by Fresh Start Tax | Dec 17, 2020 | Tax Help
Christian IRS Tax Debt Specialists, A Team of Former IRS Agents, CPA’s and Tax Attorneys <><
Proverbs 12:15
The way of a fool is right in his own eyes, but a wise man listens to advice.
Proverbs 11:14
Where there is no guidance, a people falls, but in an abundance of counselors there is safety.
Proverbs 15:22
Without counsel plans fail, but with advisers they succeed.
How to resolve your IRS Tax Debt Problem by reading the below options.
IRS very specific methods on how they deal with your IRS tax debt.
As a former IRS agent and teaching instructor we offer free consultation of your case we can accurately tell you how IRS will resolve your case.
We’ll deal with you in a fair and honest Christian way and give you an exit strategy so you can get out of this bondage you are currently in.
We’ve been in practice since 1982 at worked thousands of cases.
There are generally 5 ways or programs that IRS has for resolving, settling or dealing with Back IRS Tax Debt.
1. By payment in full,
2. By monthly or installment payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (another way to your completely eliminate the tax debt).You will need to pull and IRS tax transcript to find out when the debt expires, it is generally 10 years from the date of assessment.
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
The most important aspect of solving IRS tax debt cases is completely dependent on the individual or business financial statements, that is the 433,a, 433f, and or the 433b.
You may find these on our website. Go to home page.
Your current documented financial statement determines all.
You must support your financial statement by documentation such as bank statements, pay stubs, copies all bills and expenses.
IRS only allows certain expenses that are considered necessary living expenses.
There are charts available on what IRS allows.You can also find them on our website.
Anything not on those charts are disallowed and this is what trips up most taxpayers. IRS sticks to a strict standard. Please charts are called the IRS national standards.
Notes of interest
All your tax returns will have to be filed before IRS will work and close and solve your case. We can file your back tax returns with or without records via tax reconstruction methods. As former IRS Agent we know exactly the approved process by the IRS.
1. IRS Hardship or Currently not Collectible.
The Internal Revenue Service places 40% of their open collection inventory into a hardship or currently not collectible status. after IRS takes your current financial statement and applies the national standards they determine you do not have the money at this time make payments or full pay the tax liability. Your case will go into hardship or currently not collectible for a period of 2 to 3 years and after that the IRS will kick the case back out to the field for another review. Please be advised that your case will come back
2. IRS Payment agreements/Monthly installments.
The Internal Revenue Service places approximately 6.5 million cases into payment or installment agreements.
There are different ways to get placed into an installment agreement and it depends on whether you can pay the tax liability off within a given period of time or you need to make monthly payments because of your current financial statement. You need to be familiar with the programs offered by Internal Revenue Service to make sure you do not get put in a situation that will default.
3. The Offer in Compromise Program
As a former IRS agent I taught the OIC program IRS.I know the stem inside and out.
Last year the Internal Revenue Service receives 78,000 offers in compromise. IRS accepted 38% of those offers in compromise for a settlement of $9500. Do not be fooled by this $9500 figure that I throw out because it’s simply a national average and varies from case to case.
There is an IRS pre-qualifier tool that you can use yourself to figure out whether you are a qualified 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 20-40 hours working an offer in compromise.
IRS uses the Accuriant search engine, Google in a variety of other searches to check on assets and histories of taxpayers and businesses.
You want to make sure you are accurate and truthful on 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.
One base rule for the offer in compromise program:
Generally IRS is only concerned about your income and assets. This includes your equity in your home, pension plans and IRA’s.You must give IRS the total equity in all your assets as a starting point.
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.
After a quick review of your current financial statement we will able to help and determine the best way to resolve your IRS problem.
Call us today for free consultation and speak to a true IRS tax professional.<><
We been in practice since 1982 and are A+ rated by the Better Business Bureau.
We have on staff tax attorneys, tax lawyers, CPAs, former IRS agents, managers and teaching instructors.
by Fresh Start Tax | Dec 3, 2020 | Tax Help
Christian IRS Tax Debt Specialists + Houston Area + How To Resolve Your Back IRS Tax Debt Problem
We are a team of Christian Tax Professionals, tax attorneys, tax lawyers, CPA’s & former IRS Agents and Teaching Instructors <><
Michael Sullivan Fresh Start Tax Expert
Proverbs 12:15
The way of a fool is right in his own eyes, but a wise man listens to advice.
Proverbs 11:14
Where there is no guidance, a people falls, but in an abundance of counselors there is safety.
Proverbs 15:22
Without counsel plans fail, but with advisers they succeed.
How to resolve your IRS Tax Debt Problem by reading the below options.
There are generally 5 ways or programs that IRS has for resolving, settling or dealing with Back IRS Tax Debt.
1. By payment in full,
2. By monthly or installment payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (another way to your completely eliminate the tax debt).You will need to pull and IRS tax transcript to find out when the debt expires, it is generally 10 years from the date of assessment.
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
The most important aspect of solving IRS tax debt cases is completely dependent on the individual or business financial statements, that is the 433,a, 433f, and or the 433b.
