by Fresh Start Tax | Apr 9, 2013 | Tax Help
Unfiled Back Tax Returns – We can get you back in the system worry free – Former IRS Managers 1-866-700-1040
Get back in the system worry free with Former IRS Agents and Managers who know the system.
We can file all your unfiled, late, past-due and back tax returns and work out a tax settlement for you all at one time.
If you have little or no tax records that will not be a problem for us for we have reconstructed thousands of tax returns in our lifetime. The process is a simple one.
Call us today and we will go over the process and give you all the available tax options to you can get your life back in order worry and stress free.
Millions of people just like you want to get back into the IRS system but do not know what to do.
Taxpayers are worried and frightened that they might be in serious trouble however the IRS is happy to get you back into the system.
The best thing to do is to be proactive and file all of your back taxes before the IRS tells you to.
It is of utmost importance to know that each case is truly different and certain facts and patterns can drastically change the outcome and advice that you are given.
In some cases we file three years of back tax returns and another cases we may go back as many as six years , a lot depends on the facts and circumstances of your particular case.
The Process on Unfiled Back Tax Returns
There is a general rule of thumb that can be followed when filing back unfiled tax returns.
The place to start is to contact the IRS at the ASC Unit and ask for an income transcript on your social security number.
Let the IRS representative that answers the telephone know that you are looking for back income transcripts and want to file your back tax returns.
The IRS agent handling the case will give you a due date to file all unfiled back tax returns and send you an income transcript showing you all your income sources for the past six years.
From there you can start the process of filing or of tax reconstruction. Tax reconstruction occurs when you have little or no records to prepare your back on file tax returns.
As a side note
The IRS keeps income records for 7 years and will have on their transcripts of all income reported, 1099, w-2 or gambling winnings that are on file with third parties.
If you have no records to file unfiled back tax returns, you will have to prepare what is known as a cost of living analysis.
A cost of living analysis is a year by year analysis of your income and expenses.
Mock up instructions
Figure up what your average monthly expenses were for one month and multiple by 12 to come up with your annual total.
Also, add up the total of your bank deposits for that year to make sure they tie into your claimed income.
While this is not exact science, it serves as a beginning point to prepare your return.
The IRS will probably accept the tax return as is.
Tax tip on Unfiled Tax Returns
Anytime the IRS is looking at a tax return, for any year, they want to see a common cord through your claimed income. That means your bank deposits, cost of living and a financial statement for that year.
All of those should tie together. An example of this is as follows, if you are saying that you make $36,000 a year, your total monthly expenses should not exceed more than $3000.
If your total monthly expenses exceed $3000 a month that does not add up to the $36,000 a year you were showing on your tax return.
That would cause a red flag to go up by the Internal Revenue Service. Always remember the first place IRS looks to verify your income is in your bank statements.
If you will owe tax be prepared to answer this question, How are you and pay your back tax debt?
If you cannot pay your back tax bill as a result of the filing of your tax returns IRS will require you to fill out a current financial statement which will be on IRS form 433-F. IRS will then conduct a review of your income, expenses and any assets that you have and propose a solution to pay your back taxes.
Most persons in the situation will usually be put into three categories.
As a general rule if you are going through an economic tax hardship the IRS may place you into a current tax hardship.
IRS may ask that you enter into a installment payment.
IRS let you know that you are offer in compromise settlement candidate.
Contact us today and we can help file all your unfiled back tax returns and work out an effective tax settlement so you can go on and live a normal financial tax life.
We have over 60 years with the Internal Revenue Service and we are A+ rated by the Better Business Bureau. We’ve been in private practice since 1982.
Unfiled Tax Returns – Get Back in the system, Worry Free – Former IRS Managers
by Fresh Start Tax | Apr 9, 2013 | Income Tax Preparation
Income Tax Mistakes Most Commonly Made – Avoid this Tax Mistakes
The IRS finds certain tax times mistakes over and over and wants to remind all the players involved, “heads up, keep your eye on the ball.”
So here goes:
If you make a mistake on your tax return, it usually takes the IRS longer to process it.
The IRS may have to contact you about that mistake before your return is processed. This will delay the receipt of your tax refund.
The IRS reminds filers that e-filing their tax return greatly lowers the chance of errors. In fact, taxpayers are about twenty times more likely to make a mistake on their return if they file a paper return instead of e-filing their return.
Common errors to avoid.
1. Wrong or missing Social Security numbers.
Be sure you enter SSNs for yourself and others on your tax return exactly as they are on the Social Security cards.
2. Names wrong or misspelled.
Be sure you enter names of all individuals on your tax return exactly as they are on their Social Security cards.
3. Filing status errors.
Choose the right filing status.
There are five filing statuses:
- Single,
- Married Filing Jointly,
- Married Filing Separately,
- Head of Household and,
- Qualifying Widow(er) With Dependent Child.
See Publication 501, Exemptions, Standard Deduction and Filing Information, to help you choose the right one.
