by Fresh Start Tax | Nov 20, 2012 | Back Taxes, IRS Representation, Tax Returns
Have not filed Back Tax Returns – Former IRS Agents can take the worry away – IRS Notice CP 5919 Call for immediate resolution 1-866-700-1040.
We can file your back taxes and settle your case.
We taught IRS Tax Law and know all the procedures to settle and close your case.
How the IRS works non-filers.
IRS Enforcement of Non-Filers.
IRS has different ways to identify non filers. IRS can find out through spouses, businesses, other State or Government Agencies and through W-2, 1099 matches.
The only obligation that the IRS has is to attempt to contact the taxpayer at the last known address.
So once non-filer taxpayers have been identified, “soft notices” such as the CP 5919 or CP25920 are sent notifying the taxpayer that a return(s) has not been filed.
As to the individual taxpayer, the notice informs the non-filer that he will need to contact the IRS if he doesn’t believe a tax return is due, or to seek assistance with filing and payment of tax if one is due.
Once the soft notice letter is sent with no response received, a second letter or notice similar to (Letter 4903) is sent prior to an SFR being prepared and a tax assessed.
If the IRS does not hear from the taxpayer(s), and it already has information available, through Forms W-2, 1099, etc., it will create an SFR or Substitute For Return as the next step. Sometimes it may attempt to contact the taxpayer by telephone, or it may assign the case to the field.
The IRS uses the SFR ( substitute for return ) as a last alternative only after making attempts to contact the taxpayer by phone or in person since those approaches may be more effective.
When the SFR is sent to the taxpayer, it may prompt the taxpayer to file a correct return since an SFR does not allow for deductions, exemptions, credits, etc., and simply shows the income that the IRS has confirmed from third party input. IRS will do you no favors when they prepare the return. You will owe the highest tax.
Overinflated tax numbers are provided creating an SFR will be the impetus for the taxpayer to come to talk to the IRS.
If the SFR has been prepared and the taxpayer is still not in contact with the IRS, the IRS has other programs that can be used to assist in developing and maintaining taxpayer compliance to pay the tax assessed by the SFR, including the Withholding Compliance and the Refund Hold programs.
In combination, the SFR, Withholding Compliance and Refund Hold programs not only provide a way to pay the assessment, but further encourage the taxpayer to contact the IRS or to file a return in hopes of obtaining a refund based on actual deductions and credits that are not available through the SFR program.
Call us today to get immediate tax help. We can file your returns and work out a tax settlement. 1-866-700-1040.
Have NOT FILED Back Tax Returns – Former IRS Agents can take the worry away – IRS Notice CP 5919, CP 25920, Letter 4903
by Fresh Start Tax | Nov 11, 2012 | Back Taxes, Expatriate Tax, FBAR, IRS Representation, IRS Tax Debt, IRS Tax Problem, Tax Lawyer, Tax Returns, Tax Settlements
Australia- FBAR, EXPAT – Attorney, Lawyers, Former IRS – Filing, Penalties, Settlement – Affordable Tax Experts
Do not be bullied by the IRS. Find out the truth about FBAR disclosures to the IRS.
You have options. We can file and settle your case.
Call us today, we are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents, Managers and Instructors. 1-866-700-1040.
We have over 206 years of total tax experience and over 60 years of direct IRS experience in resolving IRS tax issues and tax problems. We are a full service tax firm with all work being done in house by true tax experts.
We are true Tax Experts of FBAR and Expatriate Tax Issues.
There is a great deal on the web and in press releases that has scared many FBAR filers and Expats into taking position on the filing of FBAR that makes one believe that everything must go through Criminal Investigation.
The reality is that few taxpayers are tax criminals. What is so sad it that the IRS has scared everyone to death regarding FBAR.
The truth be told you have the option of making a Silent Disclosure.
Some taxpayers have already made quiet disclosures by filing amended returns.
Before a decision is made on each case, a tax attorney or tax lawyer will use a set of facts particular to that case. There are no two cases the same, each has a unique set of circumstances.
