by Jim Magary | Apr 21, 2016 | Tax Help
I and you and
We’re affordable professional tax firm that specializes in IRS payroll tax audit defense, since 1982 resolving IRS problems including settlements.
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.
Not only were we former IRS agents and managers we were teaching instructors as well.
If you are undergoing payroll 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 understand all the methodologies and settlement formulas.
We are true IRS payroll tax audit specialists in with you will owe money to IRS’s results of your audit we can settle your case all at the same time.
Since 1982, we are A+ rated by the Better Business Bureau.
IRS Payroll 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 payroll tax audit you need to have professional tax help because IRS can make is very difficult on you.
Common Law Rules
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 their 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.
This tool is for fact gathering and usually an IRS agent will look for the preponderance of evidence. Also, this is not a comprehensive list but a basis to begin.
Also, factors which are relevant in one situation may not be relevant in another. Each case is based on its own set of unusual circumstances and there are no two cases the same.
The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control.
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.
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 payroll tax audits.
Payroll Tax Audit Defense + 941 Taxes + Payroll Tax Problems
by Jim Magary | Apr 15, 2016 | Tax Help
AFCC Spring Conference
April 17-18th, 2016
Tickets Now Available!
1day8hours39minutes7seconds
2 DAY EVENT
Get up to date on the latest industry standards and innovative changes going on to improve the consumer debt relief process
NETWORKING
Join other professionals in our industry to form new relationships, rehash existing ones, and build strong bonds
TOP NOTCH SPEAKERS
This year’s conference will feature presentations given by industry experts and veterans to help you improve business
LOCATION LOCATION
This Spring’s conference will be held in the heart of Louisiana at the Ritz-Carlton New Orleans
Spring 2016 CONFERENCE SCHEDULE You can also download the agenda by Clicking here
• Sunday the 17th
• Monday the 18th
1:00-3:00PM
Registration
3:00-3:30PM
AFCC Welcome and Introduction to the AFCC Board
AFCC Executive Board In our opening session will outline progress made from our last conference in the fall and the plans for 2016 and 2017.
3:30-4:30PM
AFCC Federal and State Legislative Update
Robby Birnbaum & Robert Linderman present what every attendee needs to know to run their business in a safe and compliant manner.
4:30-5:00PM
Veritas Legal Plan – How a Performance Model Can Offer Protection from Lawsuits
Angelo Anzalone, Owner Veritas Legal

5:00PM-7:00PM
AFCC Opening Cocktail Reception – Sponsored by Veritas Legal Plan
Come join us as we welcome the conference attendees with our welcome reception, complete with food and beverages to kick off the event and get your networking on!
THE VENUE the2016 Conference will be hosted at the world-famous Ritz-Carlton in the heart of downtown New Orleans.
RITZ-CARLTON NEW ORLEANS
921 Canal Street New Orleans, LA 70112
+1 504 524 1331
Admin@AmericanFairCreditCouncil.org
SPEAKERS. Learn about who will be presenting at the Spring 2016 conference.

Bob Linderman
AFCC Vice President & Legal
Legal, transactional and regulatory expert

