by steve | Mar 17, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax LLC “A” Rated by Better Business Bureau A Professional Tax Firm practicing Tax Law since 1982.
We are former IRS Agents and Tax Managers. Over 60 years of working at the IRS.
As a former IRS Agent, I am asked constantly about the office in the home deductions. Be careful when taking these tax deductions. This is a audit rich area IRS looks at when pulling tax returns of audits.
Follow these IRS tips. If you are getting audited, call our firm today. Also, if you are getting audited never allow the IRS to go to your home for the tax audit.
Whether you are self-employed or an employee, if you use a portion of your home for business, you may be able to take a home office deduction. Here are six things the IRS wants you to know about the Home Office deduction
1. Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly:as your principal place of business, or as a place to meet or deal with patients, clients or customers in the normal course of your business, or
in any connection with your trade or business where the business portion of your home is a separate structure not attached to your home.
2. For certain storage use, rental use, or daycare-facility use, you are required to use the property regularly but not exclusively.
3. Generally, the amount you can deduct depends on the percentage of your home used for business. Your deduction for certain expenses will be limited if your gross income from your business is less than your total business expenses.
4. There are special rules for qualified daycare providers and for persons storing business inventory or product samples.
5. If you are self-employed, use Form 8829, Expenses for Business Use of Your Home to figure your home office deduction and report those deductions on line 30 of Form 1040 Schedule C, Profit or Loss From Business.
6. If you are an employee, additional rules apply for claiming the home office deduction. For example, the regular and exclusive business use must be for the convenience of your employer.
Chances of an IRS Tax Audit:
1. Individual Income Tax Returns: The overall audit rate of only 1.1% for all individual returns
2. If you report income on a Schedule C: ( rethink schedule C )
Individual Income Tax Returns: your IRS tax audit rate is anywhere from 2.9-4.7% vs. the overall audit rate of only 1.1% for all individual returns. Thus a Schedule C will increase your audit risk 3-4 times.
3. The Audit Rate for partnerships and S Corporations are at .4% ( less than 1 %). The message here is that you should strongly consider conducting your present Schedule C activity in either an S corporation or a partnership. Transitioning to an S or partnership form of doing business is very easy and is almost always tax free.
4. If your total income is over $1M: you have a 1 in 12 chance of being audited now, vs. a 1 in 15 chance in 2009. This is huge. The issues that seem to come up in these exams are
For more information see IRS Publication 587, Business Use of Your Home, available at http://www.IRS.gov or by calling 800-TAX-FORM (800-829-3676).
by steve | Mar 17, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax LLC A Professional Tax Firm “A” Rated by the BBB Former IRS Agents and IRS Audit Managers Hire the best!
What are your chances of an IRS Tax Audit for 2011?
Here is the new trending that is taking place as to your risk of an IRS Tax Audit.
1. Individual Income Tax Returns: The overall audit rate of only 1.1% for all individual returns
2. If you report income on a Schedule C: ( rethink schedule C )
Individual Income Tax Returns: your IRS tax audit rate is anywhere from 2.9-4.7% vs. the overall audit rate of only 1.1% for all individual returns. Thus a Schedule C will increase your audit risk 3-4 times.
3. The Audit Rate for partnerships and S Corporations are at .4% ( less than 1 %). The message here is that you should strongly consider conducting your present Schedule C activity in either an S corporation or a partnership. Transitioning to an S or partnership form of doing business is very easy and is almost always tax free.
4. If your total income is over $1M: you have a 1 in 12 chance of being audited now, vs. a 1 in 15 chance in 2009. This is huge. The issues that seem to come up in these exams are
FACTS About IRS Tax Audits
- The Internal Revenue Service audits approximately 1.5 million tax returns a year.
- The Internal Revenue Service field agents complete more than 400,000 audits by office or business visits a year.
- The Internal Revenue Service completes over 1.1 million correspondence audits a year.
by steve | Mar 17, 2011 | IRS Tax Advice, Tax News
I am a former IRS Agent of 10 years who has been in private practice of tax law and IRS Tax resolution for 38 years.
My company has represented thousands of taxpayers before the IRS over the last 29 years.
Very few changes have occurred in the Tax Audit and the IRS Collection sides of things in the past 10 years. It has been very clear though, that the IRS Tax Audits are well on the rise, probably due to the economy and an order for the IRS to collect more money to pay for the huge deficit. Before it collects the money it has to find the money. The IRS does this by auditing large numbers of taxpayers, assessing the money and then collecting.
In the last year we have had an IRS tax auditor in our office every month. If we saw an IRS tax auditor once the prior year, that would be high. We have handled more IRS tax examinations in the last year than in the last ten years. We expect to see this trending to actually spike.
The IRS has a different philosophy in the hiring of IRS Revenue Agents. In the past they would hire right out of school. Their training was all on the job. They were very green and it was obvious they were not schooled into the world of business. Today is a much different story. The IRS Agents of today are more seasoned, and many have worked in either public accounting or in the tax department of a large corporation and can spot major issues quickly, not getting lost in the details. They are much easier for us to work with, but they spot audit issues in a heart beat.
We have not seen any major changes as to what the tax audits and issues are for. It is business as usual.
Here is the new trending that is taking place as to your risk of an IRS Tax Audit:
1. Individual Income Tax Returns: The overall audit rate of only 1.1% for all individual returns
2. If you report income on a Schedule C
Individual Income Tax Returns: Your IRS tax audit rate is anywhere from 2.9-4.7% vs. the overall audit rate of only 1.1% for all individual returns. Thus a Schedule C will increase your audit risk 3-4 times.
