by Fresh Start Tax | May 6, 2013 | Tax Help
FBAR – We can answer all your Questions – Lawyers, Attorneys, Former IRS – FBAR Experts 1-866-700-1040
We are comprised of tax attorneys, tax lawyers, certified public accountants and former IRS agents and managers. We have over 206 years professional tax experience and experts in Fbar matters.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
The Last 3 years of FBAR
During the last three filing seasons the Internal Revenue Service collected a whopping $5 billion as a result of Fbar filing and the amending the federal income tax returns. As a result the government is putting increasing enforcement dollars in this area of operation to collect the jackpot of gold at the end of this Fbar rainbow.
The Internal Revenue Service expects a 6 to 1 ratio in ROI from this program. This program for the Internal Revenue Service is a win-win.
If you are a person who has concerns about Fbar or the filing of your tax returns contact us today for free initial tax consultation speak directly to a tax attorney, tax lawyer or certified public accountant who could help ease your mind so you can end any fear you may have.
Below are the common questions that are asked of Internal Revenue Service. They are provided for you by fresh start tax and if you have any questions regarding your particular situation contact us today and let us help resolve any issues or matters you may have.
What is an FBAR?
An FBAR is a Report of Foreign Bank and Financial Accounts. The form number is TD F 90-22.1 (PDF) You can find this form on her website.
Q. Who must file an FBAR?
A. Any United States person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.
Q. What is a foreign country?
A. A “foreign country” includes all geographical areas outside the United States, the commonwealth of Puerto Rico, the commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States (including Guam, American Samoa, and the United States Virgin Islands).
Q. What is a United States person?
A. “United States person” includes a citizen or resident of the United States, a domestic partnership, a domestic corporation, and a domestic estate or trust.
Q. Is a single-member LLC, which is a disregarded entity for U.S. tax purposes, a United States person for FBAR purposes?
A. Yes. The tax rules concerning disregarded entities do not apply with respect to the FBAR reporting requirement. FBARs are required under Title 31, not under any provisions of the Internal Revenue Code.
Q. What constitutes signature or other authority over an account?
A. A person has signature authority over an account if such person can control the disposition of money or other property in it by delivery of a document containing his or her signature (or his or her signature and that of one or more other persons) to the bank or other person with whom the account is maintained.
Other authority exists in a person who can exercise power that is comparable to signature authority over an account by direct communication to the bank or other person with whom the account is maintained, either orally or by some other means.
Q. Is a U.S. resident with power of attorney on his elderly parents’ accounts in Canada required to file an FBAR, even if the resident never exercised the power of attorney?
A. Yes.If the power of attorney gives the U.S. resident signature authority, or other authority comparable to signature authority, over the financial accounts.
Whether or not such authority is ever exercised is irrelevant to the FBAR filing requirement. See IRS Notice 2010-23 for information regarding an extended due date to report signature authority over a foreign financial account.
Q. How do filers report their accounts to the IRS?
A. Filers report their foreign accounts by (1) completing boxes 7a and 7b on Form 1040 Schedule B, box 3 on the Form 1041 “Other Information” section, box 10 on Form 1065 Schedule B, or boxes 6a and 6b on Form 1120 Schedule N and (2) completing Form TD F 90-22.1 (PDF)
.
Q. When is the FBAR due?
A. The FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold. The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR.
Can you request and at FBAR extension?
A. Filers cannot request an extension of the FBAR due date.
If a filer does not have all the available information to file the return by June 30, they should file as complete a return as they can and amend the document when the additional or new information becomes available.
Q. Where are FBAR forms available?
A. FBAR forms are available:
Online via IRS.gov in PDF.
Online via Department of the Treasury’s Financial Crimes Enforcement Network Web site in PDF.
By calling the IRS at 800-829-3676 or you can find them on our website.
