by Fresh Start Tax | May 4, 2020 | Tax Help
As a Former IRS agent and teaching instructor with the Internal Revenue Service I was one of the revenue officers who taught the offer in compromise program.
I am a national expert in the subject.
Many people believe there is only one type of offer in compromise and that is the one where you can settle your debt for pennies on the dollar.
Few people know there were two other programs you could be eligible for and qualify for.
The Internal Revenue Service received 78,000 offers in compromise last year and accepted approx, 38,000 offers.
Here are the three programs that IRS has to settle or remove your tax debt.
The IRS may accept an OIC based on one of the following reasons:
• First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this criterion only when there’s a genuine dispute as to the existence or amount of the correct tax debt under the law.
These offers come about because there is an issue with the tax return or an audit and the taxpayer believes the amount of tax debt is not correct and they have proof to show that the debt is incorrect.
To make sure your offer in compromise goes through you need to show all the verification to prove that you have the correct tax liability and that the IRS is in error.
The key to this case is pure documentation. It will be like going through a tax audit to justify everything on your tax return.
• Second, the IRS can accept a compromise if there is doubt that the amount owed is fully collectible. Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Please note there is a pre-qualifier tool.
Everyone thinks they can just settle their debt for pennies on the dollar but there are many qualifications before IRS will accept that offer in compromise.
If you are going to hire a tax professional you need to make sure that person is truly qualified to settle your debt for pennies on the dollar.
There is much advertising in the space so much so that everyone believes they can settle their tax debt, but that is certainly not so.
The base rule for the offer in compromise to settle your debt for pennies on the dollar is you must make sure you are giving IRS all of the liquidity you have in your assets before IRS is going to accept the offer.
As a former IRS agent I worked and administered this program with new agents.
• Third, the IRS can accept a compromise based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Last year I believe there was one offer in compromise accepted under effective tax administration. With that said, few people know this offer in compromise exists in many more people should try to challenge or file their offers based on this.
Usually, these cases are filed because there are certain circumstances that exist such as cancer, imminent death or some unusual circumstance that IRS will look at the case and say this is in the best interest of the government.
Have questions call or ask a former IRS agent.
by Fresh Start Tax | May 4, 2020 | Tax Help
We are former IRS agents that worked out of the local IRS offices, we have over 100 years of direct IRS work experience.<><
Including in our staff, tax attorneys, lawyers, CPAs and a host of other tax professional.
The bold truth, nobody know more in dealing with IRS than Former Agents, simply put we know the system inside and out.
IRS Back Tax Relief from the true experts, Former Christian IRS Agents
FREE CONSULTS + We know the complete working system of the IRS.
We are a referring partner of Crown financial ministries.
We were managers, supervisors, agents, and brought to the regional offices to train new IRS agents, we know the system because we taught the system.
We handle all aspects of representation from a single notice, to dealing with IRS tax debt to the filing of tax returns, resolving IRS audits there is nothing we can handle, we are a full service tax firm that handles all IRS services and are A+ rated by the Better Business Bureau since 1982.
Knowing the internal workings in the system of IRS is huge advantage to settle IRS tax debt. Your current financial statement and documentation is the key to settle for less.
IRS Tax Debt
Last year 78,000 taxpayers filed for an IRS tax debt settlement in over 38% of those were accepted for average settlement a $6500 per case.
IRS tax debt forgiveness is centered around the IRS offer in compromise program.
Keep in mind this is the national average and every case depended on its own financial statement and its own set of facts. It is very possible to settle for pennies on the dollar.
There is an IRS pre-qualifier tool that you can walk through to find out if you are a certified in acceptable candidate to get an IRS tax debt settlement. On your free initial tax consultation we will walk you through the process.
If you have any back tax issues with the Internal Revenue Service or have not filed back income/business tax returns, we can settle your case all at the same time.
As a former IRS revenue officer I have worked hundreds of cases and can be very instrumentally in the settling of your case.
Why is Fresh Start Tax LLC is a much different firm than other IRS Tax Debt Settlement Companies?
