by Fresh Start Tax | May 2, 2012 | Abatements, Back Taxes, IRS Tax Problem, Tax Help, Tax Lawyer
Do you have IRS Penalties and Interest piling up on your IRS tax bill?
If you want to hire true tax experts and tax professionals call Fresh Start Tax LLC 1-866-700-1040 to speak directly to either a Tax Attorney, CPA ‘s or Former IRS Agents and Managers.
We also have on our staff a former IRS Appeals Agent who has worked hundreds of abatement cases as a IRS Appeals agent.
IRS has tax provisions to get rid of, remove or abate penalties and interest if you have reasonable cause and can prove your claim.
Most taxpayers believe that writing a simple letter to remove IRS Penalties and Interest and poof, IRS be gone with them, however, this process is not so simple.
As a general rule, IRS looks for reasons to NOT accept the request for abatement because they are very lazy and do not want to process claims because it requires to much work. Sad but true.
Having been a former IRS Agent I can tell you this from experience and how other IRS Agents handled their cases. Like in any business some agents were very good and other not so good.
I tell most of my clients to usually expect our cases to go to appeals when fighting IRS penalties and interest. We are true experts in penalty abatement’s.
There is a specific format that the IRS goes through. The claims of abatement to rid yourself of IRS Penalties and Interest must be thorough, detailed and loaded with documentation.
You can look on our web site to examine the process more thoroughly.
Go to Tax Solutions on our home page and click go to Abate IRS Penalties and Interest.
IRS Provisions to get rid of, remove or abate IRS penalties and interest:
The number of electronic filing and payment options increases every year, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both.
The two different penalties you may face are the failure to file and the failure to pay. These are two of the larger penalties.
1. If you do not file by the deadline, you might face a failure-to-file penalty.This is a maximum of 25% if the return is 5 months late. It is critical even of you do not have the money to file a timely tax return.
2. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.
3. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
4. If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes.
5. If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure-to-pay penalty if the remaining balance is paid by the extended due date.
6. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
7. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.
Call us today to see if you qualify for an abatement today. Hear the truth.
by admin | Apr 3, 2012 | Back Taxes, IRS Tax Debt, IRS Tax Problem, Tax Help
If you are a TAX MASTERS client and need immediate tax help to resolve your IRS tax problem call Fresh Start Tax LLC. “A ” Rated by the BBB!
We will offer a free tax consult and a major discount. 1-866-700-1040. Do not be ripped off again!
TaxMasters is gone and left some major players holding the bag.
The writing was all over the wall on this one. The word on the street, the last of the big 3 to be taken down.With hundreds of complaints and AG filings everyone in the industry knew this was coming, it was only a matter when. You cannot falsely advertise and get away with it.
TaxMasters was one of the big three that advertised heavily on TV, Cable …… and it seems almost on every station.
The airwaves were full of tax attorney Patrick Cox telling people he could settle their tax debt for cheap. Thousands bought the pitchman’s adds and they are now all holding the bag.
The biggest loser on this was not the television show but CNN with a $2.6 million owed to them. Sad!
According to reports filed and Janet Novak, ” TaxMasters’ unsecured creditors are unlikely to see much, if any, cash. In its new filing, TaxMasters listed just $1.7 million in assets. Moreover, according to the Texas Attorney General, last Friday a Travis County Texas jury returned a $195 million verdict against TaxMasters and Patrick Cox, its founder and CEO, for 110,383 violations of the Texas Deceptive Trade Violations Act. Some $113 million of that total is a refund of client fees, and another $81 million is civil penalties. TaxMasters’ clients typically owe the Internal Revenue Service large amounts of back taxes they can’t pay and may be facing IRS enforcement actions, such as liens and levies. The Texas AG charged in its lawsuit that TaxMasters misled potential customers, both in its advertising and in its customer contacts, about its policies—for example, failing to disclose that it wouldn’t start work on a case until a customer paid in full for its services, even it meant missing important IRS deadlines.
According to TaxMasters’ restated first quarter 2011 financial report—the last quarter it has reported to the SEC—the company had $13.1 million in quarterly revenues, and spent $4.1 million on advertising during those three months. “The Company believes advertising is the engine that drives sales,’’ the report states. TaxMasters’ best known ads featured the red-bearded Cox assuring potential clients that his staff of tax pros, including former IRS agents, had helped “many good people just like you.”
The bottom line, large companies cannot manage all the work that comes in. There advertising dollars far exceeds there personnel to work these cases. Also, many of the calls TaxMasters received were based on deceptive advertising and offering to settle for pennies on a dollar. While true, few taxpayers get there cases settled.
