Given the economic market and condition of today’s real estate market, more individuals are having to turn to the IRS tool of Discharging the Federal Tax Lien. Form 783
A discharge of the Federal Tax Lien means making the IRS Tax Lien secondary to another lien or removing the federal tax lien from a piece of property because there is no equity in the property.
There are two good examples of when the Discharge could take place.
Examples of this could be:
1.IRS has place a Federal Tax Lien on your home and you have built up some equity in the property. You may want to submit an Offer in Compromise and you need the equity out of your home to make the Offer. You can apply for the discharge of the Federal Tax Lien. What actually take place is that the IRS re- records their position . In effect, the IRS it letting someone else take their place in line as a note or mortgage holder.
2. You need to sell your home. There is a federal tax lien filed. Before it clears title the Federal Tax Lien needs to be removed. By filing out the IRS form 783, if accepted by the IRS, the Federal Lien will keeps it place but your property will be removed from the lien. Keep in mind IRS is not fully releasing the federal tax lien, they are simply releasing a specific piece of property from the lien.
Applying for a Discharge of a Federal Tax Lien
If you are giving up ownership of a piece of property, such as when you sell your homestead, you may request IRS for a Certificate of Discharge of the Federal Tax Lien. Each application for a discharge of the federal tax lien releases the effects of the lien against one piece of property.
A third party may also request a Certificate of Discharge of the Federal Tax Lien. If you’re selling your primary residence, you may apply for a taxpayer relocation expense allowance. Certain conditions and limitations apply. Refer to Publication 783, Instructions on How to Apply for a Certificate of Discharge of Property from the Federal Tax Lien
Most people have no idea that they can Appeal the Federal Tax Lien. There are certain criteria required.
Here is the process of Appealing the Filing of a Lien
The Internal Revenue Services IRM requires that the Service notify you in writing not more than 5 business days after the filing of the Federal Tax Lien. The IRS has options on how this notification takes place. The Internal Revenue Service can give you this notice in person, leave it at your home or your usual place of business, or send it by certified or registered mail to your last known address.
You may want to ask an IRS Revenue Officer or the Local Manager to review your case to see how this process took place. You have the option of requesting a Collection Due Process hearing with the Office of Appeals by filing a request for a hearing with the Internal Revenue Service office listed on your notice. Feel free to ask the local office for documentation.
You must file your request ( CDP ) to the IRS by the date shown on your notice. Some of the issues you may discuss include:
1. If you paid all you owed to the IRS before the IRS filed the lien,
2. The IRS assessed the federal tax and filed the lien when you were in bankruptcy, and/or subject to the automatic stay during bankruptcy,
3. The IRS made a procedural error in the tax assessment,
4. The time to collect the tax, called the statute of limitations, expired before we filed the lien. The normal statute of limitation period is 10 years from the date of assessment. If your tax return was adjusted or audited, it would be ten years from the date of the later tax assessment date,
5. You were not given the opportunity to dispute the assessed tax liability,
6. You wish to make spousal defenses. The Innocent spouse process may be available to you.
The IRS Collection Due Process Hearings Officer will issue a determination letter on the appealed case. That determination may support the continued existence of the filed federal tax lien ( FTL ) or it may determine that the federal tax lien should be released or withdrawn. If you disagree with the IRS Appeal’s determination, there is a 30-day period starting with the date of determination, in which you may request judicial review in a court of proper jurisdiction. The start date of the 30 days is based strictly on the date of the notice letter.
Have former IRS agents and managers who worked in the South Florida IRS offices review your offer in compromise to find out if it has acceptability potential.
Did your Offer in Compromise get rejected?
Call the former IRS Agents at Fresh Start Tax. We can file your appeal for the offer in compromise Appeal for you. Being former IRS Agents we may determine it is in your best interest to modify the Offer in Compromise. We worked cases for the IRS and were former instructors. We taught other IRS employees on the Offer Program. No one is more qualified to handle your tax matter than Fresh Start Tax.