We do our own work in-house, most companies sub their work out to backend offices.
We have over 100 years of direct work experience working in the local, district and regional tax offices of the IRS. We have worked as managers, instructors, and teaching agents.
Some of our staff have put on joint forums with the Internal Revenue Service. We have an excellent working relationship with Uncle Sam.
Need an Offer in Compromise + IRS Tax Debt Settlements
If you want to settle your back taxes, IRS will require a current financial statement along with full documentation.
IRS will require form 433OIC and form 656OIC to be fully documented and complete before the submission of an offer in compromise.
Select a payment option for IRS Debt Settlements, Owe Back Taxes
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. See your application package for details.
Understand the OIC process to IRS Tax Debt Settlement
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.
You Must have all tax returns filed. Over 16 million taxpayers do not file annual tax returns.
At some point if you do not file the Internal Revenue Service will catch up with you do not keep your head in the sand.
If you have not filed tax returns we can prepare your returns with little or no records do our reconstructive methods we learned IRS.
If you did not file your back tax returns, IRS can prepare them for you and you will owe more money than you should. IRS as the ability under 6020B to file for you.
If you do not respond to the IRS bills and notices they send out as a result of filing your tax returns IRS will follow-up with tax levies in the filing a federal tax liens.
We can prepare your back or on file tax returns with little or no tax records.
If the IRS has already filed your back tax returns and they are grossly inaccurate, call us today for us to file for an IRS audit reconsideration.
Do not be afraid of filing your tax returns with IRS because at some point in time they will catch up with you.
If you are undergoing an IRS tax audit, you can have a former IRS audit manager represent and defend your tax return take the case to appeals or file a tax court petition we do it all.
Call us today for a free initial tax consultation. Speak to true IRS tax experts.
LOS ANGELES + Back Tax Help * IRS Tax Debt, * Offer in Compromise Specialists + Christian Tax Debt Services Firm
by Fresh Start Tax | Apr 30, 2020 | Tax Help
We are former IRS agents that worked out of the local IRS offices, we have over 100 years of direct IRS work experience.<><
Including in our staff, tax attorneys, lawyers, CPAs and a host of other tax professional.
The bold truth, nobody know more in dealing with IRS than Former Agents, simply put we know the system inside and out.
IRS Back Tax Relief from the true experts, Former Christian IRS Agents
FREE CONSULTS + We know the complete working system of the IRS.
We were managers, supervisors, agents, and brought to the regional offices to train new IRS agents, we know the system because we taught the system.
We handle all aspects of representation from a single notice, to dealing with IRS tax debt to the filing of tax returns, resolving IRS audits there is nothing we can handle, we are a full service tax firm that handles all IRS services and are A+ rated by the Better Business Bureau since 1982.
Knowing the internal workings in the system of IRS is huge advantage to settle IRS tax debt. Your current financial statement and documentation is the key to settle for less.
IRS Tax Debt
Last year 78,000 taxpayers filed for an IRS tax debt settlement in over 38% of those were accepted for average settlement a $6500 per case.
IRS tax debt forgiveness is centered around the IRS offer in compromise program.
Keep in mind this is the national average and every case depended on its own financial statement and its own set of facts. It is very possible to settle for pennies on the dollar.
There is an IRS pre-qualifier tool that you can walk through to find out if you are a certified in acceptable candidate to get an IRS tax debt settlement. On your free initial tax consultation we will walk you through the process.
If you have any back tax issues with the Internal Revenue Service or have not filed back income/business tax returns, we can settle your case all at the same time.
As a former IRS revenue officer I have worked hundreds of cases and can be very instrumentally in the settling of your case.
Why is Fresh Start Tax LLC is a much different firm than other IRS Tax Debt Settlement Companies?
We do our own work in-house, most companies sub their work out to backend offices.
We have over 100 years of direct work experience working in the local, district and regional tax offices of the IRS. We have worked as managers, instructors, and teaching agents.
