by Fresh Start Tax | Oct 2, 2013 | Back Taxes
IF The Internal Revenue Service has filed your back tax returns you can reverse the audit process by asking for a tax audit reconsideration.
the Internal Revenue Service filed a substitute for return because they found that you did not voluntarily submit a tax return to the IRS. As a result under 6020 B of the IRC the Internal Revenue Service can both file and assess taxes against you
When the Internal Revenue Service file your tax returns they will not be doing you a favor. You will be paying the highest amount of tax a lot by law. The Internal Revenue Service will grant you no extra dependence, no extra credits, no extra exemptions, and no extra expenses. These are just some of the penalties at Internal Revenue Service will enforce when you do not voluntarily file your back tax returns.
SO WHAT CAN YOU DO
FILE for a IRS Audit Reconsideration for Back Taxes
An Audit Reconsideration is the process the IRS uses to reevaluate the results of a prior audit where additional tax was assessed and remains unpaid, or a tax credit was reversed. If the taxpayer disagrees with the original determination he/she must provide information that was not previously considered during the original examination.
It is also the process the IRS uses when the taxpayer contests a Substitute for Return (SFR) determination by filing an original delinquent return.
There must be specific reasons for a request
Some reasons for an audit reconsideration request:
- The taxpayer did not appear for the audit.
- The taxpayer moved and did not receive the correspondence from the IRS.
- The taxpayer has new documentation to present.
- A taxpayer might request an audit reconsideration if:
- The taxpayer disagrees with an audit assessment from an audit of his/her return.
- The taxpayer disagrees with an assessment created under the authority of IRC Section 6020(b), Substitute for Return (SFR).
- The taxpayer has been denied tax credits such as EITC claimed, during prior examination.
Criteria for a IRS Tax Reconsideration on Back Taxes
In order to request an audit reconsideration:
1. The taxpayer must have filed a tax return.
2. The assessment remains unpaid or the Service has reversed tax credits that the taxpayer is disputing.
3. The taxpayer must identify which adjustments he/she is disputing.
4. The Taxpayer must provide additional information not considered during the original examination.
What you need to provide and problems that may arise
You will need to send to Internal Revenue Service in original tax return along with a letter written to support your claim that you have their right for a tax audit reconsideration.
I suggest you use the reasons mentioned above in your letter.
Remember IRS has the right to reject your IRS tax audit reconsideration for wrong reasons.
There is no statute all limitations for an IRS tax reconsideration.
It is in your best interest to have a professional tax firm who truly knows what they’re doing process your tax returns and file for the IRS tax audit reconsideration.
So if you have not filed back tax returns either follow the above instructions or contact us today for free initial tax consultation.
We can stop the worry and fear of the Internal Revenue Service.
You will back taxes as a result of filing an IRS audit reconsideration we can work out a tax settlement for you.
We are professional tax firm with over 206 years professional tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
We are the affordable tax experts for the filing of back tax returns and tax settlements.
Where to file a Notice of Reconsideration
W & I Cases SB/SE Cases
Form 1040 with Schedule C, E, F, or Form 2106 International Returns
FSC – 89 BSC – 19 BSC – 19
Fresno Campus
ASFR Unit Stop 81304
PO Box 24015
Fresno, CA 93779 1–866–897–3370 Brookhaven Campus
ASFR Unit Stop 654
PO Box 9013
Holtsville, NY 11742-9013
(631) 447-4984 Brookhaven Campus
ASFR Unit Stop 654
PO Box 9013
Holtsville, NY 11742-9013 (631) 447-4984
Back Tax Returns – Did the IRS File Your Tax Return – Here is WHAT TO DO
by Fresh Start Tax | Oct 2, 2013 | Back Taxes, Tax Settlements
File Back Tax Returns & Get IRS Tax Settlement at the Same Time
If you need to file back tax returns and you have put this off because there is some fear, there is a process to file all your back tax returns and apply for an IRS settlement called an offer in compromise or tax debt settlement.
What is a Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS will consider your unique set of facts and circumstances:
- Your Asset equity all will play a key factor in IRS tax settlement.
The IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
IRS will only be interested in your assets and income.
Please know the Offer in Compromise/IRS Settlement program is not for everyone.
We will have you walk through a pre-qualifier tool before we apply for an IRS tax settlement. It will save you time and money and in the same time make sure you are an eligible candidate to settle your IRS taxes.
If you have not filed your Back Tax Returns
You should know you are not alone.
Millions and millions of taxpayers has failed to file their old, back, and past due tax returns.
Once the snowball starts of not filing your tax returns the years add up quickly.
Taxpayers usually bury their heads in the sand for no reason. The process of filing your back tax returns and getting IRS settlements is much easier than taxpayers think.
If you want to get this process taking care of, just contact us today and we will walk to this process with you with a free assessment and let you know how the simple process can be.
We are comprised of tax attorneys, certified public accountants, and former IRS agents with over 60 years of combined work experience in the local, district, and regional tax offices in the state of Florida.
We better practice since 1982 and we are A+ rated by the Better Business Bureau.
If you need to file your back tax returns – With or Without records
If you need to file your old, past due, or late tax returns you can simply order your tax records from the IRS.
We can prepare your returns and send them to Internal Revenue Service.
If you have lost, destroyed, or no records we can reconstruct your tax returns. As former IRS agents, managers and tax instructors we have reconstructed thousands of tax returns over the years.
The Process
The process happens by us contacting the Internal Revenue Service and letting them know we will be filing your tax returns. Stop the worry now.
Once we notify the Internal Revenue Service and file a power of attorney, you will never have to speak to the Internal Revenue Service. All communication goes through our firm.
We will pull income tax transcripts which will allow us to see the income information that IRS has received on you as reported by third parties. We do this to make sure that IRS may not pull your return for a future audit based on unreported income.
If you do not file your own tax return IRS has the right to file for you.
IRS will prepare your return under 6020 B of the IRS code and they will do you absolutely no favors.
You will pay the highest amount possible. We can undo this process by filing for an audit reconsideration but is much more timely and expensive.
We will contact the IRS
Once we file your tax returns we will contact the Internal Revenue Service and provide them with the current financial statement.
With the current financial statement documented with all income and expenses the IRS will then process a tax settlement for you.
Tax settlements may come in the way of hardships, installment agreements or the offer in compromise which is mentioned above.The OIC will end your problem once and for all while the others are temporary solutions.
Once we review your financial statement we will walk you through the process of how IRS will settle your case.
We are one of the most experienced, trusted and honest firms in the tax resolution industry. We are A+ rated by the Better Business Bureau.
File Back Tax Returns & Get IRS Settlement at the Same Time – Jacksonville, Tampa, Miami, Ft.Lauderdale – FLORIDA
by Fresh Start Tax | Oct 2, 2013 | Back Taxes
If you fail to file back tax returns the IRS can and will file for you and they will not do you any favors. You will pay the highest amount of tax allowed by law.
The Internal Revenue Service will not allow you any extra exemptions, deductions or any expenses.
The good news, the IRS has a process where you can reverse their filings.
It is called a Audit Reconsideration.
The process in which all this happens is called the substitute for tax returns. (SFR )
Under code section 6020 b, IRS has the authority to file any and all back returns that are late. The Internal Revenue Service must give you notice that this will take place.
The IRS Code Section that allows filing of your back tax returns 6020B
(a) Preparation of return by Secretary
If any person shall fail to make a return required by this title or by regulations prescribed thereunder, but shall consent to disclose all information necessary for the preparation thereof, then, and in that case, the Secretary may prepare such return, which, being signed by such person, may be received by the Secretary as the return of such person.
(b) Execution of return by Secretary
(1) Authority of Secretary to execute return
If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.
(2) Status of returns
Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes.
The good news is is there is a process called tax audit reconsideration in which you can file in original tax return to replace the IRS audit assessment.
The Internal Revenue Service does not have to grant this reconsideration but as a general rule if all tax return are prepared properly and the tax return is correct, the Internal Revenue Service will adjust your tax assessment.
