by Fresh Start Tax | May 2, 2012 | Abatements, Back Taxes, IRS Tax Problem, Tax Help, Tax Lawyer
Do you have IRS Penalties and Interest piling up on your IRS tax bill?
If you want to hire true tax experts and tax professionals call Fresh Start Tax LLC 1-866-700-1040 to speak directly to either a Tax Attorney, CPA ‘s or Former IRS Agents and Managers.
We also have on our staff a former IRS Appeals Agent who has worked hundreds of abatement cases as a IRS Appeals agent.
IRS has tax provisions to get rid of, remove or abate penalties and interest if you have reasonable cause and can prove your claim.
Most taxpayers believe that writing a simple letter to remove IRS Penalties and Interest and poof, IRS be gone with them, however, this process is not so simple.
As a general rule, IRS looks for reasons to NOT accept the request for abatement because they are very lazy and do not want to process claims because it requires to much work. Sad but true.
Having been a former IRS Agent I can tell you this from experience and how other IRS Agents handled their cases. Like in any business some agents were very good and other not so good.
I tell most of my clients to usually expect our cases to go to appeals when fighting IRS penalties and interest. We are true experts in penalty abatement’s.
There is a specific format that the IRS goes through. The claims of abatement to rid yourself of IRS Penalties and Interest must be thorough, detailed and loaded with documentation.
You can look on our web site to examine the process more thoroughly.
Go to Tax Solutions on our home page and click go to Abate IRS Penalties and Interest.
IRS Provisions to get rid of, remove or abate IRS penalties and interest:
The number of electronic filing and payment options increases every year, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both.
The two different penalties you may face are the failure to file and the failure to pay. These are two of the larger penalties.
1. If you do not file by the deadline, you might face a failure-to-file penalty.This is a maximum of 25% if the return is 5 months late. It is critical even of you do not have the money to file a timely tax return.
2. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.
3. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
4. If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes.
5. If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure-to-pay penalty if the remaining balance is paid by the extended due date.
6. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
7. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.
Call us today to see if you qualify for an abatement today. Hear the truth.
by Fresh Start Tax | May 2, 2012 | IRS Notice or Letter, IRS Tax Problem, Tax Lawyer
If you have received a IRS Letter or Tax Notice here is what you need to know concerning the correspondence you have received from the Internal Revenue Service.
First of all never panic and if you need to speak to a former IRS Agents call Fresh Start Tax LLC 1-866-700-1040 and let true tax professionals help you through this situations.
Usually these problems are not as bad as you think.
The IRS sends millions and millions of letters and notices to taxpayers for a variety of reasons. Many of these letters and notices can be dealt with without having to call or visit an IRS office. Many times you can just send correspondence by mail back to the IRS to resolve the dispute.
What you need to know about IRS notices and letters:
1. There are a number of reasons why the IRS might send you a notices or letters. Tax Notices/Letters may request payment, notify you of account changes, or request additional information.
A notice always covers a very specific issue about your tax account or tax return. and always a specific tax year or tax period.
2. Each IRS letter or notice offers specific instructions on what action you need to take. Make sure you call back by the assigned follow up date on the letter.
3. If you receive a correction notice, you should review the correspondence and compare it with the information on your return. Make sure you have back up information to support your finding with the IRS.
4. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise. Follow up and all correspondence and make sure the problem is fully resolved by the IRS.
5. If you do not agree with the correction the IRS made, it is important to respond as requested. You should send a written explanation of why you disagree and include any documents and information you want the IRS to consider along with the bottom tear-off portion of the notice.
You should mail the information to the IRS address shown in the upper left of the notice. Allow at least 30- 45 days for the IRS to response.
6. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right of the notice. Have a copy of your tax return and the correspondence available when you call to help the IRS respond to your inquiry.
7. It is important to keep copies of any correspondence with your records. You cannot email any information to the IRS.
One of the big mistake taxpayers tend to make is to assume the problem is fully resolved.
We at Fresh Start Tax LLC believe it is always best to call the IRS 60 days after you believe the situation should have been resolved and verify that with the IRS.
These matters will not go away until they are removed from the IRS CADE computer.
Remember, if you wind up owing the IRS money and the problem goes unresolved , the IRS will follow up with a Notice of Federal Tax Levy to banks and on wages.
IRS issues over 3.6 million bank levy ( levies ) and wage levy garnishments. The IRS also filed over 900,000 federal tax liens.
Should you need help call us now. On staff, Tax Attorneys and Former IRS Agents.
by Fresh Start Tax | May 1, 2012 | Tax News
Tax Fraud, Identity Theft- What were they thinking?
