IRS Tax Reduction Process – Affordable Solutions with Former IRS Settlement Agents

by Fresh Start Tax | Sep 30, 2013 | Tax Help

IRS Tax Reduction Process
I am a former IRS agent and teaching instructor. The Internal Revenue Service has a very specific process to reduce your tax bill.
I actually taught the offer in compromise program when I worked with the Internal Revenue Service. We are tax experts in the IRS tax reduction process.
There are two specific ways that you can reduce your IRS tax bill the first is an abatement of penalties and interest, the second is through the offer in compromise program.
The Internal Revenue Service receives 58,000 offers in compromise to reduce a taxpayer debt.
The Internal Revenue Service accepts 38% of all offers in compromise through this IRS tax reduction process.
The tax reduction process through an offer in compromise is not what people think.
You must be a qualified candidate before IRS will accept a tax reduction on your behalf. With many companies on the web advertising settlements for pennies on a dollar, the Internal Revenue Service has been flooded by taxpayers thinking that IRS will reduce everybody’s tax debt easily . If this was the case there would be Disney World lines around  IRS buildings nationwide.
There is a very specific process for the offer in compromise. The Internal Revenue Service  has  a pre-qualifier tool for the tax reduction process.
You can find that on our website.
Simply go on the homepage click on IRS forms and you will find the pre-qualifier tool for the offer in compromise.
Before we take any money or retainer from a client we will walk you through this process and see if it is feasible for a taxpayer to reduce their tax bill through the IRS tax reduction process called the offer in compromise.
The New Offer in Compromise Program is called Fresh Start
Offers 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 liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC. This is why you must use the pre qualifier tool.
 
In order to be eligible fore the OIC

For an OIC to be process 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 RCP is how the IRS measures the taxpayer’s ability to pay.Basic IRS wants to know about your assets and income. They could care less about your liabilities.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property.
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 simply means you did not owe the tax.

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 is the most common IRS tax reduction process. This is a pennies on a dollar settlement.

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.

These IRS tax reduction situations are far and few between. Most of these offering compromises that are accepted occur because of medical situations.

 Necessary Forms for the IRS Tax Reduction
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 the OIC

A taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
First,      no application fee is required if the OIC is based on doubt as to liability.
Second, 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.
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.
 
Choosing to pay -Payment Types
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. 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.
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 in compromise .
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.
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 Tax Deduction – Office of Appeals
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.
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. Please make sure you understand that both are different
Once again before you attempt to settle your case is for pennies on a dollar walk through the IRS  tax reduction process called the offer in compromise. It is on our website.
Remember, you must be a qualified taxpayer for the settlement process.
IRS will require all documents including all canceled checks, bank statements and provable income and expenses for the last year.
Contact us for free initial tax consultation.


 
IRS Tax Reduction Process – Affordable Solution with Former IRS
 
 

Choosing a Tax Company for IRS Problem Help – Miami, Ft.Lauderdale, Tampa, Jacksonville – FLORIDA

by Fresh Start Tax | Sep 30, 2013 | Tax Help

Choosing a Tax Company  for IRS Problems Help is a very important decision.
There are millions of Google search engines results for Tax Company.
Read the following tips for Choosing a Tax Company, I am sure they will be helpful.
I am a former IRS agent in teaching instructor and I have been in this business for the last 38 years. Conducted good due diligence check before choosing a tax company for IRS problem help.
Watch out for the Scam Artists

Tax Audit Accountant – Miami, Ft.Lauderdale, Boca, Palm Beaches – South Florida Affordable Experts

by Fresh Start Tax | Sep 30, 2013 | Tax Help

Tax Audit Accountant
We are a local South Florida tax firm that specializes in TAX AUDITS.
We’ve been practicing in South Florida since 1982 and we are A+ rated by the Better Business Bureau.
We are a full service tax firm that specializes in everything from IRS bills and notices to tax court. We are staffed with Tax audit Accountants.
We can handle from the simplest to the most complex federal and state tax issues for affordable pricing. We have specific experts that handled a wide range of problems all with vast amounts of federal and state tax experience.
We are comprised of tax attorneys, tax lawyers, certified public accountants, enrolled agents and former IRS agents, managers and tax instructors.
Our firm has over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
You can contact us today for a free initial tax consultation. We are the affordable tax firm located right here in South Florida since 1982.
Also on staff as a former Department of revenue, state of Florida sales tax auditor.
Contact us today and we can also discuss your individual, business and corporate tax filings and compliance.
 

