by Jim Magary | Dec 3, 2015 | Tax Help
Affordable Payroll Tax Debt Settlement + Former IRS Agents & Managers can settle your case, over 60 years of former IRS work experience.
We know the system. Since 1982, we know the system.
Here the truth from Former IRS Agents who have worked thousands of cases. We are the affordable professional firm.
Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on payroll taxes than any other taxes.
The reason for this is very simple, this tax is money held in trust in not an actual tax.
It is one of few taxes that the Internal Revenue Service not only go after the company it can in addition can go after the responsible persons or individuals.
After the IRS creates individual tax assessment for those responsible it often time results in the filing of federal tax liens, bank and wage levy garnishments.
This is a tax that you should not fool around with because it is number one on the IRS to hit list.
The Internal Revenue Service will individually engage those responsible under section 6672 of the Internal Revenue Code
Let Former IRS agents and managers get you immediate tax relief via a payroll tax settlement.
We should be able to make sure we can reach a reasonable settlement on your payroll tax liability and you can continue to operate your business without fear and worry from the Internal Revenue Service.
With over 60 years of direct working experience at the Internal Revenue Service we know every possible tax solution that can get you immediate and permanent tax relief for a payroll tax settlement.
IRS does not want to seize your business for back taxes due on payroll taxes, however 941 payroll taxes are a big concern for the IRS.
The Process of receiving a Payroll Tax Debt Settlement
The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement. You will need to provide IRS with the current financial statement along with proof that all payroll tax deposits and 941 tax forms have been filed.
Many times IRS will want a personal or individual financial statement for more responsible persons. For most company’s of the IRS payroll tax settlement may come in three forms.
Review your current financial statement Internal Revenue Service may determine that you are a hardship candidate, monthly payment agreement candidate or an offer in compromise candidate and IRS payroll settlement.
Why have Fresh Start Tax contact the IRS:
You never have to talk with the Internal Revenue Service on these tax matters;
Fresh Start Tax knows what the IRS is looking for;
Fresh Start Tax knows the exact packaging required;
Fresh Start Tax knows the next steps the IRS will take;
You know your case will be handled and resolved as fast as possible.
There are steps your business or corporation can take to avoid the IRS taking the following actions:
IRS has the right to sell your complete inventory at public auction;
IRS can seize all your accounts receivables;
IRS can hold you personally responsible for this tax;
IRS has the right to lock the doors of your business.
Steps to take to work out an affordable payment plan with the Internal Revenue Service:
Immediately stay current on all payroll tax deposits to show the IRS good faith;
Be prepared to give the IRS a current financial statement;
Make sure your personal tax liabilities are filed and paid;
Have all documentation on the financial statement prepared for the IRS.
If you do not pay your Payroll Taxes IRS can collect them from you individually
To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the trust fund recovery penalty.
These payroll taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.
The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business.
The business does not have to have stopped operating in order for the TFRP to be assessed
Who Can Be Responsible for payroll tax debt
The TFRP may be assessed against any person who:
Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
Willfully fails to collect or pay them.
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes.
This person may be:
An officer or an employee of a corporation,
A member or employee of a partnership,
A corporate director or shareholder,
A member of a board of trustees of a nonprofit organization,
Another person with authority and control over funds to direct their disbursement,
Another corporation or third party payer,
Payroll Service Providers (PSP) ore responsible parties within a PSP
Professional Employer Organizations (PEO) or responsible parties within a PEO, or
Responsible parties within the common law employer (client of PSP/PEO).
For willfulness to exist, the responsible person:
Must have been, or should have been, aware of the outstanding taxes and either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness. You will be asked to complete an interview in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.
Figuring the Trust Fund Amount for responsible persons
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
The unpaid income taxes withheld, plus
The employee’s portion of the withheld FICA taxes. For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the TFRP If the IRS determines that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you. You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal.
The letter will explain your appeal rights. Refer to Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don’t Agree (PDF), for a clear outline of the appeals process. If you do not respond to our letter, we will assess the penalty against you and send you a Notice and Demand for Payment.
