by Fresh Start Tax | Dec 26, 2012 | Abatements
Get Rid of IRS Penalties – Remove, Eliminate IRS Penalties – Former IRS
To get rid of, remove, or eliminate IRS penalties there are very specific guidelines to make this happen and to have these penalties gone.
It is critical you met the criteria found under the reasonable cause section of the Internal Revenue Manual. Remember each situation is unique and there are no two cases the same.
You can find on our website a complete list of reasonable cause factors that exist and a working outline to create your own claim for abatement of penalties and interest.
Please go to our homepage and click on Abatement of Penalties.
Listed below are the facts about reasonable cause.
Reasonable Cause to get rid of, remove, eliminate IRS Penalties
IRS Reasonable cause is based on all the facts and circumstances in each situation and allows the IRS to provide relief from a penalty that would otherwise be assessed.
Reasonable cause relief is generally granted when the taxpayer exercised ordinary business care and prudence in determining their tax obligations but nevertheless failed to comply with those obligations.
Equitable Treatment
In the interest of equitable treatment of the taxpayer and effective tax administration, the non-assertion or abatement of civil penalties based on reasonable cause or other relief provisions provided in this IRM must be made in a consistent manner and should conform with the considerations specified in the IRC.
Treasury Regulations (Treas. Regs.), Policy Statements, and IRM Part 20.1, Penalty Handbook determine these cases.
IRS reasonable cause relief is not available for all penalties; however, other exceptions may apply.
Exercising Ordinary Care
For those penalties where reasonable cause can be considered, any reason which establishes that the taxpayer exercised ordinary business care and prudence, but nevertheless was unable to comply with a prescribed duty within the prescribed time, will be considered.
When IRS is considering the information provided in the following subsections, remember that an acceptable explanation is not limited to those given in IRM 20.1.
Penalty relief may be warranted based on an “other acceptable explanation,” provided the taxpayer exercised ordinary business care and prudence but was nevertheless unable to comply within the prescribed time.
The wording used to describe reasonable cause provisions varies.
Some IRC penalty sections also require evidence that the taxpayer acted in good faith or that the taxpayers failure to comply with the law was not due to willful neglect. See specific IRM 20.1 sections for the rules that apply to a specific IRC penalty section.
Taxpayers have reasonable cause when their conduct justifies the non-assertion or abatement of a penalty.
Keys to successful abatement’s:
Each case must be judged individually based on the facts and circumstances at hand. Consider the following in conjunction with specific criteria identified in the remainder of this subsection:
1. What happened and when did it happen.
During the period of time the taxpayer was non-compliant, what facts and circumstances prevented the taxpayer from filing a return, paying a tax, and/or otherwise complying with the law?
2. How did the facts and circumstances result in the taxpayer not complying.
How did the taxpayer handle the remainder of their affairs during this time.
3. Once the facts and circumstances changed, what attempt did the taxpayer make to comply.
Reasonable cause does not exist if, after the facts and circumstances that explain the taxpayer’s non-compliant behavior cease to exist, the taxpayer fails to comply with
Reasonable cause does not exist if, after the facts and circumstances that explain the taxpayer’s non-compliant behavior cease to exist, the taxpayer fails to comply with the tax obligation within a reasonable period of time.
Get Rid of IRS Penalties – Remove, Eliminate IRS Penalties – Reasonable Cause
by Fresh Start Tax | Sep 25, 2012 | Abatements, FBAR
FBAR – How to get Rid of FBAR Penalties – Fresh Start Tax L.L.C – FBAR Penalties & Representation
There is fear when FBAR is mentioned. Disclosure, criminal, money and penalties are words attached with FBAR.
Many taxpayers are stuck as to whether to file or not.
My rule of thumb as a former IRS Agent, I recommend you find the IRS before they find you.
FBAR is here to stay and FBAR is becoming the beast of the IRS.
So much so that FBAR generated over $5.5 billion in Revenue to the Feds over the past couple years.
Not only is the Fed collecting the taxes but the IRS penalties will choke a horse. Part of the fear with taxpayers coming forward is the fear of not only paying the tax but also paying the penalties as well and having the money to do so.
