by Fresh Start Tax | Feb 14, 2014 | Tax Audit, Tax Help
How to Defend Yourself in a IRS Appeal Case
After many taxpayers get audited by the Internal Revenue Service they find themselves in a situation in which the government is asking for dollars above and beyond what seems fair.
After your audit with the IRS you have appeals rights. Many times the appellate officer is just trying to close his or her case without understanding your point. Be persistent.
Do not give up. Because you have an alternative dispute resolution options that few people know about.
Know the system so you can fight and win.
Alternative Dispute Resolution
Fast Track Settlement (Large Business and International Division Taxpayers)
Fast Track Settlement (FTS) offers Large Business and International Division (LB&I) taxpayers a way to resolve audit issues during the examination process in less than 120-days.
Working with LB&I and Appeals, taxpayers can use the settlement authority and mediation skills of Appeals to shorten their overall experience with the Internal Revenue Service.
FTS reduces the combined LB&I-Appeals process time by two years.
Fast Track Settlement (Small Business and Self-Employed Taxpayers)
Small Business/Self-Employed and Appeals have designed an alternative dispute resolution strategy for small business and self-employed taxpayers, called the SB/SE Appeals Fast Track Settlement.
The FTS program was designed to resolve audit issues during the examination process within a goal of 60 days from acceptance of the application in Appeals.
The process uses the settlement authority and mediation skills of Appeals.
SB/SE and Appeals has now expanded the program nationwide.
A taxpayer who is interested in participating in the SB/SE FTS, or who has questions about the program and its suitability for the taxpayer’s case, may contact the Examination or Specialty Program group manager.
To apply for the SB/SE FTS program, the taxpayer and the group manager need to submit Form 14017, Application for Fast Track Settlement, and the taxpayer’s brief, concise and soundly written response to the Service’s position.
Fast Track Settlement (Tax Exempt and Government Entities Taxpayers)
On December 1, 2008, Tax Exempt and Government Entities (TE/GE) and Appeals announced a Fast Track Settlement program for TE/GE taxpayers.
The program gives TE/GE taxpayers under examination by any of the five business units within TE/GE an opportunity to resolve their disputes within 60 days of acceptance into the program.
An Appeals officer trained in TE/GE issues will mediate the issues and, when necessary, utilize Appeals settlement authority to resolve the issues.
Announcement 2008-105, 2008-48 IRB 1219 explains the eligibility requirements and types of cases excluded from the program. TE/GE includes Employee Plans, Exempt Organizations, Indian Tribal Governments, Federal/State/Local Governments and Tax Exempt Bonds.
Fast Track Mediation (Small Businesses and Self-Employed Taxpayers)
Fast Track Mediation (FTM) gives Small Businesses, Self-Employed (SE/SE) taxpayers and the IRS the opportunity to mediate disputes through an IRS appeals officer, who acts as a neutral party.
In this program, most tax disputes are resolved within 40 days compared to several months though the regular appeal process.
IRS offers this new service designed to expedite case resolution on disputes that arise from examination or collection actions.
The IRS does not like to let people know about this process because it slows down cases in their inventory always understand you can appeal within the appeal.
Early Referrals
Taxpayers whose returns are under the jurisdiction of Examination or Collection may request the transfer of a developed but unagreed issue to Appeals.
Examination or Collection will continue to develop those issues not referred to Appeals. The early resolution of a key issue may encourage taxpayers and the Service to agree on other issues in the case.
Early referral can also be requested with respect to issues regarding an involuntary change in method of accounting, employment tax, employee plans and exempt organizations. Regular Appeals procedures apply, including taxpayer conferences.
Post Appeals Mediation
Mediation is available for certain cases that are already in the Appeals process only after Appeals settlement discussions are unsuccessful and, generally, when all other issues are resolved but for the issues for which mediation is being requested.
Mediation is a non-binding process that uses the services of a mediator, as a neutral third party, to help Appeals and the taxpayer reach their own negotiated settlement.
