by steve | Jun 2, 2010 | IRS Tax Advice, Tax News
Taxpayer Advocate Service is an independent organization within the IRS, that help taxpayers resolve their tax problems with the IRS and recommend changes that will prevent the problems.in the future
Here are eight things things every taxpayer should know about Taxpayer Advocates Office
1. Taxpayer Advocate Office is your voice at the Internal Revenue Service.
2. The service is free, confidential, and tailored to meet your needs.on your particular case.
3. You may be eligible for TAS help only if you have tried to resolve your back tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just is not working as it should.You must have tried working through your problem and have has documented proof.
4. TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals.They take all cases that cannot be resolved except for criminal activity.
5. TAS employees know the IRS and how to navigate though the maze of red tape . They will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved.
6. TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. You can call your local advocate, whose number is in your phone book, in Publication 1546, Taxpayer Advocate Service.
7. You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www.taxtoolkit.irs.gov .
8.It is best to use a tax professional who has worked thousands of these cases because they know the short cuts and administrative procedure to get the case resolved quickly. When a tax professional works with TAS expect results fast.
by steve | Jun 2, 2010 | IRS Tax Advice
The IRS Voluntary Disclosure Policy
The Voluntary disclosure Policy allows taxpayers to submit the missing returns and usually avoid criminal prosecution. All returns must be fully accurate. In some cases IRS will have the taxpayer file 3 years, some cases, 6 years other cases all years. Each case is different and you should contact your tax representative to give you the best advise for your situation. At some point in time, IRS will make contact with you by letter , by a Revenue Offer or by a criminal investigator.
At some point you need to make a decision to move forward and get this done. Be sure and do your best to voluntarily inform the IRS of your failure to file.
You also need to file a correct tax returns return, make full payment or work out a settlement, payment agreement and make these disclosure before finding out you are under criminal investigation by IRS
Another factor. The IRS has increased its budget for technology that helps locate non-filing taxpayers; in fact they have targeted the problem as a high priority. They use computer matching and software programs to help as well. The IRS Information Reporting System matches W-2’s and 1099’s to the tax documents submitted.Tax professionals have the ability to get all your income reports from IRS without stirring up the hornets nest.
Fresh Start Tax has the ability, experience the knowledge to assist you with your not filed tax returns on your back tax issues on your IRS problems. Dealing with the IRS be one of the most stressful times of anyone’s business or individual life . Get an experienced tax professional who has experience dealing directly with the IRS for clients and who has helped people in similar situations get rid of their IRS problems for good. Some of our staff members are former IRS agents.
We have on staff of tax attorneys, CPA”S and former IRS to resolve your tax issues today.Call us and stop the stress NOW.
by steve | Jun 2, 2010 | IRS Tax Advice
Internal Revenue Service at some point will catch up on all non filers. the system that IRS now has is being designed for full compliance from all tax payers. IRS is stepping up their enforcement by hiring new agents and using better technology to do so.
Whether you delay filing your tax return for a year or two, or have never filed, your time will come. About ten to fifteen million people or more fail to file their tax returns each year according to IRS statistics. If you are a non filer, you could be looking at criminal and civil penalties that IRS will impose on you. The question is when will this take place.
IRS has the ability to file what the Service calls “substitute for return” ( SFR) procedures in these cases. IRS will and can and pull up income records and prepare your tax return for you. They have all your wage records and 1099’s you have been given for the past 7 years.
Failure to file or tax evasion is serious if not dealt with. It’s wise to handle these situations head on and be pro-active today and get this worry off your chest.
If you are being pursued for these types of tax issues on back taxes for IRS Problems you may get a call from the IRS Criminal Investigation. You also could be read your Miranda Rights. You need to know that they routinely make an example of a some people from all walks of life as well as certain industries so the rest of the taxpaying American public will take notice. They can be very successful in their best efforts. do not let it get to this point. There TCMP program deals with all industries.
Fresh Start Tax has found more and more cases coming to the fore front. We believe there is a special program in place especially in transient areas in certain States for enforce the Federal Tax Laws.
