by Jim Magary | Feb 10, 2015 | IRS Tax Advice
It is very possible to stop the IRS by the filing of a valid offer in compromise. Call us today for four more details and speak to a true South Florida tax firm that specialized in the filing of offering compromise.
We know the system, I am a former IRS agent revenue officer who taught the offer in compromise program while employed at the South Florida IRS offices.
Withholding Collection
1. If a taxpayer who is currently paying a tax liability through an installment agreement submits an offer, see IRM 5.8.4 for additional guidance.
2.For offers pending on or after December 31, 1999, collection by levy on property owned by the offer taxpayer is prohibited while the offer is pending unless collection is in jeopardy.
3The term jeopardy is defined in Policy Statement P-4-88. Collection is not considered to be in jeopardy because an undisclosed asset was discovered during the investigation.
4.Upon receiving information that a jeopardy levy has been approved, contact the employee issuing the levy. If it is agreed that the offer was filed to hinder or delay collection, follow procedures in IRM 5.8.4 (Solely to Delay) to return the offer.
5. The prohibition on levy does not require release of a levy that was served prior to the offer submission. The taxpayer’s circumstances should be considered when making a determination to release a levy or keep it in place while the offer is pending.
Note:
Collection by levy is not prohibited (and the collection statute is not suspended) if the taxpayer has filed a written notice waiving the restrictions on levy. However, if the taxpayer submitted the Form 656 altering any of the provisions of Form 656, Section V, the offer should be immediately deemed a processable return based on an altered Form 656.
6.While an offer is pending there is no prohibition on filing notices of federal tax lien. See IRM 5.8.4 (Notice of Federal Tax Lien Filing) for a discussion of filing a notice of federal tax lien while an offer is pending.
7. The Form 656 states the Service may file suit or levy to collect the original amount of the liability if the taxpayer defaults the terms or conditions of an accepted offer. Even though the Form 656 states the Service may levy without notification, IRC Section 6331 requires the Service to provide notice to the taxpayer before a levy is made on the taxpayer’s property.
8.All collection action must be suspended when a taxpayer is identified as being located in a Combat Zone (CZ) area. This action includes filing of a Notice of Federal Tax Lien. See IRM 5.19.1.4.10.4, Combat Zone Freeze Codes, for additional information.
by Fresh Start Tax | Dec 5, 2013 | IRS Tax Advice, IRS Tax Audit, Tax Help
IRS Audit Notice Tax Help – For Best Results Use Former IRS Agents
Being Former IRS Agents and Managers we can tell you,it is not in your best interest to represent yourself during a IRS audit.
The IRS auditor has the ability to dig deeper into your tax return or go forward into another year. You must be careful what you say because sometimes you could dig a little deeper hole.
I should also say if you have a squeaky clean tax return and no skeletons in the closet I see no reason at all why you cannot represent yourself during an IRS tax audit.
You only call a tax professional when you receive an IRS audit notice and truly need tax help because you are not sure some of the issues on your tax return.
Facts of IRS Audits
The Internal Revenue Service audits 1.03% of all tax returns filed.
If you have just received an IRS audit notice contact us today and get the professional tax help you need. We are the affordable tax firm. We provide expert IRS Audit Notice Help.
Nationwide the IRS audits 1.5 million tax returns per year. 359,000 are actually audited by local IRS agents and rest are by mail or correspondence tax audits.
IRS collects $10.2 billion a year as a result of IRS audits by field agents and $5.2 billion a year by document matching programs.
What is an IRS audit?
An IRS audit is a review, examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.
The Tax Audit Selection Process
Selecting a return for audit does not always suggest that an error has been made.
Returns are selected using a variety of methods including:
- Random selection and computer screening , sometimes returns are selected based solely on a statistical formula.
- Document matching, when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
- Related examinations, returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.
- Sometimes tax returns are audited because spouses and ex-employees report findings to the Internal Revenue Service.
Audit Methods
An audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit).
The IRS will tell you what records are needed.
Audits can result in no changes or changes. Any proposed changes to your return will be explained in writing.
Audit Notification
Should your account be selected for audit, you will be notified in two ways:
1. By mail, or
2. By telephone
In the case of a telephone contact, the IRS will still send a letter confirming the audit.
Rights During an Audit
These taxpayer rights include:
1. A right to professional and courteous treatment by IRS employees.
2. A right to privacy and confidentiality about tax matters.
3. A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
4. A right to representation, by oneself or an authorized representative.
5. A right to appeal disagreements, both within the IRS and before the courts.
Audit Length
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings. as a general rule if you are scheduled for office audit those can last from week to three weeks. Sometimes if an IRS revenue agent is auditing your tax return it can take anywhere from a month to a year.
Records Needed
You will be provided with a written request for specific documents needed.
The law requires you to retain records used to prepare your return.
Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
Audit Determinations
An audit can be concluded in three ways:
1.No change: an audit in which you have substantiated all of the items being reviewed and results in no changes .Great news here.
2. Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
3. Disagreed: an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
What Happens When You DISAGREE with the Audit Findings?
A conference with a manager may be requested for further review of the issue or issues. In addition, Fast Track Mediation or an Appeal request may be filed.
Contact us today for free initial tax consultation .
Professional Tax Representation
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Full Service Accounting Tax Firm,
- 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” Plus
- 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
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
- 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
IRS Audit Notice Tax Help – Best Results Use Former IRS Agents – Affordable
by Fresh Start Tax | Aug 6, 2013 | IRS Tax Advice, Tax Help
As a service to taxpayers everywhere who are going through the misery of tax identity theft fresh start tax would like to provide to you the top tax tips in regard to tax identity theft.
In writing this I should let you know is useless to contact professional tax form to help you resolve this problem. You will be wasting thousands of dollars. You should know that you can do all of this work by yourself and save yourself professional fees. It requires persistence, patience and understanding that this process is as slow as it gets.
Taxpayer Guide to Identity Theft
We know identity theft is a frustrating process for tax victims.
IRS takes this issue very seriously and continue to expand on our robust screening process in order to stop fraudulent returns.
What is identity theft?
Identity theft occurs when someone uses your personal information such as your name, Social Security number (SSN) or other identifying information, without your permission, to commit fraud or other crimes.
How do you know if your tax records have been affected?
Usually, an identity thief uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund. Generally, the identity thief will use a stolen SSN to file a forged tax return and attempt to get a fraudulent refund early in the filing season.
You may be unaware that this has happened until you file your return later in the filing season and discover that two returns have been filed using the same SSN.
Be alert to possible identity theft if you receive an IRS notice or letter that states that:
- More than one tax return for you was filed,
- You have a balance due, refund offset or have had collection actions taken against you for a year you did not file a tax return, or
- IRS records indicate you received wages from an employer unknown to you.
What to do if your tax records were affected by identity theft?
If you receive a notice from IRS, respond immediately.
If you believe someone may have used your SSN fraudulently, please notify IRS immediately by responding to the name and number printed on the notice or letter.
You will need to fill out the IRS Identity Theft Affidavit, Form 14039.
For victims of identity theft who have previously been in contact with the IRS and have not achieved a resolution, please contact the IRS Identity Protection Specialized Unit, toll-free, at 1-800-908-4490.
How can you protect your tax records?
If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost/stolen purse or wallet, questionable credit card activity or credit report, etc., contact the IRS Identity Protection Specialized Unit at 1-800-908-4490.
How can you minimize the chance of becoming a victim?
1. Don’t carry your Social Security card or any document(s) with your SSN on it.
2. Don’t give a business your SSN just because they ask. Give it only when required.
3. Protect your financial information.
4. Check your credit report every 12 months.
5. Secure personal information in your home.
6. Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.
7. Don’t give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.
Just a note to all taxpayers, pursue these matters yourself and understand it is not useful to hire any company or firm to deal with tax theft.
Save yourself a lot of time and money and be vigilant and persistent.
Tax Identity Theft – Top Tax Guide Tips – Fresh Start Tax LLC
by Fresh Start Tax | Aug 6, 2013 | IRS Tax Advice, IRS Tax Audit
Is the IRS Auditing Your TEFRA Partnership?
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors.
We have 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 A+ rated by the Better Business Bureau and have been in private practice since 1982.
On staff are IRS TEFRA Experts.
One of our Former IRS Agents was a Appeal Agents was the coordinator for the TEFRA in the district IRS office and is a EXPERT in all TEFRA issues and problems.
You may speak with Frank directly with the free initial tax consultation so he may review your case and advise you on the best form of tax relief and a possible settlement.
TEFRA
If you are a partner in a partnership with eleven and more partners, you are a partner in a TEFRA partnership.
The audit procedures for a TEFRA partnership are one of the most complex in the Internal Revenue Code. The partner known as the Tax Matters Partner acts as the liaison between the IRS and the partners.
The Tax Matters Partner (TMP) is responsible for keeping partners informed of tax administrative and judicial proceedings relating to the partnership. The TMP has the authority to extend the statute of limitations for assessment with respect to partnership items on the behalf of all partners.
He can bind partners holding less than 1% interest in the partnership to a settlement with the IRS and determine in forum to litigate a partnership controversy.
Due to the complexity of the TEFRA audit procedures, the IRS in many instances fails to follow all of the required procedures for the examination of the partnership. Further, there may be instances that the TMP and the remaining partners may have a conflict of interest as to specific matters which you may not be aware.
The audit of a TEFRA partnership can be appealed to the Appeals Division and if needed can be litigated in the Tax Court or Court of Federal Claims.
All of these appeals are complex and full of unexpected results to the unwary partner.