The IRS Tax Audit Reconsideration Process
The IRS Tax Audit Reconsideration procedure is available as a matter of IRS administrative policies to make sure only a correct tax has been assessed. The Internal Revenue Service does not have to allow this reconsideration.
There is no “reconsideration” statute.
The process is described in the Internal Revenue Manuals.
This tax procedure applies only to unpaid assessments.
If the assessed tax has been paid, taxpayers can file an amended return, submit a Form 843 and pursue refund litigation in federal court.
The IRS allows this process to make sure that:
- Making sure the amount of assessed tax is correct.
- Making sure the collection process is suspended while the reconsideration request is being considered.
- Making sure that the procedures support the abatement of assessments in appropriate situations.
- Making sure that cases are handled in a consistent and fair matters to all taxpayers.
IRS will not allow frivolous requests.
As a former IRS agent in teaching instructor when a taxpayer filed frivolous tax returns on some occasions I referred the cases to criminal investigation.
Make sure when you are filing a tax return you are fair and accurate as possible.
Internal Revenue Service will only process tax reconsideration to make sure that new information has been provided.
Taxpayers who have not filed an original tax return easily can justify the filing of there reconsideration’s because they have not turned in any documents to the Internal Revenue Service.
Therefore
A IRS tax reconsideration occurs when the taxpayer/business submits to the IRS information not previously considered after the issuance of a final determination. The information must be different than what was previously considered.
What is the next step
IRS audit reconsideration are sometimes tricky and IRS has a right to deny the audit reconsideration.
I suggest taxpayers use a professional company whose experienced in the matters of filing back tax returns and tax matters.
It is critical you follow up with the IRS correspondence because the IRS may process the assessment and then will follow up with collection enforcement action which includes the filing of the federal tax liens, the filing of bank levies, seizures and the garnishment of wages.
Contact us today and we can help you through this process to correct your tax returns and to stop the IRS.
File Back Tax Returns Before the IRS Files For You – Get Former Affordable Agents to Help
by Fresh Start Tax | Sep 25, 2013 | Back Taxes
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We are a Florida professional tax firm that specializes in a back IRS tax problem relief.
We have practiced in the state of Florida since 1982 and are A+ rated by the Better Business Bureau. We are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS agents, managers and tax instructors.
We have over 60 years of combined work experience in the state of Florida in the local, district, and regional tax offices of the Internal Revenue Service. We also specialize in state of Florida sales and use tax. On staff is a former state sales tax auditor with over 16 years of professional work experience.
We are unlike at the other tax firms on the Internet.
The Tax Professionals of Fresh Start Tax llc really do all the work and that is why we are A plus rated by the BBB.
We can review any case you have and give you an opinion or free tax consultation to completely remedy your tax situation.
Simply email us or call us today. Skype also available.
Helpful tips to help resolve your IRS Back Tax Problems.
1. The IRS has Publication 594 – For the do-it-your-selfers, read the IRS Collection Process which talks about what to do if you cannot pay your taxes on time. It is comprehensive and thorough. It can help those with smaller cases we do not have the money to pay a professional tax firm work through and resolve their tax problem.
2. If you did not file your tax returns, file them immediately. The IRS will request this before the case is worked and closed. The Internal Revenue Service will provide copies of tax transcripts that will reflect your last seven years of income.
You can simply request this tax transcript as a starting point to prepare all back tax returns. You can do this by going online to IRS.gov or simply call one 800-829-1040.
3. If you have unfiled,back, past due or late tax returns and you owe tax (married filing jointly), make a decision whether or not to include both husband and wife on the liability. Sometimes it is better to only have one party responsible for the tax. It is best to have a tax preparer figure out the backs tax strategy for you keeping in mind that you need to pay IRS back.
4. If you owe less than $25,000, you can get a streamline agreement automatically. Just call the automated service at the IRS, 1 800 829-1040, to make the arrangements. On cases over $25,000 I suggest you call a professional tax firm to help resolve this debt because some complications may occur.
5. Make sure you do some asset planning before calling the IRS. The Internal Revenue Service may ask you to liquidate some assets so be apprised of the situation now.
