by Fresh Start Tax | Aug 21, 2013 | Florida Sales Tax
If you owe back Florida sales tax make sure you take care of this liability as soon as you can. At the very least, contact us to find out the different options that are available to resolve your situation so Florida sales tax does not follow up with seizure enforcement.
Seizure enforcement can include frozen bank accounts, the filing of tax warrants or the seizure and loss of your business.
The State of Florida, Sales Tax, new tax policies and systems can more readily find your assets. They are now basing some of there collection techniques on predictive behavior models.
Predictive Analytics by the Department of Revenue
Predictive analytics encompasses a variety of techniques from statistics, modeling, machine learning, and data mining that analyze current and historical facts to make predictions about future, or otherwise unknown, events.
In business, predictive models exploit patterns found in historical and transactional data to identify risks and opportunities. Models capture relationships among many factors to allow assessment of risk or potential associated with a particular set of conditions, guiding decision making for candidate transactions.
What this really means is a department of revenue, state of Florida is now in the tracking business and is letting modern technology find out where you bank and your financial patterns. And if you all money to the state of Florida, Department of revenue beware there are collecting there money faster.
Florida Sales Tax Back Tax – Revenue to Use New Tax Collection System
The Department of Revenue, State of Florida will partly switch to a collection analytics system in early April.
It will allow the State of Florida Sales Tax Division to better focus their tax collection efforts to determine positive future tax payment outcomes, based on predictive behavioral models.
Now the system is automated and without hesitation or sympathy for the taxpayer – usually after 90 days of delinquency.
The data used by the new Collection Analytics system can come from a variety of source such as:
- the state unemployment tax returns,
- tracking that there may be an additional company,
- bank accounts used for payroll,
- checking with other government agencies
This mean much quicker enforcement for Florida Sales Tax
The Department of revenue system could now use this data to file a lien/warrant on the on the same day funds normally come into the account.
It is extremely important for taxpayers to respond promptly to bills and delinquency notices from the Department.
This new system of Collection Analytics should have no impact on taxpayers who file and remit their full amount of taxes on time.
Owe Florida Sales Tax, your name will be published
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.
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.
Place of Filing of a Warrant/Lien for Florida Sales Tax Division
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. For more details, read our privacy notice.
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:
1. Pay the amount in full.
2. Enter a stipulated payment agreement.
3. Provide information to prove the amount on the warrant is not due.
If you are dealing with any issues or Florida sales tax issues, contact us today and speak directly tax attorneys, tax lawyers, or a former Florida Sales tax agent.
Our firm has well over 300 years professional tax experience and have an A+ rating with the better business bureau and have been in private practice since 1982.
Owe Florida Sales Tax – Warrants, Liens, Frozen Bank Accounts – FLORIDA
by Fresh Start Tax | Aug 21, 2013 | Tax Help
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- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents, Former Sales Tax Agents, State of Florida
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- Payment Plans, Installment Agreements, Structured agreements
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- Filing Late, Back, Unfiled Tax Returns
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by Fresh Start Tax | Aug 21, 2013 | Florida Sales Tax
Insider Tips from – Former – Sales Tax Auditor
Are you located in Atlanta, Charlotte, Raleigh or any other state and being audited by The State of Florida Sales Tax.
Are your books and records located in your state other than Florida and you have “Nexus” in Florida?
We can represent companies in all 50 States for Florida Sales Tax Audits.We are Out of State specialists.We can travel to you.
Our former Florida sales tax auditor who has conducted Florida audits in all of these states has insider information that will help you while under a Florida Sales Tax Audit.
Our insider – Former sales tax auditor – can travel to your location or we can have the audit handled at our location in Georgia or Florida.
The state of Florida targets certain industries for audits “they like low hanging fruit” if they think there is easy tax recovery with minimal work hours they target specific industries.
The industry type can be a factor in why they were chosen for an audit – current industries the DOR has targeted for “Low Hanging Fruit”
Which Industries are ” low hang fruit?”
• Hotels
• Restaurants
• Car dealerships
• Convenience stores
• Retail stores
• Manufacturing companies
• Shipping companies
These industries are typically low hanging fruit because all of the available dollars collected from Florida sales tax audits. These companies have a history of being repeated offenders within the state of Florida. As a result, you will find continued audits for Florida sales tax department of revenue.
