by Fresh Start Tax | Nov 28, 2012 | New Jersey Tax, Offer in Compromise, Tax Settlements
Offer in Compromise – Settle IRS Tax Debt – Former IRS Agent, Tax Lawyers
Upper Montclair, Cedar Grove, West Orange, Ridgewood, Mendham, Franklin Lakes, Newark, Bernardsville – New Jersey
Have Former IRS Agents, Managers and Instructors who worked and taught the Offer in Compromise Program at the IRS settle your IRS Tax Debt.
Settle for the lowest amount allowed by Law.
We have worked hundreds of case and know the exact formulas of the Internal Revenue Service. Over 60 years of combined IRS tax experience.
We taught Tax Law to new IRS agents and know the exact policies of settlement structures.
You can call us today, 1-866-700-1040 for a no cost consult and let us review your information to see if you are a Offer in Compromise candidate.
The IRS Offer In Compromise/ Settle with the IRS
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 of the taxes that are owed.
If the tax liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
General Rule of thumb.
You must at least offer IRS all the equity you have in your total assets. IRS will not expect a offer unless your total value of assets to the IRS. Equity is consider a discounted fair market value.
Assets also included home value, IRA’s and Pension Plans
Call us for more details. 1-866-700-1040
In most cases, 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.
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.
First, acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is collectible.
This means that doubt exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third, acceptance is permitted based on effective tax administration or exceptional circumstances.
An offer may be accepted based on effective tax administration when there is no doubt 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.
The Process
While your offer in compromise is being evaluated by the IRS:
1. Your non-refundable payments and fees will be applied to the tax liability,
2. A Notice of Federal Tax Lien may be filed if the IRS feels the offer is frivolous,
3. Other collection activities may and are suspended,
4. The legal IRS tax assessment and collection period is extended for the time in offer status,
5. You need to make all required IRS tax payments associated with your offer in compromise,
6. You are not required to make payments on an existing installment agreement; and
7. Your offer in compromise is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Offer in Compromise – Settle IRS Tax Debt – Former IRS Agent, Tax Lawyers 1-866-700-1040
by Fresh Start Tax | Nov 28, 2012 | IRS Tax Problem
IRS Problem, IRS Tax Relief Help – Former IRS, Tax Attorneys – Upper Montclair, Cedar Grove, West Orange, Ridgewood,
IRS Problem, IRS Tax Relief Help – Former IRS, Tax Attorneys
Fresh Start Tax LLC – New Jersey Offices
209 Cooper Ave,
Upper Montclair, NJ 07043
1-866-700-1040
You can speak directly to Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents. We have over 205 years of professional tax experience and over 60 years working directly for the Internal Revenue Service.
If you are having any IRS Tax issues or IRS Tax Problems and need immediate tax relief help call us today and we can stop the IRS.
IRS wants to close your case.
IRS wants your case out of there collections inventory. they will want you to complete a IRS Financial Statement a 433F or a 433 A and with that can determine a exist strategy.
We have worked thousands of IRS cases. We ill develop game plan for you to resolve your IRS tax issue or tax problem.
We will develop a game plan with our first phone call and stop the IRS on an immediate and permanent basis.
As a side note, you will have to bring all tax returns current.
How Fresh Start Tax LLC will settle, negotiate your case with the Internal Revenue Service and get you tax relief.
1. We immediately will send a power of attorney ( POA ) to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS at anytime during the course of our engagement.
2. We will make sure all your tax returns are filed and current.
If your tax returns are not up to date or tax complaint, the IRS will refuse to work your case.
We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records. We are experts in tax reconstruction.
3. The IRS requires a current financial statement. We will secure a required 433-A or a 433F (IRS financial statement), IRS will then verify the income and expenses and work out a tax settlement agreement and close your case.
The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle or close their case. We get them an agreement based on their current financial needs and look into a look term strategy to permanently resolve them IRS tax problem.
IRS Tax Settlement Agreements can be in different forms or strategies.
a. Hardship Settlements.
If you qualify for a tax hardship,IRS Hardship Cases usually go into a 3 year suspended status because of an inability to pay.
This is also called currently noncollectable or CNC. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship. You can find the National Standards on our site.
b. Payment Agreements, Installment Agreements.
Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible payment amount required by the IRS.
c. IRS Offer in Compromise.
There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectibility.
Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability.
A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
1. the examiner made a mistake interpreting the law,
2. the examiner failed to consider the taxpayer’s evidence or
3. the taxpayer has new evidence.
