Filing Late, Delinquent Tax Returns – Back Tax Return Help – Ft.Lauderdale, Miami, Palm Beaches

by Fresh Start Tax | Jul 23, 2013 | Tax Help

We are a local South Florida tax firm that specializes in late filing and delinquent tax returns.
We’ve been practicing in South Florida since 1982 and we are A+ rated by the Better Business Bureau.
We are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS agents, managers and tax instructors.
Being former IRS agents and managers we know the exact processes and protocols to file your late or delinquent tax returns and get you back in the system worry free.
If you need to file back, delinquent or past due tax returns and work out a tax settlement contact us today. All consultations are free and confidential.
Being former IRS agents and managers we can help you through the process and get you back on track.
We are the affordable tax firm.
It is of utmost importance that you file all your delinquent or past due tax returns because the last thing you want to happen is that IRS file your tax return. This will cost you thousands of extra dollars.
IRS will use the highest standard that it can, allow you no deductions or expenses and will proceed with enforced collection action. IRS does not feel sorry for late or delinquent taxpayers.
If the Internal Revenue Service has contacted you with the bill, notice or a telephone call contact us today we will send a power of attorney to the Internal Revenue Service and you’ll never have to speak to them.
Ramifications of not filing back tax returns
It’s important to understand the ramifications of not filing a past due return and the steps that the IRS will take.
Taxpayers who don’t file a past due return or contact the IRS are subject to the following:
1. Penalties and Interest will be assessed and will increase the amount of tax due.
2. The IRS will file a substitute return for you. But this return is based only on information the IRS has from other sources.
Thus, if the IRS prepares this substitute return, it will not include any additional exemptions or expenses you may be entitled to and may overstate your real tax liability.
3. Once the tax is assessed the IRS will start the collection process, which can include placing a levy on wages or bank accounts or filing a federal tax lien against your property.
You will need at some point to file your own tax return to save money  simply because of the exorbitant standards at the IRS will use to prepare your late file tax return.
Even if the IRS has already filed a substitute return, it still makes sense for you to file your own return to make sure you take advantage of all the exemptions, credits, and deductions you are allowed.
The IRS will generally adjust your account to reflect the correct figures. you can call us and ask us about IRS audit reconsideration’s.
How IRS will conduct there investigation
The Internal Revenue Service will conduct a full compliance check which means the IRS will make sure that all filing requirements have been met.
The Internal Revenue Service will make sure that you are current in the year of contact or verify you have making your current estimated payments.
The Internal Revenue Service will want a plan of action to resolve the case.
What is a plan of action that the IRS will expect?
Any time a taxpayer owes the on delinquent or late filed tax returns the Internal Revenue Service will want to know the plan of action of dealing with the back owed taxes.
IRS is looking to close your case off their enforcement computer called the CADE2 and the plan of action is critical.
The Internal Revenue Service will want to know about your income and your assets therefore the Internal Revenue Service will request a current financial statement and you will need to put that on form 433-F  along with all the documentation to support that financial statement.
You can find that form on our website.
IRS will usually make one of three determinations on how they will deal with the back tax debt.
After a full review of your financial statement IRS will determine that you are either:
1. an economic tax hardship,
2. it will insist on a monthly or current payment program plan or
3. IRS may advise you that you are a suitable candidate for an offer in compromise.
 
Specific factors that will be taken into account by IRS include
 
1. Degree of flagrancy.
2. Special need to enforce compliance in a specific area.
3. Whether the delinquency involves trust fund monies collected but not paid over.
 
The process of filing back or unfiled tax returns: Lost or few tax records?
If you have unfiled or delinquent tax returns to file, this process Fresh Start Tax LLC uses to get current with the IRS and get you immediate and permanent tax relief
1. We verbally review a year by year history of your income and expenses.
2. We review any records you may have.
3 We pull all IRS information that they have received from 3rd party sources that have been placed on the IRS computer system over the past 7 years.
4. If you have lost all your records we have easy and simple forms that can help you reconstruct your tax return.
5. We can prepare through years of experience a “reconstructed” tax return that the IRS will accept and process.
6. We review all returns for accuracy with the client and send them into the IRS.
7. We work out a settlement agreement with the IRS to permanent close your tax case.
 
