by Fresh Start Tax | Oct 2, 2013 | Tax Help
Being a former IRS agent I understand the feelings of taxpayers receiving IRS final notices by certified mail.
Most of the taxpayer cases that I worked on as a former agent were petrified any time they got mail correspondence when I was working as a revenue officer.
Everyone dreads receiving mail from the Internal Revenue Service because there is usually nothing good in that letter.
Make sure you you pick up the Certified Mail
If you receive certified mail from the Internal Revenue Service, do not be afraid to sign for or pick up the mail.
It will be very helpful to bringing your case to a successful conclusion.
The certified mail from the Internal Revenue Service will indicate to us what your problem is, who to contact and help us be able to resolve your IRS situation and problem quickly. You’d be surprised at the number of people who bury their head in the sand and have ostrich syndrome.
If you are receiving IRS collection notices, make sure your tax professional is aware of this notice because the IRS will be sending out a notice of federal tax lien or tax levy.
A good professional tax company can stop all action just by calling the IRS.
Also if you hired a professional tax firm they will be receiving the same notice that you received because IRS must copy your power of attorney and all correspondence sent to their taxpayer clients.
Most of these IRS Final Notice letters are time sensitive.
If you do not respond to these letters/notices in a timely fashion as a general rule enforcement action from the Internal Revenue Service will follow up.
It is very important to pick up that notice/letter because the quicker you deal with it, the sooner your problems will go away.
Remember, this problem will not go away by itself, you must be proactive to get the results you need. Also remember at some point your case needs to be resolved, waiting simply will not help this problem.
Do not let fear stop you from moving forward. A good professional tax firm can minimize your worries.
Why picking up the mail notice/letter is your only true choice:
1. It lets the taxpayer know how long it will be before the IRS takes enforcement action. These letters are time sensitive. The IRS will follow up on the day the letter indicates.
2. It lets the taxpayer know where the case is in the system and which unit is handling it, allowing you to call the right IRS office and not waste time.
3. It allows the taxpayer to examine whether the tax deficiency on the IRS notice is correct or some things need to be addressed.
4. By calling the IRS, it lets them know you are serious about resolving the tax issue.
What to do when you read the letter
1. Examine the certified mail and make sure you understand its content and most of all find out if the tax liability you mail is correct.
2. Have a plan and an exit strategy on how you want to resolve the case.
3. Find out whether there is an appeals process in case you not get the results you are looking for.
4. Contact the IRS no later than the date shown on the letter.
5. If you are going to hire professional tax company make sure they are experienced in dealing with the specific issues you are facing.
6. In hiring a professional company,’s always talk to the person who will be directly working on your case so you get a good feeling where this case will go.
7. If this is an IRS collection case once again I remind you if you do not follow-up by the due date you can expect an IRS bank levy, wage garnishment notice when the filing of a federal tax lien.
8. If this is an IRS audit letter and you do not respond, the IRS may set the assessment up and you will have to then go ahead and reverse the entire process which will be very costly.
9. Contact us today for free initial tax consultation.
10. We are the affordable tax experts for solving IRS problems, situations and IRS matters.
Received IRS Final Notice, Certified Mail – Here is what to do, Former IRS
by Fresh Start Tax | Oct 1, 2013 | Tax Help
Being a former IRS agent and tax instructor a question that I am asked frequently is the following:
” If I need to file back tax returns should I file them separately or in the same envelope to the Internal Revenue Service?”
Short answer; File them all at the same time.
Taxpayers have an innate fear that if the Internal Revenue Service sees multiple returns that that send up a red flag and the IRS will come looking for them, start an investigation or become very suspicious.
That simply is not true.
As a matter of fact the Internal Revenue Service is just happy you’re filing your back tax returns and that you are going back into the system.
This happens so much that it is commonplace with the Internal Revenue Service.
The Internal Revenue Service does not have enough people, manpower to go ahead and keep up with everybody who has not filed their back tax returns.
