I am a former IRS Collections Revenue Officer. I worked for the IRS for 10 years and been in private practice for 28 years. To reach me call 1-866-700-1040. My website is www.freshstarttax.com.
If you do not pay in full when you file your tax return, you will receive a bill from the IRS. This bill begins the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax, for example if the collection period has expired. The first notice you receive will be a letter that explains the balance due and requires payment in full. It will include the tax plus penalties and interest added to your unpaid balance from the date the tax was due. You can pay by sending the IRS a check or money order, payable to United States Treasury, with a copy of the notice. You may also pay by credit card by calling 888-872-9829, 888-729-1040, or 888-972-9829, or by debit card, by calling 866-472-9829. If you cannot pay in full, you should send in as much as you can with the notice. The unpaid balance is subject to interest compounded daily and a monthly late payment penalty. It is in your best interest to pay your tax liability in full as soon as you can to minimize additional charges. You also might want to consider obtaining a cash advance on your credit card or a bank loan. The interest rate your credit card or bank charges and any applicable fees may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. Paying off your tax debt by using a credit card, obtaining a cash advance or a bank loan may also keep your tax debt from negatively affecting your credit rating. If you are unable to pay your balance in full, we may be able to offer you a monthly installment agreement. You can use the Online Payment Agreement (OPA) or you can complete and mail an Installment Agreement Request, Form 9465 (PDF), with your bill. The option to have the payment directly debited from your bank account is available by simply completing lines 11a and b of Form 9465. Direct debit installment agreements require a lower fee than other installment agreements and help you avoid defaulting the agreement by providing you with the ability to make timely payments automatically. Some installment agreements can be established over the telephone. Refer to Topic 202, Tax Payment Options, for more information. If you are experiencing a financial hardship and are unable to pay anything, we may temporarily suspend collection action. Please call the phone number listed on your bill to discuss this option. Interest and late payment penalties will continue to accrue while you make installment payments or while collection is suspended.
If you are a member of the Armed Forces, you may be able to defer payment.
If you do not qualify for an installment agreement under any of the payment options, you may choose to propose an Offer in Compromise (OIC). An OIC is an agreement between a taxpayer and the IRS that resolves the taxpayer’s tax liability by payment of a reduced amount. Call our office for more details 1-866-700-1040. It is important to contact the IRS and make arrangements to pay the tax due voluntarily. If you do not contact them, they may take action to secure payment.
Some of the actions the IRS can take to collect taxes include: 1. Filing a Notice of Federal Tax Lien 2. Serving a Notice of Levy 3.These action will impact your credit
An explanation of this process is as follows: The federal tax lien is a claim against your property, including property that you acquire after the lien arises. The lien arises automatically when you fail to pay the taxes you owe within ten days after we send our first notice. The government may also file a Notice of Federal Tax Lien, which further protects its interest in your property as a creditor in competition with other creditors in certain situations, such as bankruptcy proceedings or sales of real estate. The filing of a Notice of Federal Tax Lien may appear on your credit report and may harm your credit rating. Once a lien arises, the IRS generally cannot issue a “Certificate of Release of Federal Tax Lien” until the taxes, penalties, interest, and recording fees are paid in full or until the IRS may no longer legally collect the tax. A Notice of Levy is another method the IRS may use to collect taxes. Levying means that we can confiscate and sell property to satisfy a tax debt. This property could include your car, boat, or real estate. The IRS may also levy assets such as your wages, bank accounts, Social Security benefits, and retirement income. In addition, we will apply future federal tax refunds that you are due, to offset the amount you owe. Any state income tax refunds you are owed may also be applied to your federal tax liability.
You can call the IRS at 800-829-1040 to discuss any IRS bill. Please have the bill and your records at hand when you call.
You have rights and protections throughout the collection process. Please refer to Publication 1, which provides additional information on Your Rights as a Taxpayer. More information on the collection process and your rights is available in Publication 594 (PDF), The IRS Collection Process, and in Publication 1660 (PDF), Collection Appeal Rights. These may be obtained by accessing the IRS web site at www.irs.gov.
