by Fresh Start Tax | Sep 27, 2012 | Back Taxes, FBAR, Tax Lawyer
We are comprised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents. We have over 205 years of professional tax experience and over 60 years working directly for the IRS.
Why use us? We can take away your worry through our experience at the IRS
We taught Tax Law at the IRS and we are familiar with tax policies and tax settlements.
No cost consults, 1-866-700-1040. We are FBAR and Ex Pat Experts
All the countries are going down like domino’s including Japan.
First it was UBS and yes even Lichtenstein. Nobody thought Lichtenstein.
Liechtenstein finally informed on their Bank Clients on the U.S. Tax Evasion Request to report on certain foreign accounts.
Liechtenstein has told there American clients of the principality’s oldest bank that U.S. authorities have requested their account data as they widen a tax probe for potential tax evasion and potential tax fraud. Investors are scrambling.
Accounts at’ Liechtensteinische Landesbank AG (LLB)” that contained at least $500,000 at any time since the beginning of 2004 are covered by the information request, according to a May 30 letter sent to a client by the principality’s tax authority. We have no idea how many accounts are included on this request however the word on the streets, “thousands”.
Many were set up by financial planners and attorneys who are now nervous about the request and investigation.
Liechtenstein facilitated the group request from the U.S. by amending a tax law in March.
Liechtenstein’s second-biggest bank, also known as LLB, is one of 11 financial firms, including Credit Suisse Group AG (CSGN) and Julius Baer Group Ltd. (BAER), being investigated as part of a United States probe of offshore tax evasion.
The stakes for Swiss banks were raised after the Department of Justice indicted Wegelin & Co. on Feb. 2 for allegedly helping customers hide money from the Internal Revenue Service.
The IRS is taking a very aggressive approach to collect monies on FBAR and are funding huge amounts of revenue to go after the deep foreign taxpayers pockets of monies.
IRS results up to this point.
So far the US has been very successful and collected north of $5 Billion large in the first three years of the FBAR Program. The IRS has just been funded another $500,000 million by the Obama administration to beef up the IRS enforcement arm and much of money will be dedicated to non-filers as well as FBAR compliance.
The Progress
Offshore banks must begin complying with the Foreign Account Tax Compliance Act and the Internal Revenue Service has been getting cooperation from other nations. Japan became one of the newest country to pledge its cooperation with the U.S.
The FATCA
FATCA requires foreign banks to disclose the identities of all account holders who are also U.S. taxpayers. In many countries, such disclosure violates that nation’s bank secrecy laws. Banks and financial institution have been caught in the middle. After all, they make loads of money on the clients. However, if the financial institutions do not comply with the IRS requests and the new FATCA law, they will be violating the law.
Most of the developed nations have indicated they will cooperate fearing US reprisal.
That means banks and financial institution in many countries will now have to identify and report Americans holding accounts. The current trend for bank compliance seems to be trending to eliminate the hassle by simply closing foreign accounts.
Japan is the latest country to indicate its willingness to cooperate. That means that U.S. taxpayers with unreported accounts in Japan could soon have IRS tax issues. Foreign accounts are legal, the penalties for not reporting those accounts are very expensive and could include prison time. Find the IRS before they find you.
Foreign bank and financial accounts such as CD’s, brokerage accounts, most retirement accounts must be reported annually to the IRS on Report of Foreign Bank and Financial Account, more commonly known as an FBAR. You can find the Form on our website.
Failure to file FBARs can be criminal and result in penalties of $100,000 or 50% of the highest account balance for each year the account remains undisclosed.
If you have an account in Japan that has not been properly reported call us today to find out your options. 1-866-700-1040. You may want to file a ” quiet disclosure”.
by Fresh Start Tax | Sep 24, 2012 | Back Taxes, IRS Tax Problem
The IRS Financial Statement, the 433-A and 433-F ” is ” the most important factor in determining your financial future with the IRS.
IRS will determine the resolution of your case based completely on the forms and the documentation that goes along with the form.
If your case is assigned to the ASC Unit, that is the 1-800 groups, the IRS will require a 433F. The information the IRS requests is not as detailed. You will be faxing the information to a agent that can be located anywhere in the country. The IRS uses 1-800 switching centers to get your call to the first available agent. Calls can be taken up to 8:00 pm EST.