It is not easy to get FBAR Penalties removed or abated because the IRS has set a tone and a theme of “just deny the claim.” The IRS will tell the IRS Auditing Revenue Agents to just disallow all penalty abatement claims unless the taxpayers fight for the abatement. A taxpayer must fight to have FBAR penalties abated.
What is the FBAR Filing Criteria
In order to determine whether or not the FBAR is required, all of the following must apply:
1. The filer is a U.S. person;
2. The U.S. person has a financial account(s);
3. The financial account is in a foreign country;
The U.S. person has a financial interest in the account or signature or other authority over the foreign financial account; and,
a. The aggregate amount(s) in the account(s) valued in dollars exceed $10,000 at any time during the calendar year.
The IRS code as it relates to FBAR Penalties – Its the Examiner Discretion
- The IRS tax examiner may determine that the facts and circumstances of a particular case do not justify asserting a penalty. There is tremendous discretion the examiner has on these case.
- If there was an FBAR violation but the examiner determines that a penalty is not appropriate, the examiner should issue the FBAR warning letter, Letter 3800.
- When a tax penalty is appropriate or justified , the IRS has established penalty mitigation guidelines to aid the examiner in applying penalties in a uniform manner.
- The IRS tax examiner may determine that a penalty under these guidelines is not appropriate or that a lesser penalty amount than the guidelines would otherwise provide is appropriate or that the penalty should be increased (up to the statutory maximum). The examiner must make such a determination with the written approval of the examiner’s manager and document the decision in the work papers.
- Factors to consider when applying examiner discretion may include, but are not limited to, the following:
- Whether tax compliance objectives would be achieved by issuance of a warning letter;
- Whether the person who committed the violation had been previously issued a warning letter or has been assessed the FBAR penalty;
- The nature of the violation and the amounts involved; and,
- The cooperation of the taxpayer during the examination.
- Given the magnitude of the maximum penalties permitted for each violation, the assertion of multiple penalties and the assertion of separate penalties for multiple violations with respect to a single FBAR form, should be considered only in the most egregious cases.
Did you know that the the FBAR penalty is calculated not on your account earnings, but rather, on your account value?
As an example, if you have an account that is worth $1,000,000, the IRS, for one year, can assess a $500,000 FBAR penalty.
For two years, the FBAR penalty could be equal to the amount of the account. You see, the IRS is not limited to just two years, the IRS could potentially assess the FBAR for 6 or more years.
This is the very reason taxpayers need professional representation for both the reporting , filing and for the abatement of penalties and interest.
So you can see the FBAR penalty can be particularly devastating. So you need great professional tax advice on how to best deal with your unique and personal tax situation.You should seek the counsel of a tax attorney.
If you call Fresh Start tax LLC 1-866-700-1040 and speak directly to our FBAR tax excerpts you can get the best counsel available. All initial consultations are free of charge.
You only pay us if we begin work.
Go to our home page, on the left side you will find Penalty Abatement’s, open that box and you will find a very comprehensive list of reasons IRS will accept as reason cause.
Call us today for a free tax consult. 1-866-700-1040
by Fresh Start Tax | Jul 24, 2012 | Abatements, FBAR, IRS Penalties, Tax Lawyer, Tax Settlements
FBAR Penalties – Remove, Settle – FBAR Tax – Former IRS, Attorneys – FBAR Tax Experts – FBAR Consultants
We are a IRS tax specialty firm. We tax experts in IRS matters including FBAR.
Let our experience work for you. We taught IRS tax Law.
We have a combined 205 years of professional tax experience and over 60 years of direct IRS tax experience in the local, district and regional offices of the Internal Revenue Service.
We have been practicing Tax Law since 1982 and we are “A” rated by the BBB.
On staff are Former IRS Appeals Agents and Tax Attorneys who are tax experts in matters of Penalty abatement and removal.
We have been settling cases with the IRS since 1982. We know all the tax policies and tax procedures because we taught Tax Law at the IRS.
Call us for a no cost consult and hear your options, 1-866-700-1040.
FBAR Penalties, procedures and applications.
The IRS has been delegated authority to assess FBAR civil penalties. There are civil penalties for negligence, pattern of negligence, non-willful, and willful violations. Each case is different and the results vary from cases to case.