Fresh Start Tax is one of the premier tax resolution firms in the country. We deal with all types of cases, individuals, businesses 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 collectively.
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 of our business dealings.
We have the highest rating by the Better Business Bureau.
If you have been Audited by the IRS or did not know you were audited by the IRS you may ask for a reconsideration to reopen your tax audit. This happens thousands of times a year. Most of the time the tax audit conducted by the IRS was wrong or you moved and you never even got to go to the hearing. 1-866-700-1040
As former IRS Agents we can ask for and receive on your behalf a reconsideration hearing to have your tax audit reopen.We have been successful on hundreds on these cases. We can reduce your tax liability and settle your case. Check out our website www.freshstarttax.com . We have the highest rating given by the BBB.
Definition of an IRS Audit Reconsideration
An Audit Reconsideration is the process the IRS uses to reevaluate the results of a prior audit where additional tax was assessed and remains unpaid, or a tax credit was reversed. If the taxpayer disagrees with the original determination he/she must provide information that was not previously considered during the original examination. It is also the process the IRS uses when the taxpayer contests a Substitute for Return (SFR) determination by filing an original delinquent return. Some reasons for an audit reconsideration request:
The taxpayer did not appear for the audit.
The taxpayer moved and did not receive the correspondence from the IRS..
The taxpayer has new documentations to present that they did not before A taxpayer might request an audit reconsideration if:
The taxpayer disagrees with an audit assessment from an audit of his/her return. The taxpayer disagrees with an assessment created under the authority of IRC Section 6020(b), Substitute for Return (SFR). Criteria for Reconsideration: In order to request an audit reconsideration:
The taxpayer must have filed a tax return.
The assessment remains unpaid or the Service has reversed tax credits that the taxpayer is disputing.
The taxpayer must identify which adjustments he/she is disputing.
The Taxpayer must provide additional information not considered during the original examination. How the Acceptance of Request might be processed
A request for reconsideration will be considered if:
The taxpayer requests the abatement of an assessment based on information that was not previously considered which, if considered, would have resulted in a change to the assessment.
An original delinquent return is filed by the taxpayer after an assessment was made as a result of a return executed by the IRS under IRC Section 6020(b) or other substitute for return procedures.
There was an IRS computational or processing error in assessing the tax. A request for reconsideration will not be considered if:
The taxpayer has already been afforded an audit reconsideration request and did not provide any additional information with his/her current request that would change the audit results.
The assessment was made as a result of a closing agreement entered into under IRC Section 7121 using Form 906 “Closing Agreements on Final Determination Covering Specific Matters” or Form 866 “Agreement as to Final Determination of Tax Liability” , or some combination of the two forms.
The assessment was made as a result of a compromise under IRC Section 7122. These agreements are final and conclusive. A final compromise determination can be identified on IDRS by the posting of a TC 788.
The assessment was made as the result of final TEFRA administrative proceedings.
The assessment was made as a result of the taxpayer entering into an agreement on Form 870-AD, “Offer of Waiver of Restrictions on Assessment and Collection of Deficiency in Tax” .
The United States Tax Court has entered a decision that has become final, or a District Court or the United States Court of Federal Claims has rendered a judgment on the merits that has become final.
When the Tax Court dismisses a case for lack of jurisdiction, it does not enter a decision and the case is not dismissed on the merits. See IRC Section 7459(d). Likewise, when a District Court or the United States Court of Federal Claims dismisses a case for lack of jurisdiction, the case has not been dismissed on the merits. Special Circumstances
Combat Zone Case
If review of the taxpayer’s account indicates the taxpayer was in a combat zone during the original audit (plus 180 days after leaving the combat zone), reverse all assessments made by Exam. Review of the taxpayer’s account will show a TC 500 with closing codes 52, 54 & 56 that provides the entry and exit dates within the combat zone. The account will also have a –C freeze. Refer to IRM 5.19.2.6.4.1.1 and IRM 4.4.1–9 for further information.
