by Fresh Start Tax | Apr 27, 2014 | Tax Help
Call Former IRS agents who Know the system, since 1982.
Being a former IRS and being in the tax resolution business for over 40 years, this is a question that I have been asked hundreds and hundreds of times by taxpayers who have not filed multiple back tax years.
If you need any help in this area contact us today for free initial tax consultation and speak to former IRS agents. We can file all your back tax returns and workout effective tax settlement.
IRS Policy Statement 5-133
Delinquent returns—enforcement of filing requirements
Taxpayers failing to file tax returns due will be requested to prepare and file all such returns except in instances where there is an indication that the taxpayer’s failure to file the required return or returns was willful or if there is any other indication of fraud.
All delinquent returns submitted by a taxpayer, whether upon his/her own initiative or at the request of a Service representative, will be accepted.
However, if indications of willfulness or fraud exist, the special procedures for handling such returns must be followed.
Where it is determined that required returns have not been filed, the extent to which compliance for prior years will be enforced will be determined by reference to factors ensuring compliance and evenhanded administration of staffing and other Service resources.
Factors to be taken into account include, but are not limited to:
- prior history of noncompliance,
- existence of income from illegal sources,
- effect upon voluntary compliance, anticipated revenue, and
- collectibility, in relation to the time and effort required to determine tax due.
- Consideration will also be given any special circumstances existing in the case of a particular taxpayer, class of taxpayer, or industry, or which may be peculiar to the class of tax involved.
Normally, application of the above criteria will result in enforcement of delinquency procedures for not more than six (6) years.
Enforcement beyond such period will not be undertaken without prior managerial approval.
Also, if delinquency procedures are not to be enforced for the full six year period of delinquency, prior managerial approval must be secured.
Need help with any matter with Internal Revenue Service calls today to hear the truth. free consultations available.
by Fresh Start Tax | Apr 26, 2014 | Tax Help
I am a former IRS agent in revenue officer. I was also a teaching instructor for the IRS. Let me introduce you to the IRS wonderful collection process.
The IRS Collection Process
If you do not pay in full when you file your tax return, you will receive written notice of the amount you owe, a bill.
This bill starts the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax; for example, when the time period for collection has expired.
As a general rule the collection statute of limitation is 10 years.
The first IRS billing notice
The first notice you receive will be a letter that explains the balance due and demands payment in full.
It will include the amount of the tax, plus any penalties and interest added to your unpaid balance from the date the tax was due.
It is an easy and soft letter from the IRS gently asking you to pay your back taxes you owe the IRS.
If you cannot pay your back tax balance you should call us today so we can go ahead and try to settle your tax debt on the money you will IRS on your back taxes.
The unpaid balance is subject to interest that will compound daily and to a monthly late payment penalty.
It is in your best interest to pay your tax liability in full as soon as you can to minimize additional charges.
IRS has two programs you may qualify for if you cannot pay your current backs tax debt.
After IRS takes a detailed financial statement they could possibly put you into an economic tax hardship or require a monthly installment agreement.
If you cannot full pay under an installment agreement you may propose an Offer in Compromise (OIC).
An OIC is an agreement between a taxpayer and the IRS that resolves the taxpayer’s tax liability by payment of an agreed upon reduced amount.
Current Tax Hardships
If you are unable to pay anything because of a current financial hardship, IRS may temporarily suspend certain collection actions, such as issuing a levy until your financial condition improves.
The IRS may, however, file a Notice of Federal Tax Lien while your account is suspended.
Remember it is very important to call IRS as soon as you get a tax bill you cannot pay.
By doing so you will halt or stop the IRS enforcement computer to work out a temporary tax settlement.
Other billing notices
IRS may send up to 3 notices out upping the nastiness of the letters till they had enough and eventually send you a final notice.
Letter L- 1058 is the end of the chain.
Then enforcement takes over. Do not let this happen.
Some of the actions IRS may take to collect taxes include:
- Filing a Notice of Federal Tax Lien
- Serving a Notice of Levy, or
- Offsetting a refund to which you are entitled
The federal tax lien
The federal tax lien is a legal claim to your property, including property that you acquire after the lien arises.