As a – Florida Sales Tax – Insider I have found major recovery from in these areas, so beware, the auditors will probably be looking here:
• fixed assets
• consumable supplies
• disallowed exempt sales
• unreported income
Also, bars, restaurants and liquor stores that are cash based businesses and cash has a way of getting lost or not reported.
Does your company have Nexus with – The State of Florida?
The answer could be yes, depending on conditions in which business activities occur.
Your out-of-state company with Nexus could be a target of a Florida sales tax audit
Nexus
Nexus in general terms means a connection. The term Nexus is used in tax law to describe a situation in which a business has “Nexus” or presence in a state and thus subject to state sales taxes for sales within that state.
Here are some cases in which a business might have a sales tax Nexus in the state:
• if the business has a physical location in the state
• if there are resident employees working in the state
• if the business has property including intangible property in a state
• if there are employees who regularly solicit business in the state
Nexus for state sales tax purposes has in the past required a physical presence of the taxing business in that state; most recently Nexus has also been invoked in relation to affiliates.
In corporate law and taxes, and the affiliate is a company that is related to another company, usually by being in the position of a member or subordinate role. Two companies may be affiliated if one company has control over the other or if both are controlled via third company.
Your out-of-state company with Nexus could be subject to back taxes
Beware if your out-of-state company is subjected to a Florida State tax audit an assessment will be issued for a three-year audit.
Charging Florida Sales Tax
Businesses who have Nexus and who also sell products in some services are required by the state in which they do business to collect sales tax, at the applicable sales tax rate for that state including local option taxes sales tax rate is separately stated and added to the price of the goods/services by the merchant.
Sales tax is a trust fund tax, meaning that when you collect the taxes you are doing so on behalf of the state and you are required to turn this money back to the state in a timely manner.
ISSUES AN OUT OF STATE BUSINESS COULD HAVE DOING BUSINESS IN – FLORIDA
• commercial rent
• rental consideration
• Fixed assets located in Florida
• consumable supplies used in the Florida locations
Your business that is located in a state other than Florida and when you conduct business in Florida either directly or indirectly you will be subject to the same laws of a Florida-based company for your Florida locations.
You need to be aware that even though your headquarters is out of the state of Florida if you rent any commercial real property in the state of Florida this commercial real property will be subject to taxation in the state of Florida.
Beware the state of Florida imposes a sales tax on all commercial rental property in the state of Florida. I can tell you that as a former auditor many businesses that I audited in Georgia and other Southern states and had other locations in the state of Florida were not aware that real estate when rented was taxable.
Also, companies that had a related company that paid rent to itself were subject to commercial sales tax.
In addition to the rent being taxable, rental consideration such as paying the real estate ad valorem tax on behalf of the landlord is taxable as rental consideration.
When you purchase fixed assets and consumable supplies from vendors outside of the state of Florida and have these consumable items and fixed assets shipped to your location in Florida they are subject to a sales tax and if a sales tax was not charged by the vendor.
The use tax should have been paid to the state of Florida on your sales tax return.
Beware – more than likely these out of state vendors would not have been registered with Florida and would not have charged a Florida sales tax on your purchases.
Remember that any tax liability you have will be for the whole audit period and could amount to a sizable amount of tax, penalty and interest.
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
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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.
Florida Sales Tax Audits – Out of State Taxpayers – Atlanta, Charlotte, Raleigh
by Fresh Start Tax | Aug 20, 2013 | Florida Sales Tax
We are a full service professional tax firm that specializes in all Florida sales tax issues. Our tax specialty deals with non-filers, owing back taxes consulting services and Florida sales tax representation.
Do not be bullied by Florida Sales Tax. Let Former Agents and Attorneys fight back.
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All work is done in-house by a qualified staff of Florida sales tax experts.
We have well over 300 years of professional tax experience and over 75 years of working directly for government agencies.
We have been in private practicing since 1982 and have an A+ rating by the Better Business Bureau.
You can contact us for a free initial tax consultation and hear the truth about your case.
We are experienced, affordable and when of the most trustworthy tax firms in the industry.
We offer a full range of tax and accounting services including Florida sales tax consultations and Florida sales tax representation. We cover the entire state of Florida.
