by Fresh Start Tax | Aug 20, 2013 | Tax Help
IRS Payment Plans, finding out your options
As a former IRS agent and teaching instructor many taxpayers have much anxiety in dealing with the Internal Revenue Service because they cannot pay their back taxes.
The good news, the Internal Revenue Service has made it much easier for the average taxpayers to enter into IRS payment plans.
So stop the worry and the anxiety and pick up the phone and take care of your problem today once and for all.
Different criteria levels for IRS Payment Plans
It is important to know that the IRS has different criteria levels depending on the amount you owe on the type of tax you owe.
So before you start it is important to know the different procedures IRS has regarding type of tax and amount owed.
If you owe large amounts of money to the Internal Revenue Service it is always in your best interest to consult professional tax firm because IRS will want detailed financial information not only about the business or corporation but the individual taxpayers well.
As a former IRS agent teaching instructor with the Internal Revenue Service large dollar cases belong in the hands of a professional tax firm to get your very best results.
It is very possible to get in IRS payment plan within 24 hours. When you call us we can explain this process and system to you.
IRS Payment Plans
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.
Payment Plans for In-Business Trust Fund Express Installment Agreements
Small businesses who currently have employees can qualify for an In-Business Trust Fund Express Installment Agreement (IBTF-Express IA).
These installment agreements generally do not require a financial statement or financial verification as part of the application process.
The criteria to qualify for an IBTF-Express IA are:
1. You owe $25,000 or less at the time the agreement is established.
2. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
Conditions of the Payment Plan
The debt must be full paid within 24-months or prior to the Collection Statute Expiration Date (CSED), whichever is earlier.
You must enroll in a Direct Debit installment agreement (DDIA) if the amount you owe is between $10,000 and $25,000.
You must be compliant with all filing and payment requirements.
Streamlined Installment Agreements
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
Under the Fresh Start initiative, the maximum dollar criteria for streamlined installment agreements has been raised from $25,000 to $50,000 and the maximum term has been raised from 60 months to 72 months.
These installment agreements generally do not require a financial statement, but a limited amount of financial information may be required in the application process.
The Streamlined Installment Agreement criteria is divided into two categories, balance due of $25,000 or less, and balance due $25,001 to $50,000.
To qualify for IRS Payment Plans – Streamlined installment agreements
The criteria to qualify for streamlined installment agreements with a balance due of $25,00 or less are:
You owe $25,000 or less, at the time the agreement is established.
If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
You must be compliant with all filing and payment requirements.
Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
Defunct businesses, including any type of entity and any type tax (Form 940, 941, 943, etc.).
Operating businesses are limited to income tax liabilities only (Form 1120).
The criteria to qualify for streamlined installment agreements with a balance due of $25,001 to $50,000 are:
1. You owe $25,001 to $50,000, at the time the agreement is established.
2. If you owe more than $50,000, you may pay down the liability before entering into the agreement in order to qualify.
3. The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
4. You must be compliant with all filing and payment requirements.
5. Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
6. Businesses are limited to defunct sole proprietors who owe any type of tax (Form 940, 941, 943, etc.).
7. You must enroll in a Direct Debit Installment Agreement.
8. A limited amount of financial information may be required during the application process.
Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A (PDF) or Form 433-F (PDF).
Should you have any questions contact us today for free initial tax consultation. We’ve been practicing right here in South Florida since 1982.
IRS Payment Plans, finding out your options – Miami, Ft.Lauderdale, Boca Raton, Palm Beaches
by Fresh Start Tax | Aug 20, 2013 | Tax Help
Making payment plans with the Internal Revenue Service is a lot easier than taxpayers think. To find out more you can contact us today or read the following information.
It is important to know that the IRS has different criteria levels depending on the amount you owe on the type of tax you owe.
If you owe large amounts of money to the Internal Revenue Service it is always in your best interest to consult professional tax firm because IRS will want detailed financial information not only about the business or corporation but the individual taxpayers well.
As a former IRS agent teaching instructor with the Internal Revenue Service large dollar cases belong in the hands of a professional tax firm to get your very best results.
Monthly Payments through installment plans
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.
Payment Plans for In-Business Trust Fund Express Installment Agreements
Small businesses who currently have employees can qualify for an In-Business Trust Fund Express Installment Agreement (IBTF-Express IA).
These installment agreements generally do not require a financial statement or financial verification as part of the application process.
The criteria to qualify for an IBTF-Express IA are:
You owe $25,000 or less at the time the agreement is established.