General Information for the Appeal of an Offer in Compromise A rejected Offer in Compromise may be appealed in one of two ways.
a.A taxpayer may complete and submit Form 13711 Request for Appeal of Offer in Compromise,
b., a taxpayer can simply draft a letter containing the following information:
1. Taxpayer’s name, address, SSN, and daytime telephone number;
2. A statement that the taxpayer wants to appeal the IRS findings to the IRS Appeals office;
3. A copy of your rejected offer letter, and the tax period or years involved;
4. A list of the specific items you don’t agree with and the reasons why you don’t agree with each item;
5. Any additional information you want the Appeals Office to consider;
6. The facts supporting your position on any issue that you do not agree with;
7. The law or authority, if any, on which you are relying; and
8. Sign the written protest, stating this it is true under the penalties of perjury.
Regardless of the method used, an appeal must be requested within 30 days from the date on the IRS’s letter rejecting the Offer in Compromise.
Fresh Start Tax is one of the premier tax resolution firms in the country. We deal with all types of cases, individuals, business and high dollar corporate entities. We have a staff that specializes in every type of case.
Some of our specialties include the following:
Immediate Tax Resolution and Representation
Offers in Compromise and Settlement
Back Taxes/ Unfiled or Never filed tax returns
Bank or Wage Levy Garnishments
Letters of Intent of Notice to Levy
IRS Tax Audits
Hardship, part pay agreements
State Sales Tax problems and Resolution
Our company resume:
Our staff has over 140 years of professional tax representation experience
On staff are Board Certified Tax Attorney’s, CPA’S, former IRS Agents, Managers and Instructors.
Former STATE Department of Revenue Manager and Instructor.
We are extremely moral and ethical in ALL our business dealings
We have the highest rating by the Better business Bureau
There are many factors that the IRS uses to determine who is responsible for the trust fund penalty better known as the TFRP. the Revenue Officer making the determination make a decision using the preponderance of evidence. As a former IRS Revenue Offer, it always leads to somebody. Here are some of the factors used by the IRS
Evidence That May Support Recommendations
In the majority of cases, most of the evidence that can be secured to support recommendations of TFRP will be either corporate records or bank records.
The documentation, including bank records, will be requested from the corporation whenever possible. If the corporation does not provide the requested records, a summons will be served on either the corporation, the bank, or both to secure the required documents
Photocopies of the documentation should be maintained in the TFRP case file as evidence to support the recommendation to assert the TFRP.
Determine on a case by case basis the amount of documentation required to support the recommendation to assert the penalty. There must be sufficient documentation in the file to support each recommendation for assertion. Bank records and copies of the applicable tax returns will be secured on almost every case. If they are not secured, the case file must be documented with the reason(s) why they were not secured and why they are not necessary to support the recommendation.
Corporate records that can be reviewed include:
Articles of Incorporation
Minute Books
Forms 941 and 1120 or 1065
Note:
For cases where the employment tax returns were submitted in an electronic format (E-file or TeleFile), the signature information is not available on the printed document since the forms are signed via an IRS issued PIN. Use Form 4844 to request the specific items below from the appropriate Submission Processing Center. For TeleFile returns, request the “signature document” from the Cincinnati Submission Processing Center (CSPC). For E-File returns, request a “copy of Form 8633” , or if the authorized signer is a Reporting Agent, request a “copy of Form 8655” from the Andover Submission Processing Center (ANSPC). For On-line returns request a copy of the “PIN signature receipt” from CSPC.
Payroll records
Any other records that may be relevant to determining the roles and responsibilities of individuals involved with the corporation
The corporate records will be reviewed to determine:
Duties (and changes to duties) of officers, directors, etc.
Appointments and resignations of officers, directors, etc.