Q. Where do I file the FBAR?
A. Send completed forms to:
U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
If an express delivery service is used, send completed forms to:
IRS Enterprise Computing Center
ATTN: CTR Operations Mail room, 4th Floor
985 Michigan Avenue
Detroit, MI 48226
The contact phone number for the delivery messenger service is 313-234-1062. The number cannot be used to confirm that your FBAR was received.
Is FBAR filed with my federal tax return?
The FBAR is not to be filed with the filer’s Federal tax return.
Q. How do I verify that my FBAR was filed?
A. Ninety days after the date of filing, the filer can request verification that the FBAR was received. An FBAR filing verification request may be made by calling 866-270-0733 and selecting option 1. Up to five documents may be verified over the phone.
There is no fee for this verification.
Alternatively, an FBAR filing verification request may be made in writing and must include the filer’s name, taxpayer identification number and the filing period.
There is a $5 fee for verifying five or fewer FBARs and a $1 fee for each additional FBAR. A copy of the filed FBAR can be obtained at a cost of $0.15 per page.
Check or money order should be made payable to the United States Treasury.
The request and payment should be mailed to:
IRS Enterprise Computing Center/Detroit
ATTN: Verification
P.O. Box 32063
Detroit, MI 48232
Q. How does an FBAR filer amend a previously filed FBAR?
A. FBAR filers can amend a previously filed FBAR by:
Checking the Amended box in the upper right-hand corner of the first page of the form;
Making the needed additions or corrections;,Stapling it to a copy of the original FBAR; and Attaching a statement explaining the additions or corrections.
Q. What happens if an account holder is required to file an FBAR and fails to do so?
A. Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties or both. If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaireports are filed late.
No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause.
Call us to find more about reasonable causes that may exist. Keep copies of what you send for your records.
Q. Can cumulative FBAR penalties exceed the amount in a taxpayer’s foreign accounts?
A. Yes, under the penalty provisions found in 31 U.S.C. 5314(a)(5), it is possible to assert civil penalties for FBAR violations in amounts that exceed the balance in the foreign financial account.
Q. How long should account holders retain records of the foreign accounts?
A. Records of accounts required to be reported on an FBAR must be retained for a period of five years. Failure to maintain required records may result in civil penalties, criminal penalties or both.
Q. For filing FBARs for prior years, should the current FBAR form be used or should the previous version of the form be used?
A. The current FBAR form (revised in October 2008) may be used to report a financial interest in, or signature or other authority over, financial accounts that were maintained in years prior to 2008. However, since the changes to the current FBAR form reflect a change in the reporting requirements, the instructions for the prior version of the FBAR form (revised in July 2000) may be relied upon for the purpose of determining the filing requirements for properly reporting financial accounts maintained in calendar years prior to 2008.
Q. Does more than one form need to be filed for a husband and wife owning a joint account?
A. No, provided that the names and Social Security numbers of the joint owners are fully disclosed on the filed FBAR. A spouse having a joint financial interest in an account with the filing spouse should be included as a joint account owner in Part III of the FBAR.
The filer should write “(spouse)” on line 26 after the last name of the joint spousal owner. If the only reportable accounts of the filer’s spouse are those reported as joint owners, the filer’s spouse need not file a separate report.
If the accounts are owned jointly by both spouses, the filer’s spouse should also sign the report. It should be noted that if the filer’s spouse has a financial interest in other accounts that are not jointly owned with the filer or has signature or other authority over other accounts, the filer’s spouse should file a separate report for all accounts including those owned jointly with the other spouse.
Q. Are UBS account holders still eligible for the Voluntary Disclosure Practice? The income earned on my client’s foreign account has not been reported on his Form 1040, nor have FBARs been filed.
A. The Voluntary Disclosure Practice is a longstanding practice of IRS Criminal Investigation of taking timely, accurate, and complete voluntary disclosures into account in deciding whether to recommend to the Department of Justice that a taxpayer be criminally prosecuted.