If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
Conditions of the Payment Plan
- The debt must be full paid within 24-months or prior to the Collection Statute Expiration Date (CSED), whichever is earlier.
- You must enroll in a Direct Debit installment agreement (DDIA) if the amount you owe is between $10,000 and $25,000.
- You must be compliant with all filing and payment requirements.
Streamlined Installment Agreements
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
Under the Fresh Start initiative, the maximum dollar criteria for streamlined installment agreements has been raised from $25,000 to $50,000 and the maximum term has been raised from 60 months to 72 months.
These installment agreements generally do not require a financial statement, but a limited amount of financial information may be required in the application process.
The Streamlined Installment Agreement criteria is divided into two categories, balance due of $25,000 or less, and balance due $25,001 to $50,000.
To qualify for streamlined installment agreements
The criteria to qualify for streamlined installment agreements with a balance due of $25,00 or less are:
- You owe $25,000 or less, at the time the agreement is established. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
- The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
- You must be compliant with all filing and payment requirements.
- Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
- Defunct businesses, including any type of entity and any type tax (Form 940, 941, 943, etc.).
- Operating businesses are limited to income tax liabilities only (Form 1120).
The criteria to qualify for streamlined installment agreements with a balance due of $25,001 to $50,000 are:
You owe $25,001 to $50,000, at the time the agreement is established.
If you owe more than $50,000, you may pay down the liability before entering into the agreement in order to qualify.
The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
You must be compliant with all filing and payment requirements.
Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
Businesses are limited to defunct sole proprietors who owe any type of tax (Form 940, 941, 943, etc.).
You must enroll in a Direct Debit Installment Agreement.
A limited amount of financial information may be required during the application process.
Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A (PDF) or Form 433-F (PDF)).
IRS Payment Plans made EASY – Find out your Options
by Fresh Start Tax | Aug 19, 2013 | Tax Help
What are the chances or odds that the Internal Revenue Service will audit your income-tax return?
For inquiring minds that want to know what your chances for an IRS audit you can read below and find out what your chances are of an IRS tax audit.
Please note that these figures change from year to year but by very miniscule amounts.
Average yearly statistic
IRS audits 1.1% of all personal income tax returns. That is it!
What are your odds/chances of a IRS Tax Audit by Income
No adjusted gross income 3.43%
$1- $25,000 1.22
$25,000-$50,000 .73%
$50,000-$75,000 .83%
$75,000-$100,000 .82%
$100,000-$200,000 1.1%
$200,000-$500,000 2.67%
$500,000-$1,000,000 5.32%
1,000,000-$5,000,000 5.38%
$5,000,000-$10,000,000 20.95%
over $10,000,000
Total IRS Collections for the year
The IRS collected $2.5 trillion in total tax dollars in 2012, broken down as follows:
- From individuals: $2.1 trillion.
- From businesses: $285 billion.
- From other sources: $115 billion.
It is important to remember that IRS audits tax returns keeping in mind their budget for the current year and their available personnel to actually audit a tax return.
If you have any questions regarding IRS tax audits call us today and you’ll speak to experienced IRS tax professionals to answer all your questions.
Why you may have been selected for a IRS Tax Audit
The Internal Revenue Service loves large corporations, partnerships and self-employed taxpayers.
Also, IRS officials are keenly interested in taxpayers who own their own businesses, file what is known as “Schedule D,” and deal in large amounts of cash.
Another reason, a big reason, the DIF score.
To help in the selection process, the IRS assigns a score to each return based on a secret formula designed to pick those returns where “the potential is high that an examination of your return will result in a change to your income tax liability.” Its computer program is known as the Discriminant Inventory Function system, or DIF.
Document matching
Then there is “document matching.” The IRS matches what taxpayers have reported on their returns against what was reported separately to the government by employers, investment firms and other sources. If there is a mismatch, be prepared to explain the difference. If you do get audited, don’t panic. Over 1.4 million tax returns are audited by correspondence mail.
Tips from informants or ex- spouses
Some people are selected because of tips the IRS has received from would-be informants or an ex spouse so be careful who you make mad.
Random Sample
Or perhaps you were unlucky enough to have your return selected at random. From time to time IRS uses random sampling to keep a heartbeat on all tax returns filed to find new areas were taxpayers may be cheating. As a general rule IRS random samples 5000 tax returns across the United States each and every year.
If you do get audited, don’t panic. Over 1.4 million tax returns are audited by correspondence mail.
