by steve | Feb 7, 2011 | IRS Tax Advice
IRS Penalties and Interest Abatement’s Top Tips from a Former IRS Agent and Tax Manager.
1. The IRS will only abate penalties for reasonable cause. Reasonable cause is based on the taxpayer’s specific circumstances. The general rules apply on a case by case basis.
2. Under reasonable cause the first thing the IRS will look for is what happened and when did it happen. Most cases are denied because the claim does not fit the time period involved.
3. The IRS will also look at how the taxpayer handled other affairs during that period of time. If you handled other situations competently, the IRS may determine you do not have reasonable cause. Reasonable cause does not exist if, after the facts and circumstances that explain the taxpayer’s non-compliant behavior cease to exist, the taxpayer fails to comply with the tax obligation within a reasonable period of time.
4. The IRS will look to see that after the reasonable cause event the taxpayer did comply in a timely manner. It is important to document a timeline that fits your reasonable cause.
5. The IRS will immediately check on the compliance history of the taxpayer. If the taxpayer has a non- compliant history, the IRS will probably reject the claim.
6. Reasonable cause may be established if the taxpayer shows ignorance of the law in conjunction with other facts and circumstances. For example, consider:
- The taxpayer’s education,
- If the taxpayer has been subject to the tax,
- If the taxpayer has been penalized before,
- If there were recent changes in the tax forms or law which a taxpayer could not reasonably be expected to know, and/or
- The level of complexity of a tax or compliance issue.
7. If a “mistake was made”, the IRS will want supporting documentation and affidavits. Usually, signed under penalties of perjury to show your truthfulness.
8. In the case of death, serious illness, fire or natural disaster, you will need to provide all documents. These cases are usually excused by the IRS.
9. An undue hardship may support the granting of an extension of time for paying a tax or deficiency, providing that an undue hardship must be more than an inconvenience to the taxpayer. The taxpayer must show that they would sustain a substantial financial loss if forced to pay a tax or deficiency on the due date. Documentation is a key issue on this type of abatement.
10. Most abatement’s that are not accepted are because of a lack of credible documentation, support, and the claims that come to the IRS.The IRS processes thousands of abatement claims a year. To improve your chances of success make sure yours is clear, concise and well documented.
by steve | Feb 7, 2011 | IRS Tax Advice
Did you receive a Wage Garnishment from the IRS, a 668W. Get help, FAST.
The IRS Wage Garnishment is a continuous levy on wages and other income. If you need professional tax help call our firm today. We can get immediate results.
How we get an Immediate Release of Wage or Bank Levy:
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 them.
2. We will make sure your tax returns are filed and current. If they are not filed, we will prepare and file your tax returns.
3. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement.
4. Settlement agreements can be in different forms:
a. Hardship. Hardship cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable.
b Payment Agreements are agreed upon monthly installment payments to the IRS.
c. Offer in Compromise. A much longer and detailed process of tax settlement. We will discuss in detail with you the merits of each.
5. The IRS will then fax to your payroll department, bank, or third party a Release Of Levy.
The IRS Continuous Effect of Levy on Salary and Wages
Unlike other levies, a levy on a taxpayer’s wages and salary has a continuous effect. It attaches to future payments, until the levy is released. Wages and salary include fees, bonuses, commissions, 2
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
A Form 668-A is issued to levy an author’s royalties. The author has a fixed and determinable right to royalties for books that have already been published. The levy reaches royalties for sales of those books in the future. The levy does not reach royalties for books that are written and published later. A new levy must be served to take those royalties.
Exempt Amount
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
If support is allowed, the same child can not be claimed as an exemption for figuring the exempt amount. See IRM 5.11.5.4 (2)a above.
If Then
The taxpayer has already shown proof of the required child support payment Write on the levy form, “Under section 6334 (a)(8) of the Internal Revenue Code, $ ____________________is exempt from this levy.”
The taxpayer shows proof of the child support after the levy is served Release enough of the levy so the support can be paid.