The first thing you should do is to contact a tax professional who can fully engage your needs, file the tax return and have an end goal strategy in mind to resolve your case.
Be mindful, it is better to file and owe than never file. Call us today so we can get started to resolve all your tax issues on back taxes.
by steve | Jun 2, 2010 | IRS Tax Advice
Delinquent payroll taxes could be one of the most serious financial hurdles facing a business and the corporate officers or responsible persons. Congress enacted the” Trust Fund Recovery Penalty Statute” to encourage prompt payment of withheld and other collected payroll taxes by allowing the IRS to assert a liability against responsible third parties under code Section 6672. As a former Revenue Officer I set up thousands of these cases and know what it takes to get our clients off the hook. The amount of the trust fund penalty imposed by the federal statute for failure to comply with its provisions is measured by the payroll taxes required to be collected or collected and not paid over. That is why the liability is referred or called the “100% Penalty”. It is 100% of the taxes that you held in trust. The IRS penalty is civil in nature, not criminal in nature.The trust fund tax formula is usually all the withholding and one-half of the social security tax. This is a general rule.
Congress clearly restricted the provisions of IRC 6672 to the so called”Trust Fund” taxes as defined in IRC . In other words, the penalty only applies to collected or withheld payroll taxes that are imposed on persons other than the party who collects payroll taxes, accounts for payroll taxes, and pays over such payroll taxes. Excise taxes are the trust fund as well.
There are two major tests to determine if someone is subject to the provisions of IRC 6672 of the Code.
:
Whether the party against whom the penalty is proposed had the duty to account for payroll taxes, collect payroll taxes, and turn over trust fund payroll taxes; and (2) Whether he or she willful failed to perform this duty relating to the trust fund payroll taxes.
In general, the IRS has the right to pursue any person who, meets the tests, even if he was not an officer or employee of the corporation which originally collected the payroll taxes. Most times however, it is usually the corporate officers.Form 4180 is used to determine responsibility and the revenue officer assigned the case fills out the form with responsible persons.
The penalty can be assessed against more than one person. It is not unusual for the IRS to assess the penalty for payroll taxes against several responsible persons. In the event that the IRS assesses several persons for trust fund payroll taxes, it may collect the entire liability from any of those persons. most of the time the bank signature cards are used to determine who is responsible and is almost an acid test for the IRS. Those who sign bank signature cards have a hard time being removed from the penalty.
When a corporation and its officers fails to pay payroll taxes, the IRS may proceed against the persons responsible for the nonpayment of such payroll taxes. IRC 6672 provides statutory authority for imposing a Trust Fund Recovery Penalty on “any person required to collect payroll taxes, truthfully account for payroll taxes, and pay over collected payroll taxes ” who willfully fails to collect such payroll taxes or willfully attempts in any manner to evade or defeat such payroll taxes or payment thereof. Generally, two conditions must be met in order to assess and collect the Trust Fund Recovery Penalty tax: (1) The taxpayer must be a responsible person for such payroll taxes, an (2) The taxpayer’s conduct must be willful in relation to the mishandling of such payroll taxes
The key to liability for payroll taxes under Section 6672 is control of checks,the monies, who paid the bills, who authorized the bills to be paid, the power to control the decision-making process by which the employer corporation allocates funds to other creditors in preference to its withholding payroll taxes obligations. Liability attaches to those with power and responsibility within the corporate structure for seeing that the taxes withheld from various sources are remitted to the IRS. This duty is generally found in corporate officials or employees charged with general control over corporate business affairs who participate in decisions concerning payment of creditors and disbursal of funds.
The IRS must prove and establish a second element for liability under the Trust Fund Recover Penalty for payroll taxes. That element is “willfulness.” A responsible person need not have failed to pay the payroll taxes with a fraudulent or evil purpose. That person must merely be shown to have knowingly and intentionally disregarded the duty to pay trust fund payroll taxes to the IRS. “Willfulness” can be defined as “‘an act is willful if it is voluntary, conscious, and intentional. A responsible person acted willfully if he ‘knowingly’ used available funds to prefer other creditors to the IRS.