With that said Quiet Disclosure are not for everyone that is why a careful review must be made on each case.
Taxpayers with unreported foreign bank accounts present themselves and their professional advisers with a bunch of very important important decisions they need to make.
These tax and filing decisions must be made based on a very careful review of all material, information, an understanding of the potential tax penalties and interest involved, and the exposure to any other financial crimes, criminal implications or tax penalties.
Regardless of how tempting under no circumstances should Attorneys or Lawyers and taxpayers ignore reporting tax and FBAR tax requirements simply because the IRS has not yet raised the issue in the client’s specific case.
Our rule of thumb, find IRS before they find you.
How the process works.
The IRS does review amended returns and could select any amended return for examination.
If a tax return is selected for examination, the 20 percent offshore penalty would not be available.
Criminal Behavior
When criminal behavior is evident and the disclosure does not meet the requirements of a voluntary disclosure under IRM 9.5.11.9, the IRS may recommend criminal prosecution to the Department of Justice.
Taxpayers who have already made quiet disclosures but have not yet been selected for examination may take advantage of the penalty framework applicable to voluntary disclosure requests regarding unreported offshore accounts and entities, provided they otherwise meet the criteria for voluntary disclosure set forth in IRM 9.5.11.9.
Call us for more detail. 1-866-700-1040. Privileged conversation with a tax attorney or tax lawyers.
What possible forms are needed to be Filed with the IRS ?
Besides federal income tax returns, what forms or other returns must be filed?
The following forms must be filed:
a. Copies of original and amended federal income tax returns for tax periods covered by the voluntary disclosure,
b. Complete and accurate amended federal income tax returns (or original returns, if not previously filed) of the taxpayer for all tax years covered by the voluntary disclosure;
c. An explanation of previously unreported or under reported income or incorrectly claimed deductions or credits related to undisclosed foreign accounts or undisclosed foreign entities, including the reason(s) for the error or omission,
d. If the taxpayer is a decedent’s estate, or is an individual who participated in the failure to report the foreign account or foreign entity in a required gift or estate tax return, either as executor or advisor, complete and accurate amended estate or gift tax returns (original returns, if not previously filed) necessary to correct the under reporting of assets held in or transferred through undisclosed foreign accounts or foreign entities;
Complete and accurate amended information returns required to be filed by the taxpayer, including, but not limited to,
a. Tax Forms 3520,
b. 3520-A,
c. 5471,
d. 5472,
e. 926 and
f. 8865 (or originals, if not previously filed) for all tax years covered by the voluntary disclosure, for which the taxpayer requests relief; and
Complete and accurate Form TD F 90.22-1, Report of Foreign Bank and Financial Accounts, for foreign accounts maintained during calendar years covered by the voluntary disclosure.
Call us today for more details and find you the truth. you do not have to be worried. 1-866-700-1040
by Fresh Start Tax | Nov 10, 2012 | Back Taxes, IRS Tax Advice, IRS Tax Problem, Tax Help, Tax Relief
Cannot Pay the IRS – Ask IRS for Tax Hardship or Noncollectable – IRS Tax Relief Today
Call us today for a no cost consultation and speak directly to a Former IRS Agent, Attorney or a CPA.
We have over 206 years of professional tax experience and over 60 years of working directly for the IRS. 1-866-700-1040.
If you cannot pay the IRS you may be able to qualify for a Tax Hardship or a Noncollectable Status if you qualify. If your current expenses exceed your income you may have a chance to get your tax case suspended for a period of time.
Most of the cases that have past due balances over 4 months old, the IRS will not be able to collect in full at the current time.
The Internal Revenue Service has different programs in which taxpayers qualify to close their cases off of the IRS Collection enforcement Computer call the CADE 2.
There are at best guess over 25 million cases on the system that the IRS has made arrangements because the taxpayers do not have the ability to pay the tax in full. These back tax cases involve individual, payroll, excise, estate and a variety of other taxes.
