by Fresh Start Tax | Sep 16, 2013 | Tax Help
Did you lose your IRS tax Refund Check, please read below.
Question: I lost my refund check. How do I get a new one?
Answer: If you have lost your refund check, there are several options available to initiate a refund trace on your behalf.
- You can go to the “Where’s My Refund?” system available through the IRS website and request assistance.
- You can call the IRS toll-free at 800-829-1954 and either use the automated system or speak with an agent.
- If you filed a married filing jointly return, you cannot initiate a trace using the automated systems. The IRS will issue you a Form 3911 (PDF), Taxpayer Statement Regarding Refund, to get the replacement process started.
Once your claim for a missing refund has been processed and if your refund check has been cashed, the Financial Management Service (FMS) can provide you with a claim package that includes a copy of the check.
FMS will review your claim and the signature on the cancelled check before determining whether an additional refund can be issued to you. The FMS review can take up to six weeks to complete.
It is important to know you must be patient with this process.
If you would like to have your tax return audit proofed, contact us today.
Lost Tax Refund Check – Here is what to do
by Fresh Start Tax | Sep 16, 2013 | Tax Levy and Wage Garnishments
We are a Florida tax firm that specializes in IRS and state tax resolution.
We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district, and regional offices in the state of Florida. We are true professional tax experts.
We are Florida’s affordable tax professionals.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors.
We are A+ rated by the Better Business Bureau since 1982.
You can call us today and we can stop in IRS paycheck, salary or wage garnishment levy released as fast as anybody.
Being former IRS agents, managers and tax instructors we know the exact systems, settlement strategies, protocol and the exact procedures necessary to stop an IRS tax levy on a paycheck, salary or wages.
Paycheck, Salary, Wages Tax Levy Garnishments
An individual’s paycheck, wages, salary, and other income can be levied. The Internal Revenue Service sends out 2.8 million wages and bank accounts each year so you are not alone.
Wages, salary, and other income include payment for personal services in a work relationship. The Internal Revenue Service can even seize Social Security, Ira and pension benefits.
You can stop the paycheck, wages or salary levy by knowing the system within the Internal Revenue Service.
And after 60 years of combined work experience at the IRS we know the exact system and process to get immediate releases of paycheck, salary, and wage tax levies.
Of all the different tax levies that Internal Revenue Service can issue, the paycheck, wages and salary levy is the most damaging because it is a continuous levy that occurs each and every paycheck over and over until IRS issues a full paycheck or salary levy release.
It is in your best interest to immediately contact the IRS or professional tax firm to stop this levy.
By law, if the employer fails to comply the employer will become liable for the amount of levy that was not turned into the Internal Revenue Service.
The IRS will issue a final notice and demand and then take enforcement action.
Believe it or not, the Internal Revenue Service does not like to seize the paychecks of taxpayers but it has no choice. The Internal Revenue Service usually sends out at least 3 to 4 notices to the taxpayer’s last known address and request that the taxpayer contact the IRS to resolve the matter.
Tax Levy’s are attention getters to get the taxpayer to call the IRS so they can get information to close the case off of the IRS enforcement computer. not a human hand touches a levy that is sent out by the Internal Revenue Service. It is all done systemically by the IRS CADE2 computer
The IRS Form 668-W Notice of LEVY
The a paycheck, salary, wage levy occurs when the employer receives a IRS form 668-W.
It is important to note that if you receive an IRS bank levy it is only a one-time levy or seizure unlike the paycheck, wage or salary levy.
Not only is the paycheck, salary or wage levy damaging financially it many time hurts the relationship between the employee and employer.
We would urge any employee receiving a paycheck, salary or wage Levy garnishment notice to sit down and talk with their employer to let them know they are planning to resolve this and get their tax life back in order.
As a service to our clients we will contact your employer and explain to them that we are working with the Internal Revenue Service to take care of your situation.
As former IRS agents and managers we have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS. As a result of all our years of work experience we know the exact systems and protocols that to stop a paycheck levy or a bank levy burden.
STOPPING a tax levy on a paycheck, salary, wage levy garnishment.
The Internal Revenue Service issues a paycheck levy or salary levy because a taxpayer has not responded to the final notice that IRS sends each and every taxpayer.
If a taxpayer has moved they might have never received the final bill or tax notice telling them that IRS was about to take seizure action.
It is important to know that if you move you should contact the IRS to let them know of the change of address so you receive current and up-to-date information from the IRS. As a general rule this is the last thing people want to do but we encourage our clients to make sure their top of this.