What could they possibly be thinking? If true, two NFL players could face some serious prison time in the Federal Penitentiary. The stripes they will be seeing will not be the referee’s but the ones they will be wearing and the numbers they will be wearing will be a lot longer.
The two ex-NFL players charged with defrauding the federal government and ID theft are:
1.William Joseph, a University of Miami defensive tackle drafted in the first round by the New York Giants in 2003,
2. Michael Bennett, a University of Wisconsin running back also drafted in the first round by the Minnesota Vikings in 2001.
3. Louis simply, who starred at Miami Jackson High and Syracuse University as a defensive lineman, was signed as a free agent by the New England Patriots in 2004. But he never made the final roster. simply played in 2005 for NFL Europe’s Frankfurt Galaxy.
The Fed’s will be taking no prisoners and will probably make an example of these former NFL players. The IRS, Congress and different government agencies have been cracking down on the over 900,000 cases of tax fraud and fraudulent filings.
I do not expect any mercy to take place. This can bring instant notoriety to the Feds and the implementation of the nationwide program to cut down on this new wave of crime that has effected close to one million persons. With tax fraud and identity theft on a all time high, everyone will be closely watching.
If true, ( alleged only at this time ) I see a plea deal transpiring. The IRS problem will be the least of their worries. Hope they have a good tax attorney.
by Fresh Start Tax | May 1, 2012 | Income Tax Preparation, Tax Help
Tax Tips for Future Tax Planning
You should always be checking with some of the top tax professionals in the industry to make sure your tax return is prepared accurately and that you have all the tax deductions so you can fully optimize all the tax resources available to you.
Call us at Fresh Start Tax LLC 1-866-700-1040 so former IRS Agents can audit proof your income or corporate tax return today.
With that said, these are the top tax tips to prepare to make tax time and tax season much easier.
1. Always important, adjust your withholding.
Right now is a good time to review your withholding and make adjustments for next year, especially if you prefer more money in each paycheck this year.
If you owed at tax time, perhaps you would like next year’s tax payment to be much smaller. This is a good time to change your withholding on your W-4.
You can use the very easy IRS’s Withholding Calculator at www.irs.gov or Publication 919,” How Do I Adjust My Tax Withholding? “
2. Store your return in a safe place. Have a safe back up on disc or in the clouds.
Put your 2011 tax return and supporting documents somewhere secure so you’ll know exactly where to find them and if you receive an IRS notice and need to refer to your return.
Remember, the IRS usually goes back 3 years for tax audits. Make sure you keep all receipts for a minimum of 3 years.
3. Organize your record keeping.
You should establish a central location where everyone in your household can put tax-related records all year long. Anything from a shoebox to a file cabinet works. Just be consistent to avoid a scramble for misplaced mileage logs or charity receipts come tax time. It is much easier to establish a system of filing at the beginning of the year. I know, this is like homework but it makes tax season much easier.
4. Review your paycheck.
Make sure your employer is properly withholding and reporting retirement account contributions, health insurance payments, charitable payroll deductions and other items. These payroll adjustments can make a big difference on your bottom line. Fixing an error in your paycheck now gets you back on track before it becomes a huge hassle. You should have a professional tax preparer review all your documents.
5. Shop for a tax professional early or contact Fresh Start Tax LLC 1-866-700-1040
If you use a tax professional to help you with a strategic plan and make financial decisions throughout the year. You will have more time when you are not up against a deadline or anxious for your refund. Beware of filing fraud.
Choose a tax professional wisely. You are ultimately responsible for the accuracy of your own return regardless of who prepares it.
6. Prepare to itemize deductions.
If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions into 2012 may pay off. An early or extra mortgage payment, per-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings.
See the Schedule A instructions for expenses you can deduct if you’re itemizing and then prepare an approach that works best for you.
7. Strategies about tuition payments or other tax credits if you qualify.
The American Opportunity Tax Credit, which offsets higher education expenses, is set to expire after 2012. It may be beneficial to pay 2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500, before it expires.
8. Keep up with changes during the tax year, mostly tax credits.
Find out about tax law changes, helpful tips and IRS announcements all year by subscribing to IRS Tax Tips through www.irs.gov or IRS2Go, the mobile app from the IRS. The IRS issues tips regularly during summer and tax season.
The IRS emphasizes that each household’s financial circumstances are different so it’s important to fully consider your specific situation and goals before making large financial decisions.
If you have any questions call our tax professionals today and good luck.
