by Fresh Start Tax | Sep 11, 2013 | Tax Help
With the ever-changing world of tax treaties you will find that revisions, changes and expanded treaties are being made each and every year.
With the United States government hot and the trails of overseas and offshore banking more people are asking for copies of tax treaties. If you want to obtain a copy of the tax treaty, please read below.
Obtaining Copies of Tax Treaties
To view the text of a specific tax treaty, go to irs.gov and search for “tax treaties.”
You will find the text of each treaty, and in most cases, the Technical Explanation for the treaty.
The Technical Explanation provides more detail on the intent of the treaty language.
You can also request the text of treaties from the Department of Treasury at the following address:
Department of Treasury
Office of Public Correspondence
Room 3419
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Remember that treaties are updated periodically and amended by protocols, so be sure to check for the latest information on specific treaties when claiming treaty benefits.
How to OBTAIN copies of Tax Treaties
by Fresh Start Tax | Sep 11, 2013 | Installment Agreements
It is a lot easier than taxpayers think to get IRS payment or installment plan. Depending on the dollar amount you owe payment plans can be extremely simple or a little more difficult.
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 for IRS payment or installment plan please keep these things in mind:
1. File all required tax returns;
2. Consider other sources (loan or credit card) to pay your tax debt in full to save money;
3. Determine the largest monthly payment you can make ($25 minimum); and
4. 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:
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.
Apply for an installment agreement, payment plan
Call us today to getting started and permanently get this behind you.
Getting a payment plan or installment plan with the Internal Revenue Service falls into different categories depending on the dollar amount that you owe. If you owe under $25,000 you can get in IRS payment or installment plan online.
Call us if you owe $50,000 or less in combined individual income tax, penalties and interest.
If you owe more than $50,000, you will also need to complete Form 433-F, Collection Information Statement (PDF).
Understand your agreement, avoid default
To keep your account in good standing:
a. Pay at least your minimum monthly payment when it’s due (direct debit or payroll deductions make this easy);
b. Include your name, address, SSN, daytime phone number, tax year and return type on your payment;
c. File all required tax returns on time;
d. Pay all taxes you owe in full and on time (contact us to change your existing agreement if you cannot);
e.Continue to make all scheduled payments even if we apply your refund to your account balance; and
f. 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.
How to get a IRS Payment, Installment Plan – Former IRS
by Fresh Start Tax | Sep 11, 2013 | Back Taxes
The Internal Revenue Service treats large dollar cases much differently than it does taxpayers with smaller dollar back tax debts amounts.
I should know I am former IRS agent and teaching instructor.
The basic rule of thumb for the Internal Revenue Service, the more money you owe the deeper the investigation. In today’s world where information is available at the click of a computer button, the IRS can find out a wealth of information about you. IRS can simply Google your name of loads of information appears with a click of a computer key.
Before we negotiate back taxes with the Internal Revenue Service on your behalf we analyze the case just like IRS analyzes the case so we can be your best tax defense for a large dollar back tax cases.
You can contact us today for a free initial tax consultation and we will completely review your case and give you a recommendation on how to move forward.
Our staff is comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors who have been practicing for a combined 206 years in the tax resolution business and we have over 60 years of direct work experience at the Internal Revenue Service.
We have worked in the local, district, and regional tax offices of the Internal Revenue Service and also taught tax law at the IRS.
Tips for Large Dollar IRS Tax Cases on Back Taxes
- Get current on all tax return filings, because the IRS will come out swinging if you are not up to date;
- Have an exit strategy so the IRS knows you have a plan to resolve this case;
- Prepare a current Information Collection Statement and promptly respond to all IRS inquires.That financial statement will be on form 433-F or 433-A.
- By hiring former IRS agents and managers they will help you understand the IRS system so you can have success in dealing with your large dollar IRS case.
- You will also hear every available tax option so you will have both a short-term strategy in a long-term exit strategy.
IRS has a Large Dollar Unit for Back Taxes
IRS has specially trained Revenue Officers in the local field branches to work Large Dollar Cases. They also have a Large Dollar Case Unit, within the ACS unit, for those cases still in the collection computer system.