3. Effective Tax Administration – Exceptional Circumstances
IRS Economic Hardship
When a taxpayers liability can be collected in full but collection would create an economic hardship, an ETA offer based on economic hardship can be considered.
The definition of economic hardship as it applies to ETA offers is derived from Treasury Regulations § 301.6343-1.
IRS Economic hardship occurs when a taxpayer is unable to pay reasonable basic living expenses.
The determination of a reasonable amount for basic living expenses will be made by the Commissioner and will vary according to the unique circumstances of the individual taxpayer.
Unique circumstances, however, do not include the maintenance of an affluent or luxurious standard of living.
Note:
Because economic hardship is defined as the inability to meet reasonable basic living expenses, it applies only to individuals (including sole proprietorship entities). Compromise on economic hardship grounds is not available to corporations, partnerships, or other non-individual entities.
The taxpayers financial information and special circumstances must be examined to determine if they qualify for an ETA offer based on economic hardship.
An IRS financial analysis includes reviewing basic living expenses as well as other considerations.
The taxpayers income and basic living expenses must be considered to determine if the claim for economic hardship should be accepted. IRS have certain applied standards that it will use.
Basic living expenses are those expenses that provide for health, welfare, and production of income of the taxpayer and the taxpayer’s family.
National and local standard expense amounts are designed to provide accuracy and consistency in determining taxpayer’s basic living expenses.You can find those on our website.
These standards are guidelines and if it is determined that a standard amount is inadequate to provide for a specific taxpayer’s basic living expenses, allow a deviation. Require the taxpayer to provide reasonable substantiation and document the case file.
In addition to the basic living expenses, other factors the IRS will to consider that impact upon the taxpayers financial condition include:
1. The taxpayers age and employment status,
2.Number, age, medical issues and health of the taxpayers dependents,
3.Cost of living in the area the taxpayer resides and
Any extraordinary circumstances such as special education expenses, a medical catastrophe, or natural disaster.
IRS Problem, IRS Tax Relief Help – Former IRS, Tax Attorneys – Upper Montclair, Cedar Grove, West Orange, Ridgewood,
by Fresh Start Tax | Nov 28, 2012 | Back Taxes
IRS can prepare your Back, Late Tax Returns – This is Bad News – We can STOP IRS, Former IRS Agents
We are comprised of Attorneys, Lawyers, Former IRS agents who know the system and can provide you tax solutions and remedies for your IRS tax issues.
We have over 60 years of direct IRS work experience in the local, district and regional offices of the IRS. 1-866-700-1040.
Most taxpayers have no idea that the IRS can prepare your tax returns and the IRS is a terrible preparer of back or late tax returns. You will be ripped off.
The IRS can do a substitute for Return or a SFR to prepare back or late tax returns.
They will do you not favors and they will make sure you pay the highest amount of tax possible allowed by Law.
You can stop this process by calling us directly. We can explain the process and lower your tax bill. IRS will immediately reduce your tax bill to the fair and correct amount.
You can ask for a Tax Reconsideration Hearing
If this has happened to you, you have the right to ask IRS for a tax reconsideration by filing a correct original tax return. These reconsideration cases are reworked and reviewed by the Fresno IRS Campus.
If this has happened to you call us today and should be able to greatly reduce your IRS tax bill on your back or late filed tax returns.
Rule of Law and the right for the IRS to prepare your back or late tax returns.
If the taxpayer will consent to disclose all information necessary for the preparation of the return(s), IRC 6020(a) states, “… the Secretary may prepare such return, which, being signed by such person, may be received by the Secretary as the return of such person.”
This does not include the taxpayer signing a waiver of restriction on assessment (e.g., Form 4549, Income Tax Examination Changes, or Form 870, Waiver of Restrictions on Assessment & Collection of Deficiency in Tax & Acceptance of Over-assessment,) which does not constitute a return under IRC 6020(a).
Delinquency penalties are applicable. See IRM 20.1.2, Failure To File- Failure To Pay Penalties.
IRS can prepare your Back, Late Tax Returns – This is Bad News – We can STOP IRS, Former IRS – Fresh Start Tax LLC
IRM Section – 4.12.1.8.2.1 (10-05-2010)
IRC 6020(b)
IRC 6020(b) states, “If any person fails to make any return required by any Internal Revenue Law or regulation made there under at the time prescribed therefore, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.”
