Amending Tax Returns – Filing Amended Back Tax Returns, Former Agents

by Fresh Start Tax | Apr 19, 2013 | Income Tax Preparation

Amending Tax Returns – Filing Amended Tax Returns, Former Agents  1-866-700-1040

 
Filing an Amended Tax Return
What should you do if you already filed your federal tax return and then discover a mistake?
Don’t worry.
Here is what to do. Should you have any questions feel free to contact us today to get help for amending your back tax returns.
1. Use Form 1040X, Amended U.S. Individual Income Tax Return, to file an amended tax return. An amended return cannot be e-filed. You must file it on paper.
2. You should consider filing an amended tax return if there is a change in your filing status, income, deductions or credits.
3. You normally do not need to file an amended return to correct math errors. The IRS will automatically make those changes for you. Also, do not file an amended return because you forgot to attach tax forms, such as W-2s or schedules.
The IRS normally will send a request asking for those.
4.Very Important Note ;  Generally, you must file Form 1040X within three years from the date you filed your original tax return or within two years of the date you paid the tax, whichever is later.
Be sure to enter the year of the return you are amending at the top of Form 1040X.
5. If you are amending more than one tax return, prepare a 1040X for each return and mail them to the IRS in separate envelopes.
You will find the appropriate IRS address to mail your return to in the Form 1040X instructions.
6. If your changes involve the need for another schedule or form, you must attach that schedule or form to the amended return.
7. If you are filing an amended tax return to claim an additional refund, wait until you have received your original tax refund before filing Form 1040X.
Amended returns take up to 12 weeks to process. You may cash your original refund check while waiting for the additional refund.
8. If you owe additional taxes with Form 1040X, file it and pay the tax as soon as possible to minimize interest and penalties.
 
Should you have any questions feel free to contact us today about amending your back income tax returns.
 

Filing Past Due Back Tax Returns with Former Agents – File & Settle all at Once

by Fresh Start Tax | Apr 19, 2013 | Income Tax Preparation

Filing Past Due Back Tax Returns with Former Agents – File & Settle all at Once   1-866-700-1040

 
 
You are not alone.
25 million taxpayers have not filed past due back tax returns with the Internal Revenue Service.
This is a much simpler process than taxpayers think and we can make that process seamless for you and get your life back in order and work out a tax settlement with the Internal Revenue Service so your worries go away.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors who have over 60 years of direct working knowledge and experience at the Internal Revenue Service.
We also taught tax law at the  IRS regional service centers.We have filed thousands of past due back tax returns.
We are tax experts in filing past due tax returns and settling your tax bill all at the same time.
 

The Process of Filing Past Due Tax Returns

 
There is a very specific process in Filing Past Due Back Tax Returns and also making sure the IRS does not file your back tax returns.
It also should be known that if you do not file your tax returns the IRS can file your back tax returns for you under 6020  of the Internal Revenue Code.
You want to make sure this does not happen to you if you do not file your tax returns at some point in time IRS is going to file for you.
IRS will make sure that you pay the highest amount allowed by law.
The Internal Revenue Service will only allow you the standard deductions and give you  no credit for absolutely no other deductions or expenses. IRS will then assess the tax liability against the taxpayer and will proceed to enforce the tax laws by sending out in IRS bank levy or IRS wage garnishment and possibly filing the dreaded federal tax lien.
 

IRS Code Section Allowing them to file Past Due Tax Returns – 6020

 
(a) Preparation of back due tax returns 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 process of filing past due back tax returns.

 
If you have your tax records the process is much simpler, we can simply prepare your back tax returns and work out a tax settlement with the IRS. We will file the last 3 to 6 years depending on your case and go over your tax settlement options with you.
 

If you have little or no records to file Past Due Back Tax Returns

 
We as your power of attorney will contact the Internal Revenue Service and have them provide us with all of the income information they have received over the past seven years. IRS keeps the log of anyone who issued you 1099, and/or W-2 reporting income. The Internal Revenue Service will send us those logs and we will have a basis to prepare your individual or business income tax returns.
From there we will find out what deductions or expenses you have and carefully review your tax return to make sure you are paying the lowest amount allowed by law and submit those  past-due back tax returns to the Internal Revenue Service.
 

If you should owe tax as a result of filing past-due back tax returns Tax Settlements.

