by Fresh Start Tax | May 8, 2013 | Tax Help
Fix IRS Tax Bill Notice, IRS Tax Negotiation, IRS Tax Settlements – Former IRS Tax Experts 1-866-700-1040
If you have received an IRS tax bill notice and need to fix the IRS situation contact us today to negotiate your IRS tax bill or problem with the Internal Revenue Service.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, instructors and managers who have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
We have worked thousands of cases since 1982 and our experts and fixing an IRS tax bill notice or settling or negotiating your case with the Internal Revenue Service.
While working with the Internal Revenue Service we actually taught tax law and tax policy to new IRS agents. We are also IRS tax settlement experts in resolving your tax debt through the IRS offer in compromise. On staff is a former IRS settlement agent who taught this program to eligible IRS employees.
What the Internal Revenue Service will need to fix an IRS tax bill notice.
Before the Internal Revenue Service takes any taxpayer off their enforcement computer system IRS will require a full analysis of a current financial statement.
That financial statement will happen on a form 433-F.
It is the IRS version of the government financial statement. IRS will need to receive a fully documented 433-F along with all documentation to support it for its accuracy. Along with the financial statement IRS will need copies of all receipts of expenses, pay stubs, and 3 to 6 months worth of bank statements before they will attempt to fix the IRS tax debt and work out an IRS tax negotiation.
Different types of IRS determinations.
After IRS reviews your current financial statement, taxpayers will find themselves eligible for one of three positions that are used by the Internal Revenue Service to dispose of cases. After the review of the financial statement the taxpayer will find out they are generally eligible to be placed in a non-collectible status or be put into our current economic tax hardship. Second, the IRS may also let you know that you must make a installment agreement and start making monthly payments to the IRS. Third that you may be eligible for an IRS tax settlement.
No matter what decision the agent on the phone or with the agent and the local office there is an appeal process to rectify the problem.
Contact us today for a free initial consultation and hear the different options on how to fix your IRS tax bill notice and permanently and immediately get rid of your IRS problem through an IRS negotiation.
The new IRS fresh start program may be able to help you
The IRS Fresh Start program makes it easier for taxpayers to pay back taxes and avoid tax liens. Even small business taxpayers may benefit from Fresh Start.
Here are three important features of the Fresh Start program:
1.Federal Tax Liens.
The Fresh Start program increased the amount that taxpayers can owe before the IRS generally will file a Notice of Federal Tax Lien. That amount is now $10,000.
However, in some cases, the IRS may still file a lien notice on amounts less than $10,000.
When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien.
Taxpayers must request this in writing using Form 12277, Application for Withdrawal.
Some taxpayers may qualify to have their lien notice withdrawn if they are paying their tax debt through a Direct Debit installment agreement.
Taxpayers also need to request this in writing by using Form 12277.
If a taxpayer defaults on the Direct Debit Installment Agreement, the IRS may file a new Notice of Federal Tax Lien and resume collection actions.
2. Installment Agreements or payment agreements.
The Fresh Start program expanded access to streamlined installment agreements.
Now, individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years). While the IRS generally will not need a financial statement, they may need some financial information from the taxpayer.
Taxpayers in need of installment agreements for tax debts more than $50,000 or longer than six years still need to provide the IRS with a financial statement. In these cases, the IRS may ask for one of two forms: either Collection Information Statement, Form 433-A or Form 433-F.
3. Offers in Compromise.
An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. Fresh Start expanded and streamlined the OIC program. The IRS now has more flexibility when analyzing a taxpayer’s ability to pay.
This makes the offer program available to a larger group of taxpayers.
Generally, the IRS will accept an offer if it represents the most the agency can expect to collect within a reasonable period of time. The IRS will not accept an offer if it believes that the taxpayer can pay the amount owed in full as a lump sum or through a payment agreement.
The IRS looks at several factors, including the taxpayer’s income and assets, to make a decision regarding the taxpayer’s ability to pay. Use the Offer in Compromise Pre-Qualifier tool that you can find on our website.
Contact us today for free initial consultation and we can go over all your tax options and show you a way on how to fix your IRS tax bill notice through IRS negotiations. Should you need or qualify for IRS tax settlement we can review the program and find out if you are eligible candidate.
Give your money to no firm until you talk to the tax professionals at fresh start tax we are A+ rated by the Better Business Bureau.
by Fresh Start Tax | May 8, 2013 | Back Taxes
Owe Back Taxes – Cannot Afford to Pay – Hardship, Tax Settlements – Tax Relief Experts 1-866-700-1040
The key to disposing of your case rests in the hands of the 433F, the IRS financial statement.
