by Fresh Start Tax | Nov 18, 2013 | Tax Help
Business Tax Help
If you are looking for business tax help call us today for free initial consultation.
We’ve been in practice since 1982 right here in South Florida and are A plus rated by the Better Business Bureau.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors.
We have over 206 years professional tax experience and over 60 years of working directly for the Internal Revenue Service.
We also have a former Department of revenue sales tax agent who has over 16 years with Florida Department of Revenue.
We can help with all your business, accounting, federal and state tax needs.
We also provide Tax, Accounting, Bookkeeping and Quick books services to our Small Business Clients in the South Florida area.
Fresh Start Tax LLC can provide qualified accounting professionals who can ensure that your financial records are maintained correctly and accurately.
We can also help Audit Proof your tax returns.
Our bookkeepers can also assist in setting up and training your staff on the financial systems that you might be using or installing, such as Quick Books or other accounting systems.
We will work closely work with you to ensure that your personal or business processes are conducted in a manner that ensures ongoing integrity in your financial transactions.
We are a concierge business tax help office. We build life long relationships with our clients.
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
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
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
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction
- 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
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Business Tax Help
Business Tax Help – Affordable IRS & State Representation – Ft.Lauderdale, Miami – South Florida
by Fresh Start Tax | Nov 18, 2013 | Offer in Compromise
IRS Offer in Compromise
We are a South Florida tax firm that has been practicing right here in South Florida since 1982.
We are A+ rated by the Better Business Bureau.
We are comprised of tax attorneys, CPAs, and former IRS agents, managers and tax instructors who worked right here out of the local South Florida IRS offices.
Many Internet companies and tax professionals claim to be offer in compromise specialist. The truth of the matter, very few are what they say.
I am a former IRS agent and revenue officer with the Internal Revenue Service. I not only worked the program (OIC) at the Internal Revenue Service, I settled cases as a former IRS agent and then became an IRS instructor for the offer in compromise program.
What you are hearing is from the horses mouth.
A Word of Caution
I would caution any taxpayer before filing the IRS offer in compromise that they should walk through the pre-qualifier tool on our website.
They can find out firsthand whether they are in IRS offer in compromise candidate to settle their tax debt with the Internal Revenue Service.
The form is very simple.
Should you have any questions about the form contact me today and I will walk you through the program.
Give your money to no person unless you know you’re a qualified and suitable candidate to file an IRS offer in compromise.
Facts about IRS Offer in Compromise
1. IRS accepts 38% of all offers in compromise.
2. The average settlement for an awful compromise is $.14 on the dollar.
3. There are 58,000 offers in compromise filed in the United States each and every year.
4. There are currently, there are 7500 cases in the offer compromise Queue.
5. The average offer in compromise takes 6 to 9 months to work.
6. All accepted offers in compromise are open the public inspection in the regional offices for one year after accepted.
What is a IRS Offer in Compromise
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the tax liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
Eligibility for the OIC
In order to be eligible for an OIC, the taxpayer must have:
- filed all tax returns,
- made all required estimated tax payments for the current year, and
- made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
The IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP). The Internal Revenue Service goes in great depth to analyze and IRS offer in compromise. Since IRS is 10 years to collect the money they will make sure that it is the most amount of money they can collect over the ten-year period which is a statute of limitation.
The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. Remember this figure includes pensions, IRA’s could apply if you are a beneficiary of some sort.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
The IRS may accept an OIC based on three grounds.
1. 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.
2. 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.
3. 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.
Forms to Use for a IRS Offer in Compromise
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of:
- Form 656 (PDF), Offer in Compromise, and
- also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or
- Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
- A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
Application fee for a IRS Offer in Compromise
A taxpayer must submit a $150 application fee with the Form 656.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. The fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
Exception Applies
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
How to Pay a IRS Offer in Compromise
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A lump sum offer
A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted. If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $150 application fee. The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability.
The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
Periodic payment offer
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee.
This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. These amounts are also nonrefundable.
These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
The statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
Doubt as to Collectibility and Effective Tax Administration, Offers in Compromise
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties. Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
If IRS rejects the OIC
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
IRS Appeals for the Offer in Compromise
The appeal must be made within 30 days from the date of the letter. In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer. You can submit as many offers in compromises as you wish. There is no restriction.
Before you submit any IRS offer in compromise is important that you understand the system to terms and the different types of offers in compromise.
Call us today for free initial tax consultation and we will walk you through the IRS offer in compromise program.
Do not be fooled by imitators that are on Internet sites who claim to be able to settle your tax debt for pennies on the dollar.
There is a high degree of professional skill needed and necessary to get your IRS offer in compromise accepted. I should know I am a former IRS agent who worked the offer in compromise program at the Internal Revenue Service.
