IRS Help – Collection Due Process ( CDP ) Former IRS agents can Help – Ft. Lauderdale, Miami, West Palm Beach

by steve | Oct 22, 2010 | IRS Tax Advice

IRS  Help – Collection Due Process ( CDP ) Former IRS agents can help- Ft. Lauderdale, Miami, West Palm Beach   954-492-0088

 
The IRS Collection Due Process hearing is a tool that is under utilized because so few of us understand the importance of the CDP.
Here is the bottom line:
If you do not get the results you are looking for from the IRS Collection ACS Unit or the local Revenue Officer the Collection Due Process becomes your new best friend. Many times the Automated Collection Service and the local Revenue Officers hands are tied because of certain protocols and procedure they must follow.
That is where the Collection due Process comes in. You can take the case to the manager who is more likely to work out a deal. If that does not work out, you can then take the case to Appeals.
Since I am a former IRS Agent a taxpayer should not be doing this on their own. Call Fresh Start Tax  1-866-700-1040. You need a tax professional if you are at this point.
 

Collection Due Process  and the most Frequently Asked Questions ( FAQs)

 
Question:  I just got a Notice Number CP504. It says – “Urgent!! We intend to levy Certain Assets.” I do not agree that I owe this amount or amounts. How can I appeal this action? Will that stop the levy action? I need to stop this NOW!!!
Answer: The IRS cannot levy with just this notice. They must first issue a formal Notice of Intent to Levy, and that is the next step after this notice. You should therefore call the number on the notice to discuss this situation and your payment options.
Your case is closed as far as any determination about how much you owe, so there is nothing for you to appeal at this point. However, you do have three options to get your case re-opened so the IRS can consider whether you owe any additional amounts:
You can:
1. Pay the amount due in full and file a claim for refund. If the IRS disallows your claim you will have the right to appeal at that time.
2. Follow the instructions in Publication 3598 and request an Audit Reconsideration. Note that you must submit new information the IRS did not previously consider in order to have an audit reconsideration.
3. Follow the instructions in Form 656 and file an Offer in Compromise, Doubt as to Liability.
Question: The IRS Collection function says they are going to file a lien or levy my assets. What can I do?   I need help NOW!!!
Aanswer:   Be sure to contact the IRS Collection function to discuss your situation and your payment options. Refer to Publication 1660, Collection Appeal Rights to review your appeal rights. Some IRS Collection actions qualify for appeal under the Collection Appeals Program (CAP) and some qualify under the Collection Due Process (CDP) appeal. These two programs offer different advantages depending on the facts of your case. Publication 1660 will help you decide which is best for you.


Question: I just received a  IRS Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320, Letter 3172. I don’t believe I owe this amount. What can I do? I need help right now!!!
Answer:. Refer to Publication 1660. The Letter 3172 gives you 30 days to request a Collection Due Process (CDP) hearing to discuss the lien filing. You should request a CDP hearing if you feel the lien is inappropriate.
However, as explained in Publication 1660, in a CDP hearing Appeals can only discuss the existence of or amount that you owe under very limited circumstances. If Appeals cannot consider the underlying liability, you have three options to re-open that issue:
1. Pay the amount due in full and file a claim for refund. If the IRS disallows your claim you will have the right to Appeal at that time.
2. Follow the instructions in Publication 3598 and request an Audit Reconsideration. Note that you must submit new information the IRS did not previously consider in order to have an audit reconsideration.
3. Follow the instruction in Form 656 and file an Offer in Compromise, Doubt as to Liability.
Q. I just received a Letter L-1058 or  LT 11  FINAL NOTICE OF INTENT TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING. I do not believe I owe this amount. What can I do? i need help right now!!!
A. Refer to Publication 1660. The Letter 3172 gives you 30 days to request a Collection Due Process (CDP) hearing. You should request a CDP hearing if you feel the levy is inappropriate.
However, as explained in Publication 1660, in a CDP hearing Appeals can only discuss the existence of or amount that you owe under very limited circumstances. If Appeals cannot consider the underlying liability, you have three options to re-open that issue:
1. Pay the amount due in full and file a claim for refund. If the IRS disallows your claim you will have the right to Appeals at that time.
2. Follow the instructions in Publication 3598 and request an Audit Reconsideration. Note that you must submit new information the IRS did not previously consider in order to have an audit reconsideration.
3. Follow the instructions in Form 656 and file an Offer in Compromise, Doubt as to Liability.
Call Fresh Start Tax   1-866-700-1040

IRS Tax Records: How Long Do I Keep My Records For?