3. The audit rate for partnerships and S Corporations are at .4% ( less than 1 %). The message here is that you should strongly consider conducting your present Schedule C activity in either an S corporation or a partnership. Transitioning to an S-Corp or partnership form of doing business is very easy and is almost always tax free.
4. If your total income is over $1M: you have a 1 in 12 chance of being audited now, vs. a 1 in 15 chance in 2009. This is huge. The issues that seem to come up in these exams are:
a. Basis in pass through entities to be able to take losses. If you do not have basis, you cannot take the loss, even if the K-1 shows that a loss has been allocated to you. You must have sufficient money in the venture or be liable for a sufficient amount of the venture’s debt in order to take losses.
b. Passive activities vs. non-passive activities. You cannot deduct passive activity losses against another business or investment income. It is important to be able to document your level of activity in those businesses that are throwing off losses to your personal return to show that you are active in them. If not, you may not be able to use the losses.
c. Capital loss deductions for loans to close relatives that may be disguised gifts instead.
d. Documentation for large charitable gifts. Asset size increases your chance of being audited.
e. Officer/Owner perks
Large Corporations Tax Audit Risks
Gross Income 10M-50M 13.4%
Gross Income 200M-500M 16.1%
Gross Income 5B-20B 45.3%
Gross Income 20B and up 98.0%
A few Insider tips:
1. For those of you who are going to experience a tax audit, do not allow the IRS to go to your office, always meet somewhere else.
2. Hire a tax professional, a former IRS Agent.
3. Do not file your current year, put it on extension so the IRS does not audit that year as well.
by steve | Mar 16, 2011 | IRS Tax Advice, Tax News
Affordable Fresh Start Tax LLC “A”Plus Rated by the Better Business Bureau
A Professional Tax Firm, experts in IRS Tax Law and Representation.
Have former IRS Teaching Instructors successful take care of your IRS Problem.
We are former IRS AGENTS, MANAGERS AND IRS TAX INSTRUCTORS that have been practicing tax law since 1982.
We worked at the IRS District and Regional Offices for over 60 years and our firm has over 140 years of professional IRS tax experience.
If you need tax help, have a IRS Notice, received a tax levy on wages or a bank account we can get immediate tax results because of our tax expertise. If you are going to hire anyone hire the best, former IRS Agents.
Why Hire Fresh Start Tax L.L.C.
We tell you the truth! irs tax help irs tax notice, tax levy, unfiled tax returns
1. Fresh Start Tax is a National Tax Firm whose principles have been practicing Tax Law since 1982.
2. On staff are Board Certified Tax Attorneys, CPA’s and Former IRS Agents, Managers and former IRS Instructors.
3. Former IRS Agents/Managers will review, manage, represent and close your IRS Tax Case for the best settlement possible.
4. We are one of the most experienced and trusted Professional Tax Firms with over 140 years of professional tax experience.
5. We have an “A” Rating from the Better Business Bureau.
We are one of the oldest, most experienced and trust tax films in the business today.irs tax help today irs tax notices and unfiled tax returns
- 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
How we work your case to immediately resolve your IRS matter:
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:
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.
by steve | Mar 16, 2011 | IRS Tax Advice, Tax News
Affordable Fresh Start Tax L.L.C “A” Plus Rated by the Better Business Bureau
A Professional Tax Firm practicing IRS Tax Law and Tax Relief since 1982. We are former IRS Agents, Managers and Instructors.
Do you have IRS Tax Notice ? Tax Levy ? Unfiled Tax Returns ? Notice of Intent to Levy? Do you need immediate Tax Help ?
We are one of the most trusted experienced and oldest tax firms.
Why Hire Fresh Start Tax L.L.C. We tell you the truth!
1. Fresh Start Tax is a National Tax Firm whose principles have been practicing Tax Law since 1982.
2. On staff are Board Certified Tax Attorneys, CPA’s and Former IRS Agents, Managers and former IRS Instructors.
3. Former IRS Agents/Managers will review, manage, represent and close your IRS Tax Case for the best settlement possible.
4. We are one of the most experienced and trusted Professional Tax Firms with over 140 years of professional tax experience.
5. We have an “A” Rating from the Better Business Bureau.
How we work your case to immediately resolve your IRS matter:
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:
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.
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/
Call us for a free tax consultation. Free video conferencing is also available.
by steve | Mar 16, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax LLC “A” Plus Rated by the Better Business Bureau
A Professional Tax Firm specializing in IRS tax issues.
We can get your tax lien released. Former IRS Tax Lien Specialist!
We are former IRS Agents, Managers and Tax Instructors who were IRS Tax Specialist in Applications of Discharges.
We have over 60 years of direct IRS work experience and over 140 years of of total tax experience.
Fresh Start Tax is one of the premier tax resolution firms in the country.
We deal with all types of civil cases including individuals, businesses, non-profits, partnerships and corporations.
We have staff that specialize in every facet of IRS representation.
We know all the IRS tax strategies because of our extensive IRS working backgrounds.
Some of our many specialties include the following:
- 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
Our Company Resume: ( Since 1982 )
- Our staff has over 140 years of professional tax representation experience collectively
- On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents,
- Former IRS Managers, Instructors and Trainers
- Highest Rating by the Better Business Bureau “A”
- Extremely ethical and moral
- Fast, affordable, and economical
- Licensed to practice in all 50 States
- Premium on client communication
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published Tax Expert
- As heard on 90.3 FM Monthly Radio Show, You and the IRS
