by Fresh Start Tax | Sep 25, 2013 | Tax Help
Final Rules issued by the IRS
Uncle Sams strong arm, the Internal Revenue Service issued final rules for the individual mandate of President Barack Obama’s healthcare overhaul, one of the most talked about factors of the United States law set to go into effect next year, 2014.
One of the major tenants of Affordable Care Act (Obamacare) is the federal mandate that ALL, YES ALL individuals must carry some minimum health insurance or pay a tax.
The brand new system aims to provide insurance through State marketplaces and subsidies for tens of millions of Americans.
We shall see just how this plays out.
If you chose not to carry Insurance
If individuals choose not to carry insurance, they are subject to:
- a penalty, starting at $95 per person per year or
- 1 percent of income in 2014, whichever is greater, and
- eventually reaching $695 per person or 2.5 percent of income by 2016.
The Internal Revenue Service which is administering parts of the law involving revenue collection, released the final rules spelling out the details of what constitutes minimum essential coverage, and how individuals are responsible for spouses, children and other dependents, among other topics.
The Employers Mandate
The individual mandate is distinct from the employer mandate, which imposes a fee on most large employers that do not offer a minimum level of coverage.
Washington delayed that provision, putting off the effective date until 2015.
Promoters of the new law say that, unlike the employer mandate, the individual mandate is essential to ensure enough individuals are enrolled in the system to allow the online marketplaces to function.Once again we will see just how this plays out.
The new guidelines and rules offered good news to employees getting health coverage through a union-sponsored plan. They seem to help clear up that these employees will not be penalized.
The IRS rules also said “employees getting healthcare coverage from a temporary staffing agency are safe from penalties.”
After reviewing the voluminous material, one must wonder how IRS is going to go ahead and force the debt for those who cannot pay for insurance.
How much time and effort is the federal government going to spend on the millions of taxpayers who cannot afford to pay.
The IRS collection division is overloaded with work as over 1.1 million taxpayers owing back tax debt of $56 billion sits in a federal queue because there are no personnel to collect these larger back debt taxes case.
Lets be realistic, is the IRS really got to be looking for taxpayers who’ll less than $1500 when billions of other dollars that are easier to collect just sitting there.
The IRS will probably collect the money through tax refunds going back to taxpayers.
I think not.
by Fresh Start Tax | Sep 24, 2013 | Florida Sales Tax
Owe Back Florida Sales Tax ? You can be Arrested
We are a Florida Tax firm that specializes in Florida Sales Tax Audits on all types of businesses, corporations and individuals.
Do not get caught owing back monies to Florida Sales Tax, Department of Revenue.
If you owe back Florida sales tax you should be aware that you may be arrested.
Please understand we are not telling you this to scare you, however, the department of revenue, state of Florida actively pursues individuals, companies, and businesses who flatly fail to pay back sales tax.
They use these taxpayers as examples for others to be compliant with Florida sales tax laws. Do not let this happen to you. Make sure you are represented and work out a payment plan or arrangement so you can live in peace and without stress from tax agents.
We are comprised of Tax Attorneys, CPA’s, and former IRS and State of Florida agents
We have over 78 years of governmental experience and 300 years professional tax experience.
Frank Lamantia of Fresh Start Tax LLC is one of our own seasoned tax professionals that can represent your best interest if you are about to be or are undergoing a Florida sales tax audit.
This expertise in Florida sales tax will help your company avoid a costly audit assessment.
Insider Tips from Former Sales Tax Agent
On September 10, 2013 (name omitted) the owner of American Security Enterprises, Inc. was arrested by the Leon County Sheriff’s Department on charges that he stole more than $15,000 in sales tax collected from customers, but failed to send in to the state, the Florida Department of Revenue.
Arrest in Florida Sales
The owner, who lives in Tallahassee, was arrested by the Leon County Sheriff’s Department on September 10, 2013 on felony charges relating to theft of state funds and failure to file sales and use tax returns. If convicted, he faces up to five years in prison and up to $5000 in fines, as well as possible repayment of stolen tax, interest, penalty and investigative costs.
According to Revenue Department investigators, the owner collected sales tax from the clients of his business.
However, during various periods beginning in July 2011 through May 2013, he failed to file tax returns and send in to the state all of the sales taxes that he collected from his customers.
Under state law, sales tax is the property of the state at the moment of collection.
Florida law requires business owners to act as an agent of the state and they must remit all sales tax collected to the state of Florida.