The federal tax lien arises automatically when you fail to pay in full the taxes you owe within ten days after we send our first notice of taxes owed and demand for payment, and we make an assessment of the tax.
The government also may file a Notice of Federal Tax Lien in the public records.
The Notice of Federal Tax Lien publicly notifies your creditors that the IRS has a claim against all your property, including property acquired by you after the Notice of Federal Tax Lien is filed.
The filing of a Notice of Federal Tax Lien will appear on your credit report and may harm your credit rating. No creditor will want to touch you if you have a federal tax lien filed against you.
Once a lien arises, the IRS generally cannot release the lien until the taxes, penalties, interest, and recording fees are paid in full or until the IRS may no longer legally collect the tax.
The IRS will withdraw a Notice of Federal Tax Lien if the Notice was filed while a bankruptcy automatic stay was in effect. The IRS may withdraw a Notice of Federal Tax Lien if the IRS determines that:
(1) the Notice was filed too soon or not according to IRS procedures;
(2) you enter into an installment agreement to satisfy the liability unless the installment agreement provides otherwise;
(3) withdrawal will allow you to pay your taxes more quickly; or
(4) withdrawal is in your best interest, as determined by the National Taxpayer Advocate, and the best interest of the government.
The IRS also may use a levy bank, or wages
The IRS also may use a levy(seizure) to collect taxes.
The IRS may levy assets such as wages, bank accounts, Social Security benefits, and retirement income.
The IRS also may seize your property for the purpose of selling the property to satisfy a tax debt including your car, boat, or real estate.
In addition, any future federal tax refunds or state income tax refunds that you are owed, may be applied to your federal tax liability.
Contact us today for a free initial tax consultation and let us help work out a tax settlement if you owe IRS back taxes.
by Fresh Start Tax | Apr 26, 2014 | Tax Help
Nothing like Planning Ahead to save tax dollars
Make Plans Now for Next Year’s Tax Return.
Most people stop thinking about taxes after they file their tax return.
But there’s no better time to start tax planning than right now. And it’s never too early to set up a smart record keeping system.
Here are six tips to help you start to plan for this year’s taxes from Fresh Start Tax LLC:
1. Take action when life changes occur.
Some life events, like a change in marital status, the birth of a child or buying a home, can change the amount of taxes you owe.
When such events occur during the year, you may need to change the amount of tax taken out of your pay.
To do that, you must file a new Form W-4, Employee’s Withholding Allowance Certificate, with your employer. Use the IRS Withholding Calculator on IRS.gov to help you fill out the form.
If you receive advance payments of the premium tax credit it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace.
2. Keep records safe.
Put your 2013 tax return and supporting records in a safe place.
That way if you ever need to refer to your return, you’ll know where to find it. For example, you may need a copy of your return if you apply for a home loan or financial aid.
You can also use it as a guide when you do next year’s tax return.
We recommend cloud storage space through some Internet provider.
3. Stay organized.
Make sure your family puts tax records in the same place during the year.
This will avoid a search for misplaced records come tax time next year.
4. Shop for a tax preparer.
If you want to hire a tax preparer to help you with tax planning, start your search now. Choose a tax preparer wisely.
You are responsible for the accuracy of your tax return no matter who prepares it.
5. Think about itemizing.
If you usually claim a standard deduction on your tax return, you may be able to lower your taxes if you itemize deductions instead.
A donation to charity could mean some tax savings.
See the instructions for Schedule A, Itemized Deductions, for a list of deductions.
6. Keep up with changes.
Subscribe to IRS Tax Tips to get emails about tax law changes, how to save money and much more. You can also get Tips on IRS.gov or IRS2Go, the IRS’s mobile app.
The IRS issues tips each weekday in the tax filing season and three days a week in summer.
Remember, a little planning now can pay off big at tax time next year.
Tax Return Planning, Prepare For Next Year, Former IRS Agent, Fresh Start Tax LLC
by Fresh Start Tax | Apr 25, 2014 | Tax Help
If you are having a problem with the Internal Revenue Service or the state of Florida, Department of revenue, Sales Tax Division, contact us today for a free initial tax consultation and speak directly to a former IRS auditor or IRS state agent.