To accomplish this goal, the mediator will act as a facilitator; assist in defining the issues; and promote settlement negotiations between Appeals and the taxpayer.
The mediator will not have settlement authority in the mediation process and will not render a decision regarding any issue in dispute.
Arbitration
Arbitration is available for certain cases within Appeals jurisdiction that meet the operational requirements of the program.
Generally, this program is available for cases in which a limited number of factual issues remain unresolved following settlement discussions in Appeals. Appeals and the taxpayer will be bound by the arbitrator’s findings.
The arbitration procedure uses the services of an arbitrator either from Appeals or from an outside organization.
Simultaneous Appeals/Competent Authority
The simultaneous Appeals/competent authority procedure encourages taxpayers to request competent authority assistance and the participation of Appeals while a case is under the Examination Division’s jurisdiction. Revenue Procedure 2006-54 contains the competent jurisdiction.
Revenue Procedure 2006-54 contains the competent authority procedures. Section 8 of Rev. Proc 2006-54 specifies the circumstances under which the simultaneous appeals/competent authority procedure may be requested and describes the role of Appeals.
Contact us today for free initial tax consultation so you can learn how to defend yourself against an IRS tax audit or an IRS appeals case.
You will speak directly to tax attorneys, CPAs, or former IRS agents to review your situation and give you an honest opinion about your chances of success.
How to Help yourself in IRS Appeals Case – IRS Appeals Representation, Former IRS – IRS Audits
by Fresh Start Tax | Feb 14, 2014 | Tax Help
IRS, Sales Tax Audit Defense Representation
We are a AFFORDABLE professional tax firm that specializes in IRS and sales tax audit defense and representation.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
The Internal Revenue Service audits 1% of all tax returns and only 25% of all audits result in no additional tax being paid to the IRS. With Sales Tax , the numbers are much higher.
To minimize your damage and to assess your situation call us today for a free initial tax consultation and we will be able to give you an in-depth look on how the IRS or the state of Florida will audit and systematically review your back tax returns.
Some practical advise
The first thing you do when experiencing an IRS or sales tax audit is to put your records in a clean and systematic tax order so both the federal and the state agency see that you have an organized system of record keeping.
Being a former IRS agent I can only tell you that the first overall impression the agent gets at the first meeting is critical so look very organized.
Your documentation is the key to success.
Make sure all your tax records are together in order, labeled, and if you need to do a tax reconstruction make sure the reconstruction is orderly.
Make sure you keep all your appointments and try not to cancel unless absolutely necessary.
Being a former IRS agent I found some taxpayers who were in the habit of canceling were doing so to hide something.
If the IRS or sales tax audit is being conducted by a field agent do not invite him to your home or business. Make sure they go to the office of your representatives office. Many times when an IRS or state sales tax agent goes to a home or place of business their eyeballs wander and sometimes find things they shouldn’t.
This only makes good common sense keep them away from you and your assets. True tax professionals who truly save you a lot of money and aggravation.
If you have squeaky records you can represent yourself without any fears however.
If you’ve been very assertive or aggressive on your tax returns and you have skeletons in your closet always hire a professional tax experience who has a managed several hundred IRS or sales tax audits.
Know your rights.
Both the IRS and the sales tax audit division of the Department of revenue, state of Florida have appellate rights.
If you feel that either the federal or the state government is not being fair with you always appeal you have nothing to lose.
Be careful that you have not committed fraud so that the IRS of the state of Florida. if you feel that there is something seriously do worry about always higher and experience tax attorney to be absolutely sure you retain attorney-client privilege.
Contact us today for a free initial tax consultation and speak to true experts
We are a boutique firm that specializes in IRS, sales tax audit defense and representation.
IRS, Sales Tax Audit Defense Representation * Port Orange, Daytona, Ormond, New Smyrna Beach – Tax Problems
by Fresh Start Tax | Feb 14, 2014 | Tax Help
We are Florida’s affordable tax firm that specialize in ending IRS problems.
