by Fresh Start Tax | Jul 17, 2013 | IRS Tax Debt, Tax Help
If you owe back taxes and have State or IRS federal tax debt you can contact us today for a free initial consultation, yes free advice with no strings attached.
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 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 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 Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
We are a Tax Specialty firm that deals specifically in IRS and state tax debt. We are some of the premier tax debt consultants of both state and federal tax debt in the nation. We have been in private practice since 1982.
You can contact us for a free initial tax consultation and let us give you an individualized plan to resolve your state or federal tax debt.
We have over 206 years of professional tax debt experience and we are A+ rated by the Better Business Bureau.
When you call our office you will speak directly to a tax professionals.
Different Tax Debt Solutions on Back Taxes
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.
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. They will also want to see bank statements, pay stubs and receipts of all current expenses.
Many agencies will want a copy of your last tax return.
How they will deal with your case
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.
Tax Debt Consultants – Fresh Start Tax, A+ Rated BBB, FREE ADVICE
by Fresh Start Tax | Jul 17, 2013 | IRS Tax Audit
Being former IRS agents and managers I can tell you that many taxpayers and tax preparers do not understand there is a valuable tool that is available to them for tax audits and it is called the fast-track settlement.
It is a valuable tool for IRS tax audit help.
This tool can save the taxpayer loads of money and tax representation fees.
We are a tax firm comprised of tax attorneys, tax lawyers, certified public accountants, and former IRS agents and managers who have over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS. You should call us today for a free initial tax consultation to see if you qualify for the use of fast track settlement help. Not everyone is a qualified or suitable candidate that’s why it is important for us to review your case to find out if it is the right situation for you.
The bottom line to fast-track settlement is that it reduces the time of the final decision for your IRS tax audit. We also have on staff former IRS appellate agents who can help with these determinations to find out if this stuff is right for you.
Being a former IRS agent I would absolutely make sure you contact an experienced tax professional and receiving advice on IRS tax audits.
There is a world of difference in a true tax firm versus the volumes of Internet advertising firms that is suggesting taxpayers can settle these cases by using these various Internet companies who are not owned and operated by true tax professionals.
Fast Track Settlements
Fast Track Settlement (FTS) offers Large Business and International Division (LB&I) taxpayers a way to resolve audit issues during the examination process in less than 120-days.
Working with LB&I and Appeals, taxpayers can use the settlement authority and mediation skills of Appeals to shorten their overall experience with the Internal Revenue Service.
FTS reduces the combined LB&I-Appeals process time by two years.
Fast Track Settlement (Small Business and Self-Employed Taxpayers)
Small Business/Self-Employed and Appeals have designed an alternative dispute resolution strategy for small business and self-employed taxpayers, called the SB/SE Appeals Fast Track Settlement.
The FTS program was designed to resolve audit issues during the examination process within a goal of 60 days from acceptance of the application in Appeals.
A taxpayer who is interested in participating in the SB/SE FTS, or who has questions about the program and its suitability for the taxpayer’s case, may contact the Examination or Specialty Program group manager.
To apply for the SB/SE FTS program, the taxpayer and the group manager need to submit Form 14017, Application for Fast Track Settlement, and the taxpayer’s brief, concise and soundly written.
Fast Track Settlement (Large Business and International Division Taxpayers)
Fast Track Settlement (FTS) offers Large Business and International Division (LB&I) taxpayers a way to resolve audit issues during the examination process in less than 120-days.
Working with LB&I and Appeals, taxpayers can use the settlement authority and mediation skills of Appeals to shorten their overall experience with the Internal Revenue Service. FTS reduces the combined LB&I-Appeals process time by two years.
Post Appeals Mediation
Mediation is available for certain cases that are already in the Appeals process only after Appeals settlement discussions are unsuccessful and, generally, when all other issues are resolved but for the issues for which mediation is being requested.
Mediation is a non-binding process that uses the services of a mediator, as a neutral third party, to help Appeals and the taxpayer reach their own negotiated settlement.
To accomplish this goal, the mediator will act as a facilitator; assist in defining the issues; and promote settlement negotiations between Appeals and the taxpayer.
The mediator will not have settlement authority in the mediation process and will not render a decision regarding any issue in dispute.
Tax Arbitration
Arbitration is available for certain cases within Appeals jurisdiction that meet the operational requirements of the program.
Generally, this program is available for cases in which a limited number of factual issues remain unresolved following settlement discussions in Appeals.
Appeals and the taxpayer will be bound by the arbitrator’s findings. The arbitration procedure uses the services of an arbitrator either from Appeals or from an outside organization.
Tax Audit Help – IRS Tax Audit – Use Fast Track Settlement to Help – Former IRS, Tax Audit Experts
by Fresh Start Tax | Jul 17, 2013 | IRS Tax Audit
For inquiring minds that want to know what your chances for an IRS audit you can read below and find out what your chances are of an IRS tax audit.