In working these cases, IRS will get into significantly more detail while investigating a taxpayer’s ability to pay. By all means, be represented by a professional tax firm for large dollar IRS cases.
It is also important to remember the general attitude of the Internal Revenue Service is not to trust the taxpayer so they will dig as deep as they need to go to make sure all the financial information adds up.
As a general rule IRS will want consistency within a taxpayer’s financial statement, bank statements, cost of living, and the income found on the tax return. All of these things should have a common chord through them.
The Basics for Large Dollar IRS Cases on Back Taxes
IRS all starts with the basics, a courthouse search for real property and DMV search. Those are called the basics.
Here is where it can get interesting.
Many times the IRS pulls credit reports from all three credit agencies. Credit reports contain a wealth of information.
The Credit Report can let the IRS know how much the average monthly charges are,what purchases you are making, what assets you have purchased. The kicker here is this, IRS can find out who has made inquiring and whether you have turned in a financial statement to that source.
IRS can summon the company for that finical statement you turned in and they will match up the financial statement that you gave the IRS.
Being a Former IRS agent I have seen few financial statements ever match up and the IRS can use that to there advantage. This will work to your disadvantage.
IRS also has there own internal locator. The internal locator will have a incomes records over the last six years of all 1099′s, W-2s, tax returns or any third party reporting of income that has been given to Internal Revenue Service.
One of the new sources that IRS is picking up FBAR information that reports overseas bank and financial records. IRS can also inquire of a bank CTR of any cash activity over $10,000 or more.
IRS will then look to a very common search engine called Accuriant or Lexis Nexis used by many creditors today. The Accuriant/Lexis Nexis search engine has over 37 billion current public records can detect fraud and verify identities and also help the IRS investigation. It is one of the go to tools that are used by the Internal Revenue Service.
The IRS will also look to other external sources. The public search engines such as Google, Bing, Yahoo, LinkedIn and Facebook and other social media can let the IRS agent know about your life habits.
Depending on the dollar amount of the case IRS can also use information from Passports, conduct 3rd party interviews, vessel and license checks at the courthouse all at the click button.
IRS commonly will check for Patents,Trademarks, Franchises, Licenses, Domain Name of a web site.Since IRS cannot march inside your house how they can find out about your personal assets, simply summons your homeowners policy.
Modern technology has allow not only the IRS but any government agency to ability too find out a plethora of information about you at the click of a button.
The IRS Investigations for Large Dollar Cases
I am a former IRS agent and teaching instructor with the IRS and here are some inside secrets about some of the financial investigation tools and sources that will take place during IRS investigations.
Whenever a IRS Agent get a case for back taxes the IRS will always ask for the taxpayer to give them a current financial statement and that serves as the basis for there investigation.
It also serves to let the IRS Agent IRS know whether you have perjured yourself or have been truthful with the Internal Revenue Service during the course of there investigation.
IRS will use the tools on the Internet to help find out the truth about the case they are working. They will need to attach said documentation to their manager before closing out the case. Most of these investigations last anywhere between 10 and 20 hours.
Before you contact the IRS on a large dollar case it is best to talk to a season tax professional that can walk you through the process and review the different tax options that are available to you. We are available for free tax consultation.
Please remember in working these cases all your tax returns need to be filed, current and up-to-date. It is also very important when giving IRS a financial statement to make sure it is completely accurate and correct to avoid any possible criminal possibilities of fraud.
It only makes sense to hire former IRS agents and managers to negotiate your large dollar IRS tax debt. Having our team worked there for over 60 years when you know the exact systems, the exact protocols, the exact investigative techniques and tax settlement options.
Do you IRS Over $100k in Back Taxes, you better CALL US – Former Agents
by Fresh Start Tax | Sep 11, 2013 | Tax Help
So okay, you made a mistake on your tax return is not a big deal to fix or correct. Thousands of taxpayers make mistakes on their tax returns. Many taxpayers receive 1099s or W-2s or many have found additional expenses that they failed the claim so IRS has put the procedure of the amended tax return in place.
If you need help with this process we can file your amended tax return and settle any tax debt if that is the case.
Amended Tax Returns
If you discover an error after your return has been filed, you may need to amend your return. The IRS may correct errors in math on a return and may accept returns with certain forms or schedules left out.