If you owe back taxes to the Internal Revenue Service and you cannot pay your back tax debt and you need to apply for an IRS tax hardship or you want to consider a tax settlement contact us today because we are true certified tax relief experts.
We are professional tax firm comprised of tax attorneys, certified public accountants, and former IRS agents and managers.
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 offices of the Internal Revenue Service.
As former IRS agents we worked the IRS tax hardship program and the offer in compromise program which is also called the tax settlement program.
Next Step – Cannot pay or Tax Settlements
If you owe back taxes to the Internal Revenue Service and you cannot afford to pay or want apply for an IRS tax hardship or tax settlement, IRS will require a current financial statement form 433F. You can find this form on our website.
The Internal Revenue Service financial statement will have to be completed in its entirety. It is a simple two-page form. The IRS will require all the documentation and substantiation to prove the correctness and accuracy of the financial statement along with all bills and receipts. IRS will want copies of your last 3 to 6 months bank statements and your last pay stub.
IRS will make a Decision which status – Cannot afford to pay, Installment Agreement or Tax Settlement
IRS will then render a decision on which of three categories you may apply for.
As a general rule, the Internal Revenue Service or either put you into an economic tax hardship which is also called a currently not collectible file, they will advise you that you can make a current installment agreement or recommend you for an IRS tax settlement called in offer in compromise or tax settlement.
Advice to the taxpayer
Taxpayers should not give financial statements to the Internal Revenue Service unless they are fully reviewed by a certified tax professional.
As a former IRS agent I can tell you firsthand that taxpayers can do themselves more harm than good. What most taxpayers do not understand is there a is a national and regional standards test that IRS uses and that changes the results of all financial statements. Basically the Internal Revenue Service may not allow all your expenses leaving you a hefty installment payment.
Many cases that we get at fresh start tax finds that taxpayers have called the IRS on their own and IRS acted unreasonably in a rational and making their decision.
Contact us for free tax evaluation to explain the national and regional standards program.
IRS Tax Hardships Code Sections
IRS does not publicize this a lot however within the code there is a section that deals with tax hardships – 5.16.1.2.9 (05-22-2012)
Hardship
IRS follows the procedures in IRM 5.15.1, Financial Analysis Handbook, to determine the correct resolution of the case based on the taxpayer’s assets and equity, income and expenses:
A hardship exists if a taxpayer is unable to pay reasonable basic living expenses.
The basis for a hardship determination is from information about the taxpayer’s financial condition provided on Form 433–A, Collection Information Statement for Wage Earners and Self-Employed Individuals or Form 433–B, Collection Information Statement for Businesses.
Generally, these cases involve no income or assets, no equity in assets or insufficient income to make any payment without causing hardship.
Generally taxpayers accounts should not be reported as CNC if the taxpayer has income or equity in assets, and enforced collection of the income or assets would not cause hardship.
National and Regional Standards
The standard amounts set forth in the national and local guidelines are designed to account for basic living expenses. In some cases, based on a taxpayer’s individual facts and circumstances, it will be appropriate to deviate from the standard amount when failure to do so will cause the taxpayer economic hardship.
The taxpayer must provide reasonable substantiation of all expenses claimed that exceed the standard amount.
Please Note:
Substantiation can consist of credible verbal communication or written documentation received from the taxpayer.
Both types of substantiation should be thoroughly documented in the case history.
Example of Substantiation :
Taxpayer’s income dropped significantly from the prior year and taxpayer explains that he went though a divorce and is no longer claiming two incomes.
Verbal substantiation supporting the drop in income should be documented in the case history.
IRS will check:
a. Bank statements or canceled checks
b. Credit card vouchers
c. Rent/lease receipts and lease agreements
d. Payment coupons
e.Court orders
f. Contracts
g. Future expenses, e.g., the birth of a child or the necessary replacement of a car that will increase expenses
h. credit reports
i. IRS will probable Google your name as well to check for assets.
In summary just remember that IRS will thoroughly check and review your current financial statement to determine which of the categories you will be eligible for.
Contact us today for free financial consultation and speak directly to former IRS agents and managers who are experts in owing back taxes and those who cannot afford to pay the IRS because of a current tax hardship.
by Fresh Start Tax | May 7, 2013 | Tax Help
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Owe Back Taxes – Make Payments to IRS – Payment Plan Options 1-866-700-1040
Let former IRS agents, managers and tax instructors settle your tax debt and review all the options you have available to immediately and permanently resolve your case.
