by Fresh Start Tax | Jan 18, 2013 | Offshore Program
Offshore Bank Accounts – Advice on how report to the IRS – Tax Attorneys, Former IRS 1-866-700-1040
We are comprised of board-certified tax attorneys, CPAs and former IRS agents, managers and tax instructors. While employed at the IRS we taught tax law.
You can call us today for free tax consultation and we can discuss with you all the issues regarding offshore bank accounts and advice on how and when to report to the Internal Revenue Service.
We are A+ rated by the BBB and then private practice since 1982.
The IRS is on the hunt and prowl for those taxpayers placing their funds in offshore bank accounts. The IRS has formed various tasks force to go ahead and to pursue the collection of those hiding and/or evading their money from the United States government.
Every taxpayer has a different situation and there are no two situations the same. Because of the recent change in tax laws in the IRS pursuit of the filing of Fbar it is beneficial for taxpayers to find IRS before the IRS finds them.
OVDP has been very successful
The Offshore voluntary disclosure programs have so far resulted in the collection of more than $5 billion in back taxes, interest and penalties from 33,000 voluntary disclosures made under the first two programs.
In addition, another 1,700 disclosures have been made under the new program announced in January.
The voluntary disclosure programs are part of a wider effort by the IRS to stop offshore tax evasion and ensure tax compliance.
This includes beefed up enforcement, criminal prosecution and implementation of third-party reporting through the Foreign Account Tax Compliance Act.
The IRS also closed a loophole that’s been used by some taxpayers with offshore accounts. Under existing law, if a taxpayer challenges in a foreign court the disclosure of tax information by that government, the taxpayer is required to notify the U.S. Justice Department of the appeal. This close loophole can can spell doom for many taxpayers.
The IRS said that if the taxpayer fails to comply with this law and does not notify the U.S. Justice Department of the foreign appeal, the taxpayer will no longer be eligible for the Offshore Voluntary Disclosure Program.
The IRS also put taxpayers on notice that their eligibility for OVDP could be terminated once the U.S. government has taken action in connection with their specific financial institution.
Slowly and surely the United States government is being successful in getting treaties with almost every country for their account holders to turn over information to the US government.
The IRS is aware that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs). Some of these taxpayers have recently become aware of their filing requirements and want to comply with the law. Most people have absolutely nothing to worry about.
To help these taxpayers, the IRS offered the new procedures that will allow taxpayers who are low compliance risks to get current with their tax requirements without facing penalties or additional enforcement action.
These people generally will have simple tax returns and owe $1,500 or less in tax for any of the covered years. The majority of taxpayers fit in the simple tax return category.
Canadian Registered Retirement
The IRS also announced that the new procedures will allow resolution of certain issues related to certain foreign retirement plans (such as Canadian Registered Retirement Savings Plans).
In some circumstances, tax treaties allow for income deferral under U.S. tax law, but only if an election is made on a timely basis. The streamlined procedures will be made available to resolve low compliance risk situations even though this election was not made on a timely basis.
The new procedures.
Taxpayers using the new procedures will be required to file delinquent tax returns along with appropriate related information returns for the past three years, and to file delinquent FBARs for the past six years. It is best to check with a tax professional before filing these back tax returns.
Submissions from taxpayers that present higher compliance risk will be subject to a more thorough review and potentially subject to an audit, which could cover more than three tax years.
IRS wants people back in the system
This program which helps bring people back into the tax system will be open for an indefinite period until otherwise announced. IRS will note this program and to the well runs dry.
The program is similar to the 2011 program in many ways, but with a few key differences. There is no set deadline for people to apply.
The terms of the program could change at any time going forward.
The offshore penalty has been raised
Under the current OVDP, the offshore penalty has been raised to 27.5 percent from 25 percent in the 2011 program.
The reduced penalty categories of 5 percent and 12.5 percent are still available.
Call us for free tax consultation today and speak directly to offshore bank account experts. Our calls are under attorney-client privilege if requested.
You can Skype us as well password freshstarttax.
by Fresh Start Tax | Jan 18, 2013 | Owe Payroll Taxes, Trust Fund Tax / Payroll Taxes
Owe Back Taxes, Payroll or Trust Fund – New Settlement Program – Former IRS Agents 1-866-700-1040
If you owe back taxes including payroll or trust fund taxes call us today and find out about the new settlement program offered by Internal Revenue Service.
Fresh Start Program
This new program is called the fresh start program instituted by IRS approximately 6 months ago.