6. If you have a pension, 401K or IRA, the IRS will ask if you can liquidate it to pay the taxes. Find out beforehand if you can liquidated any of these and what are the consequences of doing so. If you have liquid money in a 401(k) or Ira, once again you should call a professional tax firm to do your negotiation and representation.
7. Find out whether you qualify for an Offer in Compromise.
An OIC ( settlement) can suspend IRS collection action.
There are three types of offers in compromise and by contacting us we can simply review which offer may apply to you. Offers in Compromise should only be filed if you are a qualified candidate for the program.
You can find on our website a pre-qualifier tool for the offer in compromise.
I would not file for offer in compromise unless you walk through the IRS pre-qualifier tool.
8. Make sure you are current for withholding or estimated payments in the current year of the tax problem. IRS may refuse to work your case if you not have enough withholding being taken out in the current year. They may ask you to adjust your W-4 or send in a current estimated tax deposit.
9. The three most common ways to settle your IRS debt off the IRS computer will either be a tax hardship settlement, a payment agreement settlement, or the filing of an offer in compromise.
10. If you owe payroll taxes, Form 941, the IRS will not work with you until you are current on all taxes and all tax returns are up to date, including your personal income taxes.
We are a full service tax firm located right here in the state of Florida that specializes in IRS and state tax resolution.
We can resolve any IRS back tax problem that you have.
Do not just give your case to any tax firm.
Check out their qualifications, their credentials, their experience level, and asked to speak directly to the person that will be resolving your case
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IRS Problems – Tax Specialty Firm – Free Consultations
If you will owe back taxes to the Internal Revenue Service call us today for free initial tax consultation and you can speak directly to tax attorneys, certified public accountants, or former IRS agents, managers and tax instructors.
We are unlike at the other tax firms on the Internet.
The Tax Professionals of Fresh Start Tax llc really do all the work and that is why we are A plus rated by the BBB.
We have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
We are A+ rated by the Better Business Bureau and have been in practice since 1982.
We can review any case you have and give you an opinion or free tax consultation to completely remedy your tax situation.
Simply email us or call us today. Skype also available.
Tips to help resolve your Back IRS Tax Problems.
1. The IRS has Publication 594 – For the do-it-your-selfers, read the IRS Collection Process which talks about what to do if you cannot pay your taxes on time. It is comprehensive and thorough.
2. If you did not file your tax returns, file them immediately. The IRS will request this before the case is worked and closed. The Internal Revenue Service will provide copies of tax transcripts that will reflect your last seven years of income.
You can simply request this tax transcript as a starting point to prepare all back tax returns.
3. If on the unfiled tax returns you owe tax (married filing jointly), make a decision whether or not to include both husband and wife on the liability. Sometimes it is better to only have one party responsible for the tax.
4. If you owe less than $25,000, you can get a streamline agreement automatically. Just call the automated service at the IRS, 1 800 829-1040, to make the arrangements.
5. Make sure you do some asset planning before calling the IRS. The Internal Revenue Service may ask you to liquidate some assets so be apprised of the situation now.
6. If you have a pension, 401K or IRA, the IRS will ask if you can liquidate it to pay the taxes. Find out beforehand if you can liquidated any of these and what are the consequences of doing so.
7. Find out whether you qualify for an Offer in Compromise. An OIC can suspend IRS collection action. There are three types of offers in compromise and by contacting us we can simply review which offer may apply to you. Offers in compromise should only be filed if you are a qualified candidate for the program.
8. Make sure you are current for withholding or estimated payments in the current year of the tax problem. IRS may refuse to work your case if you not have enough withholding being taken out in the current year. They may ask you to adjust your W-4 or send in a current estimated tax deposit.
9. Four million taxpayers pay their taxes using an installment agreement.
Find out the criteria for a payment agreement before you call the IRS. Do not call the IRS without first having a plan. If you cannot pay your tax in full you should have a short term solution and an exit strategy.
10. If you owe payroll taxes, Form 941, the IRS will not work with you until you are current on all taxes and all tax returns are up to date, including your personal income taxes.
If you are having IRS problems make sure you call a true IRS tax professional for the best results.
