by Fresh Start Tax | Sep 12, 2013 | Back Taxes, Tax Returns
File Back Taxes for Multiple Years , We know the process!
We can file all your old back tax returns and settle your case all to same time.
We are a local South Florida tax rumor has been practicing since 1982. We are A+ rated by the Better Business Bureau and one of the most affordable experience tax firm in the area.
If you have unfiled back tax returns that have not been filed you are not alone, the IRS estimates that there are 25 million unfiled tax returns.
The fact is the Internal Revenue Service would love to get you back in the system filing your tax return and over 99% of the time IRS will not pursue criminal prosecution because your case does not want that sort of activity.
The Key to Getting back in the system – File Back Tax Return for Multiple Years
To get back in the system worry free you just need to contact a firm knows the process, the systems, the protocols so this can be a painless and seamless process for you.
You can read below the process of how we at Fresh Start Tax LLC can make this happen.
So let former IRS agents and managers completely resolve your situation for you and get you back in the system without worry.
Let our 60 years of combined IRS experience work for you.
Once we have your power of attorney you will never speak to the IRS.
All correspondence and negotiations go through our firm.
We can file all your back tax returns and work out a tax settlement all at the same time.
If you will wind up owing back taxes IRS will either settle your case by putting you into a currently not collectible file, enter you into an installment agreement or the possibility of accepting an offer in compromise or a IRS settlement.
Since each case is different, we will have to review your individual case and let you know the easiest and the best tax solution for you.
We have over 206 years of 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 IRS.
We know the exact systems in the exact protocol to file back multiple tax years and get you back in the system worry free.
You may not have filed your federal income tax return for this year or previous years. Regardless of your reason for not filing a required return, file your tax return as soon as possible.
IRS as a general rule does not pursue criminal prosecution for all those who file their back tax returns as long as they filed a return before IRS contacts them so it is important to find IRS before they find you.
If you have lost or misplaced your records – No problem
If you have unfiled tax returns, this process Fresh Start Tax LLC uses to get current with the IRS and get you immediate and permanent tax relief:
1. We verbally review a year by year history of your income and expenses.We will make sure you pay the lowest amount allowed by law.
2. We review any tax records you may have.
3. We pull all IRS information that they have received from 3rd party sources that have been placed on the IRS computer system over the past 7 years.
4. If you have lost all or misplaced your records we have easy and simple forms that can help you reconstruct your tax return.
5. We can prepare through years of experience a “reconstructed” tax return that the IRS will accept and process.
6. We review all returns for accuracy with the client and send them into the IRS.
7. We work out a settlement agreement with the IRS to permanent close your tax case.
If you are not sure you are required to file a return, refer to Publication 17, Your Federal Income Tax or we can provide that tax help for you.
Get this years tax return filed on time, goes a long way to show the IRS you want back in the system.
If your return was not filed by the due date including extensions of time to file, you may be subject to the failure to file penalty, unless you have reasonable cause for your failure to file timely.
If you did not pay your tax in full by the due date of the return (excluding extensions of time to file), you may also be subject to the failure to pay penalty, unless you have reasonable cause for your failure to pay timely, or the IRS has approved your application for extension of time for payment of the tax due to undue hardship (refer to Form 1127 (PDF), Application for Extension of Time for Payment of Tax Due to Undue Hardship). Interest is charged on taxes not paid by the due date, even if you have an extension of time to file.
Interest is also charged on penalties.
There is no penalty for failure to file if you are due a refund. But, if you wait to file a return or otherwise claim a refund, you risk losing a refund altogether.
An original return claiming a refund must be filed within 3 years of its due date for a refund to be allowed in most instances.
You want to file ASAP if you have had withholding taken out.
After the expiration of the three-year window, the refund statute prevents the issuance of a refund check and the application of any credits, including over payments of estimated or withholding taxes, to other tax years that are underpaid.
However, the statute of limitations for the IRS to assess and collect any outstanding balances does not start until a return has been filed. In other words, there is no statute of limitations for assessments.