It gives taxpayers who owe back tax a fresh opportunity to go ahead and settle their tax debt with the IRS. The fresh start program specifically addresses installment agreements, federal tax liens and the IRS settlement procedure called the offer in compromise.
No matter how much you owe the IRS there are different programs and tax options that are available for you.
Contact us today and speak directly to a tax attorney, CPA or former IRS agent, manager, or former IRS instructor.
You will be afforded a free tax consultation and you will be hearing the truth about the tax debt that you owe Internal Revenue Service.
With the new settlement program you will have to submit to IRS a financial statement that will have to be fully documented and you will have to make sure all your tax returns are current and up-to-date.
If you owe back payroll tax and you are currently in business it is in your best interest to start making current tax deposits and make sure all your current 941s are filed and up-to-date with Internal Revenue Service .
When the IRS knows that a corporation or entity is in current compliance with monthly FTD depositories they are much more likely to work with the company or said corporation.
Regarding the trust fund penalty of IRS
If the IRS has sent you form 2751 or has already sets up the trust fund penalty against you there are other options that you have is well.
If you’re in the process of being assessed for the trust fund penalty find out below the guidelines and the benchmarks of who IRS determines may be responsible for the tax.
Most TFRP cases involve officers of corporations.
However, a responsible person may be one or more of the following:
1. an officer or employee of a corporation
2. a member or employee of a partnership
3. a corporate director or shareholder
4. a related controlling corporation
5. a Payroll Service Provider (PSP)
IRS will also require form 4180 to be completed by every officer of the Corporation. For review of that form you can go to our website or our the homepage under IRS forms. You can click on and download form 4180.
As a former IRS agent that was one of the key forms that were used to determine the trust fund penalty responsibility
Contact fresh start tax today at 1-866-700-1040-and speak directly to an attorney, CPA and/or former IRS agent or manager.
We are rated A+ by the Better Business Bureau and we have worked thousands of cases.
We will go over all your tax options with you and we will make sure you go through this process worry free.
Owe Back Taxes, Payroll or Trust Fund – New Settlement Program – Former IRS Agents
by Fresh Start Tax | Jan 16, 2013 | Owe Payroll Taxes
Owe Back Tax – Railroad Retirement, Excise, Payroll Taxes – Former IRS Agents
If you will owe back payroll taxes, 941 taxes, or trust fund taxes, railroad retirement or excise tax call Fresh Start Tax LLC today and we can offer you a free consultation on how to completely resolve this matter. We are tax experts in this area.
On staff are tax attorneys, CPAs, and former IRS agents and appeals officers. We have over 205 years of professional tax experience in over 60 years of working directly for the IRS in the local, district, and regional offices of the Internal Revenue Service.
Whether you are in business or just worried call us today to hear the best advice on how to bring your case to a peaceful resolution.
Payroll taxes,Excise and Railroad Retirement Taxes are an IRS priority
IRS especially considers payroll taxes part of the trust fund tax family. IRS considers these payroll taxes a priority since the taxes are really not a direct tax but monies that are held in trust by a company or corporation that has not been turned over IRS. So the highest priority is given collecting trust fund money.
Good Advice
If you are currently in business the best advice we can give you being former IRS agents is to make sure you are at least current for the week, month or current quarter. When IRS sees that your current they are more than likely to offer you a payment plan.
Payroll Taxes in Trust Fund Cases
It also should be known that these payroll taxes spawn off trust fund taxes . The Trust Fund tax is a result of nonpayment of 941 payroll taxes.
As a result IRS will impose under section 6672 of the IRC code an assessment against those responsible for paying the payroll taxes. This trust fund tax comprises of all the withholding in one half of the employee Social Security.
The responsible persons are not responsible for the employers part of the Social Security, the penalties, the interest or the unemployment taxes.
The position of the IRS
To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.
The Trust Fund Recovery Penalty
These taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.
The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business. The business does not have to have stopped operating in order for the TFRP to be assessed.
Responsible for the Trust Fund Cases
The Trust Fund may be assessed against any person who:
a. is responsible for collecting or paying withheld income and employment taxes, or for
b. paying collected excise taxes, and
c. willfully fails to collect or pay them.
A Responsible Person
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes.
This person may be:
1. an officer or an employee of a corporation,
2. a member or employee of a partnership,
3. a corporate director or shareholder,
4. a member of a board of trustees of a nonprofit organization,
5. another person with authority and control over funds to direct their disbursement, or
6. another corporation or third party payer.
