by Fresh Start Tax | Nov 4, 2014 | Tax Help
I am a Former IRS Revenue Officer and have worked thousands of cases since 1973.
Our firm is comprised of true IRS tax experts for those wishing professional and affordable services for dealing in any type of IRS problems including the settlement of IRS Payroll. Taxes.
How to deal with the IRS to get a payment agreement
When you are handling back IRS payroll tax issues there are certain things you can do to ensure your payment agreement gets accepted by the Internal Revenue Service.
Like anything else there is a system to what the Internal Revenue Service does and how they work there cases.
We can make sure you get a very reasonable IRS payment agreement.
Being Former IRS Agents and Managers we know the system.
Suggestions to heed
- Start making your current payroll tax deposits time on time:
IRS may not let you to enter into any payment arrangements for back payroll taxes until you are making your current tax deposits on time.
This is because the IRS wants to ensure that paying your back payroll taxes and this will not be a problem in the future.
Those who cannot stay current usually cannot make back payments.
As a former IRS instructor I taught new IRS Agents never to accept payment plans to those businesses who could not stay current on payroll taxes.
File all back unfiled 941 Tax Returns:
If you have any tax returns that have not been filed and are past due or late, you MUST file these back tax returns before the IRS will even consider any payment agreement to resolve your tax bill.
So, it is wise to file all back tax returns and make a current FTD’s as soon as possible.
The IRS will require your business to complete a full financial statement disclosing all of the assets, liabilities, income, and expenses of the company.
They use this financial statement to determine what kind of monthly payment they will require from you.
The IRS will pay a real close attention to your equity in your assets and also your current income statement over the last 3 to 6 months.
The Internal Revenue Service will attempt to collect as much as they possibly can on a monthly basis based on your income statement.
Being a former IRS agent I can tell you it is very critical that you use a true tax professional to handle the filling out of the financial statement and the income statements so Internal Revenue Service cannot than they should on a monthly basis leaving you with no cash flow.
Why is IRS tough on payroll taxes?
It is not a tax, just money held in trust, basicly the money is not yours.
And most importantly you must take into consideration the Trust Fund Recovery Penalty.
The IRS Trust Fund Penalty – The 6672 Penalty
Most individuals are very surprised that the IRS has the right to collect the trust fund recovery penalty (TFRP) against individuals of corporations who failed to pay their payroll taxes.
The penalties are set up to encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes or collected excise taxes.
Congress passed a law that provides for the so called trust fund taxes.
These taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount. The (TFRP) may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business. The business does not have to have stopped operating in order for the TFRP to be assessed.
Who Can Be Responsible for the Trust Fund Taxes, code section 6672
The trust fund recovery penalty may be assessed against any person who:
- Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes; and
- Willfully fails to collect or pay them
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes.
This person may be or had some of the following powers:
- An officer or an employee of a corporation;
- A member or employee of a partnership;
- A corporate director or shareholder or member;
- A member of a board of trustees of a nonprofit organization, or anyone deemed to be responsible;
- Another person with authority and control over funds to direct their disbursement.
For willfulness to exist, the responsible person:
- Must have been, or should have been, aware of the outstanding taxes; and
- Either intentionally disregarded the law or was plainly indifferent to its requirements (no fraudulent intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness.
IRS will usually ask for a 4180 Interview
You may be asked to complete an interview in order to determine the full scope of your duties and responsibilities.
This will be on form 4180 that you can find on our website.
The Internal Revenue Service does not set up the trust fund recovery penalty on all companies that own back payroll taxes it picks and chooses depending on the dollar amount and the type of case they are working.
We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service. We are also a full service tax firm.
Owe Back IRS Payroll Taxes – How to Get a IRS Payment Agreement, Former IRS Collection Agent
by Fresh Start Tax | Oct 31, 2014 | Tax Help
Have former AFFORDABLE IRS agents and managers immediately remove an IRS tax Levy, bank levy or wage garnishment & close your case.
