by Fresh Start Tax | Aug 23, 2013 | Florida Sales Tax
Let our Former State Tax Agent Frank Lamantia ( 16 year vet ) represent you so you can stop the anxiety and worry of your Florida Sales Tax Debt.
Florida Sales Tax Debt – Insider Tips
The Florida Department of revenue can wage war against individuals and businesses that owe Florida sales tax.
The Florida Department of revenue has all sorts of enforcement tools in their bag of tricks including such frozen bank accounts, seizing or closing your business and opening an active criminal investigation for failure to pay your back Florida sales tax debt.
Start making current payments
If you are behind on your Florida sales tax debt. I would encourage you to start to make current payments and make some effort to show Florida sales tax you want to get back in the system.It will go a long way when working with them in negotiating with them.
Back delinquent tax returns
In the past the Florida Department of revenue would automatically send out notices for delinquent returns, followed by more severe notices, then threatening notices, then a Florida tax warrant with an estimate of the taxes due plus penalties and interest.
After the last threatening notice had been sent with no response then the matter would be taken over by a collection agent who might initiate a lien on the bank account normally used to pay the tax.
If that bank account did not have any funds then the collection agency would begin searching for other bank accounts or assets.
That was then – this is now!
The Florida Department of revenue began on March 1, 2012 using a new method called “COLLECTION ANALYTIC” to track down and seize funds of delinquent taxpayers for filing returns for paying taxes.
The new system analyzes data from various federal and state resources to predict where a company has funds.
The Florida Department of Revenue will then levy/seize funds without additional warning.
The source of data used by the new collection system can come from many sources. Such as state unemployment tax returns, and payroll accounts.
This new system could use the information to place a lien on the payroll account on the day that funds come into this account to meet a payroll.
Below is a quote from the Florida Department of revenue regarding the new collection analytic system
“Revenue to Use New Tax Collection System”
The Department switched to a collection analytic system in April.
The Florida Debt of Revenue says:
It will allow us to better focus our tax collection efforts to determine positive future tax payment outcomes, based on predictive behavioral models.
We will maximize collection outcomes by routing accounts to the collection step most likely to result in payment in the least amount of time, which will mean fewer follow-up notices and shorter time frames between collection and enforcement actions.
It is extremely important for taxpayers to respond promptly to bills and delinquency notices from the Department.
Collection analytic should have no impact on taxpayers who file and remit their full amount of taxes on time.”
Caution – Do not ignore notices from the Florida Department of revenue
When you receive any type of delinquent return, payment notice from the Florida Department of revenue – take this matter very seriously.
Florida Sales tax debt law can be very complicated and if you feel uncomfortable with handling this matter then discuss this with our tax law professionals.
Remember that if your bank accounts have been frozen by the Florida Department of revenue the funds are still there. They are just frozen for a period of time.
Keep in mind that any bank account with the same federal employment identification number as your business is subject to a lien.
It is very possible that you and your company should have a negotiator with the Florida Department of revenue collection agent to help release some or all the funds.
Our firm can assist in negotiating the release of funds on the business bank accounts.
Your bank account is the lively hood of your business and could be detrimental to the survival of your business.
We can negotiate with the Florida Department of revenue to help release these funds.
After the funds are released our next goal will be to determine whether the Florida Department of revenue’s claim that you owe money is correct.
We may still be up the help you even if the period of time to protest an assessment has passed.
Our Tax Firm for Sales Tax Debt
We are a full-service tax firm that specializes in federal 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.
Florida Sales Tax Debt – Former Agent Can Represent You
by Fresh Start Tax | Aug 23, 2013 | Sales Tax, State of Florida
Speak to a True Tax Professional Free Tax Consultation, Hear all your options, NOW!! Speak directly with the Experts.
We have over 100 years of working for government agencies and have worked thousands of cases. We offer you a free consultation so you can find the different options you have available to get the help you need to take care of a Tax Warrant.
If will owe Florida state sales tax you should know that the state of Florida publishes a list of names of businesses and individuals who owe back Florida sales tax.
The Florida Department of Revenue is authorized by law to publish a list of the names of taxpayers who have large unresolved tax liabilities.
These taxpayers have failed to pay or arrange to pay their debt, despite repeated attempts by the Department to collect the amount due.
Keep in mind that the state of Florida Department of revenue must make repeated attempts before these lists get published.
If you need help in these matters, contact us today for free initial tax consultation and see how we can help you if you owe sales tax and have a tax warrant that you are dealing with.
What is a Florida Tax Warrant
A Florida Tax Warrant is the Florida Department of Revenue’s version of a Tax Lien.
With regard to Sales and Use Taxes, it is a very serious matter, especially if it reflects taxes collected but not remitted.
This is one of the few matters that will even follow a business through bankruptcy and, under certain circumstances, make the owners and employees responsible for remitting the tax personally liable both civilly and criminally.