In these instances, do not amend your return! However, do file an amended return if there is a change in your filing status, income, deductions, or credits.
Also, if the Form 8938 (PDF), Statement of Specified Foreign Financial Assets, applies to you, see Filing Form 8938 after filing 2011 or 2012 annual returns in the Form 8938 Instructions.
Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), Form 1040EZ (PDF), Form 1040NR (PDF), or Form 1040NR-EZ (PDF).
If you are filing to claim an additional refund, wait until you have received your original refund (you may cash that check). If you owe additional tax for a tax year for which the filing date has not passed, file Form 1040X and pay the tax by the filing date for that year to avoid penalties and interest.
If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. The Form 1040X Instructions list the addresses for the service centers.
KEY NOTE : File a separate Form 1040X for each year you are amending.
- You need to mail each form in a separate envelope.
- Be sure to enter the year of the return you are amending at the top of Form 1040X.
The form has three columns. Column A shows original or adjusted figures from the original return. Column C shows the corrected figures. The difference between Columns A and C is shown in Column B.
There is an area on the back of the form to explain the specific changes being made and the reason for each change. Attach any forms or schedules that are affected by the change. Generally, to claim a refund, Form 1040X must be filed within 3 years from the due date of your original return or within 2 years from the date you paid the tax, whichever is later. Returns filed before the due date (without regard to extensions) are considered filed on the due date.
Attach copies of any forms or schedules that are being changed as a result of the amendment, including any Form(s) W-2 received after the original return was filed.
Tax forms can be obtained by calling 800-829-3676 or visiting www.irs.gov.
Two notes of interest
1. An amended tax return cannot be filed electronically under the e-file system.
2. Normal processing time for Forms 1040X is 8 to 12 weeks from the IRS receipt date.
State tax liability
Please note: Your state tax liability may be affected by a change made on your federal return. For information on how to correct your state tax return, contact your state tax agency.
You can check the status of your Form 1040X (PDF), Amended U.S. Individual Income Tax Return, using the “Where’s My Amended Return?” (WMAR) online tool, or the new toll-free telephone line 866-464-2050 three weeks after you file your amended return. Both tools are available in English and Spanish and track the status of amended returns for the current year and up to three prior years.
You must enter your Taxpayer Identification Number, usually your social security number, date of birth, and ZIP code in either application to prove your identity.
Once authenticated, you can view the status of your amended return across three processing stages–Received, Adjusted and Completed.
The Web tool includes an illustrated graphic that visually communicates where your amended return resides within the processing stages.
As a reminder, amended returns take up to 12 weeks to process and up to three weeks to show in the application.
There’s no need to call the IRS unless the application specifically tells you to do so.
How to File and AMENDED TAX RETURN – Fresh Start Tax – Former IRS
by Fresh Start Tax | Sep 11, 2013 | FBAR
The Internal Revenue Service has dedicated millions of dollars of assets to look into the practices of offshore and overseas bank accounts.
In the last three years, the Internal Revenue Service has made tremendous headway into achieving the dream of full tax compliance for Offshore and Overseas bank accounts.
The public should beware that the IRS means business. There are millions and millions of dollars at stake. IRS will use the long arm of the law including criminal prosecution to make sure they collect all the money due the United States government.
It is in your best interest to consult a tax lawyer or tax attorney to review your individual case to make sure you achieve the best financial and tax result.
Latest News- Tax deal reached between Switzerland and the United States
A tax deal reached between Switzerland and the United States on Thursday effectively put an end to the status of the small Alpine country as a tax haven for wealthy Americans.
The agreement came after more than three years of intense discussions between the two countries, is expected to punish Swiss banks that helped wealthy Americans hide money from United States tax authorities in offshore accounts and require them to disclose information about United States account holders.
Even before the tax agreement many banks in Switzerland had started to turn away American clients, fearing at least additional administrative burdens from the United States authorities.
The deal is expected to accelerate that trend and make it even harder for American expatriates in Switzerland to find banking services.
IRS and DOJ involved
The Internal Revenue Service and the Department of Justice is very active in the offshore voluntary disclosure program simply because of the huge revenue these programs bring into the coffers of the United States government.