Within 24 hours of receiving your current documented financial statement, as a general rule we can get your levy released in your case closed with the Internal Revenue Service.
We are a fast and affordable professional firm that is A+ rated by the Better Business Bureau and we have been in private practice since 1982.
Being Former IRS Agents and Managers, we know the System
As former IRS agents and managers we know the exact systems, protocols to go ahead and get your IRS tax levy released and your tax case settled.
The Internal Revenue Service will want to current financial statement on form 433F along with all documentation to support the verified financial statement.
Once in hand, the Internal Revenue Service will come up with an exit strategy and release your tax levy at the same time.
As a general rule your case will either be put into:
- an economic tax hardship,
- IRS will ask you to make a monthly payment and the IRS may also recommend you settle your case with an IRS offer in compromise.
Tax Settlements, Offers in Compromise
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 will consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
We will sure you are eligible
Before we 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.
Will we also use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Important Note
It is important for you to know that the Internal Revenue Service will want all tax returns filed, current and up-to-date.
If you need to file back tax returns contact us today and we will have a former IRS agents prepare your tax returns to assure your paying the lowest amount allowed by law.
Call us today for initial consultation.
IRS Help – Tax Levy, Bank, Wage Garnishment Levies, Fast Settlement Removals – Naperville, Elgin, Waukegan, Cicero
by Fresh Start Tax | Oct 31, 2014 | Tax Help
Health Care Tax Credit – Small Employers Should Check Out the
New and existing small employers who do not yet benefit from the Small Business Health Care Tax Credit should look into whether the credit can help them provide insurance to their employees.
For tax years beginning in 2014 and after, the maximum credit is 50 percent of premiums paid for small business employers, and 35 percent of premiums paid for tax-exempt small employers, such as charities.
Beginning in 2014, a small employer may qualify for the credit if:
- It has fewer than 25 employees who work full-time, or a combination of full-time and part-time. For example, two half-time employees equal one full-time employee for purposes of the credit.
- It pays premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program Marketplace or qualifies for an exception to this requirement.
The average annual wages of full-time equivalent employees are less than $51,000. The annual average wages will be adjusted annually for inflation.
It pays a uniform percentage for all employees that is equal to at least 50 percent of the premium cost of the insurance coverage.
The credit is available to eligible employers for two consecutive taxable years.
A small business employer who did not owe tax during the year can carry the credit back or forward to other tax years.
Also, since the amount of the health insurance premium payments is greater than the total credit claimed, eligible small employers can still claim a business expense deduction for premiums in excess of the credit.
For tax-exempt small employers, the credit is refundable. Even if the tax-exempt small employer has no taxable income, it may be eligible to receive the credit as a refund so long as it does not exceed its income tax withholding and Medicare tax liability.
More information
More information about the Small Business Health Options Program Marketplace – better known as the SHOP Marketplace – including the Federally Facilitated Marketplace, is available at HealthCare.gov .
Find out more about the small business health care tax credit at IRS.gov/aca.
by Fresh Start Tax | Oct 30, 2014 | Tax Help
As Former IRS Agents and Managers we know the system.
We are the Affordable Professional Tax Firm for resolving your IRS Back Tax Debt Problems.
We are A plus rated by the BBB. We have been in practice since 1982.
We are experts if you owe Back IRS Taxes and need immediate IRS Tax debt relief.
Searching the Internet for IRS tax help,I would urge caution.
In searching the Internet you will find many advertisers in the vertical of owing IRS back taxes.
A closer look at many of these Internet firms, you will find that many are no more than lead generations.
Check out there sites, there are no bio’s of professionals, because there are none.
Lead generation companies are advertisers who farm and sell your information to third parties who will pay the highest amount of money for your information.
Sometimes up to $90 a shot.
As a result, you never know who’ll wind up with your personal information.
Fresh Start Tax LLC is a true IRS tax resolution firm specializing individuals, companies, corporations that owe back IRS taxes. A plus rated BBB.