Felix Shipkevich
Shipkevich PLLC
Principal

John McNamara
CFPB
Debt Collections Program Manager

Vanessa Megaw
CFPB
Financial Analyst

Phillip Duff
Lighthouse Consulting
Founder

Robby Birnbaum
Greenspoon Marder
AFCC President

Laurence Larose
IAPDA
Founder & Executive Director

Damon DeCrescenzo
The Credit Pros
Co-Founder

Teresa Dodson
Americor Financial
COO

Rusty Bresse
Credlogix Inc.
CEO & Director

Bill Seitz
Ohio District 8
Senator

Jason Kaplan
The Credit Pros
Co-Founder

Angelo Anzalone
Veritas Legal Plan
Founder & President

Michael Sullivan
Fresh Start Tax
Founder

Kurt Leib
Ohio Statehouse
Lobbyist
Conference Countdown
by Jim Magary | Apr 15, 2016 | Tax Help
well, the reports of the IRS Facts and Figures are out for 2015.
Take a peek!!!!!
Highlights of the Data IRS Audits
• The IRS audited a total of almost 1.4 million tax returns, approximately 0.7 percent of all returns filed in Calendar Year (CY) 2014
• The IRS audited 0.8 percent of all individual income tax returns filed in CY 2014, and 1.3 percent of corporation income tax returns
• IRS conducted the majority of Fiscal Year 2015 audits, 72.6 percent, via correspondence. The remaining 27.4 percent were conducted in the field
• Of the almost 1.4 million examinations of tax returns, nearly 28,000 taxpayers did not agree with the IRS examiner’s determination, totaling to an unagreed recommended additional tax of about $7.4 billion
Info on Data
• In Fiscal Year 2015, the IRS received over 2.6 billion third-party information returns, almost 87.2 percent of which were filed electronically
• The IRS closed more than 3.7 million cases under the Automated Underreporter Program resulting in more than $6.3 billion in additional assessments
• The IRS closed 614,000 cases under its Automated Substitute for Return Program resulting in over $2.7 billion in additional assessments
• For Tax Year (TY) 2014 individual income tax returns processed during Calendar Year 2015, IRS sent almost 1.7 million notices to taxpayers for almost 2.2 million math errors identified on their returns
• For TY 2014, math errors associated with calculation of income or other taxes made up almost 34.0 percent of total math errors. For TY 2013 and prior years, misreporting the number and amount of exemptions was the most common error, making up 24.8 percent of the total
IRS Collection Data
• Overall, in Fiscal Year (FY) 2015, the IRS collected, net of credit transfers, almost $35.6 billion in unpaid assessments on returns filed with additional tax due
• The IRS assessed $14.5 billion in additional taxes for returns not filed timely and collected almost $2.3 billion with delinquent returns
• In FY 2015, taxpayers proposed 67,000 offers in compromise to settle existing tax liabilities for less than the full amount owed. IRS accepted 27,000 offers, amounting to $204.7 million, during the year.
• The IRS assessed $24.1 billion in civil penalties. Approximately half of that amount, $12.4 billion, was assessed in civil penalties on individual and estate and trust income tax returns
Highlights of the Data for assistance
• In Fiscal Year (FY) 2015, the IRS provided taxpayer assistance through over 493.2 million visits to IRS.gov, assisted over 61.3 million taxpayers through its toll-free telephone helpline or at walk-in sites, and received 234.0 million inquiries in the Where’s My Refund application (
• The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers resolve problems with the IRS and recommends changes that will prevent those problems in the future.
Taxpayers may submit an application for assistance to TAS. In FY 2015, TAS received 227,189 new requests for assistance and closed 227,512 cases, including those received in a prior fiscal year
• The mission of Appeals is to resolve tax controversies without litigation, on a basis that is fair and impartial to both the taxpayer and the Federal Government.
The Appeals Office considers cases that involve examination, collection, and penalty issues. Taxpayers who disagree with IRS findings in their cases may request an Appeals hearing.
The local Appeals Office is separate and independent of the IRS office that proposed the tax adjustment, collection action, or penalty.
During FY 2015, the IRS Appeals Office received 113,870 new cases and closed 117,673 cases, including those received in a prior fiscal year
Highlights of the Data for expenditures
• IRS’ actual expenditures for Fiscal Year (FY) 2015 were $11.4 billion for overall operations in FY 2015, down from almost $11.6 billion in FY 2014
• Taxpayer Services funding, which includes processing for tax returns and related documents, and assistance to taxpayers filing returns and paying taxes due, accounted for $2.2 billion
• Enforcement funding, which includes the examination of tax returns, collection of balances due, and administrative and judicial settlement of taxpayer appeals of examination findings, represented $4.8 billion. This funding also provided resources to strengthen enforcement aimed at reducing invalid claims and erroneous filings associated with the Earned Income Tax Credit (EITC) program
• Operations Support provides administrative services, policy management, and IRS-wide support.
This appropriation also funds staffing, equipment, and related costs used to manage, maintain, and operate critical information systems supporting tax administration.
The IRS spent over $4.1 billion in operations support in FY 2015
Highlights of this year’s Data Book- Various
• During FY 2015, the IRS collected more than $3.3 trillion, processed more than 243 million tax returns and other forms, and issued over $403 billion in tax refunds.
• With more than a 15-percent reduction in full-time-equivalent staffing compared to 5 years ago, operations across a number of areas were downsized, including the total number of individual tax return examinations, which decreased by 22 percent over the same time period.
• The agency’s Website continued to get heavy use with more than 493 million visits to IRS.gov in FY 2015; and one of our most popular online tools, “Where’s My Refund?”, handled a record-breaking 234 million inquiries, a 24-percent increase over the prior year.
by Jim Magary | Apr 13, 2016 | Tax Help
Get a 668A, Levy Removed Today + As Former IRS Agents and managers, we are your best course of action to immediately release a levy and settle your debt all at the same time.
We are the affordable professional firm that knows the system inside and out. We can get your levy on your income or wages released, get your money back and close your case at the same time.
Since 1982, A plus Rated BBB.
Being former IRS agents and managers we are tax specialty experts in the area of income tax levies. 668A.
We have release thousands of IRS federal tax levies both bank account levies, wage garnishment levies and third-party levies.
If you have been levied by the Internal Revenue Service you are not alone.
Last year over 1.8 million taxpayers received a Federal IRS bank levy or wage garnishment levy. Not only does IRS file 1.8 million tax levies also file over 600,000 federal tax liens.
The Tax Levy on income and wages is one of the largest collection tools used in employed by the Internal Revenue Service to collect back taxes.