If you owe back taxes to the Internal Revenue Service and you would like to make payments to the Internal Revenue Service you have several options.
Contact us today for free initial consultation and we can find out what your best option are to completely resolve your IRS matter once and for all.
We can find an installment agreement that both you and the Internal Revenue Service can live with.
When you owe back taxes and wish to make payments to the Internal Revenue Service , the key ingredient to understand is how much you owe in back taxes and how long will it take before you can pay the liability out. Those two factors will determine the type of installment agreement that you will have and your payment plan options.
Dollar Amounts owed on Back Taxes
If you all under $50,000 in tax, we can set up a streamlined agreement for you with the Internal Revenue Service. You can make 72 equal payments to resolve your tax debt completely.
If you owe over $50,000 the internal revenue service will want a completed 433F financial statement along with all documentation to support the financial statement along with pay stubs and bank statements. Your financial statement will be based on ability to pay and the IRS will look to your current income and necessary living expenses.
You should contact us today directly if you owe over $50,000 because those types of IRS installment payments require more skilled planning.
Making monthly payments when you owe back taxes
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.
Before you apply:
a. File all required tax returns;
b. Consider other sources (loan or credit card) to pay your tax debt in full to save money;
c. determine the largest monthly payment you can make ($25 minimum); and
d. Know that your future refunds will be applied to your tax debt until it is paid in full.
Fees for setting up an installment agreement:
1. $52 for a direct debit agreement;
2. $105 for a standard agreement or payroll deduction agreement; or
3. $43 if your income is below a certain level.
Understand your agreement, avoid default
To keep your account in good standing:
a. Pay at least your minimum monthly payment when it’s due (direct debit or payroll deductions make this easy);
b. Include your name, address, SSN, daytime phone number,
c. File all required tax returns on time;
d. Pay all taxes you owe in full and on time (contact us to change your existing agreement if you cannot);
e. Continue to make all scheduled payments even if we apply your refund to your account balance; and
f.ensure your statement is sent to the correct address, contact us if you move or complete and mail Form 8822, Change of Address (PDF).
Should you default your agreement
There may be a reinstatement fee if your agreement goes into default.
Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, contact the IRS immediately.
Owe Back Taxes – Make Payments to IRS – Payment Plan Options
by Fresh Start Tax | May 7, 2013 | Tax Help
Forgot to File Back Tax Returns – How to get back in the System Safely 1-866-700-1040
As a former IRS agent I will explain to you how to get back in the system safely, without worry and more importantly without pain or change in your life.
You can file your back tax returns and if you owe back taxes, we can work out a tax settlement.
Our firm has over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service.
Not only were we former IRS agents, managers and supervisors we also taught tax law at the Internal Revenue Service.
Millions upon millions of tax returns do not get filed every year by taxpayers for various reasons. So you are not alone.
As a general rule, once a taxpayer does not file for one year it starts a snowball effect.
Fear usually sets in and taxpayers just stop filing their tax returns. At some point taxpayers know they will be contacted by the Internal Revenue Service but they continue to play the IRS lottery in hopes their numbers will be not called.
However sooner or later IRS will catch up to you or your Social Security number.
The best advice I can give taxpayers is to get their head out of the sand and to take an assertive position and rectify the problem well before the IRS contacts you.
If you take the assertive position and contact a tax professional do the proper planning your case can go very smoothly. If you wait to the last minute to go ahead to rectify this, the Internal Revenue Service will have the upper hand. So remember planning is key.
IRS can file for you, this is bad news
Many taxpayers do not know that IRS can actually file their tax return for them under 6020 of the Internal Revenue Code.
If that happens, the taxpayer will wind up with a huge tax bill because IRS will not allow anything but the standard exemption. It is critical that taxpayers open all IRS mail and find out what stage there case is in.
IRS can file your tax return under 6020 IRC
a) Preparation of return by Secretary
If any person shall fail to make a return required by this title or by regulations prescribed thereunder, but shall consent to disclose all information necessary for the preparation thereof, then, and in that case, the Secretary may prepare such return, which, being signed by such person, may be received by the Secretary as the return of such person.
(b) Execution of return by Secretary
(1) Authority of Secretary to execute return
If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.
(2) Status of returns
Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes.