Once we assert the penalty, the IRS can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.
We are back payroll tax debt settlement experts.
Call us today for a free initial tax consultation and we can fully explain the process of settlement,t filing your back payroll tax returns or making a payment agreement. We are a full service tax from.
by Jim Magary | Dec 3, 2015 | Tax Help
Affordable Tax Professionals can easily resolve your problem, over 65 years of former IRS work experience. Since 1982.
We know the system. we have over 65 years of direct work experience in the local, district and regional tax offices of the IRS. We know the system inside and out and can walk you through the process today.
What you need to know, preparing tax return with no records.
If you have never file tax returns there is a painless way to get back in the system.
As former IRS agents and managers we can explain to you how to get back in the system without worry.
When you call us on your initial consultation we will walk you through the requirements.
Believe it or not, millions of people have not file tax returns but at some point in your life you’re going to have to file, the big question is what is at process like? I’m going to prison? How much trouble am I in ?, or how can I do this without worry?.
There is a way to get back in the system without pain, HOW, simply file your tax returns.
Yep, that simple.
The next big question how many back years do I file?
The answer varies on the facts of the case. As a general rule, as former IRS agents and managers we recommend you file anywhere between three and six years.
Some of the determining factors in making decisions are:
1. how much income have you made in the last six years,
2. what is your asset base,
3. what do your bank accounts look like,
4. have you always operated in cash,
5. what are your average monthly expenses for the time of non-filing
Tax Preparation for Never Filed Tax Returns, Preparing your tax returns with no records.
If you are a W-2 or 1099 or wage earner it will be very easy to compute your income.
We can simply ask IRS for copies of income transcripts for the last six years.
IRS will provide to us all income reports on W-2’s and 1099 s. Tax reconstruction is easy and simple. We can find out what expenses you have and prepare your tax return based on reconstructive methods.
If you are a cash person we can back into your income by finding what you’re annualized monthly expenses are multiplying by 12 and come up with an average base for computing gross income.The cost of living analysis is the best way to compute back tax returns for those who have never filed tax returns.
We have prepared hundreds upon hundreds of tax returns of taxpayers who have never filed. We can walk you to the process and get you back in the system seamlessly.
Below you will find the IRS policy statement regarding people who will never file tax returns.
What happens if I owe back taxes
If you will owe back taxes we will work out a tax settlement for you. IRS will require a current financial statement on form 433F expect that financial statement to be fully documented.
As a general rule, IRS places taxpayers who cannot pay their back tax debt into one of three categories. IRS will consider you either to be a current hardship, a monthly candidate for payments or a tax debt settlement candidate for the offer in compromise program.
IRS has a policy statement regarding delinquent tax returns.
1.2.14.1.18 (08-04-2006)
Policy Statement 5-133
1. Delinquent or prior years tax returns—enforcement of filing requirements
2. Taxpayers failing to file tax returns will be requested to prepare and file all such returns except in instances where there is an indication that the taxpayer’s failure to file the required return or returns was willful or if there is any other indication of fraud.
All delinquent returns submitted by a taxpayer, whether upon his/her own initiative or at the request of a Service representative, will be accepted.
However, if indications of wilfulness or fraud exist, the special procedures for handling such returns must be followed.
3. Where it is determined that required returns have not been filed, the extent to which compliance for prior years will be enforced will be determined by reference to factors ensuring compliance and evenhanded administration of staffing and other Service resources.
4. Factors to be taken into account include, but are not limited to:
a. prior history of noncompliance,
b. existence of income from illegal sources, effect upon voluntary compliance, anticipated revenue, and collectibility, in relation to the time and effort required to determine tax due.
Consideration will also be given any special circumstances existing in the case of a particular taxpayer, class of taxpayer, or industry, or which may be peculiar to the class of tax involved.
5. Normally, application of the above criteria will result in enforcement of delinquency procedures for not more than six (6) years. There are special cases in which the IRS will ask for more than six years.
