by steve | Mar 21, 2011 | IRS Tax Advice, Tax News
If you receive certified mail from the Internal Revenue Service, do not be afraid to sign for or pick up the mail. It will be very helpful to bringing your case to a successful conclusion. Pick up and open this mail.
If you are receiving IRS notices, make sure your tax professional is aware of this notice because the IRS will be sending out a notice of federal tax lien or tax levy. A good professional tax company can stop all action just by calling the IRS.
As a former IRS Agent of ten years and being in private practice for 28 years, I have found that taxpayers are frightened to pick up a certified notice/mail from the IRS. You would think there was a bomb in the letter. It is just a time sensitive letter.
It is very important to pick up that notice/letter because the quicker you deal with it, the sooner your problems will go away. Remember, this problem will not go away by itself, you must be proactive to get the results you need.
Do not let fear stop you from moving forward. A good professional tax firm can minimize your worries.
Why picking up the mail notice/letter is your only true choice:
1. It lets the taxpayer know how long it will be before the IRS takes enforcement action. These letters are time sensitive. The IRS will follow up on the day the letter indicates.
2. It lets the taxpayer know where the case is in the system and which unit is handling it, allowing you to call the right IRS office and not waste time.
3. It allows the taxpayer to examine whether the tax deficiency on the IRS notice is correct or some things need to be addressed.
4. By calling the IRS, it lets them know you are serious about resolving the tax issue.
If you plan to hire a professional company, hire one that has former IRS Agents/Instructors who know the IRS system. They have contacts and telephones numbers to call to aid you in IRS tax relief.
Remember, call an experienced tax firm.
by steve | Mar 21, 2011 | IRS Tax Advice, Tax News
Affordable Fresh Start Tax LLC <>< “A” Plus Rated by the Better Business Bureau
Professional Tax firm practicing IRS Tax Debt Settlement since 1982.
Hire a true Christian Tax Firm. Hire godly counsel Hire former Christian IRS Agents
We are one of the premier tax firms in the country.
We are of of the oldest, most trusted and experienced tax firms. We handle all IRS Problems.
Our firm has over 140 years of professional tax experience and we have worked for the IRS for over 60 years.
We are tax specialists for IRS Debt Relief.
On staff is a former IRS tax instructor who taught the Offer in Compromise/Settlement program.
Do not be ripped off by tax mills, call a trusted Christian Tax Firm.
Fresh Start Tax LLC specialty:
- Immediate Tax Representation
- Offers in Compromise/Settlements
- Immediate Release of Bank Garnishments or Wage Levies
- IRS Notices/Bill of Intent to Levy or Final Notices
- IRS Tax Audits, Large and Small Dollar
- Hardships Cases, Payment Plans, Installment Agreements
- Innocent Spouse Relief
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Trust Fund Penalty Cases/6672
- Non-filers, never filed, old and past due tax returns
The IRS may accept an offer in compromise or tax settlements based on three grounds:
IRS Debt Relief Programs
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC.
To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
How do you discern godly counsel?
Job 12:13 But true wisdom and power are with God; counsel and understanding are His.
Psalm 37:30 The godly offer good counsel, they know what is right from wrong.
Proverbs 10:31-32 The godly person gives wise advice, but the tongue that deceives will be cut off. The godly speak words that are helpful, but the wicked speak only what is corrupt.
Proverbs 18:2 Fools have no interest in understanding; they only want to offer their own opinions.
Proverbs 27:9 The heartfelt counsel of a friend is as sweet as perfume and incense.
Colossians 3:16 Let the words of Christ, in all their richness, live in your hearts and make you wise.
by steve | Mar 20, 2011 | IRS Tax Advice, Tax News
Affordable Fresh Start Tax LLC “A” Plus Rated by the Better Business Bureau
A Professional Expert Tax Firm Practicing Tax Law since 1982
Hire a professional expert tax firm with over 140 years of IRS tax experience and over 60 years of working for the IRS.
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Independent Contractor (Self-Employed) or Employee?irs reg 530 payroll tax audit
It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.
Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.