There are many factors used by the IRS to determine who is / are the responsible persons. After a review of corporate documents, bank signature cards, interviews, completion of the form 4180 and reviewing the canceled checks it is very easy for an experienced Revenue Officer to make such a determination.
Control is ultimately found in who controlled the money.We can tell you today if you will be found responsible by telling us your set of facts. Appeals hearing are available with Trust Fund cases.
Fresh Start Tax can help you in the very sensitive situation. Call us today so we can evaluate your case.
by steve | Jun 2, 2010 | IRS Tax Advice
Seizures by the Internal Revenue Service Last Year the IRS seized over 600 Homes, businesses and vehicles
Yes the Internal Revenue Service can seize your Home, Cars , Business and Bank Accounts This is always the last choice of last resort and is not usually not done unless there is a fairly serious problem that has gone unresolved for quite some time. If you owe on a continual basis your odds go up that a seizure may be coming forth. For the most part, the IRS can take any asset it chose too.IRS enforcement actions have increased in the last several years. The IRS has hired more Revenue Officers so expect enforcement action to set up even more in the upcoming season.See the Fresh Start Tax news release on this matter and subject.Go on our site into the press release tab.
Before the IRS conducts a seizure, they will normally perform an investigation to determine the equity in the item to be seized. In almost all cases, the IRS will not seize the asset unless there is sufficient equity in property that would warrant the seizure and be in the best interest of the federal government.
IRS must have sent you a final notice, with appeal rights that warrant a hearing officer for a seizure to take place.
Over the past years, Congress has made it much more difficult for the Internal Revenue Service to seize personal residences. Except in very special cases, it is unlikely that the IRS Collection Division will consider seizing your home. Rental properties or vacation homes, RV or boats are a different story and if there is sufficient equity can be seized without great difficulty.All these cases can usually be resolved with a solid representative working along with you the taxpayer. Most all of these situations can be avoided.
Businesses may be seized as well, but again, it is the exception, not the rule. The IRS must get a writ from a Federal judge. The IRS also must investigate to determine if there are any lien holders,mortgages or UCC’s against property in the business. Then, if the IRS has to go to sale, it must conduct an auction of every item in the business. I have personally seized over 300 businesses or homes as a former Revenue Officer. It is not something I wanted to do but in most cases the taxpayer gave you no choice. In today?s economic environment, it is very rare to see a home or business seized. The IRS may try to force the business owner to shut down by continually levying receivables or seizing bank accounts or making legal threats but a seizure today is pretty unlikely. The Service looks for other solutions first. the key is to stay current so you at least are making a solid effort. If you cannot be current, you should ask yourself, is it time to close the doors.
Cutting to the chase. When you receive certified mail of a Notice of Intent to Levy, you had better react fast by contacting IRS or hiring a LICENSED tax professional like the staff at Fresh Start Tax to represent you or your company and your best interest. Do not wait to the IRS to act first, be pro-active. If you owe delinquent taxes, the IRS is going after your bank accounts, your wages and your assets. They are the worlds most powerful collection agency located in your backyard. . By contacting Fresh Start Tax today we can work out a deal or settlement to fits your needs and your budget needs. If you wait, IRS wins. Make a call to us today so you never have to speak with the IRS ever again. We are former IRS agents that know our way around the block. As a side note, IRS can seize your whole pension plan and IRA as well.
We can set you up with a settlement, business installment agreements, Offer in Compromise, installment agreements, abatement of penalties and interest, or place you in a hardship if you qualify for the programs. We simply are the best.
by steve | Jun 2, 2010 | IRS Tax Advice, Tax News
Overview of the Estate Tax Lien
1.
Before the Federal Government files a federal tax lien on an estate tax case, the IRS gives careful thought to the advantages and limitations of each type of estate tax lien.
2.