The Florida Department of Revenue takes these matters very seriously and publishes a list of people arrested for unpaid sales taxes monthly.
The names were selected according to the following criteria:
- Taxpayers who have unsatisfied tax warrants or liens totaling $100,000 or more, and
- In counties where no taxpayer has warrants or liens totaling $100,000, the two taxpayers with the highest amount of warrants or liens are included.
- Taxpayers who are in bankruptcy, who have entered into and are current on a stipulated payment agreement, or who have in place a payment agreement with the Department, are excluded.
Where the tax Warrant is Filed
The warrant or lien is a public record filed with the Clerk of Court or other government office in the county where the taxpayer is located.
The list is published according to section 213.053(19), Florida Statutes. Unauthorized use of this information is prohibited by Florida law.
The list will be updated every 30 days. The current list was posted on August 9, 2013.
If your name or business name appears on the list and you want to resolve your tax liability, contact your local Department of Revenue service center.
You must do one of the following:
- Enter a stipulated payment agreement.
- Provide information to prove the amount on the warrant is not due.
- Call Fresh Start Tax to seek a viable solution.
The Department of Revenue Collection Process
The Department of Revenue begins the collection process when a taxpayer fails to file a return, fails to make a payment, underpays the amount due, files late, pays late, or owes additional money that was discovered in an audit.
A delinquency notice (Notice of Delinquency) is issued when a return is not filed and a bill (Notice of Amount Due) is issued when a return is filed late or additional money is due.
The delinquency notice issued to a taxpayer indicates a return has not been filed, while the initial bill contains a breakdown of the additional amount due.
It is extremely important to take prompt action for resolution when you receive a billing or delinquency notice. Penalties and interest continue to accumulate until the entire amount of the tax is paid.
If the debt remains unpaid for 90 days, the Department will charge a 10% administrative collection processing fee to cover the costs of collecting the debt.
Failure to resolve your debt may result in your account being sent to a private collection agency.
If your account is sent to a private collection agency and the debt includes reemployment tax (formerly known as unemployment tax), you will be charged a separate fee by the collection agency.
The quickest way to resolve a bill is to pay it online.
If a delinquency notice is received, it is important to file the missing return(s) and pay the tax as soon as possible.
If a taxpayer is already enrolled for e-file and pay, they need to submit the missing returns and payments as they normally would. If not currently on e-file, enrollment for e-Services is easy.
A user ID and Password will be sent within 48 hours and then the taxpayer can electronically file and electronically pay past-due returns.
Failure to Respond
Failure to respond timely may result in further enforcement actions which could include:
- filing liens against property,
- freezing bank accounts, and
- revoking sales tax registration and other professional licenses.
If you need tax professionals to help deal with the matter owing Florida sales tax and dealing with tax warrants call us today for a free initial tax consultation and speak directly to true expert tax professionals.
You can speak to tax attorneys, CPAs, former Florida Department of Revenue Agent or former IRS agents and managers.
We are a full service tax firm that deals with all federal and state tax matters.
Owe Sales Tax Warrants, State of Florida – Help from Attorneys, Former Agents
by Fresh Start Tax | Aug 23, 2013 | Florida Sales Tax
There is nothing worse than to be pulled for an audit of any type no less a sales and use tax audit by the state of Florida.
Being former government agents we understand the anxiety and stress that these situation cause however due to our years of experience we understand the techniques that can be used as well as the tax strategies to avoid all the pain and anxiety that both individuals and businesses walk-through during a sales and use tax audit or an audit by the Internal Revenue Service.
It is also important to ask the auditor why your tax return was pulled for sales and use tax audit.
You want to stop the cycle and stop the trend so the state of Florida Department of revenue is not breathing down your back every couple of years.
HOW BUSINESSES ARE SELECTED FOR AUDIT BY THE STATE OF FLORIDA FOR SALES,USE TAX AUDITS
Several factors by the state of Florida, Department of Revenue have to be considered:
- The Department’s present Targeted Industries
- Amount of total sales being reported
- Amount of exempt sales being claimed
- Ratio of exempt sales to total sales
- Location of the business and programs being administered by the Sales, Use Tax Division
- Information from customers or employees or possible informant
You must remember that Florida sales tax wants to go after the low hanging fruit and find the easiest ways to collect backs tax revenue.They are no fools they know exactly where to go and were look and they know the industries that tend to bury their money from the Florida Department of revenue.
If you review the above list you will find out there are very specific reasons why Florida sales tax division goes after those areas. Basically they are easy targets.
They may also the receive information or tips from third parties, sometimes by ex-spouses, sometimes from referrals from other persons who simply wish to get you in trouble and many times. You may find your competition turning you in.
Florida sales tax division and the Department of revenue likes to keep you guessing.