So who got stuck footing the advertising bill?
In addition to CNN, TaxMasters’ 20 largest listed creditors include:
News Corp.’s Fox News Channel (owed $938,414);
Houston advertising firm Maxximedia (owed $1,326,676);
American Express (owed $679,497);
The Radio Network Westwood One, now a part of Dial Global (owed $676,000);
History Channel (owed $653,820);
MSNBC (owed $259,441);
Yahoo (owed $196,475);
Dial Global’s Weather Channel (owed $172,233);
The Discovery Channel (owed $136,850)
and Disney’s ESPN (owed $94,265).
If you have an IRS tax issue, owe back taxes, unfiled tax returns, tax problems, owe IRS – call us today to get your problem permanently resolved.
by admin | Mar 28, 2012 | Back Taxes, Income Tax Preparation, IRS Tax Problem, Representation, Tax Help
This comes as a great surprise to many expecting their IRS tax refund. The IRS sends a notice telling you they have used their right to offset to pay old debts such as State Tax Debts, Child Support or even Student loans.
If this happens to you I would suggest calling us at Fresh Start Tax, 1-866-700-1040 to permanently resolve your IRS tax matter and get tax relief.
Most taxpayers in this situation may qualify for an offer in compromise or a tax debt settlement. By calling our office we can find out if you qualify.
Here are the rules and regs regarding tax refunds that may be applied to offset certain debts
The Department of Treasury’s Financial Management Service, which issues IRS tax refunds, can use part or all of your federal tax refund to satisfy certain unpaid debts.
Facts you what to know about tax refund offsets:
1. If you owe federal or state income taxes, your refund will be offset to pay those taxes first. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will apply as much of your refund as is needed to pay off the debt and then issue any remaining refund to you if a tax refund is applicable.
2. You will receive a notice from the IRS if an offset occur. The offset will occur each and every year to the problem is resolved.
The tax notice will include the original refund amount, your offset amount, the agency receiving the payment and its contact information. If the information about the exist debt is incorrect, we suggest you contact them directly to resolve the problem.
3. If you believe you do not owe the debt or you are disputing the amount taken from your refund, you should contact the agency shown on the notice, not the IRS.
4. If you filed a joint return and you are not responsible for the debt, but you are entitled to a portion of the refund, you may request your portion of the refund by filing IRS Form 8379, Injured Spouse Allocation.
You should attach IRS tax form 8379 to your original Form 1040, Form 1040A, or Form 1040EZ or file it by itself after you are notified of an offset. Form 8379 can be downloaded from the IRS website at www.irs.gov.
5. You can file Form 8379 electronically. If you file a paper tax return you can include Form 8379 with your return, write “INJURED SPOUSE” at the top left of the Form 1040, 1040A or 1040EZ. IRS will process your allocation request before an offset occurs.
6. If you are filing Form 8379 by itself, it must show both spouses’ Social Security numbers in the same order as they appeared on your income tax return. You, the “injured” spouse, must sign the form.
You should not attach the previously filed Form 1040 to the Form 8379.
Send the Form 8379 to the IRS Service Center where you filed your original return only so the documentation may be matched.
7. The IRS will compute the injured spouse’s share of the joint return. Contact the IRS only if your original refund amount shown on the FMS offset notice differs from the refund amount shown on your tax return.
8. Follow the instructions on Form 8379 carefully and be sure to attach the required forms to avoid delays.
If you are looking for quality tax relief from a professional tax firm, call Fresh Start Tax LLC today.
by steve | Feb 27, 2012 | Back Taxes
File Back Tax Returns – Does the IRS Owe you Money South Florida – Miami, Ft. Lauderdale, Palm Beaches – Fresh Start Tax LLC
Make sure you file your back tax returns.
If you have not filed your back tax returns contact us today.
We are comprised of former IRS agents and managers who have over 60 years of direct working experience in the local South Florida Internal Revenue Service office.
We can file all your back returns and work out a tax settlement. Many people who do not file their back tax returns lose out on hundreds or thousands of dollars of tax refunds.
Did you lose out on a tax refund?
Over 70,000 taxpayers in the South Florida area are giving their money back to the IRS. Don’t that make you sick.
The statute of limitations is ticking. Over 70,500 South Floridians did not file their 2008 tax return and as April 17th rolls around the tax refunds are lost for good.
So, if you forgot to file your tax return in 2008 call us today and get your money back from the IRS plus interest.
I have seen hundreds of clients and former clients miss out on tax refunds for a variety of reasons. Many thought they were going to owe the IRS and were afraid to file their tax returns.