Sales tax is the most significant source of revenue for the state of Florida and many investigative resources have been developed to track sales tax being collected and not remitted.
Florida sales tax is required to be separately stated on the customers invoice and Florida law mandates that the taxes collected be the property of the state from the moment is collected from the customer.
The business may put these amounts in their checking account, however business owners must segregate sales tax collected and remitted to the state in a timely fashion.
Sales tax collected but not remitted is a crime under Florida law and must be taken very seriously.
Florida business owners are not aware of the fact that the Florida Department of revenue is more likely to arrest a business owner for tax fraud than the Internal Revenue Service. While both the IRS and the Florida Department of revenue will put tax liens on the business property, the Florida Department of revenue will also put the business owner in jail if the taxes and all associated penalties, interest, fines and costs are not remitted.
Voluntary Disclosure
If you have been under reporting or not reporting and you have not received a notice of audit, it is highly recommended that you contact our firm and we will assist your business on the details of going through a voluntary disclosure program to come clean now with the Florida Department of revenue, and have most of the penalties waived and prevent it from becoming criminal.
Florida Sales Tax Defense
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 that you can make an informed and confident decision of how to fully resolve your sales tax audit case.
Owe Back Florida Sales Tax? Remit or be Arrested – Get Representation
by Fresh Start Tax | Sep 24, 2013 | Tax Help
Find Solutions to IRS Problems
The best place to find solutions to your IRS problems is to contact our former IRS agents, managers and tax instructors.
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We have over 206 years of professional tax experience in over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
While at the Internal Revenue Service we taught tax law to new agents as well seasoned agents. We are a tax specialty boutique firm specifically helping taxpayers, businesses and corporations find solutions to both IRS and state tax problems.
We are a full service tax firm that can help resolve your personal, small business, and corporate tax problems with the IRS.
Our Tax Professionals will develop short and long term strategies to permanently end IRS Problems.
Our firm frequently represents clients that are under going IRS tax audits, removal of federal tax liens, bank levies, and wage garnishments, enter into installment agreements/payment arrangements or Offers in Compromise.
We can also take any IRS issue or problem to Tax Court.
Finding Solutions to IRS
Stopping IRS problems is only half of the battle.
The key is not to repeat the problem and to make sure that your client can live a stress free financial life.
Our practice is dedicated not only to finding solutions to IRS problems but to go over any budgetary concerns a client may have a make sure problem but make sure they live within their budgets so they can manage their financial entire life.
If we fix one problem we must make sure it doesn’t lead to another problem down the road.
We will review with you your individual financial statements and offer fixes, solutions and other options so you can live in freedom and financial peace. When you contact our office you will speak directly to a tax professional who will help get your life back in order.
Areas of Professional Tax Practice:
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- IRS Tax Audits
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Find Solutions to IRS Problems – Free Assessments – Former IRS
by Fresh Start Tax | Sep 23, 2013 | Sales Tax, State of Florida
Florida Tax Audit Help –Restaurants/Bars
We are a Florida Tax firm that specializes in Sales Tax Audits on Restaurants and Bars.
Florida Sales Tax Audit Defense – Florida Department of Revenue Audit Representation for the Restaurant and Bar Industry.
Being a former sales tax on you should know that the Florida Department of revenue uses special audit technique guides to go ahead and conduct a sales tax audit for restaurants and bars.
As Former Agents have audited hundreds of bars and restaurants in the state of Florida in here are some here is some information you may want to know.
Insider Tips by Frank Lamantia a Former State Tax Auditor and consultant with FST.
Florida passes record $74.5 billion spending budget for fiscal year 2013-2014 that will be more than $4 billion higher than the fiscal year 2012-2013 spending.
Gov. Rick Scott’s office announced plans to discuss cutting taxes and fees with Florida residents. Scott announced he proposes to cut taxes by $500 million for the next fiscal year, but early on in the budget cycle, hasn’t released details about his plans.
With spending increases and cutting taxes there is only one way to balance the budget – Looking for Low Hanging Fruit through an Audit of Your Business and the state of Florida Department of revenue certainly knows there’s a lot of low hanging fruit in the restaurants and bar industry because of unreported sales tax.
Because of this audit potential and many revenue dollars available the restaurant and bar industry, a major source of audit assessments will see an increase in audit activity to generate funds to cover the increased spending budget and the reduced taxes and fees.
Voluntary Disclosure:
If you have been under reporting or not reporting and you have not received a notice of audit, it is highly recommended that you contact our firm and we will assist your restaurant/bar in the process of going through a voluntary disclosure program to come clean now with the Florida Department of revenue, have most of the penalties waived and prevent it from becoming criminal.