File all your back tax returns and get back in the system and stop worrying.
We’ve been filing back tax returns for taxpayers since 1982 and to date by the grace of God we have not had one taxpayer audited as a result of multiple back filings. If in fact a person did go through the audit process because of back tax return filing it was simply because their tax return fell out of the national standards or norms.
When FST files back tax returns we do everything we can audit proof your tax return so this never becomes an issue between you and the Internal Revenue Service
Other Information – Full compliance check
There is absolutely no reason not to file these tax returns at the same time in the same envelope.
The reason is simple.
Anytime the Internal Revenue Services processes your case and the case goes to the ACS unit or the collection field unit the Internal Revenue Service and the IRS must conduct a full compliance check.
A full compliance check is a computer-generated review of your tax history. It lets IRS know how much you owe and what your tax returns have not been filed.
As a former agent when I see taxpayers that file tax returns year-by-year in separate envelopes I became very suspicious.
It was not that they were doing anything wrong but I felt as though they were trying to sneak back in the system. If they are trying to sneak back in the system I would ask myself what else are they trying to sneak about.
If you will owe back taxes as a result of your back tax return filing call us today and we can work out some sort of tax strategy tax settlement that you will be able to financially live with.
Being former IRS agents, managers, and teaching instructors we know all the protocols, systems and all the exit strategy so you can live in peace without worry.
Back Tax Returns to File ? File Tax Returns at the Same Time, Former IRS
by Fresh Start Tax | Oct 1, 2013 | Tax Help
Yes, the IRS can levy on Retirement, Pension Plans and even Social Security.
Being former IRS agents, managers and tax instructors we know the exact protocols and processes to get your IRS tax levy to be removed quickly.
Funds in Pension, Social Security or Retirement Plans
The Federal Payment Levy Program
A levy is a legal seizure of your property to satisfy a tax debt.The Internal Revenue Service has the right to seize almost everything.
Taxpayers with outstanding tax debts are subject to a levy on income and assets. The IRS must also give you a final notice and allow you your taxpayer rights before they can proceed with IRS enforcement.
If you are subject to the IRS levy, you will receive a notice from the IRS. If you do not pay the tax or contact the IRS within 30 days of the date of the notice, the IRS is allowed to levy on your income, assets and Social Security.
Once a levy is in place, the IRS may withhold monies from the federal payments you receive. This levy may continue until the entire amount of your federal tax debt is repaid or other payment arrangements are made, or the debt becomes unenforceable by law.
- What is a levy on Social Security benefits?
All taxpayers with outstanding tax debts are subject to a levy on assets and income sources, including Social Security benefits.
There are two ways the IRS may levy upon your Social Security benefits:
1. Automated Federal Payment Levy Program (FPLP) – The IRS is able to levy up to 15 percent of your Social Security benefits each month.
2. Manual (non-FPLP) levy – There is no restriction to how much the IRS can take from manual levies, however they take into account money for reasonable living expenses. if the Internal Revenue Service has filed a manual levy that usually means the local IRS office has your case. As a general rule revenue officers in the local office file manual IRS tax levies.
IRS levies on Social Security payments may include: retirement payments, survivor payments or disability insurance program payments.
IRS levies on Social Security payments will not include:
- children’s benefits,
- supplemental security income payments or lump sum death benefits.
- Is there financial relief if you are subject to a levy?
First, determine if you owe the tax.
If you do owe the tax, there may be options that can provide financial relief, including:
1. Audit Reconsideration – You may not have responded to an earlier IRS notice and the IRS may have assessed the liability based on certain assumptions. You may be able to ask the IRS to reconsider the assessment.
2. Innocent Spouse Relief – Generally, both you and your spouse are each responsible for paying the full amount of any tax, interest and penalties due on your joint return. However, you may be relieved of those amounts if your spouse (or former spouse) incorrectly included you on the joint return.
- What if I cannot pay the amount I owe?
