by Jim Magary | Apr 28, 2016 | Tax Help
The affordable tax firm who can take care of your outstanding tax liability and back taxes. Since 1982. A plus Rated
Being Former IRS Agents and Managers we know all the solutions! Settle For the Lowest Allow By Law.
There are various options available to taxpayers who have outstanding tax liability. As a former IRS agent teaching instructor there generally six ways to cope with these outstanding taxes.
It is important for taxpayers to know the different methods to go ahead and help resolve your IRS tax debt.
We are a full service tax resolution firm that have some of the finest experts in the industry. We have over 65 years of direct IRS work experience.
Taxpayers must know they must develop an exit strategy to go ahead and to sooner or later extinguish the tax liability. Settlements with the IRS come in different ways.
Not everyone can settle their debt for pennies on the dollar.
The Six most common ways that taxpayers will eventually opt into are the following.
1. taxpayers will eventually borrow the money to pay the tax often full,
2. taxpayers will enter a payment plan with the Internal Revenue Service,
3. taxpayers will have their cases put into an IRS hardship are currently uncollectible,
4. taxpayers will settle their debt to the offer in compromise program,
5. taxpayers will file a Chapter 7 bankruptcy proceeding,
6. while lastly the ten-year statute of limitation may expire and the debt will go away permanently.
If you are dealing with an outstanding tax liability and need to have your case reviewed for free initial tax consultation call us today to speak to true IRS experts know exactly how to deal with back tax debt.
We are a full-service firm with a specialty in IRS and state tax resolution.
It is important for taxpayers to know that any time you have an outstanding tax liability that Internal Revenue Service will want all tax returns filed upon their initial text contact.
This is so-called full compliance check.
If you need help with the filing of your back taxes, call us and we can prepare your tax returns with or without records.
Some IRS tax statistics.
For tax payers with outstanding liabilities the IRS tax statistics show that 40% of all open IRS collection cases are put into a currently not collectible or hardship case status, 6.5 million people enter into monthly installment payments, and 38% of all those who file offers in compromise get accepted for an average settlement of around $5000.
Call us today for free initial tax consultation.
Settle IRS Tax Liabilities + Tax Resolution Services Experts
by Jim Magary | Apr 28, 2016 | Tax Help
IRS tax debt? It only makes sense to ask former IRS agents and managers who know the system. Since 1982.
We have over 206 years of professional tax experience and over 65 years of working directly for Internal Revenue Service in the local, district, and regional tax offices of the IRS. We are true affordable experts for those who need to get help for IRS tax debt.
We know all the IRS systems and methodologies inside and out as well as all their settlement formulas.
IRS Tax Debt
IRS will always send a series of notices and letters to the last known address of taxpayers who owe tax debt and IRS will expect a return call, letter or correspondence from taxpayers and how they plan to take care of your IRS tax bill situation.
As a general rule, IRS will want a current financial statement on form 433F, that form will need to be fully documented before they make a determination on how they will deal with you an individual basis.
The preparation and documentation of that current financial statement is crucial to how IRS will deal with this tax debt.
IRS generally will settle tax bills in one of two ways.
1The IRS because of your tax debt may place you want to currently not collectible or hardship status or,
2. they may decide to place you want to a monthly payment agreement.
Last year statistics show that 14 million taxpayers did not pay last year’s tax bill.
40% of all those taxpayers were placed into a currently not collectible or hardship status and 6.5 million taxpayers entered into a monthly payment agreement.
You should know that you may also qualify for the offer in compromise program to settle your debt for pennies on the dollar however I caution all taxpayers before opting to do this to walk through the pre-qualifier tool to make sure you are a settlement candidate.
Another word of advice, make sure all your tax returns are current and on the IRS system.
Many times IRS may refuse to deal with any taxpayer who is not current in their tax filings.
We can prepare all back tax returns with or without records.
Call us today for a free initial tax consultation and we will go over with you the various programs that IRS offers for back tax debt.
We are a full-service firm with all work being done in-house.
We’ve been practicing since 1982, are A+ rated by the Better Business Bureau and when you call our office you will speak to a true IRS tax expert.
Get Help For IRS Tax Debt + Expert + Former IRS Agents
by Jim Magary | Apr 28, 2016 | Tax Help
We’re affordable professional from that specializes in help for IRS employment tax audits, since 1982 resolving IRS problems in full.
We have over 206 years of professional tax experience and we have over 65 years of working directly for Internal Revenue Service and the local, district, and regional tax offices of the IRS.
If you are undergoing employment tax audit it only makes sense to hire former IRS agents who know the system and work payroll tax audits and know them inside and out.
We know the system, the formulas, and the settlement theories to go ahead and successfully bring your case to a successful resolution.
Call us today for a free initial tax consultation.
IRS Employment Tax Audits.
When IRS audits a business and especially companies for payroll tax audits they use the following factors. They will apply these factors and use them for the purpose of obtaining the information they need during the tax audit.