Normal combat zone procedures IRM 4.19.1.4.20 do not apply to reconsideration cases, where the tax year(s) in question was not the same year(s) that the taxpayer was in a combat zone (plus 180 days after leaving the combat zone). For reconsideration requests other than the year(s) that combat zone procedures apply, continue to work and correspond with the taxpayer to resolve the reconsideration request.
Disaster Case Special procedures apply to disaster situations. Refer to IRM 25.16.1, Disaster Assistance and Emergency Relief-Program Guidelines for guidance issued specific to the disaster.
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
No matter what type of business you may have, the IRS knows all the tricks. Chances are, you are not going to fool the IRS. If you have a cash business and you are under audit or have a fear that the IRS is going to audit your business, you may want to call Fresh Start Tax at 1-866-700-1040. We are former IRS Agents who use to audit cash businesses. Call us today should this become problematic for you.
The IRS Cash Audit Techniques Guide. These are the methods the IRS Agent will use during the tax audit:
1.Examination Techniques for a Cash Business
2. Purchases can Reveal Sales
3. Sources
4. Hidden Family and Employee Transactions
5. Check Cashing Services
6. Indirect Methods
7. Percentage Markup Method (and Unit Volume Method)
8. Fully Developed Cash T-Account Method
9. Source and Applications of Funds Method
10. Bank Deposit and Cash Expenditures Method
11. Net Worth Method
12. Key Points to Audit of Books and Records
Since many businesses in this industry are cash oriented, have weak internal controls, lack an audit trail, and have inadequate books and records, the IRS examiner’s audit will focus on probing for unreported income.
It is the responsibility of the business owner to maintain the documents needed to verify their reported income. When the source documents are available, there will be more than one way to test income and other transactions, because different documents will have the same information (a bill of lading and a sales invoice, for example) to check for consistency. When the source documents are not available the examiner must look for ways to discover if all income is reported.
The most likely method for a cash intensive business that does not report their full income is to skim cash prior to its entry in the accounting system. This can be done by failing to deposit all of the funds, by failing to use a cash register to record sales or by failing to report an income stream. The result is that the books will reconcile to the return and the bank deposits, but income will be missing. Skimming can be discovered through excess expenditures or when markup percentages are corrected.
Someone with access to incoming checks can remove a check before it is recorded. Later the check can be added to a cash register in exchange for cash in the same amount. If a check for $500 is taken from the mail, it can later be substituted into the cash register for $500 in cash. This way the total receipts will match the amount deposited. However, when the examiner checks the amount of cash received and the cash deposited, a discrepancy will be evident. The examiner should follow up with the person who worked the register and ask about the check included in that drawer. If necessary, follow up with the payer and find out how it was delivered to the business.
Purchases can Reveal Sales
A quick first step is to look for a purchase that will reveal sales. For example, when a smog certificate is required on each vehicle sold, the number of smog certificates purchased will equal the number of vehicles sold. Once the examiner knows the correct number of items sold, either the taxpayer can produce the missing data or sales can be determined by multiplying the number by the average of the reported sales.
When workers wear uniforms the uniform service invoices can be inspected. They usually list the number of pants and shirts laundered and include the worker’s name embroidered on the shirt. Compare the names on the uniform invoices to the names on the W-2’s to determine if there are more people wearing uniforms than working. (Also, anyone who has ever worn a uniform for work knows the employer doesn’t pay for that- so be sure to check payroll deductions for the amount paid by the employee.)
When a vehicle is towed to a repair shop, the shop initially pays the tow truck, and then passes the cost on to the customer. Use the tow receipts as a sample to ensure each vehicle’s repairs are reported on a sales invoice. If necessary the examiner can locate the customers and contact them to provide their work invoices that were never reported in the shop’s sales.