Since 1982, a plus rated by the BBB.
There is a fast easy process that taxpayers can make arrangements to pay the IRS.
We should know, we are a team of former IRS agents.
We handle all cases from unfiled tax returns, the IRS tax audits, IRS tax settlements and making a payment agreement that suits your financial means and capability.
You can call us today for a free initial tax consultation and we will let you know the best option for you that will quickly resolve your IRS problem.
Make Arrangements to Pay the IRS
Taxpayers do have to meet certain conditions before they can make arrangement to pay the IRS.
Please Note – To make arrangements to pay IRS, all of your tax returns must be filed.
So if you have not filed in a few years, you must do that first.
Your total balance due, including any assessed penalties and interest, must be $50,000 or less.
If you owe between $25,000 and $50,000, you have to sign up for a direct-debit payment agreement.
Direct debit is where your monthly payments are automatically deducted from your bank account.
And finally, you must be able to pay off your taxes in full in 72 months ( 6 years ) or less.
Make Arrangements to pay the IRS – Get IRS Payment Plan – Affordable, Fast – Jacksonville, Tampa, Orlando, Tallahassee
by Fresh Start Tax | Feb 13, 2014 | Tax Help
We are Florida’s affordable professional tax firm, a plus rated BBB.
The Internal Revenue Service has made the Offer in Compromise much easier than ever before.
The offer in compromise or a tax debt settlement is a binding contract between the US government and the taxpayer.
About 38% of all offers in compromise or accepted by the Internal Revenue Service.
I am a former IRS Agent and teaching Instructor. I taught the offer in compromise program while a revenue officer at the IRS.
By contacting us today we can offer you a free tax consultation to find out whether you qualify for offer in compromise, tax debt settlement.
Finally, the IRS made it easy the accept the Offer in Compromise
It took them a long time but the Internal Revenue Service finally made it easy for taxpayers to settle their tax debt through the offer in compromise.
About three years ago management of the IRS came out with the new fresh start program or fresh start initiative that help taxpayers who owed back tax debt settle with the Internal Revenue Service.
When I was a former IRS agent and teaching instructor the offer in compromise was frowned upon. Why, simply because they took so long to work and there were no guidelines.
Facts for the Offer in Compromise, Tax Debt Settlements
This last year 58,000 offers in compromise were filed and 38% of all those were accepted.
The average settlement on a dollar was $.14.
Right now the average wait to have your offer in compromise worked is four – eight months.
7500 cases right now or sitting in the IRS offer in compromise Queue.
Most taxpayers who have their offers in compromise accepted our file by professional tax firms.
The key to getting an offer in compromise settled by the Internal Revenue Service
If you want to settle your tax debt with the offer in compromise it’s all about packaging and knowing the formulas.
The easier you package the case the easier the agent can review it and accept your tax debt settlement. The more work you do the less work IRS rest does.
Our recommendation is that you fill out the forms accurately and correctly and make sure all documentation is there so IRS can process your offer in compromise all at one time.
This makes the IRS settlement easy. IRS is looking for easy. With the IRS under time constraints they cannot be spending a lot of time searching for documents. So put a nice neat file together with exhibits and page numbers.
The most common mistakes taxpayers make is the lack of documentation. if you cannot substantiate your income, expenses we are bank statements you can pretty much know that your offer and compromise, tax debt settlement will be rejected by the Internal Revenue Service.
Do not give the Internal Revenue Service or reason to reject your offer.
IRS will generally take the first road out of town and reject your offer if the packaging is incorrect. There are 7500 cases right now in the IRS queue that cannot be worked so IRS generally will reject the offer before they will tend to accept them. Basically anything on the offer in compromise financial statements that has a number on it must be verified to the Internal Revenue Service.
Documentation is key to settlement.
The key factor to settle on the lowest dollar.
To settle for the lowest hour possible you must understand the formulas.