It enables noncompliant taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution. When a taxpayer truthfully, timely and completely complies with all provisions of the Voluntary Disclosure Practice, the IRS will not recommend criminal prosecution to the Department of Justice.
Although the use of special voluntary disclosures by taxpayers with unreported income from offshore accounts expired on Oct. 15, 2009, non compliant taxpayers can still use the VDP to resolve their tax liabilities. A voluntary disclosure is made by following the procedures described in I.R.M. 9.5.11.9.
If you have any questions you have not answered above please contact us today and you can speak directly to an IRS tax lawyer or IRS. All, consultations are free of charge.
FBAR – We can answer all your Questions – Lawyers, Attorneys, Former IRS – FBAR Experts
by Fresh Start Tax | May 6, 2013 | Tax Help
Settle with the IRS for LESS – Former IRS Settlement Agents 1-866-700-1040
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 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.
If you want to settle for less the best possible persons to ask are former IRS settlement agents who taught the offer and compromise program with the Internal Revenue Service.
We taught this program to new IRS Agents who were qualified to work the tax debt settlement program called the offer in compromise.
We are comprised of tax attorneys, certified public accountants, and former IRS agents and managers.
While working at the Internal Revenue Service we worked in the local, district, and regional tax offices and taught and instructed tax law to the new IRS agents. We are tax experts in settling with the Internal Revenue Service, in payment agreements and tax hardships.
The lowest possible tax settlement
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 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.
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.
Pre-Qualifier Tool
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.
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
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.
Settle with IRS for LESS – Former IRS Settlement Agents – Lowest Possible Tax Settlement
by Fresh Start Tax | May 6, 2013 | Tax Help
Filing, Paying Late Taxes – Former IRS Agents – Affordable Tax Resolution Settlements 1-866-700-1040
If you are having tax issues of filing, paying late taxes contact us today to discuss your various options that will allow you to go ahead and completely and permanently resolve any IRS issues or matters you have on your late or paying back taxes.
We are comprised of tax attorneys, CPAs, and former IRS agents and managers who are tax experts in the area of filing,paying late taxes.
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 A+ rated by the Better Business Bureau and have over 206 years of professional tax experience.
We have been in private practice since 1982 and are true experts in filing and paying late taxes. We can review all your different tax options and have affordable tax resolution settlements that may help completely resolve your IRS problems.
Filing Late Taxes
If you have not filed a past-due tax return(s) it is in your best interest to file that tax return as soon as possible. You should know that IRS has a provision where they can file for your tax return for you under 6020 B of the Internal Revenue Code.
If the Internal Revenue Service files your tax return you will not be happy with the tax result because they will fill that return out using the highest rates and allowing you absolutely no expenses or deductions.
It is your and your best interest to file the return as soon as possible.
Lost, Stolen, Misplaced Tax Records
If your tax records have been lost, stolen or misplaced we can provide a complete tax reconstruction so you cab file your tax return.
The process is very simple as we have reconstructed thousands of tax returns since 1982.
We can simply send you a form you, completed and return it to us and we can use that as a base to reconstruct your tax return so you can have all your tax returns up to date and filed with the Internal Revenue Service.
Paying late taxes
If you need to Pay back taxes there are several options that you have available for you.
IRS will secure a current financial statement from you and you will have to completely document that financial statement along with copies of bank statements, pay stubs and verification of all personal or business expenses.That financial statement is the 433-F. You can find that financial statement on our website.
IRS will then assess your financial statement and place you in one of three categories.
The Internal Revenue Service will either place you in an economic or financial tax hardship or they will insist on a monthly installment payment, or advise you that you’re a candidate for the offer compromise which is the IRS tax debt settlement program. You have the right to appeal any IRS determination with the CAP Process. make sure you are not bullied by the Internal Revenue Service. Being former IRS agents we know the systems and the process to make sure you’re getting the very best deal possible.
The Internal Revenue Service accepts 30% of all offers in compromise.