Another avenue to pursue when the taxpayer does not produce contracts, but it is unlikely the particular industry would do business without them, is to summons the deposit slips, deposit sources and canceled checks to reveal customers and suppliers. The suppliers, identified through the taxpayer’s canceled checks, can be contacted to obtain their invoices. In the building industry, the invoices will reveal the delivery addresses and can identify specific homes that were built.
There are times when it is easier to find unreported income. Following are a few examples: Selling the business – When a business is being offered for sale the new owner and possibly a lender will be looking at the financial records. It is in the taxpayer’s interest to give these sources the correct business information, first because the healthier the business the better price it will garner, but also because the potential buyer may be in the same business and will recognize problematic records. They may think if the records are shoddy, what else is wrong. If the examiner learns of purchase negotiations, it would be helpful to speak with the potential buyer. If there have been potential buyers in the past it would be helpful to interview them. Getting a loan – When a business is looking for funding or to expand, they will need to supply the lender with healthy financial statements. Similarly, if the sole proprietor, majority shareholder or partner is seeking personal loans, banks will want to see the business financials. These financial statements are usually accurate. When an application is made for a loan, the taxpayer is required to list income and expenses, and attests the information is true by signing and dating the application. Loans funded and loans applied for can be summonsed. Divorce – A disadvantaged spouse can attest to the amount of money flowing into the household by verifying what was spent. The spouse may also have knowledge of hidden assets or unidentified sources of income, such as sideline sales or another cash business. Former Employees – especially mistreated employees can discuss business practices they have observed over time. They can say who handled cash and what procedures were overridden. Employees may also be able to prove they were paid in cash to avoid payroll taxes. Hidden Family and Employee Transactions
When employees or workers in the business are extended family members or fellow immigrants, there can be diverted profits in the form of unreported benefits. A convenience store owner, who pays very little to employees, may also allow the worker to remove inventory for personal use. The examiner should be alert to store owners offering workers:
* free or low rent in their residential rental properties
* payment of personal expenses
* removal of inventory for personal use
When a cash intensive business makes payments in cash and there is no information reporting made or it is not required to be made
Check Cashing Services
A check cashing service may refer to a large or small company that will cash personal or payroll checks for a fee. The check cashing service earns its income by charging a percentage of the amount of the check.
Some convenience stores will offer this service, typically charging a 3-5% fee. For example, cashing a $1,000 payroll check at a local convenience store may cost between $30-$50.
As with a bank, the check cashier will require identification, and may not accept certain types of checks, based on their experience. A business that has been in operation for several years will not usually have losses from check cashing. Whenever losses or bad debts are claimed, the examiner must determine that sufficient efforts were made by the business. Contact should be made with the customer to ensure the funds were not repaid to the business in cash and the collection was not recorded.
Other methods have been successfully applied in the following cases:
* Gas retailers (fuel volume from the wholesaler times average price equals gross receipts);
* Drinking establishments (liquor purchases divided by average drinks per bottle times average price per drink with allowance for spillage);
* Package liquor store (purchase of liquor times average markup); and,
* Coin laundries (water consumed divided by average water consumed times price per load equals gross receipts).
Business mark-up standards can be obtained from sources such as:
* Robert Morris & Associates (RMA)
* Bureau of Labor Statistics
* Association and Industry Publications and Websites
* Practitioners Publishing Company (PPC) manuals and other similar industry guides
Percentage CompuFor, a bank deposits analysis, the revenue agent will be able to demonstrate that:
* Every bank statement, deposit slip, and canceled check has been reviewed
* All deposits made into all of the taxpayers’ accounts have been totaled
* All possible transfers of funds between accounts have been searched for and credited to the taxpayer. When a revenue agent only obtains a one-month sample of deposited items, which casts doubt on the effectiveness of the Service’s independent review to ascertain if there were any transfers between accounts. All nontaxable sources of income have been eliminated.