 
If you will all money as a result of filing past due back tax returns we will submit a current financial statement to the Internal Revenue Service along with all documentation proving the accuracy of your financial statement.
On each and every case where a taxpayer owes money on back taxes or back tax debt the IRS will require a form 433-F be submitted to them to work out a tax settlement called an offer in compromise.
The offer in compromise program or the IRS tax debt settlement program has very specific criteria on how to go ahead and be approved by the IRS to reduce your  tax debt and pay pennies on a dollar.
Since every case is different and every taxpayer’s financial statement is different it is best to contact us today for free tax consultation so we can go over the different tax settlement programs the IRS has in place to go ahead and permanently in immediately resolve your IRS tax situation.
The new IRS program to settle back taxes is called the fresh start initiative or the fresh start program.
You can learn more about that by reading on our site or contacting us directly on how to best settle your tax debt.
Contact us today and speak directly or tax attorney, certified public accountant, or former IRS agent, manager tax instructor who can give you the best advice possible on how to file past due tax returns and settle your debt once and for all.
 
Under the current Fresh Start initiative the IRS has incorporated its Streamlined Offer in Compromise process into the overall investigation of offers and has added flexibility to the financial analysis used in evaluating offers.
The Streamlined Offer in Compromise process includes:
a. Fewer requests for additional financial information
b. If necessary, requests for additional information by phone, not by mail
c. Greater flexibility when considering your ability to pay
The changes to financial analysis add more flexibility to the OIC process including:
1. Greater flexibility in determining the equity in assets
2. Greater flexibility in determining the allowable living expenses
3. Reducing the amount of future income included in the offer
4. Decreased time frame to complete the OIC payment process to two years
Let us take the pain out of your life call us today to file past back do tax returns and settle your case.
 
Filing Past Due Back Tax Returns with Former Agents – File & Settle all at Once
 
 
 
 

Income Tax Mistakes Most Commonly Made – Avoid these Tax Mistakes

by Fresh Start Tax | Apr 9, 2013 | Income Tax Preparation

 
Income Tax Mistakes Most Commonly Made – Avoid this Tax Mistakes
 
 
The IRS finds certain tax times mistakes over and over and wants to remind all the players involved, “heads up, keep your eye on the ball.”
So here goes:
If you make a mistake on your tax return, it usually takes the IRS longer to process it.
The IRS may have to contact you about that mistake before your return is processed. This will delay the receipt of your tax refund.
The IRS reminds filers that e-filing their tax return greatly lowers the chance of errors. In fact, taxpayers are about twenty times more likely to make a mistake on their return if they file a paper return instead of e-filing their return.
 

Common errors to avoid.

 
1. Wrong or missing Social Security numbers.
Be sure you enter SSNs for yourself and others on your tax return exactly as they are on the Social Security cards.
 
2. Names wrong or misspelled.
Be sure you enter names of all individuals on your tax return exactly as they are on their Social Security cards.
 
3. Filing status errors.
Choose the right filing status.

There are five filing statuses:

1.  Single,
2.  Married Filing Jointly,
3. Married Filing Separately,
4. Head of Household and,
5. Qualifying Widow(er) With Dependent Child.

 
See Publication 501, Exemptions, Standard Deduction and Filing Information, to help you choose the right one.
E-filing your tax return will also help you choose the right filing status.
 
4. Math mistakes.
If you file a paper tax return, double check the math. If you e-file, the software does the math for you. For example, if your Social Security benefits are taxable, check to ensure you figured the taxable portion correctly.
 
5. Errors in figuring credits, deductions.
Take your time and read the instructions in your tax booklet carefully. Many filers make mistakes figuring their Earned Income Tax Credit, Child and Dependent Care Credit and the standard deduction.
For example, if you are age 65 or older or blind check to make sure you claim the correct, larger standard deduction amount.
 
6. Wrong bank account numbers.
Direct deposit is the fast, easy and safe way to receive your tax refund. Make sure you enter your bank routing and account numbers correctly.
 
7. Forms not signed, dated.
An unsigned tax return is like an unsigned check – it’s invalid. Remember both spouses must sign a joint return.
 
8. Electronic signature errors.
If you e-file your tax return, you will sign the return electronically using a Personal Identification Number.
For security purposes, the software will ask you to enter the Adjusted Gross Income from your originally-filed 2011 federal tax return.
Do not use the AGI amount from an amended 2011 return or an AGI provided to you if the IRS corrected your return.
You may also use last year’s PIN if you e-filed last year and remember your PIN.
 
Income Tax Mistakes Most Commonly Made

Income Tax Preparation – How to know when to Itemize or use the Standard Deduction – Tax Tips

by Fresh Start Tax | Mar 20, 2013 | Income Tax Preparation

Income Tax  Service – How to know when to Itemize or use the Standard Deduction   1-866-700-1040

 
As a Former IRS agent I cannot tell you how many times I am asked this question.
Find below a very simple guideline on how to know the difference.
 