by steve | Oct 22, 2010 | IRS Tax Advice

This is a question that is asked hundreds of times each tax season, ” How long do I have to keep my tax records for?”
Generally, 3 years from the date you filed the return.
Tax records such as receipts, bills, canceled checks, and other documents that support an item of income, expenses or a deduction appearing on a return should be kept until the period of limitation expires for that return. For assessment of tax you owe . Returns filed before the due date are treated as filed on the due date.
There are no periods of limitations to assess tax when a return is fraudulent or when no return is filed.
If income that you should have reported is not reported, and it is more than 25% of the gross income shown on the return, the time to assess is 6 years from when the return is filed. For filing a claim for credit or refund, the period to make the claim generally is 3 years from the date the original return was filed, or 2 years from the date the tax was paid, whichever is later.
For filing a claim for a loss from worthless securities the time to make the claim is 7 years from when the return was due.
For employers, you must keep all your employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later.
For businesses, there is no particular method of bookkeeping you must use. However, you must use a method that clearly and accurately reflects your gross income and expenses. The records should substantiate both your income and expenses. Publication 583, Starting a Business and Keeping Records, and Publication 463, Travel, Entertainment, Gift, and Car Expenses, provide additional information on required documentation for taxpayers with business expenses. Publication 552, Record keeping for Individuals, provides more information on record keeping requirements for individuals.
Keep well organized tax records and you will never have a problem. There are many tax organizers available to do this. Another thought is to scan all your records into your computer with a good back up control.

IRS Federal Tax Liens Releases, Former Agents can Help Miami, Ft. Lauderdale

by steve | Oct 21, 2010 | IRS Tax Advice

IRS Federal Tax Liens Releases : Former Agents can help  Miami, Ft. Lauderdale   954-492-0088

 
Let former IRS Agents help settle your tax problem and help get your Federal Tax Lien Released.
There are only a couple of ways federal tax liens get released. Speak to one of our former IRS Agents and let them personally explain the process to you.
The whole idea is not to have the federal tax lien filed. If the tax lien has not been filed we can do wonders.
If the tax lien has already been filed there are generally only three ways to get the tax lien released.
1 . Pay the Tax in full.
2. Let IRS accept an Offer in Compromise and pay it in full.
3. Lastly, let the ten year statute  expire.
Call us for more detailed explanations.
 

What is a Federal Tax Lien?

Liens give the IRS a legal claim to your property as security or payment for your tax debt. A Notice of Federal Tax Lien may be filed only after:
* IRS assesses the liability;
* IRS sends you a Notice and Demand for Payment – a bill that tells you how much you owe in taxes; and
* IRS neglects or refuse to fully pay the debt within 10 days after we notify you about it.
 
Once these requirements are met, a federal tax lien is created for the amount of your tax debt. By filing notice of this lien, your creditors are publicly notified that we have a claim against all your property, including property you acquire after the lien is filed. This notice is used by courts to establish priority in certain situations, such as bankruptcy proceedings or sales of real estate.
The federal tax lien attaches to all your property and to all your rights to property. Homes, cars etc.
 
BEWARE    BEWARE    BEWARE
Once a federal tax lien is filed, your credit rating will  be harmed. Badly!!!
You may not be able to get a loan to buy a house or a car, get a new credit card, or sign a lease. Therefore it is important that you work to resolve your tax liability as quickly as possible, before lien filing becomes necessary.
Releasing a Federal Tax Lien
We will issue a Release of the Notice of Federal Tax Lien:
* Within 30 days after you satisfy the tax due (including interest and other additions) by paying the debt or by having it adjusted, or
* Within 30 days after IRS accepts a bond that you submit, guaranteeing payment of the debt.
In addition, you must pay all fees that a state or other jurisdiction charges to file and release the lien. These fees will be added to the amount you owe.
 
Usually 10 years after a tax is assessed, a lien releases automatically if we have not filed it again. If we knowingly or negligently do not release a Notice of Federal Tax Lien when it should be released, you may sue the federal government, but not IRS employees, for damages.
Payoff Amount  call   1-800-913-6050
The full amount of your lien will remain a matter of public record until it is paid in full, including all accruals and additions. However, at any time you may request an updated lien payoff amount to show the remaining balance due by calling the toll-free customer service telephone number at 1-800-913-6050
An IRS employee will issue you a letter with the current amount that must be paid before we release the Notice of Federal Tax Lien.
 
Applying for a Discharge of a Federal Tax Lien
If you are giving up ownership of property, such as when you sell your home, you may apply for a Certificate of Discharge. Each application for a discharge of a tax lien releases the effects of the lien against one piece of property. Note that when certain conditions exist, a third party may also request a Certificate of Discharge.
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 (PDF).
Making the IRS Lien Secondary to Another Lien
 
Subordination of the Federal Tax Lien
In some cases, a federal tax lien can be made secondary to another lien. That process is called subordination. Refer to Publication 784, How to Prepare Application for Certificate of Subordination of Federal Tax Lien.