Our firm is staffed with IRS tax attorneys, tax lawyers, certified public accountants, enrolled agents and former IRS revenue officers.
Our former IRS staff has over 60 years of professional tax experience in the local, district, and regional tax offices of the Internal Revenue Service.
There are variety of solutions available for taxpayers who will IRS back taxes.
If you are going to owe back taxes to the Internal Revenue Service, the IRS will require a current financial statement usually on form 433-F.
Once IRS sees that form documented and verified they will close your case off the enforcement computer.
Two general ways in which IRS will close your case.
1. Through a economic tax hardship, which means you don’t have enough money to cover your current expenses within the necessary standards.
2. The other is that you can make a payment based on your current income and expenses.
The third option is the possibility of an offer in compromise called a tax debt settlement.
Over 38% of all those who apply qualify for the offer in compromise program.
Call us today for a free initial tax consultation and we will walk you through the process of resolving permanently, efficiently and affordably your IRS back tax debt problems.
If you owe back taxes and problems we are the affordable tax experts.
Call us today for a free initial tax consultation and hear the truth about your case.
We are honest, experienced and the affordable tax experts for owing IRS back taxes.
Hire the best for the same fees.
Owe IRS Back Taxes, IRS Tax Debt Relief, Offer in Compromise = Former IRS Affordable – Downey Cambridge, New Bedford, Brockton, Quincy
by Fresh Start Tax | Oct 30, 2014 | Tax Help
Various Tax Benefits Increase Due to Inflation Adjustments for the year 2015
For tax year 2015, the Internal Revenue Service announced today annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2014-61 provides details about these annual adjustments.
The tax items for tax year 2015 of greatest interest to most taxpayers include the following dollar amounts :
- The tax rate of 39.6 percent affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), up from $406,750 and $457,600, respectively. The other marginal rates – 10, 15, 25, 28, 33 and 35 percent – and the related income tax thresholds are described in the revenue procedure.
- The standard deduction rises to $6,300 for singles and married persons filing separate returns and $12,600 for married couples filing jointly, up from $6,200 and $12,400, respectively, for tax year 2014. The standard deduction for heads of household rises to $9,250, up from $9,100.
- The limitation for itemized deductions to be claimed on tax year 2015 returns of individuals begins with incomes of $258,250 or more ($309,900 for married couples filing jointly).
- The personal exemption for tax year 2015 rises to $4,000, up from the 2014 exemption of $3,950. However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $258,250 ($309,900 for married couples filing jointly). It phases out completely at $380,750 ($432,400 for married couples filing jointly.)
- The Alternative Minimum Tax exemption amount for tax year 2015 is $53,600 ($83,400, for married couples filing jointly). The 2014 exemption amount was $52,800 ($82,100 for married couples filing jointly).
- The 2015 maximum Earned Income Credit amount is $6,242 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $6,143 for tax year 2014. The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds and phaseouts.
- Estates of decedents who die during 2015 have a basic exclusion amount of $5,430,000, up from a total of $5,340,000 for estates of decedents who died in 2014.
- For 2015, the exclusion from tax on a gift to a spouse who is not a U.S. citizen is $147,000, up from $145,000 for 2014.
- For 2015, the foreign earned income exclusion breaks the six-figure mark, rising to $100,800, up from $99,200 for 2014.
- The annual exclusion for gifts remains at $14,000 for 2015.
- The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) rises to $2,550, up $50 dollars from the amount for 2014.
- •Under the small business health care tax credit, the maximum credit is phased out based on the employer’s number of full-time equivalent employees in excess of 10 and the employer’s average annual wages in excess of $25,800 for tax year 2015, up from $25,400 for 2014.
Details on these inflation adjustments and others not listed in this release can be found in Revenue Procedure 2014-61, which will be published in Internal Revenue Bulletin 2014-47 on Nov. 17, 2013.
The pension limitations for 2015 were announced on Oct. 23, 2014