IRC 6020(b)(2) states,
“Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes.” this means the IRS can create a legal tax return and then take the necessary enforcement action such as a tax lien, a tax levy or a garnishment of wages. these notices must be addressed.
This is an SFR or a substitute for return.
See IRM 20.1.2, Failure To File/Failure To Pay Penalties, to determine applicable penalties.
by Fresh Start Tax | Nov 28, 2012 | IRS Tax Audit, Representation
IRS Tax Audit Help & Representation – Former IRS Agents – Florida Keys, Miami, Ft. Lauderdale, Boca, Palm Beaches – IRS Tax Audit Experts 954-492-0088
Stop the worry! We have successfully defended thousands of clients before the IRS. Call us for a no sort consult and speak to true tax professionals.
We are comprised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents, managers and instructors.
We have a combined 60 years of direct IRS experience in the local South Florida Offices.
Also on staff a Former IRS Appeal Agent.
If you have received a IRS Tax audit letter or need a opinion call us today for a no cost tax consult.
As Former IRS Agents and Managers we needed to follow guidelines and audit techniques for all IRS tax audits. Listed below are the methods and techniques that can or may be used on a IRS tax audit.
IRS Audit Methods and techniques.
Methods for accumulating evidence include:
Analytical Tests.
Such as analysis of Balance Sheet items to identify large, unusual, or questionable accounts.
Analytical tests use comparisons and relationships to isolate accounts and transactions that should be further examined or determine that further inquiry is not needed.
Documentation.
such as examining the taxpayer’s books and records to determine the content, accuracy, and substantiate items claimed on the tax return.
Inquiry.
such as interviewing the taxpayer or third parties. Information from independent third parties can confirm or verify the accuracy of information presented by the taxpayer.
Inspection.
such as physically examining the taxpayer’s assets, e.g., inventory or securities.
Observation.
IRS can or will conduct a tour of the taxpayer’s business to observe the taxpayer’s daily business operations.
Testing.
IRS can or will trace transactions to determine if they are correctly recorded and summarized in the taxpayer’s books and records.
Factors IRS will use to consider when choosing an examination technique are:
1.Will the examination technique provide the needed evidence?
2.Will the benefits derived from using a particular technique justify the associated costs to both the examiner and the taxpayer?
3. Are there less expensive alternatives that will provide the same evidence?
The following Examination techniques used to gather IRS tax evidence .
a. Conduct face to face interviews with the taxpayer and or the representative,
b. Make tours of Business Sites and Inspection of Residences,
c. Evaluation of the taxpayer’s internal control systems,
d. Examining the taxpayer’s books and tax records,
e. Analyzing Schedules M–1 and M–2,
f. Bank Record reconciliations,
g.Analysis balance sheets,
h. Testing of gross receipts or sales,
i. Testing of expenses: Cost of goods sold,
j. Testing Expenses: operating expenses.
For Business Tax Returns
IRS uses minimum income probes for individual business tax returns. They are a follows:
1. Financial Status Analysis.
Prepare a financial status analysis to estimate whether reported income is sufficient to support the taxpayer’s financial activities.
2. IRS Interview.
Conduct an interview with the taxpayer (or representative) to gain an understanding of the taxpayer’s financial history, identify sources of nontaxable funds, and establish the amount of currency the taxpayer has on hand.
IRS will consider possible bartering income as part of the minimum income probes.
3. IRS will usually take a tour of business .
Tour the business site and review of the Internet website to gain familiarity with the taxpayer’s operations and internal controls, and identify potential sources of unreported income.
However, a tour of the physical business site is not required for office audit cases but may be conducted if appropriate and with manager approval.
4. Internal Control.
IRS can and will evaluate internal controls to determine the reliability of the books and records (including electronic books and records), identify high risk issues, and determine the depth of the examination of income.
5.IRS will conduct a reconciliation of income.
Reconcile the income reported on the tax return to the taxpayer’s books and records.
An analysis of the IRP information in the file should also be completed to ensure all business and/or investment activities reflected on the IRP document are properly accounted for on the tax return.
6. IRS will do a Testing Gross Receipts.
Test the gross receipts by tying the original source documents to the books.
7. Bank Analysis – Prepare an analysis of the taxpayer’s personal and business bank and financial accounts (including investment accounts) to evaluate the accuracy of gross receipts reported on the tax return.