Believe it or not one third of the IRS notices of levy and wage garnishment taxpayers never received the last IRS notice or bill telling him to call the IRS.
The Financial Statement – The 433F
To get the Internal Revenue Service to stop a levy on a paycheck, salary, or wage garnishment you must submit to IRS a current financial statement on form 433F.
You can find that form on our website.
If you owe under $25,000 it is very possible that we (FST) can simply go online and get a current installment agreement for you. You must know that all your tax returns must be filed.
The financial statement that IRS will want you to submit to the ACS unit to make a determination on your levy release is found on a form 433-F.
You will need to fill out a complete and accurate financial statement and also be willing to provide IRS with current bank statements, current wage information, and all monthly income and expenses.
You will need to send or fax the Internal Revenue Service all documentation for inspection. This is a very simple process.
The Internal Revenue Service will also require that all your tax returns are filed, current and up-to-date on the IRS computer system.
We can file all your back tax returns at this is an issue. If you not have the tax records available to file your back tax returns being former IRS agents and managers we can help by doing a tax return reconstruction.
The Internal Revenue Service will not release a paycheck levy, a salary levy, or a wage levy until they have a closing method on your case.
After IRS reviews your financial statement there are one of three general remedies they will use to close your case to get it off the IRS collection computer.
Once the Internal Revenue Service has all your information they need on your financial statement, as a general rule, they will will release your levy the very same day.
To stop your tax Levy today we will need your complete financial statement along with all documentation.
We will then send IRS a power of attorney, call them and get your case closed off of the IRS collection computer. IRS will then fax a release to your employer.
The only thing that holds us up from getting your levy released is you!
How will the IRS close your case
The Internal Revenue Service needs a closing a method to close case off the collection computer and to release your paycheck wage or salary levy.
After the Internal Revenue Service carefully reviewed your financial statement and all your documentation to support it, the IRS uses one of the three following closing methods.
The Internal Revenue Service will either place your case into:
1. a currently non-collectible file, CNC, Please note that these cases stay in a non-collectible file for 2 to 3 years. IRS always brings these cases back for review and a future time.
2. IRS may ask you to make a monthly installment or payment agreement, or
3. The IRS will tell you that you are a qualified and suitable candidate to file an offer in compromise. The filing of an offer in compromise is a much longer and complicated process.
Before we submit an offer in compromise we will need to set up a detailed conversation with you to walk you through the process and have you go through the pre-qualifier tool that you will find our website.
Your financial statement will determine what method the IRS will use to close your case. When we are retained by clients we carefully review their financial statement and find out which closing method best fits your financial capabilities.
We will go ahead and review your financial statement and explore the different closing methods that best suits your financial condition.
It is important not to be ripped off by Internet companies that tell you they can settle your case for pennies on the dollar.
It is important to check the Better Business Bureau ratings before retaining any firm and make sure they are not promising you the moon.
Another caution that taxpayer should be aware of, when trying to retain a firm to remove your paycheck, salary wage levy be aware, when calling, you may be speaking to sales tax personnel and not an actual tax professional.
You must use credible and credentialed professionals.
We are A+ rated by the Better Business Bureau because of our understanding and knowledge of the tax resolution industry and simply because of our years of experience with the Internal Revenue Service.
Call us today for free initial tax consultation so we can immediately and permanently your IRS or State tax problem.
Paycheck, Salary, Wages Levy – Jacksonville, Tampa, St. Pete, Orlando – Florida Tax Firm
by Fresh Start Tax | Sep 16, 2013 | Tax Levy and Wage Garnishments
We are composed of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors.
We are a local South Florida tax firm has been practicing since 1982 right here in South Florida and we are A+ rated by the Better Business Bureau.
You can call us today and we can stop in IRS paycheck, salary or wage garnishment levy released as fast as anybody.
Being former IRS agents, managers and tax instructors we know the exact systems, settlement strategies, protocol and the exact procedures necessary to stop an IRS tax levy on a paycheck, salary or wages.
Paycheck, Salary, Wages Levy
An individual’s paycheck, wages, salary, and other income can be levied. Wages, salary, and other income include payment for personal services in a work relationship.
You can stop the paycheck, wages or salary levy by knowing the system within the Internal Revenue Service.
Of all the different tax levies that Internal Revenue Service can issue, the paycheck, wages and salary levy is the most damaging because it is a continuous levy that occurs each and every paycheck over and over until IRS issues a full paycheck or salary levy release.