Cash businesses
IRS is keenly aware of all industries such as laundromats, restaurants, bars and hair salons that deal in cash. IRS has specifically targeted program to hit industries of widespread abuse. You can make sure IRS will audit their fair share of cash businesses.
You may be audited because of another tax on it that’s going on
As a former IRS agent I can tell you that many audits take place because during an investigation of the business company or individual tax return and agent got suspicious.
They have the latitude and flexibility to pick up other tax returns as a result of their suspicion. Usually when this happens, this is very low hanging fruit and results in revenue back to the IRS.
Save your tax records
While you don’t want to turn into a hoarder, err on the side of saving tax-related records just in case your return gets picked. Should you have won the IRS audit lottery you should never go into IRS unrepresented for an IRS audit.
As a former IRS agent seeking good professional tax will in the long run save you aggravation, grief, stress and keep money in your pocket in the long run.
If you have received an IRS letter or notice that you are going to undergo an IRS tax audit is in your best interest to call former IRS agents and managers who know all of the protocols, techniques and tax defenses to best defend your tax return that is undergoing an IRS tax audit.
Chances/Odds of a IRS Tax Audit, Former IRS Agents Disclose
Chances/Odds of a IRS Tax Audit, Former IRS Agents will tell you
by Fresh Start Tax | Aug 19, 2013 | Sales Tax
This is not an all inclusive blog to let you know the hundreds of reasons that you could have been selected for a sales tax audit for the state of Florida.
The fact is, many reasons exist but there are some very general reasons on why the state of Florida, Department of revenue selects taxpayers, businesses or corporations for a Florida Sales and Use Tax Audit.
HOW BUSINESSES ARE SELECTED FOR AUDIT BY THE STATE OF FLORIDA FOR SALES TAX AUDITS
Several factors by the state of Florida have to be considered:
• The Department’s present Targeted Industries
• Prior audit history
• Industry involved
• Amount of total sales being reported
• Amount of exempt sales being claimed
• Ratio of exempt sales to total sales
• Location of the business
• Information from customers or employees.
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.
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.
FLORIDA SALES TAX AUDIT – Why you were Selected for a Tax Audit
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by Fresh Start Tax | Aug 19, 2013 | Florida Sales Tax
Former Florida Sales Tax Auditor, Consultation, Representation
If you need to hire or consult a Former Florida Sales Tax Audit contact Frank A. Lamanta
Former State of Florida Sales Tax Auditor with Fresh Start Tax LLC. 1-866-700-1040.
Frank has over 16 years as auditor with the State of Florida, Department of Revenue.
History
Frank earned a Bachelor of Science in Accounting from the Franciscan University of Steubenville in 1973 with a major in Accounting and a minor in Business Administration and Economics.
Former Sales and Use Tax Auditor for the Florida Department of Revenue while employed with the Florida DOR achieved the following awards:
- Davis Productivity Award of Distinction,
- Florida DOR Distinguished Service Award,
- Florida DOR Certificate of Excellence,
- Florida DOR Certificate of Appreciation,
- Florida DOR Special Recognition and the Florida DOR Super Star Award.
Franks accounting career began with the State of Florida, Division of Treasury in 1985 as an Accountant Supervisor, Florida State University in 1987 as an Accounting Supervisor, Florida Attorney General in 1990 as an Assistant Finance & Accounting Director.
Frank then began his sales tax career in 1994 with the Florida Department of Revenue Coral Springs Florida Service Center.
Frank also worked at the Fort Myers Florida and Orlando Florida Service Centers. Frank continued his sales tax career with the Florida out-of-state office, the Atlanta Service Center in 2001.
From 1994 to 2001 Frank worked in the Florida Service centers of Coral Springs, Fort Myers and Orlando Frank conducted numerous audits of large multi-state corporations as well as small and medium size corporations, partnerships and sole proprietorships while working as a Florida in-state auditor.
From 2001 until 2010 Frank worked in the Florida out-of-state office of Atlanta, Georgia. Frank conducted numerous audits of large multi-state corporations as well as small and medium size corporations, partnerships and sole proprietorships that maintained their books and records in Georgia, Tennessee, Mississippi, Alabama, North Carolina and South Carolina.
Frank proudly served in the United States Army from 1967 through 1969 as a Specialist 5 Processing Coordinator in The Pentagon, Washington, DC.
Contact Frank today at 1-866-700-1040. You can receive a free tax consultation and free tax assessment on any Florida sales tax issue you’re facing.
Besides having Frank on staff we are comprised of tax attorneys CPAs and former IRS agents.
Former Florida Sales Tax Auditor, Consultation, Representation