We are a full service tax firm that specializes in IRS and state tax resolution. We can resolve any IRS back tax problem that you have.
IRS Back Tax Problems – Free Consultations – IRS Specialty Firm
by Fresh Start Tax | Sep 18, 2013 | Back Taxes
Owe Back IRS Taxes Help – New Policies May Help You
The IRS is trying to help taxpayers who Owe Back Taxes, REALLY!
We are a Florida tax firm that specializes in back IRS tax help relief. Since 1982 we are one of Florida’s most trusted, experienced and affordable tax firm.
The IRS have come up with new tax policies to help taxpayers struggling with back tax debt to the agency by offering different tax solutions to help remedy there current financial situation.
You can call us today to find out if one of these new policies can directly affect and help you.
Policy Areas for Owing Back Taxes
The new IRS fresh start initiative, program is directed at penalty relief, installment agreements, federal tax liens and the offer in compromise program that own known as the tax debt settlement program with the Internal Revenue Service. These are the main areas that affect taxpayers who owe back taxes to the IRS.
The process is a very simple one.
One of our tax professionals will take a financial statement, a IRS form 433 f and within minutes we can make a determination or recommendation that best suits your financial needs. No two cases are the same.
Our tax firm has worked on thousands of cases and understand the exact protocol to completely resolve IRS cases that both satisfy the Internal Revenue Service and the financial needs of the client.
Also, there are many more options available that taxpayers are not aware of.
Just one of these programs are called currently not collectible.Basically, you are going through an economic tax hardship.
This program is based on taxpayers that are going through hardships and do not have the income to cover their current expenses.
Even though these are not promoted by the Internal Revenue Service, we have found that over 50% of the cases we close are put into the currently uncollectible file. You must realize this is a short-term solution to the problem.
Our years of experience can make this a seamless and painless process for taxpayers owing back taxes.
Our goal at fresh start tax is to have our clients go through this process worry and pain free. Our years of experience will be your best friend.
We are comprised of tax attorneys, tax lawyers, certified public accountants, former IRS agents, managers and tax instructors.
If you have a state tax problem we have former state tax auditors are hand to help resolve that Tax Debt as well.
We have over 60 years of working directly for the Internal Revenue Service.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
The following four tips explain the expanded relief for taxpayers.
Penalty Relief Part of Owing Back Taxes to the IRS.
These initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax bill.
The Fresh Start Penalty Relief Initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes.
Interest still applies on the 2011 taxes from April 17, 2012 until the tax is paid, but you won’t face failure-to-pay penalties if you pay your tax, interest and any other penalties in full by Oct. 15, 2012.
The penalty relief is available to two categories of taxpayers:
1. Wage earners who have been unemployed at least 30 consecutive days
during 2011 or in 2012 up to this year’s April 17 tax deadline,
2. Self-employed individuals who experienced a 25 percent or greater
reduction in business income in 2011 due to the economy.
To qualify for this penalty relief, your adjusted gross income must not exceed $200,000 if married filing jointly or $100,000 if your filing status is single, married filing separately, head of household, or qualifying widower.
Your 2011 balance due can not exceed $50,000.
Taxpayers who qualify need to complete a new Form 1127A to request the 2011 penalty relief.
Installment agreements.
An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date.
The Fresh Start provisions give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay.
The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000. This option requires limited financial information, meaning far less burden to the taxpayer.
The maximum term for streamlined installment agreements has been raised to six years from the current five-year maximum.
If your debt is more than $50,000, you’ll still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F). You also can pay your balance down to $50,000 or less to qualify for this payment option. You absolutely must pay the balance down under $50,000.
With an installment ,payment agreement, you’ll pay less in penalties, but interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, you must agree to monthly direct debit payments.
The Offer in Compromise or Tax Debt Settlements
Under the first round of Fresh Start in 2011, the IRS expanded the Offer in Compromise program to cover a larger group of struggling taxpayers.
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.
The IRS recognizes many taxpayers are still struggling to pay their bills so the agency has been working on more common-sense changes to the OIC program to more closely reflect real-world situations.
Generally, an offer 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.
It is important to remember that no two cases are the same.