From a common sense standpoint, all taxpayers cannot pay their tax obligations on time so the IRS has made other provisions to deal with back taxes.
The IRS will require a documented Financial statement. These financial statements are found on IRS form 433A or a 433F. When sent to the IRS they must include all attachments to prove the validity of the figures found on the form.
Besides this form the taxpayer will have to have all tax returns filed and current.
The three most common way taxpayers can close case once IRS reviews a current financial statement.
IRS will consider these closing methods:
1. Hardship, the inability to pay the tax off at the current time and unable to make monthly installment agreement due to a lack of income. The taxpayer qualifies for a Tax Hardship or Noncollectable Status.
2. Installment agreements,the taxpayer has the ability to make current monthly payments,
3. Offers in Compromise, the taxpayer has the ability to consider a tax settlement with the IRS.
What is a Economic Hardship
When a taxpayers liability can be collected in full but collection would create an economic hardship, an ETA offer based on economic hardship can be considered.
The definition of economic hardship as it applies to ETA offers is derived from Treasury Regulations § 301.6343-1.
A IRS Economic hardship occurs when a taxpayer is unable to pay reasonable basic living expenses.
The IRS determination of a reasonable amount for basic living expenses will be made by the Commissioner and the representatives and will vary according to the unique circumstances of the individual taxpayer.
Because economic hardship is defined as the inability to meet reasonable basic living expenses, it applies only to individuals (including sole proprietorship entities).
Tax Compromises on economic hardship grounds is not available to corporations, partnerships, or other non-individual entities.
The taxpayers financial information and special circumstances must be examined by the IRS to determine if they qualify for an ETA offer based on economic hardship.
The Financial analysis includes reviewing basic living expenses as well as other considerations.
The taxpayer’s income and basic living expenses must be considered to determine if the claim for economic hardship should be accepted. Basic living expenses are those expenses that provide for health, welfare, and production of income of the taxpayer and the taxpayer’s family.
There are national and local standard expense amounts are designed to provide accuracy and consistency in determining taxpayer’s basic living expenses.
These standards are guidelines and if it is determined that a standard amount is inadequate to provide for a specific taxpayer’s basic living expenses, allow a deviation.
In addition to the basic living expenses, other factors to consider that impact upon the taxpayers financial condition include:
a. the taxpayers age and employment status,education,
b. Number, age, and health of the taxpayers dependents,
c. Cost of living in the area the taxpayer resides, and
d. Any extraordinary circumstances such as special education expenses, a medical catastrophe, or natural disaster.
e. past history and income made over the past 3 years.
This list is not all-inclusive. Other factors may be considered in making an economic hardship determination.
Some factors that support an economic hardship determination may include:
1. The taxpayer is incapable of earning a living because of a long term illness, medical condition or disability, and it is reasonably foreseeable that the financial resources will be exhausted providing for care and support during the course of the condition.
2. The taxpayer may have a set monthly income and no other means of support and the income is exhausted each month in providing for the care of dependents.
3. The taxpayer has assets, but is unable to borrow against the equity in those assets, and liquidation to pay the outstanding tax liabilities would render the taxpayer unable to meet basic living expenses.
Some of these factors are representative of situations the Service regularly encounters when working with taxpayers to resolve delinquent accounts.
They are not intended by the IRS to provide an exhaustive list of the types of cases that can be compromised based on economic hardship.
Call us today to find out more and speak directly to a tax professional. 1-866-700-1040
by Fresh Start Tax | Nov 5, 2012 | Back Taxes, Representation, Tax Audit, Tax Settlements
IRS Taxes – Owe, File Back Tax Returns, Tax Audit, Settlements
Stop the worry today, let our years of experience work for you.
Let Former IRS agents resolve your tax issues! Our 60 years of IRS experience can be your best friend.
We are friendly and affordable. A plus rated by the Better Business Bureau.
If you are having back IRS tax issues or problems call us today to contact a true tax professional that can completely and permanently resolve your IRS problem and tax issues.
Local Tax Experts.