The 433A on the other hand is used exclusively by the local IRS offices and are used by local Revenue Officers. The local IRS agent will go into extensive detail in reviewing your 433A. Professional help is a must at this point.
Both forms, the 433A, and the 433F require complete documentation on any number that is placed on the form with the exception of food, clothing…….. IRS will follow the National Standards Test. For a comprehensive explanation of the National Standards call us directly.
The following is a list of tax tips to apply to the turning in of a IRS financial statement.
1. Without question, it is best to have a tax professional prepare and explain your financial statement to the IRS. Unless you have a very simply case I would not recommend you the taxpayer represent yourself when this form is required.
As a former IRS agent I would love it when the taxpayers were unrepresented. Taxpayers will believe anything the IRS agents says. Taxpayers are unaware that they have the right to Appeal the findings of the Agent working on there case. Many times taxpayers are hustled into situations. Taxpayers sign agreements in the pure fear of the IRS.
2. Be completely truthful. The normal IRS Agent is skilled to detect deception so whatever you do, tell nothing but the truth. IRS will match your bank statements, cost of living and your tax return to get a feel to make sure your financial statement is correct and accurate.
3. If any expenses are high you want to have a explanation of why expenses are out of the ordinary or normal range. Have documentation to support your expenses. Many times taxpayers can and will have excessive medical falling out of the National Standards.
Have detailed documentation available to prove your case. You want to have the bill and the receipt showing, PAID.
4. Understand that IRS will use the National Standards Tests. IRS has a National Standards Tests in every area of the country to apply towards expenses claimed on the 433A or 433F. The National Standards can be found on our site.
5. When the IRS asks for values for your assets use distrait values as if you had to sell the assets in an emergency situation.
Whatever you do, do not inflate the value of your assets.
6. IRS is only interested in two things, your assets and your expenses. Your other debt is of little interest to the IRS.Most of the time, IRS will not allow credit card debt, college tuition, taking care of grandma as a necessary expense.
7. Your financial statement MUST MAKE SENSE. Many times taxpayers expenses exceed their income. If this is your case you must supply documentation as to how you are paying your bills without have income to cover the expenses.
8. Make sure all your tax returns are filed. IRS will conduct a full compliance check and will not close your case until all tax returns are filed.
9. Make sure your withholding is up to date. Make sure to change your withholding or ES payments to make sure you will not owe tax in the current year.
10. Have a plan of resolution. Tell the IRS what you want and what you can afford. Do not be bullied by the IRS, you have right and can fight back.
Do not be afraid to be bold, there is an appeal process, however your request must be reasonable. To find out more appeal process call us today, 1-866-700-1040.
by Fresh Start Tax | Sep 23, 2012 | Back Taxes
Do not let the IRS get away with filing your late, unfiled or past due tax return.
Simply do not be bullied by them.
IRS can and will file your back individual or payroll tax returns for you at there discretion.
You can let Former IRS agents who know the system fight back and win!
IRS has the right to file back tax returns under 6020B of the IRS Code however you can stop or undo that process today. 1-866-700-1040.
If you have not filed your back tax returns whether it be personal or business the IRS prepares thousands and thousands of back tax returns under 6020B each year.
Both the local offices as well as the Ogden Utah Campus of the IRS will prepare your back return and make sure you pay the highest amount possible. IRS will dig for the highest amount possible and send you a tax assessment.
If you do not follow up on the IRS notice or bill the IRS will follow that up with the Filing of a Federal Tax Lien or a IRS Federal Tax Levy.
I know this because I was a former IRS agent and know the process well. We know the exact process to reverse the IRS assessment and get you immediate tax relief.
The IRS letter that IRS sends the taxpayer goes exactly like this:
IRS to the taxpayers or business: Actual Letter
Dear Taxpayer:
We have reviewed your tax records and found no record of you filing the tax returns identified above.
We believe you are liable and have prepared a tax return for the tax period/s in question. If you agree that the tax liability shown is correct, please sign each form and return it to us. If you do not agree with our findings, you have 45 days (90 days if this letter is addressed outside the United States) to do one of the following:
1. Prepare and sign tax returns which you believe show your correct tax liability and return them to us (if you choose to file a Form 940 claiming a reduced rate of assessment you must attach a copy of the state certification showing the amount of contributions paid or the return may be processed at the standard unemployment tax rate of 6.2%); or
2. Mail us any additional information you would like us to consider; or
3. Request a conference.
WHAT WILL HAPPEN IF YOU DO NOT RESPOND TO THIS LETTER?