You may find these on our website. Go to home page.
Your current documented financial statement determines all.
You must support your financial statement by documentation such as bank statements, pay stubs, copies all bills and expenses.
IRS only allows certain expenses that are considered necessary living expenses.
There are charts available on what IRS allows.You can also find them on our website.
Anything not on those charts are disallowed and this is what trips up most taxpayers. IRS sticks to a strict standard. Please charts are called the IRS national standards.
Notes of interest
All your tax returns will have to be filed before IRS will work and close and solve your case. We can file your back tax returns with or without records via tax reconstruction methods. As former IRS Agent we know exactly the approved process by the IRS.
1. IRS Hardship or Currently not Collectible.
The Internal Revenue Service places 40% of their open collection inventory into a hardship or currently not collectible status. after IRS takes your current financial statement and applies the national standards they determine you do not have the money at this time make payments or full pay the tax liability. Your case will go into hardship or currently not collectible for a period of 2 to 3 years and after that the IRS will kick the case back out to the field for another review. Please be advised that your case will come back
2. IRS Payment agreements/Monthly installments.
The Internal Revenue Service places approximately 6.5 million cases into payment or installment agreements.
There are different ways to get placed into an installment agreement and it depends on whether you can pay the tax liability off within a given period of time or you need to make monthly payments because of your current financial statement. You need to be familiar with the programs offered by Internal Revenue Service to make sure you do not get put in a situation that will default.
3. The Offer in Compromise Program
As a former IRS agent I taught the OIC program IRS.I know the stem inside and out.
Last year the Internal Revenue Service receives 78,000 offers in compromise. IRS accepted 38% of those offers in compromise for a settlement of $9500. Do not be fooled by this $9500 figure that I throw out because it’s simply a national average and varies from case to case.
There is an IRS pre-qualifier tool that you can use yourself to figure out whether you are a qualified 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 20-40 hours working an offer in compromise.
IRS uses the Accuriant search engine, Google in a variety of other searches to check on assets and histories of taxpayers and businesses.
You want to make sure you are accurate and truthful on 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.
One base rule for the offer in compromise program:
Generally IRS is only concerned about your income and assets. This includes your equity in your home, pension plans and IRA’s.You must give IRS the total equity in all your assets as a starting point.
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.
After a quick review of your current financial statement we will able to help and determine the best way to resolve your IRS problem.
Call us today for free consultation and speak to a true IRS tax professional.
We been in practice since 1982 and are A+ rated by the Better Business Bureau. We have on staff tax attorneys, tax lawyers, CPAs, former IRS agents, managers and teaching instructors.
by Fresh Start Tax | Nov 30, 2020 | Tax Help
Penalty Relief Due to Reasonable Cause, Former IRS Agents Know the System
Reasonable Cause is based on all the facts and circumstances in your situation.
Typical Situations
The IRS will consider any sound reason for failing to file a tax return, make a deposit, or pay tax when due. Sound reasons, if established, include:
• Fire, casualty, natural disaster or other disturbances
• Inability to obtain records
• Death, serious illness, incapacitation or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate family
• Other reason which establishes that you used all ordinary business care and prudence to meet your Federal tax obligations but were nevertheless unable to do so
Note:
A lack of funds, in and of itself, is not reasonable cause for failure to file or pay on time. However, the reasons for the lack of funds may meet reasonable cause criteria for the failure-to-pay penalty.
Facts Establishing Reasonable Cause
Facts IRS will need in order to determine Reasonable Cause:
• What happened and when did it happen?
• What facts and circumstances prevented you from filing your return or paying your tax during the period of time you did not file and/or pay your taxes timely?
• How did the facts and circumstances affect your ability to file and/or pay your taxes or perform your other day-to-day responsibilities?
• Once the facts and circumstances changed, what actions did you take to file and/or pay your taxes?
• In the case of a Corporation, Estate or Trust, did the affected person or a member of that individual’s immediate family have sole authority to execute the return or make the deposit or payment?
Documents You May Need
All reasonable cause explanations require that you provide documentation to support your claim, such as:
• Hospital or court records or a letter from a physician to establish illness or incapacitation, with specific start and end dates
• Documentation of natural disasters or other events that prevented compliance
Is Interest Relief Available?
Interest cannot be abated for reasonable cause. Interest charged on a penalty will be reduced or removed when that penalty is reduced or removed. If an unpaid balance remains on your account, interest will continue to accrue until the account
by Fresh Start Tax | Nov 5, 2020 | Tax Help
Yes, the IRS can seize your IRA or other retirement account.
Yes, the IRS is exempt from state laws protecting your retirement account and can take what it wants at any time.
The IRS may seize your Keogh, 401(k), IRA or SEP by sending a letter to the administrator demanding all the money up to the amount of taxes, interest and penalties they claim you owe.
If you wish to get some of the money back, you must prove that the taking of your IRA is going to create a significant and undue economic hardship on you and your family.
The same goes for ERISA plans, but the IRS may take only the amount that is vested. If you have a right to the money, then the IRS can get to it.
