by Fresh Start Tax | Sep 30, 2013 | Florida Sales Tax, Sales Tax, State of Florida
We are a tax defense firm that specializes in IRS and state tax representation.
We have over 206 years of professional tax experience, 60 years of working directly for the Internal Revenue Service, 16 years to working directly for the state of Florida Department of revenue.
We are a full service tax and accounting firm. Contact us today for free initial tax consultation.
Florida Sales Tax Audit Representation
Business who Repair Tangible Personal Property
We are a Florida Tax Firm that Focuses on Florida Sales Tax Audit Help.
You need to know and understand what to do and what not to do for Florida Sales Tax laws relating to your business.
Insider Tips
If you are being audited by the state of Florida, Department of revenue it is critical you understand the nature of the tax audit and what it will curtail.
You need to understand what issues the Florida sales tax auditor will be looking at and what to be prepared for.
The agents will be focusing there attention on:
- Unreported Sales (source info – Bank Statements, Federal Tax Returns, State Tax Returns)
- Exempt Sales without proper documentation
- Repairs made to Non-Florida residents that were not shipped into Florida by common carrier and returned immediately when repairs were completed
- Taxable Fees that were not taxed such as service charges, technical fees, minimum fee charges, service calls, truck charges, and standard repair charges
- Sales Invoices with labor only and no tax (without evidence of materials not used in the repair)
- Rent paid without sales tax for buildings and other real property
- Rental consideration without sales tax(real estate taxes and other considerations paid on behalf of the landlord)
- Purchase of Fixed Assets as listed on the Schedule of Depreciation
- Purchase of consumable supplies
Florida Department of Revenue – Repair of Tangible Personal Property Standard Industry
General Overview
Retail repair businesses provide labor and materials to repair tangible personal property and return it to proper operating condition the size of the repair business may vary from a one-man operation to a large factory service; they all share one central function.
The definition of sales price in Section 212.02 (16), F.S “… Includes the consideration for a transaction which requires both labor and materials to alter, remodel, maintain, adjust and repair tangible personal property.” Rule 12A-1.006(1), F.A.C., states in part that, where parts are furnished by the repair, the entire charge he makes to his customers for repairing tangible personal property is taxable.
Insider Tip from Former Sales Tax Agent – Beware of the Drop of Oil
Further analysis of the tax ability of most repair transactions emphasizes; where so much as a drop of oil for lubrication is added to the property repair or a minute amount of wire and solder is used to repair a circuit, the entire charge made to the owner of the property for such repair or service is taxable.
Repairs to Industrial Machinery and Equipment
Industrial equipment is classified as tangible personal property, see TIP 02A01-04. The operation of industrial equipment repair is basically the same as small appliance repair. The major differences occur in billing methods and type of equipment repair.
The legislative intent to tax every sale of tangible personal property, including the fabrication or processing of such property, also applies to large industrial repairs. Rule 12A-1.006(3), F.A.C., notes that “provisions of this rule do not apply to contracts covering a combination of work on both real and personal property.
Such contracts are governed by the provisions of Rule 12A-1.051, F.A.C.” . The most important determination in deciding the taxability of repairs is to determine whether the item being repaired Realty or tangible personal property.
In addition, sometimes repair shops generate separate invoices for labor and materials when they are actually part of the same repair.
Billings may also contain travel expenses incurred for repair crew. All expenses, including travel, motel, restaurant charges, are taxable as a part of the repair weather stated separately or as a lump sum.
Florida Sales Tax Audit Defense
Business who Repair Tangible Personal Property
We are a full-service tax firm that specializes in federal and State tax representation and are one of Florida’s most experienced for sales tax audit defense.
Our staff consists of tax attorneys, certified public accountants, former IRS agents and a former sales tax auditor with over 16 years of direct work experience with the Florida Department of revenue.
Feel free to contact us for initial tax consulting for Florida sales tax audit defense.
We will completely review your case and give you a full assessment of your audit status so you can make an informed and confident decision of how to fully resolve your sales tax audit case.
Florida Sales Tax Audit Representation – Former Agents – Affordable Experts
by Fresh Start Tax | Sep 30, 2013 | Tax Help
Yes the long arm of the Internal Revenue Service can grab your tax refund for unpaid child support, certain federal and state and unemployment compensation debts and a variety of other problems you have may have found yourself having.
This action is called the tax refund offset policy.
At some point in time you must take your this tax obligation or settle your tax debt so this does not happen.
We may be able to take care of your tax debt through the filing of an offer in compromise or a tax debt reduction.
When you are ready to deal with this contact us today for a free initial context consultation and let us get IRS off your back permanently.
Refund Offsets: For Unpaid Child Support, and Certain Federal, State and Unemployment Compensation Debts
The Department of Treasury’s Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay:
- Federal agency non-tax debts;
- State income tax obligations; or
- Certain unemployment compensation debts owed to a state.
You should contact the agency with which you have a debt, to determine if your debt was submitted for a tax refund offset.
Department of Treasury’s Financial Management Service
You may call FMS at the number below for an agency address and phone number. If your debt was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt and send it to the agency you owe.