Those cases generally involve those with a great deal of access with a high potential of collection and probability. There are very few cases that meet this criteria.
Call us today for a free initial tax consultation.
Never Filed Tax Returns + File Now Without Worry + Former IRS Can Help
by Jim Magary | Dec 2, 2015 | Tax Help
AFFORDABLE Former IRS Agents and Managers who Know the Systems, Since 1982. Hear how the System Works
As former IRS agents and managers we know every possible solution to remedy yourself and your business from IRS tax debt. there are various tax solutions to completely resolve your problem.
After your free initial tax consultation you will understand the simplest way to relieve yourself of payroll tax debt.
We know all the methodologies the settlements of protocols, the systems and formulas to get you an affordable IRS tax settlement.
We have over 65 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service.
Not only were we former IRS agents and managers were also teaching instructors in on-the-job instructors as well.
How IRS Will Be Work Your Case File
We have worked hundreds upon hundreds of these cases as both former IRS agents and being in private practice.
We have over 206 years of professional taxes and worked countless numbers of IRS business and personal cases regarding tax that matters.
We are true experts to understand the system of how to negotiate IRS delinquent payroll tax debt.
When IRS works any business case that involves delinquent payroll tax debt, one of the first things they will ask for is a current business financial statement on a form 433B, that is the only form Internal Revenue Service will use for the evaluation of the business.
In conjunction with the 433B, the IRS will also ask for a personal financial statement to evaluate your current individual finances as well.
IRS will expect that financial statement to be completely documented and verified. We are true experts for packaging these cases and submitting them to Internal Revenue Service. since we worked in the system we know exactly what their standards are.
As a general rule IRS will close the case out using the below closing methods.
1. Hardships.
After assessing of your financial statement, the IRS may determine that your presently a hardship and are currently not collectible, which means you simply cannot pay the debt at this time and IRS will reevaluate your case in two or three years.
Keep in mind that interest and penalties will continue to run however IRS will expect you to stay current file all tax returns. If you failed to stay current on filings or depositories IRS will bring the case out back into the field for immediate follow-up.
2. IRS Installment and or IRS Payment Plan Agreements.
Your current financial statement may dictate that you have money left over at the end of the month to pay IRS back taxes.
the importance of filling out your financial statement correctly will determine in fact that you do have the ability to pay back and that IRS does not force you to make a payment you cannot make. You will find out many times at the IRS’s forces taxpayers into making a financial statement that is impossible for them to make. Do not be trapped into this position.
That’s why it is critically important that you get a true tax professional expert who understands IRS and can get you a reasonable payment agreement with IRS and not forced installment payment.
3. The IRS Offer in Compromise Tax Settlement
The offer in compromise allows you to settle your tax debt for pennies on a dollar.
You must understand the strict policies of the offer in compromise because they are very tight, rigid and strict standards to get the offer accepted.
Last year 38,000 taxpayers businesses and other entities had their cases settled by internal revenue service through the offer in compromise for an average of $6500.
There is a pre-qualifier to let you can walk through to make sure you are qualified and suitable candidate.
If you owe back business tax and want to consider a tax settlement, installment payment agreement or to be placed into a current hardship call us today for free initial tax consultation.
Beware:
Anytime you are dealing with Internal Revenue Service it is critical that all tax returns are filed and you are making current tax payments in the month or year that you were in.
Many times if IRS feels you cannot maintain your current payments they will not enter into installment payments consider an offer in compromise or place you in hardship. The best option they may have is to close the entity down. Call us today to learn more.
If you have payroll tax debt that needs addressing call us today for a free initial tax consultation.
PAYROLL TAX DEBT + Keep IRS Off Your Back + Use Affordable Former IRS Agents
by Jim Magary | Dec 2, 2015 | Tax Help
AFFORDABLE Former IRS Agents and Managers who Know the Systems, Since 1982. 941 Payroll Debt Specialists
As former IRS agents and managers we know every possible solution to remedy yourself and your business from 941 business tax debt.