Methods of Operations for Restaurants and Bars for Sales Tax Audits
Restaurants
Restaurants range in size from small mom-and-pop operations to the national chains. All operate generally the same way, selling repaired food for consumption on or off the premises.
A large number of restaurants also operated lounges, in connection with the restaurant. These restaurants may operate in a number of different ways.
Some serve alcoholic beverages with the food, as a part of the restaurant and some operated lounges that are completely separate operations from the restaurant. Some also offer entertainment and dancing, and a cover charge is sometimes imposed.
The primary statute related to restaurants is Section 212.08(1)(c), F.S., and the primary rule is Rule 12A-1.011 F.A.C.
Bar/Lounges/Package Stores
The operations of the bar will very they could sell prepared food and offer entertainment and dancing. They may also charge patrons a cover charge. The bar/lounge may also sell other items in addition to alcoholic beverages, such as picnic supplies, food, ice, T-shirts and a variety of party items.
The bar/lounge and package store may be located in the same building but in different rooms. Separate cash registers may be used for the bar/lounge and package store, or sometimes the same register will be used for both operations.
Bars/Lounges
The dealer may record each sale and add the tax to the selling price. This results in the dealer reporting all taxes collected. The dealer may inform customers that the selling price includes the tax (putting them on notice).
To do this, signs must be posted throughout the establishment that can be seen by all customers when ordering drinks.
If the dealer selects this mess method, the tax to be reported will be calculated in the following manner:
Bars and/or cocktail lounge should divide their gross receipts by 1.0659, the result being the gross sales amount; the difference between the gross receipts amount in the gross sales tax amount should be reported as tax collected.
A combined bar and package store (operated as a single unit), which used the same method as bars and cocktail lounges.
Example: a bar has gross receipts of 32,585.50 including tax, and signs are posted. therefore tax due would be computed as follows: 32,545.50÷1.0659 equals 30,533.35 gross sales… 32,545.50 less 30,533.35 = $2012.15 tax due.
The dealer may choose to set different prices that do not include tax and do not post signs to inform customers that tax is being collected, thus excluding tax from the price if this method is selected, the dealer would calculate and report the tax as follows:
• bars and or cocktail lounges should multiply their gross receipts by 0.0659 and report the results as tax due
• a combination bar and package store where the operations are not separated, which used the same method as the bar and cocktail lounge
• Example: no signs are posted in gross receipts are 32,545.50. Computation would be 32,505.50 x .0659 = 2144.75 tax due.
In this example, gross receipts are equivalent to gross sales because tax was not charged on the sale.
A bar or cocktail lounge may operate a packaged the bar/lounge offer drinks for consumption on the premises and the package store will offer package goods to take out.
Bars and Package Stores
Bars, package stores, and combinations that do not separately record the sales price and in tax are required to remit the tax on the percentage gross receipts.
The applicable percentages are:
• 6.35% for package stores
• 6.59% for bars and bar/package store combinations
When the taxpayer can demonstrate that the customers had been informed that the price charged includes the tax, the gross receipts may be reduced by the amount of the tax (See Rule 12A-1.057, F.A.C.).
Package Stores
Facilities/Operations that do not sell by the drink for consumption on the premises will be considered a package store. These type operations offer only items to be taken out. In addition to alcoholic beverages, they will offer items such as picnic supplies, food, ice, T-shirts, hats and party items for sale.
The dealer may record each sale and add the tax to the selling price.
This results and the dealer reporting all taxes collected
The dealer may inform his customers that the selling price includes the tax thereby putting them on notice. To do this, signed must be posted throughout the establishment that can be seen by all customers making purchases.
If the dealer selects this method, the tax to be reported will be calculated by dividing their gross receipts by 1.0635, the results being the gross sales amounted; the difference between the gross receipts amount in the gross sales about should be reported as tax collected.
The dealer may choose to set prices that do not include tax and not post signs informing customers that tax is being collected thus excluding tax from the price. If this method is selected, the dealer would multiply their gross receipts by 0.0635 and report result as tax due.
Florida Restaurants and Bars – Tax Audit Defense
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
If you are going through a sales tax audit contact us today and speak to a former Florida sales tax agent, attorney, and Certified Public Accountants who could limit your exposure.
We are A+ rated by the Better Business Bureau and have been in practice in the State of Florida since 1982.
