by steve | Jul 9, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax LLC A Professional Tax Firm Since 1982 IRS Tax Experts “A” Rated by the Better Business Bureau
We have over 60 years with the Internal Revenue Service! Affordable tax relief.
Have Former IRS Agents, Managers and Instructors immediately resolve and settle your IRS Tax Case.
We can get you immediate relief and stop all IRS enforcement action.
Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment Agreements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices.
Call us for a free tax consult today.
by steve | Jul 9, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax L.L.C. IRS Tax Experts A Professional Tax Firm Since 1982 “A” Rated by the Better Business Bureau
We are former IRS Agents, Managers and Instructors who taught the IRS Tax Debt Settlement Program called the Offer in Compromise.
We have over 60 years with the Internal Revenue Service.
I would not suggest anyone file an offer without having a true tax professional reviewing and preparing the offer because the odds of IRS accepting the offer will be slim. But for those of you who brave, here is the process.
1. How to File an Offer in Compromise
2 . What is an Offer In Compromise?
3. What You Must Know Before You File an Offer in Compromise
Do You Qualify for an Offer in Compromise?
The Form 656-B, Offer in Compromise Booklet (PDF) contains information about filing an offer in compromise, worksheets, and all forms necessary to file an offer in compromise.
When submitting an offer in compromise (OIC), taxpayers must use the most current version of Form 656, Offer in Compromise (PDF), or Form 656-L, Offer in Compromise (Doubt as to Liability) (PDF), depending on the basis of the offer in compromise.
Taxpayers should file Form 656 when there is doubt that the liability could be collected in full through a lump sum or an installment agreement and file Form 656-L when it is believed that the tax liability is incorrect. Taxpayers may not file offers concurrently claiming both that the tax liability is incorrect along with an inability to pay the liability.
In most cases, taxpayers must submit Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B, Collection Information Statement for Businesses. Neither the Form 433-A nor Form 433-B is required when a taxpayer submits an OIC based solely as to doubt as to liability.
How Many Forms 656 and Application Fees are Required?
The general rule when determining how many offers and application fees are necessary is “one fee and form per entity”. The Form 656-B contains an Offer in Compromise Application Fee and Payments matrix to assist you in determining the number of Forms 656 and application fees required. Examples:
A married couple owing the same joint income tax liability may file only one Form 656 listing the joint liability. One fee of $150 should be attached to the Form 656. A married couple opting to file separate offers to compromise the same joint liability may do so, but two $150 application fees will be required.
When a married couple owes a joint liability and one spouse also owes an individual (non-joint) liability, two OICs and two application fees are needed.
A divorced, separated or married couple living apart may still file one From 656 listing their joint liability and pay only one $150 fee as long as all the taxes owed are joint liabilities. Taxpayers in these situations that opt to file separate offers must pay a $150 application fee for each offer that is submitted for consideration.
Note: These examples assume that the taxpayers do not meet one of the exceptions for paying the application fee: the OIC is filed under doubt as to liability or the taxpayer has completed and attached Form 656-A to Form 656. Keys to Success in the Offer in Compromise Program:
Explore all collection options before submitting an offer in compromise
Complete the “Is Your Offer in Compromise Processable?” checklist located in the Form 656-B, Offer in Compromise Booklet. Submit all required documentation Complete all items on Form 656, Offer in Compromise Include all required fees and payments Be current with all filing and paying requirements (estimated taxes and federal tax deposits) and remain current Respond promptly to all requests for additional information Complete all items on Form 433-A or Form 433-B
Where to File Form 656
Residents of: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kentucky, Louisiana, Mississippi, Montana, Nevada, New Mexico, Oregon, Tennessee, Texas, Utah, Washington, Wisconsin or Wyoming:
If you are a wage earner, retiree, or a self-employed individual without employees; then mail Form 656 and all attachments to:
Memphis Internal Revenue Service Center COIC Unit PO Box 30803 AMC Memphis, TN 38130-0804
If you are other than a wage earner, retiree, or self-employed individual without employees; then mail Form 656 and all attachments to:
Memphis Internal Revenue Service Center COIC Unit PO Box 30804, AMC Memphis, TN 38130-0804
Residents of: Arkansas, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, West Virginia, or have a foreign address:
If you are a wage earner, retiree, or a self-employed individual without employees; then mail Form 656 and all attachments to:
Brookhaven Internal Revenue Service Center COIC Unit PO Box 9007 Holtsville, NY 11742-9007
If you are other than a wage earner, retiree, or a self-employed individual without employees; then mail form 656 and all attachments to:
Brookhaven Internal Revenue Service Center COIC Unit PO Box 9008 Holtsville, NY 11742-9008
Where to File Form 656-L (Doubt as to Liability)
Brookhaven Internal Revenue Service COIC Unit PO Box 9008 Holtsville, NY 11742-9008
In addition to accessing the Form 656 and Form 656-L online, you may obtain it by calling the IRS toll free number 1-800-829-3676 or by visiting your local IRS office.
by steve | Jul 8, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax L.L.C. A Professional Tax Firm Since 1982 IRS Tax Experts “A” Rated by the Better Business Bureau
Immediate Releases of the Federal Tax Levy and help with the release of the Federal Tax Liens.
We taught Tax Law at the Internal Revenue Service and know all the tax strategies and formulas to not only get your levy released but we can settle your case.