Withdrawing Liens
A filed notice of tax lien can be withdrawn if:
* The notice was filed too soon or not according to IRS procedures,
* You entered into an installment agreement to pay the debt on the notice of lien (unless the agreement provides otherwise),
* Withdrawal will speed collecting the tax, or
* Withdrawal would be in your best interest (as determined by the Taxpayer Advocate), and in the best interest of the government.
 
Federal Tax Lien Inquiries
If you have questions regarding basic lien inquiries such as routine lien releases and lien payoff amounts, contact the Centralized Lien Unit by calling the toll free telephone number (1-800-913-6050).
 
IRS Federal Tax Liens Releases : Former Agents can help  Miami, Ft. Lauderdale

IRS Tax Alien Clearance – Departure Permit – Sailing Permit

by steve | Oct 21, 2010 | IRS Tax Advice

Alien Tax Clearance    Help from Fresh Start Tax LLC

If you are either a resident or a nonresident alien departing the United States, you will usually have to show that you have complied with the U.S. income tax laws before departing from the United States. You do this by obtaining a tax clearance document, commonly called a “Departure Permit” or “Sailing Permit” from the IRS.

Certain foreign diplomats, employees of foreign governments, students, trainees and exchange visitors do not need a departure permit. To find out whether you belong in one of these excluded categories, refer to Publication 519, U.S. Tax Guide for Aliens.
For Non-Resident Aliens

Nonresident aliens who did not have taxable income for the past year and who do not have taxable income for the tax year up to and including the date of departure, may use Form 2063 (PDF), U.S. Departing Alien Income Tax Statement, to apply for a departure permit. Nonresident aliens who have any U.S. taxable income must complete Form 1040-C (PDF), U.S. Departing Alien Income Tax Return, and pay your U.S. tax liability as shown on the Form 1040-C in order to receive a departure permit.

In certain cases, you may furnish a bond guaranteeing payment of tax, but you must pay your tax liability when your final income tax return is due. Any tax you pay counts as a payment on your final return that you must file after the end of your tax year.
Resident Aliens

If you are a resident alien and you did not have taxable income for the prior year and do not have taxable income for the tax year up to and including the date of departure, or you are a resident alien who is leaving only temporarily, use Form 2063 (PDF) to apply for a departure permit. Resident aliens who have taxable income may still use Form 2063 to apply for a departure permit if the IRS is satisfied that your departure will not hinder the collection of tax. If you are a resident alien leaving the United States with no definite plans to return for the year, you will have to complete Form 1040-C (PDF), and pay your tax liability as shown on the Form 1040-C in order to get a departure permit. In certain cases, you may furnish a bond guaranteeing payment of tax, but you must pay your tax liability when your final income tax return is due. Any tax you pay counts as a payment on your final return that you must file after the end of your tax year.

When and How to Apply for a Departure Permit

You must obtain your departure permit before you leave the United States. You should apply for the departure permit no earlier than 30 days before you plan to leave, but at least two weeks in advance of your departure. To get your departure permit, visit your nearest Taxpayer Assistance Center (walk-in IRS office).

If you are married to an alien who is leaving the country with you, both of you must go to the IRS office. For information on the location of the Taxpayer Assistance Center (walk-in IRS office) nearest to you, call 800-829-1040, or visit www.irs.gov.

You must bring with you” all the following records and information” for the current year that apply to you:

* A valid passport and your alien registration card or visa,
* Copies of the last two years’ U.S. income tax returns with proof of payment of any balances due,
* Proof of any payments of estimated tax for the past year and this year,
* Substantiation of deductions for business expenses and itemized deductions claimed,
* Documentation for dependents claimed.
* A statement from each employer showing the wages paid and tax withheld from January 1st to the date of departure (For this statement you can use a payroll deduction slip for your last paycheck if it shows this information),
* If you are self-employed, you must bring a profit and loss statement for the current year up to the date of departure,
* Documents showing any gain or loss from the sale of personal and/or real property, including capital assets and merchandise,
* Documents concerning scholarships or fellowship grants,
* Documents indicating that you qualify for any special tax treaty benefits,
* Document verifying your date of departure from the United States, such as an airline ticket, and
* Document verifying your U.S. taxpayer identification number, such as a social security card or an IRS issued CP 565 showing your individual taxpayer identification (ITIN) number.