We’ve been in practice since 1982 and are A+ rated by the Better Business Bureau.
We have over 78 years of both IRS and state of Florida government experience.
Our staff has worked in the local, district, and regional tax offices of the Internal Revenue Service and Florida Sales Tax.
The FST staff is comprised of tax attorneys, tax lawyers, certified public accountants, former IRS agents and managers, and former state of Florida Department of revenue tax auditors.
We have over 206 years of professional tax experience.
What is an IRS or State Tax Return audit?
An IRS audit is a examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.
Why you may have been selected to a IRS or State Tax Audit
Selecting a federal or state tax return for audit does not always suggest that an error has been made.
Tax returns are selected using a variety of methods including:
1. Random selection and computer screening, sometimes returns are selected based solely on a statistical formula.
2. Document matching ,when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
3. Related examinations, tax returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.
4. You may have been turned in by a third party such as a spouse or employee.
5. Some time is it a cross reference audit, example of this is a corporate return is being audited in the IRS or state feels the individual’s tax return should be altered as well.
6. Your tax return has fallen out of the national norms.
IRS or State Tax Return Audit Methods
An audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The interview may be at an IRS or State office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit).
The IRS/State will tell you what records are needed.
Audits can result in no changes or changes. Any proposed changes to your return will be explained.
IRS & State Tax Return Audit Notification
Should your account be selected for audit, you will be notified in two ways:
1. By mail, or
2. By telephone
In the case of a telephone contact, the IRS will still send a letter confirming the audit. E-mail notification is not used by the IRS or the State at this time.
Your Rights During an IRS or State Tax Audit
Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
These rights include:
- A right to professional and courteous treatment by IRS/State employees.
- A right to privacy and confidentiality about tax matters.
- A right to know why the IRS/State is asking for information, how the IRS /State will use it and what will happen if the requested information is not provided.
- A right to representation, by oneself or an authorized representative.
- A right to appeal disagreements, both within the IRS/State and before the courts.
Usual Tax Audit Lengths
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement.
Call us today for a free initial tax consultation on IRS or state tax return audit.
We are the affordable tax experts who can represent and defend your best interest.
IRS & State Tax Return Audits – Affordable Expert Representation Help – Jacksonville, Tax Attorneys, Former IRS, State Agents
by Fresh Start Tax | Apr 25, 2014 | Tax Help
We are the AFFORDABLE Florida specialty firm that specialize in IRS Tax Problem Help and Tax Debt Relief.
We have practiced in the state of Florida since 1982 and are A+ rated by the Better Business Bureau.
We have over 60 years of directly working for the Internal Revenue Service and the state of Florida.
We have worked in a local, district, and regional tax offices of the IRS.
We know all the systems, strategies and formula used by the IRS because we taught them to new IRS agents.
We know what they know.
How to Settle Back Tax Debt with the IRS, former IRS Agent
I am a former revenue officer and teaching instructor and have worked in Florida’s IRS office.
To settle any back debt with the Internal Revenue Service you will need to submit a current financial statement along with all documentation. Form 433-F
Along with that financial statement IRS will need to review current monthly expenses. copy last three months of bank statements, and copy in your last pay stub.
Once IRS reviews your financial statement they will make a determination on how they will proceed and work with your case.
As a general rule, after a financial analysis the Internal Revenue Service will either place you into an economic tax hardship, insist on a monthly payment agreement or let you know you are a qualified candidate for offer in compromise or a tax debt settlement.
It is important you have a qualified professional fill out your current financial statement.
Please find below information regarding the offer in compromise or tax debt settlement.
Offer in Compromise – Tax Debt Relief
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 considers all your unique set of facts and circumstances such as:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
IRS generally approves an offer in compromise when the amount offered represents the most IRS can expect to collect within a reasonable period of time.
The Offer in Compromise program is not for everyone.
Make sure you are eligible.
Check out the pre qualifier toll on our website.
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
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:
1. Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
2. Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
3. $186 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Selecting 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.
Call us today for free initial tax consultation and we can walk you through the different strategies to resolve any IRS tax problem you have and settle your back tax debt that you have and get you immediate and permanent tax relief.
