by Fresh Start Tax | Jul 9, 2013 | Tax Help
IRS Auditing Your TEFRA Partnership?
The audit procedures for a TEFRA partnership are one of the most complex in the Internal Revenue Code.
The partner known as the Tax Matters Partner acts as the liaison between the IRS and the partners.
The Tax Matters Partner (TMP) is responsible for keeping partners informed of tax administrative and judicial proceedings relating to the partnership.
The TMP has the authority to extend the statute of limitations for assessment with respect to partnership items on the behalf of all partners.
He can bind partners holding less than 1% interest in the partnership to a settlement with the IRS and determine in forum to litigate a partnership controversy.
Due to the complexity of the TEFRA audit procedures, the IRS in many instances fails to follow all of the required procedures for the examination of the partnership.
Further, there may be instances that the TMP and the remaining partners may have a conflict of interest as to specific matters which you may not be aware.
The audit of a TEFRA partnership can be appealed to the Appeals Division and if needed can be litigated in the Tax Court or Court of Federal Claims.
All of these appeals are complex and full of unexpected results to the unwary partner.
A client may have been assessed a deficiency based on an audit of a TEFRA partnership and not know it, until he receive a bill from the IRS for the unpaid balance. TEFRA deficiencies are assessed through computational adjustments, which means you have no appeal rights.
There are instances where the IRS has made an assessment of a deficiency attributable to TEFRA partnership adjustment that was not valid and the partner simply paid the deficiency amount without questioning it.
The appeal rights are through the TMP, if he did not exercise them; those appeal rights are expired. So its up to your client to be in contact with the TMP when the partnership is being audited and keep current with the proceedings.
If a taxpayers is the TMP of the partnership, he needs to be represented through the Examination process and the Appeals process so that the TMP makes the correct decision for the partnership.
He should decide whether he wants to bind the partnership to a settlement or let all of the remaining partners make their own decision.
If the taxpayer is a partner in the partnership, but not the TMP; he needs to make sure that the TMP is informing him of the progress of the examination.
He needs to know that the TMP has your client’s interest and whether to appeal the outcome of the partnership audit.
If your client was assessed a deficiency attributable to a TEFRA partnership audit, he needs first to know whether the assessment was valid. For the assessment to be valid, the correct waivers needed to be signed and properly executed by the IRS.
If you did not agree to the assessment, the taxpayer should ascertain that the IRS correctly assessed the tax. If the tax deficiency was properly assessed, you needs to ascertain that the correct deficiency was assessed.
If the assessment is invalid, the IRS must abate the assessment. If the amount assessed was valid, but was incorrect in the amount, the IRS, must abate the tax to reflect the correct amount.
If you are a taxpayer who is a partner in a TEFRA partnership and it is being currently examined, we can guide you through the TEFRA procedure to the best possible conclusion.
If you have been assessed a deficiency attributable to a TEFRA partnership adjustment, we can determine whether the assessment was valid and whether the amount assessed was correct.
If the assessment was not valid, we will then request that the IRS abate the assessment in full. If the assessment was valid, but the amount assessed was overstated, we will then request that the IRS abate the assessment to reflect the correct amount.
Our staff includes individuals who have been Appeals Officers who have dealt with TEFRA partnership issues and who understand the complex TEFRA code sections and procedures. They are aware of the necessary documents that need to be obtained from the IRS to properly evaluate issues.
For the record if you are a tax practitioner we can help you and your client. Please feel free to contact us.
by Fresh Start Tax | Jul 8, 2013 | Christian IRS Tax Relief, Tax Help
If you are having issues with the Internal Revenue Service and are looking for various programs and solutions contact us today for a free initial tax consultation and speak directly to Christian tax professionals.
We are comprised of Christian tax attorneys, lawyers, certified public accountants, and former IRS agents, managers and tax instructors.
We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS.
We are Christian debt relief specialists that can review all available programs and go over all different tax solutions with you to help you immediately and permanently resolve your IRS problem. We are A+ rated by the Better Business Bureau.
We are true Christian tax debt relief specialists that can handle all IRS problems and can go over the complete settlement packages to relieve you of your IRS tax debt.
You can call us today for a free initial tax consultation and speak directly to a tax professional.
We have been in private practice since 1982 and we are A+ rated by the Better Business Bureau. We are licensed to practice in all 50 states.
You should be aware that many tax firms advertise on the Internet that they are Christian or faith-based however. as it says in Hebrews test all spirits.
Offers in Compromise
The IRS is has expanded a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate.
In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements.
An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.
The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
How do you discern Christian godly counsel?
Psalm 37:30
The godly offer good counsel, they know what is right from wrong.
