Did You Under Report Your Income + Former IRS Can Help

Fresh Start Tax

 

Did you underestimate your income?   Need Help with  the IRS, call us today.   1-866-700-1040

 

IRS catches these errors on the underreporter system that matches up third party info.

 

Former IRS Agents who know the system, Since 1982.

Highlights of the Data 2016  You are not alone! Lets look at the facts.

• In Fiscal Year (FY) 2016, the IRS received almost 3.0 billion third- party information returns; 88.3 percent were filed electronically

• The IRS closed almost 3.5 million cases under the Automated Underreporter Program, resulting in nearly $6.8 billion in additional assessments

• The IRS closed 389,000 cases under its Automated Substitute for Return Program, resulting in $542.8 million in additional assessments

• For Tax Year (TY) 2015 individual income tax returns processed during FY 2016, IRS sent more than 1.6 million notices to taxpayers for 2.1 million math errors identified on
their returns

• For TY 2015, math errors associated with calculation of income or other taxes made up 36.2 percent of total math errors.

For TY 2014 and prior-year returns processed in FY 2016, misreporting the number and amount of exemptions were the most common errors, making up 25.5 percent of the total.

 

Anytime you help with the IRS call true tax professional today!

New Updates of the IRS Offer in Compromise to Reduce Tax Debt + Use Former IRS Agents

Fresh Start Tax

 

USE Former IRS Agents

Important Notice: Offer in Compromise applications received on or after March 27, 2017, will now be returned without consideration if taxpayers haven’t filed all required tax returns.

 

The application fee will be returned and any required initial payment submitted with the OIC will be applied to outstanding tax debt. This new policy doesn’t apply to current year tax returns if there is a valid extension on file.

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed.

Taxpayers who can fully pay the liabilities through an installment agreement or other means, won’t qualify for an OIC in most cases.

 

To qualify for an OIC, 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.

In most cases, the IRS won’t accept an OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (RCP).

The RCP is how the IRS measures the taxpayer’s ability to pay. 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.

 

Reasons for the Offer

The IRS may accept an OIC based on three grounds:

• First, the IRS can accept a compromise if there’s doubt as to liability. A compromise meets this only when there’s a genuine dispute as to the existence or amount of the correct tax debt under the law.

• Second, the IRS can accept a compromise if there’s doubt that the amount owed is fully collectible. 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.

• Third, the IRS can accept a compromise based on effective tax administration.

An offer may be accepted based on effective tax administration when there’s 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.

 

Forms to Use

When submitting an OIC based on doubt as to collectibility or effective tax administration, taxpayers must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (OIC), 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). Form 656 and referenced collection information statements are available in the Offer in Compromise Booklet, Form 656-B (PDF).

 

Application Fee

In general, a taxpayer must submit a $186 application fee with the Form 656. Don’t combine this fee with any other tax payments.

However, there are two exceptions to this requirement:

• First, no application fee is required if the OIC is based on doubt as to liability.

• Second, the fee isn’t 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 1 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 1 of Form 656 and check the certification box.

Payment Options

Lump Sum Cash Offer –

Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. A “lump sum cash offer” is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum cash 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 $186 application fee.

The 20 percent payment is nonrefundable, meaning it won’t be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.

Instead, the 20 percent payment 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 payment.

 

Periodic Payment Offer –

An offer is called a “periodic payment offer” under the tax law if it’s 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 $186 application fee.

This amount is nonrefundable, just like the 20 percent payment required for a lump sum cash 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.

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.

Upon acceptance of an OIC, the taxpayer may no longer designate offer payments to any tax liability specifically covered in the offer agreement.

 

Suspension of Collection

Ordinarily, 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.

 

Offer Terms

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 doesn’t 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 (less payments made), 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.

 

Right to Appeal

If the IRS rejects an OIC, 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.

 

Return of an Offer

In some cases, an OIC is returned to the taxpayer rather than rejected, because the taxpayer didn’t submit necessary information, filed for bankruptcy, failed to include a required application fee or nonrefundable payment with the offer, hasn’t filed required tax returns, or hasn’t paid current tax liabilities at the time the IRS is considering the offer.

