by steve | Sep 21, 2011 | IRS Tax Advice
Fresh Start Tax LLC A Professional Tax Firm Since 1982
We keep our clients informed on any recent IRS tax decisions that may have an impact or tax consequence.
From the IRS News Wire Tax Service to tax professionals.
IRS Issues Guidance on Tax Treatment of Cell Phones; Provides Small Business Record keeping Relief
IR-2011-93, Sept. 14, 2011
The Internal Revenue Service today issued guidance designed to clarify the tax treatment of employer-provided cell phones.
The guidance relates to a provision in the Small Business Jobs Act of 2010, enacted last fall, that removed cell phones from the definition of listed property, a category under tax law that normally requires additional record keeping by taxpayers.
The Notice issued today provides guidance on the treatment of employer- provided cell phones as an excludable fringe benefit. The Notice provides that when an employer provides an employee with a cell phone primarily for non compensatory business reasons, the business and personal use of the cell phone is generally nontaxable to the employee. The IRS will not require record keeping of business use in order to receive this tax-free treatment.
Simultaneously with the Notice, the IRS announced in a memo to its examiners a similar administrative approach that applies with respect to arrangements common to small businesses that provide cash allowances and reimbursements for work-related use of personally-owned cell phones. Under this approach, employers that require employees, primarily for non compensatory business reasons, to use their personal cell phones for business purposes may treat reimbursements of the employees’ expenses for reasonable cell phone coverage as nontaxable. This treatment does not apply to reimbursements of unusual or excessive expenses or to reimbursements made as a substitute for a portion of the employee’s regular wages.
Under the guidance issued today, where employers provide cell phones to their employees or where employers reimburse employees for business use of their personal cell phones, tax-free treatment is available without burdensome recordkeeping requirements. The guidance does not apply to the provision of cell phones or reimbursement for cell-phone use that is not primarily business related, as such arrangements are generally taxable.
by steve | Sep 21, 2011 | IRS Tax Advice
As a general rule one form does usually generate so much traffic to your website but the Tax Form 2645c is the exception to that rule. I was really shocked by the amount of inquiries we get via that one form.
As a result I thought it would be necessary to put it out there to ease the minds of taxpayers receiving this one innocent tax form.
Any time you see a IRS letter in the mail a sort of panic hits the heart and a default of fear comes over the body. Most people know that a check is not inside the envelope because it cannot be seen through the outside window.
Taxpayers hate to open the letter. Taxpayers normally think, oh no, Tax Audit maybe?
However, the IRS Tax Form 2645C is absolutely harmless and the IRS sends out hundreds of thousands of these letters each year.
This is a notice or letter from IRS telling the taxpayer that they have received the correspondence from the taxpayer. Many times the IRS because of their incredibly heavy workload has not had time to work the case and this letter serves to let the taxpayer simply know that their case is stilling being worked by the IRS. As of late with necessary budget cuts the time IRS usually closes cases has now doubled. Cases of being worked at a turtle pace.
So, if you have received this letter or notice, do not panic, IRS just has to much work.
by steve | Sep 19, 2011 | IRS Tax Advice, Tax Help
IRS continues to pound hard on International Tax Evasion.
This is a great stream of revenue for them.
I do not ever think IRS will lighten up and this issue, IRS will only become more aggressive.
Latest Newswire Source:
IRS Shows Continued Progress on International Tax Evasion
The Internal Revenue Service continues to make strong progress in combating international tax evasion, with new details announced today showing the recently completed offshore program pushed the total number of voluntary disclosures up to 30,000 since 2009. In all, 12,000 new applications came in from the 2011 offshore program that closed last week.
The IRS also announced today it has collected $2.2 billion so far from people who participated in the 2009 program, reflecting closures of about 80 percent of the cases from the initial offshore program. On top of that, the IRS has collected an additional $500 million in taxes and interest as down payments for the 2011 program — a figure that will increase because it doesn’t yet include penalties.