Professional Tax Representation
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents, Former Sales Tax Agents, State of Florida
- Full Service Accounting Tax Firm,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A” Plus
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
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- Payment Plans, Installment Agreements, Structured agreements
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Sales Tax – FLORIDA – Consulting, Services, Representation
by Fresh Start Tax | Aug 20, 2013 | Back Taxes
The Process of Ending IRS Problems
If you have back unfiled tax returns you can send them into Internal Revenue Service and settle your case all at one time.
The process is much simpler than you think.
Many taxpayers have a fear and hesitation about filing back taxes because this is been a mounting issue of fear in their life.
As a former IRS agent and teaching instructor let me tell you that IRS is more than happy to get you back in the system.
So don’t let fear and anxiety keep you from filing unfiled back tax returns.
Back Tax Records
If you do not have many of your tax records you can request an income transcript from the IRS and they will provide for you the last six years of income records and you can use that as a base for you to file your back unfiled back taxes.
Being former IRS agents and managers we are experts in tax return reconstruction and we can prepare all your unfiled back taxes. Being former IRS agents there are methods to use to file safe and protected tax returns. We can help audit proof your return from IRS
It is always wise to have an exit strategy if you’re going own money on your unfiled back taxes.
What is an Exit Strategy
An exit strategy is a way to close your case with the Internal Revenue Service.
In each and every case IRS will need a current financial statement which signals to IRS how they will deal and handle your case and close it off of the IRS enforcement computer.
You should plan to fill on a form 433-F which is the IRS financial statement and bring that form to a professional tax firm.
That firm will go ahead and give you an exit strategy on how to settle your case with the IRS. You could call us for your free initial tax consultation we can walk you through the process of filing and settling your tax debt.
There are various settlement strategies for unfiled back taxes Thank you
There are three settlement tax strategies and all are based on your current financial statement . after IRS reviews your current financial statement IRS may deem you as:
- currently non-collectible case and put you into economic tax hardship status.
- IRS may look at your financial statement and determine that you are eligible for installment or monthly payment plan.
- The third and last strategies for you to actually settle your case for pennies on a dollar and file what is known as an offer in compromise.
While the first two exit tax strategies will last a couple years only the offer in compromise exit strategy will permanently solve your case once and for all.
What is an Offer In Compromise – Settle tax once and for all
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
In order to be eligible for an OIC, the taxpayer must :
1. have filed all tax returns,
2. made all required estimated tax payments for the current year, and
3. made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
If you do not meet the requirement listed above do not even bother to file for an offer in compromise.
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).
The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
Another basic rule of thumb is you must at least offer IRS the total value of all your assets.
The IRS may accept an OIC based on three grounds.
First, acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third, acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Settlement Submission
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of:
- Form 656 (PDF), Offer in Compromise, and
- also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or
- Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
Application fee for Tax Settlements
In general, a taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
- First – no application fee is required if the OIC is based on doubt as to liability.
- Second, the fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
Lump Sum Tax Settlements
A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted. If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $150 application fee. The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.
The 20 percent amount will be applied to the taxpayer’s tax liability. The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
Periodic Tax Settlement
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer.
Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer.
These amounts are also nonrefundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Pre-Qualifier Tool for Tax Settlement
As of last year the Internal Revenue Service came out with the pre-qualifier tool for tax settlements. Before you go running off filing an offer in compromise walk through the pre-qualifier tool that you can find on our website.
More news on Unfiled Back Taxes and Settle Tax
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties.
Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
If the IRS rejects an OIC, then the taxpayer will be notified by mail.
If the IRS rejects your are offer in compromise keep in mind you can always fill on another and send it back in. It is wise to correct the problems have a professional firm review it and then send it into the IRS.
You can send in as many offers in compromise you like to the Internal Revenue Service just make sure they are valid and that you are a qualified candidate
The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter. In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
If you have unfiled back taxes and wish to file your returns and settle your tax debt contact us today and speak directly to tax attorneys, certified public accountants, or former IRS agents, managers and tax instructors.
We have over 300 years of professional tax experience in dealing with unfiled back taxes and over 60 years of direct IRS working experience in filing and settle back taxes.
The process of ending your IRS problems can be made simple with one phone call our office.
Unfiled Back Taxes – File, Settle Tax – The Process of ending IRS Problems
