by Fresh Start Tax | Mar 27, 2014 | Tax Help
FACTA/FBAR Help, Compliance, Representation 1-866-700-1040
We are a team of tax attorneys, tax lawyers, certified public accountants and former IRS agents managers and tax instructors.
We have over 206 years of professional tax experience in over 60 years of working directly for the Internal Revenue Service. we have been in private practice since 1982.
Instructions for New Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer U.S. Taxpayers
On June 26, 2012, the IRS announced new streamlined filing compliance procedures for non-resident U.S. taxpayers to go into effect on Sept. 1, 2012.
These procedures are being implemented in recognition that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs), Form TD F 90-22.1, but have recently become aware of their filing obligations and now seek to come into compliance with the law.
These new procedures are for non-residents including, but not limited to, dual citizens who have not filed U.S. income tax and information returns.
The address provided for in the instructions for the Streamlined Filing Compliance Procedures may only be used for returns filed under these procedures. If you have already submitted tax returns through the Streamlined Filing Compliance Procedures, you must file subsequent year returns according to regular procedures. For more information, reference the appropriate form instructions.
Description of the New Streamlined Procedure
This streamlined procedure is designed for taxpayers that present a low compliance risk.
All submissions will be reviewed, but, as discussed below, the intensity of review will vary according to the level of compliance risk presented by the submission.
For those taxpayers presenting low compliance risk, the review will be expedited and the IRS will not assert penalties or pursue follow-up actions.
Submissions that present higher compliance risk
Submissions that present higher compliance risk are not eligible for the streamlined processing procedures and will be subject to a more thorough review and possibly a full examination, which in some cases may include more than three years, in a manner similar to opting out of the Offshore Voluntary Disclosure Program.
Taxpayers utilizing this procedure will be required to file delinquent tax returns, with appropriate related information returns (e.g. Form 3520 or 5471), for the past three years and to file delinquent FBARs (Form TD F 90-22.1) for the past six years.
Payment for the tax and interest, if applicable, must be remitted along with delinquent tax returns. For a summary of information about federal income tax return and FBAR filing requirements and potential penalties, see IRS Fact Sheet FS-2011-13. (December 2011).
In addition, retroactive relief for failure to timely elect income deferral on certain retirement and savings plans where deferral is permitted by relevant treaty is available through this process. The proper deferral elections with respect to such arrangements must be made with the submission.
Under FATCA
Under FATCA, to avoid being withheld upon, foreign financial institutions (FFIs) may register with the IRS and agree to report to the IRS certain information about their U.S. accounts, including accounts of certain foreign entities with substantial U.S. owners
FFIs that enter into an agreement with the IRS to report on their account holders may be required to withhold 30% on certain payments to foreign payees if such payees do not comply with FATCA
The FATCA regulations exempt many categories of FFIs from the requirement to register and report, including
- Most governmental entities
- Most non-profit organizations
- Certain small, local financial institutions
- Certain retirement entities
FFIs include, but are not limited to:
- Depository institutions (for example, banks)
- Custodial institutions (for example, mutual funds)
- Investment entities (for example, hedge funds or private equity funds)
- Certain types of insurance companies that have cash value products or annuities
- Unless otherwise exempt, FFIs that do not both register and agree to report face a 30% withholding tax on certain U.S.-source payments made to them.
An FFI that registers on the “FATCA Registration Website” (“Website”), upon approval, will receive a Global Intermediary Identification Number (GIIN) from the IRS, unless the FFI is treated as a Limited FFI.
by Fresh Start Tax | Mar 27, 2014 | Tax Help
A plus rated the Better Business Bureau, in private practice since 1982.
We are a Florida team of tax attorneys, tax lawyers, certified public accounts and Former IRS agents.
We have over 60 years are a combined IRS experienced in the local, district and regional tax offices of Florida’s IRS.
Tax Levy
The Internal Revenue Service levies over 2 million taxpayers every year. Individuals go to work or go to write a check and find out the long arm of the Internal Revenue Service has reached into their pocketbooks by serving and administering an IRS tax Levy.
To get a tax levy released
To get an IRS tax levy released you will need to give IRS a current financial statement along with all documentation. Once the Internal Revenue Service has reviewed all relative documentation they will make the determination on how your case will close off the IRS collection computer.
As a general rule, IRS will either place you into an economic tax hardship, ask for monthly payment or let you know you should consider a tax settlement.
Once we have your IRS financial statement documented we can get your levy release within 24 hours.
IRS tax audits are actually very rare.
Believe it or not only one percent of all taxpayers go through an IRS audit.
IRS audits 1.4 million taxpayers by mail and 310,000 taxpayers by appointment.
If you are undergoing a tax audit contact us today and we will offer for you your very best tax defense. Being former IRS agents and managers we know all the systems and protocols to get you your very best tax result.