If you file on your own be careful of these Common Mistakes made on filing delinquent or late filed tax returns:
1. Incorrectly Reporting 1099-MISC Income on Your Past Due Returns
A Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee, also referred to as self-employed. You should know this is a very common IRS audit trigger. IRS audits over 1.4 million taxpayers every year who do not correctly report their 1099’s
The form is required, among other things, when payments of $600 or more in non-employee compensation, medical and health care payments, or rents are paid. This form is filed by the payer with the IRS and a copy is sent to the person or business receiving the payment.
Unlike a W-2, there is no federal income tax, Social Security tax or Medicare tax withheld. The person or business receiving the payment is responsible for paying all taxes.
2. Self-employed individuals report their income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or you may qualify to use Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship).
You should also be aware of Form 1040, Schedule SE (PDF), Self-Employment Tax, which must be filed if net earnings from self-employment are $400 or more.
This form is used to figure your Social Security and Medicare tax, which is based on your net self-employment income.
3. Not Reporting Capital Gains/Losses on Past Due Tax Returns
In general, if you had a capital gain or loss, including any capital gain distributions from sales of stock or bonds, you must complete Form 1040 and attach a Schedule D to your tax return.
4. Failing to File a Past Due Return for a Deceased Taxpayer
A personal representative (fiduciary) is responsible for filing certain tax returns for a person who has died, and for the decedent’s estate. The personal representative may be required to file the final income tax return of the decedent and any returns not filed for preceding years, the income tax return for the estate, and the estate tax return.
The final return should have the word: “Deceased,” the decedent’s name, and the date of death written across the top of the return.
Generally, the person who is filing a return for a decedent and claiming a refund must file Form 1310 (PDF), Statement of Person Claiming Refund Due a Deceased Taxpayer, with the return. However, if you are a surviving spouse filing a joint return, or a court appointed or certified personal representative filing an original return for the decedent, you do not have to file Form 1310.
Personal representatives must attach to the return a copy of the court certificate showing the appointment.
5. Not Providing Correct Social Security Numbers for All Dependents
Be sure that all dependents’ Social Security numbers (SSNs) and names match their Social Security identification cards.
If the SSNs do not match, we will disallow the dependents and any related credits, but you will need to call the Social Security Administration at (800) 772-1213 to correct the mistake.
6. Failing to Sign Your Past Due Tax Return.
All returns must be signed. If filing jointly, both taxpayers must sign.
7. Mailing Your Past Due Tax Return to Incorrect Address
Be sure to mail your past due tax return to the IRS address on your notice. Sending your return to another address will delay the processing of your return.
8. Omitting Spouse’s Income on a Jointly Filed Past Due Return
Income from both taxpayers must be included on the return. If you need income information, please call the IRS’ toll-free number at (866) 681-4271.
9. Omitting the 10 Percent Early Distribution Tax on Qualified Retirement Plans
In general, any distribution from your IRA, other qualified retirement plan, or modified endowment contract before you reach age 59½ is an early distribution.
In general, if you receive an early distribution (including an involuntary cash out) from an IRA, other qualified retirement plan, or modified endowment contract, the part of the distribution included in income generally is subject to an additional 10 percent tax.
10. Incorrectly Reporting Rollover Distributions, bad idea!
A rollover is a tax-free distribution of assets from one qualified retirement plan that is reinvested in another plan or the same plan.
Generally, you must complete the rollover within 60 days of receiving the distribution. Any taxable amount not rolled over must be included in income and may be subject to the additional tax on early withdrawals.
Call us today if you have any questions regarding filing late, or delinquent tax returns. You can speak to true IRS tax professionals that can fully resolve your IRS tax problem. We are A+ rated by the Better Business Bureau.
 

Delinquent, Filing Late Tax Returns – Back Tax Return Tax Help

Delinquent, Filing Late Tax Returns – Back Tax Return Tax Help

by Fresh Start Tax | Jul 23, 2013 | Tax Help

If you need to file back, delinquent or past due tax returns and work out a tax settlement contact us today.

 
Being former IRS agents and managers we can help you through the process and get you back on track.
We are the affordable tax firm.
We’ve been practicing since 1982 and we have a A+ rated by the Better Business Bureau.
It is critically important that you file all your delinquent or past due tax returns because the last thing you want to happen is that IRS file your tax return.
IRS will use the highest standard that it can, allow you no deductions or expenses and will  proceed with enforced collection action.
If the Internal Revenue Service has contacted you with the bill, notice or a telephone call contact us today we will send a power of attorney to the Internal Revenue Service and you’ll never have to speak to them.
 

Ramifications of not filing  back tax returns

 
It’s important to understand the ramifications of not filing a past due return and the steps that the IRS will take.
Taxpayers who don’t file a past due return or contact the IRS are subject to the following:
 

•  Penalties and Interest will be assessed and will increase the amount of tax due.

