by Fresh Start Tax | Jan 25, 2013 | IRS Tax Audit
IRS Tax Audits – Tax Audit Representation – Former IRS Agent Representation 1-866-700-1040
Call for free tax consultation today.
If you have received an IRS notice or letter that your income tax or your business tax return is to undergo an IRS audit call us today and speak directly to tax attorneys, CPAs, or former IRS agents.
Our professional staff is comprised of former IRS agents, office auditors, revenue agents, former IRS managers, and former IRS appeals agents who have over 60 years of direct work experience at the IRS and the local, district, and regional offices of the Internal Revenue Service.
We can handle and negotiate any tax audit of any size and should you wind up owing any money to IRS we can work out a tax settlement for you.
Do not be afraid of an IRS tax audit.
Our former IRS agents you know all the tax strategies and tax positions of the Internal Revenue Service and we will be able to minimize any difficulties or problems that may arise.
Being former IRS instructors we have trained former IRS agents and therefore know the strategies to get you the best possible results.
So, What is an IRS audit?
An IRS tax audit is a review or examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate. IRS audits about 1% of all tax returns.
The IRS Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail or you can contact our office today and we can go over other details and options with you.
The IRS Tax Audit Selection
Selecting a return for audit does not always suggest that an error has been made. however about 75% of the time changes are made after the tax audit.
Tax Returns, both business and personal are selected using a variety of methods, including:
Random selection and computer screening.
Sometimes returns are selected based solely on a statistical formula.
Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported. These type of tax audits are usually handled through mail correspondence. There are approximately 1.4 million audits handles this way.
Related Tax Audit Examinations.
Tax returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit. Generally if a revenue agent from the Internal Revenue Service is auditing a company’s tax return they will many times find personal adjustments that have to be made on returns.
IRS Tax Audit Methods
An audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit).
The IRS Agent, group or mail correspondence office will tell you what records are needed. Tax Audits can result in no changes or changes. Any proposed changes to your return will be explained by follow-up letters and notices.
Audit Notification
Should your tax return be selected for a tax audit, you will be notified in two ways:
1. By mail or,
2. By telephone
In the case of a telephone contact, the IRS will ALWAYS send a letter confirming the audit.
E-mail notification is not used by the IRS.
Should you ever get an email notification regarding a tax audit we can tell you definitively this is a tax scam and should be reported to Internal Revenue Service
Your Rights During an IRS Tax Audit
Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
These tax audit rights include:
a. A right to professional and courteous treatment by IRS employees.
b. A right to privacy and confidentiality about tax matters.
c. A right to know why the IRS is asking for information, how the IRS will use it and what d. will happen if the requested information is not provided.
e. A right to representation, by oneself or an authorized representative.
f. A right to appeal disagreements, both within the IRS and before the courts.
IRS Tax Audit Length
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings. Office audits usually last about a month and tax audits from revenue agents can last anywhere from two months to two years depending on the complexity of the case.
Tax Records that may be Needed
IRS will provide with a written request for specific documents needed. IRS also reserves the right to make other documents available as it’s going through the tax audit.
The law requires you to retain records used to prepare your return.
Length of time tax record need to be kept
Generally, tax records should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records.
If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records.
Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
IRS Tax Audit Determinations
An audit can be concluded in three ways:
1. No change. An audit in which you have substantiated all of the items being reviewed and results in no changes.
2. Agreed. A tax audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
3. Disagreed. An audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
AGREE With The Audit Findings
If you agree with the IRS audit findings, you will be asked to sign the examination report or a similar form depending upon the type of audit conducted.
If money is owed
If money is owed, there are several payment options available. Publication 594, The IRS Collection process, explains the collection process in detail.
As a general rule IRS will ask for a financial statement before determinations are made of how paying back taxes are determined.
IRS will ask for a current financial statement with complete documentation. As a general rule IRS will either put your case in an economic tax hardship, ask for an installment agreement, or may recommend or consider you for an offer in compromise.
Once again your current financial statement will dictate the closing method that IRS will use.
DISAGREE with the Audit Findings
A conference with a manager may be requested for further review of the issue or issues. In addition, Fast Track Mediation or an Appeal request may be filed.
IRS Tax Audits – Tax Audit Representation – Former IRS Agent Expert Representation
by Fresh Start Tax | Jan 25, 2013 | Income Tax Preparation
Income Tax Problems – Tax Solutions, Settlements, Former IRS Agents and Tax Experts 1-866-700-1040
If you are having any IRS income tax problems and are looking for the best available options to resolve your problem contact us today for free tax consultation.
You will speak directly to a Tax Attorney, CPA, or a Former IRS agent.
We are A+ rated by the Better Business Bureau.
We have over 206 years of professional tax experience and over 60 years direct working experience and knowledge of the Internal Revenue Service.