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 if Tax Records are lost or destroyed
• IRS Help
• Tax Audit Accountant

Our Company Resume: ( Since 1982 )

• Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
• On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
• 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.
• Former State of Florida Sales Tax Audit Accountant
• 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 90.3 FM Monthly Radio Show-Business Weekly

 
 
Tax Audit Accountant – Miami, Ft.Lauderdale, Boca, Palm Beaches – South Florida Affordable Experts
 

Received IRS Final Notice of Intent to Levy – Stop IRS with a CDP

by Fresh Start Tax | Sep 27, 2013 | Tax Help

When most taxpayers get the IRS notice 1058 they get a lot of other information in the Notice.
However, Received IRS Final Notice of Intent to Levy – Stop IRS with a CDP
Most taxpayers are overwhelmed by the IRS final notice of intent to levy and they overlook a very important process that can stop IRS immediately.
When receiving the final notice of intent to levy you can file a CDP or a collection due process notice.
The filing of the collection due process holds the case and sends it to an IRS appeals agent who as a general rule will work more closely with the taxpayer than the ACS unit who is currently managing the case.
As a general rule a taxpayer will find a better result dealing with an appeals agent and the IRS service centers.
The request for a collection due process or a  Equivalency hearing can be filed if the Internal Revenue Service has issued one of the following lien or levy notices.
You can file the CDP on the notice of the filing of a federal tax lien, a notice of intent to levy, a notice of jeopardy levy, the notice of levy on your state tax refund, and a notice of levy.
Any time the Internal Revenue Service has sent one of the above notices you can file a collection due process. You do so on form 12135.
Collection Due Process Procedures
The IRS is required to notify taxpayers in writing that a lien has been filed or when it intends to levy.
A taxpayer is allowed to appeal the filing of the lien or proposed levy action through the CDP by filing a hearing request. This hearing request must be received within 30 calendar days plus five business days of the filing of the lien or within 30 calendar days of the date of the Notice of Intent to Levy.
If a taxpayer’s hearing request is submitted on time, the IRS will suspend all collection efforts and the Office of Appeals (Appeals) will provide the taxpayer a CDP hearing. If a taxpayer’s hearing request is not submitted timely, Appeals has discretionary authority to provide the taxpayer an EH and consider the same issues as in a CDP hearing for both liens and levies; however, the IRS is not required to suspend collection action, and the taxpayer does not have the right to a judicial review.
Taxpayers are entitled to one hearing per tax period for which a lien or Notice of Intent to Levy has been issued. The hearing is conducted by an appeals officer or settlement officer (hearing officer) who has had no prior involvement with the unpaid tax.
During the hearing, the hearing officer must verify whether the requirements of all applicable laws or administrative procedures related to the lien or Notice of Intent to Levy were met.
The hearing officer must also address any issues the taxpayer may raise relevant to the unpaid tax, the filing of the lien, or the proposed levy, such as whether the taxpayer is an innocent spouse; determine if collection actions were appropriate; and decide if other collection alternatives would facilitate the payment of the tax.
The hearing officer must determine whether any proposed collection action balances the need for efficient collection of taxes with the taxpayer’s legitimate concerns.
The taxpayer may not raise an issue that was considered at a prior administrative or judicial hearing if the taxpayer participated meaningfully in the prior proceeding.
At the conclusion of a hearing, Appeals provides the taxpayer a letter with the hearing officer’s findings, agreements reached with the taxpayer, any relief provided to the taxpayer, and any actions the taxpayer or the IRS are required to take.
For a CDP case, the taxpayer receives a Letter 3193, Notice of Determination Concerning Collection Actions Under Sections 6320 and 6330, which provides an explanation of the right to a judicial review.
If the taxpayer disagrees with the Appeals decision, he or she may petition the Tax Court. For an EH case, the taxpayer receives a Letter 3210, Decision Letter Concerning Equivalent Hearing Under Section 6320 and/or 6330.
If the taxpayer disagrees with the Appeals decision in an EH, he or she may not petition the courts.
For both applicable CDP and EH cases, the taxpayer may receive a Form 12257, Waiver of Appeals Notice of Determination in a Collection Due Process Hearing,[21] or a Form 12256, Withdrawal of Request for Collection Due Process or Equivalent Hearing. Waiver Form 12256 and Letter 4382 are applicable when the taxpayer agrees with Appeals, waives the right to a judicial review, and waives the suspension of collection action.
Withdrawal Form 12257 and Letter 4383 are applicable when the taxpayer has reached a resolution with the IRS regarding the tax and tax periods and he or she is otherwise satisfied that a hearing with the Office of Appeals is no longer needed.
The CDP or EH case is generally reviewed by the hearing officer’s manager at the completion of the case to evaluate whether the hearing officer followed all requirements and procedures.[22]
After Appeals has made a determination on a case, if the taxpayer has a change in circumstances that affects the Appeals determination or if the Collection function does not carry out the determination, the taxpayer has the right to return to Appeals.
The Appeals office that made the original determination generally retains jurisdiction over the case.
 