What you need to know about a IRS Tax Levy 668A
There are generally two types of levies, basically a 668A and a 668W.
The 668 a levy is a one-time levy. The 668A tax levy can only be in for enforced on the day, and time of place of service.
The account that was levied has an automatic 21 day freeze which gives the taxpayer enough time to get their levy released.
If you have received this levy call us today and we will walk you through the process of getting an immediate tax release or removal of this levy. As a general rule, IRS will require a financial statement and an exit strategy by the taxpayer to deal with their debt.
As a general rule cases are either put in hardship, payment agreement status or settlement status.
What actions must the Internal Revenue Service take before a levy can be issued?
The IRS will usually only serve a Federal Tax levy only after these three requirements are met:
• The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill);
• You neglected or refused to pay the tax; and
• The IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.
The IRS may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.
Please note: If the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.
We are composed of CPAs and former IRS agents who have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
As former IRS agents we used to levy bank accounts and wage garnishments, so it only makes sense we know this process inside and out.
There is a very specific system used to get an IRS Federal tax levy released, whether it be a bank levy or wage garnishment levy.
Being former IRS agents we know the system and can get immediate results. Not only were we former IRS agents and teaching instructors we also taught new IRS agents or jobs.
We understand all the systems, formulas, and all the protocols to get an immediate relief of a IRS tax levy. Knowing the system makes this a streamlined process and is able to get faster and quicker tax relief.
Not only can we stop your IRS Federal tax levy right now and settle your case at the same time.
Within 24 hours of receiving your current documented financial statement we can get an IRS bank levy or wage garnishment levy released and settle your case all at the same time.
To get your levy released we call IRS with the documented financial statement and settle on a disposition of the case and IRS at that time will fax or mail out the release while on the phone.
We will file a power of attorney contact IRS close your case off the enforcement computer.
Generally, we can do this with a couple of days. If you’ve already received the tax levy as a general rule, within 24 to 48 hours of receiving your current financial statement we can get your levy released. You will never speak to Internal Revenue Service.
IRS will close and settle your case generally one of three ways.
After a review of your current financial statement (433f ) IRS will place you either into :
1.currently not collectible status, this is also called hardship status.
2. ask you for a monthly payment agreement or and installment agreement,
3. you could submit an offer in compromise if you are a qualified and suitable candidate. When you call us on the phone we will go over the offer in compromise program with you.
We will review with you your options to find out which is the best fit based on your current financial condition. Remember, your documented financial statement holds the key.
Call us today for a free initial tax consultation.
Received IRS Levy Form 668A + Release Levy NOW
by Jim Magary | Apr 13, 2016 | Tax Help
If you need to amend your tax return and need professional help. We are a full-service tax firm that specializes in the filing of tax returns, amended tax returns and the settlement of IRS tax debt. As former IRS agents we know the system.
How to Amend Your Tax Return
You can fix mistakes or omissions on your tax return by filing an amended tax return.
1. Must be filed on paper.
Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct your tax return. It can’t be e-filed. You can get the form on IRS.gov/forms at any time.
See the Form 1040X instructions for the address where you should mail your form.
2. Amend to correct errors.
File an amended tax return to correct errors or make changes to your original tax return. For example, you should amend to change your filing status, or to correct your income, deductions or credits.
3. Don’t amend for math errors, missing forms.
You normally don’t need to file an amended return to correct math errors on your original return.
The IRS will automatically correct those for you. Also, do not file an amended return if you forgot to attach tax forms, such as a Form W-2 or a schedule.
The IRS will mail you a request for them in most cases.
4. Form 1095-A, Health Insurance Marketplace Statement, errors.
Some taxpayers may receive a second Form 1095-A because the information on their initial form was incorrect or incomplete.
If you filed a 2015 tax return based on the initial Form 1095-A and claimed the premium tax credit using incorrect information from either the federally-facilitated or a state-based Health Insurance Marketplace, you should determine the effect the changes to your form might have on your return.
Comparing the two Forms 1095-A can help you assess whether you should file an amended tax return, Form 1040X.
5. Three-year time limit.
You usually have three years from the date you filed your original tax return to file Form 1040X to claim a refund. You can file it within two years from the date you paid the tax, if that date is later.
That means the last day for most people to file a 2012 claim for a refund is April 18, 2016 (April 19 for taxpayers in Maine and Massachusetts).
See the Form 1040X instructions for special rules that apply to some claims.
6. Separate forms for each year.
If you are amending more than one tax return, prepare a 1040X for each year. You should mail each year in separate envelopes.
Note the tax year of the return you are amending at the top of Form 1040X. Check the form’s instructions for where to mail your return.
7. Attach other forms with changes.
If you use other IRS forms or schedules to make changes, make sure to attach them to your Form 1040X.
8. When to file for corrected refund.
If you are due a refund from your original return, wait to get it before filing Form 1040X to claim an additional refund. Amended returns take up to 16 weeks to process.
9. Pay additional tax.
If you owe more tax, file your Form 1040X and pay the tax as soon as you can to avoid possible penalties and interest from being added to your account.
Use IRS Direct Pay to pay your tax directly from your checking or savings account.
10. Track your amended return.
You can track the status of your amended tax return three weeks after you file with ‘Where’s My Amended Return?’ It is available in English, Spanish, Chinese, Vietnamese and Russian.
The tool can track the status of an amended return for the current year and up to three years back. If you have filed amended returns for multiple years, you can check each year, one at a time.