Most of the factors above are obvious.
The Easy targets for Sales Tax Audits
- Companies with a history of prior audits where there was recovery will more than likely get audited again.
- Larger companies with high amounts of sales and those reporting high amounts of exempt sales are targeted.
- The industry type can be a factor in why they were chosen for an audit.
- Bars, restaurants, and liquor stores can be cash based businesses and cash has a way of getting lost or not reported.
Other elements that may contribute to your company being assessed in an audit on the lack of internal controls and or not understanding the sales tax laws.
One thing for sure Florida sales tax audits are increasing because of the huge amounts of revenue they produce for the state of Florida.
Criminal Activity
If you feel that there may be some criminal issues involved with some area of sales tax you best not represent yourself but find a competent criminal tax attorney who specializes in Florida sales tax audits and representation.
Here at Fresh Start Tax we have tax professionals who can help you either in-house or with placement for your particular situation.
The department of revenue for the state of Florida uses the criminal division to collect their back sales tax. It is a great collection technique either prison are paying back sales tax.
If you have received a letter stating that you are under criminal investigation by Florida sales tax audit by all means do not talk to the state of Florida, Department of revenue investigator. Immediately contact a tax attorney at Fresh Start Tax.
We are comprised of tax attorneys, tax lawyers, certified public accountants, former sales tax auditors, and former IRS agents, managers and tax instructors.
We have well over 300 years of professional tax experience and are A+ rated by the Better Business Bureau.
You can contact us today for a free initial tax consultation and hear the truth about your case. We can take the stress and the worry away from your life.
We have been in private practice in the state of Florida since 1982. We are one of Florida’s most experienced professional tax firms.
Sales, Use Tax Audits – Hire Former Agents- We know the Strategies – FLORIDA
by Fresh Start Tax | Aug 23, 2013 | Tax Help
Going to college can be a stressful time for students and parents.
Here are some helpful tax tips that you may be able to use to lower your income tax.
You can contact us today to learn more or have your tax return prepared by former IRS agents and managers.
American Opportunity Tax Credit.
This credit can be up to $2,500 per eligible student. The AOTC is available for the first four years of post secondary education. Forty percent of the credit is refundable. That means that you may be able to receive up to $1,000 of the credit as a refund, even if you don’t owe any taxes.
Qualified expenses include tuition and fees, course related books, supplies and equipment. A recent law extended the AOTC through the end of Dec. 2017.
Lifetime Learning Credit.
With the LLC, you may be able to claim up to $2,000 for qualified education expenses on your federal tax return. There is no limit on the number of years you can claim this credit for an eligible student.
You can claim only one type of education credit per student on your federal tax return each year.
If you pay college expenses for more than one student in the same year, you can claim credits on a per-student, per-year basis. For example, you can claim the AOTC for one student and the LLC for the other student.
You can use the IRS’s Interactive Tax Assistant tool to help determine if you’re eligible for these credits. The tool is available at IRS.gov.
Student loan interest deduction.
Other than home mortgage interest, you generally can’t deduct the interest you pay. However, you may be able to deduct interest you pay on a qualified student loan.
The deduction can reduce your taxable income by up to $2,500. You don’t need to itemize deductions to claim it.
These education benefits are subject to income limitations and may be reduced or eliminated depending on your income.
To learn more tax saving tips contacts fresh start tax today and have your tax return prepared by Former IRS agents assure that you are paying the lowest amount of tax allowed by law.
IRS Tax Deductions – Students, Parents, College Tips
by Fresh Start Tax | Aug 23, 2013 | Expatriate Tax, FBAR
Offshore Voluntary Disclosure Program Submission Requirements
If you need any help regarding offshore voluntary disclosure program submission requirements contact us today and speak to one of our expert tax professionals.
As a condition to being accepted into the Offshore Voluntary Disclosure Program (OVDP), applicants must provide the IRS the following for the eight year voluntary disclosure period. Yes, you read this right for 8 years.
1. All 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. All 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. All applicants. Copy of your completed and signed Offshore Voluntary Disclosures letter and attachment.
4. All applicants. A check made out to the U.S. Treasury. 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).
5. All 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. All 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. All applicants: Properly completed and signed agreements to extend the period of time to assess tax (including tax penalties) and to assess FBAR penalties.
8. All 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 the FinCEN Regulatory Helpline at 800-949-2732 to request an exemption.
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. All 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.
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. All 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. All 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. (See FAQ 29.)
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. A description of this alternative method is included in FAQ 10.
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:
- Events that led to the failure to make the election
- 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.
Our firm is staffed with tax attorneys, tax lawyers, certified public accountants, and former IRS agents and managers.
Contact us today for a free initial tax consultation and we will be able to help you on any offshore matters you may have.
Offshore Voluntary Disclosure Program Submission Requirements