IRS wants to get into your pocket as much as they can so they will look closely at the liquidity of your assets values and your income to expense ratios.
IRS has a system called the national standard expenses that they will apply against your income.
It is important to know national, local and geographical standards and apply them against your income.
Before any taxpayer submits an offer in compromise the taxpayer is best served by filling out and seeing for themselves that their offer has a chance to be accepted.
IRS Pre-Qualifier Tool
You can go to our homepage and click on forms and click on the link that says pre-qualifier tool for the offer in compromise.
There is a five step process that will tell you whether IRS will accept your offer in compromise.
It will take you no more than three minutes to complete this short process that will lead to know the process, understand what IRS is looking for and let you know what a potential settlement would cost in terms of the IRS acceptance.
It is best to have a professional person review your offer in compromise before it is sent to the Internal Revenue Service.
Grounds for Acceptance for the Offer in Compromise
The IRS may accept an OIC based on three grounds.
First, acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that 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.
Third, acceptance is permitted 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.
Offers in Compromise, Tax Debt Settlements
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements.
An offer in compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.
The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
Offer in Compromise, Tax Debt Settlement – Jacksonville, Tampa, Orlando, Tallahassee – Settle with the IRS
by Fresh Start Tax | Feb 13, 2014 | Offer in Compromise, Tax Help, Tax Settlements
IRS Settlement Made Easy with the Offer in Compromise
I am a former IRS Agent and teaching Instructor.
It took them a long time but the Internal Revenue Service finally made it easy for taxpayers to settle their tax debt through the offer in compromise.
About three years ago management of the IRS came out with the new fresh start program or fresh start initiative that help taxpayers who owed back tax debt settle with the Internal Revenue Service.
When I was a former IRS agent and teaching instructor the offer in compromise was frowned upon.
Acceptance Rates for the Offer in Compromise
This last year 58,000 offers in compromise were filed and 38% of all those were accepted.
The average settlement on a dollar was $.14.
Right now the average wait to have your offer in compromise worked is four – eight months.
7500 cases right now or sitting in the IRS offer Queue.
The key to getting an offer in compromise settled
If you want to settle your tax debt with the offer in compromise it’s all about packaging and knowing the formulas.
The more work you do the less work IRS rest does.
Our recommendation is that you fill out the forms accurately and correctly and make sure all documentation is there so IRS can process your offer in compromise all at one time.
This makes the IRS settlement easy. IRS is looking for easy.
The most common mistakes taxpayers make is the lack of documentation.
Do not give the Internal Revenue Service or reason to reject your offer.
IRS will generally take the first road out of town and reject your offer if the packaging is incorrect. There are 7500 cases right now in the IRS queue that cannot be worked so IRS generally will reject the offer before they will tend to accept them. Basically anything on the offer in compromise financial statements that has a number on it must be verified to the Internal Revenue Service.
Documentation is key to settlement.
The key factor to settle on the lowest dollar.
To settle for the lowest hour possible you must understand the formulas.
IRS wants to get into your pocket as much as they can so they will look closely at the liquidity of your assets values and your income to expense ratios.
IRS has a system called the national standard expenses that they will apply against your income.
It is important to know national, local and geographical standards and apply them against your income.
Before any taxpayer submits an offer in compromise the taxpayer is best served by filling out and seeing for themselves that their offer has a chance to be accepted.
You can go to our homepage and click on forms and click on the link that says pre-qualifier tool for the offer in compromise.
There is a five step process that will tell you whether IRS will accept your offer in compromise.
If IRS feels you can keep making monthly payments however because you have substantial money left over monthly, IRS could reject your offer in compromise.
That’s why it is best to have a professional person review your offer in compromise before it is sent to the Internal Revenue Service.
Three Grounds of Acceptance
The IRS may accept an OIC based on three grounds.
First, acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that 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.
Third, acceptance is permitted 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.
Other Information Offers in Compromise
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
IRS Making it Easier to Settle Tax with the Offer in Compromise – Former IRS Settlement