In the first three years of operation the program has yielded an amazing $5.5 billion in additional revenue. Estimates are that there are at least $200 billion of additional revenue that can be brought in because of tax compliance issues.
In the past, the IRS has been very lenient on some taxpayers because the program was new and in the infancy stages of development and programming.
But now that the word is out , the government is taking a much more aggressive approach both financially and criminally on both financial institutions and taxpayers who are failing to comply with tax compliance issues.
If you have questions or need tax representation for FBAR tax compliance feel free to call us today and speak directly to a tax attorney, tax lawyer, CPA or all of our experts in the industry.
You can call us today for a free initial tax consultation.
Current FBAR Guidance – FBAR final regulations
On February 24, 2011, the Treasury Department published final FBAR regulations. These regulations became effective March 28, 2011, and apply to FBARs required to be filed with respect to foreign financial accounts maintained at any time during calendar year 2010, and for FBARs required to be filed with respect to all subsequent calendar years. The FBAR form and instructions were revised to reflect the amendments made by the final regulations.
Filing deferral for certain individuals with signature authority only, effective through June 30, 2014.
Open-ended offshore voluntary disclosure program (OVDP)
The IRS began an open-ended offshore voluntary disclosure program (OVDP) in January 2012 on the heels of strong interest in the 2011 and 2009 programs. The IRS may end the 2012 program at any time in the future.
The IRS is offering people with undisclosed income from offshore accounts another opportunity to get current with their tax returns.
The 2012 OVDP has a higher penalty rate than the previous program but offers clear benefits to encourage taxpayers to disclose foreign accounts now rather than risk detection by the IRS and possible criminal prosecution.
Offshore Voluntary Disclosure Program – The Submission Requirements
As a condition to being accepted into the Offshore Voluntary Disclosure Program (OVDP), applicants/taxpayers must provide the IRS the following for the eight year voluntary disclosure period.
1. Applicants: Copies of previously filed original (and, if applicable, previously filed amended) federal income tax returns for tax years covered by the voluntary disclosure.
2. Applicants: Complete and accurate amended federal income tax returns (for individuals, Form 1040X, or original Form 1040 if delinquent) for all tax years covered by the voluntary disclosure, with applicable schedules detailing the amount and type of previously unreported income from the account or entity (e.g., Schedule B for interest and dividends, Schedule D for capital gains and losses, Schedule E for income from partnerships, S corporations, estates or trusts, and, for years after 2010, Form 8938, Statement of Specified Foreign Financial Assets).
For taxpayers who began filing timely, original, compliant returns that fully reported previously undisclosed offshore accounts or assets before making the voluntary disclosure for certain years of the offshore disclosure period, copies of the previously filed returns for the corresponding years.
3. Applicants: Copy of your completed and signed Offshore Voluntary Disclosures letter and attachment.
4. Applicants: A check made out to the U.S. Treasury. Checks should not be made out to the IRS.
The check must include the amount of tax, interest, and accuracy-related penalty under IRC § 6662(a), and, if applicable, the failure to file and failure to pay penalties under IRC § 6651(a) (the suspension of interest provisions of IRC § 6404(g) do not apply to interest due in this initiative).
If you cannot pay the total amount of tax, interest, and penalties as described above, submit your proposed payment arrangement and a completed Collection Information Statement ( Form 433-A, Collection Information Statement for Wage Earners and Self-employed Individuals, or Form 433-B, Collection Information Statement for Businesses, as appropriate).
You can find these forms on our website. Go to the home page and click on forms.
5. Applicants: Completed Foreign Account or Asset Statement for each previously undisclosed foreign account or asset during the voluntary disclosure period if the information requested in that statement was not already provided in your initial Offshore Voluntary Disclosures Letter.
6. Applicants: Completed penalty computation worksheet showing the applicant’s determination of the aggregate highest account balance of his/her undisclosed offshore accounts, fair market value of foreign assets, and penalty computation signed by the applicant and the applicant’s representative if the applicant is represented.
7. Applicants: Properly completed and signed agreements to extend the period of time to assess tax (including tax penalties) and to assess FBAR penalties.
8. Applicants disclosing offshore financial accounts:
Copies of filed Forms TD F 90-22.1 (FBARs) for foreign accounts maintained during calendar years covered by the voluntary disclosure.
