by Fresh Start Tax | Sep 11, 2013 | IRS Tax Audit
If you have just gone through a IRS audit and wish to appeal the results of your IRS audit contact us today so we can review the results of your case and go over tax strategies and opinions on how to be successful on the next level.
We are South Florida tax experts for the IRS on appeal. We are comprised of tax attorneys, certified public accountants, and former IRS agents and managers with over 60 years of working directly in the local, district, and regional tax offices of the Internal Revenue Service right here in South Florida.
Also on staff is a former IRS appeals agent of over 25 years. We are one of the most experienced tax firms in South Florida dealing with the IRS audit appeal system.
How to File a IRS Audit Appeal
Most differences can be settled within this system without going to court.
Reasons for disagreeing must come within the scope of tax laws, however.
A IRS Audit Appeal of a case cannot be based only on moral, religious, political, constitutional, conscientious, or similar grounds.
A case may be taken directly to tax court if the taxpayer does not want to appeal within the IRS. is best in each situation to go to the IRS audit appeal to understand the strategies in the reasoning of the Internal Revenue Service.
We never recommend any taxpayer go directly to tax court but the IRS audit appeal is the most logical and cost-effective place to try to settle your differences.
Appeal Within the Internal Revenue Service
The tax decision reached by the examiner may be appealed to a local appeals office, which is separate and independent of the IRS Office that conducted the examination.
An appeals office is the only level of appeal within the IRS.
IRS Conferences with appeals office personnel may be conducted in person, through correspondence, or by telephone with the taxpayer or its authorized representative.
Instructions for requesting a conference with an appeals officer are provided in the letter of proposed tax adjustment.
In FSLG, the Letter 950 is generally used to propose adjustments to employment taxes. It states that to request a conference with an appeals officer, the taxpayer will need to file either a small case request or a formal written protest with the contact person named in the letter.
Whether you file a small case request or a formal written protest depends on several factors.
If a conference is requested the examiner will send the conference request letter to the appeals office to arrange for a conference at a convenient time and place. The taxpayer or its qualified representative should be prepared to discuss all disputed issues at the conference. Most differences are settled at this level.
Only attorneys, certified public accountants or enrolled agents are allowed to represent a taxpayer before Appeals.
Making a Small Case Request for a IRS Audit Appeal – $25,000 or less.
A small case request is appropriate if the total amount of tax, penalties, and interest for each tax period involved is $25,000 or less.
If more than one tax period is involved and any tax period exceeds the $25,000 threshold, a formal written protest for all periods involved must be filed.
The total amount includes the proposed increase or decrease in tax and penalties or claimed refund.
To make a small case request, the instructions in the letter of proposed tax adjustment provide that the taxpayer should send a brief written statement requesting an appeals conference and indicate the changes with which it does not agree with and the reasons it does not agree with them.
Be sure to send the protest within the time limit specified in the letter you received, which is generally 30 days. if the IRS does not receive your IRS audit appeal within the 30 days you lose your right to appeal with the Internal Revenue Service. It is very important you keep mailed documents such as certified mail to prove your IRS audit appeal was sent out in a timely basis.
IRS Audit Appeal – Filing a Formal Protest
When a formal protest is required, it should be sent within the time limit specified in the letter.
The following should be provided in the protest:
1. Taxpayer’s name and address, and a daytime telephone number.
2. A statement that taxpayer wants to appeal the IRS findings to the Appeals Office.
3. A copy of the letter proposed tax adjustment.
4. The tax periods or years involved.
5. A list of the changes that the taxpayer does not agree with, and reason for disagreement.
6. The facts supporting the taxpayer’s position on any issue that it does not agree with.
7. The law or authority, if any, on which the taxpayer is relying.
8.The taxpayer must sign the written protest, stating that it is true, under the penalties of perjury as follows:
“Under the penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete.”
If the taxpayer’s representative prepares and signs the protest for the taxpayer, he or she must substitute a declaration stating:
That he or she submitted the protest and accompanying documents and;
Whether he or she knows personally that the facts stated in the protest and accompanying documents are true and correct.
The IRS may settle your IRS audit appeal dispute by using a method called the hazards of litigation
Example – You may be asking yourself just what are the hazards of litigation.
The Appeals Officer first reviews and evaluates the facts in the case, and the applicable statutes and legal precedents.
After considering all of these aspects, he or she will evaluate the “hazards” the government (IRS) will face in pursuing the case into the appropriate court. If the Appeals Officer believes that the IRS may have a 30% chance of losing the case in trial, then she will entertain a settlement proposal whereby the taxpayer concedes 70% of the case.
Call us today for a free initial tax consultation and we will review your IRS audit appeal.
