When the IRS determines to put your case in Hardship Status, few persons know how and why these cases come back out to the field or back into the IRS collection system. Having been a former IRS Agent, I had placed hundreds of cases in the currently non collectible status, known to the IRS Agent as Status 53 because of the form number.
Tax Cases come back out to the ASC Unit or the Field Office because of only three reasons:
1. Because the Revenue Officer working the case places a mandatory follow-up date on the file. Each Revenue Officer is different. They get a feel for the case based on the financial statement and the asset check that was made during the course of the investigation. Sometimes it is a hunch, other times you get a feel that income may increase at a given time. This mandatory follow-up date is strictly up to the reviewing Revenue Officer.
2. A certain closing code is placed on the case. If the Revenue Officer does not mandate a certain follow-up date, a closing code is put on the case. For example, let’s say the closing code is 40. What that means is when the taxpayer reaches $40,000 in a AGI (adjusted gross income), the case will trigger back to the field. Once again, each Revenue Officer makes their own decision.
3. The statute is about to expire. Certain cases will trigger because the ten year statute of limitation is about to expire. These cases usually come out 1 year before the 10 year statute. These are usually large dollar cases.
The only other way a case may come back to the field is because a Congressional inquiry was made.
They are almost criminal. Only the government and banks can get away with this
These are Collection Procedural Questions and determined by Law. Question: What kind of interest and penalties will I be charged for filing and paying my taxes late? Answer: Interest is compounded daily and charged on any unpaid tax from the due date of the return until the date of payment. This is a crime
The interest rate is the federal short-term rate plus 3 percent. That rate is determined every three months.
For current interest rates, go to News Releases and Fact Sheets and find the most recent Internal Revenue release entitled Quarterly Interest Rates.
In addition, if you filed on time but didn’t pay on time, you’ll generally have to pay a late payment penalty. The late payment penalty is one-half of one percent of the tax (0.5%) owed for each month, or part of a month, that the tax remains unpaid after the due date, not exceeding 25 percent.
You will not have to pay the penalty if you can show reasonable cause for the failure.
The one-half of one percent rate increases to one percent if the tax remains unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy. Currently, if you filed a timely return and are paying your tax via an installment agreement, the penalty is one-quarter of one percent for each month, or part of a month, that the installment agreement is in effect. If you did not file on time and owe tax, you may owe an additional penalty for failure to file unless you can show reasonable cause. The combined penalty is 5 percent (4.5% late filing, 0.5% late payment) for each month, or part of a month, that your return was late, up to 25%.
The late filing penalty applies to the net amount due, which is the tax shown on your return and any additional tax found to be due, as reduced by any credits for withholding and estimated tax and any timely payments made with the return.
After five months, if you still have not paid, the 0.5% failure-to-pay penalty continues to run, up to 25%, until the tax is paid.
The total penalty for failure to file and pay can be 47.5% (22.5% late filing, 25% late payment) of the tax owed.
If your return was over 60 days late, the minimum failure-to-file penalty is the smaller of $100 ($135 for returns required to be filled after December 31, 2008) or 100% of the tax required to be shown on the return. You got to pay someone!! IF YOU NEED HELP GETTING THESE PENALTIES AND INTEREST ABATED, CALL FRESH START TAX
Fresh Start Tax 1-866-700-1040 Get your Bank Garnishments and Tax Levies Released Today!
Fresh Start Tax has a program that gets IRS Bank Garnishments and IRS Tax Levies Released. They probably sent out the 668W, Wage Garnishment or Tax Levy.
The criteria is always the same to get your wage levy or wage garnishment released. You must follow the exact IRS guidelines. The IRS will not change their requirements for garnishment releases. You must meet these conditions for an IRS Wage Garnishment Removal or any IRS Tax Levy Release:
1. All tax returns must be filed current and up to date. If you have unfiled tax returns, Fresh Start Tax can file them immediately. If you have no tax records, Fresh Start Tax can order an income tax transcript from the IRS and begin your tax preparation from the IRS records.