Fresh Start Tax – 1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
You will speak directly to a Tax Attorneys, Tax Lawyers, CPA’s, Enrolled Agents or Former IRS Agents, Managers and Instructors.
With over 206 years of IRS expereince and over 60 years of working directly for the IRS in the local, district and regional office we can fully stop the IRS today.
Owing Back Taxes, Filing Back Tax Returns, Tax Audit
IRS is pretty straight forward if you owe back taxes. The IRS will take a IRS financial statement to determine how your case will be closed. The IRS form of choice if the 433 A or the 433F. The form choice that is used by the IRS is solely determined on who at the IRS is working your case.
The ASC Unit will use the 433F and the local office will use the longer 433A.
You will have to make sure you fully document the form so make sure you fill out a accurate financial form. you will sign this form under penalties of perjury. Being a Former IRS Agent, I would recommend any taxpayer have a true professional give IRS the financial statement. Usually a true tax pro can get you the result you need.
Filing Back Tax Returns.
We find many taxpayers who owe back taxes have past due returns to file.
We can file all your back taxes with little or no tax records. We pull up an income transcript that is available to tax practitioners and use that as a basis to start your back return preparation. We can file back returns quickly so do not be discouraged if you do not have your tax records. If you are going to owe tax, we can work out a tax settlement.
IRS Tax Audit.
We have many former IRS Agents on staff who worked in the Audit/Appeals Division of the IRS.
We have former agents, managers and appeals agents. We can handle any tax audit and appeals that you may have. IRS Tax Audits are very lengthy. If your tax return is 100% accurate we encourage you to go in to the IRS by yourself, however if your tax return has questionable issues the last thing you want to do is to walk in to the IRS agent without a tax representation. We can review your return for no charge and offer an opinion.
Tax Debt Settlements
An offer in compromise or a tax debt settlement allows you to settle your tax debt for less than the full amount you owe.
It may be a legitimate option if you cannot pay your full tax liability, or doing so creates a financial hardship.
After IRS reviews a 433OIC the settlement offer form, IRS will also consider your unique set of facts and circumstances including your
a. Ability to pay;
b. Income;
c. Expenses; and
d. Asset equity.
IRS can generally approve an offer in compromise or Tax debt settlements when the amount offered represents the most the IRS can expect to collect within a reasonable period of time.
The Internal Revenue Service will also explore all other payment options before accepting a offer in compromise.
The Offer in Compromise program is not for everyone. IRS accepts about 15,000 tax debt settlements a year nation wide.
If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
Call us today 1-866-700-1040 for a free tax review of your case.
IRS Taxes – Owe, File Back Tax Returns, Tax Audit, Debt Settlements – Costa Mesa, Long Beach, Anaheim, Glendale, Santa Ana, Orange, Irvine, Newport – IRS Tax Experts
by Fresh Start Tax | Nov 5, 2012 | Back Taxes, IRS Notice or Letter, IRS Tax Debt, IRS Tax Problem, Tax Help, Tax Settlements
Mr. Sullivan is a tax resolution expert. He is a Former IRS Agent and a Teaching Instructor with the Internal Revenue Service.
His firm Fresh Start Tax LLC 1-866-700-1040 is comprised of Board Certified Tax Attorneys, CPA’s and other Former IRS Agents, Managers and Instructors.
If you want to make sure you qualify for the Current non Collectable Program ( Economic Hardship, CNC ) if you cannot pay the IRS, it is best to check with a true tax professional. This can completely change your life. It will certainly help you for a season in time.
Economic Hardship- Cannot Pay the IRS Back Taxes
As a Former IRS agent I can tell you there is a program within the IRS-IRM that allows taxpayers who cannot pay there tax bills at the present time, the program is called Economic Hardship. It is obvious why the IRS does not publicize the program, everyone in the world would want there case placed in this file.
To qualify for the Program the taxpayer will have to produce a IRS financial statement. You can find those forms on our home page website under IRS Forms.