•   The IRS will file a substitute return for you. But this return is based only on information the IRS has from other sources. Thus, if the IRS prepares this substitute return, it will not include any additional exemptions or expenses you may be entitled to and may overstate your real tax liability.

•  Once the tax is assessed the IRS will start the collection process, which can include placing a levy on wages or bank accounts or filing a federal tax lien against your property.

You will need at some point to file your own tax return to save money

 
Even if the IRS has already filed a substitute return, it still makes sense for you to file your own return to make sure you take advantage of all the exemptions, credits, and deductions you are allowed.
The IRS will generally adjust your account to reflect the correct figures. you can call us and ask us about IRS audit reconsideration’s.
 

Upon IRS working the case

The Internal Revenue Service will conduct a full compliance check which means  the IRS will make sure that all filing requirements have been met.
The Internal Revenue Service will make sure that you are current in the year of contact or  verify you have making your current estimated payments.
The Internal Revenue Service will want a plan of action to resolve the case.
 

What is a plan of action?

Any time a taxpayer owes the on delinquent or late filed tax returns  the Internal Revenue Service will want to know the plan of action of dealing with the back owed taxes.
The Internal Revenue Service will request a current financial statement and you will need to put that on form 433-F.
You can find that form on our website.
IRS will usually make one of three determinations on how they will deal with the back tax debt.
After a full review of your financial statement IRS will determine that you are either:

• an economic tax hardship,
• it will insist on a monthly or current payment program plan or
• IRS may advise you that you are a suitable candidate for an offer in compromise.

 
What IRS looks for when working these cases – Specific factors that should be taken into account include:
 

• Degree of flagrancy.

• Special need to enforce compliance in a specific area.

• Whether the delinquency involves trust fund monies collected but not paid over.

Filing Back Tax Returns – The process of filing back or unfiled tax returns: Lost or few tax records 

If you have unfiled tax returns, this process  Fresh Start Tax LLC  uses to get current with the IRS and get you immediate and permanent tax relief

1. We verbally review a year by year history of your income and expenses.

2. We review any records you may have.

3  We pull all IRS information that they have received from 3rd party sources that have been placed on the IRS computer system over the past 7 years.

4. If you have lost all your records we have easy and simple forms that can help you reconstruct your tax return.

5. We can prepare through years of experience  a “reconstructed” tax return that the IRS will accept and process.

6. We review all returns for accuracy with the client and send them into the IRS.

7. We work out a settlement agreement with the IRS to permanent close your tax case.

Common Mistakes made on filing delinquent or late filed tax returns

1. Incorrectly Reporting 1099-MISC Income on Your Past Due Returns

A Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee, also referred to as self-employed.
The form is required, among other things, when payments of $600 or more in non-employee compensation, medical and health care payments, or rents are paid. This form is filed by the payer with the IRS and a copy is sent to the person or business receiving the payment.
Unlike a W-2, there is no federal income tax, Social Security tax or Medicare tax withheld. The person or business receiving the payment is responsible for paying all taxes.
2. Self-employed individuals report their income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or you may qualify to use Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship).
You should also be aware of Form 1040, Schedule SE (PDF), Self-Employment Tax, which must be filed if net earnings from self-employment are $400 or more. This form is used to figure your Social Security and Medicare tax, which is based on your net self-employment income.
3. Not Reporting Capital Gains/Losses on Past Due Tax Returns
In general, if you had a capital gain or loss, including any capital gain distributions from sales of stock or bonds, you must complete Form 1040 and attach a Schedule D to your tax return. Refer to Publication 550, Investment Income and Expenses for more information.
4. Failing to File a Past Due Return for a Deceased Taxpayer
A personal representative (fiduciary) is responsible for filing certain tax returns for a person who has died, and for the decedent’s estate. The personal representative may be required to file the final income tax return of the decedent and any returns not filed for preceding years, the income tax return for the estate, and the estate tax return.
The final return should have the word: “Deceased,” the decedent’s name, and the date of death written across the top of the return.
Generally, the person who is filing a return for a decedent and claiming a refund must file Form 1310 (PDF), Statement of Person Claiming Refund Due a Deceased Taxpayer, with the return. However, if you are a surviving spouse filing a joint return, or a court appointed or certified personal representative filing an original return for the decedent, you do not have to file Form 1310.
Personal representatives must attach to the return a copy of the court certificate showing the appointment.
5. Not Providing Correct Social Security Numbers for All Dependents
Be sure that all dependents’ Social Security numbers (SSNs) and names match their Social Security identification cards.  If the SSNs do not match, we will disallow the dependents and any related credits, but you will need to call the Social Security Administration at (800) 772-1213 to correct the mistake.
6.Failing to Sign Your Past Due Tax Return, this is a big one!!!
All returns must be signed. If filing jointly, both taxpayers must sign.
7. Mailing Your Past Due Tax Return to Incorrect Address
Be sure to mail your past due tax return to the IRS address on your notice.  Sending your return to another address will delay the processing of your return.
8. Omitting Spouse’s Income on a Jointly Filed Past Due Return
Income from both taxpayers must be included on the return. If you need income information, please call the IRS’ toll-free number at (866) 681-4271.
9. Omitting the 10 Percent Early Distribution Tax on Qualified Retirement Plans
In general, any distribution from your IRA, other qualified retirement plan, or modified endowment contract before you reach age 59½ is an early distribution. In general, if you receive an early distribution (including an involuntary cash out) from an IRA, other qualified retirement plan, or modified endowment contract, the part of the distribution included in income generally is subject to an additional 10 percent tax.
10. Incorrectly Reporting Rollover Distributions
A rollover is a tax-free distribution of assets from one qualified retirement plan that is reinvested in another plan or the same plan.
Generally, you must complete the rollover within 60 days of receiving the distribution. Any taxable amount not rolled over must be included in income and may be subject to the additional tax on early withdrawals.
 