If you have these documents and pay any tax due you should receive your departure permit immediately.
Additional Rules Applicable to Departing Resident Aliens

Departing resident aliens who have been treated as U.S. resident aliens during at least three consecutive calendar years, who will cease to be treated as U.S. residents for a period of less than three years before being treated as U.S. residents again will be covered by section 7701(b)(10). These individuals will be subject to tax under section 877(b) for the period lasting less than three years during which the individual is not treated as a U.S. resident before the individual resumes being treated as a U.S. resident again.

If you are a departing resident alien and you plan to surrender your green card and you have been a lawful permanent resident (green card holder) in at least 8 taxable years during the period of 15 taxable years ending with the taxable year during which you surrender your green card, you must file Form 8854 (PDF), Expatriation Information Statement, and notify the Department of Homeland Security of your termination of residency

Certain expatriates that renounced their U.S. citizenship or terminated their long-term resident status before June 17, 2008, might be subject to alternative tax regime under section 877 for 10 years after expatriation if they met certain statutory requirements. Section 877 no longer applies to those individuals who expatriate after June 16, 2008.

If you are a long-term resident and you expatriate after June 16, 2008, you may be subject to the new mark-to-market regime of section 877A, the new expatriation law. Those expatriates subject to the mark-to-market regime of section 877A will be treated as having sold all of their property for fair market value on the day before they expatriate and will be subject to tax on the unrealized gain above $600.000. This $600,000 exclusion amount will be annually adjusted by a cost of living adjustment factor for calendar years after 2008.

Any gains or losses subsequently realized on actual disposition of the property will be adjusted for gains and losses taken into account as a result of the deemed sale, without regard to the $600,000 exclusion amount. Taxpayers may elect to defer payment of tax attributable to property deemed sold under procedures currently set forth in Form 8854.

The mark-to-market regime described above will apply to most types of property interests held by the individual on the date of relinquishment of citizenship or termination of residency, with certain statutory exceptions. Deferred compensation items, specified tax deferred accounts, and interests in non-grantor trusts, are excepted from the mark-to-market regime, but are subject to certain special rules that may require current payment of tax and/or impose additional reporting requirements.

The new mark-to-market regime applies to any U.S. citizen who relinquishes citizenship and any long-term resident who terminates U.S. residency, if such individual is a “covered expatriate.” A covered expatriate is an expatriate that (1) has an average annual net income tax liability for the five preceding years ending before the date of the loss of U.S. citizenship or residency termination that exceeds $145,000 (as adjusted for inflation in 2009); (2) has a net worth of $2 million or more on such date; or (3) fails to certify under penalties of perjury, on Form 8854, that he or she has complied with all U.S. Federal tax obligations for the preceding five tax years.

In addition, the new law will impose a transfer tax on certain gifts or bequests (transfers made at death) made to U.S. persons from individuals treated as covered expatriates.

A modified Form 8854 is available in order for taxpayers to comply with the new law. Covered expatriates that had deferred compensation, a specified tax deferred account, or an interest in a non-grantor trust on the day before they expatriated must file new Form W-8CE, Notice of Expatriation and Waiver of Treaty Benefits, with the payor of such income

This info comes from irs.gov. Made available to our clients.

Extensions of time to File your tax return -1040

by steve | Oct 21, 2010 | IRS Tax Advice

Extensions of Time to File Your Tax Return
There are three choices for filing Form 4868 (PDF), Application For Automatic Extension of Time To File U.S. Individual Tax Return;
1) electronically (such as by computer),
2) by paying part of your tax due with a credit card through an outside service provider listed on the form, or
3) by mail. If you file your Form 4868 electronically you will receive an acknowledgement or confirmation number for your records and you do not need to mail in Form 4868. If you need to pay additional taxes, you may do so through the outside service provider or through e-file. If you were or are serving in a combat zone, a qualified hazardous duty area, or in a contingency operation, refer to Topic 301 for more information about extensions.
You can refer to your tax software or tax professional for ways to file electronically using e-file services. If you wish to make a payment using the electronic funds withdrawal option, be sure to have a copy of last year’s tax return. You will be asked to provide the Adjusted Gross Income from the return for taxpayer verification.
Besides filing electronically, you can generally get an extension of time to file if you pay part or all of your estimate of income tax due by credit card. You may pay by phone or Internet through one of the service providers listed on Form 4868. Each service provider will charge a convenience fee based on the amount of the tax payment. At the completion of the transaction, you will receive a confirmation number for your records.
In addition to filing Form 4868 electronically, or by paying part of your tax by credit card, you can file Form 4868 by filling out the form and mailing it to the place where you will file your return.
Please be aware that an extension of time to file is NOT an extension of time to pay.