Please note that these figures change from year to year but by very miniscule amounts.
IRS audits 1.1% of all personal income tax returns.
If you won the IRS audit lottery you should never go into IRS unrepresented for an IRS audit.
As a former IRS agent seeking good professional tax will in the long run save you aggravation, grief, stress and keep money in your pocket in the long run.
If you have received an IRS letter or notice that you are going to undergo an IRS tax audit is in your best interest to call former IRS agents and managers who know all of the protocols, techniques and tax defenses to best defend your tax return that is undergoing an IRS tax audit.
So , What are your odds/chances of a IRS Tax Audit
No adjusted gross income 3.43%
$1- $25,000 1.22
$25,000-$50,000 .73%
$50,000-$75,000 .83%
$75,000-$100,000 .82%
$100,000-$200,000 1.1%
$200,000-$500,000 2.67%
$500,000-$1,000,000 5.32%
1,000,000-$5,000,000 5.38%
$5,000,000-$10,000,000 20.95%
over $10,000,000
Total IRS Collections for the year
The IRS collected $2.5 trillion in total tax dollars in 2012, broken down as follows:
- From individuals: $2.1 trillion.
- From businesses: $285 billion.
- From other sources: $115 billion.
It is important to remember that IRS audits tax returns keeping in mind their budget For the current year and their available personnel to actually on a tax return.
If you have any questions regarding IRS tax audits call us today and you’ll speak to experienced IRS tax professionals to answer all your questions.
by Fresh Start Tax | Jul 17, 2013 | IRS Tax Audit
If you have received an IRS nasty gram you are not alone.
Millions of taxpayers every year receive an IRS tax audit notice letting him know that a tax audit is about to take place. Most people get scared to death of what will happen next but being former IRS agents and managers most people do not need to worry themselves into anxiety and panic attacks. All this will pass.
The best way to defend yourself against an IRS tax audit is by contacting former IRS agents and managers who understand the scope of the length and the complete details of what will take place.
Our firm has a A+ rating by the Better Business Bureau and we have been in private practice since 1982.
We are tax experts in IRS tax audits. We completely understand the what, the who, the why, and the complete scope of your IRS tax audit. Being former IRS agents and managers we have conducted audits and have represented taxpayers that are going through on its. We know every single process there is in the system as well of all the appellate protocols.
Besides having former IRS agents and IRS audit managers we also have on staff former IRS appeals agents and tax attorneys for more difficult and complicated cases.
We are a full service tax firm and all our work is conducted by our in-house tax professionals and IRS specialty tax audit experts.
Odds of a IRS Tax Audit
No adjusted gross income 3.42%
$1- $25,000 1.22
$25,000-$50,000 .73%
$50,000-$75,000 .83%
$75,000-$100,000 .82%
$100,000-$200,000 1%
$200,000-$500,000 2.66%
$500,000-$1,000,000 5.32%
1,000,000-$5,000,000 5.38%
$5,000,000-$10,000,000 20.75%
over $10,000,000
What is an IRS audit?
An IRS audit is a review/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.
You can find more information on Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail.
The IRS Tax Audit Selection Process
Selecting a income or business tax return for a IRS audit does not always suggest that an error has been made. Tax Returns are selected using a variety of methods, including:
- Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. These are very difficult tax audits
- Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported. 1.6 million taxpayers go through these audits every year.
- Related examinations – 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. These are usually high dollar cases.
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 will tell you what records are needed. Audits can result in no changes or changes. Any proposed changes to your return will be explained.
IRS Tax Audit Notification
Should your account be selected for audit, you will be notified in two ways:
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. If you ever receive an email notice from the Internal Revenue Service you can be sure of one thing is a scam.
Your Rights During an 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 audit rights include:
- A right to professional and courteous treatment by IRS employees.
- A right to privacy and confidentiality about tax matters.
- A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
- A right to representation, by oneself or an authorized representative.
- 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 are relatively simple and you are required to go into the local IRS office while field audits can last anywhere from 30 days to two years.
Tax Records that will be needed
You will be provided with a written request for specific documents needed. If you don’t have all the requested documentation you can provide reconstructive records. To do this you should contact us today and we can walk you through the process of tax reconstruction.
The law requires you to retain records used to prepare your return.
Record keeping requirement
Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. Most revenue agents or field audits generally accept 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.
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. This is obviously the greatest news you will ever have for a tax audit.
2. Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes. The next step will be how to pay the tax deficiency.
3. Disagreed: an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
Agreed tax audit cases
If you agree with the 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, there are several payment options available. Publication 594, The IRS Collection process, explains the collection process in detail.
What happens if you disagree with the IRS tax 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.
Fast Track Settlement (Large Business and International Division Taxpayers)
Fast Track Settlement (FTS) offers Large Business and International Division (LB&I) taxpayers a way to resolve audit issues during the examination process in less than 120-days.