(You should file delinquent FBARs according to the FBAR instructions and include a statement explaining that the FBARs are being filed as part of the OVDP. Through June 30, 2013, you may file electronically or by sending paper forms to:
Department of Treasury, Post Office Box 32621, Detroit, MI 48232-0621. After June 30, 2013, you must file electronically.)
If you are unable to file electronically, you may contact FinCEN’s Regulatory Helpline at 1-800-949-2732 or (if calling from outside the United States) 1-703-905-3975 to determine possible alternatives for timely reporting.
NOTE: Taxpayers filing FBARs electronically do not currently have the technological ability to include a statement explaining why the FBARs are filed late.
Until such time that they have the ability, it is sufficient to file the FBARs electronically, retain the statement, and submit the statement to the Service upon request.
9. Applicants disclosing offshore financial accounts:
For those applicants disclosing offshore financial accounts with an aggregate highest account balance in any year of $500,000 or more, copies of offshore financial account statements reflecting all account activity for each of the tax years covered by your voluntary disclosure.
You need to explain any differences between the amounts reported on the account statements and the tax returns.
For those applicants disclosing offshore financial accounts with an aggregate highest account balance of less than $500,000, copies of offshore financial account statements reflecting all account activity for each of the tax years covered by your voluntary disclosure must be available upon request.
10. Applicants disclosing offshore entities:
A statement identifying all offshore entities for the tax years covered by the voluntary disclosure, whether held directly or indirectly, and your ownership or control share of such entities.
11. Applicants disclosing offshore entities: When accounts or assets were held in the name of a foreign entity, complete and accurate amended (or original, if delinquent) information returns required to be filed, including, but not limited to, Forms 3520, 3520-A, 5471, 5472, 926 and 8865 for all tax years covered by the voluntary disclosure.
If the applicant is requesting that the Service waive the information reporting requirement, the applicant should submit a completed and signed Statement on Dissolved Entities.
12. Estates and certain executors or advisors.
If the applicant is a decedent’s estate, or is an individual who participated in the failure to report the foreign account, foreign asset, or foreign entity in a required gift or estate tax return, either as executor or advisor, provide complete and accurate amended estate or gift tax returns (original estate or gift tax returns, if not previously filed) for tax years covered by the voluntary disclosure necessary to correct the under reporting of assets held in or transferred through undisclosed foreign accounts or foreign entities.
13. Returns involving Passive Foreign Investment Company (PFIC) issues. A statement whether the amended returns involve PFIC issues during the tax years covered by the OVDP period, and if so, whether the applicant chooses to elect the alternative to the statutory PFIC computation that resolves PFIC issues on a basis that is consistent with the mark to market (MTM) methodology authorized in IRC § 1296 but does not require complete reconstruction of historical data.
Canadian registered retirement savings plans (RRSP)
14. Applicants with Canadian registered retirement savings plans (RRSP) or registered retirement income funds (RRIF) who wish to make late elections to defer U.S. tax on RRSP or RRIF earnings:
A statement requesting an extension of time to make an election,
Forms 8891 for all tax years and type of plan covered under the voluntary disclosure,
A dated statement signed by the taxpayer under penalties of perjury describing:
1. Events that led to the failure to make the election
2. Events that led to the discovery of the failure
If the taxpayer relied on a professional advisor, the nature of the advisor’s engagement and responsibilities.
We are a full service tax firm that specializes in FBAR, Offshore and Overseas tax compliance in all federal and state tax matters.
You can call us for a no cost initial consultation.
If you have sensitive issues and matters you wish to discuss when calling our office you should ask to speak to a tax lawyer or tax attorney so you can keep attorney-client privilege. You should never give sensitive information that may be of criminal nature to any third party. Keep your attorney client privilege.
As a personal comment and observation, the government always goes after low hanging fruit because of its effectiveness. In the case of overseas, offshore, and FBAR compliance there is a six to one ratio of collection to manpower. It is no wonder that the federal government absolutely love these programs. Not only that the government can boast of criminal prosecutions that are easy cases because of the paper trail these cases have.
Offshore, Overseas Accounts, FBAR Compliance – Lawyers, Attorneys – Nationwide Affordable Experts