IRS Audit Appeal – Former Appeals Agent – Miami, Ft.Lauderdale, Pompano, Boca, Palm Beaches
by Fresh Start Tax | Sep 11, 2013 | Tax Help
Unable to Pay IRS Taxes – South Florida
We are a local South Florida tax firm comprised of tax attorneys, certified public accountants and former IRS agents. We have been practicing since 1982 right here in South Florida and have an A+ rating.
If you are unable to pay your IRS back taxes as a general rule you have three available tax options.
I know them all, I was a former IRS agent in teaching instructor.You may speak with us for a no cost consultation. When you call our office you will speak directly to a tax professional.
You should know that IRS will require that all your tax returns are filed and up-to-date and that you have enough withholding being taken out of your pay check so that you will not continue to incur more tax debt. If you are not current the Internal Revenue Service will begin taking enforcement action.
So before you do anything with the IRS, make sure you are in tax compliance with back tax filings and current withholding’s. Many time the IRS will ask last to see a current estimate payment or a pay stub slip to verify you have withholding being taken now your check.
How the IRS will Deal with your Paying Back Taxes (Unable to Pay IRS Taxes )
IRS deals with all tax debtors in the same way.
No matter where you live or who you are, there is one standard for every taxpayer.
IRS will require a current financial statement which will be on IRS form 433F. If the cases is in the local office the revenue officer will require the longer version which is the 433 -A.
That form will have to be submitted to the Internal Revenue Service with all documentation including pay stubs, bank statements, and proof of all income and expenses for the last six months.
IRS will then take that financial statement and compare that to the national and regional statistics in the area that you live for all allowable living expenses.
IRS will then come to a determination based on your financial statements up against those of the national and regional standards. You can find the charts of the national and regional standards on our website.
After IRS carefully conducts a financial review you will fall in one of three categories based completely on that financial statement.
Your case will either be put into;
1. a non-collectible file which it will remain for anywhere from 1 to 3 years,
2. IRS will insist on a monthly payment or installment plan, or
3. you can be eligible for an offer in compromise or tax settlement
Question: I am unable to pay my delinquent taxes. Will the IRS accept an Offer in Compromise?
Answer:
You may qualify for an Offer in Compromise if you are unable to pay your taxes in full or if you are facing economic hardship or other special circumstances.
Note: Offer in Compromise Application Fee – Your offer must include the $150 application fee. If you are requesting a low-income exception of the fee, you must complete section 4 of the Form 656 (PDF), Offer in Compromise.
Offers received without the $150 fee or a completed section 4 of the Form 656 will not be accepted for processing. Please see Step 6 on Page 4 of the Form 656-B (PDF), Offer in Compromise Booklet, for more information on the application fee, and section 4 of the Form 656 to determine if you qualify for the low-income exception.
Please also see Steps 2 and 3 on Page 4 of the Form 656-B to determine whether your application must include either a completed Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
If you are not granted an Offer-in-Compromise and you are still unable to pay your delinquent taxes in full, you still may be eligible for an installment agreement.
File Form 433-D (PDF), Installment Agreement, and pay a $105 user fee, which we have the authority to deduct from your first payment(s) ($52 for direct debit).
If you default on your installment agreement, you must pay a $45 reinstatement fee if we reinstate the agreement.
You can call us today for more details.
We will give you a free tax assessment if you are unable to pay IRS taxes. We will review your financial statement and tell you that the exact way the Internal Revenue Service will deal with you.
If you have back returns you need to file we can prepare those before calling the Internal Revenue Service. Remember all your returns must be on the IRS computer before IRS will close out your case.
Unable To Pay IRS Back Taxes – Call Former IRS agents – Miami, Ft.Lauderdale, Pompano, Boca, Palm Beaches
by Fresh Start Tax | Sep 11, 2013 | Tax Help
Unable to Pay IRS Taxes
If you are unable to pay your IRS taxes as a general rule you have three available tax options.
I know them all, I was a former IRS agent in teaching instructor.You may speak with us for a no cost consultation.
You should know that IRS will require that all your tax returns are filed and up-to-date and that you have enough withholding being taken out of your pay check so that you will not continue to incur more tax debt.
So before you do anything with the IRS, make sure you are in tax compliance with back filings and current withholding’s.
How the IRS will Deal with your Paying Back Taxes (unable to Pay IRS Taxes )
IRS deals with all tax debtors in the same way.
No matter where you live or who you are, there is one standard for every taxpayer.
IRS will require a current financial statement which will be on IRS form 433F.
That form will have to be submitted to the Internal Revenue Service with all documentation including pay stubs, bank statements, and proof of all income and expenses for the last six months.
IRS will then take that financial statement and compare that to the national and regional statistics in the area that you live for all allowable living expenses. IRS will then come to a determination based on your financial statements up against those of the national and regional standards.