E-filing your tax return will also help you choose the right filing status.
4. Math mistakes.
If you file a paper tax return, double check the math. If you e-file, the software does the math for you. For example, if your Social Security benefits are taxable, check to ensure you figured the taxable portion correctly.
5. Errors in figuring credits, deductions.
Take your time and read the instructions in your tax booklet carefully. Many filers make mistakes figuring their Earned Income Tax Credit, Child and Dependent Care Credit and the standard deduction.
For example, if you are age 65 or older or blind check to make sure you claim the correct, larger standard deduction amount.
6. Wrong bank account numbers.
Direct deposit is the fast, easy and safe way to receive your tax refund. Make sure you enter your bank routing and account numbers correctly.
7. Forms not signed, dated.
An unsigned tax return is like an unsigned check – it’s invalid. Remember both spouses must sign a joint return.
8. Electronic signature errors.
If you e-file your tax return, you will sign the return electronically using a Personal Identification Number.
For security purposes, the software will ask you to enter the Adjusted Gross Income from your originally-filed 2011 federal tax return.
Do not use the AGI amount from an amended 2011 return or an AGI provided to you if the IRS corrected your return.
You may also use last year’s PIN if you e-filed last year and remember your PIN.
Income Tax Mistakes Most Commonly Made
by Fresh Start Tax | Apr 9, 2013 | Tax Lien
Lift IRS Tax Levy, Tax Lien – Affordable Former IRS Agents – Levy, Lien Experts 1-866-700-1040
Do not be bullied by the Internal Revenue Service.
Call us today in hear the various tax options you have available to lift your IRS tax levy or the filing of the federal tax lien.
Everyone circumstance is unique.
There is no one particular way that is used on all cases. After a 5 minute review of your case we can tell you exactly how to remedy your individual problem on your individual case. We have over 60 years of direct work experience at the Internal Revenue Service and know every available option that you have. We also taught tax law at the Internal Revenue Service.
What is a Federal Tax Lien
A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt.
The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. It help them and ruins you.
A federal tax lien exists after the IRS:
1. The IRS assesses your liability and a tax assessment is created,
2. The IRS sends you a tax bill that explains how much you owe this is called a Notice and Demand for Payment and,
3. You neglect or refuse to fully pay the debt in time.
The IRS will file a public document called the Notice of Federal Tax Lien to alert creditors that the government has a legal right to your property.
How to Get Rid of a Lien
Your options are as follows:
1. Paying your tax debt.
In full is the best way to get rid of a federal tax lien.
The IRS releases your lien within 30 days after you have paid your tax debt. If you pay by cashier’s check you can go to the local out office you can ask for immediate release of the federal tax lien.
When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist.
2. Discharge of property.
Allows property to be sold free of the lien. The seller or buyer can submit Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien.
3. Subordination.
Does not remove the lien, but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage. For more information review Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien.
Withdrawal.
Removes the public notice and assures that the IRS is not competing with other creditors for your property. If applying for a withdrawal, use Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien.
How a Lien Affects You
a. Assets. A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
b. Credit. Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
c. Business. The lien attaches to all business property and to all rights to business property, including accounts receivable.
d. Bankruptcy. If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
Avoid a Federal Tax Lien
You can avoid a federal tax lien by simply filing and paying all your taxes in full and on time. If you can’t file or pay on time, don’t ignore the letters or correspondence you get from the IRS.
If you can’t pay the full amount you owe, payment options are available to help you settle your tax debt over time.
IRS Tax Lien vs. IRS Tax Levy
A lien is not a levy.
A lien secures the government’s interest in your property when you don’t pay your tax debt.
A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.
How to lift an IRS tax Levy
There is a very specific way to lift an IRS tax Levy. If you are reading this the IRS is probably levied your bank account and/or your hard-earned wages.
To get your IRS levy lifted you will need to provide IRS with a detailed and documented financial statement. You can find that financial statement on our website. It is a IRS tax form 433-F.
IRS will also want to see your last 3 to 6 months bank statements, a copy of your pay stub all of the current expenses that you have.
The IRS will then make a determination after a careful review of your financial statement which category to put you in.
There are three (3) normal categories at the IRS puts taxpayers and after they sent out an IRS tax Levy.
IRS will either place you into an economic tax hardship, or into a installment payment, or let you know you are a possible offer in compromise candidate.
That financial statement that you are filling in giving to IRS the key to how your case will be closed off the IRS enforcement computer.
Contact us today and we will review your case for no cost and review your tax option so you can get IRS off your back permanently. We can guarantee a lifting of all tax levies.
We are comprised of tax attorneys, CPAs and former IRS agents. We have a combined total of 206 years professional tax experience and we are A+ rated by the BBB.