We know all the methodologies the settlements of protocols, the systems and formulas to get you an affordable IRS tax settlement.
We have over 65 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service.
Not only were we former IRS agents and managers were also teaching instructors in on-the-job instructors as well.
We know how IRS works are cases inside and out. we were part of the system and understand how to get in and out of these cases as fast as possible.
How IRS Works Cases on Payroll Tax Debt
When IRS works any business case that involves payroll taxes one of the first things they will ask for is a current business financial statement on a form 433B, that is the only form Internal Revenue Service will use for the evaluation of the business.
In conjunction with the 433B, the IRS will also ask for a personal financial statement to evaluate your current individual finances as well.
IRS will expect that financial statement to be completely documented and verified. IRS will conduct a thorough review on your financial statements.
As a general rule IRS will close the case out using the below closing methods.
- After assessing of your financial statement, the IRS may determine that your presently a hardship and are currently not collectible, which means you simply cannot pay the debt at this time and IRS will read of you evaluate the case in two or three years.
Keep in mind that interest and penalties will continue to run however IRS will expect you to stay current file all tax returns.
2. Monthly Installment and or Monthly Payment Agreements.
Your current financial statement may dictate that you have money left over at the end of the month to pay IRS back taxes.
The importance of filling out your financial statement correctly will determine in fact that you do have the ability to pay back and that IRS does not force you to make a payment you cannot make.
You will find out many times at the IRS’s forces taxpayers into making a payments that is impossible for them to make. Do not be trapped into this position.
That’s why it is critically important that you get a true tax professional expert who understands IRS and can get you a reasonable payment agreement with IRS and not forced installment payment.
3. Offer in Compromise, Pennies on a Dollar
The offer in compromise allows you to settle your payroll tax debt for pennies on a dollar.
You must understand the strict policies of the offer in compromise because they are very tight, rigid and strict standards to get the offer accepted.
Last year 38,000 taxpayers businesses and other entities had their cases settled by internal revenue service through the offer in compromise for an average of $6500. Keep in mind this is the national average.
There is a pre-qualifier to let you can walk through to make sure you are qualified and suitable candidate.
If you owe back business tax and want to consider a tax settlement, installment payment agreement or to be placed into a current hardship call us today for free initial tax consultation.
Please Take Note
Anytime you are dealing with Internal Revenue Service it is critical that all tax returns are filed and you are making current tax payments in the month or year that you were in.
Many times if IRS feels you cannot maintain your current payments they will not enter into installment payments consider an offer in compromise or place you in hardship. The best option they may have is to close the entity down. Call us today to learn more.
We can find ways to keep your business open and keep IRS happy.
We are true IRS tax experts and have a specialty expertise in the negotiation of IRS business tax debt.
941 Payroll Tax Debt Settlement + Affordable IRS Employment Tax Debt Specialists + Former IRS + Since 1982
by Jim Magary | Dec 2, 2015 | Tax Help
There is no persons better to work your case than former IRS agents and managers who know the system. Since 1982, the affordable tax specialists
We have over 65 years of direct IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service. Not only were we former IRS agents, managers and teaching instructors, we taught new IRS agents their jobs. We were on the job instructors.
We know the system inside and out and can help you with any tax issue or tax problem that you have including the negotiation of any IRS business, payroll tax debt or individual tax.
We have worked thousands of IRS cases and know the complete inner workings in the methodologies to get you a tax settlement or a payment plan depending on your individual or business situation.
IRS is tougher on Back Payroll Taxes
Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on payroll taxes than any other taxes. The reason for this is very simple, this tax is money held in trust in not an actual tax.
It is one of few taxes that the Internal Revenue Service not only go after the company it can in addition can go after the responsible persons or individuals.You can read more on this below. If IRS finds that you are personally responsible to pay over the payroll taxes that failed to do so IRS will go after you individually.