Willfulness for Trust Fund
For willfulness to exist, the responsible person:
a. must have been, or should have been, aware of the outstanding taxes and
b. either intentionally disregarded the law or was plainly indifferent to its requirements.
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness.
How IRS conducts there investigation
You may be asked to complete an interview ( form 4180 can be found on our website )in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.
Figuring the Trust Fund Amount
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
a. The unpaid income taxes withheld, plus
b. The employee’s portion of the withheld FICA taxes.
For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the Trust Fund
If the IRS determines that you are a responsible person, IRS will provide you a letter stating that we plan to assess the TFRP against you. ( Trust fund recovery penalty )
You will have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal. The letter will explain your appeal rights.
Caution
Once the IRS asserts the trust fund penalty, IRS can take collection action against your personal assets. If these taxes are not paid IRS has the right to send out bank and wage levy garnishments as well as filing the federal tax lien.
Remember if you owe back taxes including the railroad retirement, excise or payroll taxes is in your best interest to contact IRS before they start any action against you.
Owe Back Tax – Railroad Retirement, Excise, Payroll Taxes – Former IRS Agents
by Fresh Start Tax | Jan 16, 2013 | Income Tax Preparation
Office in the Home Tax Deduction – New Announcement 2013
IRS has a simplified option that many owners of home-based businesses and some home-based workers may use to figure their deductions for the business use of their homes. And it is about time!
In tax year 2010, the most recent year for which figures are available, nearly 3.4 million taxpayers claimed deductions for business use of a home (commonly referred to as the home office deduction). This is also an area that IRS tends to audit a lot because of the widespread abuse for the office in the home deduction.
The new optional deduction.
The new optional deduction is capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and record keeping burden on small businesses by an estimated 1.6 million hours annually. iI will also cut down on the number of audits that IRS will conduct for the office in the home deduction.
The new option provides eligible taxpayers an easier path to claiming the home office deduction.
They are generally required to fill out a 43-line form (Form 8829) often with complex calculations of allocated expenses, depreciation and carryovers of unused deductions. Taxpayers claiming the optional deduction will complete a significantly simplified form.
Though homeowners using the new option cannot depreciate the portion of their home used in a trade or business, they can claim allowable mortgage interest, real estate taxes and casualty losses on the home as itemized deductions on Schedule A.
These tax deductions need not be allocated between personal and business use, as is required under the regular method.
Also, business expenses unrelated to the home, such as advertising, supplies and wages paid to employees are still fully deductible.
Current Restrictions
Current restrictions on the home office deduction such as the requirement that a home office must be used regularly and exclusively for business and the limit tied to the income derived from the particular business, still apply under the new option.
The new option.
The new simplified option is available starting with the 2013 return most taxpayers file early in 2014.
Further details on the new option can be found in Revenue Procedure 2013-13, posted today on IRS.gov. Revenue Procedure 2013-13 is effective for taxable years beginning on or after January 1, 2013, and the IRS welcomes public comment on this new option to improve it for tax year 2014 and later years.
by Fresh Start Tax | Jan 16, 2013 | Income Tax Preparation
Tax Preparation, Back Tax Years – Oakland Park, Wilton Manors, Pompano – Former IRS Agents
Have former IRS agents prepare your tax return.
Fresh Start Tax LLC is a full service tax firm. We have 206 years of professional tax experience in over 60 years of working directly for the Internal Revenue Service and the local South Florida offices.
As former IRS agents we worked as former auditors, revenue agents, revenue officers, appeals officers and IRS tax instructors.
You will have your tax returns prepared by CPAs and/or former IRS agents and managers and instructors who know all the latest tax laws and will make sure that you pay the lowest amount of tax allowed by law.
Fresh Start Tax believes and building long-term relationships with their clients.
You can come by our office for free tax consultation and is our normal policy we will review the last three years of your tax returns to make sure that you had paid the lowest amount allowed by law.
We also specialize in tax planning and have an array of different financial services. We are available year-round for all our clients.
Back Tax Years
If you for any reason whatsoever have not filed the last couple years or for multiple years tax returns,contact us today and we will prepare all your back tax returns and work out a tax settlement with IRS.
Whether you have all your tax records are not, we are real tax pros in tax reconstruction of back tax returns.
After an extensive background with Internal Revenue Service we can prepare accurate tax return. So do not fret nor worry about the back years, we can handle this so you can go through life worry free.
Tax Preparation, Back Tax Years – Oakland Park, Wilton Manors, Pompano – Former IRS Agents