We worked out of the local, district, and regional offices of the Internal Revenue Service.
Income tax problems can come in various forms.
If you received an IRS bill, notice and need resolution we can offer the assistance you need so this does not become a worry or bother in your life. We have worked thousands of cases since 1982 and we know every available option that IRS has to make this a painless event in your life.
You need to make sure you answer all IRS letters, notices, or bills because IRS will use stepped up enforcement procedures if you do not deal with the current situation.
As a former IRS agent I will tell you from direct firsthand experience, that people that go ahead and contact IRS first have the greater chance of immediate resolution.
IRS Audit Letters or Notices
If you’ve received an IRS audit letter , you should know that we have several professional staff at our offices that have worked in the position of IRS agents, IRS managers, and former IRS instructors at Internal Revenue Service that can help negotiate any tax audit that you may have.
Owe Money to the IRS.
If you owe money to the Internal Revenue Service there are three basic options you have settling the case. After IRS receives a current financial statement with documentation IRS will either put your case and to into a tax hardship, installment agreement, or consider you for the filing of an offer compromise or IRS tax settlement.
Have not filed Back Income Tax Returns?
If you have not filed back income tax returns we can go ahead and pull IRS transcripts and reconstruct all your tax returns from little or no records.
Do not be afraid to file back tax returns because you not have the money to pay IRS.
Millions of taxpayers are in this position and sooner or later you are will have to file these back tax returns so without question start today on that process.
As a general rule IRS will ask that you filed the last six years to make sure your current in the tax year that you are in.
Fresh Start Tax L.L.C. is one of the premier tax resolution firms in the country. We deal with all types of civil cases including individuals, businesses, non-profits, partnerships and corporations.
We have staff that specialize in every facet of IRS Tax Representation.
We know all the IRS tax strategies because of our extensive IRS working backgrounds. We were Former IRS Certified Tax Instructors that taught IRS Tax Law in the IRS Regional Training Center. Some of our many specialties include the following:
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
- Income Tax Problems
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.
- Highest Rating by the Better Business Bureau “A”
- 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
Income Tax Problems – Tax Solutions, Settlements Former IRS
by Fresh Start Tax | Jan 24, 2013 | Tax Help
Tax Levy on a Paycheck – Get IRS Tax Levy Released Now 1-866-700-1040
Have Former IRS agents and managers get your money back!
If the IRS has sent a tax levy on your paycheck call us today and find out how you can get your wage levy released.
We are comprised of Attorneys, CPAs, and former IRS agents, managers and instructors that have over 60 years of direct working experience with the Internal Revenue Service.
We can explain the complete process to you, get your tax levy released and work out a tax settlement with the Internal Revenue Service.
Tax or wage levies can usually be released by your next paycheck so do not be worried nor be bullied by the Internal Revenue Service.
IRS Tax Levy protocol
An individual taxpayers wages, salary, and other income can be levied.
Wages, salary, and other income also include payment for personal services in a work relationship. IRS can also go ahead and levy be your bank account as well.
If a Employer Threatens to Fire Taxpayer Because of a Levy
Sometimes an employer threatens to fire an employee to avoid handling a IRS Tax Levy. This might be a violation of 15 USC 1674. You can call us for more detail.
If the employer fires the taxpayer because of this, the employer might be fined not more than $1000 or imprisoned for not more than one year, or both. These cases are far a few between however is a good warning for an employer who thinks about threatening his employee with termination.
If this is the situation with you you will have to refer the taxpayer s employer to the Wage and Hour Division of the Department of Labor (DOL).
DOL, not IRS, must decide if the employer violated the law.
Continuous Effect of Levy on Salary and Wages
A levy on a taxpayer’s wages and salary has a continuous effect.
It attaches to all future payments, until the IRS tax levy is released. Wages and salary include fees, bonuses, commissions, and similar items.
All other tax levies only attach to property and rights to property that exist when the levy is served.
Tax levies on bank accounts
If a bank account is levied, it only reaches money in the account when the levy is served. It does not reach money deposited later. therefore the levy is only good at the time place and date of service. The bank account is frozen but still active.
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
Exempt amounts
IRS is restricted by law from taking the entire paycheck. Exempt amounts will be taken into consideration.
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
Court ordered child support
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
If support is allowed, the same child can not be claimed as an exemption for figuring the exempt amount.
Do not be bullied by the IRS. Get your levy released and settle your case. Call today can find out more on how to get immediate results. 1-866-700-1040.
Tax Levy on a Paycheck – Get IRS Tax Levy Released Now
by Fresh Start Tax | Jan 23, 2013 | Tax Lien
Stop the Filing of a Federal Tax Lien – IRS Policy 5-47 P
policy
Call us today and learn how you can Stop the filing of the federal tax lien. 1-866-700-1040.