Depending where your case is in the IRS computer system you will have to provide a Form 433A ( used by local offices and Revenue Officers ) or the 433F which is used by the ASC Units while the taxpayer is still in letter or notice status.
The Financial Statement must be completely filled in and have all relative documents attached to provide support to the fact you cannot pay the bill on back taxes you owe.
It should be noted that these cases are also call Current Non Collectable or CNC as it is known in the business.
This is not a forever thing. It is also critical to know that these cases go in to this status for a season in time. IRS reviews these cases from time to time.
When the IRS determines to put your case in Hardship Status, few persons know how and why these cases come back out to the field or back into the IRS collection system. Having been a former IRS Agent, I had placed hundreds of cases in the currently non collectible status.
These IRS tax cases Hardship, current not Collectable ) come back out to the ASC Unit or the IRS field office because of only three reasons:
1. The closing Revenue Officer working the case places a mandatory follow-up date on the file. Each Revenue Officer is different. They get a feel for the case based on the financial statement and the asset check that was made during the course of the investigation. Sometimes it is a hunch, other times you get a feel that income may increase at a given time. This mandatory follow-up date is strictly up to the reviewing Revenue Officer.
The manager has the last say on the closing code however most of the time it is left up to the discretion of the RO.
2. A certain closing code is placed on the back taxes case. If the Revenue Officer does not mandate a certain follow-up date, a closing code based on AGI is put on the case. For example, let’s say the closing code is 50.
This means is when the taxpayer reaches $50,000 in a AGI (adjusted gross income), the case will trigger back to the field. Once again, each Revenue Officer makes their own decision.
3. The statute is about to expire. Certain cases will trigger because the ten year statute of limitation on these back taxes is about to expire. These back tax cases usually come out 1 year before the 10 year statute. These are usually large dollar cases.Small cases usually do not get much attention.
The only other way a case may come back to the field is because a Congressional inquiry was made.
The IRS Definition of Economic Hardship
A IRS Economic Hardship ( Cannot Pay the IRS ) occurs when a taxpayer is unable to pay reasonable basic living expenses.
The determination of a reasonable amount for basic living expenses will be made by the IRS Commissioner and will vary according to the unique circumstances of the individual taxpayer. Unique circumstances, however, do not include the maintenance of an affluent or luxurious standard of living.
IRS has a National and Regional Tests
IRS will review your 433A or 433F and compare it to the National or Regional Standards. You must fall within the guideline of the established guideline by your case will be considered for Cannot Pay or an Economic Hardship.
What are the National Standards.
National Standards: Food, Clothing and Other Items
National Standards have been established for five necessary expenses:
1.food,
2. housekeeping supplies,
3.apparel and services,
4. personal care products and services,
5.and miscellaneous.
The National Standard for Food, Clothing and Other Items includes an amount for miscellaneous expenses. This miscellaneous allowance is for expenses taxpayers may incur that are not included in any other allowable living expense items, or for any portion of expenses that exceed the Collection Financial Standards and are not allowed under a deviation.
The standards are derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey (CES).
The survey collects information from the Nation’s households and families on their buying habits (expenditures), income and household characteristics.
IRS also has standards for Housing and Utilities Expenses and also for vehicle and operating costs. See our homepage toolbar, IRS forms.
What the IRS has done to help taxpayers with current Hardships
a. Added Flexibility for Missed Payments.
The IRS is allowing more flexibility for individuals with existing Installment Agreements who have difficulty making payments because of a job loss or other financial hardship. Depending on the situation, the IRS may allow a skipped payment or a reduced monthly payment amount. Taxpayers in this situation should contact the IRS.
b. Additional Review for Offers in Compromise on Home Values.
An Offer in Compromise (OIC), an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than full amount owed, may be a viable option for taxpayers experiencing economic difficulties.
However, the equity taxpayers have in real property can be a barrier to an OIC being accepted. With the uncertainty in the housing market, the IRS recognizes that the real-estate valuations used to assess ability to pay are not necessarily accurate. So in instances where the accuracy of local real-estate valuations is in question or other unusual hardships exist, the IRS is creating a new, second review of the information to determine if accepting an offer is appropriate.
c. Prevention of Offer in Compromise Defaults.