If you have not filed back Tax Returns for multiple years, call us and get started today and STOP the worry.
You can have former IRS agents and managers who worked on the local South Florida offices help resolve your case today.
by Fresh Start Tax | Sep 11, 2013 | Back Taxes
The Internal Revenue Service treats large dollar cases much differently than it does taxpayers with smaller dollar back tax debts amounts.
I should know I am former IRS agent and teaching instructor.
The basic rule of thumb for the Internal Revenue Service, the more money you owe the deeper the investigation. In today’s world where information is available at the click of a computer button, the IRS can find out a wealth of information about you. IRS can simply Google your name of loads of information appears with a click of a computer key.
Before we negotiate back taxes with the Internal Revenue Service on your behalf we analyze the case just like IRS analyzes the case so we can be your best tax defense for a large dollar back tax cases.
You can contact us today for a free initial tax consultation and we will completely review your case and give you a recommendation on how to move forward.
Our staff is comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors who have been practicing for a combined 206 years in the tax resolution business and we have over 60 years of direct work experience at the Internal Revenue Service.
We have worked in the local, district, and regional tax offices of the Internal Revenue Service and also taught tax law at the IRS.
Tips for Large Dollar IRS Tax Cases on Back Taxes
- Get current on all tax return filings, because the IRS will come out swinging if you are not up to date;
- Have an exit strategy so the IRS knows you have a plan to resolve this case;
- Prepare a current Information Collection Statement and promptly respond to all IRS inquires.That financial statement will be on form 433-F or 433-A.
- By hiring former IRS agents and managers they will help you understand the IRS system so you can have success in dealing with your large dollar IRS case.
- You will also hear every available tax option so you will have both a short-term strategy in a long-term exit strategy.
IRS has a Large Dollar Unit for Back Taxes
IRS has specially trained Revenue Officers in the local field branches to work Large Dollar Cases. They also have a Large Dollar Case Unit, within the ACS unit, for those cases still in the collection computer system.
In working these cases, IRS will get into significantly more detail while investigating a taxpayer’s ability to pay. By all means, be represented by a professional tax firm for large dollar IRS cases.
It is also important to remember the general attitude of the Internal Revenue Service is not to trust the taxpayer so they will dig as deep as they need to go to make sure all the financial information adds up.
As a general rule IRS will want consistency within a taxpayer’s financial statement, bank statements, cost of living, and the income found on the tax return. All of these things should have a common chord through them.
The Basics for Large Dollar IRS Cases on Back Taxes
IRS all starts with the basics, a courthouse search for real property and DMV search. Those are called the basics.
Here is where it can get interesting.
Many times the IRS pulls credit reports from all three credit agencies. Credit reports contain a wealth of information.
The Credit Report can let the IRS know how much the average monthly charges are,what purchases you are making, what assets you have purchased. The kicker here is this, IRS can find out who has made inquiring and whether you have turned in a financial statement to that source.
IRS can summon the company for that finical statement you turned in and they will match up the financial statement that you gave the IRS.
Being a Former IRS agent I have seen few financial statements ever match up and the IRS can use that to there advantage. This will work to your disadvantage.
IRS also has there own internal locator. The internal locator will have a incomes records over the last six years of all 1099′s, W-2s, tax returns or any third party reporting of income that has been given to Internal Revenue Service.
One of the new sources that IRS is picking up FBAR information that reports overseas bank and financial records. IRS can also inquire of a bank CTR of any cash activity over $10,000 or more.
IRS will then look to a very common search engine called Accuriant or Lexis Nexis used by many creditors today. The Accuriant/Lexis Nexis search engine has over 37 billion current public records can detect fraud and verify identities and also help the IRS investigation. It is one of the go to tools that are used by the Internal Revenue Service.
The IRS will also look to other external sources. The public search engines such as Google, Bing, Yahoo, LinkedIn and Facebook and other social media can let the IRS agent know about your life habits.
Depending on the dollar amount of the case IRS can also use information from Passports, conduct 3rd party interviews, vessel and license checks at the courthouse all at the click button.