Any portion of your refund remaining after offset will be issued in a check to you or direct deposited for you.
FMS will send you a notice if an offset occurs.
The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. FMS will notify the IRS of the amount taken from your refund.
Contact the agency shown on the notice if you believe you do not owe the debt, or if you are disputing the amount taken from your refund.
If a notice is not received, contact FMS at 800-304-3107 or TDD 866-297-0517.
The available hours are Monday through Friday 7:30AM to 5:00PM CT. Contact the IRS only if your original refund amount shown on the FMS offset notice differs from the refund amount shown on your tax return.
If you filed a joint return and you are not responsible for the debt, but you are entitled to a portion of the refund, you may request your portion of the refund by filing Form 8379 (PDF), Injured Spouse Allocation.
You may file Form 8379 with your original joint tax return ( Form 1040 (PDF), Form 1040A (PDF), or Form 1040EZ (PDF)), with your amended joint tax return ( Form 1040X (PDF)), or by itself after you are notified of an offset.
If you file a Form 8379 with your joint return, write “INJURED SPOUSE” in the top left corner of the first page of the joint return. The IRS will process your Form 8379 before an offset occurs. If you file Form 8379 with your original or amended joint tax return, it may take 11 weeks for electronically-filed returns or 14 weeks if you file a paper return, to process your return.
If you file Form 8379 by itself, it must show both spouses’ social security numbers in the same order as they appeared on your joint income tax return. You, the “injured” spouse, must sign the form. Follow the instructions on Form 8379 carefully and be sure to attach the required forms to avoid delays.
Do not attach the previously filed joint tax return to the Form 8379. Send Form 8379 to the Service Center where you filed your original return and allow at least 8 weeks for the IRS to process your Form 8379.
We will compute the injured spouse’s share of the joint return for you. If you lived in a community property state during the tax year, we will divide the joint refund based upon state law.
Once again, at some point you must completely take care of your IRS problem were tax debt.
Contact us today to see how we can get a federal tax reduction through an offer in compromise.
IRS took your Tax Refund for Unpaid Child Support, State Refunds, Unemployment
by Fresh Start Tax | Sep 30, 2013 | Tax Help
IRS Tax Reduction Process
I am a former IRS agent and teaching instructor. The Internal Revenue Service has a very specific process to reduce your tax bill.
I actually taught the offer in compromise program when I worked with the Internal Revenue Service. We are tax experts in the IRS tax reduction process.
There are two specific ways that you can reduce your IRS tax bill the first is an abatement of penalties and interest, the second is through the offer in compromise program.
The Internal Revenue Service receives 58,000 offers in compromise to reduce a taxpayer debt.
The Internal Revenue Service accepts 38% of all offers in compromise through this IRS tax reduction process.
The tax reduction process through an offer in compromise is not what people think.
You must be a qualified candidate before IRS will accept a tax reduction on your behalf. With many companies on the web advertising settlements for pennies on a dollar, the Internal Revenue Service has been flooded by taxpayers thinking that IRS will reduce everybody’s tax debt easily . If this was the case there would be Disney World lines around IRS buildings nationwide.
There is a very specific process for the offer in compromise. The Internal Revenue Service has a pre-qualifier tool for the tax reduction process.
You can find that on our website.
Simply go on the homepage click on IRS forms and you will find the pre-qualifier tool for the offer in compromise.
Before we take any money or retainer from a client we will walk you through this process and see if it is feasible for a taxpayer to reduce their tax bill through the IRS tax reduction process called the offer in compromise.
The New Offer in Compromise Program is called Fresh Start
Offers In Compromise. An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC. This is why you must use the pre qualifier tool.
In order to be eligible fore the OIC
For an OIC to be process the taxpayer must have:
- filed all tax returns,
- made all required estimated tax payments for the current year, and
- made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
The IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).
The RCP is how the IRS measures the taxpayer’s ability to pay.Basic IRS wants to know about your assets and income. They could care less about your liabilities.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
The IRS may accept an OIC based on three grounds.
1. Acceptance is permitted if there is doubt as to liability. This simply means you did not owe the tax.
This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
2. Acceptance is permitted if there is doubt that the amount owed is fully collectible. This is the most common IRS tax reduction process. This is a pennies on a dollar settlement.
This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3. Acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
These IRS tax reduction situations are far and few between. Most of these offering compromises that are accepted occur because of medical situations.
Necessary Forms for the IRS Tax Reduction
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of :
- Form 656 (PDF), Offer in Compromise, and
- also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or
- Form 433-B (OIC) (PDF), Collection Information Statement for Businesses. A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
Application fee for the OIC
A taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
First, no application fee is required if the OIC is based on doubt as to liability.
Second, the fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
Choosing to pay -Payment Types
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability.
The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer.
Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer in compromise .
These amounts are also nonrefundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
The statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties. Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
If IRS rejects the Tax Deduction – Office of Appeals
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter. In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer. Please make sure you understand that both are different
Once again before you attempt to settle your case is for pennies on a dollar walk through the IRS tax reduction process called the offer in compromise. It is on our website.
