by Fresh Start Tax | Apr 24, 2013 | Tax Levy and Wage Garnishments
Get Wage Garnishment Levy Released ASAP – Former Agents 1-866-700-1040
Let Former IRS agents and managers get your IRS wage garnishment levy released or removed today.
Upon your call to us we will secure a power of attorney, a current financial statement along with documentation and with that in hand we can get your IRS wage garnishment levy released.
If you have received a wage garnishment levy from the Internal Revenue Service we can get it removed quickly.
Contact us today and get your life back in order.
We can not only get your IRS wage garnishment levy released we can also settle your case at the same time.
We are comprised of tax attorneys, certified public accountants, and former IRS agents and managers who know the exact process and system to quickly and with affordable pricing get your IRS wage garnishment levy removed.
We have over 60 years of working for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
Why IRS Wage Garnishments are sent to Employers
The Internal Revenue Service will send a wage garnishment IRS levies to taxpayers employers if taxpayers have not responded to the final billing notices sent out by IRS.
As a general rule the IRS sends out a series of 3 to 4 letters or notices letting taxpayers know that if the taxpayer does not respond to the Internal Revenue Service a wage levy or a bank levy will be forthcoming.
Many taxpayers either fail to act on that notice or have never received the final notice and wind up getting their wages seized or frozen by the Internal Revenue Service.
The requirement to get the Wage Garnishment IRS levy released
To get the wage garnishment IRS levy released a taxpayer will have to provide to the Internal Revenue Service a form 433F which is a version of a financial statement.
You can find this form on our website.
That form along with all pay stubs, bank statements and all monthly expenses will have to be forwarded for the IRS so they can make a determination on how to release your IRS wage garnishment and settle your case.
After IRS carefully reviews the financial statement and the documentation, the Internal Revenue Service will usually release the wage garnishment IRS levy and put the client in one of three closing postures.
Closing or Settlement Options
The IRS will either place the taxpayer into an economic tax hardship due to their current financial status or ability, the IRS will insist on a payment or installment agreement because they make more than the national or regional averages, or IRS will let you know you’re a suitable candidate for offer in compromise.
To get your wage garnishment IRS levy removed quickly a taxpayer will provide fresh start tax a completed financial statement along with the documentation. As a general rule we can get that levy released the day we receive the documents that IRS will need to close her case.
Regarding the IRS wage garnishment, IRS levy
Introduction
An individual’s wages, salary, and other income can be levied. Wages, salary, and other income include payment for personal services in a work relationship.
If your employer Threatens to Fire Taxpayer Because of a Levy fight back
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.
The Continuous Effect of Levy on Salary and Wages
Unlike other levies, a levy on a taxpayer’s wages and salary has a continuous effect.
It attaches to future payments, until the levy is released. The Internal Revenue Service will not back off until the taxpayer makes an attempt to settle there case with the IRS.
All 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.
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.
Future Payments that may be Due
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.
Retirement or Social Security Income, nothing is sacred to the IRS
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.
Exempt Amount from the IRS wage garnishment levy
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.
Get Wage Garnishments IRS Levy Released ASAP using IRS Former Agents
by Fresh Start Tax | Apr 24, 2013 | Tax Help
IRS Settlement Program for Back Taxes – Hear the Truth 1-866-700-1040
The Internal Revenue Service Offer In Compromise Program is the basic IRS settlement tool used by taxpayers to settle their IRS debt.
Settlement program for IRS has a 25% success rate for all those who file offers in compromise.
As a former IRS agent I have not only work this program but am a former IRS teaching instructor.
As a result of my years of experience at the Internal Revenue Service, I know all the settlement formulas, the settlement procedures, and the exact structure to make this work for any taxpayer who is a true candidate for the IRS settlement program.
You should know from the start that not all taxpayers fit into the IRS settlement program.
IRS has a pre-qualifier tool and you will find that our website.
You should not engage any tax firm until they let you know that you are a true settlement candidate. Many internet tax firms rip thousands and thousands of taxpayers off by telling them ” we can settle for pennies on a dollar. ”
Make sure you know who you’re speaking to before engaging any tax firm to settle your IRS cases on back tax. Make sure you are speaking to a tax attorney, certified public accountant, and enrolled agent or a former IRS agent. with most Internet firms they often have sales people try to convince you into an IRS settlement program. Be very cautious this does not happen to you because you can lose your upfront money.
We have over 60 years of direct working knowledge and experience with the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
We will review your case for free and let you know whether you are a qualified settlement program candidate for your back taxes. Hear the truth from fresh start tax today.
What is the IRS settlement program
An offer in compromise or tax debt settlement program is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
Eligibility
In order to be eligible for an OIC, the taxpayer must have filed all tax returns, made all required estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP). The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
IRS may accept an OIC based on three grounds.
First. Acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second. Acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third. Acceptance is permitted based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Submission of the IRS Offer in Compromise
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of Form 656 (PDF), Offer in Compromise, and must also submit Form 433-A (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (PDF), Collection Information Statement for Businesses.