Determining Whether the Individuals Providing Services are Employees or Independent Contractors
Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be –
1. An independent contractor
2.An employee (common-law employee)
3.A statutory employee
4.A statutory nonemployee
In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.
Common Law Rules
Facts that provide evidence of the degree of control and independence fall into three categories:
1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
2. Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
3.Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor.
Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.
The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.
Form SS-8
If, after reviewing the three categories of evidence, it is still unclear whether a worker is an employee or an independent contractor, Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF) can be filed with the IRS. The form may be filed by either the business or the worker. The IRS will review the facts and circumstances and officially determine the worker’s status.
Be aware that it can take at least six months to get a determination, but a business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8 (PDF).
Employment Tax Obligations
Once a determination is made (whether by the business or by the IRS), the next step is filing the appropriate forms and paying the associated taxes.
Consequences of Treating an Employee as an Independent Contractor
If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker (the relief provisions, discussed below, will not apply). See Internal Revenue Code section 3509 for more information.
Relief Provisions
If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. To get this relief, you must file all required federal information returns on a basis consistent with your treatment of the worker. You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. See Publication 1976, Section 530 Employment Tax Relief Requirements (PDF) for more information.
Misclassified Workers Can File Social Security Tax Form
Workers who believe they have been improperly classified as independent contractors by an employer can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report the employee’s share of uncollected Social Security and Medicare taxes due on their compensation. See the full article Misclassified Workers to File New Social Security Tax Form for more information.
References/Related Topics
by steve | Mar 20, 2011 | IRS Tax Advice, Tax News
Affordable Fresh Start Tax “A” Plus Rated by the Better Business Bureau
A Professional South Florida Tax Firm practicing in South Florida since 1982
We are former IRS Instructors that taught the Offer in Compromise or tax settlement program at the IRS.
We are former IRS Agents and Managers who specialize in Offers in Compromise or IRS Tax Settlements.
Do not file an Offer in Compromise or Tax Settlements until you call us first. OIC ft lauderdale, miami west palm beach
There are traps you are not aware of. I know because I am a former IRS Tax OIC Instructor.
FACTS TO BE AWARE OF:
All Taxpayers Do Not Qualify for an Offer in Compromise
Absent special circumstances, if you have the ability to fully pay your tax liability in a lump sum or via an installment agreement, an offer in compromise will not be accepted.
Offer in Compromise Payments are Non-refundable
The IRS considers the 20 percent payment for a lump sum offer and any periodic payments as “payments on tax” and are not refundable, regardless of whether the offer is declared not-processable or is later returned, withdrawn, rejected or terminated by the IRS.
Federal Tax Liens are Not Released
If there is a Notice of Federal Tax Lien on record prior to acceptance of the offer, the lien is not released until the OIC terms are satisfied or until the liability is paid, whichever comes first. A Notice of Federal Tax Lien may be filed during the course of the OIC investigation.
Tax Payments May be Designated
You may designate in writing how the IRS should apply payments made with the filing of the offer and while an offer is under investigation. Without a written designation, payments will be applied to the tax liability and in the government’s best interest. The $150 application fee cannot be designated, but is applied to the tax liability and in the government’s best interest.
Refunds for tax years
The IRS will keep any refund, including interest due, because of an overpayment of any tax or other liability, for tax periods extending through the calendar year the IRS accepts the OIC.
Exception: Offers submitted under the basis of doubt as to liability.
Tax Levies
The IRS will keep all payments and credits made, received or applied to the total original tax liability before the OIC was submitted. The IRS may also keep any proceeds from a levy that was served prior to the submission of an OIC, but which were not received at the time the OIC was submitted.
Statutory Period for Collection Suspended
The statutory period for collection is suspended during the period that the OIC is under consideration (pending) and is further suspended if the OIC is rejected by the IRS and you appeal the rejection.
Five Year Compliance
If your offer is accepted, you must timely file all tax returns and timely pay all tax for five years or until the offered amount is paid in full, whichever period is longer. Failure to adhere to these terms will result in default of the offer and the IRS may then collect the amounts originally owed plus penalties and interest.
OIC Payment and Application Fee Exceptions
If you qualify for a low-income exception waiver or you submit a doubt as to liability offer you are exempt from the $150 application fee and any OIC payments due upon submission of the OIC or during the course of the investigation. The low income waiver does not apply to businesses.