What is shocking, the average refund going back to South Floridians is approximately $700. Some losing out on thousands of dollars. In one case of a walk in client lost, $8750. Boy did that hurt.
That is a whooping $67 million dollars that goes back to the IRS because South Floridians forgot to file their tax returns.
Some Floridians may also have qualified for the 2008 Earned Income Tax Credit (EITC) for low- and moderate-income families. Taxpayers can file the form and still get the tax credit.
Call us today to get your refund before you lose out.
by steve | Jan 24, 2012 | Back Taxes, Installment Agreements
Need to make payments to the IRS on back taxes or need a payment agreement check out the information on the 5 rule so you will not be bullied by the IRS.
We are former IRS Agents who know all the tax policies and tax programs to get you through the IRS system for back taxes.
When taxpayers are calling the IRS to make payments or asking for a installment agreement to the IRS, they are looking for some help because they can not afford to pay their tax debt at the current time. When taxpayers make this call they should be prepared to be man handled and bullied by the IRS. IRS will basically tell you, it is our way or the highway. You can now tell them, not so fast, we want the 5 year rule application.
IRS does not want to set up a payment plan, installment agreement or a payment arrangement that best fits the needs of the taxpayer.
This is when the IRS gets very selfish and wants everything their way.
Do not be bullied by the IRS. Know the Law.
IRS will require what is called the National Standard Test on all your income and expenses. IRS puts everyone in a box and expects taxpayers to met the lifestyle the IRS wants.
The bottom line, this is always unreasonable. You do not have to put up with the hard line position taken by the IRS. You can fight back by asking for a 5 year rule application to make your payment agreement or to make payments in general.
Five Year Rule: All expenses may be allowed if:
Taxpayer establishes that he or she can stay current with all paying and filing requirements.
Tax liability, including projected accruals, can be paid within five years.
Expense amounts are reasonable
Agreements will be based on a taxpayer’s maximum ability to pay, i.e., how quickly a taxpayer can fully pay the tax liability. Do not automatically allow agreements based on the five-year maximum if expenses are unreasonable.
Reminder:
The Five Year Rule is not applicable to corporations, partnerships, LLCs where the LLC is identified as the liable taxpayer, or any BMF expenses.
Need to make payments to the IRS, need a payment plan or installment agreement, call us today.
by steve | Jan 24, 2012 | Back Taxes, IRS Payment Plans
IRS Payment Agreements, IRS Installment Agreements, Payment Plans – Making Payments to the IRS on your back taxes
After 10 years of working for the IRS and over 28 years of private practice do not expect the IRS do you any favors if you are seeking a IRS payment plan, installment agreement or a pay off plan. IRS will always do what is in their best interest and that is NEVER in your best interest.
Keeping that in mind and hire a good tax professional so you do not get bullied around.
If you are trying to get a Payment Agreement, Installment Agreement, Payment Plan with the IRS and you do not fit into the National Standards that the IRS insists on you will want to read about the one year rule.
Most taxpayers have no idea what they are doing when they call the IRS and want to set up a payment agreement, installment plan, or a payment agreement.
There are so many options available to them and that’s is why it is best to call a experienced tax professional.
There are five different types of agreements, payment plans and IRS will put you only into the agreement that they feel is best for the IRS.
The IRS is not looking for your best interest in this tax matter, they are only looking what is in the best interest of the federal government and as a result taxpayers get ripped off by not understanding all the rules that govern agreements.
With this now said there is a IRS one year rule that helps the taxpayer.
Most taxpayers when they call the IRS do not met the national standards tests for income and expenses. Something is always out of balance. IRS will say that is too bad and try to extract money from you that you just do not have.
You should be very familiar with the National Standards Test before calling IRS. You can check out more on our site.
The one year rule for payment plans or Installment agreements can work to help you.
One Year Rule: Insist in this and do not be bullied!!!
Taxpayers who cannot full pay their accounts within five years may be given up to one year to modify or eliminate excessive necessary expenses. By modifying or eliminating some conditional expenses, a taxpayer may be able to full pay the liability plus accruals within the five-year limit. This would enable a taxpayer to retain some conditional expenses.
Reminder:
The One Year Rule is not applicable to corporations, partnerships, Limited Liability Companies (LLC) where the LLC is identified as the liable taxpayer, or any Business expenses.
So when the IRS tells you your car payment is to high or your rent or mortgage is too much ask to speak to the supervisor and request the one year rule.
IRS Payment Agreements,Installment Agreements, Payment Plans call us for more information today.