IRS penalties are be asserted only to promote compliance with the FBAR reporting and record keeping requirements.
In exercising IRS discretion, tax examiners consider whether the issuance of a warning letter and the securing of delinquent FBARs, rather than the assertion of a penalty, will achieve the desired result of improving compliance in the future. We hope!
FBAR civil penalties have varying upper limits, but no floor.
The IRS audit examiner discretion is necessary because the total amount of penalties that can be applied under the statute can greatly exceed an amount that would be appropriate in view of the violation. You must hope the tax examiner is fair and uses good judgement.
IRS tax examiners are expected to exercise discretion, taking into account the facts and circumstances of each case, in determining whether penalties should be asserted and the total amount of penalties to be asserted.
Because FBAR penalties do not have a set amount, IRS has developed penalty mitigation guidelines to assist examiners in the exercise of their discretion in applying these penalties.
The FBAR mitigation guidelines are only intended as an aid for the examiner in determining an appropriate penalty amount.
The IRS tax examiner must still consider whether a warning letter or a penalty amount that is less than what would be called for under the mitigation guidelines would be more appropriate given the facts and circumstances of a particular case.
FBAR penalties are determined per account, not per unfiled FBAR, for each person required to file.
IRS penalties apply for each year of each violation.
As noted above, however, examiners are expected to exercise discretion, taking into account the facts and circumstances of each case, in determining whether penalties should be asserted and the total amount of penalties to be asserted.
FBAR Penalties, Remove, Settle, FBAR Tax, Former IRS, Attorneys, FBAR Tax Experts ,FBAR Consultants
by Fresh Start Tax | Jul 10, 2012 | Abatements, Back Taxes, Florida Sales Tax, Tax Audit, Tax Lawyer, Uncategorized
State of Florida Tax Audit 1-866-700-1040
Let our years of government experience be your best friend,
We know the systems and the settlement formulas.
Hire true tax audit experts.
If the State of Florida Department of Revenue is auditing you call us for a no cost professional tax audit consult. 1-866-700-1040.
We can review all the tax audit procedures and help you through the process of the State of Florida tax audit.
We have handled thousands of tax audits and collection clients since 1982.
We are “A” plus rated by the BBB.
We are comprised of Board Certified Tax Attorneys, Lawyers and Former Agents that have over 60 years of direct government experience.
As a tax practice we have over 205 years of working directly on State and Federal Tax cases collection and tax audits.
We were former tax instructors and taught Tax Law.
Why Are Taxpayers Audited by the State of Florida Department of Revenue:
1. Enforce Florida tax laws uniformly,
2. Deter Tax Evasion, ( you also may have been turned in by a former employee, spouse or other )
3. Promote voluntary compliance on all levels,
4. Find tax cheats and criminally prosecute willful failure to file and pay.
With the State of Florida in need of Revenue, the Florida public will see an ongoing rise of tax audits across the board.
With the State sophisticating and updating their tax computer system, they will be able to better track businesses not paying or filing tax returns.
Being Former Agents we know exactly how to fight and win back tax money to minimize your damages.
Call us for a no cost consult. Do not be worried but fight back with experience.
TAX AUDIT – State of Florida – Tax Problem Help – Attorneys, CPA’s, Former Agents – State Tax Representation
by Fresh Start Tax | Jun 28, 2012 | Abatements, FBAR, IRS Tax Problem, Tax Lawyer, Tax Returns, Tax Settlements, Uncategorized
With the aggressive position of the IRS on FBAR cases and the the new federal funding given to the IRS, the Service is going to ramp up a full force major attack on all FBAR cases.
The IRS has been training new Revenue Agents to have become ROBO-FBAR AGENTS to scare the taxpayers into submission and full tax compliance.
It has worked so far.
The commissioner of the IRS announced the IRS has collected over $5 Billion and much more is expected to come. Fear is a great motivator.
With this said, if currently you have professional tax needs in this area call us today for a free tax consult.
Speak directly with Board Certified Tax Attorneys, Tax Lawyers, CPAs and Former IRS Agents who are tax experts in the field of FBAR tax settlements, tax negotiations. We can answer all your questions with a no cost first consult.