Believe it or not the Internal Revenue Service does not like to seize the paychecks of taxpayers but it has no choice.
They are attention getters to get the taxpayer to call the internal revenue service so they can get information to closed off of the IRS enforcement computer.
The Form 668-W
The a paycheck, salary, wage levy occurs when the employer receives a IRS form 668-W.
It is important to note that if you receive an IRS bank levy it is only a one-time levy or seizure unlike the paycheck, wage or salary levy.
Not only is the paycheck, salary or wage levy damaging financially it many time hurts the relationship between the employee and employer. We would urge any employee receiving a paycheck, salary or wage Levy garnishment notice to sit down and talk with their employer to let them know they are planning to resolve this and get their tax life back in order.
As former IRS agents and managers we have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS. As a result of all our years of work experience we know the exact systems and protocols that to stop a paycheck levy or a bank levy burden.
STOPPING a tax levy on a paycheck, salary, wage levy.
The Internal Revenue Service issues a paycheck levy or salary levy because a taxpayer has not responded to the final notice that IRS sends each and every taxpayer. If a taxpayer has moved they might have never received the final bill or tax notice telling them that IRS was about to take seizure action. Believe it or not one third of the IRS notices of levy and wage garnishment taxpayers never received the last IRS notice or bill telling him to call the IRS.
The Financial Statement
To get the Internal Revenue Service to stop a levy on a paycheck, salary, or wage garnishment you must submit to IRS a current financial statement on form 433F.
You can find that form on our website.
If you owe under $25,000 it is very possible that we (FST) can simply go online and get a current installment agreement for you.
The financial statement that IRS will want you to submit to the ACS unit to make a determination on your levy release is found on a form 433-F. You can find it directly on our website.
You will need to fill out a complete and correct financial statement and also be willing to provide IRS with current bank statements, current wage information, and all monthly income and expenses. You will need to send or fax the Internal Revenue Service all documentation for inspection. This is a very simple process.
The Internal Revenue Service will also require that all your tax returns are filed, current and up-to-date on the IRS computer system. We can file all your back tax returns at this is an issue. If you not have the tax records available to file your back tax returns being former IRS agents and managers we can help by doing a tax return reconstruction.
The Internal Revenue Service will not release a paycheck levy, a salary levy, or a wage levy until they have a closing method on your case. (this all can happen in one day )
After IRS reviews your financial statement there are one of three general remedies they will use to close your case to get it off the IRS collection computer.
Once the Internal Revenue Service has all your information they need on your financial statement, as a general rule, they will will release your levy the very same day.
To stop your tax Levy today we will need your complete financial statement along with all documentation.
We will then send IRS a power of attorney, call them and get your case closed off of the IRS collection computer. IRS will then fax a release to your employer.
The only thing that holds us up from getting your levy released is you!
How will the IRS close your case
The Internal Revenue Service needs a closing a method to close case off the collection computer and to release your paycheck wage or salary levy. After the Internal Revenue Service carefully reviewed your financial statement and all your documentation to support it, the IRS uses one of the three following closing methods.
The Internal Revenue Service will either place your case into:
- a currently non-collectible file, CNC,
- ask you to make a monthly installment or payment agreement or
- the IRS will tell you that you are a qualified and suitable candidate to file an offer in compromise. The filing of an offer in compromise is a much longer and complicated process.
Your financial statement will determine what method the IRS will use to close your case. When we are retained by clients we carefully check their financial statement and find out which closing method best fits your financial capabilities.
We will go ahead and review your financial statement and explore the different closing methods that best suits your financial condition.
It is important not to be ripped off by Internet companies that tell you they can settle your case for pennies on the dollar. It is important to check the Better Business Bureau ratings before retaining any firm and make sure they are not promising you the moon.
You must use credible and credentialed professionals
We are A+ rated by the Better Business Bureau because of our understanding and knowledge of the tax resolution industry and simply because of our years of experience with the Internal Revenue Service.
Other Information
Can an Employer Threatens to Fire Taxpayer Because of a Levy?
Sometimes an employer threatens to fire an employee to avoid handling a levy. This might be a violation of 15 USC 1674.
If the employer fires the taxpayer because of this, the employer might be fined not more than $1000 or imprisoned for not more than one year, or both.
You should refer the taxpayer to the Wage and Hour Division of the Department of Labor (DOL). DOL, not IRS, must decide if the employer violated the law.