The taxpayer is not entitled to the support exemption unless the support is being paid.
Consider getting the taxpayer to have the child support payment withheld and sent directly to the person with custody.
Or, the taxpayer may make the child support payment through the Service, and the Service will forward the payment. When there is no open assignment, have the payments sent through Submission Processing. This may happen if the payments are being monitored in the campus.
by steve | Feb 7, 2011 | IRS Tax Advice
If IRS has placed a 668W levy on your wages, call us for an immediate release of the levy.
Has IRS levied your entire paycheck?
IRS is not allowed to take all your money. That is the law. If your employers send your entire check to the IRS I would take issue.
There is an “Exempt Amount” that stays with the taxpayer.
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
If support is allowed, the same child can not be claimed as an exemption for figuring the exempt amount. See IRM 5.11.5.4 (2)a above.
If Then
The taxpayer has already shown proof of the required child support payment Write on the levy form, “Under section 6334 (a)(8) of the Internal Revenue Code, $ ____________________is exempt from this levy.”
The taxpayer shows proof of the child support after the levy is served Release enough of the levy so the support can be paid.
The taxpayer is not entitled to the support exemption unless the support is being paid.
Consider getting the taxpayer to have the child support payment withheld and sent directly to the person with custody.
Or, the taxpayer may make the child support payment through the Service, and the Service will forward the payment. When there is no open assignment, have the payments sent through Submission Processing. This may happen if the payments are being monitored in the campus.
by steve | Feb 6, 2011 | IRS Tax Advice
Fresh Start Tax LLC <>< is a Christian -based professional tax firm. You can hear us on the radio on GRACE FM 90.3. <><
Our tax practice is Biblical based and the principles have been practicing tax law since 1982. We are comprised of Board Certified Tax Attorneys, CPA’s and former IRS agents and managers.
You can appeal your Federal Tax Lien today. Call us to start the process.
Appealing the Notice of Federal Tax Lien:
Taxpayers may have two ways to appeal certain collection actions.
1.Collection Due Process Hearing, and the
2.Collection Appeals Program.
Collection Appeals Program
- The Collection Appeals Program (CAP) was implemented to provide taxpayers with an opportunity to have collection actions reviewed by an impartial party outside the Collection function. CAP appeal-able collection actions are liens, levies, seizures, and installment agreement denials or terminations. In addition to appealing the filing of NFTLs, appeal-able lien actions include the denial of a notice of withdrawal of NFTL and denials of discharge, subordination or non attachment. A CAP appeal is also allowed for taxpayers who want to dispute an administrative decision regarding liens.
- CAP is the only appeal available before the lien filing.
- Taxpayers who dispute the proposed filing of the NFTL should be advised of appeal rights under CAP..
Collection Due Process
- Under IRC § 6320, the Internal Revenue Service must notify taxpayers in writing of their right to a Collection Due Process (CDP) Hearing with the Office of Appeals within 5 business days of the filing of a Notice of Federal Tax Lien. When a taxpayer timely requests a CDP hearing the taxpayer has a right to judicial review of the Appeals determination.
- Taxpayers may be entitled to a collection due process hearing if a timely request for a hearing is received. Otherwise, an equivalent hearing may be available.
- The taxpayer cannot file for judicial review of a decision from an equivalent hearing unless the issue raised in the hearing provides for judicial review, i.e., taxpayer raises spousal defense under IRC § 6015.
- The CDP notice must be sent to the taxpayer within 5 business days after the NFTL is filed with the local recording office. The notice must be:
- Given in person
- Left at the taxpayer’s residence or usual place of business, or
- Sent by certified or registered mail to the taxpayer’s last known address.
- The notice will include:
- The amount of unpaid tax.
- The right to request a hearing during a 30-day period beginning after the 5-day period described in (4) above.
- Administrative appeals (e.g., meet with the employee’s supervisor, Collection Appeals Program, etc.) available to the taxpayer with respect to the lien and procedures relating to such appeals.
If you are looking for immediate tax relief call us today.
Our Company Resume: ( Since 1982 )
- Our staff has over 135 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
by steve | Feb 6, 2011 | IRS Tax Advice
Fresh Start Tax 1-866-700-1040 A Professional Tax Firm “A” Rated by the Better Business Bureau
One of the most serious tax offenses an individual can commit, with respect to the Internal Revenue Service, is failure to file a tax return. Under Title 26 of the United States Code, Section 7203 it is a Federal crime or offense for anyone to willfully fail to file a federal income tax return when required to do so by Internal Revenue laws or regulations.
A person’s willful failure to supply information or pay tax is also punishable as a crime under Section 7203. In some cases, a person convicted of these crimes may be imprisoned for up to 5 years.
Being former IRS Agents, Managers and Instructor we can get you right.
We can get you back in the system usually without any problems. Here is the process:
The process of filing back or unfiled tax returns: ( Lost of few tax records )
If you have unfiled tax returns, this process is used to get current with the IRS:
1. We verbally review a year by year history of your income and expenses.
2. We review any records you may have.
3 Pull all IRS information that they have received from 3 party sources that have been placed on the IRS computer system over the past 7 years.
4. We can prepare a “reconstructed” tax return that the IRS will accept.
5. We review all returns for accuracy with the client and send them into the IRS.
6. We work out a settlement agreement with the IRS.
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 135 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
by steve | Feb 6, 2011 | Florida Sales Tax, IRS Tax Advice
Sales or Use Tax Audit State of Florida, Department of Revenue.
Florida Sales Tax Audit – Affordable Expert Defense
Fresh Start Tax LLC is a professional tax firm that specializes and defending taxpayers against the State of Florida, Department of Revenue.
We have been processing in the State of Florida since 1982.
We begin the process of your tax audit defense from your first letter until your case with Florida Sales Tax is fully resolved and your case settled.
If you will wind up owing money we will arrange a tax settlement with Florida sales tax.
We are a full service tax firm that has well over 300 years professional tax experience and are rated A+ by the Better Business Bureau. We have been in private practice right here in the state of Florida since 1982.
Our firm is comprised of tax attorneys, certified public accountants, a former sales tax agent of 16 years and former IRS agents, managers and tax instructors who have over 60 years of direct government experience in the local, district, and regional tax offices.
Since we have worked for the government we completely understand what it takes to fully resolve your case using different tax strategies to ensure your very best result.
Beware – If you owe back Florida Sales Tax?
You should know the State of Florida tax law allows the following actions to be done when you owe back taxes:
- Garnish or levy your wages
- Revoke your business registration or business licenses
- Bank accounts can be frozen and seized to pay your tax debt
- Property and assets can be lien, seized and sold to pay your back taxes
- Despite paying the debt, the State of Florida tax lien will remain on your credit report for 7 to 10 years
- You will be subject to penalties between 10% per month and 100% of the total tax due.
- Interest on the debt accrues daily on the unpaid balance
- And yes, the State of Florida can issue an arrest Arrest Warrant with the local law enforcement for your incarceration.
Feel free to contact us for initial tax consultation. We will completely review your case and give you a full assessment on the pros and cons so you can make an informed incompetent decision of how to fully resolve your sales tax audit case.
There are many excellent firms that represent taxpayers for Florida sales tax audits we believe we are in that category.
Side Note:
The state of Florida Department of revenue selects certain industries and locations for specific audits.
Understand that audits can be very simple or very complex depending on two things.
The reason your tax returns were pulled for audit and how the state auditor for the Department of revenue views your case.
At the very beginning of the sales tax audit taxpayers should be very upfront, very truthful and be represented by a high skilled professional person.
As a general rule, hiring a tax professional can limit the scope of your audit and many times encourage the Win sampling of your tax return.
Our Firms 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
- Federal Tax Problems – Tax Resolution & Easy Solutions
Sales Tax Audit -Tampa, Orlando, Jacksonville – Experts – Florida Tax Firm “A” BBB