Until a tax firm looks at your individual financial statement, they cannot value or judge the case that you have.
Before signing a retainer agreement with any firm check out their Better Business Bureau rating, their credentials, and asked to speak to the person that will be directly handling your case.
Call us today and you will have your option to speak to a tax attorney, tax lawyer, certified public accountant or former IRS agent.
We will fit you with the person on our staff who has the most experience in dealing with your individual tax situation. So, if you owe back taxes to the IRS and need immediate tax help call us today for free initial tax consultation.
Owe Back IRS Taxes Help – New Policies May Help You – Jacksonville, Tampa, St. Pete, Miami – All FLORIDA
by Fresh Start Tax | Sep 18, 2013 | Back Taxes
Owe Back Taxes – New IRS Tax Policies on Tax Debt Resolutions
The Internal Revenue Service has come up with new tax policies to help taxpayers struggling with back tax debt different solutions to help remedy there financial situation
The new IRS fresh start initiative is directed at penalty relief, installment agreements, federal tax liens and the offer in compromise program that own known as the tax debt settlement program with the Internal Revenue Service.
If you need help because you owe back taxes to the federal or state government, call us today and we can explain the new tax policies to you and you can find out how you can make a payment arrangements, be placed in economic tax hardship or possible settle the case with an offer in compromise.
The process is simple.
We take a financial statement, a IRS form 433f and within minutes we can make a determination or recommendation that best suits your financial needs. We have worked thousands of cases and understand the exact protocol to completely resolve IRS cases that both satisfy the Internal Revenue Service and the financial needs of the client.
The Internal Revenue Service has made owing back taxes a much easier process, this is been a very long time coming but we have helped many taxpayers through this process. Our years of experience can make this a seamless and painless process for taxpayers owing back taxes.
Our goal at fresh start tax is to have our clients go through this process worry and pain free.
We are comprised of tax attorneys, tax lawyers, certified public accountants, former IRS agents, managers and tax instructors.
We have over 60 years of working directly for the Internal Revenue Service.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
The following four tips explain the expanded relief for taxpayers.
Penalty Relief Part.
These initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax bill. The Fresh Start Penalty Relief Initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes.
Interest still applies on the 2011 taxes from April 17, 2012 until the tax is paid, but you won’t face failure-to-pay penalties if you pay your tax, interest and any other penalties in full by Oct. 15, 2012.
The penalty relief is available to two categories of taxpayers:
1. Wage earners who have been unemployed at least 30 consecutive days
during 2011 or in 2012 up to this year’s April 17 tax deadline,
2. Self-employed individuals who experienced a 25 percent or greater
reduction in business income in 2011 due to the economy.
To qualify for this penalty relief, your adjusted gross income must not exceed $200,000 if married filing jointly or $100,000 if your filing status is single, married filing separately, head of household, or qualifying widower.
Your 2011 balance due can not exceed $50,000.
Taxpayers who qualify need to complete a new Form 1127A to request the 2011 penalty relief.
Installment agreements.
An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date.
The Fresh Start provisions give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay.
The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000. This option requires limited financial information, meaning far less burden to the taxpayer.
The maximum term for streamlined installment agreements has been raised to six years from the current five-year maximum.
If your debt is more than $50,000, you’ll still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F). You also can pay your balance down to $50,000 or less to qualify for this payment option.
With an installment agreement, you’ll pay less in penalties, but interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, you must agree to monthly direct debit payments.
Offer in Compromise.
Under the first round of Fresh Start in 2011, the IRS expanded the Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers. 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.
The IRS recognizes many taxpayers are still struggling to pay their bills so the agency has been working on more common-sense changes to the OIC program to more closely reflect real-world situations.
Generally, an offer 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.
It is important to remember that no two cases are the same.
Until a tax firm looks at your individual financial statement, they cannot value or judge the case that you have.
Before signing a retainer agreement with any firm check out their Better Business Bureau rating, their credentials, and asked to speak to the person that will be directly handling your case.
It is in your best interest to make sure they have a true tax professionals on staff.
Owe Back Taxes – New IRS Tax Policies to Help Taxpayers