Now, here’s the real bad news!!!!! Yes, more bad news.
When the IRS sizes your IRA, you must pay tax on that money as if it were distributed to you.
You don’t need to pay an early withdrawal penalty on the amount the government takes.
You do have options.
If you are concerned with the IRS and what might happen in the years to come, you can take control of your retirement account away from your administration.
Please Note:
The IRS can also seize your account if your foreign bank has a branch in the United States. Putting your IRA in HSBC or Citibank makes little sense if you have a tax issue or are concerned with government interference.
The governing IRS IRM on the subject.
5.11.6.3 (07-08-2019)
Funds in Pension or Retirement Plans
These instructions cover assets accumulated in a pension or retirement plan, as well as Individual Retirement Arrangements (IRAs). They do not deal with levying retirement income. See section IRM 5.11.6.2 above. Also see Delegation Order 5-3 (Rev-1) at IRM 1.2.44.4(23)c and IRM 5.17.3.10.19Pension and Retirement Benefits.
There are many employer and self-sponsored retirement vehicles that are not exempt from levy. These plans include, for example:
Qualified Pension, Profit Sharing, and Stock Bonus Plans under ERISA
IRAs
Retirement Plans for the Self-Employed (such as SEP-IRAs and Keogh Plans)
Because these retirement vehicles provide for the taxpayer’s future welfare, levy on the assets in a retirement account (as contrasted with income from the account) only after following the procedures set forth below.
If the taxpayer provides a signed written request to the Service to levy the assets in the retirement account, consider the taxpayer’s request to levy the account as part of the ability to pay determination.
Prior to levying pursuant to the taxpayer’s request, follow step 1 as described in paragraph (4) (consider alternatives to levy on retirement assets) and step 3 as described in paragraph (7) (determine whether the taxpayer needs the retirement assets for necessary living expenses). Document the case history and Form 15000, Request for Approval of Levy on Funds in Pension, Retirement Plans or TSP Account that the taxpayer requested the IRS to issue the levy; do not make the flagrant conduct determination in step 2 as described in paragraphs (5) and (6) below.
Follow guidance in IRM 5.15.1.28, Retirement or Profit Sharing Plans.
If the taxpayer requests the levy and you decide that the Service should levy after following steps 1 and 3 in paragraphs (4) and (7), respectively, before issuing the levy, verify that the taxpayer has received CDP rights. If the taxpayer has not received CDP rights, then follow the procedures in IRM 5.11.1.3.3,
Satisfying the Notice Requirements.
An imminent collection statute expiration date (CSED), alone, does not justify levying on retirement assets. Levying on assets in retirement accounts requires application of the procedures set forth below.
The first step in deciding whether to levy on a retirement account is to determine what property, retirement assets and non-retirement assets, is available to collect the liability. If there is property other than retirement assets that can be used to collect the liability, or if a payment agreement can be reached, consider these alternatives before issuing a levy on retirement accounts.
Also consider the expense of pursuing other assets as well as the amount to be collected. Levy determinations are made on a case-by-case basis and Revenue Officers must exercise good judgment in making the determination to levy.
See IRM 5.11.1.3.1, Pre-Levy Considerations. Document the case history with the determinations made in steps (4) through (7) below. Additionally, levying on assets in retirement accounts requires application of the following procedures.
The second step in deciding whether to levy on a retirement account is to determine whether the taxpayer’s conduct has been flagrant.
If the taxpayer has not engaged in flagrant conduct, do not levy on retirement accounts. Deciding whether the taxpayer has engaged in flagrant conduct must be done on a case-by-case basis. Keep in mind, however, extenuating circumstances may exist that mitigate the taxpayer’s flagrant conduct. See IRM 5.1.10.3.2(9)(b), Effective Initial Contact.
by Fresh Start Tax | Oct 15, 2020 | Tax Help
IRS has a provision to Release Your Federal Tax Lien through making a payment plan/debit checking plan.
If you do not have the money to pay your federal tax lien off, the IRS has options for you to remove or withdraw the federal tax lien if you can make a regular installment agreement on a debit plan for 3 months in a row.
As a former IRS agent, I can tell you the federal tax lien is crippling.I have filed my share of Federal Tax Liens. Hated too, but had too.
The IRS Federal Tax Lien.
Not only does it affect your credit scores, lines of credit, and interest rates, it basically cripples your financial life.
Several years ago the IRS made changes in their procedures to remove or withdraw your federal tax lien if you can enter certain type of payment agreement that have certain characteristics about them.
Please find below how you make that happen. If you need help with your former IRS agents and managers and tax experts in the area
You can ask IRS to Withdraw o your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement.
The General eligibility Includes:
a. You are a qualifying taxpayer (i.e. individuals, businesses with income tax liability only, and out of business entities with any type of tax debt)
b. You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
c. Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier.
d. You are in full compliance with other filing and payment requirements,
e. You have made three consecutive direct debit payments,
f. You can’t have defaulted on your current, or any previous, Direct Debit Installment.
Release Federal Tax Liens With IRS Payment Plans, Takes 90 days