IRS can Levy or Garnish
After the Internal Revenue Service makes an assessment, IRS bills or notices go out. They will be followed up by an IRS bank tax levy or IRS garnishment levy and then usually followed up with the filing of the federal tax lien. This usually happens over a 3 to 4 months after you file your tax returns.
How to get back in the system safely
If you have forgot to file your back tax returns and you want to get back in the system safely the process is very simple.
File all your back returns all at one time.
IRS keeps a copy of all your income sources for the last seven years.
These are stored on the CADE2 computer. IRS has a copy of all W-2’s , 1099s or any third party reports of income that were filed by these third parties. A taxpayer can simply request their income report from the Internal Revenue Service and use that as a base to start the preparation of filing their back tax returns that they forgot to file.
Believe it or not many taxpayers actually have refunds that the IRS will issue if they file their back tax returns. It important to know there is a three-year statute of limitations on receiving money back from the Internal Revenue Service.
If you have tax refunds coming on your back tax returns ,you have to do nothing but wait for your refund checks. If you are going to owe back taxes the IRS will send out a series of three or four notices, each one stepping up the tone in the attitude of the letter.
Once you receive the final notice of intent to levy or seizure you should immediately contact the IRS but before that you should have a definitive plan of action that you are ready to roll into.
If you will owe money to the IRS on Back Tax Returns
If you forgot the file back tax returns and will owe money to the IRS, the IRS has three or four different programs that can help you get back in the system and not be financially strapped.
IRS will ask for a financial statement, a 433-F to help them make that determination. You can find that form on our website.
A taxpayer must submit this financial statement along with all documentation including bank statements and pay stubs to an IRS agent either at the service center or local office. Based on your financial statement the Internal Revenue Service will determine whether you are currently noncollectable and put you went to an economic tax hardship, or ask for a monthly installment payment or suggested the filing of a offer in compromise.
A summary
So if you want to get back in the system safely and you forgot the file back tax returns simply contact the Internal Revenue Service and asked them for your income transcript to prepare your back returns. They will give you a date when all tax returns are due and if you owe taxes just to give IRS your personal financial statement and work out a solution to resolve your matter.
As a former IRS agent I will tell you is always the best to use a professional tax firm to help you negotiate any IRS issue or problem you are having with. Even though many taxpayers attempt to do this on their own they will never get the same results as a professional tax firm.
Call us today for free initial consultation.
Forgot to File Back Tax Returns – How to get back in the System Safely
Contact us today and we can find an affordable tax solution to help you rectify your problem to resolve your back tax return issues
by Fresh Start Tax | May 6, 2013 | Tax Help
Back Taxes – How to get your Best Settlement Deal with the IRS 1-866-700-1040
If you want to know how to get your best settlement deal with the Internal Revenue Service you want to talk to former IRS agents who used to work the offer in compromise program with the Internal Revenue Service.
Being former IRS Agents we know the exact formula and settlement procedures that will be used by the Internal Revenue Service. We guarantee that we can get your best settlement deal because we taught the program at the IRS.
58,000 taxpayers filed for an IRS tax debt settlement last year and of those some 18,000 offers in compromise were accepted by the Internal Revenue Service.
The reason the acceptance rate is up is because IRS is loosening up the standards for the offer in compromise program.
The average settlement time is between six and nine months and the average settlement dollar is $.14 on the dollar.
However do not let the $.14 on a dollar fool you.
This is no more than an average. Each case is unique and completely depends on your individual situation.
New IRS Settlement Program
The IRS has expanded its “Fresh Start” initiative by offering more flexible terms to its Offer-in-Compromise Program.
These newest rules enable some financially distressed taxpayers to clear up their tax problems even quicker.
An offer-in-compromise (OIC) is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
An OIC is generally not accepted if the IRS believes 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 determine the reasonable collection potential.
This expansion of the “Fresh Start” initiative focuses on the financial analysis used to determine which taxpayers qualify for an Settlement Deal.
Here are some of the Settlement changes:
Revising the calculation for a taxpayer’s future income The IRS will now look at only one year (instead of four years) of future income for offers paid in five or fewer months; and two years (instead of five years) of future income for offers paid in six to 24 months.
All OICs must be paid in full within 24 months of the date the offer is accepted.
Allowing taxpayers to repay their student loans Minimum payments on student loans guaranteed by the federal government will be allowed for the taxpayer’s post-high school education. Proof of payment must be provided.