A returned offer is different from a rejection because there’s no right to appeal when the IRS returns the offer. However, once current, the offer may be submitted again.

IRS Payroll Tax Problems + Former Agents Can Resolve + MIAMI, DADE COUNTY

Fresh Start Tax

 

We have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the South Florida Internal Revenue Service.

 

I am a former IRS Agent and teaching instructor of the Offer Program when formerly employed at the IRS.

We know all the systems, settlement formulas and all the methodology to get you affordable IRS tax debt relief including trust fund debt problem.

 

Call us today to get a free review AND ASSESSMENT OF YOUR CASE. We are experts in payroll tax cases.

 

Hear the truth from Former IRS Agents who have worked thousands of cases.

Settlements can be in the form of hardships, payment plans and excepted settlements.

Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on payroll taxes than any other taxes.

The reason for this is very simple, this tax is money held in trust in not an actual tax.

As a former IRS agent I can tell you that on a quarterly basis, federal tax deposit alerts were sent to the field in our area into which we work. Because the Internal Revenue Service pays out any W-2s submitted by employee you must expect the IRS to be tough on back payroll taxes.

It is one of few taxes that the Internal Revenue Service not only go after the company it can in addition can go after the responsible persons or individuals.

After the IRS creates individual tax assessment for those responsible it often time results in the filing of federal tax liens, bank and wage levy garnishments.

This is a tax that you should not fool around with because it is number one on the IRS to hit list. The Internal Revenue Service will individually engage those responsible under section 6672 of the Internal Revenue Code

Let Former IRS agents and managers get you immediate tax relief via a payroll tax settlement.

 

Settlements, Offer in Compromise + Make sure you are eligible + Check with us first.

Before IRS will consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding.

Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.

To Submit your offer

Your completed offer package will include:

• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;

• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;

• $186 application fee (non-refundable); and

• Initial payment (non-refundable) for each Form 656.

Select a payment option

Your initial payment will vary based on your offer and the payment option you choose:

• Lump Sum Cash:

Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.

• Periodic Payment:

Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.

If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package fo

We should be able to make sure we can reach a reasonable settlement on your payroll tax liability and you can continue to operate your business without fear and worry from the Internal Revenue Service.

With over 60 years of direct working experience at the Internal Revenue Service we know every possible tax solution that can get you immediate and permanent tax relief for a payroll tax settlement.

IRS does not want to seize your business for back taxes due on payroll taxes, however 941 payroll taxes are a big concern for the IRS.

The Process of receiving a Payroll Tax Debt Settlement

 

The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement.

You will need to provide IRS with the current financial statement along with proof that all payroll tax deposits and 941 tax forms have been filed.

Many times IRS will want a personal or individual financial statement for more responsible persons. For most company’s of the IRS payroll tax settlement may come in three forms.

Review your current financial statement Internal Revenue Service may determine that you are a hardship candidate, monthly payment agreement candidate or an offer in compromise candidate and IRS payroll settlement.

Why have Fresh Start Tax contact the IRS:

You never have to talk with the Internal Revenue Service on these tax matters;
Fresh Start Tax knows what the IRS is looking for;
Fresh Start Tax knows the exact packaging required;
Fresh Start Tax knows the next steps the IRS will take;
You know your case will be handled and resolved as fast as possible.

Other Factors To Consider

IRS has the right to sell your complete inventory at public auction;
IRS can seize all your accounts receivables;
IRS can hold you personally responsible for this tax;
IRS has the right to lock the doors of your business.

Steps to take to work out an affordable payment plan with the Internal Revenue Service:

Immediately stay current on all payroll tax deposits to show the IRS good faith;
Be prepared to give the IRS a current financial statement;
Make sure your personal tax liabilities are filed and paid;
Have all documentation on the financial statement prepared for the IRS.

If you do not pay your Payroll Taxes IRS can collect them from you individually
To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.( trust fund recovery penalty )

These payroll taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.

The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business.