The IRS filed close to 1 million federal tax liens last year literally destroying the financial lives of those taxpayers. IRS has a policy regarding the filing of those federal tax liens and for taxpayers who have had a lien filed against him is best to find out whether IRS violated any procedures through this process.
IRS Policy Statement 5-47
Notices of Federal Tax Lien generally filed only after a taxpayer is contacted in person, by telephone or by notice:.
A notice of Federal Tax Lien shall NOT be filed, except in jeopardy assessment cases, until reasonable efforts have been made to contact the taxpayer.
Those contact points can be:
1.in person,
2. by telephone,
3. or by a notice sent by mail,
4.delivered in person or left at the taxpayer’s last known address, to afford him/her the opportunity to make payment.
IRS should have all pertinent facts and should carefully consider the filing of the notice of lien may adversely affect the taxpayer’s ability to pay and thereby hamper or retard the collection process.
The truth be told, IRS does a very poor job in their attempts to contact taxpayers. Once the lien letter is sent out to the taxpayer and letter goes ignored the IRS’s computerized system automatically files the federal tax lien..
That’s why it is critical when you receive IRS notices, letters , or bills that you contact IRS so you can stop the notice of Federal tax Lien filing. Taxpayers who fail to contact the IRS will be in jeopardy of having their credit ruined by the filing of the federal tax lien.
I cannot stress enough how important it is to contact IRS while you are in your billing cycle.
How to reverse the process – Collection due process procedures
CDP procedures are available to you if you’ve received any one of the following notices:
Notice of Federal Tax Lien or a Notice of Federal Tax Levy
Should the IRS file a federal tax lien there is a procedure that is available all taxpayers for IRS to reverse the process of the filing of the federal tax lien.
CDP Procedure
You have 30 days to request a hearing to preserve your right to go to Court.
Complete Form 12153, Request for a Collection Due Process or Equivalent Hearing
It is important you identify all your reasons for your disagreements.
The completed Form 12153 should be sent to the same address that is shown on your Lien or Levy Notice.
If your request is not received within 30 days, you are still entitled to an Appeals hearing. However, if you still disagree with the Appeals determination you.
If a Federal Tax Lien is already filed there are ways to get the Lien Released
1. Make sure you truly owe the tax and that the assessed tax is the correct amount.
Do not always assume that what the IRS says you owe is correct. Compare your tax records with the actual IRS notice. If you did not file your own tax return, the IRS may have filed a substitute for return, called a SFR.
The amount the IRS assesses is on the SRF’s are much higher because they only give you the standard deductions.
When this happens, complete a correct tax return and send it to:
IRS
Fresno Campus ASFR
Unit Stop 81304
PO Box 24015
Fresno, California 93779
This unit of the IRS processes the tax return now filed by the taxpayer.
In the filing of the new tax return, send a cover letter asking for a ” tax reconsideration”. This could take up to 3-5 months.
2. Pay the tax in full as soon as possible.
This is the quickest way to release the Federal Tax Lien. If you pay with a cashier’s check, the IRS will immediately release the Federal Tax Lien if you walk into a local office.
Make sure you get a copy of the federal tax lien release and find out when the IRS will send a copy to your local courthouse. You will also want to check with all the credit agencies within 30 days to make sure they posted the satisfaction of release of the federal tax lien on your credit report. Remember there are three major credit reporting agencies and you want to check all three of them.
3. File an Offer in Compromise under Doubt as to Collect Ability.
Pay off the terms of the Offer in Compromise and the IRS must release the Federal Tax Lien once the Offer is paid in full and all the terms are met.
4. Find out if the statute of limitations has expired on the tax years involved.
The IRS has a 10 year period of time in which they must collect the taxes. ( there are exception s to the 10 years, so ask us for details)
The 10 year period starts when the IRS makes on assessment on the IRS computer. This is usually 6 weeks after the returns are filed. If the statute period has expired, the lien is automatically released by statute, but a release will not be sent out by the IRS. You will have to formally ask them for a copy of the release.
If you want a hard copy of the release of federal tax lien after the statute has expired, fax your request to:
IRS Centralized Lien Releases
Fax # 859-669-3805
5. Apply for a surety bond.
The cost of the bond is very expensive, but the IRS will release the Federal Tax Lien once the bond is given to them. A bond is usually as much as the payoff of the federal tax lien. For certain taxpayers this may be the way to go especially those in the construction industry.
6. Do not let the Federal Tax Lien be filed in the first place. When the Notice of Intent of Filing is sent to you, call the IRS and ask for a hearing. This will at least delay the possible filing of the Federal Tax Lien. You may give them reasons why the filing of the lien should not take place.
7. If there are special circumstances that would cause a hardship because of the filing of the Federal Tax Lien, let the IRS know of the situation
IRS Hardship situations can change the circumstances of most cases. The IRS will give due consideration for certain conditions.