You may also want to consider entering into an agreement with the IRS to find collection alternatives to repay your debt. You can also request to be classified as currently not collectible, the IRS has determined you cannot afford to pay the debt at this time, however the debt does not go away and penalties and interest will continue to be added to the debt.
- What if I am the guardian or conservator for a taxpayer?
If you are a guardian or conservator, you will need a Power of Attorney before the IRS can work with you or make any payment arrangements. A Power of Attorney can be obtained by completing Form 2848, Power of Attorney and Declaration of Representative. If the taxpayer is incapacitated, you should still complete a Form 2848 as well as attach legal documentation that allows you to act on the taxpayer’s behalf.
IRS Tax Levy on Retirement, Pension Plans, Social Security – Get IRS Levy Released
by Fresh Start Tax | Sep 30, 2013 | Florida Sales Tax, Sales Tax, State of Florida
We are a tax defense firm that specializes in IRS and state tax representation.
We have over 206 years of professional tax experience, 60 years of working directly for the Internal Revenue Service, 16 years to working directly for the state of Florida Department of revenue.
We are a full service tax and accounting firm. Contact us today for free initial tax consultation.
Florida Sales Tax Audit Representation
Business who Repair Tangible Personal Property
We are a Florida Tax Firm that Focuses on Florida Sales Tax Audit Help.
You need to know and understand what to do and what not to do for Florida Sales Tax laws relating to your business.
Insider Tips
If you are being audited by the state of Florida, Department of revenue it is critical you understand the nature of the tax audit and what it will curtail.
You need to understand what issues the Florida sales tax auditor will be looking at and what to be prepared for.
The agents will be focusing there attention on:
- Unreported Sales (source info – Bank Statements, Federal Tax Returns, State Tax Returns)
- Exempt Sales without proper documentation
- Repairs made to Non-Florida residents that were not shipped into Florida by common carrier and returned immediately when repairs were completed
- Taxable Fees that were not taxed such as service charges, technical fees, minimum fee charges, service calls, truck charges, and standard repair charges
- Sales Invoices with labor only and no tax (without evidence of materials not used in the repair)
- Rent paid without sales tax for buildings and other real property
- Rental consideration without sales tax(real estate taxes and other considerations paid on behalf of the landlord)
- Purchase of Fixed Assets as listed on the Schedule of Depreciation
- Purchase of consumable supplies
Florida Department of Revenue – Repair of Tangible Personal Property Standard Industry
General Overview
Retail repair businesses provide labor and materials to repair tangible personal property and return it to proper operating condition the size of the repair business may vary from a one-man operation to a large factory service; they all share one central function.
The definition of sales price in Section 212.02 (16), F.S “… Includes the consideration for a transaction which requires both labor and materials to alter, remodel, maintain, adjust and repair tangible personal property.” Rule 12A-1.006(1), F.A.C., states in part that, where parts are furnished by the repair, the entire charge he makes to his customers for repairing tangible personal property is taxable.
Insider Tip from Former Sales Tax Agent – Beware of the Drop of Oil
Further analysis of the tax ability of most repair transactions emphasizes; where so much as a drop of oil for lubrication is added to the property repair or a minute amount of wire and solder is used to repair a circuit, the entire charge made to the owner of the property for such repair or service is taxable.
Repairs to Industrial Machinery and Equipment
Industrial equipment is classified as tangible personal property, see TIP 02A01-04. The operation of industrial equipment repair is basically the same as small appliance repair. The major differences occur in billing methods and type of equipment repair.
The legislative intent to tax every sale of tangible personal property, including the fabrication or processing of such property, also applies to large industrial repairs. Rule 12A-1.006(3), F.A.C., notes that “provisions of this rule do not apply to contracts covering a combination of work on both real and personal property.
Such contracts are governed by the provisions of Rule 12A-1.051, F.A.C.” . The most important determination in deciding the taxability of repairs is to determine whether the item being repaired Realty or tangible personal property.
In addition, sometimes repair shops generate separate invoices for labor and materials when they are actually part of the same repair.