IRS commonly will check for Patents,Trademarks, Franchises, Licenses, Domain Name of a web site.Since IRS cannot march inside your house how they can find out about your personal assets, simply summons your homeowners policy.
Modern technology has allow not only the IRS but any government agency to ability too find out a plethora of information about you at the click of a button.
The IRS Investigations for Large Dollar Cases
I am a former IRS agent and teaching instructor with the IRS and here are some inside secrets about some of the financial investigation tools and sources that will take place during IRS investigations.
Whenever a IRS Agent get a case for back taxes the IRS will always ask for the taxpayer to give them a current financial statement and that serves as the basis for there investigation.
It also serves to let the IRS Agent IRS know whether you have perjured yourself or have been truthful with the Internal Revenue Service during the course of there investigation.
IRS will use the tools on the Internet to help find out the truth about the case they are working. They will need to attach said documentation to their manager before closing out the case. Most of these investigations last anywhere between 10 and 20 hours.
Before you contact the IRS on a large dollar case it is best to talk to a season tax professional that can walk you through the process and review the different tax options that are available to you. We are available for free tax consultation.
Please remember in working these cases all your tax returns need to be filed, current and up-to-date. It is also very important when giving IRS a financial statement to make sure it is completely accurate and correct to avoid any possible criminal possibilities of fraud.
It only makes sense to hire former IRS agents and managers to negotiate your large dollar IRS tax debt. Having our team worked there for over 60 years when you know the exact systems, the exact protocols, the exact investigative techniques and tax settlement options.
Do you IRS Over $100k in Back Taxes, you better CALL US – Former Agents
by Fresh Start Tax | Aug 28, 2013 | Back Taxes, Tax Relief
Back Tax Debt Relief
Last year the IRS filed over 2.6 million and over 900,000 federal tax liens.
The good news, IRS is finally ready to help taxpayers with the Fresh Start Program.
If you are struggling with Back Tax Debt there may be a program just right for you.
We are comprised of tax attorneys, CPAs, and former IRS agents, managers, instructors. We worked out the local South Florida IRS offices for a combined 60 years and have been in practice in South Florida since 1982.
We have an A+ rating by the Better Business Bureau.
Last year the Internal Revenue Service initiated some tax programs that offers taxpayers back tax debt relief. This new program is called the IRS fresh start.
Unlike prior years the Internal Revenue Service is starting to realize rather than punishing taxpayers with levies and liens they can both help the taxpayer and help themselves by relieving some of the pressure put on taxpayers below back tax.
The three new programs initiated by the Internal Revenue Service are helping people with the federal tax liens, the settlement program, and installment agreements.
These changes have really helped struggling taxpayers with their back tax debt.
As a former IRS agents and instructors with the Internal Revenue Service it is a long time coming but IRS is finally starting to work with taxpayers who have back tax debt.
The IRS Fresh Start program makes it easier for taxpayers to pay back taxes and avoid tax liens. Even small business taxpayers may benefit from Fresh Start.
Here are three important features of the Fresh Start program for Back Tax Debt Relief
Federal Tax Liens.
The Fresh Start program increased the amount that taxpayers can owe before the IRS generally will file a Notice of Federal Tax Lien.
That amount is now $10,000. However, in some cases, the IRS may still file a lien notice on amounts less than $10,000.
When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien. Taxpayers must request this in writing using Form 12277, Application for Withdrawal.
Some taxpayers may qualify to have their lien notice withdrawn if they are paying their tax debt through a Direct Debit installment agreement. Taxpayers also need to request this in writing by using Form 12277.
If a taxpayer defaults on the Direct Debit Installment Agreement, the IRS may file a new Notice of Federal Tax Lien and resume collection actions.
Installment Agreements.
The Fresh Start program expanded access to streamlined installment agreements. Now, individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years).
While the IRS generally will not need a financial statement, they may need some financial information from the taxpayer.