You may have been assessed a deficiency based on an audit of a TEFRA partnership and not know it, until you receive a bill from the IRS for the deficiency. TEFRA deficiencies are assessed through computational adjustments, which means you have no appeal rights.
The appeal rights are through the TMP, if he did not exercise them; those appeal rights are expired. So its up to you to be in contact with the TMP when the partnership is being audited and keep current with the proceedings.
There are instances where the IRS has made an assessment of a deficiency attributable to TEFRA partnership adjustment that was not valid and the partner simply paid the deficiency amount without questioning it.
If your TEFRA partnership (eleven or more partners) is being audited, you need to know what is going on because your interest with the TMP may conflict.
If you are a partner in a TEFRA partnership that is being audited, you need someone from the outside of the partnership to inform you of your best plan of action that you should take.
What is TEFRA, an INTRODUCTION
This chapter is designed to give the reader a basic understanding of TEFRA (the Tax Equity and Fiscal Responsibility Act of 1982) and is not intended to be a fully comprehensive work. Certain topics are covered by referencing statutes, regulations, or the Internal Revenue Manual (IRM) rather than by way of narrative text.
The Resources section lists several published sources which, when viewed together, should present a fully comprehensive and up-to-date picture of TEFRA. In addition, there is a web-based self-study course, TEFRA Basics, which can be taken online at the Enterprise Learning Management System (ELMS) website.
Once you have registered and created a profile on the ELMS website, TEFRA Basics can be found as ELMS Component Number: 11381.
Another important TEFRA tool for the examiner is the IRS Intranet consolidated TEFRA website.
This chapter will address TEFRA only as it applies to TEFRA partnerships and TEFRA related partners. It is important to note that Limited Liability Companies (LLCs) and Real Estate Mortgage Investment Conduits (REMICs) that file a Form 1065, U.S. Return of Partnership Income, and their respective members are also subject to TEFRA administrative and judicial procedures and treated in a manner similar to TEFRA partnerships and their partners.
IRC section 6244 extended the TEFRA partnership provisions to S corporations for tax years beginning after 1982. The Small Business Job Protection Act of 1996 repealed the TEFRA administrative and judicial procedures for S corporations for tax years beginning after Dec. 31, 1996.
TEFRA as it applies to S corporations and REMICs will not be covered in this chapter. Non-TEFRA partnership statute considerations and procedures are also not covered in this overview. The procedural differences between TEFRA and non-TEFRA are significant.
For non-TEFRA considerations, examiners should consult IRM 4.31.5 & 6 of the Pass-Through Entity Handbook, and IRM 4.29, Partnership Control System (PCS) Handbook.
IRC sections 6221 through 6234 govern audit, administrative, and judicial procedures, as well as certain filing requirements to be used by entities qualifying as TEFRA partnerships.
These procedures are commonly referred to as “unified proceedings”, “TEFRA proceedings”, and “partnership proceedings.” These Code sections provide that examination, administrative, and judicial actions are to be conducted at the partnership-level.
Final Regulations were issued and are effective for taxable years beginning on or after October 4, 2001 (66 FR 50541, Treas. Reg. sections 301.6221-1 through 301.6233-1). For taxable years beginning before October 4, 2001, the Temporary Treasury Regulations continue to govern (see Treas. Reg. section 301.6221-1(f)). The Final Treasury Regulations are substantially similar to the temporary regulations.
IRS Partnership Audits TEFRA Expert – IRS Settlement Agent
by Fresh Start Tax | Dec 13, 2012 | IRS Tax Advice
IRS Legal Tax Help – Tax Relief Solutions – Attorneys, Former IRS – Ft.Lauderdale, Miami, Palm Beaches – IRS Experts 954-492-0088
Call us today and find out how to resolve your IRS problems and tax issues. 954-492-0088
We are available for a no cost professional tax consultation. We charge no fees unless we know we can help you.
We are a professional tax firm with over 206 years of professional tax experience and over 60 years of direct IRS work experience in the local, district and regional office of the South Florida IRS.
We taught Tax Law at the IRS.
We are comprised of Tax Attorneys, IRS Tax Lawyers and Former IRS Agents, Managers and Instructors.
If you are undergoing a tax audit, need income tax preparation or owe any sum of money to the IRS will be able to help resolve all your tax issues. All work is done in house.
Some quick tax facts:
1.IRS audit 1% of all tax returns,
2. IRS filed 3.8 tax levies a year,
3. IRS files over 900,000 federal tax liens,
4. IRS seizes over 700 properties each year,
5. IRS accepts 30% of all offers in compromise.
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 90.3 FM Monthly Radio Show-Business Weekly
- FBAR and Expatriate Representation
IRS Legal Tax Help – Tax Relief Solutions – Tax Attorneys, Former IRS – Ft.Lauderdale, Miami, Palm Beaches – IRS Experts
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