Responsibilities of individuals to file and pay tax returns
Issuance of stock to officers
Assets transferred to officers
Loans made to officers
Unreported payroll and other taxes
Diversion of funds
Borrowing of funds not used to pay taxes
Bank records that can be reviewed include:
Canceled checks and bank statements
Signature cards and correspondence to the bank relative to changes affecting the signature cards
Loan applications and records of loans
Any other records that may be relevant to determining which individuals were involved in the financial affairs of the business
The bank records will be reviewed to determine:
Authority of persons to sign checks and deposit funds
Authority of persons to obligate the corporation by borrowing
Diversion of funds to officers, members, etc.
Deposits and withdrawals of alleged loans to corporation by officers, members, directors, etc.
Excessive salaries, expenses, etc.
Payment of other obligations
Deposit records for monies received for sale of assets
Deposit records of payments for stock in the corporation
IRS also takes a 4180 interview from all parties who it deems may be responsible. You can find this form on our website on the home pages toolbar mark IRS forms. After reviewing the aforementioned information and the 4180, the decision for the IRS becomes very easy.
Fresh Start Tax is comprised of Former IRS Agents, Managers and Instructors. The staff also includes CPA’S, tax attorneys and former Managers with the Department of Revenue. Our company are experts in the field of tax and tax resolution. We are licensed to practice in all 50 States. We are fast, affordable and put a premium on communication with our client. Our firm has the highest rating given out by the Better Business Bureau. We have a combined 140 years Federal and State experience.
Alimony Paid -Taxable??? Amounts paid under a divorce or separate maintenance decrees or written separation agreements entered into between you and your spouse or former spouse will be considered alimony for Federal income tax purposes” if:”
1. You and your spouse or former spouse do not file a joint return with each other
2. You pay in cash (including checks or money orders)
3. The payment is received by/or on behalf of your spouse or former spouse
4. The decree of divorce or separate maintenance does not say that the payment is not alimony
5. If legally separated under a decree of divorce or separate maintenance, you and your former spouse are not members of the same household when you make the payment
6. You have no liability to make the payment (in cash or property) after the death of your spouse or former spouse, and
7. Your payment is not treated as child support or a property settlement You may deduct from income the amount of alimony or separate maintenance you paid, and you must include in income the amount of alimony or separate maintenance you received. Child Support
Child support is never deductible. If your decree of divorce or separate maintenance provides for alimony and child support, and you pay less than the total required, the payments apply first to child support. Any remaining amount is considered alimony.
Non-cash property settlements, whether in a lump sum or installments, do not qualify as alimony. Voluntary payments (i.e., payments not required by a divorce decree or separation instrument) do not qualify as alimony.
You do not have to itemize deductions to deduct your alimony payments. You must claim the deduction on Form 1040
You cannot use Form 1040A or Form 1040EZ. You must provide the social security number of the spouse or former spouse receiving the payments. If you don’t, you may have to pay a $50 penalty and your deduction may be disallowed.
If you are the spouse or former spouse who is receiving the alimony, you must report the full amount as income on your Form 1040.
You cannot use Form 1040A or Form 1040EZ. If you do not give your social security number to your spouse or former spouse who is making the alimony payments, you may have to pay a $50 penalty. For professional tax preparation and representation call Fresh Start Tax 1-866-700-1040
We are former IRS Agents who not only worked the Offer Program at IRS we were instructors who taught the offer settlement program to the new IRS Agents. We know all the tax strategies to get the lowest possible settlement. 1-866-700-1040
We have the highest rating with the Better Business Bureau, licensed to practice in all 50 States, and guarantee the highest moral integrity in the handling of all cases.
You should know from the beginning that not everyone qualifies for an Offer in Compromise or Tax Settlement. We evaluate your case to make sure that the Settlement Program serves you the best. You do not want to spend you money and not qualify for the tax settlement. We are very careful to put everyone in the program. Only 25% of all offers or tax settlements are approved. This is what Fresh Start Tax 1-866-700-1040 can do for you:
1. You will receive a free evaluation of your case before any fees come to our company
2. Determine the best tax strategy for your individual tax situation,
3. Find out the lowest possible settlement dollar
4. Review our finding with you and make a determination of how to proceed. 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 ”