After IRS carefully conducts that review you will fall in one of three categories based completely on that financial statement. Your case will either be put into;
- a non-collectible file which it will remain for anywhere from 1 to 3 years,
- IRS will insist on a monthly payment or installment plan, or
- you can be eligible for an offer in compromise or tax settlement
Question: I am unable to pay my delinquent taxes. Will the IRS accept an Offer in Compromise?
Answer:
You may qualify for an Offer in Compromise if you are unable to pay your taxes in full or if you are facing economic hardship or other special circumstances.
Note: Offer in Compromise Application Fee – Your offer must include the $150 application fee. If you are requesting a low-income exception of the fee, you must complete section 4 of the Form 656 (PDF), Offer in Compromise.
Offers received without the $150 fee or a completed section 4 of the Form 656 will not be accepted for processing. Please see Step 6 on Page 4 of the Form 656-B (PDF), Offer in Compromise Booklet, for more information on the application fee, and section 4 of the Form 656 to determine if you qualify for the low-income exception.
Please also see Steps 2 and 3 on Page 4 of the Form 656-B to determine whether your application must include either a completed Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
If you are not granted an Offer-in-Compromise and you are still unable to pay your delinquent taxes in full, you still may be eligible for an installment agreement.
File Form 433-D (PDF), Installment Agreement, and pay a $105 user fee, which we have the authority to deduct from your first payment(s) ($52 for direct debit).
If you default on your installment agreement, you must pay a $45 reinstatement fee if we reinstate the agreement.
You can call us today for more details.
We will give you a free tax assessment if you are unable to pay IRS taxes. We will review your financial statement and tell you that the exact way the Internal Revenue Service will deal with you. If you have back returns you need to file, we can prepare those before calling the Internal Revenue Service.
We are friendly, affordable and one of the most experienced tax firms in dealing with IRS resolution matters.
Unable to Pay IRS Taxes – Your Options Explained – Former IRS
by Fresh Start Tax | Sep 10, 2013 | Tax Help
It is bad enough that we have to pay the taxes that we do and what’s worse is paying the IRS penalties and interest.
You should know it’s possible to get abatement’s of IRS penalties and interest if reasonable cause exists.
To find out if you have reasonable cause you can go on our website click on abatement’s of penalties and interest and find out if you have a reason the IRS will except. If you do contact us today.
Question: What kinds of interest and penalties will I be charged for filing and paying my taxes late?
Answer: Interest is compounded daily and charged on any unpaid tax from the due date of the return (without regard to any extension of time to file) until the date of payment.
The interest rate is the federal short-term rate plus 3 percent.
That rate is determined every three months.
For current interest rates, go to News Release and Fact Sheet Archive and find the most recent Internal Revenue release entitled Quarterly Interest Rates or alternatively, search “quarterly interest rates” on our website, www.irs.gov.
Late payment penalty.
In addition, if you didn’t pay your tax on time, you’ll generally have to pay a late payment penalty.
The late payment penalty is one-half of one percent of the tax (0.5%) owed for each month, or part of a month, that the tax remains unpaid after the due date, not exceeding 25 percent.
You will not have to pay the penalty if you can show reasonable cause for the failure.
The one-half of one percent rate increases to one percent if the tax remains unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy.
Currently, if you filed a timely return and are paying your tax via an installment agreement, the penalty is one-quarter of one percent for each month, or part of a month, that the installment agreement is in effect.
If you did not file on time and owe tax, you may owe an additional penalty for failure to file unless you can show reasonable cause.
Did not file on time ??? This is a killer Penalty
The combined penalty is 5 percent (4.5% late filing, 0.5% late payment) for each month, or part of a month, that your return was late, up to 25%.
The late filing penalty applies to the net amount due, which is the tax shown on your return and any additional tax found to be due, as reduced by any credits for withholding and estimated tax payments.
After five months, if you still have not paid, the 0.5% failure-to-pay penalty continues to run, up to 25%, until the tax is paid.
The total penalty for failure to file and pay can be 47.5% (22.5% late filing, 25% late payment) of the tax owed.
If your return was over 60 days late, however, the minimum failure-to-file penalty is the smaller of $135 ($100 for returns required to be filed before January 1, 2009) or 100% of the tax required to be shown on the return.
IRS Penalties and Interest – How much are IRS Penalties – Former IRS
by Fresh Start Tax | Sep 10, 2013 | Tax Help
Changing you Maiden Name – IRS, Social Security Purposes
Name Changes & Social Security Number Matching Issues
Question:
Do I need to change my maiden name to my married name on my Social Security card for us to file jointly?
Answer:
No.!!!
You can still file “Married Filing Jointly” without changing your name with the Social Security Administration.
Make sure that the name shown on your Social Security card matches the name you use on your tax return.
If you haven’t changed your name with the Social Security Administration you will need to show your maiden name on the tax return instead of your married name.
For information on changing a name on your Social Security card due to marriage, contact the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) or visit the Social Security Administration website.
Changing you Maiden Name – IRS, Social Security Purposes