Working with LB&I and Appeals, taxpayers can use the settlement authority and mediation skills of Appeals to shorten their overall experience with the Internal Revenue Service.
FTS reduces the combined LB&I-Appeals process time by two years.
Fast Track Settlement (Small Business and Self-Employed Taxpayers)
Small Business/Self-Employed and Appeals have designed an alternative dispute resolution strategy for small business and self-employed taxpayers, called the SB/SE Appeals Fast Track Settlement.
The FTS program was designed to resolve audit issues during the examination process within a goal of 60 days from acceptance of the application in Appeals.
The process uses the settlement authority and mediation skills of Appeals. We’ve successfully tested the program in Chicago; St. Paul, Minn.; Houston; central New Jersey; Philadelphia; San Diego; Laguna Niguel and Riverside, Calif.
SB/SE and Appeals will continue to offer FTS in these locations and has now expanded the program to include Atlanta, Detroit, New York City, Phoenix, Tampa and Seattle. FTS will be offered nationwide later in 2013.
To apply for the SB/SE FTS program, the taxpayer and the group manager need to submit Form 14017, Application for Fast Track Settlement, and the taxpayer’s brief, concise and soundly written response to the Service’s position.
IRS Tax Audits – What, Who, Why, Scope of a IRS Tax Audit, Former IRS Agents
by Fresh Start Tax | Jul 16, 2013 | Tax Help
We are a local South Florida tax firm that specializes in back tax debt solutions with both the state of Florida and the Internal Revenue Service.
We are an A+ rated professional tax firm located right here in your own home community of South Florida.
We have been located right here in South Florida since 1982.
We are comprised of tax attorneys, certified public accountants, and former IRS agents and managers who have a combined 60 years of direct work experience in the local South Florida IRS offices.
Besides the offer in compromise program there are other back tax debt solutions that IRS has to offer, it all depends on your individual case and your individual financial statement.
Your current financial statement will hold the key to which back tax debt solution you are eligible for.
As former IRS agents, we know every tax protocol and every back tax debt solution that is offered by both the federal and state governments.
You may be eligible for an economic tax hardship called currently not collectible, you may be eligible for a payment or installment agreement or you may be eligible for the ultimate back tax debt solutions called the offer in compromise.
The only way to determine what the best tax debt solution will be on your individual case is to contact us for free initial consultation and be prepared to give us your current financial statement.
You will need to fill out a form 433F which is the IRS version of a financial statement. You can find that form on our website. Once we review that we can go over all the back tax debt solutions and help permanently and immediately remedy your IRS back tax problem.
There are many good tax firms that specialize in back tax debt solutions nationwide and we believe we are one of the finest firms because of our expertise and experience in IRS tax settlements.
While at the Internal Revenue Service we taught the offer in compromise program, tax settlements, to new IRS agents.
Back Debt Solutions called the Offer in Compromise
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 owed.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
In order to be eligible 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 will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential .
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 under applicable law that the IRS has correctly determined the amount owed.
- Second, acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that 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, acceptance is permitted based on effective tax administration. An offer may be accepted based on effective tax administration when there is 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.
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of all Forms. Those forms are:
Those required forms are:
- 656 (PDF), Offer in Compromise, and also submit
- Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or
- Form 433-B (OIC) (PDF), 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).
Required Application Fees
In general, a taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
No application fee is required if the OIC is based on doubt as to liability.
The fee is not 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 4 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 4 of Form 656.
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A Lump Sum Offer
A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum 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 $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount 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 amount.
Periodic payment offer
The offer is called a “periodic payment offer” under the tax law if it is 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 $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum 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. Should you stop payments you have by manual defaulted of the offer.
These amounts are also nonrefundable. You absolutely want to make sure you qualify for your offer in compromise.
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.
The statutory time period gets extended when you file an offer in compromise.
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.
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 does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default. The taxpayers federal tax lien also will get released.
Offers for Collectibility and effective tax administration
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, 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.
Rejected offers in compromise
If the IRS rejects an OIC, then 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. You absolutely cannot miss this 30 days date and we suggest that you send it in by certified mail.
In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
Other back tax debt solutions
Beside the offer in compromise the IRS may consider that you have more necessary expenses and income. If that is the case the Internal Revenue Service can put you into a tax hardship. You will need to verify all income expenses on the IRS form 433F. You can stay into a tax hardship for two or three years before IRS will review your case again. If you have more income the necessary expenses IRS will place you into a monthly installment agreement or payment plan.
Before you contact the Internal Revenue Service it is best to contact a qualified tax professional to find out which is the best back tax debt solution that is right for you
Call us today for a free initial tax consultation and we can walk you through the process of different tax solutions.
We the we are the affordable tax experts located right here in South Florida in your own home community.
Back Tax Debt Solutions – IRS Experts, Former IRS, Since 1982 – Ft.Lauderdale, Miami, West Palm Beach – South Florida