Proverbs 18:2
Fools have no interest in understanding; they only want to offer their own opinions.
Proverbs 27:9
The heartfelt counsel of a friend is as sweet as perfume and incense.
Areas of Professional Tax Representation
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Full Service Accounting Tax Firm,
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- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
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Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction
by Fresh Start Tax | Jul 8, 2013 | Tax Levy and Wage Garnishments
If you have received an IRS wage garnishment it is very possible to stop the IRS action within 24 hours. As a Former IRS agent I can tell you just follow my instruction.
You must have to give the IRS a current financial statement, the IRS form 433-f, along with all documentation to support the statement and be ready to send to the Internal Revenue Service. Also make sure all your tax returns are filed and up-to-date.
Call the number on the wage garnishment, usually a 1-800 number and IRS will review your financial statement and make it determination of how to close and settle your case.
After the IRS reviews your current financial statement they will make a determination on which method will be used to settle your case and release the IRS wage garnishment.
The Internal Revenue has very specific guidelines on how they will release your wage garnishment and settle your case and I highly recommend to any taxpayer to hire a true tax professional to make this a seamless process.
If you intend to contact IRS yourself, I also recommend you contact the Internal Revenue Service by phone and have your current financial statement on form 433-F along with all documentation including bank statements and pay stubs ready to fax to the Internal Revenue Service agent on the other line.
You must have all the documentation, if you are missing any supporting documentation IRS cannot close your case or release your wage garnishment.
The IRS financial statement form 433F
The Internal Revenue Service uses the financial statement to determine how taxpayers who will back taxes can close their cases with the IRS.
After IRS reviews your financial statement they will look to income and expenses to make their determinations on how they will proceed.
IRS will compare your income and expenses with that against the national and regionalized standard tests for expenses.
Closing Methods for Cases
1. If your expenses exceed your income IRS can place your case and to currently non-collectible which is basically a current economic tax hardship.
2. If you have more income than allowed expenses IRS will insist on a monthly installment payment plan.
3. Upon review IRS may determine you are an offer in compromise candidate or a tax debt settlement candidate. Before you wanting before you run off to try to settle your case you should fill out the pre-qualifier tool on our website to make sure you are in fact a qualified and suitable candidate to settle your tax debt.
How soon will IRS take your paycheck?
Employers generally have at least one full pay period after receiving a Form 668-W, Notice of Levy on Wages, Salary and Other Income before they are required to send any funds from their employee’s wages.
This allows the taxpayer to go ahead and get your wage garnishment released and their case settle with the Internal Revenue Service.
Introduction – What is Wage Garnishment by the IRS ?
An individual’s wages, salary, and other income can be levied.
Your wages, salary, and other income include payment for personal services in a work relationship.
So a wage garnishment is a seizure of an asset that belongs to a taxpayer or an entity that owes back taxes.
Can a Employer Threatens to Fire Taxpayer Because of a Levy
Sometimes an employer threatens to fire an employee to avoid handling a levy. This might be a violation of 15 USC 1674.
If the employer fires the taxpayer because of this, the employer might be fined not more than $1000 or imprisoned for not more than one year, or both.
Refer the taxpayer to the Wage and Hour Division of the Department of Labor (DOL). DOL, not IRS, must decide if the employer violated the law. Do not let your employer bully you around like this. Contact an attorney if the threat is made.
Continuous Effect of Wage Garnishment Levy on Salary and Wages
Unlike other levies, a levy on a taxpayer’s wages and salary has a continuous effect.
It does not stop until the IRS releases the levy. You must react quickly.
A IRS Levy or Wage Garnishment attaches to future payments, until the levy is released. Wages and salary include fees, bonuses, commissions, and similar items. All other levies only attach to property and rights to property that exist when the levy is served.
Example:
If a bank account is levied, it only reaches money in the account when the levy is served.
It does not reach money deposited later.
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
A Form 668-A is issued to levy an author’s royalties.
The author has a fixed and determinable right to royalties for books that have already been published. The levy reaches royalties for sales of those books in the future. The levy does not reach royalties for books that are written and published later. A new levy must be served to take those royalties.
A Form 668-W is issued to levy a taxpayer’s retirement income. The taxpayer has a fixed right to the future payments; therefore, the levy remains in effect until it is released.
Also, see IRM 5.11.6.12, Levy on Non-Liable Spouse in a Community Property State for guidance when the wage levy on the non-liable spouse is not continuous.
IRS Wage Garnishment Levies
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
Special Note
If support is allowed, the same child can not be claimed as an exemption for figuring the exempt amount. See IRM 5.11.5.4 (2)a above.
If Then
The taxpayer has already shown proof of the required child support payment Write on the levy form, “Under section 6334 (a)(8) of the Internal Revenue Code, $ ____________________is exempt from this levy.”