Allowing taxpayers to pay state and local delinquent taxes.
When a taxpayer owes delinquent federal and state or local taxes, and does not have the ability to fully pay the liabilities, monthly payments to state taxing authorities may be allowed in certain circumstances.
Expanding the Allowable Living Expense. Allowance Standard allowances incorporate average expenses for basic necessities for citizens in similar geographic areas. These standards are used when evaluating installment agreement and offer-in-compromise requests. The National Standard miscellaneous allowance has been expanded. Taxpayers can use the allowance to cover expenses such as credit card payments and bank fees and charges.
The New Streamline Settlement Program
The IRS is also expanding 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 to Get the Best Settlement Deal with the IRS
The Internal Revenue Service uses very specific standards to settle IRS tax debt.
If you are unfamiliar with the standards used by the Internal Revenue Service you will have no way of knowing how low the Internal Revenue Service will go. With that said there is a formula that is used.
The Settlement deal formula is comprised of two factors, assets and income.
IRS will want to know what your total liquidation value of the total sum of all your assets including pensions, equities in homes and all personal assets.
IRS will conduct an income to expense ratio to find out if you have any disposable income left over after the national and regional standards are applied.
If you are not familiar with the IRS national and regional standard tests you need to be. This is a very critical element of the settling process because should the IRS finds that you have disposable income left over after the national and regional standard tests are applied the IRS will multiply that monthly overage times 12. Just for the record the national and regional standards of the same standards that are set up by the United States trustee for bankruptcy and other government agencies in regard to reasonable standards and financial cases.
IRS will then add up your total equity that you have in all your assets plus the disposable monthly income left over times 12 and that will comprise your offer compromise settlement number to the Internal Revenue Service.
IRS will generally accept no less than that figure unless some unusual hardships exist.
The Pre-Qualifier Tool for Settlements
IRS has made a much easier for taxpayers to settle with the Internal Revenue Service by now using a pre-qualifier tool that you can find our website. It is best for every taxpayer to walk to the pre-qualifier tool to find out for themselves if they can if they are a legitimate settlement candidate.
There are so many little factors that can reduce your settlement offer to settle for less with the Internal Revenue Service. There are many monthly expenses it can be included in your offer in compromise at the Internal Revenue Service will not tell you about.
Unless you’re a tax expert in the field you will not know the smaller things that can help reduce your offer to settle for less. Yes, we know the loopholes.
After working thousands and thousands of cases and being tax experts in settling with the Internal Revenue Service we will conduct a free tax analysis to let you know what the very best deal that you will get to settle for less.
Unless you’ve either work for the Internal Revenue Service or filed hundreds and hundreds of offers in compromise it would be absolutely impossible to let any taxpayer no just how low the IRS will go.
Being former IRS agents we know all the standards, all the protocols, all the settlement boundaries, and all the applicable standards that will be of plight against every single case.
The National Standards (you can find these on our website)
Collection Financial Standards are used to help determine a taxpayer’s ability to pay a delinquent tax liability.
Allowable living expenses include those expenses that meet the necessary expense test. The necessary expense test is defined as expenses that are necessary to provide for a taxpayer’s (and his or her family’s) health and welfare and/or production of income.
National Standards for food, clothing and other items apply nationwide.
Taxpayers are allowed the total National Standards amount for their family size, without questioning the amount actually spent.
National Standards have also been established for minimum allowances for out-of-pocket health care expenses.
Taxpayers and their dependents are allowed the standard amount on a per person basis, without questioning the amount actually spent.
Maximum allowances for housing and utilities and transportation, known as the Local Standards, vary by location. In most cases, the taxpayer is allowed the amount actually spent, or the local standard, whichever is less.
Generally, the total number of persons allowed for necessary living expenses should be the same as those allowed as exemptions on the taxpayer’s most recent year income tax return.
If the IRS determines that the facts and circumstances of a taxpayer’s situation indicate that using the standards is inadequate to provide for basic living expenses, we may allow for actual expenses.
However, taxpayers must provide documentation that supports a determination that using national and local expense standards leaves them an inadequate means of providing for basic living expenses.
Contact us today if you have any back tax issues with the Internal Revenue Service. Due to our years of experience at the Internal Revenue Service we can assure them guarantee you that we can get your best settlement deal from the IRS.
All tax consultations are free, we are A+ rated by the Better Business Bureau have been in practice since 1982.
Back Taxes IRS – How to get your Best Settlement Deal with the IRS