Our Company Resume: ( Since 1982 )
- Our staff has over 205 years of professional IRS tax representation experience collectively
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Former IRS Managers, Instructors and Trainers
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed to practice in all 50 States
- Certified by the Internal Revenue Service
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published Tax Expert
- As heard on 90.3 FM Monthly Radio Show-Business Weekly
How we immediately get Notices of Wage Levy and Bank Garnishment Levies Released.
As former IRS Agents, Managers and Instructors we have issued thousands of IRS Wage/Garnishment and Bank Levies. We know exactly how to quickly get them released. We have what it takes.
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak to them.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
Settlement agreements can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. Offer in Compromise. There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
by steve | Jul 8, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax LLC IRS Tax Tips form the IRS for Student Summer Jobs
Tax Tips from the IRS for Students Starting a Summer Job
School’s out and many students will be starting summer jobs.
The Internal Revenue Service reminds students that not all the money you earn may make it to your pocket. That’s because your employer must withhold taxes.
Here are six things the IRS wants students to be aware of when they start a summer job.
1. When you first start a new job you must fill out a Form W-4, Employee’s Withholding Allowance Certificate.
This form is used by employers to determine the amount of tax that will be withheld from your paycheck. If you have multiple summer jobs, make sure all your employers are withholding an adequate amount of taxes to cover your total income tax liability. To make sure your withholding is correct, use the Withholding Calculator on www.irs.gov.
2. Whether you are working as a waiter or a camp counselor, you may receive tips as part of your summer income. All tips you receive are taxable income and are therefore subject to federal income tax.
3. Many students do odd jobs over the summer to make extra cash. Earnings you receive from self-employment – including jobs like baby-sitting and lawn mowing – are subject to income tax.
4. If you have net earnings of $400 or more from self-employment, you will also have to pay self-employment tax. This tax pays for your benefits under the Social Security system.
Social Security and Medicare benefits are available to individuals who are self-employed the same as they are to wage earners who have Social Security tax and Medicare tax withheld from their wages. The self-employment tax is figured on Form 1040, Schedule SE.
5. Food and lodging allowances paid to ROTC students participating in advanced training are not taxable. However, active duty pay – such as pay received during summer advanced camp – is taxable.
6. Special rules apply to services you perform as a newspaper carrier or distributor. You are a direct seller and treated as self-employed for federal tax purposes if you meet the following conditions:
You are in the business of delivering newspapers.
All your pay for these services directly relates to sales rather than to the number of hours worked.
You perform the delivery services under a written contract which states that you will not be treated as an employee for federal tax purposes.
by steve | Jul 8, 2011 | IRS Tax Advice, Tax News
We are a full service affordable Tax firm that are IRS Tax Debt Experts.
Since 1982, A plus Rated BBB.
Fresh Start Tax L.L.C. A Professional Tax Firm Since 1982 IRS Tax Experts in Debt Relief “A” Plus Rated by the Better Business Bureau
We taught Tax Law at the IRS in the local, district and regional offices of the Internal Revenue Service.
Hire a true Professional Tax Firm. We are comprised of Board Certified Tax Attorneys, CPAs and former IRS Agents, Managers and Instructors who have worked for the IRS for over 60 years.
We taught Tax Law at the IRS in the local, district and regional IRS offices.
Affordable fees! Free Tax Consults.
Areas of Tax Practice:
- Immediate IRS Tax Representation
- Offers in Compromise/ IRS Tax Debt Settlement
- Immediate Release of Bank Garnishments or Wage Levies
- IRS Bill/Notice of “Intent to Levy” or Final Notices
- IRS Tax Audits Small and Large Dollar
- Hardships Cases / Unable to Pay
- Payment Plans, Installment Agreements
- Innocent Spouse Relief
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll/ Trust Fund Penalty Cases
Our Company Resume: ( Since 1982 )
- Our staff has over 205 years of professional IRS tax representation experience collectively
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Former IRS Managers, Instructors and Trainers
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed to practice in all 50 States
- Certified by the Internal Revenue Service
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published Tax Expert
- As heard on 90.3 FM Monthly Radio Show-Business Weekly
Do your homework before hiring a Professional Tax Firm. Make sure they have on staff Board Certified Tax Attorneys, Lawyers, CPAs, Former IRS Agents and Managers. Also, check the following to ensure the creditability and history of the Tax Firm.
1. Better Business Bureau – www.bbb.org/us/Find-Business-Reviews
2. Complaints.com – www.complaintsboard.com
3. Rip Off Report – http://www.ripoffreport.com/
by steve | Jul 8, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax L..L.C . A Professional Tax Firm Since 1982 IRS Tax Experts “A” Rated by the Better Business Bureau
We are true IRS Tax Debt Settlement Experts. On staff, former IRS Agents, Managers and Instructors that taught the Tax Debt Settlement Program called the Offer in Compromise.
Being former Offer in Compromise Settlement Revenue Officers, we know all the formulas and strategies to settle your case for the lowest possible dollar amount given by law.
Call us for a free professional consult and speak to a Tax Attorney, CPA of former IRS Agent.
Our Company Resume: ( Since 1982 )
- Our staff has over 205 years of professional IRS tax representation experience collectively
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Former IRS Managers, Instructors and Trainers
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed to practice in all 50 States
- Certified by the Internal Revenue Service
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published Tax Expert
- As heard on 90.3 FM Monthly Radio Show-Business Weekly
How we Settle and Negotiate your case with the Internal Revenue Service to get you the best possible settlement offer:
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak to them.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-A (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
Settlement agreements can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. Offer in Compromise. There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
See our home page.