If you are involved in this type of employment tax audit you need to have professional tax help because IRS can make is very difficult on you.
Common Law Rules for Employment Tax Audits
Facts that provide evidence of the degree of control and independence fall into three categories:
1. Behavioral:
Does the company control or have the right to control what the worker does and how the worker does his or her job?
2. Financial:
Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
3. Type of Relationship:
Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor.
Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor.
There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination.Generally, an IRS agent will look on the preponderance of evidence.
Also, factors which are relevant in one situation may not be relevant in another.
The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document e
Behavioral control refers to facts that show whether there is a right to direct or control how the worker does the work.
A worker is an employee when the business has the right to direct and control the worker. The business does not have to actually direct or control the way the work is done – as long as the employer has the right to direct and control the work.
The behavioral control factors fall into the categories of:
• Type of instructions given
• Degree of instruction
• Evaluation systems
• Training
Types of Instructions Given
An employee is generally subject to the business’s instructions about when, where, and how to work.
All of the following are examples of types of instructions about how to do work.
• When and where to do the work.
• What tools or equipment to use.
• What workers to hire or to assist with the work.
• Where to purchase supplies and services.
• What work must be performed by a specified individual.
• What order or sequence to follow when performing the work.
Degree of Instruction
Degree of Instruction means that the more detailed the instructions, the more control the business exercises over the worker.
More detailed instructions indicate that the worker is an employee.
Less detailed instructions reflects less control, indicating that the worker is more likely an independent contractor.
Note: The amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved.
A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. T
he key consideration is whether the business has retained the right to control the details of a worker’s performance or instead has given up that right.
Evaluation System
If the evaluation system measures just the end result, then this can point to either an independent contractor or an employee.
Training
If the business provides the worker with training on how to do the job, this indicates that the business wants the job done in a particular way.
This is strong evidence that the worker is an employee.
Periodic or on-going training about procedures and methods is even stronger evidence of an employer-employee relationship. However, independent contractors ordinarily use their own methods.
Financial control refers to facts that show whether or not the business has the right to control the economic aspects of the worker’s job.
The financial control factors fall into the categories of:
• Significant investment
• Unreimbursed expenses
• Opportunity for profit or loss
• Services available to the market
• Method of payment
Significant investment
An independent contractor often has a significant investment in the equipment he or she uses in working for someone else.
However, in many occupations, such as construction, workers spend thousands of dollars on the tools and equipment they use and are still considered to be employees.
There are no precise dollar limits that must be met in order to have a significant investment.
Furthermore, a significant investment is not necessary for independent contractor status as some types of work simply do not require large expenditures.
Unreimbursed expenses
Independent contractors are more likely to have unreimbursed expenses than are employees. Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important.
However, employees may also incur unreimbursed expenses in connection with the services that they perform for their business.
Opportunity for profit or loss
The opportunity to make a profit or loss is another important factor. If a worker has a significant investment in the tools and equipment used and if the worker has unreimbursed expenses, the worker has a greater opportunity to lose money (i.e., their expenses will exceed their income from the work).
Having the possibility of incurring a loss indicates that the worker is an independent contractor.
Services available to the market
An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market.
Method of payment
An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. An independent contractor is usually paid by a flat fee for the job. However, it is common in some professions, such as law, to pay independent contractors hourly.
Type of relationship refers to facts that show how the worker and business perceive their relationship to each other.
The factors, for the type of relationship between two parties, generally fall into the categories of:
• Written contracts
• Employee benefits
• Permanency of the relationship
• Services provided as key activity of the business
Written Contracts
Although a contract may state that the worker is an employee or an independent contractor, this is not sufficient to determine the worker’s status.
The IRS is not required to follow a contract stating that the worker is an independent contractor, responsible for paying his or her own self employment tax.
How the parties work together determines whether the worker is an employee or an independent contractor.
Employee Benefits
Employee benefits include things like insurance, pension plans, paid vacation, sick days, and disability insurance.
Businesses generally do not grant these benefits to independent contractors. However, the lack of these types of benefits does not necessarily mean the worker is an independent contractor.
Permanency of the Relationship
If you hire a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship.
Services Provided as Key Activity of the Business
If a worker provides services that are a key aspect of the business, it is more likely that the business will have the right to direct and control his or her activities.
For example, if a law firm hires an attorney, it is likely that it will present the attorney’s work as its own and would have the right to control or direct that work. This would indicate an employer-employee relationship.
While the above list is not comprehensive is a good indication of how the Internal Revenue Service will view your case.
Call us today for free initial tax consultation. We are true experts if you need help for IRS employment tax audits.
Employment Tax Audit Help + Former IRS + Specialty Experts
by Jim Magary | Apr 27, 2016 | Tax Help
Before you spend your money to settle your tax debt what you need to know first.
I have worked more offers in compromise to settle tax debt than I care to admit.
Being a former IRS agent teaching instructor I have looked and reviewed thousands of cases since 1973.