Taxpayers who are unable to meet the periodic payment terms of an accepted OIC will be able to contact the IRS office handling the offer for available options to help them avoid default.
d. Postponement of Collection Actions.
IRS employees will have greater authority to suspend collection actions in hardship cases where taxpayers are unable to pay. If an individual has recently encountered a job loss or other financial problem, IRS assistors may be able to suspend collection in some situations without documentation to minimize burden on the taxpayer.
e. Expedited Levy Releases.
The IRS will speed the delivery of levy releases by easing requirements on taxpayers who request expedited levy releases for hardship reasons. Taxpayers seeking expedited releases of levies to an employer or bank should contact the IRS number shown on the notice of levy to discuss available options. When calling, taxpayers requesting a levy release due to hardship should be prepared to provide the IRS with the fax number of the bank or employer processing the levy.
Call us today to see if qualify for the Hardship Program, 1-866-700-1040
Cannot Pay the IRS Back Taxes – You can Ask for a Economic Hardship – Former IRS Teaching Instructor
by Fresh Start Tax | Oct 30, 2012 | Back Taxes, California Tax, IRS Payment Plans, IRS Representation, IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Tax Help
Back Tax Relief – Late, Unfiled, Past Due Tax Returns – Hire Former IRS Agents 1-866-700-1040
We are a professional tax firm with over 205 years of professional tax experience. We have over 60 years of direct working experience with the IRS in the local, district and regional offices of the IRS.
We taught Tax Law at the IRS.
We know the system so stop the worry NOW!
We can get you immediate tax relief, so stop your worry today and contact us for a no cost professional tax consult. 1-866-700-1040.
If you have back, late, unfiled or past due tax returns with or without records we can file your back tax returns. We will also settle your case with the Internal Revenue Service.
We are friendly, local and affordable.
Fresh Start Tax LLC
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
If you have a back tax issue it is best to resolve the issues before you force the hand of IRS to take enforcement action. Believe it or not the IRS does not want to levy or lien.
Because of a lack of response from the taxpayer, the IRS system and the CADE 2 computer automatically generates federal tax liens and federal tax levies.
We can stop the IRS usually with on telephone call from an experienced tax representative.
What IRS will request.
IRS will request all your tax returns to be filed. They will usually give us a 30 day window to prepare all tax returns. During that process the IRS will usually suspend all collection and enforcement action on your case. Liens and levies will usually not be filed.
A Decision to Make
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. We will talk over this situation with both spouses so the IRS cannot tie up joint assets.
Payment Agreements to the IRS
If you owe less than $50,000, you can get a streamline agreement automatically. Just call us today, 1-866-700-1040. We will not require a financial statement and can usually close your case out within the week.
Beware of Pension Plans or IRA’s
If you have a pension, 401K or IRA, the IRS can or will ask if you can liquidate it to pay the taxes. Find out beforehand if you can liquidate.Find out the consequences of doing so. If you owe under $50,000 this will not apply to you.
Can you settle your case?
Find out whether you qualify for an Offer in Compromise. An OIC can suspend IRS collection action. IRS will look at your assets and your income to make a determination. If you complete a 433OIC we will review your case and tell your whether you qualify for a Offer in Compromise. If IRS accepts the Offer your tax lien will be released.
Be current with your taxes.
Make sure you are current for withholding or estimated payments in the current year of the tax problem. IRS will verify that you have enough withholding being taken out of your check so you do not incur more taxes. You can adjust your W-2 or your 1040 ES payments.
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.
Call us today and get some of the best tax professionals in the business for affordable prices, 1-866-700-1040.
Back Tax Relief – Late, Unfiled, Past Due Tax Returns – Costa Mesa, Anaheim, Newport, Glendale, Orange, Long Beach, Fullerton, Luguna – IRS Experts