The business does not have to have stopped operating in order for the TFRP to be assessed

BE CAREFUL Who Can Be Responsible for the TFRP

The TFRP may be assessed against any person who:

Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and

Willfully fails to collect or pay them.

A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes. This person may be:

An officer or an employee of a corporation,

A member or employee of a partnership,

A corporate director or shareholder,

A member of a board of trustees of a nonprofit organization,

Another person with authority and control over funds to direct their disbursement,

Another corporation or third-party payer,

Payroll Service Providers (PSP) ore responsible parties within a PSP

Professional Employer Organizations (PEO) or responsible parties within a PEO, or

Responsible parties within the common law employer (client of PSP/PEO).

For wilfulness to exist, the responsible person:

Must have been, or should have been, aware of the outstanding taxes and either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).

Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness. You will be asked to complete an interview in order to determine the full scope of your duties and responsibilities.

Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.

An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.

Figuring the Trust Fund Amount

The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:

The unpaid income taxes withheld, plus

The employee’s portion of the withheld FICA taxes. For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.

Assessing the TFRP. If the IRS determines that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you. You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal.

The letter will explain your appeal rights. Refer to Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don’t Agree (PDF), for a clear outline of the appeals process. If you do not respond to our letter, we will assess the penalty against you and send you a Notice and Demand for Payment.

Once we assert the penalty, the IRS can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.

Payroll IRS Tax Problems + Ft.Lauderdale + Former Agents

Fresh Start Tax

We have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the South Florida Internal Revenue Service.  End your back payroll tax problem today.

 

 I am a former IRS Agent and teaching instructor of the Offer Program when formerly employed at the IRS.

We know all the systems, settlement formulas and all the methodology to get you affordable IRS tax debt relief including trust fund debt problem.

Call us today to get a free review AND ASSESSMENT OF YOUR CASE.

 

Hear the truth from Former IRS Agents who have worked thousands of cases.

Settlements can be in the form of hardships, payment plans and excepted settlements.

Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on payroll taxes than any other taxes.

The reason for this is very simple, this tax is money held in trust in not an actual tax.

As a former IRS agent I can tell you that on a quarterly basis, federal tax deposit alerts were sent to the field  in our area  into which we work. Because the Internal Revenue Service pays out any W-2s submitted by employee you must expect the IRS to be tough on back payroll taxes.

It is one of few taxes that the Internal Revenue Service not only go after the company it can in addition can go after the responsible persons or individuals.

After the IRS creates individual tax assessment for those responsible it often time results in the filing of federal tax liens, bank and wage levy garnishments.

This is a tax that you should not fool around with because it is number one on the IRS to hit list. The Internal Revenue Service will individually engage those responsible under section 6672 of the Internal Revenue Code

Let Former IRS agents and managers get you immediate tax relief via a payroll tax settlement.

 

Settlements, Offer in Compromise + Make sure you are eligible + Check with us first.

Before IRS will consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding.

Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.

 

To  Submit your offer

Your completed offer package will include:

• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;

• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;

• $186 application fee (non-refundable); and

• Initial payment (non-refundable) for each Form 656.

 

Select a payment option

Your initial payment will vary based on your offer and the payment option you choose:

 

• Lump Sum Cash:

Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.

 

• Periodic Payment:

Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.

If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package fo

We should be able to make sure we can reach a reasonable settlement on your payroll tax liability and you can continue to operate your business without fear and worry from the Internal Revenue Service.

With over 60 years of direct working experience at the Internal Revenue Service we know every possible tax solution that can get you immediate and permanent tax relief for a payroll tax settlement.

IRS does not want to seize your business for back taxes due on payroll taxes, however 941 payroll taxes are a big concern for the IRS.

 

The Process of receiving a Payroll Tax Debt Settlement

The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement.

You will need to provide IRS with the current financial statement along with proof that all payroll tax deposits and 941 tax forms have been filed.

Many times IRS will want a personal or individual financial statement for more responsible persons. For most company’s of the IRS payroll tax settlement may come in three forms.

Review your current financial statement Internal Revenue Service may determine that you are a hardship candidate, monthly payment agreement candidate or an offer in compromise candidate and IRS payroll settlement.