Taxpayers in need of installment agreements for tax debts more than $50,000 or longer than six years still need to provide the IRS with a financial statement. In these cases, the IRS may ask for one of two forms:
Either Collection Information Statement, Form 433-A or Form 433-F.
Offers in Compromise.
An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. Fresh Start expanded and streamlined the OIC program. as a former IRS agent and tax instructor I would caution all individuals trying to file an offer in compromise on their own. They are much more complicated and complex than people think. Your best chance of getting your offer in compromise accepted is through a legitimate tax professional.
The IRS now has more flexibility when analyzing a taxpayer’s ability to pay. This makes the offer program available to a larger group of taxpayers.
Generally, the IRS will accept an offer if it represents the most the agency can expect to collect within a reasonable period of time. The Internal Revenue Service receives approximately 60,000 offers a year and accepts approximately 38% of them.
The IRS will not accept an offer if it believes that the taxpayer can pay the amount owed in full as a lump sum or through a payment agreement. The IRS looks at several factors, including the taxpayer’s income and assets, to make a decision regarding the taxpayer’s ability to pay.
Use the Offer in Compromise Pre-Qualifier tool on IRS.gov to see if you may be eligible for an OIC. You may also find the IRS pre-qualifier tool right on our website.
These are not the all-encompassing programs that are used by the Internal Revenue Service. Contact us today to learn more about your particular case and how we can permanently settle your IRS problem.
Contact us today for a free initial tax consultation and speak to a truly qualified tax professional to help your back tax debt.
Back Tax Debt Relief – Attorneys, Former IRS – Miami, Ft.Lauderdale, Boca, Palm Beaches
by Fresh Start Tax | Aug 20, 2013 | Back Taxes
The Process of Ending IRS Problems
If you have back unfiled tax returns you can send them into Internal Revenue Service and settle your case all at one time.
The process is much simpler than you think.
Many taxpayers have a fear and hesitation about filing back taxes because this is been a mounting issue of fear in their life.
As a former IRS agent and teaching instructor let me tell you that IRS is more than happy to get you back in the system.
So don’t let fear and anxiety keep you from filing unfiled back tax returns.
Back Tax Records
If you do not have many of your tax records you can request an income transcript from the IRS and they will provide for you the last six years of income records and you can use that as a base for you to file your back unfiled back taxes.
Being former IRS agents and managers we are experts in tax return reconstruction and we can prepare all your unfiled back taxes. Being former IRS agents there are methods to use to file safe and protected tax returns. We can help audit proof your return from IRS
It is always wise to have an exit strategy if you’re going own money on your unfiled back taxes.
What is an Exit Strategy
An exit strategy is a way to close your case with the Internal Revenue Service.
In each and every case IRS will need a current financial statement which signals to IRS how they will deal and handle your case and close it off of the IRS enforcement computer.
You should plan to fill on a form 433-F which is the IRS financial statement and bring that form to a professional tax firm.
That firm will go ahead and give you an exit strategy on how to settle your case with the IRS. You could call us for your free initial tax consultation we can walk you through the process of filing and settling your tax debt.
There are various settlement strategies for unfiled back taxes Thank you
There are three settlement tax strategies and all are based on your current financial statement . after IRS reviews your current financial statement IRS may deem you as:
- currently non-collectible case and put you into economic tax hardship status.
- IRS may look at your financial statement and determine that you are eligible for installment or monthly payment plan.
- The third and last strategies for you to actually settle your case for pennies on a dollar and file what is known as an offer in compromise.
While the first two exit tax strategies will last a couple years only the offer in compromise exit strategy will permanently solve your case once and for all.
What is an Offer In Compromise – Settle tax once and for all
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
In order to be eligible for an OIC, the taxpayer must :
1. have filed all tax returns,
2. made all required estimated tax payments for the current year, and
3. made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
If you do not meet the requirement listed above do not even bother to file for an offer in compromise.
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).
The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
Another basic rule of thumb is you must at least offer IRS the total value of all your assets.
The IRS may accept an OIC based on three grounds.
First, acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third, acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Settlement Submission
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of:
- Form 656 (PDF), Offer in Compromise, and
- also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or
- Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
Application fee for Tax Settlements
In general, a taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
- First – no application fee is required if the OIC is based on doubt as to liability.
- Second, the fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
Lump Sum Tax Settlements
A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted. If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $150 application fee. The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.
The 20 percent amount will be applied to the taxpayer’s tax liability. The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
Periodic Tax Settlement
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer.
Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer.
These amounts are also nonrefundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Pre-Qualifier Tool for Tax Settlement
As of last year the Internal Revenue Service came out with the pre-qualifier tool for tax settlements. Before you go running off filing an offer in compromise walk through the pre-qualifier tool that you can find on our website.
More news on Unfiled Back Taxes and Settle Tax
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties.
Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
If the IRS rejects an OIC, then the taxpayer will be notified by mail.
If the IRS rejects your are offer in compromise keep in mind you can always fill on another and send it back in. It is wise to correct the problems have a professional firm review it and then send it into the IRS.
You can send in as many offers in compromise you like to the Internal Revenue Service just make sure they are valid and that you are a qualified candidate
The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter. In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
If you have unfiled back taxes and wish to file your returns and settle your tax debt contact us today and speak directly to tax attorneys, certified public accountants, or former IRS agents, managers and tax instructors.
We have over 300 years of professional tax experience in dealing with unfiled back taxes and over 60 years of direct IRS working experience in filing and settle back taxes.
The process of ending your IRS problems can be made simple with one phone call our office.
Unfiled Back Taxes – File, Settle Tax – The Process of ending IRS Problems
by Fresh Start Tax | Jul 26, 2013 | Back Taxes
If you owe back taxes contact us today to hear about the various tax solutions to immediately and permanently help reduce your tax debt on your back taxes.
The new IRS fresh start program or fast start tax initiative that IRS is offering is a series of various programs to help taxpayers who owe back tax debt deal with back tax problems. While everybody has their own individual situation by speaking to us we could put together an individual plan that will help you move forward so you can stop the anxiety and worry that dealing with these back tax issues cause.
The Process of Back Taxes Help – How the government deals with back taxes
There’s a very particular format the Internal Revenue Service exercises in dealing with tax payers that owe back taxes.
You should know that the Internal Revenue Service is going to make sure that all your prior tax returns are filed and you are current in the present tax year of all withholding requirements.
This process is used by the Internal Revenue Service is called a full compliance check and is necessary on each case that is worked by the service center or by an IRS agent. It is critical before contacting the Internal Revenue Service you start the process of filing back tax returns if they are not currently filed.
IRS will want a current Financial Statement, Form 433-F.
IRS is then going to want to secure a current financial statement from you that reflects income and your current living expenses.
Internal Revenue Service will expect this financial statement to be fully verified proving all income and all necessary living expenses.
Internal Revenue Service will ask you to fill out a form 433F and either send or fax it to them along with all current documentation. You need to make sure the Internal Revenue Service receives this information before your last IRS bill or IRS notice L-1058.
If you do not contact the IRS prior to the expiration date of this letter you can expect the IRS to send out a bank levy, wage garnishment and possibly file the federal tax lien.
The Internal Revenue Service will also ask for your last pay stub, the last 3 to 6 months worth of bank statements and a complete explanation of all expenses taken on your financial statement.
You should be aware that the Internal Revenue Service has a national, regional and geographical expenses standards.
It is critical you familiarize yourself with this program or you will be in for a complete shock when IRS only allows you certain necessary living expenses.
After IRS fully reviewed your current financial statement they will make a determination on how they will deal with your case and as a general rule they fall into three categories.
Based on your financial statement the Internal Revenue Service may determine:
- that you are currently going through an economic tax hardship and they will place your case into a currently noncollectable file.
- The Internal Revenue Service may determine that you can make monthly or current installment payments, or
- the Internal Revenue Service may tell you that you are a suitable candidate for the offer in compromise or the settlement program on back taxes.