Florida Sales Tax Audit Help – Restaurants/Bars
by Fresh Start Tax | Sep 23, 2013 | Tax Help
Are you in need of IRS Help
We are a Florida tax firm that specializes in those persons or taxpayers and need of IRS tax help.
We’ve been practicing in the state of Florida since 1982 and we are A+ rated by the Better Business Bureau.
If you are in need for IRS tax help it only makes sense to call former IRS agents, managers and tax instructors.
We taught Tax Law at the IRS.
We are aware of every tax strategy it takes to close your case with the Internal Revenue Service.
The Internal Revenue Service has exact tax protocols and settlement formulas to close cases off their enforcement and audit computers.
Being former IRS tax instructors and managers we know each technique that can help gain you the best advantage to resolve your case in a successful manner.
Stop the worry and pain this causes in your life and let our experience work for you. We have been relieving the stress of those looking for IRS tax help since 1982.
We are one of the most experienced tax firms that you will find.
We are A+ rated by the Better Business Bureau. You can call us for free initial tax consultation.
Our firm represents clients who have IRS notices, IRS tax audits, and IRS collection problems. We have a tax expert in every conceivable area for IRS help representation.
If you are looking to choose a tax firm for IRS resolution or for IRS tax help it is critical you check on the credentials, the experience, and asked to speak directly to the person that will be working your case.
Ask for results of like kind cases
It is also important to ask a potential tax representative in like- kind cases what the expected results be.
If a professional tax representative has worked hundreds and hundreds of cases they should be able to at least anticipate an outcome. They should never guarantee the outcome but they can give you a likely outcome.
How FST can help Settle and Negotiate if you owe money to the with the Internal Revenue Service:
1. FST will immediately send a power of attorney to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS.
2. FST will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case.
This is leverage the IRS uses to get you compliance.
We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
We are experts in tax return reconstruction.
3. The IRS requires a current financial statement.
We will secure a required 433-A,433F (IRS financial statement), verify the income and expenses and work out a settlement agreement.
The IRS will require a closing settlement method for each case. We must plan a short term strategy and a long-term exit strategy on your case. With the IRS statue limitations being 10 years a person’s financial condition can change over that period of time so we plan for those changes.
4. FST will review with our clients how they want to settle their case. We get them an agreement based on their current financial needs and close their case off of the IRS CADE 2 enforcement computer.
IRS Tax Settlement Agreements can be in different forms:
a. Hardship Settlements.
Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship. You should call us today to discuss the national standards program so you understand the full scope of agreements with the Internal Revenue Service.
b. Payment Agreements/Installment Agreements
Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. IRS Offer in Compromise/Settlements.
There are three types of OICs:
The IRS may accept an Offer in Compromise/settlement based on three grounds:
1. Doubt as to Collectibility.
Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability.
A very legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration, Exceptional Circumstances.
There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC.
You should know to get an offer of compromise through on effective tax administration through exceptional circumstances are very difficult. Our firm has a leg up because on staff is a former IRS offer in compromise specialist who worked the program with the Internal Revenue Service.
To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
If you are looking for IRS tax help, call former IRS agents and tax managers who know the system.
We have been part of tax resolution since 1982 and we are A+ rated by the Better Business Bureau.
If you owe money to the IRS – How they will find your assets.
The largest source for collecting information is the Internet and Google is there main search engine. You should find out yourself what they will find by simply googling yourself.
The Internal Revenue Service agent doesn’t even need to leave their desk like they did in the past.
The Internet is a powerful tool for gathering information about individuals and businesses. The information on the Internet can assist IRS employees in locating taxpayers and their assets.
A great amount of information is available free of charge although many web sites charge a usage fee or provide information on a subscription basis.
Effective use of the Internet can include the use of various websites to locate taxpayers and their assets.
Taxpayers can use the same information that the IRS uses on the Internet.
The Internal Revenue Service has current corporate contracts for locator services such as credit bureau services, and tax law research services and others.
SPDER provides IRS employees with Internet (internal tools) – Intranet access on an as needed basis. These are protected secured sites that usually government agencies have right to tap into.
Internet/Intranet access provides IRS employees with access to a number of computer applications including:
The National Asset Locator tool,Lexis/Nexis Accurint. This tool is used by almost all revenue officers when working field collection cases.
You can subscribe to this service as well – The Credit Bureau Web browser, Smart.Alx;
You can call us today if you are need of IRS tax help and you can hear the honest truth.
Need IRS Tax Help – Former Agents, Affordable – Jacksonville, Tampa, Miami, Ft.Lauderdale