Some of our staff have put on joint forums with the Internal Revenue Service. We have an excellent working relationship with Uncle Sam.
Need an Offer in Compromise + IRS Tax Debt Settlements
If you want to settle your back taxes, IRS will require a current financial statement along with full documentation.
IRS will require form 433OIC and form 656OIC to be fully documented and complete before the submission of an offer in compromise.
Select a payment option for IRS Debt Settlements, Owe Back Taxes
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. See your application package for details.
Understand the OIC process to IRS Tax Debt Settlement
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.
You Must have all tax returns filed. Over 16 million taxpayers do not file annual tax returns.
At some point if you do not file the Internal Revenue Service will catch up with you do not keep your head in the sand.
If you have not filed tax returns we can prepare your returns with little or no records do our reconstructive methods we learned IRS.
If you did not file your back tax returns, IRS can prepare them for you and you will owe more money than you should. IRS as the ability under 6020B to file for you.
If you do not respond to the IRS bills and notices they send out as a result of filing your tax returns IRS will follow-up with tax levies in the filing a federal tax liens.
We can prepare your back or on file tax returns with little or no tax records.
If the IRS has already filed your back tax returns and they are grossly inaccurate, call us today for us to file for an IRS audit reconsideration.
Do not be afraid of filing your tax returns with IRS because at some point in time they will catch up with you.
If you are undergoing an IRS tax audit, you can have a former IRS audit manager represent and defend your tax return take the case to appeals or file a tax court petition we do it all.
Call us today for a free initial tax consultation. Speak to true IRS tax experts.
Los Angeles + Christian IRS Tax Help + Back Taxes Relief, Settlements, Payment Plans, Hardships + Since 1982
by Fresh Start Tax | Apr 29, 2020 | Tax Help
Get All Your Tax Returns Filed Immediately. File any and all tax returns. We are the affordable Christian Tax Service Firm. Since 1982. Just call for a free tax consult. Be yoked rightly.
We are a Christian Tax Services company. <><
2 Corinthians 6:14 American Standard Version (ASV)
14 Be not unequally yoked with unbelievers: for what fellowship have righteousness and iniquity?
We have over 100 years of direct IRS work experience and over 200 years of professional tax experience.
We are a referral partner of Crown Financial Ministries.
We can assure you will pay the lowest amount of tax allowed by law.
Just call us today for a free initial tax consult.
If you owe back taxes, we can settle your tax bill as well, we can handle everything.
If you have many back years do you need to file if you have not filed in a long time:
IRS Policy Statement 5-133, Delinquent Returns—Enforcement of Filing Requirements, provides a general rule that taxpayers must file six years of back tax returns to be in good standing with the IRS.
The policy also states that IRS management would have to approve any deviation from that rule.
Sometimes, IRS managers will require tax returns from even further back than six years, depending on:
• The degree of flagrancy.
• A prior history of noncompliance.
• The impact on future voluntary compliance.
• The existence of income from illegal sources.
• Whether there is minimal or no tax due.
• The IRS’s costs to secure the return versus anticipated tax revenue.
The IRS can require more back tax returns in three common situations:
As a former IRS agent there were certain cases that I found during the investigatory process that I wanted more tax returns in the policy statement allotted for.
These are the most common reasons the IRS requires returns from more than six years back:
1. There’s a large potential and collectable liability:
The IRS may extend the return requirement if the taxpayer’s wage and income information (found on wage and income transcripts) indicates a potentially large tax liability for the older, unfiled years. The most common red flags are Forms 1099-MISC, Miscellaneous Income, property sales, and large wages with no withholding.
2. There are business returns involved and monies can be collected.
The IRS will closely scrutinize business returns, for several reasons:
• Businesses often have unknown activity with potentially large balances owed.
• Businesses aren’t subject to much reporting with information statements.
• The IRS knows that businesses have the largest potential for noncompliance.
3. A revenue officer is on the case and feels something out there.
Delinquent return investigations can involve local field collection personnel (revenue officers), who perform in-depth investigations on non-filing and collection.