8. Business Ratios.
Prepare an analysis of business ratios to evaluate the reasonableness of the taxpayer’s business operations and identify issues needing a more thorough examination.
9. E-Commerce and/or Internet Use – Determine if there is Internet use and e-comm.
IRS Tax Audit Help & Representation – Former IRS Agents, Tax Attorneys – Florida Keys, Miami, Ft. Lauderdale, Boca, Palm Beaches – IRS Tax Audit Experts
by Fresh Start Tax | Nov 28, 2012 | IRS Tax Debt, New Jersey Tax, Tax Settlements
IRS Tax Debt Relief – Settle Tax Debt – New Jersey
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents and Managers.
We taught the Offer in Compromise Program at the IRS as former IRS agents.
We have over 206 years of professional tax experience and over 60 years working directly for the IRS in positions as agent, Managers and Appeals Agents. We are A plus rated.
Call us for a no cost professional tax consult and speak directly to a true Tax Professional. 1-866-700-1040.
Fresh Start Tax LLC – New Jersey
209 Cooper Ave,
Upper Montclair, NJ 07043
1-866-700-1040
How does IRS Settle your Tax Debt.
At least one of three conditions must be met to qualify a taxpayer for consideration of an Offer in Compromise or a tax debt settlement:
1. Doubt as to Liability of the Tax.
The taxpayer can show reason for doubt that the assessed tax liability or assessment is incorrect,
2. Doubt as to Collectibility.
The taxpayer can show that the tax debt is likely uncollectible in full by the IRS under any circumstances and wishes to compromise the tax debt.
3. Effective Tax Administration.
The taxpayer does not contest liability or collectibility but can demonstrate extenuating or special circumstances that the collection of the debt would create an economic hardship or would be unfair and inequitable.
This type of Offer in Compromise program is available for any taxpayer, but is primarily used by individuals that are elderly, disabled, have medical issues or have special extenuating circumstances. These are rarely accepted.
Doubt as to Collectibility
Doubt as to collectibility means that the taxpayer will never be able to fully pay the tax bill. The IRS will consider a settlement based on the following formula:
a. Settlement Amount = (monthly disposable income x a number of months) + the net realizable equity in the taxpayer’s assets.
b. Disposable income is monthly income minus allowable monthly expenses. It is important to recognize that the IRS will not allow all expenses the taxpayer may actually have.
With the New Fresh Start Program the IRS is allowing more in the way of necessary expenses.
c. The number of months over which disposable income must be calculated into the offer amount is based on the smaller of the number of months remaining until the Collection Statute Expiration Date for the tax debt OR either 12 or 24 months, depending on the payment option for the Offer in Compromise which the applicant is selecting.
d. Net realizable equity in assets is the quick sale value of the asset (often 80% of Fair Market Value minus any liabilities which are secured by the asset (e.g., a loan).
If a taxpayer believes he or she qualifies, the taxpayer completes a 433 OIC financial statement along with a 656 form to the IRS. At Fresh Start Tax LLC we qualify any offer before submission.
IRS can still proceed with collection.
Some of the actions we may take to collect taxes include:
1. Filing a Notice of Federal Tax Lien
2. Serving a Notice of Levy, or
3. Offsetting a refund to which you are entitled
The federal tax lien is a legal claim to your property, including property that you acquire after the lien arises.
The federal tax lien arises automatically when you fail to pay in full the taxes you owe within ten days after we send our first notice of taxes owed and demand for payment.
The government also may file a Notice of Federal Tax Lien in the public records.
The Notice of Federal Tax Lien publicly notifies your creditors that the IRS has a claim against all your property, including property acquired by you after the Notice of Federal Tax Lien is filed .
The filing of a Notice of Federal Tax Lien may appear on your credit report and may harm your credit rating.
Once a federal tax lien arises, the IRS generally cannot release the lien until the taxes, penalties, interest, and recording fees are paid in full or until the IRS may no longer legally collect the tax.
The IRS may withdraw a Notice of Federal Tax Lien if the IRS determines that
1. the Notice was filed too soon or not according to IRS procedures;
2.you enter into an installment agreement to satisfy the liability unless the installment agreement provides otherwise;
3.withdrawal will allow you to pay your taxes more quickly; or
4.withdrawal is in your best interest, as determined by the National Taxpayer Advocate, and the best interest of the government.
Call us today and hear the truth about your case 1-866-700-1040.
IRS Tax Debt Relief – Settle Tax Debt – Upper Montclair and other cities.