If you are going to owe back taxes to the Internal Revenue Service know that you are not alone.
Over 16 million taxpayers do not file their back tax returns that’s because they all owe money.
The Internal Revenue Service will want a current financial statement before they make a determination on how will you will move forward with them. You should also note that before IRS will work with any taxpayer they are going to want all back tax returns filed and up-to-date.
If you have not filed back tax returns and have little or no records you can call us today and we can prepare your return to reconstructive methods.
Being former IRS agents and managers we have reconstructed hundreds upon hundreds of back tax returns.
Call us today for free initial tax consultation.
We are A+ rated by the Better Business Bureau and been in private practice since 1982
IRS, Affordable * Tax Levy, Audit, Settlement, Back Tax, Filing Help + Orange Park, Lakeside, Palm Valley, Atlantic Beach
by Fresh Start Tax | Mar 26, 2014 | Tax Help
What you need to know about FATCA
Summary of FATCA Reporting for U.S. Taxpayers – You may have to report information about foreign financial assets and accounts.
The Foreign Account Tax Compliance Act (FATCA) is an important development in U.S. efforts to combat tax evasion by U.S. persons holding accounts and other financial assets offshore.
The Treasury Department and the IRS continue to develop guidance concerning FATCA.
Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets.
There are very serious penalties for not reporting these financial assets .
This FATCA requirement is in addition to the long-standing requirement to report foreign financial accounts on FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) (formerly TD F 90-22.1).
FATCA will also require certain foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
The reporting institutions will include not only banks, but also other financial institutions, such as investment entities, brokers, and certain insurance companies. Some non-financial foreign entities will also have to report certain of their U.S. owners.
If you set up a new account with a foreign financial institution, it may ask you for information about your citizenship.
FATCA now provides special (and lessened) reporting requirements about the U.S. account holders of certain financial institutions that do not solicit business outside their country of organization and that mainly service account holders resident within it.
In order to qualify for this favorable treatment the local foreign financial institution cannot discriminate by declining to open or maintain accounts for U.S. citizens who reside in the country where it is organized.
Reporting by U.S. Taxpayers Holding Foreign Financial Assets
FATCA requires certain U.S. taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report information about those assets on Form 8938, which must be attached to the taxpayer’s annual income tax return.
The reporting threshold is higher for certain individuals, including married taxpayers filing a joint annual income tax return and certain taxpayers living in a foreign country
As of January 2013, only individuals are required to report their foreign financial assets.
At a later time, a limited set of U.S. domestic entities also may have to report their foreign financial assets, but not for tax years starting before 2013.
Exceptions to the requirement
There are some exceptions to the requirement that you file Form 8938.
For example, if you do not have to file a U.S. income tax return for the year, then you do not have to file Form 8938, regardless of the value of your specified foreign financial assets.
If you report interests in foreign entities and certain foreign gifts on other forms, you may just list the submitted forms on Form 8938, without repeating the details.
You may have to complete and file other reports about foreign assets, such as FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) (formerly TD F 90-22.1), in addition to Form 8938.
Reporting Thresholds to the US
Reporting thresholds vary based on whether you file a joint income tax return or live abroad.
- If you are single or file separately from your spouse, you must submit a Form 8938 if you have more than $200,000 of specified foreign financial assets at the end of the year and you live abroad; or more than $50,000, if you live in the United States.
- If you file jointly with your spouse, these thresholds double. You are considered to live abroad if you are a U.S. citizen whose tax home is in a foreign country and you have been present in a foreign country or countries for at least 330 days out of a consecutive 12-month period.
- Taxpayers living abroad. You must file a Form 8938 if you must file an income tax return and:
- You are married filing a joint income tax return and the total value of your specified foreign financial assets is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year. These thresholds apply even if only one spouse resides abroad. Married individuals who file a joint income tax return for the tax year will file a single Form 8938 that reports all of the specified foreign financial assets in which either spouse has an interest.
- You are not a married person filing a joint income tax return and the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year.
- Taxpayers living in the United States. You must file Form 8938 if you must file an income tax return and:
- You are unmarried and the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
- You are married filing a joint income tax return and the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.
- You are married filing separate income tax returns and the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. For purposes of calculating the value of your specified foreign financial assets in applying this threshold, include one-half the value of any specified foreign financial asset jointly owned with your spouse. However, report the entire value on Form 8938 if you are required to file Form 8938.
Specified Foreign Financial Assets
Specified foreign financial assets include foreign financial accounts and foreign non-account assets held for investment (as opposed to held for use in a trade or business), such as foreign stock and securities, foreign financial instruments, contracts with non-U.S. persons, and interests in foreign entities.
There are exceptions to the reporting requirement.