In many cases, the general lien is the best tool to protect the federal government’s interest. The Federal Estate Tax Lien is automatically created when any resident of the United States dies. No recorded notice is required for it to become effective. It attaches to all of the assets that are part of the decedent’s gross estate and are required to be reported on Form 706, United States Estate Tax Return, and is security for any estate taxes that may be determined to be due. If a probate asset is transferred or liquidated without payment of the tax, but for the exceptions detailed at IRM of the Internal Revenue Manual, the federal estate tax lien continues to attach to the asset. If a non-probate asset is transferred or liquidated without payment of the tax, a liability equal to the value of the asset at the time of the decedent’s death becomes due from the transferee. A separate assessment against the transferee is not needed. Assets of the gross estate can be sold or encumbered free of lien if the proceeds from the sale or loan are used for the payment of charges against the estate or expenses of its administration that are allowed by any court having jurisdiction.
3.
A limitation of the general federal estate tax lien is that it has an absolute life of 10 years. It cannot be extended. Estate tax attributable to an estate’s interest in a closely held business may be paid over a 14-year period if an extension of time to pay under IRC is in effect which could potentially leave the Service without lien protection for four years if a notice of lien is not recorded before the 10 years have elapsed.
4.
The filing of Form 668-J will secure the deferred taxes for the duration of the extension. The collection statute of limitations is suspended during the period of the extension.
1.
The federal estate tax lien attaches only the property specified on the recorded lien. A lien on property with equivalent value can be substituted for the actual property upon agreement between the Internal Revenue Service and all parties with an interest in the property.
2.
When estate property is listed on the recorded IRS Form 668-J, it is automatically released from the effects of the general estate tax lien.
3. Find the closest Estate and gift Unit of the Internal Revenue Service and they should be able to help you with these issues.
Requesting a Release, Discharge of Property From, or Subordination of Unrecorded Federal Estate Tax Lien
1.
Releasing the Estate Tax Lien Occasionally, the IRS office receives requests for release of the unrecorded estate tax lien. However, just as there is no provision for recording a notice of the unrecorded estate tax lien, there is no provision for recording a release. Individuals are instructed to provide documentation to potential purchasers of the decedent’s property that either there was no Form 706 filing requirement, or, if Form 706 was filed and a closing letter has been provided to the estate by Estate & Gift Tax and a copy of the return, the Estate Tax Closing Letter 627 , and verification of payment, are evidence that the federal estate tax lien has been satisfied.
2.
Discharge of the Estate Tax Lien
1.
Those individuals looking for discharge under are usually submitted on Form 4422, Application for Certificate Discharging Property Subject to Estate Tax Lien. These applications will be processed by Estate and Gift division of IRS. If Form 706 has not been filed or if a closing letter has not been issued. If Form 706 has been filed and a closing letter has been issued, applications for discharge will be processed by Advisory Unit of IRS , United States Certificate Discharging Property Subject to Estate Tax Lien, is used to discharge the property.
2.
Applications for discharge will be processed by Advisory Unit in the local office. If Form 706 has not been filed or if a closing letter has not been issued, Advisory will consult with Estate and Gift division in order to determine the government’s lien interest.
3.
Subordination of the Estate Tax Lien Individuals looking for a subordination will be processed by the Local Advisory Unit. If Form 706 has not been filed or if a closing letter has not been issued, Advisory Unit will consult with the Estate and Gift Division in order to determine the government’s lien interest.
The Federal Gift Tax Lien
1.
The provisions of the federal gift tax lien are also delineated in IRC and parallel those for the general estate tax lien. ( Same as above )
2.
The special gift tax lien imposed attaches to all gifts made during the calendar year for the amount of the gift tax imposed upon the gifts made during such year. If the gift tax is not paid by the donor when due, the donee of any gift becomes personally liable for the tax to the extent of the value of the gift. The gift tax lien extends for a period of ten years from the time the gifts were made or until or the tax is paid, whichever date is sooner.
Should you have any questions about any of these issues, call the Fresh Start Tax professionals at 1.866.700.1040