The taxpayer shows proof of the child support after the levy is served Release enough of the levy so the support can be paid.
The taxpayer is not entitled to the support exemption unless the support is being paid.
Consider getting the taxpayer to have the child support payment withheld and sent directly to the person with custody.
Or, the taxpayer may make the child support payment through the Service, and the Service will forward the payment. When there is no open assignment, have the payments sent through Submission Processing. This may happen if the payments are being monitored in the campus.
Claiming the Exempt Amount on a Wage Garnishment
The Notice of Levy on Wages, Salary, and Other Income (Form 668-W) was developed for use when an individual may be entitled to the minimum exemption from levy in IRC 6334(a)(9) and includes a Statement of Exemptions and Filing Status. The employer gives the statement to the taxpayer to complete and return within three days.
If it is not received by then, the exempt amount is figured as if the taxpayer is married filing separate with one exemption. The taxpayer can give the statement to the employer later to change the exempt amount.
The employer needs to use this statement rather than the employee’s W–4, Employee’s Withholding Certificate. Taxpayers may claim different exemptions for withholding from those claimed on their return.
Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income – Forms 668-W(ACS), 668-W(c)(DO) and 668-W(ICS), is sent with the levy to help figure the exempt amount.
The taxpayer can give a new statement to the employer later to have the exempt amount recomputed.
The taxpayer’s filing status or personal exemptions may change.
There may be a change in exempt rates in a new year.
The statement is completed under penalty of perjury. Generally, accept the information on the statement, unless there is reason to question it.If exemptions are disallowed, notify the employer and the taxpayer in writing.
The taxpayer can provide evidence that the statement is right and request managerial review. Include a statement that the taxpayer may provide evidence to prove the statement is accurate and may request a managerial review of the dis allowance.
Employers with Centralized Payrolls
Some employers have a centralized payroll, so the payroll is not handled where most employees work.
Consider mailing the Statement of Exemptions and Filing Status directly to the taxpayer. This avoids the delay of the employer re-mailing it.
Send to the employer Part 1 of the levy form and Notice 484, Instructions to Employer with Centralized Payroll for Processing Statement of Exemptions and Filing Status.
Send to the taxpayer the other parts of the levy form and Notice 483, Instructions to Employee Paid through Central Payroll System for Submitting Statement of Exemptions and Filing Status.
IRS Wage Garnishments on Joint Liabilities
For joint liabilities, generally levy the income of the spouse with the larger income.
Levy both incomes only in flagrant cases of neglect or refusal to pay. Secure group manager approval to issue notices of levy on the income of both spouses’ living in the same household. If taxpayers are separated, consider collecting from both spouses’ income rather than collecting from one spouse’s income.
On Flagrant cases.
If And Then
The taxpayers are filing as married filing jointly Both taxpayers’ incomes are levied Only one of them can claim the standard deduction for figuring the exempt amount.
The taxpayers are filing with any other filing status Both taxpayers’ incomes are levied Both can claim the standard deduction for their filing status.
The taxpayers are remarried and filing as married filing jointly with the new spouses. Both taxpayers’ incomes are levied Both can claim the standard deduction for their filing status.
When both spouses’ incomes are levied, neither spouse can claim the other one as a personal exemption.
Taxpayers with More Than One Source of Income
IRS will consider income from all sources when a taxpayer has more than one income source.
Call us today and we can stop your IRS wage garnishment. We are the affordable professional tax firm.
Wage Garnishments Can be Stopped Immediately, Former IRS Agents
by Fresh Start Tax | Jul 8, 2013 | Tax Levy and Wage Garnishments
IRS sends out 3.8 million wage and bank levies every year. You are not alone.
It is very possible to get a wage or bank levy release within 24 hours so don’t let the IRS wage or bank levy ruin your day and by all means do not be bullied by the IRS.
It is critical you understand the process of the IRS wage and bank levy.
Being a former IRS agent and teaching instructor with Internal Revenue Service I know the exact protocols and systems of the IRS wage and bank levies because I used to teach them as a former IRS agent.
We can get you quick results of getting this IRS issue behind you.
IRS does not want to seize or levy.
Believe it or not the IRS does not want to send out a wage or bank levy.
As a part of the Internal Revenue Manual if the taxpayer does not contact IRS after sending out a series of notices, the Internal Revenue Service has no choice but to send out a wage or bank levy.
On the IRS computer system called the CADE2, IRS keeps it levy information.
IRS systematically goes into the file of every taxpayer and systematically sends to the last employer or last information they have on your bank and sends out the levy. Not a human hand touches these levies. It is critical that taxpayers respond to a IRS bill or notice especially the last L- 1058 letter.