8. Contact the Taxpayer’s Advocates Office if you believe there is something wrong with the filing and you want the IRS to look into the situation.
The Taxpayer’s Advocates Office is there for you. Go to IRS.gov for the nearest office.
9. If you realized you made a mistake on your own tax return and the liability is incorrect, file an amended tax return so the IRS can correct the issuance of the Federal Tax Lien.
As a follow up note, the Federal Tax Lien is very damaging to your credit score. Most lenders will not lend with the presence of the Federal Tax Lien. Do your best never to have the Federal Tax Lien filed.
Stop the Filing of a Federal Tax Lien – IRS Policy 5-47- Former IRS Agents
by Fresh Start Tax | Jan 20, 2013 | Owe Payroll Taxes
Trust Fund Taxes – Owe, Settle, Appeal – Former IRS Agents 1-866-700-1040
Contact us today for free tax consultation and you will speak directly to Tax Attorneys, CPAs, or former IRS agents, managers and/or instructors.
We have over 206 years of professional tax experience in over 60 years working directly with the Internal Revenue Service and the local, district, and regional office of the IRS.
We have worked hundreds upon hundreds of trust fund cases both as former employees of the IRS, and private practice and with one of the highest-rated tax resolution firm’s, Fresh Start Tax LLC
Because our of our vast experience with the Internal Revenue Service we know all the tax codes, tax policies, and tax settlement procedures to go ahead and get you the results on your particular case.
Free Assessments
When you contact us, we will review the facts of your case and give you a free assessment regarding the outcome of your case.
Fresh Start Program
Under the new fresh start program IRS is now accepting offers in compromise that never before would’ve gone through their settlement program. As a general rule because of the new formulas instituted by Internal Revenue Service with this new fresh start program taxpayers are saving up to 75% more than they have done in the past.
Under the current Fresh Start initiative the IRS has incorporated its Streamlined Offer in Compromise process into the overall investigation of offers and has added flexibility to the financial analysis used in evaluating offers.
The Streamlined Offer in Compromise process includes:
a. Fewer requests for additional financial information,
b. If necessary, requests for additional information by phone, not by mail
c. Greater flexibility when considering your ability to pay
The changes to financial analysis add more flexibility to the OIC process including:
1. Greater flexibility in determining the equity in assets,
2.Greater flexibility in determining the allowable living expenses,
3. Reducing the amount of future income included in the offer,
4. Decreased time frame to complete the OIC payment process to two years.
To settle a trust fund case you will need to fill out form 433 OIC which you can find on our website and form 656. If you are questioning the tax assessment completely you will have to fill out tax forms 656-L
If the Internal Revenue Service set up a tax assessment against you as being responsible officer under code section 6672 of the Internal Revenue Code, and you wish to file a claim or appeal on that assessment contact us today as we are true experts in the appellate area of trust fund taxes.
Former IRS Appeal Agent on staff.
On our staff is a former IRS appeals agent who started out as a revenue agent and for the next 25 years worked in the appeals function of Internal Revenue Service working hundreds and hundreds of trust fund penalty cases.
Current under Trust Fund Investigation
If you are under current investigation for a trust fund tax penalty IRS is going to be asking you to fill out form 4180 which you can find our website. As a former IRS agent I would caution you to be extremely careful in giving IRS any answers to form 4180 without professional tax advice. there are certain trick questions on that form. If you going to proceed and fill that form out by yourself my advice to you is this:
“If you are not sure of any answer any question is in your best interest to always write unknown.”
Most TFRP cases involve officers of corporations. However, a responsible person may be one or more of the following:
1. an officer or employee of a corporation
2. a member or employee of a partnership
3. a corporate director or shareholder
4. a related controlling corporation
5. Payroll Service Provider (PSP)
How IRS determines who is responsible for the trust fund penalty.
1. Who directed or authorized payments of bills to creditors,
2. Who had the right to open and close bank accounts for the business,
3. Good guarantee or cosign loans for the business,
4. Who signed or could cosign checks,
5. Who authorized payroll, who is authorized to make federal tax deposits.
6. Who filled out payroll tax form 941,
7. Who prepared reviewed or signed or transmitted payroll tax returns to the IRS or to the accountant,
8. Who had the right to hire or fire employees,
9. Who made sure other bills were paid other than the IRS,
1o. If you were to ask the employees of the company who in fact ran the business who would they point to,
11. Who ran day-to-day operations of the business.
You will find most of these questions on form 4180 that every revenue officer is instructed to be in their file before any trust fund case is closed. you can call me today and I can give you much more insight into trust fund cases.
While this is not an all-encompassing list of who is responsible for the trust fund taxes of a company or corporation, this would give the revenue officer out the local office of a good idea to look.
Trust Fund Taxes – Owe, Settle, Appeal – Former IRS Agents