The Continuous Effect of Levy on Salary, Paycheck and Wages
Unlike other tax levies, a levy on a taxpayer’s wages and salary has a continuous effect. It attaches to future payments, until the levy is released. Wages and salary include fees, bonuses, commissions, and similar items.
All other levies only attach to property and rights to property that exist when the levy is served.
Example:
If a bank account is levied, it only reaches money in the account when the levy is served. It does not reach money deposited later.
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
Example:
A Form 668-A is issued to levy an author’s royalties. The author has a fixed and determinable right to royalties for books that have already been published. The levy reaches royalties for sales of those books in the future. The levy does not reach royalties for books that are written and published later. A new levy must be served to take those royalties.
Example:
A Form 668-W is issued to levy a taxpayer’s retirement income. The taxpayer has a fixed right to the future payments; therefore, the levy remains in effect until it is released.
Also, see IRM 5.11.6.12, Levy on Non-Liable Spouse in a Community Property State for guidance when the wage levy on the non-liable spouse is not continuous.
Exempt Amount on Paychecks, Salary, Wage Levies
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorate, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
Contact us today for a free initial tax consultation and let us start your process to get your paycheck, salary or wage garnishment levy released today.
We will immediately send IRS a power of attorney , send them your current financial statement, obtain a closing method that best suits your financial means at the current time and have IRS issue an immediate release of a tax levy in your paycheck, salary or wages. We will also review with you whether you are a qualified and suitable candidate for IRS tax settlement called an offer in compromise.
We’re A+ rated for a reason. We are one of the most trustworthy, experienced and affordable firms in the tax resolution industry.
When you call our firm you will speak directly to a true tax professional.
STOP Paycheck, Salary, Wages Levy – Miami, Ft.Lauderdale, Boca, Palm Beaches
Paycheck, Salary, Wages Levy – STOP Tax Levy with Former IRS Agents
by Fresh Start Tax | Sep 16, 2013 | Tax Levy and Wage Garnishments
Paycheck, Salary, Wages Levy – STOP Tax Levy
An individual’s paycheck, wages, salary, and other income can be levied. Wages, salary, and other income include payment for personal services in a work relationship.
You can stop the paycheck, wages or salary levy by knowing the system within the Internal Revenue Service.
Of all the different tax levies that Internal Revenue Service can issue, the paycheck and salary levy is the most damaging because it is a continuous levy that occurs each and every paycheck over and over until IRS issues a full paycheck or salary levy release.
The a paycheck, salary, wage levy occurs when the employer receives a IRS form 668_W.
If is important to note that if you receive an IRS bank levy it is only a one-time levy or seizure unlike the paycheck, wage or salary levy.
As former IRS agents and managers we have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS. As a result of all our years of work experience we know the exact systems and protocols that to stop a paycheck levy or a bank levy burden.
How to STOP a tax levy on a paycheck, salary,wage levy.
The Internal Revenue Service issues a paycheck levy or salary levy because a taxpayer has not responded to the final notice that IRS sends each and every taxpayer. If a taxpayer has moved they might have never received the final bill or tax notice telling them that IRS was about to take seizure action.
To get the Internal Revenue Service to stop a levy on a paycheck, salary, or wage garnishment you must submit to IRS a current financial statement on form 433F.
You can find that form on our website.
If you owe under $25,000 it is very possible that we can simply go online and get a current installment agreement for you.
The financial statement that IRS will want you to submit to the ACS unit to make a determination on your levy release is found on a form 433-F. You can find that form directly on our website. Just go to the homepage and click on IRS forms.
You will need to fill out a complete and accurate financial statement and also be willing to provide IRS with current bank statements, current wage information, and all monthly income and expenses.
The Internal Revenue Service will also require that all your tax returns are filed, current and up-to-date on the IRS computer system. We can file all your back tax returns if this is an issue.
The Internal Revenue Service will not release a paycheck levy, a salary levy, or a wage levy until they have a closing method on your case.(this all can happen in one day )
After IRS reviews your financial statement there are one of three general remedies they will use to close your case to get it off the IRS collection computer. Once the Internal Revenue Service has all your information they need on your financial statement, as a general rule, they will will release your levy the very same day.
To stop your tax Levy today we will need your complete financial statement along with all documentation
We will then send IRS a power of attorney, call them and get your case closed off of the IRS collection computer.
The only thing that holds us up from getting your levy released is you!
How will the IRS close your case
The Internal Revenue Service needs a closing a method to close case off the collection computer and to release your paycheck wage or salary levy.
After the Internal Revenue Service carefully reviewed your financial statement and all your documentation to support it , the IRS uses one of the three following closing methods.