Appeal your OIC
If your OIC is rejected, you will have the opportunity to file an appeal which will be heard by the IRS Office of Appeals. There are no appeal rights associated with offers that are returned, withdrawn or terminated.
Approved Installment Agreement per IRS
If you have an approved installment agreement and submit a periodic payment offer, you are not required to continue to make the installment agreement payments while the offer is being investigated. You will, however, be required to make the OIC periodic payments as they become due.
Mandatory Acceptance
Per IRC 7122(f), the IRS will deem an offer “accepted” if it is not withdrawn, returned or rejected within 24 months of the IRS receipt date. If a liability included in the offer amount is disputed in any judicial proceeding, that time period is omitted from calculating the 24-month time frame.
Open to Public Inspection Files
The law requires the IRS to make certain information from accepted Offers in Compromise available for public inspection and review. These public inspection file locations are located in designated IRS Area Offices.
Do your homework before hiring a Professional Tax Firm. Make sure they have on staff Board Certified Tax Attorneys, Lawyers, CPA’s, Former IRS Agents and Managers. Also, check the following to ensure the creditability and history of the TAX FIRM.
1. Better Business Bureau – www.bbb.org/us/Find-Business-Reviews
2. Complaints.com – www.complaintsboard.com
3. Rip Off Report – http://www.ripoffreport.com/
by steve | Mar 20, 2011 | IRS Tax Advice, Tax News
Affordable Fresh Start Tax “A” Plus Rated by the Better Business Bureau
A Expert Professional Tax firm practicing IRS tax Law and Tax Settlement since 1982
Beware of tax mills who say they can settle for” pennies on a dollar”, talk to a former IRS Tax Instructor on Settlements.
Hire true IRS Tax Experts in Offers in Compromise and Tax Settlements. If it is possible to reduce your IRS Tax bill or Tax Debt, we can do it.
We are comprised of Former IRS Agents, Managers and Instructors who taught other IRS Agents the IRS Tax Settlement Program.
How we work your case to immediately resolve your IRS matter: los angeles reduce your tax bill debt today
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak to the IRS.
2. We will make sure your tax returns are filed and current. If your tax returns are not up to date, IRS will refuse to work your case. This is leverage that the IRS uses to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days.
3. IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. IRS will require a closing settlement method for each case.
4. Settlement agreements can be in different forms: you can reduce your irs debt or tax bill today los angeles
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to met your current expenses. IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs IRS uses for the lowest possible amount required.
c. Offer in Compromise. There are three types of OICs:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists.
Call us for a free tax consultation. Free video conferencing is also available.
Do your homework before hiring a Professional Tax Firm. Make sure they have on staff Board Certified Tax Attorneys, Lawyers, CPA’s, Former IRS Agents and Managers. Also, check the following to ensure the creditability and history of the TAX FIRM.
1. Better Business Bureau – www.bbb.org/us/Find-Business-Reviews
2. Complaints.com – www.complaintsboard.com
3. Rip Off Report – http://www.ripoffreport.com/
by steve | Mar 19, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax LLC A Professional Tax Firm puts our IRS Newswire Releases our clients.
Health Insurance Tax Breaks for the Self-Employed
Here is some information from the IRS about a special tax deduction for the self-employed. You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for you, your spouse, and your dependents if you are one of the following:
A self-employed individual with a net profit reported on Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming.
A partner with net earnings from self-employment reported on Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., box 14, code A.
A shareholder owning more than 2% of the outstanding stock of an S corporation with wages from the corporation reported on Form W-2, Wage and Tax Statement.
The insurance plan must be established under your business.
For self-employed individuals filing a Schedule C, C-EZ, or F, the policy can be either in the name of the business or in the name of the individual.
For partners, the policy can be either in the name of the partnership or in the name of the partner. You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Otherwise, the insurance plan will not be considered to be established under your business.
For more-than-2% shareholders, the policy can be either in the name of the S corporation or in the name of the shareholder. You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. Otherwise, the insurance plan will not be considered to be established under your business.