A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A and/or Form 433-B.
Application fee for the IRS settlement program
A taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. The fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
The lump sum payment settlement
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount. This payment is required in addition to the $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability.
The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
Periodic payment offer or settlement
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted.
When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656. This payment is required in addition to the $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer.
Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. These amounts are also nonrefundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
The statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws. If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties. Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Rejections of the IRS Settlement for Back Taxes
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals. The appeal must be made within 30 days from the date of the letter.
In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
You can refile your IRS Settlement on Back Taxes if it is not approved
Remember you can file as many offers in compromise as you want. Taxpayers are not restricted whatsoever. If your first offer in compromise is rejected learn from your mistakes and resubmit another offer correcting the issues in which IRS had problems with.
IRS Settlement Program for Back Taxes – Hear the Truth, Former IRS
by Fresh Start Tax | Apr 23, 2013 | Tax Help
Need to File Back Tax Returns & Pay Back Taxes – Settlement Programs 1-866-700-1040
If you need to file your back tax returns, pay your back taxes or reach a settlement with Internal Revenue Service you have found the right tax firm to help resolve this matter for you.
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 Internal Revenue Service.
While at IRS we worked the non-filing and settlement programs.
So, as a result, we know all the systems, procedures, and settlement formulas to make this all happen for you.
We can take the pain and misery out of this process by handling and settling these matters for you all at one time.
The key to file your back tax returns and to pay your back taxes is to have a settlement strategy.
IRS will require a current financial statement for each and every taxpayer that file back tax returns and owe back taxes. For IRS to resolve this issue and to remove you from their enforcement computer, the IRS will require a current financial statement which is on 433-F. You can find that financial statement on our site.
IRS will determine your ability to pay. As a general rule IRS will either find that a taxpayer is financially unable to pay at this time and those files are usually put in to currently uncollectible, or the IRS may determine you can make installment or a payment arrangements with them, or you may enter into the IRS settlement program called an offer in compromise.
Being former IRS agents we know the settlement strategies of Internal Revenue Service. We will carefully review your documented financial statement with you and come up with a plan to not only file your back tax returns but to have a healthy exit strategy. So if you need to file your back tax returns and reach a settlement, call us today for free tax consultation.
The Process of Filing Back Tax Returns
We have worked thousands and thousands of taxpayers having the issues of filing and paying back taxes. We are true experts in this field.
Most taxpayers have wanted to file back tax returns but year after year but because of fear or other reasons they have failed to pull the trigger of filing their back taxes and not knowing what was going to happen. Fear does paralysis.
IRS has made this process very simple to go ahead and to file your back tax returns and settle with the Internal Revenue Service.
Fresh Start Tax LLC can go ahead and prepare your back tax returns and send them into the Internal Revenue Service with an offer in compromise or an IRS tax debt settlement.
As a result of the new IRS fresh start program or fresh start initiative the IRS has made it much simpler for taxpayers to get back in the system and get their lives restored and to get back into financial health without fear.
You can contact us for free tax consultation today and we can walk you through the process.
The new IRS fresh start program.
Regarding Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses.
The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
Do not let fear keep you from filing your back tax returns. This process is much simpler than you think.
Offers in Compromise Settlement Programs
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.
Need to File Back Tax Returns & Pay Back Taxes – Settlement Programs
by Fresh Start Tax | Apr 23, 2013 | Tax Help
Did not receive your Tax Refund – Refund Offsets – Fresh Start Tax LLC
Facts on Tax Refunds and Offsets
Certain financial debts from your past may affect your current federal tax refund.
The law allows the use of part or all of your federal tax refund to pay other federal or state debts that you owe.
Here are facts that you should know about tax refund offsets.
A tax refund offset generally means the U.S. Treasury has reduced your federal tax refund to pay for certain unpaid debts.
a. The Treasury Department’s Financial Management Service is the agency that issues tax refunds and conducts the Treasury Offset Program.
b. If you have unpaid debts, such as overdue child support, state income tax or student loans, FMS may apply part or all of your tax refund to pay that debt.
c. You will receive a notice from FMS if an offset occurs. The notice will include the original tax refund amount and your offset amount.
It will also include the agency receiving the offset payment and that agency’s contact information.
d.If you believe you do not owe the debt or you want to dispute the amount taken from your refund, you should contact the agency that received the offset amount, not the IRS or FMS.
e. If you filed a joint tax return, you may be entitled to part or all of the refund offset. This rule applies if your spouse is solely responsible for the debt.
To request your part of the refund, file Form 8379, Injured Spouse Allocation. Form 8379 is available on IRS.gov or by calling 1-800-829-3676.
Did not Receive your Tax Refund – Refund Offsets – Fresh Start Tax LLC
by Fresh Start Tax | Apr 23, 2013 | Tax Help
Received IRS Summons – Call Former IRS Agents/Managers 1-866-700-1040 Affordable, Since 1982
If you have received an IRS Audit or Collections Summons or subpoena do not be over alarmed or over worried.
We can take care of this matter for you and settle your case.
We have of over 206 years professional tax experience and have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices.
We worked as former IRS agents, managers, appeals agents, revenue agents, office audit managers, and teaching instructors. We know every aspect of the Internal Revenue Service.
If this involves a criminal tax matter we have on staff the CPA tax attorney who you can speak to under attorney-client privilege.
Summonses were subpoenas for IRS criminal matters are a completely different matter.
As a general rule as a former IRS agent when I summoned taxpayers was only because my attempts to secure information to close the case was unavailable and the taxpayer was uncooperative and would never provide the information I needed. Most summonses that IRS are issues are just an attempt to close the case.
Collection or Audit Summons
Usually IRS is simply trying to get information to make a case evaluation to find out which one of three closing methods they will use to take their case off the IRS enforcement system.
Many of these IRS summons that are issued are issued because of a lack of communication or contact with the taxpayer.
Contact us today and we can go ahead and resolve these issues and matters for you. Being former IRS agents and managers we have served and subpoenaed hundreds upon hundreds of taxpayers.
We can completely deal with the Internal Revenue Service provide them the information they need and we can take the worry and the fear out of your life.
So if you have received an IRS summons stop the worry and fear call us today and let us provide you honest affordable and trustworthy tax representation.
The IRS Summons
Rights and Privileges of Person Summoned
Persons summoned to testify before the Service or to produce records may assert certain rights or defenses including the following:
1. Fifth Amendment Privilege Against Self Incrimination,
2. Right to Be Represented by Counsel,
3. Attorney-Client, Federally Authorized Tax Practitioner-Taxpayer, Husband-Wife, and Clergy-Penitent Privileges,
4. Right to Make an Audio Recording of the Proceeding,
5. IRC 7609 Noticees’s Right to Petition to Quash a Third-Party Summons,
6.Right of Third-Party Witness to Refuse Unreasonable Requests and to Raise Appropriate Defenses,
7. Representation Issues,
8. Disclosure Issues
For more extreme cases – Fifth Amendment Privilege Against Self Incrimination
The Fifth Amendment to the Constitution provides that no person shall be compelled to be a witness against himself. However, information or evidence furnished voluntarily by an individual taxpayer or witness who has been summoned may be used even though it may be incriminating.
IRC 7602 authorizes the Service to summon taxpayers and third parties to testify and to produce books and records. However, if answering a question would tend to incriminate the summoned person, that person may assert his or her Fifth Amendment privilege and refuse to answer. In contrast, a summoned person has no Fifth Amendment privilege in the contents of voluntarily created, pre-existing documents because the Government did not compel that person to create the documents.
However, the act of producing those documents may tend to incriminate a summoned person because the mere act of production compels that person to tacitly admit that the documents exist, they are in that person’s possession, and he or she believes the documents produced are those required by the summons.
Whether any of these tacit admissions may tend to incriminate a summoned person will depend on the facts and circumstances of each case. Consequently, that person may have a valid Fifth Amendment privilege against producing voluntarily created, pre-existing documents.
This situation may exist when a taxpayer (or other person) is summoned to produce the records of his or her sole proprietorship.
If a taxpayer transfers the records of his or her sole proprietorship to another person, the Service can summon the third party to produce those records.
The taxpayer cannot raise a Fifth Amendment objection to prevent a summoned third party from producing these records because the privilege against self-incrimination is personal to the taxpayer, i.e., it extends only to testimony and records sought from the taxpayer.
This is true even though the taxpayer could have successfully avoided producing the records pursuant to a Fifth Amendment objection when they were in his or her possession. However, a significant exception to this rule exists when the taxpayer transfers the records of his or her sole proprietorship to an attorney to obtain legal advice.
If, under these circumstances, the taxpayer could have avoided producing these records while they were in his or her possession, the attorney-client privilege will prevent the Service from summoning the records from the attorney so long as the taxpayer transferred the records to obtain legal advice.
Please Note:
IRC 7525 extends the attorney-client privilege to communications between a taxpayer and a federally authorized tax practitioner in noncriminal tax matters before the Service and noncriminal tax proceedings in federal court.
Privileged Communication and Summons.
While a warning of constitutional privilege against self-incrimination (e.g., “You have the right to not answer questions that may incriminate you.” ) may not be required as a matter of law, such warning may have substantial significance from an evidentiary standpoint in overcoming a contention that the testimony or information was given involuntarily, under compulsion.
A witness who contends that the testimony or information was given involuntarily, under compulsion, has the burden of sustaining that contention.
Summonsing a taxpayer or other witness to take a handwriting exemplar is within the authority of IRC 7602 . This does not violate any constitutional rights or policies enunciated by Congress.
Compulsion of handwriting exemplars is neither a search nor a seizure subject to Fourth Amendment protections nor testimonial evidence protected by the Fifth Amendment privilege against self-incrimination.
A handwriting exemplar is an identifying physical characteristic.
If you have received an IRS summons contact us today and we can help take some of the pain and misery out of your life. We are tax experts in this field.