For example, you do not have to report the following assets because they are not considered specified foreign financial assets:
A financial account maintained by a U.S. payor. A U.S. payor includes a U.S. branch of a foreign financial institution, a foreign branch of a U.S. financial institution, and certain foreign subsidiaries of U.S. corporations.
Therefore, financial accounts with such entities do not have to be reported.
A beneficial interest in a foreign trust or a foreign estate, if you do not know or have reason to know of the interest.
If you receive a distribution from a foreign trust or foreign estate, however, you are considered to have knowledge of your interest in the trust or estate.
An interest in a social security, social insurance, or other similar program of a foreign government.
If you have any questions contact us today and we can help and walk you through the process, 1-866-700-1040
Summary of FATCA Reporting for U.S. Taxpayers – Offshore Tax Defense Help, Representation * Tax Attorneys, * Lawyers
by Fresh Start Tax | Mar 26, 2014 | Tax Help
Let Former IRS agents and managers fight your battle. We are A plus rated by the BBB.
We know all the IRS systems and protocols and settlement formulas to get you the very best tax results possible.
I am a Sebring Resident and have a tax firm comprised of tax attorneys, tax lawyers, CPAs and former IRS agents, managers and tax instructors.
Fresh Start Tax LLC has over 206 years professional tax experience and over 60 years of combined IRS experience in the local, district, and regional tax offices of the Internal Revenue Service all in the State of Florida.
We can also represent you for any State of Florida Sales Tax Audits by the Department of Revenue.
We can resolve any tax problem that you have from a simple IRS notice or letter to going to tax court.
We have been in private practice since 1982 and we are A+ rated by the Better Business Bureau.
You may call us today for a free initial tax consultation and we can walk you through the process of ending any IRS problem that you may have.
Some Tax Facts
- The Internal Revenue Service levies approximately 2,000,000 taxpayers each year.
- The Internal Revenue Service accepts 38% of all offers in compromise filed on back tax settlements which averages out to about $.14 on a dollar.
- Over 16 million taxpayers do not file their tax returns each and every year.
- IRS audits less than 1% of all taxpayers every year.
Call us today for free initial tax consultation or come by and see me in my Sebring office.
Areas of Professional Tax Representation
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Full Service Accounting Tax Firm,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A” Plus
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- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
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Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits recall and sick sheep
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
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- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction
IRS TAX HELP * Levy, Settlement, Back Tax Filing, Audits * Former Agent* AFFORDABLE – Sebring, Lake Placid, Avon Park, Lake Wales
by Fresh Start Tax | Mar 26, 2014 | Tax Help
IRS Tax Facts:
* Over 16 million taxpayers do not file tax returns every year,
* IRS levies approximately 2,000,000 tax payers each and every year,
* IRS audits 1% of all tax returns, and
* IRS accepts 38% of all tax settlements filed with the Department of treasury.
If you need affordable tax help because of an IRS problem contact us today and speak to one of Florida’s most experienced and professional tax firms.
We are A plus rated by the BBB.
Fresh Start Tax LLC is comprised of tax attorneys, tax lawyers, certified public accountants, and former IRS agents managers and tax instructors.
With over 60 years of combined work experience in the Florida IRS offices we are one of the most experienced tax firm in the State of Florida.
We can resolve State of Florida, Department of Revenue issues as well.
- To get an IRS bank or wage levy release you will have to give IRS a current financial statement on form 433 f. You will need to have full and complete documentation. Once reviewed by the Internal Revenue Service, IRS will either put you into a payment plan, place you went to economic tax hardship, ask you to file for an offer in compromise.
- If the IRS has sent you a tax audit notice, contact us today and speak to a former IRS audit manager who can walk you through the process of the tax audit and offer you your best possible tax defense so you pay as little back taxes possible.
- If you are looking for an IRS tax settlement, you should know they are called offer in compromise. The IRS accepts 38% of all offers in compromise filed. On staff is a former revenue officer who work the offer in compromise program while employed by Internal Revenue Service. We will review your current financial statement to let you know whether you are qualified or suitable candidate for a tax settlement and proceed from there.
- If you need to file back taxes with the Internal Revenue Service and have little or no records we can reconstruct your tax returns by pulling IRS income transcripts and reconstruct your tax returns based on reconstructive methods learned at the Internal Revenue Service.No need to worry.
Call us today for a free initial tax consultation and we can offer affordable IRS help for all IRS tax situations including tax levies, tax audits and IRS tax settlement.
We are a Florida tax firm that has been practicing since 1982, A+ rated by the Better Business Bureau.
Affordable IRS Help – Taxes – Levy, Audit, Settlement, Back Filing * Jacksonville Beach, Fleming Island, Bellair-Meadowbrook, World Golf Village