 

 Delinquent, Filing Late Tax Returns – Back Tax Return Tax Help

Tax Debt Consultants – Affordable Local Experts – Ft.Lauderdale, Miami, Palm Beaches

by Fresh Start Tax | Jul 17, 2013 | Tax Help

We are a local South Florida tax firm and are affordable experts in tax debt back with both the Internal Revenue Service and the state of Florida.
If you owe back taxes and have State or IRS federal tax debt you can contact us today for a free initial consultation. You can call us or come by and visit our offices today and speak directly with a true tax professional.
We will simply let you know if we can help you and offer you different and various tax solutions that could remedy your problem forever.
We will give you advice and offer to you every possible tax solution and remedy that will be available to you given your individual case and financial situation.
We are A+ rated by the Better Business Bureau so have no fear that the information we will be giving you is true and correct. We have worked thousands of cases right here in South Florida since 1982.
We are a professional tax firm comprised of tax attorneys, tax lawyers, certified public accountants, and former IRS agents, managers and tax instructors.
We have over 60 years of working directly for the local South Florida Internal Revenue Service in the local, district, and regional tax offices.
We have over 206 years of professional tax debt experience and we are A+ rated by the Better Business Bureau.
 

How Government Agencies Deal Back Tax Debt

 
There are generally three solutions if you owe the state or the federal government back tax debt and almost all government agencies work the same way.
For the government to deal with back tax debt they will want a current financial statement. That current financial statement form will very from state to state and the Internal Revenue Service specifically will use form 433-F or a form 433-A depending on who is working your case.
I cannot tell you the importance of this financial statement. It will usually determine  the outcome of your case and that’s why it is best to have a true tax professional prepare your financial statement in negotiate the terms of your settlement.
Once the government agency reviews your current financial statement they will want complete documentation to verify the correctness in the accuracy of your current financial state. You want to make sure you’re honest and forthright on your financial statement. They will also want to see bank statements, pay stubs and receipts of all current expenses. Many will want a copy of your last tax return.
They will also conduct a full compliance check to make sure all your tax returns have been filed and up-to-date.
 

How they will deal and close your case on you back tax debt

The three categories that taxpayers or businesses are usually put into after review of the financial statement with a government agency are the following.

• They may determine that you are an noncollectable candidate to put your back tax account into a current tax hardship sometimes known as currently not collectible or
• another option is that they will insist on a monthly payment or installment plan,

• or another option they will ask you and let you know that you are a qualified and suitable candidate to settle your tax case.

 
Contact us today for a free tax that consultation and hear the various solutions and remedies to permanently and immediately began to remedy your case.
Remember if you are going to choose a tax debt consultant you should consider using tax attorneys, CPAs or former IRS agents and managers who know the systems, the protocols, and the best tax settlement strategies to resolve your back tax debt.
We can work out a personalized plan for you that can get you immediate and permanent tax relief on your back tax debt.
 

Tax Debt Consultants – Affordable Local Experts – Ft.Lauderdale, Miami, Palm Beaches