Received IRS Final Notice of Intent to Levy – Stop IRS with a CDP

Tax Company for IRS and State Tax Problems – Specialty Firm – Miami, Ft.Lauderdale, Tampa, Jacksonville – All FLORIDA

by Fresh Start Tax | Sep 26, 2013 | Tax Help

We are a Florida tax firm, Tax Company that has been practicing IRS and State Tax Problems Resolution since 1982.
We are A+ rated by the Better Business Bureau.
Former IRS
Our former IRS agents, managers and tax instructors have worked on the local, district, and regional tax offices in the State of Florida.
Our former Department of revenue, Florida sales tax auditor has worked with the state of Florida sales tax division for 16 years.
We are one of the most trusted, experienced and affordable tax firms nationwide and our practice is located right here in the state of Florida.
Some Tax Company News for IRS and State Tax Problems
There are hundreds upon hundreds of Internet sites claiming they can help resolve back IRS problems.
I just pulled up a Google search and over 6 ,800,000 searches just came up.
You should know right from the beginning that about 90% of all the advertising that you see on the Internet are from marketing companies that sell your information to third parties in hopes to land a sale for your business.
Many of these ads that you see our splash pages with little information but selling hype.
That’s right, your information is sold to third parties for $60. Even companies will call you claiming to be a tax resolution company but they will patch your phone number and direct it  to a tax firm located in who knows where.
IRS Bulletins regarding Tax Company for IRS and State Tax Problems
All you have to do is to go to the IRS website@IRS.gov.
The IRS has come out with several tax bulletins regarding fraudulent tax resolution companies within the past years warning the taxpayers to stay away from scam artists and companies making false claims.
The tax resolution industry for the most part has been turned over to sales people who have worked other business verticals such as mortgage, real estate and credit relief programs.
When industries changes because of economic reasons or changes due to the federal law, these companies and sales people are forced to find other business verticals to work.
The tax resolution company industry  as it seems is the new best thing until something else comes along.
A large number of these sales people have found their way in IRS Tax Relief, Back Taxes, and IRS Debt Resolution business.
While many of them are  real good persons in general, they are sales people, they have no business working an industry they know absolutely nothing about. Many of these people cannot even do their own tax returns. These people should not be giving you any tax advice whatsoever.
Owing the Internal Revenue Service and state governments are serious problems and this work should not be turned over to persons who are not true professionals.
Many of these companies are in business today and gone tomorrow and many times with your money.
You can look at the companies like JK Harris, Ronnie Deutch, and Tax Masters all companies that had huge advertising budgets and wound up ripping thousands upon thousands of taxpayers off with deceptive advertising.
Pennies on a dollar settlements
One of the big advertising statements that have come out in the past marketing campaigns is ” settle your case for pennies on a dollar.”
You must know that this statement is very true, you can settle your case for pennies on a dollar but you must meet very specific criteria to go ahead and make that happen.
Internal Revenue Service excepted 18,000 offers in compromise last year which is a 38% acceptance rate, the highest in the past 10 years.
To get an IRS tax settlement you must find a good tax company who truly knows how to resolve your back taxes to make this happen.
Before any tax company can let you know how they will resolve your IRS or state tax problem, they must have a current financial statement with all documentation before a determination can be rendered.
If anyone promises you a result without having the financial statement they are defrauding you
As a general rule,  you want to do so with a tax company that has tax attorneys, certified public accountants, and former IRS agents as well as enrolled agents who know their business.
 