I am a true expert when it comes to settling tax debt. There are many misconceptions about settling your tax debt for pennies on the dollar with the Internal Revenue Service.
Everyone calls us wanting to settle their debt for pennies on a dollar.
You need to know there are very specific formulas that govern the tax debt settlement offered by Internal Revenue Service.
Before anyone filing offering compromises should walk to the IRS pre-qualifier tool to make sure they are a qualified candidate before giving anybody their money.
You can call us today and we will walk you through the pre-qualifier tool to find out if you are an eligible candidate to file the offer in compromise. At fresh start tax we do not take any client unless are a true candidate for the program.
Statistics for offers in compromise.
If you are thinking of settling your tax debt through the offer in compromise know that the latest statistics show that there were 77,000 offers in compromise filed last year and acceptance rate of 39% from average settlement of around $5000.
Keep in mind these are based on national averages and completely dependent on your current financial statement.
So, what is the Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe.
It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. payment options before submitting an offer in compromise.
The Offer in Compromise program is not for everyone.
Make sure you are eligible to settle your tax debt
Before IRS can consider your offer, you must be current with all filing and payment requirements.
You are not eligible if you are in an open bankruptcy proceeding. Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Submit your offer to settle your tax debt
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF).
Your completed offer package will include:
• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.
Select a payment option
Your initial payment will vary based on your offer and the payment option you choose:
• Lump Sum Cash:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
• Periodic Payment:
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer.
If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the Settling Tax Debt process
While your offer is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Settling Tax Debt + What You Need to Know First
by Jim Magary | Apr 27, 2016 | Tax Help
We are an Affordable Christian Professional tax services firm with over 65 years of direct IRS work experience. Since 1982.<><
We worked in the audit, collections, and appeals division as well as former IRS teaching instructors. We are true Settling IRS tax debt experts.
We know the system inside and out and are some of the most affordable, trustworthy and notable experts.
Proverbs 11:14 <><
Where there is no guidance, a people falls, but in an abundance of counselors there is safety.
Proverbs 19:20-21 <><
Listen to advice and accept instruction, that you may gain wisdom in the future. Many are the plans in the mind of a man, but it is the purpose of the Lord that will stand.
If you want to file an offer in compromise/settling IRS tax debt, I thought you’d like to know what the statistics are.
Last year over 78,000 offers in compromise were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Much of the success of this program is due to the pre-qualifier tool.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement. Knowing the formulas that IRS uses is the best way to settle your debt for the lowest amount possible.
We will not file for an offer in compromise unless you are a true candidate for the program. There is an IRS pre-qualifier tool that we review with our clients before we file for the offer in compromise.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
As a former IRS agent, I was a teaching instructor for the offer in compromise, the IRS tax debt settlement program. Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program.
However this settling tax debt program is not for everybody.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
You could hear the truth about the offer in compromise program when you call us.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
I know the system inside and out. As a former IRS agent I used to accept and reject offers in compromise.
I have heard countless horror stories from taxpayers who called me about firms that have ripped them off promising settlements.
As a former IRS agent I taught the offer in compromise program at the district training center as a former employee.
The question is pennies on the dollar possible to settle IRS tax debt?
Yes, it is as a matter of fact, over 38,000 taxpayers got their debt settled with the Internal Revenue Service for average settlement of $6500 last year.
With that being said there is much to say about this pennies on the dollar program called the offer in compromise.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS and in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlements.
I would suggest anyone who wants to go ahead and settle their tax debt through the pennies on the dollar, offer in compromise program contact an experienced an honest tax professional, have them walk them through the pre-qualifier tool before they give their money to anybody.
If you have any questions or issues about the offer in compromise program to settle your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise. It is possible for the IRS to spend over 20 hours working an offer in compromise.
On cases over $100,000 it is typical they will check your credit report for the accuracy of your financial statement. The higher the dollar case the greater the due diligence.
Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
Right now there are over 7500 cases in the offer queue to be worked.
We are a full-service firm with an expertise in any IRS tax debt matter including offering compromise.
One base rule for the offer in compromise program. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
Below you will find out what you need to know about the offer in compromise program.
TYPES OF OIC PAYMENTS
• Lump Sum Cash Payment:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
• Periodic Payment:
Submit your initial payment with your application.
Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understanding the process of OIC
While your offer or your settlement is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for free initial tax consultation to see if you are a certified an eligible candidate for the offer in compromise program.Christian Tax Services Firm.
We call our office you will speak to a true IRS tax professional. So yes pennies on a dollar is possible, however make sure you’re a qualified candidate.
Call us today for a free initial tax consultation and speak to a true IRS expert about the offer in compromise the way to settle your tax debt for pennies on a dollar if you qualify.
When you call our office you will speak to true IRS tax expert to learn more about the offer in compromise and tax debt settlement program to reduce your IRS tax debt.
Settling IRS Tax Debt = Christian Tax Services Firm + OIC