Lift IRS Tax Levy, Tax Lien – Affordable Former IRS Agents – Levy, Lien Experts 1-866-700-1040
by Fresh Start Tax | Apr 9, 2013 | Back Taxes
IRS Back Taxes – Filing, Audits, Tax Settlements — Local IRS Tax Experts 954-492-0088
We are professional tax firm located in South Florida that handles all IRS back tax issues. Whether you need to file back tax returns, undergoing an IRS tax audit or looking for an IRS tax settlement called an offer in compromise we are your one firm that can handle all IRS and State problems.
We are comprised of tax attorneys, CPAs, and former IRS agents, managers and instructors.
We have over 60 years of direct work experience at the local IRS South Florida offices.
We worked as IRS agents, appeals officers, audit managers, revenue agents, revenue officers and IRS offer in compromise specialist.
All our work is done in-house and we are used by several firms in the South Florida area to manage and handle their IRS clients.
You can contact us today for a free consultation or come by and visit our office.
We love to meet with you and explain the different tax options you had to resolve your IRS debt.
How the new IRS Fresh Start Program may help you.
In its latest effort to help struggling taxpayers, the Internal Revenue Service announced a series of new steps to help people get a fresh start with their tax liabilities.
The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
Specifically the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
The changes include:
1.Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens,
2. Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill,
3. Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement,
4. Creating easier access to Installment Agreements for more struggling small businesses,
5. Expanding a streamlined Offer in Compromise program to cover more taxpayers.
Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently liens are automatically filed at certain dollar levels for people with past-due balances.
The IRS plans to review the results and impact of the lien threshold change in about a year.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors.
Usually the government is not the only creditor to whom the taxpayer owes money.
A federal tax lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter.
A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain a federal tax lien withdrawal.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement.
For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored. This period is three months.
In additions lowers user fees and saves the government money from mailing monthly payment notices.
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.
Offers in Compromise or Tax Debt Settlements
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 or tax debt settlement 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.
Call us today for a free initial tax consultation and hear the all the available tax options to help relieve you of your IRS problem.
IRS Back Taxes – Filing, Audits, Tax Settlements – Local IRS Tax Experts – Ft.Lauderdale, Miami, Palm Beaches
by Fresh Start Tax | Apr 9, 2013 | Tax Levy and Wage Garnishments
We can STOP a IRS Levy, Garnishment – IRS Tax Attorneys & Former IRS Agents – Affordable 1-866-700-1040
We can stop the IRS right in their tracks.
Contact us today and we will go over the different tax solutions and remedies so you can end your nightmare with the Internal Revenue Service.
We have worked over 60 years at the Internal Revenue Service and the local, district, and regional tax offices of the local South Florida IRS.
We know every strategy and every tax policy that there is to know.
Not only do we have 60 years experience we also taught tax law at the IRS.
If you want results contact us today and we can we can guarantee we can get your IRS Bank Levy wage garnishment released.
Why does IRS Levy
Contrary to popular belief the IRS does not want a levy or tax garnishment taxpayers assets.
Actually, it has no choice.
Per the Internal Revenue Manual the IRS must send out the IRS Levy notice or Wage Garnishment notice if taxpayers do not comply with the notices and letters that IRS sends.
A levy is never touched by human hands.
It is systemically generated by the CADE2 computer. IRS will use the information from your last three tax returns as a levy or garnishment sources.
IRS will examine your tax return and find out places were you had income and who your employer are and use that as a starting point to seize and garnish to pay the back tax debt. IRS Levies and Tax Garnishments can be stopped within one week and sometimes the same day.
Stopping the IRS Levy or Tax Garnishment
After working for the IRS for a combined 60 years there is a very specific process in stopping the IRS levy or the IRS tax garnishment.
The first thing is to send in a power of attorney to let the IRS know that they can only communicate with us as a result you will never speak to the Internal Revenue Service. The next thing that is done is to secure a documented financial statement from our clients. That will be in the form of a 433F which you can find on our website.
With a financial statement in hand we speak to the IRS agent working the case and come up with a solution that the taxpayer can live with and appease IRS at the same time. IRS uses that financial statement as its sole determining factor in closing their case off the enforcement computer.
As a general rule the IRS closes cases in three ways.
Your case will either be closed due to an economic tax hardship which means you really do not have the ability right now to pay your back tax, IRS may insist on installment payment agreement, or IRS will let you know you are a person that can qualify for an offer in compromise or a tax debt settlement. We work with our clients to make sure they are getting the best deal possible with the Internal Revenue Service.
If we have a chance to abate penalties and interest due to reasonable cause we will move forward to get these penalties and interest abated.
If we do not agree with the IRS
What many taxpayers do not know.
If the IRS agent you are working with is giving you a hard time or you not agree with the decision that is recommended you have options.
You can ask for an independent reviewer (IR ) to look at your case. You can provide new information and evidence to this independent third-party.
Other options are filing a CDP when appropriate.
Call us today we will review your financial statement with you free of charge and let you know the options that you have.
We can STOP a IRS Levy, Tax Garnishment – IRS Tax Attorneys & Former IRS Agents – Ft.Lauderdale, Miami, Palm Beaches