After the IRS creates individual tax assessment for those responsible it often time results in the filing of federal tax liens, bank and wage levy garnishments.
This is a tax that you should not fool around with because it is number one on the IRS to hit list.
The Internal Revenue Service will individually engage those responsible under section 6672 of the Internal Revenue Code
We should be able to make sure we can reach a reasonable settlement on your payroll tax liability and you can continue to operate your business without fear and worry from the Internal Revenue Service.
With over 60 years of direct working experience at the Internal Revenue Service we know every possible tax solution that can get you immediate and permanent tax relief for a payroll tax settlement.
The Process of receiving a Payroll Tax Settlement, Installment Agreements
The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement, whether it be a tax settlement or installment payment.
You will need to provide IRS with the current financial statement along with proof that all payroll tax deposits and 941 tax forms have been filed. Usually that financial statement will be on IRS form 433B which is found on our website.
Along with IRS obtaining a business financial statement they will want to see your individual personal financial statement which IRS we require a form 433a. These forms will need to fully be documented and turned over for IRS to review.
The key to getting successful results in IRS business negotiations is putting your financial statement together and presenting it to the IRS and acceptable fashion. A lot of success in these cases for settlements and payment plans is packaging.
For most company’s of the IRS payroll tax settlement negotiation may come in three forms.
After IRS reviews your current financial statement Internal Revenue Service may determine that you are a:
1. hardship candidate,
2. monthly payment agreement candidate or,
3.an offer in compromise candidate and IRS payroll settlement.
Why have Fresh Start Tax contact the IRS:
You never have to talk with the Internal Revenue Service on these tax matters;
Fresh Start Tax knows what the IRS is looking for;
Fresh Start Tax knows the exact packaging required;
Fresh Start Tax knows the next steps the IRS will take;
You know your case will be handled and resolved as fast as possible.
There are steps your business or corporation can take to avoid the IRS taking the following actions:
IRS has the right to sell your complete inventory at public auction;
IRS can seize all your accounts receivables;
IRS can hold you personally responsible for this tax;
IRS has the right to lock the doors of your business.
Steps to take to work out an affordable payment plan with the Internal Revenue Service:
Immediately stay current on all payroll tax deposits to show the IRS good faith;
Be prepared to give the IRS a current financial statement;
Make sure your personal tax liabilities are filed and paid;
Have all documentation on the financial statement prepared for the IRS.
If you do not pay your Payroll Taxes IRS can collect them from you individually
To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.( trust fund recovery penalty )
These payroll taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.
The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business.
The business does not have to have stopped operating in order for the TFRP to be assessed.
Who Can Be Responsible for the Trust fund Penalties
The TFRP may be assessed against any person who:
Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
Willfully fails to collect or pay them.
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes.
This person may be:
An officer or an employee of a corporation,
A member or employee of a partnership,
A corporate director or shareholder,
A member of a board of trustees of a nonprofit organization,
Another person with authority and control over funds to direct their disbursement,
Another corporation or third-party payer,
Payroll Service Providers (PSP) ore responsible parties within a PSP
Professional Employer Organizations (PEO) or responsible parties within a PEO, or
Responsible parties within the common law employer (client of PSP/PEO).
For wilfulness to exist, the responsible person:
Must have been, or should have been, aware of the outstanding taxes and either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness. You will be asked to complete an interview in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.
Figuring the IRS Trust Fund Amount
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
The unpaid income taxes withheld, plus
The employee’s portion of the withheld FICA taxes. For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the TFRP If the IRS determines that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you.
You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal.
The letter will explain your appeal rights. Refer to Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don’t Agree (PDF), for a clear outline of the appeals process.
If you do not respond to our letter, we will assess the penalty against you and send you a Notice and Demand for Payment.
Once we assert the penalty, the IRS can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.
If you owe back payroll tax debt and looking to seeking a payroll tax settlement or installment payment agreement, call us today for free initial tax consultation & we will walk you through the process.
We have been practicing our craft since 1982 and are a full service tax firm.