Remember, you must be a qualified taxpayer for the settlement process.
IRS will require all documents including all canceled checks, bank statements and provable income and expenses for the last year.
Contact us for free initial tax consultation.
IRS Tax Reduction Process – Affordable Solution with Former IRS
by Fresh Start Tax | Sep 30, 2013 | Tax Help
Choosing a Tax Company for IRS Problems Help is a very important decision.
There are millions of Google search engines results for Tax Company.
Read the following tips for Choosing a Tax Company, I am sure they will be helpful.
I am a former IRS agent in teaching instructor and I have been in this business for the last 38 years. Conducted good due diligence check before choosing a tax company for IRS problem help.
Watch out for the Scam Artists
The IRS has come out with several tax bulletins regarding fraudulent tax companies within the past years warning the taxpayers to stay away from scam artists and companies making false claims. You can read about this on the IRS.gov.
The Tax Resolution Industry
The tax resolution industry for the most part has been turned over to sales people who have worked other business verticals such as mortgage, real estate and credit relief programs.
When their industry changes because of economic reasons or changes due to the federal law, these companies and sales people are forced to find other business verticals to work. A large number of these sales people and owners have found their way in IRS Tax Relief and Resolution business and most have no idea what they are doing. This is so sad.
While many of them are good persons in general, they have no business working an industry they know absolutely nothing about.
Many of these companies are in business today and gone tomorrow and many times with your money.
I cannot tell you how very important that it is that you do your due diligence before choosing a tax company for IRS tax issue or matter before sending your money or credit card to them.
You can avoid many of these problems if you follow this practical common sense advice on choosing a tax relief company for IRS Problem Help:
1. Check the Better Business Bureau report on the Company. If the company is not “A” rated, flee. Beware, many of these companies change names every couple of years.
2. Find out if there is a professional Tax Attorney or CPA on staff.
Scam companies will not have Tax Attorneys and CPA’s. Those professionals usually will not lend their names to scam artists.
Beware of companies that sub their work out to third party firms that are not connected with the company. many of these companies have backend tax firms that will actually do your work. Many problems come up when this happens because communications, notices and letters all get lost in the shuffle.
3. Check out how long the principles have been practicing tax or tax law. Most solid companies will find their principles have been practicing at least ten years or more.
4. Ask if the company guarantees their work.
If a company is guaranteeing their work, flee again. No one can guarantee IRS results. If they guarantee your money will be returned if they are not successful, that’s another story.
5. Interview the person that may work your case. Ask about his or her credentials and IRS work experience. You should get a good gut feeling after speaking to the person that will work your case.
6. Skype the person face to face. Ask if the person has a video conferencing system. You will get a good feel with a face to face.
7. Google the actual company that will be receiving your money and spend about 10 the 15 minutes checking out their site. A good tax firm will have a solid website which will include bios, press releases, blog pages and articles from IRS experts from their firm.
8. Many of these companies will have videos on their website so you can hear the actual professionals of the firm explained the tax relief process and how IRS will interact with you the taxpayer.
9. Carefully check out the retainer engagement to find out if there are any hidden fees. Most professional tax companies doing this type of work will give you a flat fee for working IRS problem help cases.
10. As a last tip to all taxpayers, if you owe IRS back taxes make sure you file all your tax returns and become current. If you not do this IRS will choose to not cooperate with you.
I tell you all these things because I’m a former IRS agent and manager. I have been in this business for the last 38 years.
Contact us for free initial tax consultation and we will go over all the options and tax resolution solutions to help your IRS tax problem.
Choosing a Tax Company for IRS Problem Help – Miami, Ft.Lauderdale, Tampa, Jacksonville – FLORIDA
by Fresh Start Tax | Sep 30, 2013 | Tax Help
Tax Audit Accountant
We are a local South Florida tax firm that specializes in TAX AUDITS.
We’ve been practicing in South Florida since 1982 and we are A+ rated by the Better Business Bureau.
We are a full service tax firm that specializes in everything from IRS bills and notices to tax court. We are staffed with Tax audit Accountants.
We can handle from the simplest to the most complex federal and state tax issues for affordable pricing. We have specific experts that handled a wide range of problems all with vast amounts of federal and state tax experience.
We are comprised of tax attorneys, tax lawyers, certified public accountants, enrolled agents and former IRS agents, managers and tax instructors.
Our firm has over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
You can contact us today for a free initial tax consultation. We are the affordable tax firm located right here in South Florida since 1982.
Also on staff as a former Department of revenue, state of Florida sales tax auditor.
Contact us today and we can also discuss your individual, business and corporate tax filings and compliance.
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
- IRS Help
- Tax Audit Accountant
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.
- Former State of Florida Sales Tax Audit Accountant
- Highest Rating by the Better Business Bureau “A” Plus
- 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 90.3 FM Monthly Radio Show-Business Weekly
Tax Audit Accountant – Miami, Ft.Lauderdale, Boca, Palm Beaches – South Florida Affordable Experts