Because they often handle business and payroll collection, revenue officers can often require more than six years of back tax returns. But remember, the key factor it must have some collection potential.
For most individual cases when taxpayers don’t have a revenue officer, the IRS usually accepts the past six years of returns to put clients in good standing with the IRS.
The Use of IRS Transcripts
Anytime I get involved in the processing of this policy statement by IRS I pull IRS transcripts which give me a complete account history and all income records from the IRS for the past six years.
Transcripts can be helpful in completing back tax returns: It’s essential to prepare an accurate return that matches IRS records. If your records do not match up with the income shown by the Internal Revenue Service you may wind up with the mail correspondence audit.
Make sure the return reports all items on the transcript.
The Penalty Phase
Years with balances due will have associated penalties:
• Failure-to-file penalty (5% per month, maximum of 25%).
• Failure-to-pay penalty (0.5% per month, maximum of 25%); combined with the failure-to-file penalty, together they can reach a maximum of 47.5%.
• Fraudulent failure-to-file penalties triple the normal failure-to-file penalty,increasing the maximum penalty from 25% to 75%.
The IRS may have filed a return for your client: SRF tax returns
The IRS usually starts this process, called a substitute for return (SFR), about two to three three years after the due date of the return. When your client files a return to replace an SFR, the IRS will scrutinized a little more the replacement return and compare it to information statements on file. Make sure you file accurate tax returns.
Have any questions about this process call us today and hear the truth.
by Fresh Start Tax | Apr 29, 2020 | Tax Help
Most people are unaware that there are 5 types of audit reconsideration’s.
If you need help for true IRS specialists, call us today.
Get the affordable help you need.
Types of Reconsiderations –
Audit, Automated Underreporter, Substitute For Return (SFR) and Automated Substitute For Return (ASFR)
1. There are five distinct types of reconsiderations based on the type of assessment:
A. Audit Reconsideration.
An Audit Reconsideration is a process IRS uses to reevaluate the results of a prior audit where additional tax was assessed and remains unpaid, or a tax credit was reversed. If the taxpayer disagrees with the original determination he/she must provide information that was not previously considered during the original examination.
B. IMF-AUR Reconsideration is a claim for a credit or refund not previously reported or allowed, or a request for abatement of tax, penalty, and/or associated interest.
An underreported (UR), condition exists when there is income reported to IRS by payors that was not reported by the taxpayer on Form 1040, Form 1040A, Form 1040EZ, or Form 1040NR. Proposed tax adjustments are based on these UR amounts, as well as on reported income amounts for which the taxpayer failed to include the required additional taxes (e.g., Self-Employment tax.
C. BMF-AUR Reconsideration is a claim for a credit or refund not previously reported or allowed, or a request for abatement of tax, penalty, and/or interest.
BMF-AUR cases are built from two primary sources:
1. The Business Master File (BMF) which contains information reported to the IRS by taxpayers, and,
2. The Information Return Master File (IRMF) which contains information submitted by payers. The BMF file contains information reported on Form 1120, U.S. Corporation Income Tax Return, and Form 1041, U.S. Income Tax Return for Estates and Trusts.
D. SFR Reconsideration.
The SFR program is a non-filer or return delinquency program for individual and individual business non-filers who are identified via matching programs. IRS computes tax, penalty and interest using the Information Reporting Program (IRP) data and other internally available information and assesses under IRC 6020(b).
A reconsideration of SFR is an original filing of a tax return by the taxpayer requesting a decrease or increase of tax, and any associated penalty and/or interest.
E. ASFR Reconsideration.
The ASFR program is an automated non-filer or return delinquency program for individual and individual business non-filers who are identified via matching programs.
IRS computes tax, penalty and interest using the Information Return Program (IRP) data and other internally available information and assesses under IRC 6020(b).
A reconsideration of ASFR is an original filing of a tax return by the taxpayer requesting a decrease or increase of tax, penalty, and interest.
Call us today, Former IRS.