“By any measure, we are in the middle of an unprecedented period for our global international tax enforcement efforts,” said IRS Commissioner Doug Shulman. “We have pierced international bank secrecy laws, and we are making a serious dent in offshore tax evasion.”
Global tax enforcement is a top priority at the IRS, and Shulman noted progress on multiple fronts, including ground-breaking international tax agreements and increased cooperation with other governments. In addition, the IRS and Justice Department have increased efforts involving criminal investigation of international tax evasion.
The combination of efforts helped support the 2011 Offshore Voluntary Disclosure Initiative (OVDI), which ended on Sept. 9. The 2011 effort followed the strong response to the 2009 Offshore Voluntary Disclosure Program (OVDP) that ended on Oct. 15, 2009. The programs gave U.S.taxpayers with undisclosed assets or income offshore a second chance to get compliant with the U.S. tax system, pay their fair share and avoid potential criminal charges.
The 2009 program led to about 15,000 voluntary disclosures and another 3,000 applicants who came in after the deadline, but were allowed to participate in the 2011 initiative. Beyond that, the 2011 program has generated an additional 12,000 voluntary disclosures, with some additional applications still being counted. All together from these efforts, taxpayers came forward and made 30,000 voluntary disclosures.
“My goal all along was to get people back into the U.S. tax system,” Shulman said. “Not only are we bringing people back into the U.S. tax system, we are bringing revenue into the U.S. Treasury and turning the tide against offshore tax evasion.”
In new figures announced today from the 2009 offshore program, the IRS has $2.2 billion in hand from taxes, interest and penalties representing about 80 percent of the 2009 cases that have closed. These cases come from every corner of the world, with bank accounts covering 140 countries.
The IRS is starting to work through the 2011 applications. The $500 million in payments so far from the 2011 program brings the total collected through the offshore programs to $2.7 billion.
“This dollar figure will grow in the months ahead,” Shulman said. “But just as importantly, we have changed the risk calculus. Americans now understand that if they try to hide assets overseas, the chances of being caught continue to increase.”
The financial impact can be seen in a variety of other areas beyond the 2009 and 2011 programs.
Criminal prosecutions. People hiding assets offshore have received jail sentences running for months or years, and they have been ordered to pay hundreds of thousands and even millions of dollars.
UBS.
UBS AG, Switzerland’s largest bank, agreed in 2009 to pay $780 million in fines, penalties, interest and restitution as part of a deferred prosecution agreement with the U.S. government.
The two disclosure programs provided the IRS with a wealth of information on various banks and advisors assisting people with offshore tax evasion, and the IRS will use this information to continue its international enforcement efforts.
by steve | Sep 14, 2011 | IRS Tax Advice, Tax News
Do you need to change your address for the Internal Revenue Service?
This is how it should take place:
If you move, you need to notify the IRS of your new address. We can change our records so that any tax refunds due to you or any other IRS communications will reach you in a timely manner.
If you filed a joint return, you should provide the same information and signatures for both spouses.
If you filed a joint return and you and/or your spouse have since established separate residences, you both should notify the IRS of your new addresses.
There are several ways to notify the IRS of an address change.
1. Mail a signed written statement to an appropriate Service address informing the Service that you wish that the address of record changed to a new address. In addition to the new address, this notification must contain the taxpayer’s full name and old address as well as the taxpayer’s social security number, individual taxpayer identification number, or employer identification number.
2.Submit Form 8822, Change of Address, to request an address change.
3.Provide an oral notification in person or directly via telephone to a Service employee who has access to the Service Master File informing the Service employee of the address change. In addition to the new address, you must provide the taxpayer’s full name and old address as well as the taxpayer’s social security number, individual
by steve | Sep 13, 2011 | IRS Tax Advice, Tax News
With the still struggling economy, more Americans fell below the poverty level last year. Sad but true.
The nation’s poverty rate rose to 15.1 percent in 2010, its highest level since 1993.
About 46.2 million people are considered in need.
As for middle-class American families, income fell in 2010.
