liens

The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.
 

Installment Agreements and Small Businesses

The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
 

Offers in Compromise or Tax Debt Settlements on Back Taxes

The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements.
An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer in compromise will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.
The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.

Back Taxes Help – Miami, Ft.Lauderdale, Palm Beaches – Affordable Tax Representation – South Florida

 

Federal Tax Lien Releases – Selling home, Fast Tax Lien Relief

Fresh Start Tax
There is a new an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home.
If taxpayers are looking to refinance or sell a home and there is a federal tax lien filed, there are options.
Taxpayers or their representatives, such as their lenders, may request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan.
Taxpayers or their representatives may request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.
The process to request a discharge or a subordination of a tax lien takes approximately 30 days after the submission of the completed application, but the IRS will work to speed those requests in wake of the economic downturn.

Filing a Notice of Federal Tax Lien is a formal process

Filing a Notice of Federal Tax Lien is a formal process by which the government makes a legal claim to property as security or payment for a tax debt.
It serves as a public notice to other creditors that the government has a claim on the property  and is extremely damaging to taxpayers credit.
In some cases, a federal tax lien can be made secondary to another lien, such as a lending institution’s, if the IRS determines that taking a secondary position ultimately will help with collection of the tax debt.
That process is called subordination.
Taxpayers or their representatives may apply for a subordination of a federal tax lien if they are refinancing or restructuring their mortgage. Without lien subordination, taxpayers may be unable to borrow funds or reduce their payments. Lending institutions generally want their lien to have priority on the home being used as collateral.
To apply for a certificate of lien subordination, people must follow directions in Publication 784, How to Prepare an Application for a Certificate of Subordination of a Federal Tax Lien.
Again, there is no form but there must be a typed letter of request and certain documentation.
The request should be mailed to one of 40 Collection Advisory Groups nationwide. See Publication 4235, Collection Advisory Group Addresses, for address information.
Taxpayers or their representatives may apply for a certificate of discharge of a tax lien if they are giving up ownership of the property, such as selling the property, at an amount less than the mortgage lien if the mortgage lien is senior to the tax lien.
The IRS may also issue a certificate of discharge in other circumstances if the taxpayer has sufficient equity in other assets, can substitute other assets, or is able to pay the IRS its equity in the property.
Without a tax lien discharge, the taxpayer may be unable to complete the home ownership change and the ownership title will remain clouded.
To apply for a tax lien discharge
To apply for a tax lien discharge, applicants must follow directions in Publication 783, Instructions on How to Apply for a Certificate of Discharge of a Federal Tax Lien. There is no form but there must be a typed letter of request and certain documentation.
The request should be mailed to one of 40 Collection Advisory Groups nationwide. See Publication 4235 for address information.
The IRS also urges people to contact the agency’s Collection Advisory Group early in the home sale or refinancing process so that it can begin work on their requests. People sometimes delay informing lenders of the tax liens, which only serves to delay the transaction.
Currently, there are more than 1 million federal tax liens outstanding tied to both real and personal property. The IRS issues more than 950,000 federal tax lien notices annually.
 
Federal Tax Lien Releases – Selling home, Fast Tax Lien Relief

Florida Sales Tax – Audit Defense Help – Tax Representation – Florida Sales Tax Experts

Fresh Start Tax
If you have been notified by Florida sales tax that you are going to be undergoing a tax audit you want to make sure that you are defended by a reputable Florida tax firm better tax experts and have a specialty for sales and use tax defense.
You can call us today to review your tax audit papers so we can let you know the scope of the investigation and possible solutions or resolutions that can take place.
There are number of ways that the Florida sales tax audit can take place and it varies from audit to audit, region or region and auditor auditor.
There are also several methods that can be used to audit floor sales tax so it is important to understand the different auditing methods that may take place.
Listed below are a few audit options that can be used Florida sales tax.
 

How a Florida Sales and Use may audit and conduct your tax audit: The use of  Selecting the Sample:

 
The first step in selecting the sample is to identify the sampling frame.
The sampling frame is a group of items from which the sample is drawn or a listing of sampling units.
In a homogeneous sampling frame, any item in the frame is representative of any other item; therefore, a random selection of all items in the frame will be representative.
The auditor determines how the accounting records are physically stored and available in order to identify the sampling frame.
Typically, accounting records have numbered sampling frames or non-numbered sampling frames, or they may have a combination of both.
Both numbered and non-numbered sampling frames can be randomly sampled using WinSample.
WinSample is a software program developed by the General Tax Administration’s Statistics Team and Applied Technology.
WinSample randomly selects sample points from many possible sampling frames using a seed number.
WinSample may be used when taxpayer records are not available in an electronic format suitable for stratified statistical sampling or e-Auditing.
Numbered sampling frames include source documents that are consecutively numbered.
Some examples are:
• Invoice numbers
• Voucher numbers
• Check numbers Non-numbered sampling frames include source documents that have no natural numbering system.
Although not consecutively numbered, a random sample of the transactions may still be identified.
 