 

Why have Fresh Start Tax contact the IRS:

You never have to talk with the Internal Revenue Service on these tax matters;
Fresh Start Tax knows what the IRS is looking for;
Fresh Start Tax knows the exact packaging required;
Fresh Start Tax knows the next steps the IRS will take;
You know your case will be handled and resolved as fast as possible.

 

Other Factors To Consider

IRS has the right to sell your complete inventory at public auction;
IRS can seize all your accounts receivables;
IRS can hold you personally responsible for this tax;
IRS has the right to lock the doors of your business.

 

Steps to take to work out an affordable payment plan with the Internal Revenue Service:

Immediately stay current on all payroll tax deposits to show the IRS good faith;
Be prepared to give the IRS a current financial statement;
Make sure your personal tax liabilities are filed and paid;
Have all documentation on the financial statement prepared for the IRS.

If you do not pay your Payroll Taxes IRS can collect them from you individually
To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.( trust fund recovery penalty )

These payroll taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.

The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business.

The business does not have to have stopped operating in order for the TFRP to be assessed

 

BE CAREFUL Who Can Be Responsible for the TFRP

The TFRP may be assessed against any person who:

Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and

Willfully fails to collect or pay them.

A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes. This person may be:

An officer or an employee of a corporation,

A member or employee of a partnership,

A corporate director or shareholder,

A member of a board of trustees of a nonprofit organization,

Another person with authority and control over funds to direct their disbursement,

Another corporation or third-party payer,

Payroll Service Providers (PSP) ore responsible parties within a PSP

Professional Employer Organizations (PEO) or responsible parties within a PEO, or

Responsible parties within the common law employer (client of PSP/PEO).

For wilfulness to exist, the responsible person:

Must have been, or should have been, aware of the outstanding taxes and either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).

Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness. You will be asked to complete an interview in order to determine the full scope of your duties and responsibilities.

Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.

An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.

 

Figuring the Trust Fund Amount

The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:

The unpaid income taxes withheld, plus

The employee’s portion of the withheld FICA taxes. For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.

Assessing the TFRP. If the IRS determines that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you. You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal.

The letter will explain your appeal rights. Refer to Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don’t Agree (PDF), for a clear outline of the appeals process. If you do not respond to our letter, we will assess the penalty against you and send you a Notice and Demand for Payment.

Once we assert the penalty, the IRS can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.

 

IRS Help + Ft.Lauderdale + Tax Representation by Former Agents

 

 

Michael Sullivan Fresh Start Tax Expert

We are affordable tax firm that can resolve any IRS tax debt or tax filing problem. Local Experts in IRS Tax Debt Relief. Since 1982.  A plus Rated BBB.

 

We have been in the tax resolution industry for a long time and there are many companies that exist today and have no business in this tax resolution vertical.

They charge large fees and give the work to back-end companies parties and the work never gets done.

There are many of these scam artists are around so I would caution everybody to make sure you check out the company, the credentials and ask to speak to the person who will be working your case.

While there are a plethora of many good tax firms, check the Better Business Bureau ratings and find out how long the company has existed and find out the complaint history of the company.

Make sure when you are hiring a company for IRS tax debt relief there’s a professional person who has a license to practice before the Internal Revenue Service.

You can call us today for a free initial tax consultation and we can give you a free assessment on your case.

We have been located right here in South Florida since 1982.

Our Firm

We are true experts on giving you every possible tax debt option to resolve your back IRS tax debt relief.

You can have back tax assistance by former IRS agents that were teaching instructors with the Internal Revenue Service.

As former IRS agents supervisors and teaching instructors we had great value to any taxpayer trying to sort out the different options they have with IRS if you owe back taxes have back tax debt, or have to file back tax returns.

We have over 95 years of direct IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service.

We are one of the most experienced tax firms in the industry and are available for free initial tax consultation.

What we have to say is very important because we understand every possible methodology and settlement that IRS has.

We offer some of the finest IRS tax resolution services to go ahead and fully resolve your IRS tax debt.

You will receive a free assessment with your call.