What is new with FBAR
The standard penalty was recently increased from 25 percent to 27.5 percent.
In December 2011 the IRS issued FS-2011 that appeared to soften their attitude and provided that penalties will not be imposed in all cases. Check with us and see if you qualify for this.
Taxpayer (s) that remain out of compliance will likely eventually show up on the IRS radar screen. With IRS cutting more deals with countries and with new tax treaties being developed with new countries every day, FBAR will become a daily topic within the IRS because of the sheer volume of revenue it brings in.
New Revenue Agents Groups within the IRS have been formed with many Agents currently being trained simply to work these FBAR cases.
It should also be known these are highly skilled agents working these case.
If a taxpayer is notified the IRS is seeking FBAR info, it is vitally important they seek out legal representation.
Many times the IRS will play the criminal card.
On large dollar cases, Agents have the ability to make a criminal referrals to CI if the Agent feels that tax fraud is involved.
The IRS post lists on their website of all their current convictions.
Innocent Taxpayers with Compliance Problems
Many of our clients/taxpayers come from places all over the world.
Most do not face exposure to criminal tax issues.
Criminal tax problems typically involve intentional actions to hide the ownership of assets and income such as offshore trusts, pure and out right fraud and shell- type companies.
Most, about 95 % of our clients have simply failed to file FBARs, some have not filed tax returns for many years and these taxpayers do not owe any U.S. tax due to foreign tax credits as they pay higher rate foreign tax. Most are simply unaware or uninformed.
Reasonable cause and relief from penalties
There are a array of reasons the the IRS abates penalties and interest. There is a long list found on our website.
We usually go over the fact patterns of each individual case and develop a tax strategy for a successful abatement of penalties and interest.
On staff is a Former IRS Appeals Agent who over his 35 year career at IRS has probably worked more Abatement case than any I know.He exclusively works our abatement cases.
We handle all FBAR Cases, Tax Settlements, Negotiations. We can file all unfiled tax returns.
We are compromised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents
We are true FBAR Tax Experts, call us today. 1-866-7001-040
Thank you.
by Fresh Start Tax | Jun 27, 2012 | Abatements, Back Taxes, Expatriate Tax, FBAR, Income Tax Preparation, IRS Tax Problem, Representation, Tax Lawyer, Tax Returns, Tax Settlements
The IRS is already starting to bear down very hard on Ex-Pats and there late, past due and or delinquent tax returns.
The IRS has dedicated so much more revenue to oversees tax collections and tax audits. These groups of agents are called Revenue Agents. They are currently being trained to go after easy tax money and easy tax targets, and those are the Expats. they have been well trained and also experienced for fraud indications.
The IRS has finally wised up and realized that instead of going after the deadbeats who lives within the boundaries or confines of this great country, the new found jackpot is where the money and the leverage is sitting and that my friends is the IRS new target, Ex Pats and FBAR.
Many of the Ex-Pats who have not filed were unaware of the filing issue or the tax laws. I would say over 50% of the cases we work are due to the lack of knowledge and ignorance of the law. If that is the case, we can get penalties and interest, removed or abated for reasonable cause.
How we handle Ex Pat cases regarding late, past due, back or delinquent returns:
We send to IRS a Power of Attorney indicating that the IRS is not to talk or contact the taxpayer.
We then secure the necessary documentation from our client and secure internal records that the IRS has in house. IRS stores all income information for 7 years.
In the case of lost records we file reconstructed tax returns. We have filed so many reconstructed tax returns these never become a problem. A good deal of taxpayers who have lost there records are afraid to file because many years have gone by. Believe it or not IRS is happy to get the returns and get you back in tax compliance.
Keep one thing in mind, if the IRS sends you a letter about filing your late, back, past due or delinquent tax returns and you do not respond,the IRS has the right to file for you and this a called a substitute for return. ( SRF )
The bottom line, we can file all your tax returns with or without records and also settle your back IRS tax debt.
We are comprised of Tax Attorneys, CPA’s and Former IRS agents with over 60 years of professional tax experience.
Call us today for a no cost consult. 1-866-700-1040
Call us and see how easy this can be. You can do this worry free!