The median household income was $49,445, down slightly from $49,777 the year before.
Median income has changed very little compared to rising consumer prices over the last 30 years.
Adjusted for inflation, the middle-income family only earns 11 percent more than they did in 1980, while consumer prices have risen roughly 155 percent.
The figures weren’t very surprising, given the unemployment rate remained above 9 percent in 2010 and the number of Americans who have been unemployed for six months or more surged to an all-time high during the year.
Amid a still struggling economy, more Americans fell below the poverty line last year, according to new census data released Tuesday.
The government defines the poverty line as income of $22,314 a year for a family of four and $11,139 for an individual. CNN report.
by Fresh Start Tax | Sep 12, 2011 | IRS Tax Advice, Uncategorized
OWE IRS BACK PAYROLL TAXES? GREAT TAX TIPS FROM A FORMER IRS AGENT AND INSIDER
If you owe back payroll taxes to the Internal Revenue Service it only makes sense to speak to former IRS agents and managers who know the system and can get you immediate and permanent only relief for back IRS payroll taxes.
Contact us today and speak directly to tax attorneys, CPAs and former IRS agents, managers and instructors.
We have taught tax law at the Internal Revenue Service. We are tax experts in owing and settling back payroll taxes.
I am a Former IRS Agent, Revenue Officer who has over 38 years of professional tax experience and also I have been a former IRS Instructor in the Regional Training Facility.
We are often called by taxpayers in panic to tell us that the IRS is after their company for back payroll ( 941 ) taxes. IRS is wanting to seize everything including the cats and the dogs. There are several good tips to keep in mind when IRS comes knocking.
Being a former IRS Agent and Instructor know that IRS will usually come on very strong at the beginning of their contact with the taxpayer.
Tax Tips for IRS Payroll Taxes and Issues:
1. Since the IRS usually comes on very strong at the being of their contact with the taxpayer, let them vent their anger and accept it. They want to know you understand the problem and that you want to do something about it. Sporting an attitude will get you nowhere.
Often when I worked these cases as a former IRS agent, I always wanted to see the attitude of the taxpayer. If the taxpayers was apologetic I felt I could move forward in working with them.
2. Remember, your attitude is critical. Also you want to show a willingness to correct the situation.
3. Get current with your tax deposits as soon as you can. IRS looks to see if you are current with your current monthly tax deposits requirements. If possible make a current tax deposit to let IRS see that you are willing to solve the problems.
If you cannot keep current how can you possibly move forward. If you stay current IRS will usually work with you.
4. Get prepared to give the IRS a current financial statement.( 433B ). IRS will look over all your income and assets. Use distrait values on your assets. More about this on other Ezine articles.
5. Be prepared to give IRS a good faith payment to show you want to move forward. This good faith payment goes a long way.
6. Give the information the IRS asks for on a timely basis. Never delay in getting the IRS information. Many times their supervisors grade them on their dependability in case closures and timeliness on follow up action and dates. Keep up with all deadline dates.
7. Be prepared for the IRS to set up a trust fund recovery penalty against all responsible officers. See section 6672.
8. If you have a sizable IRS payroll tax problem, hire a professional tax firm especially one that has Former IRS Agents, Managers and Instructors on staff. They usually know the system and get get you through this with the least amount of problems and usually get the agreement you want.
9. Always know if you do not like the agreement the IRS Agent wants to make, you can ask for an independent reviewer to look over the case file. They can over ride the Agents decision.
The initial IRS Agent will not tell you about this but use that as your ace in the hole.
10. As a last option you can always file a 911 Form asking for assistance from The Taxpayer Advocate Office. They have the power to over turn the Agents decision.
As I said before, for your very best deal and settlement options, hire a true tax professional, they can get results.
Contact us today for tax help and representation regarding IRS back payroll tax matters.
OWE IRS BACK PAYROLL TAXES – GREAT TAX TIPS – FORMER IRS AGENT AND INSIDER – IRS Tax Representation