Follow this practical common sense advice so you do not get ripped off:

 
1. Check the Better Business Bureau report on the Company.
A solid company will have a Better Business Bureau rating that you should be able to just click on their site you will go directly to the Better Business Bureau. If you cannot click on the Better Business Bureau logo on their site this is a huge red flag.
Please Note, many of these companies change names every couple of years. When a company gets a bad business bureau rating they simply open up another company or use a prior company that has been dormant for years. This is a very common trick among all industries and all verticals.
2. Find out if there is a professional Tax Attorney or CPA on staff for more complicated issues and problems.
In legitimate tax companies, Attorneys, enrolled agents and CPA’s usually will not lend their names to scam artists.
Tax professionals really care about their license because there signing there name on the power of attorney therefore you should be able speak directly to the person whose signature is on your power of attorney.
Beware of companies that sub their work out to third party firms that are not connected with the company.
This is a very common practice that these companies employ, they use back-end companies to actually do the work and communication issues become a problem.
3. Check out how long the principles have been practicing tax, tax representation or tax law.  tax companies that are in business for IRS and state tax problems should have their tax professionals practicing for a good number of years, this skill is not picked up overnight.
I should know because I am a former IRS agent and tax instructor. It takes an IRS revenue officer one full year before they know their job. Look for a tax company that has years and years of professional tax experience.
Most solid companies will find their principles have been practicing at least ten years or more. You will also find their bios listed on the website. If you are not dealing with a professional firm the company’s website will be absent of bios so that’s a red flag.
Another red flag is to check Photoshop pictures of tax professionals.
This is a common trick used by scam artist tax companies who say they resolve IRS and state tax problems.
4. Ask if the company guarantees their work.
If a company is guaranteeing their work, flee.
No one can guarantee IRS results. If they guarantee your money will be returned if they are not successful, that’s another story.
5. Interview the person that may work your case. Ask about his or her credentials and IRS work experience. You should also be able to find the bio of the person that is working your case on the company’s website.
6. Skype the person face to face. Ask if the person has a video conferencing system. You will get a good feel with a face to face.
7. Ask the tax professional who is working on your case if they have worked similar cases. They all should be tell you they have because of their vast work experience.
Ask them about what typical results are given your financial history and information.
At the end of the day it is about work history, credibility, due diligence and results.
Contact us today for free initial tax consultation and we will review all your various options and resolutions to resolve in IRS or state tax problem.
We are a true tax company that specializes in IRS and state tax problems.
 
Tax Company for IRS and State Tax Problems – Specialty Firm – Miami, Ft.Lauderdale, Tampa, Jacksonville – All FLORIDA