The Internal Revenue Code Section 6020(b) gives us the authority to prepare and file tax returns on your behalf. Therefore, if we do not hear from you within 45 days from the date of this letter (90 days if this letter is addressed to you outside the United States), we will process the enclosed tax returns that we have prepared for you.
You will then be billed for the amount of tax due, plus any additional penalties and interest. You need to check your records to ensure that all tax returns you are liable for have been filed.
Call us today and stop the IRS. We have the knowledge and expertise to get you the results you need. Do not be bullied by the IRS.
by Fresh Start Tax | Sep 21, 2012 | Back Taxes, Income Tax Preparation
If you have not filed your income tax return the IRS has the right to file your back tax returns under 6020 B of the IRS code.
This process is called the filing of a Substitute Tax Return. IRS files thousands of back tax returns each year under 6020B.
IRS filed your back tax return under IRC 6020(b)
IRC 6020(b) provides a way to prepare returns and secure assessments from non-filing taxpayers who:
- Have an open filing requirement,
- Do not file a return as required.
Internal Revenue Code 6020(b) is the authority given to the Commissioner of the Internal Revenue Service to prepare and process returns for non-filing business taxpayers.
Who has the authority to File Back Taxes for the Taxpayer
Delegation Order No. 182:
(Rev. 7), extends 6020(b) authority to Internal Revenue Agents;
a. Tax Auditors; Revenue Officers, GS-9 and above;
b. Collection Support Function Managers, GS-9 and above;
c. Automated Collection Branch Unit Managers,
d. GS-11 and above; Customer Service Collection Branch Managers,
e. GS-10 and above; and Tax Resolution Representatives, GS-9 and above.
IRS prepares thousands and thousands of tax returns for taxpayers that do not file back income tax returns.
The process of 6020B:
IRS has probably made an attempt to contact you and those attempts have failed.
Many times you may have moved and never received the mail. Whether you received a letter or not, if you fail to respond to the IRS, they will prepare your back federal income tax return for you under 6020B of the IRC.
You will need a very experienced professional tax help to resolve this tax problem. The Tax Firm working your case will need to file an original tax return and get the IRS to accept the tax return.
These cases at the time of this writing are being handled out of Ogden Utah Campus.
If you do not reply to them, they will plan to take enforced collect action to get the back taxes paid. They will file Federal Tax Liens and Federal Tax Levies.
HOW DOES IRS PREPARE YOUR BACK TAX RETURN
IRS has a collective data base of all income you have received from all companies, business over the past 7 years on the IRS data base system.
Anyone who has provided income information to them from a W-2 source or a 1099 source is kept on the IRS computers.
IRS keeps and records all this information on there master files or there CADE 2 computer system.
Every year social security numbers are matched against those W-2’s and 1099. If there is no tax return found, IRS sends out a series of letters asking for your tax return.
If a federal tax return is not filed, IRS will prepare a substitute for return, (SFR) based on the information they have in the IRS system. This is the 6020 B process.
When the IRS files,they will give all taxpayers the standard deduction, regardless of your itemized deductions. Then IRS adds in all the penalties and interest. The tax bill will be overwhelming and this will cause a huge tax problem. This amount is sometimes 80% north of what is usually owed.
HOW TO CORRECT THIS BACK INCOME TAX RETURN PROBLEM
Some times the income is correct, however the IRS will only give you the standard deduction. You should go to a tax preparer or Fresh Start Tax LLC to find out if IRS figured out the correct tax liability.
If the amount is incorrect and most of the time it is, have the tax preparer correct the error and send the tax returns to the IRS Ogden Campus.
It is in your best interest to contact IRS before they take the next steps of tax levies, tax garnishments or bank levies.
Our staff at Fresh Start Tax has been dealing with these Internal Revenue Code Section 6020b tax problems for over 60 years.
We deal in all tax problems and stop all future problems that go with this situation from happening. Call us today for a free consultation. 1-866-700-1040.
IRS filed your back income tax returns ? Have Former IRS Agent STOP the IRS today – Fresh Start Tax LLC
by Fresh Start Tax | Sep 21, 2012 | Back Taxes, Income Tax Preparation, Tax Returns
Former IRS Agents, Free Consults, We Know the System
We have many taxpayers walk into our offices that have not filed back tax returns for years and years. The question is always this,
“How many years should be filed if a taxpayer has not filed in years?”