Itemizing vs. Standard Deduction

 
When you file a tax return, you have to make a choice to whether to itemize deductions or take the standard deduction.
You should  always compare both methods and use the one that gives you the greater tax benefit.
Use  these six facts to help you choose.
1. Figure your itemized deductions.
You should add up the cost of items you paid for during the year that you might be able to deduct.
Expenses could include home mortgage interest, state income taxes or sales taxes (but not both), real estate and personal property taxes, and gifts to charities.
They may also include large casualty or theft losses or large medical and dental expenses that insurance did not cover. Unreimbursed employee business expenses may also be deductible.
2. Know your standard deduction.
If you do not itemize, your basic standard deduction amount depends on your filing status. For 2012, the basic amounts are:
• Single = $5,950
• Married Filing Jointly = $11,900
• Head of Household = $8,700
• Married Filing Separately = $5,950
• Qualifying Widow(er) = $11,900
3. Apply other rules in some cases.
Your standard deduction is higher if you are 65 or older or blind. Other rules apply if someone else can claim you as a dependent on his or her tax return.
To figure your standard deduction in these cases, use the worksheet in the instructions for Form 1040, U.S. Individual Income Tax Return.
4. Check for the exceptions.
Some people do not qualify for the standard deduction and should itemize. This includes married people who file a separate return and their spouse itemizes deductions. See the Form 1040 instructions for the rules about who may not claim a standard deduction.
5. Choose the best method.
Compare your itemized and standard deduction amounts. You should file using the method with the larger amount.
6. File the right forms.
To itemize your deductions, use Form 1040, and Schedule A, Itemized Deductions. You can take the standard deduction on Forms 1040, 1040A or 1040EZ
 
 
 
Income Tax  Preparation – How to know when to Itemize or use the Standard Deduction
 
 

Tax Return Preparation by Former Local IRS Agents – Pompano, Deerfield Beach, Boca Raton – Tax Return Services

by Fresh Start Tax | Mar 8, 2013 | Income Tax Preparation

Tax Return Preparation by Former IRS Agents – Pompano, Deerfield Beach, Boca Raton – Tax Return Services   954-492-0088

 
Who better to prepare your tax return than former IRS agents, managers, and tax instructors.
With over 60 years of working directly for the Internal Revenue Service in the local South Florida  IRS offices we can assure that you will pay the lowest amount of tax allowed by law.
As a result over 60 years at the Internal Revenue Service we know all the tax codes, tax  and every possible tax deductions allowed by law. For some reason if your return is audited we can completely defend any issue you may have with the Internal Revenue Service.
We are a full service tax firm and have been practicing right here in South Florida since 1982. We are A+ rated by the Better Business Bureau.
Come by and visit us today. Part of the goal fresh start tax is to build long-term relationships with all our clients. If you have not filed for several years we can go ahead and prepare all your back tax returns and do a complete tax reconstruction if needed so you never have to worry about dealing with the Internal Revenue Service.
We have prepared thousands of return since 1982 and we are pleased to tell you we have an A+ rating by the Better Business Bureau. Call us today if you have any questions or you can Skype at freshstarttax.
 
 

Tax Tips from Fresh Start Tax LLC Barter

 
Here are four facts about bartering:
1. Barter exchanges.
A barter exchange is an organized marketplace where members barter products or services. Some exchanges operate out of an office and others over the internet. All barter exchanges are required to issue Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, annually. The exchange must give a copy of the form to its members and file a copy with the IRS.
2. Bartering income.
Barter and trade dollars are the same as real dollars for tax reporting purposes. If you barter, you must report on your tax return the fair market value of the products or services you received.
3. Tax implications.
Bartering is taxable in the year it occurs. The tax rules may vary based on the type of bartering that takes place. Barterers may owe income taxes, self-employment taxes, employment taxes or excise taxes on their bartering income.
4. Reporting rules.
How you report bartering varies depending on which form of bartering takes place. Generally, if you are in a trade or business you report bartering income on Form 1040, Schedule C, Profit or Loss from Business. You may be able to deduct certain costs you incurred to perform the bartering.
 

Areas of Professional Tax Practice:

• Same Day IRS Tax Representation
• Offers in Compromise or IRS Tax Debt Settlements
• Immediate Release of IRS Bank Levies or IRS Wage Garnishments
• Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
• IRS Tax Audits
• IRS Hardships Cases or Unable to Pay
• Payment Plans, Installment Agreements, Structured agreements
• Abatement of Penalties and Interest
• State Sales Tax Cases
• Payroll / Trust Fund Penalty Cases / 6672
• Filing Late, Back, Unfiled Tax Returns
• Tax Return Reconstruction if Tax Records are lost or destroyed

Our Company Resume: ( Since 1982 )

• Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
• On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
• We taught Tax Law in the IRS Regional Training Center
• Former IRS Agents, Managers and Instructors with over 60 years experience  in the local, district and regional IRS offices.
• Highest Rating by the Better Business Bureau  “A”
• Fast, affordable, and economical
• Licensed and certified to practice in all 50 States
• Nationally Recognized Veteran /Published  Former IRS Agent
• Nationally Recognized Published EZINE Tax Expert
• As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly