Get Your IRS Tax Debt Suspended – Are You Having a Hardship?

by steve | Nov 27, 2010 | IRS Tax Advice

If you have a current Hardship, the IRS can suspend your tax debt today!

httpv://www.youtube.com/watch?v=WJUbOoztOTQ

If you are unable to pay your tax liability because of an economic hardship, the IRS will consider placing the account in a hardship or currently not collectible status. If the IRS is considering  your account for hardship they will look at your assets and monthly gross income against what the IRS calls allowable  living expenses. IRS monthly allowable expenses are national averages for food, clothing, miscellaneous expenses, housing, transportation, medical expenses and insurance, alimony, child support as well as proper tax withholding .  These allowable expenses can be found on our website on the homepage. Find the toolbar and click on IRS Forms. You will find the National Standard Expenses.

Hardship or currently not collectible is somewhat subjective.  Even though your monthly expenses may exceed IRS allowable amounts, it does not necessarily mean that such status is not warranted or sustainable. You may have excessive  expenses that the IRS is not aware because of a medical problem or because of a child or parent in your care.  In order to be consider currently not collectible( CNC),  you must provide the IRS with all financial information on Form 433-A or the 433-F.

Being placed in a hardship status is not  permanent. The IRS reviews these cases every 2 to 3 years.

The IRS will use the filing of your tax return and your AGI to determine when your case will head back out to the field for review again. Remember, this is just a temporary situation.  At some point you will have to deal with the situation to get it fully resolved. The IRS does not grant hardship all the time. Make sure you can fully document your case.

Most individuals who are in hardship status are good candidates for an Offer in Compromise.

Lost my IRS Refund Check- Help

by steve | Nov 26, 2010 | IRS Tax Advice

Thousands of people lose there refund checks or the refund checks do not get delivered because of a multitude of problems, for instance moving or wrong addresses. so if you lost your refund check, check this out!
Question: I lost my refund check. How do I get a new one?
Answer: If you have lost your refund check, there are several options available to initiate a refund trace on your behalf.
You can go to the “ Where’s my Refund” system available through www.irs.gov and request assistance.
You can call the IRS toll-free at 800-829-1954 and either use the automated system or speak with an agent.
If you filed a Married Filing Joint return, you cannot initiate a trace using automation, but the IRS will issue you a Form 3911 (PDF), Taxpayer Statement Regarding Refund, to get the process started.
If your refund check has not been cashed, we can normally provide a replacement within six to eight weeks.
You may need to complete a Form 3911 (PDF), Taxpayer Statement Regarding Refund, to initiate a claim. If your refund check has been cashed, the Financial Management Service (FMS) will provide a claim package which includes a copy of the check. FMS will review the claim and the signature on the canceled check before determining whether another refund can be issued. Be advised this process could take up to six weeks to complete.

Tax Relief from Joint and Several Liability File for Innocent Spouse Relief- South Florida

by steve | Nov 25, 2010 | IRS Tax Advice

Yes, you can get tax relief from the filing of a joint and several liability. File for Innocent Spouse relief. Call Fresh Start Tax  1-800-700-1040
How can I get relief from joint and several liability?
Relief now falls into three categories: Innocent Spouse Relief;
Separation of Liability; and
Equitable Relief. Each of these kinds of relief has different requirements. They are explained separately below.
Can both spouses request relief?
Yes, each spouse can file a Form 8857 to request relief from liability from tax, interest and penalties.
18. Does the non-requesting spouse have any appeal rights?
Per Rev. Proc. 2003-19, the non-requesting spouse has the right to appeal the preliminary determination to grant partial or full relief to the requesting spouse when the preliminary determination letter is issued April 1, 2003 or later. However, the non-requesting spouse may not petition the Tax Court from the final determination letter. If relief is denied in part or in full, and the requesting spouse petitions the U.S. Tax Court, the non-requesting spouse, by law, will be given the opportunity to become a party in that proceeding.
For claims where a preliminary determination was issued prior to April 1, 2003, the non-requesting spouse had no appeal rights when the preliminary determination letter granted relief in part or in full to the requesting spouse. If relief was denied and the requesting spouse petitioned the U.S. Tax Court, the non-requesting spouse, by law, was given the opportunity to be a party in that proceeding.
19. Will the other spouse be notified that I filed a claim for innocent spouse relief?
The IRS is required to notify the non-requesting spouse to allow them to participate. They will also be notified of the determination on your election and have the opportunity to appeal IRS’s preliminary determination to grant you full or partial relief.

IRS: Can I pay personal expenses out of my business account- answer is…..

by steve | Nov 25, 2010 | IRS Tax Advice

More and more clients are starting to write personal expenses out of their business accounts. What does IRS say about the matter?
Question: If I pay personal expenses out of my business bank account, should I count the money used as part of my income, or can I write these expenses off?
Answer is: You would include the money in your business income.
You would not write off these expenses because they are not ordinary and necessary costs of carrying on your trade or business.
Personal, living, or family expenses which are not specifically provided by law are not deductible.
It is recommended that you not mix business and personal accounts as this makes it easier to keep records.
Check with a good tax preparer for extra tips.