That answer will vary from practitioner to practitioner and most tax preparers are afraid to answer the question but out of the IRS IRM comes the answer and how the IRS wants the Agents to deal with the tax problem of not filed tax returns.
Below is the Internal Revenue Manual on the subject.
This section discusses the procedures involved in handling non-filed returns per IRM
Substitute for return (SFR) and delinquent tax return procedures were developed to deal with taxpayers who do not file required back tax returns for the IRS.
The purpose of the procedures is to assess the correct tax liability by either:
a. Securing a valid voluntary tax return from the taxpayer (delinquent return), or
b. If securing a return is not possible, computing tax, interest, and penalties based upon information submitted by payers, or based on other available information (SFR).
Source of Cases for the agent
IRS, Tax Examiners and Revenue Officers encounter non-filers in several ways.
For example,
1. From related cases/spin-off examinations
2. As project cases
3. As referrals from other functions
Enforcement Period
Policy Statement 5-133 (P-5-133), IRM 1.2.14.1.18,
Delinquent returns—enforcement of filing requirements, discusses delinquent returns and the enforcement filing requirements.
The enforcement period is not to be more than six years.
However, the extent to which delinquency procedures will be enforced will depend upon the facts and circumstances of each case, and by reference to factors ensuring evenhanded administration of staffing and other Service resources. Enforcement for longer or shorter periods may be used when consideration has been given to:
1. The taxpayer’s prior history of noncompliance.
2. The existence of income from illegal sources.
3. The effect upon voluntary compliance.
The anticipated revenue in relation to the time and effort, required to determine tax due. Any special circumstances existing in the case of a particular taxpayer, class of taxpayer, or industry, or which may be peculiar to the class of tax involved.
IRS does have the ability on special cases to extend the period to file more back or unfiled tax returns. If a taxpayer is loaded with assets and have not filed multiple tax returns the IRS can and will go back more, but special circumstance must exist.
However, as a very general rule, 6 years of back filing is very safe.In cases were taxpayers are W-2 taxpayers and then losing tax refunds IRS generally accepts three years.
However please be advised you can lose valuable Social Security credits.
Call us and we can review your case. 1-866-700-1040
Have Not Filed Tax Return in Years + File 3 – 6 years of Back Tax Returns – Former IRS – Fresh Start Tax
by Fresh Start Tax | Sep 20, 2012 | Back Taxes, Income Tax Preparation, Tax Returns
Fresh Start Tax LLC , since 1982 and “A” rated by the BBB. Serving all of South Florida. 954-492-0088
You can have Former IRS Agents and Managers who worked out of the South Florida IRS offices prepare your tax returns. Over 60 years with the local South Florida IRS offices.
Also staffed with CPA’s and Former IRS Appeals Agents.
It is very important your find a very good tax preparer. A good tax preparer can save you money, audit proof your tax return and give you a solid tax plan for the future.
They are a very important part of your financial life. You should chose a person or firm that you can trust to give you rock solid financial advice while saving tax and can keep you from a IRS tax audit.
Tips to find a Tax Preparer:
After working for the IRS for 10 years and being a Former IRS Instructor I have seen the good, the bad and the ugly with income tax preparation.
Living in South Florida presents challenges if you are randomly selecting a tax preparer. People put up shingles with little or no training. Many of these so called tax practitioners take one or two class and they believe they are tax experts.
Personally, I would not go to any firm unless they have processed over one thousand tax returns.
I would recommend these tax tips in choosing your preparer.
1. Find a local company. It is very important you get to met the person or firm preparing your tax return.
2. You should want to interview the preparer and get a gut feeling about he /she and the office environment.
3. Ask how many tax returns they have prepared.
4. Ask about there accounting achievements as well as there formal training and degrees.
5. Find out how long they have been practicing in the local area.
6. Ask them if they made a mistake who pays.
7. Contact the BBB or the Internet and find out if there are any complaints.
8. Ask them about there fees, are there fees flat rated. How much is tax planning?
Cautions
9. If they promise you a bigger refund, run!
10. If they do not ask for your receipts and documentation,run.
Tax Preparer, Income Tax Preparation, Former IRS , Fresh Start Tax LLC, Miami, Ft.Lauderdale, South Florida