The Internal Revenue Service will either place your case into a currently non-collectible file, ask you to make a monthly installment or payment agreement or the IRS will tell you that you are a qualified and suitable candidate to file an offer in compromise.
Your financial statement will determine what method the IRS will use.
We will go ahead and review your financial statement and explore the different closing methods that best suits your financial condition. It is important not to be ripped off by Internet companies that tell you they can settle your case for pennies on the dollar.
You MUST use caution and common sense and not retain any firm until you fully understand the process.
We are A+ rated by the Better Business Bureau because of our understanding and knowledge of the tax resolution industry and simply because of our years of experience with the Internal Revenue Service.
Can an Employer Threatens to Fire Taxpayer Because of a Levy?
Sometimes an employer threatens to fire an employee to avoid handling a levy. This might be a violation of 15 USC 1674.
If the employer fires the taxpayer because of this, the employer might be fined not more than $1000 or imprisoned for not more than one year, or both.
You should refer the taxpayer to the Wage and Hour Division of the Department of Labor (DOL). DOL, not IRS, must decide if the employer violated the law.
The Continuous Effect of Levy on Salary, Paycheck and Wages
Unlike other tax levies, a levy on a taxpayer’s wages and salary has a continuous effect. It attaches to future payments, until the levy is released. Wages and salary include fees, bonuses, commissions, and similar items.
All other levies only attach to property and rights to property that exist when the levy is served.
Example:
If a bank account is levied, it only reaches money in the account when the levy is served. It does not reach money deposited later.
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
Example:
A Form 668-A is issued to levy an author’s royalties. The author has a fixed and determinable right to royalties for books that have already been published. The levy reaches royalties for sales of those books in the future. The levy does not reach royalties for books that are written and published later. A new levy must be served to take those royalties.
Example:
A Form 668-W is issued to levy a taxpayer’s retirement income. The taxpayer has a fixed right to the future payments; therefore, the levy remains in effect until it is released.
Also, see IRM 5.11.6.12, Levy on Non-Liable Spouse in a Community Property State for guidance when the wage levy on the non-liable spouse is not continuous.
Exempt Amount on Paychecks, Salary, Wage Levies
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
Contact us today for a free initial tax consultation and let us start your process to get your paycheck, salary or wage garnishment levy released today.
We will immediately send IRS a power of attorney , send them your current financial statement, obtain a closing method that best suits your financial means at the current time and have IRS issue an immediate release of a tax levy in your paycheck, salary or wages.
We’re A+ rated for a reason. We are one of the most trustworthy, experienced and affordable firms in the tax resolution industry.
Paycheck, Salary, Wages Levy – STOP Tax Levy with Former IRS Agents
by Fresh Start Tax | Sep 16, 2013 | Tax Help
It’s all about knowing the system and the best course of action anytime you’re dealing with the Internal Revenue Service.
We are a local Florida tax firm that specializes in IRS and State tax resolutions.
We’ve been practicing since 1982 in our A+ rated by the Better Business Bureau.
If you need to make arrangements with the Internal Revenue Service it is in your best interest to consider using former IRS agents who know the systems, the protocol and all the available different arrangements that can be made with the Internal Revenue Service.
Using Former IRS Agents
Our firm has over 60 years of working directly for the Internal Revenue Service in the local, district and regional tax offices of the Internal Revenue Service. We also were former teaching instructors with the IRS and also have taught tax law as part of our employment with IRS.
We have also been in management, supervisory and teaching positions and therefore are aware of all IRS programming and the best way to achieve results.
Besides having former IRS agents on staff we are also comprised of tax attorneys and certified public accountants for more complicated cases.
When you know the system and a person’s financial condition it is easy to fit them in a program/arrangement that makes sense both to the Internal Revenue Service and to the client.
When making an arrangement with the Internal Revenue Service it’s always prudent to review the person’s financial condition and to find out just where they are financially before entering into any agreement/arrangement with the Internal Revenue Service.
Other Options
Making payment arrangements with the Internal Revenue Service to pay your tax may not be your very best option.
The Internal Revenue Service has two other programs that are available to taxpayers and it is often best to find out if they fit in one of the two other categories before you go rushing off making a payment agreement with the Internal Revenue Service.
Many taxpayers wish to make these payments or arrangements with the Internal Revenue Service but at the current time can qualify for a current economic tax hardship.
The Internal Revenue Service can place your case into a currently not collectible file due to a lack of income and high expenses.