Some examples of non-numbered sampling frames supported in WinSample are:

 
• Time periods (days, weeks, months, quarters)
• Journals (with page numbers and multiple lines on each page)
• Imaged documents
• Microfiche
After the sampling frame is identified, data integrity tests for each sampling frame should be performed.
Data integrity tests should be performed on both numbered and non-numbered populations.
 

Audit-Related Information

 
Electronic auditing, or e-Auditing,
Electronic auditing, or e-Auditing, is computer-assisted auditing using electronic records to complete all or part of the audit. If you use a computer to record your business activity and keep this data electronically, you are a candidate for an electronic audit.
We prefer to examine electronic records because it is the most accurate and efficient method of conducting an audit.
 
The Certified Audit Program
The Certified Audit Program is a cooperative effort between the Florida Department of Revenue and the Florida Institute of Certified Public Accountants (FICPA). Taxpayers who have not received a Notice of Intent to Audit from the Department are eligible.  The program gives taxpayers the opportunity to hire qualified CPA firms to review their sales and use and local option tax compliance.  As an incentive, Revenue waives penalties and reduces interest if tax is owed as a result of the audit.
 
The Voluntary Disclosure Program
The Voluntary Disclosure Program allows you to report previously unpaid or underpaid tax liabilities for any tax administered by the Florida Department of Revenue.
Once you have paid the tax and interest, Revenue will waive the penalties.  If you think you might owe back taxes and Revenue has not contacted you about the liability, you may be eligible for the Voluntary Disclosure Program.
Standard Industry Guides provide tax information for specific types of businesses.  Taxpayers may use them to help understand sales tax issues likely to surface relating to the industry; and relevant laws, court cases, and other technical documents.
Tax clearance letters and transferee liability certificates: When buying a Florida business, the purchaser should ask the seller for documentation of any tax, penalty, or interest due to the Department of Revenue.
A business owner can use a clearance letter as proof of good standing with the Department.
 

Florida Sales Tax

Each sale, admission charge, storage, or rental is taxable unless the transaction is exempt. Sales tax is added to the price of the taxable goods or service and collected from the purchaser at the time of sale. Florida’s general sales tax rate is 6 percent.
Use Tax
Use tax is due on the use or consumption of taxable goods or services when sales tax was not paid at the time of purchase.
For example:
If you buy a taxable item in Florida and didn’t pay sales tax, you owe use tax.
If you buy an item tax-exempt intending to resell it and then use the item in your business or for personal use, you owe use tax.
If you buy a taxable item outside Florida and bring or have it delivered into this state and you didn’t pay sales tax on the item, you owe use tax.
 

Discretionary Sales Surtax

Most Florida counties have a discretionary sales surtax (county tax) that applies to most transactions subject to the sales or use tax. The county surtax rate applies to a taxable item or service delivered into a county imposing a surtax. The surtax rate that applies to motor vehicles and mobile homes is determined by the home address of the purchaser. Check the rates for each county (Form DR-15DSS) in which you sell or deliver taxable goods or services.
For certain transactions, only the first $5,000 of a taxable sale or purchase is subject to the discretionary sales surtax.
 

How Tax Is Calculated

Sales tax and discretionary sales surtax are calculated on each taxable transaction. Florida uses a bracket system for calculating sales tax when the transaction falls between two whole dollar amounts.
Multiply the whole dollar amount by the tax rate (6 percent plus the county surtax rate) and use the bracket system to figure the tax on the amount less than a dollar. The Department of Revenue has rate tables (Form DR-2X) to help you.
 
 

Who Must Pay Tax?

Before you begin business in Florida, you must first find out if your business activity or products used will be subject to sales or use tax.
If it is, you must register to collect sales tax or pay use tax. Revenue provides a partial list of business activities that are taxable.
Governments and nonprofit organizations may not have to pay sales tax.
If you don’t know if your business must register to collect sales tax, contact your local service center or Taxpayer Services.
 
 

Florida Sales Tax Registration

You can register to collect and pay sales and use tax using our secure Internet site.
Once you are registered, we will send you a Certificate of Registration (Form DR-11), an Annual Resale Certificate for Sales Tax (Form DR-13) and tax return forms. Place the Certificate of Registration in a visible area of the business. You can use a signed copy of your current Annual Resale Certificate to buy products tax-exempt that you will resell or re-rent.
 

Filing and Paying Taxes

You can file and pay sales and use tax using Revenue’s secure web application or you may buy software from an approved vendor. You can access the web application using your certificate number and business partner number or a Revenue-issued user ID and password.
You must enroll in our e-Services program to receive a user ID and password. Enrollment has advantages: you can save your bank account and contact information, view your filing history, and reprint returns.
Please take time to read our detailed electronic filing and payment information. Taxpayers who report and pay tax electronically can download a payment due date calendar.
Helpful hints are available to prevent common mistakes, provide answers to common questions, and help ensure a successful filing.
Businesses whose sales and use tax collections are less than $20,000 per year may pay and report tax using a paper Sales and Use Tax Return (Form DR-15).
Revenue has detailed instructions (Form DR-15N) to help you accurately complete your return. However, we encourage all taxpayers to file and pay electronically.
 

Florida Sales Tax  – Audit Defense Help – Tax Representation – Florida Sales Tax Experts