IRS Offer in Compromise – Former IRS Settlement Agent – How to Settle with IRS – Miami, Ft.Lauderdale
by Fresh Start Tax | Nov 18, 2013 | Tax Help
Income Tax Help – File, Settlements 1-866-700-1040 / 954-492-0088
We are South Florida’s affordable Tax Firm
If you are in the need of income tax help, contact us today and speak directly to former IRS agents and managers who have over 60 years of professional tax experience working directly for the Internal Revenue Service.
We have worked in the local, district, and regional tax offices of the Internal Revenue Service.
We have worked as IRS agents, managers, and tax instructors right here and the local South Florida IRS offices.
We have over 206 years of professional tax experience and have been in private practice since 1982.
We can file all your income tax returns file any back tax returns of necessary and should you owe tax we can work on tax settlement with the Internal Revenue Service.
We are A+ rated by the Better Business Bureau.
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
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
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
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction
- 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
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
Income Tax Help – File, Settlements – Affordable Since 1982 – Ft.Lauderdale, Miami
by Fresh Start Tax | Nov 14, 2013 | Tax Help
Offer in Compromise
We are comprised of former IRS agents, managers and tax instructors who have worked in the local South Florida IRS offices for a combined 60 years.
We have worked in the IRS offer in compromise program as revenue officers and appeal agents.
As a result, we know all protocols and settlement formulas to get you true tax relief if you are a qualified candidate for an offer in compromise.
The Internal Revenue Service is now settling cases with taxpayers and that never used to be the case.
Over 38% of all offer and compromises are accepted by the Internal Revenue Service. They take around 6 months to process.
The average settlement is $.14 on the dollar.
IRS has over 58,000 offers filed every year and currently has over 7000 cases waiting in the queue to be worked.
All accepted offers in compromise are a matter of public record in the regional offices for one year.
This ancient program, the OIC, as been around for tens of years and the Internal Revenue Service in days past have been absolutely stubborn accepting offers in compromise.
One of the reasons IRS has been sluggish on accepting offers is the amount of time that it takes for a revenue officer or appellate agent to put through an offer in compromise and work it properly. It can take anywhere between 20 and 30 hours.
It is much easier for an IRS agent to reject the offer than to accept an offer.
The key about the offer in compromise is in packaging and understanding that you are a qualified candidate.
The New Fresh Start Program.
With the advent of the new fresh start initiative or fresh start program, the Internal Revenue Service has learned in many cases the only time the government has a chance of collecting the money is through a settlement procedure.
Since the IRS has began accepting offers in compromise, they have received millions of dollars into the IRS coffers that never would’ve been received in the past.
They finally have got smart and they have started accepting the offer in compromise.
That is the easiest way that IRS tax relief can be achieved for taxpayers.
It gets IRS off the taxpayers back once and for all in it also goes ahead and releases the federal tax lien for good.
I would caution all people before filing an offer in compromise.
As a former IRS agent I have seen many tax professionals and Internet companies especially, try to put offers in compromise through the system that never have a chance in hell of getting accepted
The offer in compromise for IRS tax relief is not for everybody.
The Internal Revenue Service has put out a pre-qualifier tool to make sure that taxpayers are qualified candidates.
You should not give your money to any tax firm or tax professional unless you understand the offer in compromise and have walk yourself through the pre-qualifier tool. We can help you walk to this process today for no charge.
The pre-qualifier tool is simple and you can find it on our website.
You can contact us today for free initial tax consultation and we can walk you through the process. As a former IRS agent and tax instructor I taught the offer in compromise program and I am completely aware of the protocols and systems and settlement formulas of what it takes to get an offer of compromise through the system.
What is the Offer in Compromise- OIC
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. Each case is different and no two cases are the same. IRS will judge and evaluate your IRS case on the:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
Approval of the OIC
The Service 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. There is a very specific process, specific protocol and specific financial national standards that must be achieved for the IRS to accept the offer in compromise.
Key Note =Make sure you are eligible before filing the OIC
Before the IRS can consider your offer, you must be current with all filing and payment requirements.
Please Note: You are not eligible if you are in an open bankruptcy proceeding.
Submitting your offer in compromise – OIC
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 in compromise package should include:
1. Form 433-A (OIC) (individuals) or
2. 433-B (OIC) (businesses) and all required documentation as specified on the forms;
3. Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
4. $150 application fee (non-refundable); and
5. Initial payment (non-refundable) for each Form 656.
Select a payment option for the OIC – There are two
Your initial payment will vary based on your offer and the payment option you choose:
1. 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.
2. 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.
Understand the process the Offer in Compromise – OIC
While your offer in compromise is being evaluated make sure:
1. Your non-refundable payments and fees will be applied to the tax liability
2. A Notice of Federal Tax Lien may be filed;
3. Other IRS collection activities are suspended;
4. The legal assessment and collection period is extended;
5. Make all required payments associated with your offer;
6. You are not required to make payments on an existing installment agreement; and
7. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Contact us today to learn more about the filing of your offer in compromise.