This can allow for breathing room for the taxpayer and not be strapped by a payment they really cannot afford to make.
IRS does not publicize this program very much but it is called currently non-collectible status. The Internal Revenue Service will need a current financial statement fully documented to qualify for this arrangement with the Internal Revenue Service. That financial statement must be put on a form 433-F.
You will also need to produce copies of your bank statements, monthly income and expense receipts.
When a case is placed into currently not collectible it usually stays in a frozen or suspense status for 2 to 3 years and then comes back into the automated collection system for another review. It is important to remember these cases are not permanently put in non-collectible. If you have a spike in income you can expect IRS to bring your case back out for another financial review. It is only good for short-term planning.
Offer in compromise
You may also qualify to settle your tax debt by filing an offer in compromise with the Internal Revenue Service.
The offer of compromise is a much more complicated process however 38% of all individuals who file an offer in compromise get accepted. Most of the offers in compromise and are accepted by the Internal Revenue Service are submitted to the IRS by professional tax firms know the process in the system.
It is important to know that not everyone qualifies for an offer in compromise so we will carefully review your case to make sure that your offer in compromise as a true chance of acceptance.
You must be careful not to be ripped off by other Internet firms claiming that they can settle your debt for pennies on a dollar.
While it is possible you must use extreme caution to make sure you do qualify. You will find on our site a pre-qualifier tool for the OIC that you can walk through by yourself to make sure you have a good fighting chance of getting your offer accepted.
The average settlement for her offer in compromise is $.14 on a dollar but each case is based on its own merit. One of the base rules for Internal Revenue Service is you must be offered the Internal Revenue Service the liquidation value of all your assets minus your liabilities in them.
It is best to contact us and let us fully review your financial situation and find out your endgame strategy before rushing off and making any arrangement with the Internal Revenue Service.
So to be clear, the three possible alternatives exist when you make a closing arrangement with the Internal Revenue Service .
After your financial statement is reviewed your case one will be closed by the IRS with either a:
1. current economic tax hardship,
2. you may be a qualified candidate for offer in compromise/tax settlement , or
3. you can start making monthly payments/arrangements.
Below you will find out about the monthly payment/arrangement program from the Internal Revenue Service.
Monthly payments through an installment agreement
You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately.
However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full.
Before you apply you need too:
File all required tax returns;
Determine the largest monthly payment you can make ($25 minimum); and
Know that your future refunds will be applied to your tax debt until it is paid in full.
Fees for setting up an installment agreement arrangement:
1. $52 for a direct debit agreement;
2. $105 for a standard agreement or payroll deduction agreement; or
3. $43 if your income is below a certain level.
To apply for an installment arrangement agreement
Fresh Start Tax LLC can apply online if you owe $50,000 or less in combined individual income tax, penalties and interest; OR
If you owe more than $50,000, you will also need to complete Form 433-F, Collection Information Statement (PDF).
We will then call the Internal Revenue Service with the detailed information on your financial statement and find an arrangement with the Internal Revenue Service that works for you.
Everything will be based on your financial statement and IRS will make determinations based on your income and your current living expenses.
You will need to be familiar with the national standards tests (chart ) that IRS uses on all cases.
You can find the chart on our website called the national standards.
IRS will apply your income against the national standards to make sure you’re living within your means
Understand your agreement arrangement, avoid default of payments
To keep your account in good standing with the IRS.
You should:
Pay at least your minimum monthly payment when it’s due (direct debit or payroll deductions make this easy);
Include your name, address, SSN, daytime phone number, tax year and return type on your payment;
File all required tax returns on time;
Pay all taxes you owe in full and on time (contact us to change your existing agreement if you cannot);
Continue to make all scheduled payments even if we apply your refund to your account balance; and
Ensure your statement is sent to the correct address, contact us if you move or complete and mail Form 8822, Change of Address (PDF).
If you don’t receive your statement, send your payment to the address listed in your agreement.
There may be a reinstatement fee if your agreement goes into default. If your payment agreement goes in the fault there is a good chance you will have to go through this entire process again.
Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, contact the IRS immediately. At FST we will review all the penalties on your case and see if an abatement of the penalty is applicable.
Contact us today to learn more about making arrangements with the Internal Revenue Service. You can call us for a free initial tax consultation and speak directly to a true tax professional.
Before you make a determination about what to do with your IRS situation it is critical you hear all the options so you can make the best informed decision on your individual case.
You can come by and visit our office or Skype us today.
Payment Arrangement with the IRS