2. Provide Fresh Start Tax with a documented 433-F. This IRS financial statement can be found on our Fresh Start Tax website. The IRS will release No Levy, Wage or Bank Garnishments until they can evaluate your current financial state.
3. Fresh Start Tax’s team of former IRS Agents will discuss the tax resolution strategies that best fit your needs. Our first job it to get you immediate relief of IRS Wage Garnishment.
4. We will find a tax program or settlement program that can put you in hardship status, payment agreement status, or file for an Offer in Compromise to settle your tax debt. Your current financial statement will determine how the IRS will close your case. For your information:
IRS Wage garnishments and Tax Levies stay in effect until the tax is fully paid or until the IRS agrees to release garnishment by a closing method that Fresh Start Tax will go over with you.
Many times the IRS uses levies or tax garnishments by collecting taxes through your employer or your bank account. This is how the IRS gets you in tax compliance, by leverage. When the IRS garnishment or tax levy is filed, the employer has no choice and is required to withhold a certain percentage of each paycheck until the tax levy is released by the IRS. The IRS Wage garnishment (668W) requires that a substantial percentage of your wages be turned over directly to the IRS. Usually about 80% of your income. What Fresh Start Tax can do for you today:
* Former IRS Agents/Managers immediately start to resolve your tax problem
* Immediately send a power of attorney to the IRS so that we talk to them for you, as we know all the strategies
* Get you immediate tax relief the day you call us
* Make sure you are taken off the IRS enforcement action computer system immediately
* Adjust the tax liability to make sure you are paying the lowest amount possible
* File any tax returns that need to be filed and bring you current with the IRS
* Settle the tax liability for the lowest possible amount
* Make sure the IRS never takes your tax refund
* Let the company with moral integrity, the highest BBB rating, fast, affordable and licensed in all 50 States, resolve your case.
Fresh Start Tax 1-866-700-1040 Former IRS Agents, Managers and Instructors can get you some immediate tax relief today on the substitute for return for IRS filing your tax return.
If IRS has filed your tax return what they actual did was file a SFR or a Substitute For Return for you. They are legally obligated to filing tax returns for individuals or businesses that do not file there own tax returns. You will find this IRS Tax Code procedure under 6020B of the IRS Code. They process thousands and thousands of SFR or” filed your return for you each year.”
You have two options to correct this:
1. If you have just received your IRS notice, you can appeal the finding, contact the IRS office and refile your correct tax return
2. If you are late in the game and the tax assessment has already been made, you can file for a Reconsideration Hearing. These tax returns get processed at the Fresno Campus of the IRS.
IRS will do you NO FAVORS when they prepare your return. They will simply:
1.take the standard deduction, no exemptions
2.give you no expenses
3.put you in the highest tax bracket
We can file correct tax returns and work out a settlement deal with the IRS today.
What Fresh Start Tax can do for you today:
Former IRS Agents/Managers immediately start to resolve your tax problem
Immediately send a power of attorney to the IRS so that we talk to them for you, as we know all the strategies
Get you immediate tax relief the day you call us
Make sure you are taken off the IRS enforcement action computer system immediately
Adjust the tax liability to make sure you are paying the lowest amount possible
File any tax returns that need to be filed and bring you current with the IRS
Settle the tax liability for the lowest possible amount
Make sure the IRS never takes your tax refund
Let the company with moral integrity, the highest BBB rating, fast, affordable and licensed in all 50 States, resolve your case.
They take the standard deduction, give you no expenses and file your tax return using the highest tax rate.
You should hire a professional tax firm familiar with these procedures to avoid further IRS enforcement action.
Once this liability has been assessed, IRS will start the process of levies and tax liens.