Before you go running off filing and offer in compromise there is a pre-qualifier tool that you can find on our website.
It is in your best interest to walk through the pre-qualifier program to make sure you are a settlement candidate.
You should know that every situation is unique as well as everyone’s financial condition. It is in your best interest to contact a competent tax professional to completely review your situation and your individual finances. You can send us your current financial statement we will completely review it and go over all your options and let you know the most likely course of action.
Being former IRS agents and managers we know the exact way and the tendencies of the Internal Revenue Service.
Call us today and you will speak directly to a tax attorney, certified public accountant, enrolled agent, or former IRS agent and manager who is a true tax professional and expert in the filing and paying late taxes. We will have an affordable tax resolution settlement for you.
Filing & Paying Late Taxes – Former IRS Agents – Affordable Tax Resolution Settlements
by Fresh Start Tax | May 6, 2013 | Back Taxes
Back Taxes – How/Methods to Settle with the IRS – Use Former IRS Agents 1-866-700-1040
The Internal Revenue Service accepts approximately 30% of all offers in compromise filed each year.
There are 58,000 settlement offers made to the Internal Revenue Service nationwide each year. The average settlement time is 6 to 9 months.
If you have back tax issues and you need to know how to settle with the Internal Revenue Service contact us today and you can speak directly to former IRS agents and managers who have been with the Internal Revenue Service for over 60 years in the local, district, and regional tax offices of the Internal Revenue Service. We can discuss the how and the methods.
Not only did we work at the Internal Revenue Service we also taught the IRS methods of tax debt settlements to the new IRS agents called the offer in compromise.
In settling tax debt with the Internal Revenue Service on back taxes it is extremely important for taxpayers to understand the process.
No taxpayer should submit an offer compromise unless they know the formulas that will be applicable to their own case.
As a general rule, IRS looks at two factors when looking to settle a taxpayers debt. Assets and Income.
The Internal Revenue Service is going to want to know what is the some total equity in all your assets and they are going to want to know how much disposable income that you have at the end of every month. The necessary living expenses that they will allow are governed by the Department of Labor. There are national and geographical regional standards already set up by the Internal Revenue Service.
IRS will then add the sum total of your assets plus the excess disposable income times 12 as a settlement basis for most offers in compromise.
IRS will want a completed 433-OIC which you can find on our website and they will want all supporting documentation to verify all the income and expenses.
IRS spends a considerable amount of time working in offer in compromise. As a general rule and offered compromise takes about 20 to 30 hours work of worth of work for the IRS closing agent. The average closing time is anywhere from 6 to 9 months.
Any taxpayer who wants to go ahead and settle their back tax debt should walk through the pre-qualifier program that IRS has on offers in compromise. You can find that pre-qualifier tool on our site. This is one of the best methods to find out if you can settle with the Internal Revenue Service.
I would recommend that any taxpayer who wants to learn more on the different methods or how to settle their back taxes with the Internal Revenue Service to contact us for free initial consultation and we will review their case for them.
What is an offer in compromise or settling with the Internal Revenue Service
An offer in compromise/ tax debt settlement allows you to settle your tax debt for less than the full amount you owe.
It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. IRS will consider your unique set of facts and circumstances. IRS will specifically look at your:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
The Internal Revenue Service will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications. You should consider checking BBB ratings and also check out the experience of the tax professional that will be working your case.
Make sure you are eligible for an offer in compromise or tax debt settlement
Before the Internal Revenue Service can consider your offer, you must be current with all filing and payment requirements.
In Bankruptcy?
You are not eligible if you are in an open bankruptcy proceeding.
Submitting your offer/settlement
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF).
Your completed offer package will include:
a. Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
b. Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
c. $150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a payment option to pay the back taxes
Your initial payment will vary based on your offer and the payment option you choose:
Lump Sum Cash Payment:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
Periodic Payments:
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer.