Net Worth Method
The net worth method is founded on the basic accounting theory of the Balance Sheet:
Assets less Liabilities = Net Worth
* Include all assets and liabilities, business and personal.
* The increase in Net Worth is the difference between beginning net worth and net worth at the end of the period.
* Add: Non-deductible expenditures (checks and cash).
* Subtract: Nontaxable income.
* Equals: adjusted gross income (taxable income for Forms 1120 and 1065).
This method is best used when income records appear to be false, incomplete, or missing, and there are substantial assets.
Hire Former IRS Agents to Resolve Your Tax Case. Call us at 1-866-700-1040
We are former IRS Agents who can help resolve Federal Tax Lien Issues. 1-866-700-1040
SEE OUR WEBSITE AT WWW.FRESHSTARTTAX.COM
WE HAVE THE HIGHEST BBB RATING OF ANY COMPANY. WE ARE LICENSED IN ALL 50 STATES
You should be aware that there are 4 ways a Federal Tax Lien can get released.
1. Pay the tax in full
2. Get an offer in compromise accepted and paid in full
3. the Statue of Limitation expires on the federal tax lien
4. post a surety bond. EDUCATION ABOUT THE FEDERAL TAX LIEN: Federal Tax Lien Determinations : THIS IS THE POSITION OF THE IRS
A Notice of Federal Tax Lien (NFTL) filing determination will be made during initial contact:
If speaking to the taxpayer, IRS WILL advise them a NFTL will be filed
Any liability over $5000 the IRS usually files the FTL.
When a Installment Agreement is being established
The taxpayer has broken promises
When a Currently Not Collectible or hardship determination is made
The case is being closed with anything other than:
Full payment
Full abatement
Litigation Examples of when IRS can withhold the filing of the Federal Tax Lien :
the case is in Bankruptcy or Appeals
There is substantiated doubt of liability
The taxpayer provided verification of a loan in process
For both loans and pending adjustments, provide a clear deadline by which the taxpayer must respond with proof the account will be paid in full; explain a Lien will be filed after the date if we receive no response.
It is verified the taxpayer is in bankruptcy or other litigation
Full Pay request of 60 days or less has been agreed to
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
Are you in the Military, Armed Forces and owe IRS ? Do you have to file Back Tax Returns? Call Fresh Start Tax Today!! 1-866-700-1040 If you owe under $25,000 and have all your tax returns filed, I can resolve your case today.
IRS Military Service Deferment
The IRS says, “Reservists called to active duty and enlistees in the armed forces might qualify for a deferral of taxes owed if they can show that their ability to pay taxes was affected by their military service. The Service members Civil Relief Act provides this benefit.
” It adds, the taxpayer must apply for it–it is not automatic. “The taxpayer must show how the military service affected the taxpayer’s ability to pay. A taxpayer must also have received a notice of tax due, or have an installment agreement with the IRS, before applying for the deferral.”Keep in mind, a deferral is not an exception to filing or paying. You will still be required to pay, but no payment will be required until six months after your military service has ended. It will not charge you interest or fees during that period.
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
Question: Can I get copies of my prior year Forms W-2 from the IRS?
Answer: YES, The quickest way to obtain a copy of a prior year Form W-2 (PDF) is through your employer. However,
If that is not possible, you can order and pay for copies of your entire return (attachments include Form W-2 (PDF)) from IRS, or
Order Form W-2 (PDF) information at no charge from the IRS.
The IRS can provide Form W-2 (PDF) information for up to 10 years.
Information for the current year is generally not available until the year after it is filed with the IRS. For example, Form W-2 (PDF) information for 2007, filed in 2008, will not be available from IRS until 2009.
To receive a copy of your return, complete and mail Form 4506 (PDF), Request for Copy of Tax Return.
To receive a tax return transcript, complete and mail Form 4506-T (PDF), Request for Transcript of Tax Return.