What Fresh Start Tax can do for you today:
Former IRS Agents/Managers immediately start to resolve your tax problem
Immediately send a power of attorney to the IRS so that we talk to them for you, as we know all the strategies
Get you immediate tax relief the day you call us
Make sure you are taken off the IRS enforcement action computer system immediately
Adjust the tax liability to make sure you are paying the lowest amount possible
File any tax returns that need to be filed and bring you current with the IRS
Settle the tax liability for the lowest possible amount
Make sure the IRS never takes your tax refund
Let the company with moral integrity, the highest BBB rating, fast, affordable and licensed in all 50 States, resolve your case.
If they did, that is known as a substitute for return or SFR. IRS will always send you correspondence that tells you this action has taken place. Many times the SRF tax returns the IRS files are incorrect. IRS always figures the tax return out to there best advantage. Contact Fresh Start Tax and we can help the situation today. Here is how the process works.
* Fresh Start Tax gets transcripts of the records used by IRS to file the tax returns.
* We then send IRS a power of attorney so you never have to talk or deal with the IRS
* . We then sit down with you and go over your tax return.
* Prepare correct tax returns
* We send formal papers to IRS asking for a RECONSIDERATION HEARING
* If you owe money, we work out a payment plan with IRS
* we then make sure your case is closed off the IRS computer
Call Fresh Start Tax 1-866-700-1040 We are Former IRS Agents that can steer you in the right direction regarding the Innocent Spouse Relief.Talk to us before any Innocent Spouse filing with the IRS. We are true tax experts.
Beware and Caution before filing for Innocent Spouse Relief. Did you know the answer to this question: ” I want to file, but I am afraid of what my ex-spouse will do, should I still file?” By law, the IRS must contact your spouse or former spouse. There are no exceptions, even for victims of spousal abuse or domestic violence. Therefore, you should consider all options including an Offer in Compromise Doubt as to Liability. Second question:
” 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. Fresh Start Tax is one of the premier tax resolutions firms in the country. We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations. We have staff that specializes in every facet of the Internal Revenue Service. We know all the IRS strategies. Some of our many specialties include the following:
Immediate Tax Representation
Offers in Compromise/Settlements
Back Tax Relief
Bank Garnishments or Tax Levies
Wages Garnishments or Levies
IRS Notices of Intent to Levy or Final Notices
IRS Tax Audits
Hardships Cases, Payment Plans
Innocent Spouse
Abatement of Penalties and Interest
State Sales Tax Cases
Trust Fund Penalty Cases/ 6672
Our Company Resume:
Our staff has over 110 years of professional tax representation experience
On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents, Former IRS Manager, Instructor and Trainers
Highest Rating by the Better Business Bureau ” A ”
We are a local professional Christian tax firm that have been practicing in South Florida since 1982. We have a Christian accounting and tax practice.
Call us today for a free initial tax consultation. We are A+ rated by the Better Business Bureau.
If you are looking for a Christian Accountant, CPA or a former Christian IRS Agent call Fresh Start Tax.
The principles in the firm: Steven Jacob CPA and Masters in Taxation
Michael D.Sullivan Former Award Winning IRS Agent and Instructor
The company of Fresh Start Tax is Biblical Based Tax and Accounting Firm specializing in all your tax needs with a specialty in IRS Representation.
Fresh Start Tax is one of the premier tax resolutions firms in the country.
We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations.
We have staff that specializes in every facet of the Internal Revenue Service. We know all the IRS strategies. Some of our many specialties include the following:
Immediate Tax Representation
Offers in Compromise/Settlements
Back Tax Relief
Bank Garnishments or Tax Levies
Wages Garnishments or Levies
IRS Notices of Intent to Levy or Final Notices
IRS Tax Audits
Hardships Cases, Payment Plans
Innocent Spouse
Abatement of Penalties and Interest
State Sales Tax Cases
Trust Fund Penalty Cases/ 6672
Our Company Resume:
Our staff has over 110 years of professional tax representation experience
On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents, Former IRS Manager, Instructor and Trainers
Highest Rating by the Better Business Bureau ” A “