If you do not respond or contact the IRS you can expect enforced collection actions from the Internal Revenue Service.
How to get an IRS wage or bank levy release
A taxpayer will have to contact the Internal Revenue Service in the ACS unit.
There will usually be a telephone number connected with the IRS wage or bank levy. When calling the Internal Revenue Service each taxpayer will be required to give a current financial statement to the Internal Revenue Service.
That financial statement will have to be accurate, correct and fully documented.
That financial statement will be on form 433-F. You can find that form on our website.
Beside the completion of the 433F, IRS will want copies of your last 3 to 6 months bank statements along with your pay stubs to verify all the information on the financial statement.
Once IRS’s reviewed your financial statement they will make a determination on how it best feels to close your case or settle your case off the enforcement computer.
Based on your financial statement, IRS will either put you into:
- an economic tax hardship which is called currently not collectible,
- IRS may determined that you should be making monthly or installment payments or
- the Internal Revenue Service may let you know that you can qualify for a tax debt settlement call the offer in compromise.
As soon as you get an IRS wage or bank levy immediately start preparing your financial statement to send or fax to the Internal Revenue Service.
Being former IRS agents and managers we know the exact system to get an immediate release of your wager bank levy. Contact us today and we can walk you through the process and settle your case all at the same time.
Do not be bullied by the Internal Revenue Service. As soon as you get an IRS wage or bank levy contact us today for fast, quick and affordable results.
How to get a IRS Wage & Bank Levy Release, Quick Results, Affordable Former IRS Agents
by Fresh Start Tax | Jul 8, 2013 | Tax Help, Tax Levy and Wage Garnishments
IRS sends out 3.8 million wage levy garnishments and bank garnishments each and every year to taxpayers at owe back taxes to the Internal Revenue Service.
The wage levy garnishment will not stop until you contact the Internal Revenue Service and give the IRS a current financial statement so they can make a determination on the collectibility of your case. To get the very best results you should use professional tax firm.
How long does a Wage Levy Garnishment Last.
The wage levy garnishment will last for as long as it takes the Internal Revenue Service to get the information it needs to close there case off their enforcement computer called CADE2. You can get wage Levy garnishment releases within 24 hours. Contact us today.
The only reason the Internal Revenue Service sent out a wage levy garnishment was simply because the taxpayer failed to call IRS on a series of bills and collection notices in which IRS requested taxpayer contact.
As a result, the IRS must get the attention of the taxpayer and it does so with enforced collection actions. IRS will either send out a bank levy or a wage levy garnishment.
The IRS wage levy garnishment will last until IRS secures a current financial statement along with all documentation and comes up with a plan of action to close the taxpayer case.
Important Note if you have received a Wage Garnishment:
Employers generally have at least one full pay period after receiving a Form 668-W, Notice of Levy on Wages, Salary and Other Income before they are required to send any funds from their employee’s wages. This is very good news to the taxpayer because you should be able to get a wage levy garnishment released within one week.
How does a wage levy garnishment work
Being a former IRS agent I can tell you that the IRS computer system is full of levy sources for the Internal Revenue Service.
Third parties submit information to IRS each year containing your W-2s, your 1099s, and various other income sources.
The IRS enforcement computer called the CADE2 simply searches its network of income sources and self generates a levy systemically.
IRS usually chooses your last employer and gets that from your last 1040 on file or from the employer through end of year mandatory reporting to the IRS.
All these wage levy garnishments are sent systematically and are never touched by human hands. Thousands and thousands of wage levy garnishments are sent out every day
How can I get my wage Levy garnishment release
To get a quick wage levy garnishment release simply contact the IRS and be prepared to give him a completed, correct and accurate 433-F financial statement which you can find on our website.
All documentation must be attached or sent to the Internal Revenue Service so they can make a determination on how they will close your case off their enforcement computer. Basically, IRS needs a plan of action.
In most cases taxpayers usually fall into three categories.
Based on their current financial statement taxpayers are either put into a non-collectible file due to current economic tax hardships,or taxpayers may be required to make installment or monthly payment agreements to the Internal Revenue Service, or taxpayers are eligible for an offer in compromise or for a tax debt settlement.
Please note, you maybe be eligible to settle your case with the IRS.
Contact us today and we cannot only get your wage levy garnishment released we can also settle your case with the Internal Revenue Service.
We are comprised of tax attorneys, CPAs, and former IRS agents managers and tax instructors.
We have over 60 years of direct work experience at the Internal Revenue Service and have released thousands of wage levy garnishments since 1982.
We are A+ rated by the Better Business Bureau
How a Wage Levy Garnishment Works/Lasts – Former IRS