Billings may also contain travel expenses incurred for repair crew. All expenses, including travel, motel, restaurant charges, are taxable as a part of the repair weather stated separately or as a lump sum.
Florida Sales Tax Audit Defense
Business who Repair Tangible Personal Property
We are a full-service tax firm that specializes in federal and State tax representation and are one of Florida’s most experienced for sales tax audit defense.
Our staff consists of tax attorneys, certified public accountants, former IRS agents and a former sales tax auditor with over 16 years of direct work experience with the Florida Department of revenue.
Feel free to contact us for initial tax consulting for Florida sales tax audit defense.
We will completely review your case and give you a full assessment of your audit status so you can make an informed and confident decision of how to fully resolve your sales tax audit case.
Florida Sales Tax Audit Representation – Former Agents – Affordable Experts
by Fresh Start Tax | Sep 30, 2013 | Tax Help
Yes the long arm of the Internal Revenue Service can grab your tax refund for unpaid child support, certain federal and state and unemployment compensation debts and a variety of other problems you have may have found yourself having.
This action is called the tax refund offset policy.
At some point in time you must take your this tax obligation or settle your tax debt so this does not happen.
We may be able to take care of your tax debt through the filing of an offer in compromise or a tax debt reduction.
When you are ready to deal with this contact us today for a free initial context consultation and let us get IRS off your back permanently.
Refund Offsets: For Unpaid Child Support, and Certain Federal, State and Unemployment Compensation Debts
The Department of Treasury’s Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay:
- Federal agency non-tax debts;
- State income tax obligations; or
- Certain unemployment compensation debts owed to a state.
You should contact the agency with which you have a debt, to determine if your debt was submitted for a tax refund offset.
Department of Treasury’s Financial Management Service
You may call FMS at the number below for an agency address and phone number. If your debt was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt and send it to the agency you owe.
Any portion of your refund remaining after offset will be issued in a check to you or direct deposited for you.
FMS will send you a notice if an offset occurs.
The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. FMS will notify the IRS of the amount taken from your refund.
Contact the agency shown on the notice if you believe you do not owe the debt, or if you are disputing the amount taken from your refund.
If a notice is not received, contact FMS at 800-304-3107 or TDD 866-297-0517.
The available hours are Monday through Friday 7:30AM to 5:00PM CT. Contact the IRS only if your original refund amount shown on the FMS offset notice differs from the refund amount shown on your tax return.
If you filed a joint return and you are not responsible for the debt, but you are entitled to a portion of the refund, you may request your portion of the refund by filing Form 8379 (PDF), Injured Spouse Allocation.
You may file Form 8379 with your original joint tax return ( Form 1040 (PDF), Form 1040A (PDF), or Form 1040EZ (PDF)), with your amended joint tax return ( Form 1040X (PDF)), or by itself after you are notified of an offset.
If you file a Form 8379 with your joint return, write “INJURED SPOUSE” in the top left corner of the first page of the joint return. The IRS will process your Form 8379 before an offset occurs. If you file Form 8379 with your original or amended joint tax return, it may take 11 weeks for electronically-filed returns or 14 weeks if you file a paper return, to process your return.
If you file Form 8379 by itself, it must show both spouses’ social security numbers in the same order as they appeared on your joint income tax return. You, the “injured” spouse, must sign the form. Follow the instructions on Form 8379 carefully and be sure to attach the required forms to avoid delays.
Do not attach the previously filed joint tax return to the Form 8379. Send Form 8379 to the Service Center where you filed your original return and allow at least 8 weeks for the IRS to process your Form 8379.
We will compute the injured spouse’s share of the joint return for you. If you lived in a community property state during the tax year, we will divide the joint refund based upon state law.
Once again, at some point you must completely take care of your IRS problem were tax debt.
Contact us today to see how we can get a federal tax reduction through an offer in compromise.
IRS took your Tax Refund for Unpaid Child Support, State Refunds, Unemployment