Remember:
There are very specific procedures in place and to have the best chance of getting IRS tax relief will be through a former IRS agent who knows the process, who has accepted the tax settlements and who taught this program and system at the Internal Revenue Service.
Offer in Compromise Can give you true Tax Relief – Miami, Ft.Lauderdale
by Fresh Start Tax | Nov 14, 2013 | Sales Tax, State of Florida, Tax Help
Sales Tax – Florida – Audit, Help, Problems
If you need tax relief from the state of Florida or any sales tax issues contact us today we can represent you during a tax audit, offer you help for any State of Federal collection problems you have or resolve any issues you have with the state of Florida or the federal government.
We are comprised of tax attorneys, CPAs and former IRS and state agents that have over 206 years of professional tax experience and over 78 years of both federal and state tax experience.
We are A+ rated by the Better Business Bureau and a been a private practice since 1982 right here in the state of Florida.
All consultations and assessments are free
Florida Business Owners Must Know How to Comply with Florida Tax Laws
What is Required by The State of Florida
Insider Tips – Helpful facts you need to Know:
1. File sales and use tax electronically, dealers may deduct a collection allowance only when they timely file and pay sales tax and use tax electronically.
If you owe electronically file (E – file) your return and electronically pay (E pay) tax timely, you are entitled to receive a collection allowance.
The collection allowance is to a half percent of the first $1200 of the amount due not to exceed $30.
Dealers who file their returns or make payments by a method other than electronic means are not entitled to a collection of allowance.
Sales Tax
2. Each sale, omission charge, storage, or rental is taxable unless the transaction is exempt. Sales tax is added to the price of the taxable goods or service and collected from the purchaser at the time of the sale. Florida’s general sales tax rate is 6%.
- The tax dollars you collect belong to Florida at the moment of collection. You serve as the trustee or custodian of these funds until you send them to the Florida Department of revenue.
- As a Florida business you must:
- register all business locations before conducting business
- collect sales tax on each taxable transaction using the bracket system
- pay use tax on items used by your business that were purchased tax exempt or removed from inventory and not resold
- send the sales tax you have collected and the use tax owed to the Florida Department of revenue timely by:
- paying and submitting your tax return online, or
- sending a completed sales and use tax return
- maintain complete and accurate records on all sales and purchases
- keep copies of your records for at least three years to support the information on the tax return
- notify Department of revenue of any address or ownership changes
Florida Use Tax
Use tax is due on the use or consumption of taxable goods or services when sales tax was not paid at the time of purchase.
For example:
- if you buy a taxable item in Florida and didn’t pay sales tax you owe tax
- if you buy an item tax exempt and tending to resell it and then use the item in your business or for personal use, you owe use tax
- if you buy a taxable item outside of Florida and bringing or have it delivered into the state and you didn’t pay sales tax on the item, you owe use tax.
Discretionary Sales Surtax
Most Florida counties have a discretionary surtax (County tax) that applies to most transactions subject to the sales or use tax.
The county surtax rate applies to a taxable item or service delivered into account the imposing a surtax. The surtax rate that applies to motor vehicles and mobile homes is determined by the home address of the purchaser.
You can find the tax rates reached County from the Florida Department of revenue (Form DR – 15 DSS) in which you sell or deliver taxable goods or services.
For certain transactions, only the first $5000 of a taxable sale or purchase is subject to the discretionary sales surtax.
How Tax is calculated
- Sales tax and discretionary sales surtax are calculated on each taxable transaction. Florida uses the bracket system for calculating sales tax when the transaction involved between two whole dollar amounts.
- Multiply the whole dollar amount by the tax rate (6% plus the county surtax rate) and use the bracket system to figure the tax on the amount less than a dollar. The Department of revenue has rate tables (Form DR-2X) to help you.
Who Must Pay Tax
- before you begin business in Florida, you must first find out if your business activity or products used will be subject to sales or use tax. If it is, you must register to collect sales tax or pay use tax.
A partial list of business activities that are taxable:
1. sales of taxable items at retail
2. repairs or alterations of tangible personal property
3. Reynolds, leases, or license to use real property(for example, commercial office space, many warehouses, or short-term living accommodations)
4. rental or lease of personal property
5. charges for admission to any place of amusement, sport or recreation
6. operating private membership clubs that provide recreational or physical fitness facilities
7. manufacturing or producing goods for sale at retail
8. importing goods from any state or for country, for sale at retail or for use in the business or for pleasure
9. selling service warranty contract
10. ordering and using, a regular basis, mail order products on which no sales tax was charged
11. operating vending or amusement machines
12. providing taxable services
If you need tax professionals to help deal with the matter owing Florida sales tax and dealing with tax warrants call us today for a free initial tax consultation and speak directly to true expert tax professionals.
You can speak to tax attorneys, CPAs, former Florida Department of Revenue Agent or former IRS agents and managers . We are a full service tax firm that deals with all federal and state tax matters.
Sales Tax – Florida – Audit, Help, Problems – Attorneys, Former Agents