Some of the the new programs offer by the IRS and back taxes to help you the taxpayer.
The goal of the IRS is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
The changes include:
- Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
- Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
- Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
- Creating easier access to Installment Agreements for more struggling small businesses.
- Expanding a streamlined Offer in Compromise program to cover more taxpayers.
The New Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed.
The new dollar amount is in keeping with inflationary changes since the number was last revised.
Currently, liens are automatically filed at certain dollar levels for people with past-due balances. We understand that that new balance limitation is $10,000 total.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors.
Usually the government is not the only creditor to whom the taxpayer owes money.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter.
A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.
Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
Offers in Compromise or Tax Debt Settlements on Back Taxes
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements.
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.
Generally, an offer in compromise 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.
Back Taxes Help – Miami, Ft.Lauderdale, Palm Beaches – Affordable Tax Representation – South Florida
by Fresh Start Tax | Jul 11, 2013 | Back Taxes
If you are looking for help on your back tax on IRS tax debt contact us today to find out the different tax solutions and remedies to permanently resolve yourself of the back IRS tax debt.
We are staffed with tax attorneys, tax lawyers, certified public accountants, and former IRS agents, managers, and tax instructors who worked over 60 years in the local South Florida IRS offices.
Our firm is A+ rated by the Better Business Bureau and we had been in private practice right here in South Florida since 1982. We have worked thousands of cases As agents as private practitioners. We know every possible tax solution and tax remedy to help relieve you of your IRS tax debt and get you a fresh start so you are no longer burdened by your current IRS problem.
Contact us today for free initial tax consultation and we will be able to give you a no-cost tax assessment and explained the different remedies and solutions that are available to you. We’re the fast, friendly and affordable tax firm.
Some of the new IRS Programs through the new Fresh Start Initiative. but
Need help with a Federal Tax Lien on your Back Taxes
The Fresh Start program increased the amount that taxpayers can owe before the IRS generally will file a Notice of Federal Tax Lien. That amount is now $10,000. However, in some cases, the IRS may still file a lien notice on amounts less than $10,000.
When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien. Taxpayers must request this in writing using Form 12277, Application for Withdrawal.
Some taxpayers may qualify to have their lien notice withdrawn if they are paying their tax debt through a Direct Debit installment agreement.
If a taxpayer defaults on the Direct Debit Installment Agreement, the IRS may file a new Notice of Federal Tax Lien and resume collection actions.
Need a Installment Agreement or Payment Plan on your Back Taxes
The Fresh Start program expanded access to streamlined installment agreements. Now, individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years).
While the IRS generally will not need a financial statement, they may need some financial information from the taxpayer.
Taxpayers in need of installment agreements for tax debts more than $50,000 or longer than six years still need to provide the IRS with a financial statement.
In these cases, the IRS may ask for one of two forms: either Collection Information Statement, Form 433-A or Form 433-F.
Need to settle a Tax Debt on Back Taxes through a Offers in Compromise.
An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. Fresh Start expanded and streamlined the OIC program.
The IRS now has more flexibility when analyzing a taxpayer’s ability to pay. This makes the offer program available to a larger group of taxpayers.
Generally, the IRS will accept an offer if it represents the most the agency can expect to collect within a reasonable period of time. The IRS will not accept an offer if it believes that the taxpayer can pay the amount owed in full as a lump sum or through a payment agreement.
The IRS looks at several factors, including the taxpayer’s income and assets, to make a decision regarding the taxpayer’s ability to pay. Use the Offer in Compromise Pre-Qualifier Tool that you can find on our website to see if you qualify for IRS tax debt settlement called an offer in compromise.
These are just some of the programs that IRS has available through their fresh start initiative. Contact us today to hear other options and solutions based on your specific needs.
Remember there are no two cases the same and everyone needs to have their own individual plan developed to have success.
With over 60 years at the Internal Revenue Service we know every possible successful solution so you can move past this IRS situation in your life.
Back Taxes on IRS Debt, Affordable Former IRS Agents – Miami, Ft.Lauderdale – South Florida