If accepted you must continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
While your offer/method is being evaluated:
Your non-refundable payments and fees will be applied to the tax liability you may designate payments to a specific tax year and tax debt.
Other factors to consider
a. A Notice of Federal Tax Lien may be filed;
b. Other collection activities are suspended;
c. The legal assessment and collection period is extended;
d. Make all required payments associated with your offer;
e. You are not required to make payments on an existing installment agreement; and
f. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
To summarize, the most important thing to know about paying your back taxes and settling with the Internal Revenue Service is to understand the how and the method of tax debt settlements.
That’s why we are critical to walk to through the pre-qualifier tool on our website to make sure you are eligible for the IRS offer in compromise tax debt settlement. It is also critical you to talk to a tax professional expert in back tax matter settling with the IRS.
There are a lot of scam artists out there so make sure you check out the credentials of person who will be directly working your case
by Fresh Start Tax | May 2, 2013 | Back Taxes
Unpaid Back Taxes – Settle with the IRS – Affordable Back Tax Solutions 1-866-700-1040
If you owe unpaid back taxes to the Internal Revenue Service call us today to find out the different tax options that you have available to you to deal, settle, and negotiate your tax debt with the Internal Revenue Service.
We can offer a variety of affordable backpack solutions.
We are comprised of tax attorneys, tax lawyers, certified public accountants, and former IRS agents and managers who true tax experts in dealing with unpaid back taxes.
We have over 206 years of professional tax spreads in over 60 years of working for the Internal Revenue Service and the local, district, and regional tax offices of the IRS.
By filling out a simple IRS financial statement which you can find on our website, we can fully evaluate your case and give you a very affordable tax recommendation solution to both deal and settle with the Internal Revenue Service. Evaluations are free of charge.
IRS will want a current financial statement to Settle with the IRS on Unpaid Back Taxes
The Internal Revenue Service deals with unpaid back taxes by analyzing the taxpayer’s current ability to pay the IRS. The IRS uses form 433-F to make that determination. IRS will want full substantiation and verification of this simple two-page IRS financial statement before they will make a determination on how they will negotiate your tax case.
IRS will want to see your last pay stub, your last 3 to 6 months bank statements and a copy of all your monthly bills and expenses. Once the Internal Revenue Service reviews this financial statement they will easily be able to make a determination on how they are very close your case and settle your IRS tax problem on your unpaid back taxes.
If you owe under $50,000 to Internal Revenue Service you may qualify for the streamlined agreement. You will have to pay your tax liability off within 72 months on 72 equal payments.
As a general rule there are three ways the Internal Revenue Service will remove your case off the IRS enforcement computer.
Hardship
IRS may determine based on your current financial statement that you have more expenses and income and they have the option to put you into a non-collectible or currently not collectible status. The status is usually lasts 2 to 3 years or until the taxpayers income sufficiently increases.
Payment Plan
IRS may determine as a result of your current financial statement that you can make a current payment and put you on a monthly installment agreement.
IRS Offer in Compromise or Tax Debt Settlement
IRS lastly may determine that you are an excellent candidate for an IRS offer in compromise or a tax debt settlement called. This is what is commonly known as settling for pennies on a dollar or settling with the Internal Revenue Service.
To settle with the Internal Revenue Service there is a pre-qualifier tool that you can use, it you can find it on our website.
You can walk through this program yourself to find out whether you are a true IRS settlement candidate.
Before I recommend that any taxpayer enter into a settlement with the Internal Revenue Service or file an offer in compromise they either walk through the pre-qualifier tool or speak to somebody who is a true tax experts in the offer in compromise program.
You should know that I was a former IRS agent in teaching instructor with the Internal Revenue Service taught the offer in compromise program to new IRS agents.
You can contact us today and we can make a recommendation for you to settle with the IRS or give you tax options for other affordable back tax solutions.
Unpaid Back Taxes – Settle with the IRS – Affordable Back Tax Solutions
