by steve | Sep 10, 2011 | IRS Tax Advice, Tax News
New regulations provide that a evidence of a postmark is not sufficient to prove delivery. ( T.D. 9543, 76 Fed. Reg. 52561 (8/23/11), amending Regs. §301.7502-1, by revising paragraphs (b)(2) and (e) and adding paragraphs (c)(3) and (g)(4)).
If a tax return preparer files returns, the preparer should either hand-deliver them to the IRS, use certified mail, or use an alternative described below.
When a preparer sends returns to clients, the preparer must consider not only recommending that the clients send the returns via certified mail but also:
• warn the clients that the failure to use certified mail might invalidate the returns, and
• encourage the clients to contact the preparer for alternative methods if certified mail does not work for the clients.
Private delivery services, such as UPS or FedEx, can also be used, but you should first confirm by looking at Notice 2004-83 , 2004-52 I.R.B. 1030 or any relevant guidance issued after that.
The IRS stated that it will be issuing more guidance on private delivery services.
This article was written by Ron Marini ,Miami , a friend of Fresh Start Tax LLC, thanks Ron!
by steve | Sep 9, 2011 | IRS Tax Advice, Uncategorized
As a former IRS Agent and former Instructor at the Regional Training Facility know that IRS Agents are trained to find blunders and misstated truths on the financial statements turned over to remedy all IRS collection cases.
These financial statements are the 433A used primarily by Revenue Officers out in the field at the local IRS office and the 433F used exclusively by the ASC Unit at the different IRS call centers.
The IRS Agent is first trained to look for inconsistencies on the financial statement itself. The first question the Agent asks, does this financial statement make sense. Does the income and expenses tie in to the tax return and bank statements. This is usually the first check completed by the reviewing Agent. If the tax return and bank deposits do not tie in, the Agent will want to rectify that situation immediately.
In may cases the IRS Agent finds there are to many expenses and not enough income, thus the possibility or looking for unreported income and the possibility of a referral to audit.
IRS is not concerned about any debt except that allowed by the National Standard Expenses. IRS could care less about other expenses you may have. If you are paying credit cards, tithing, loans to third parties or college tuition, IRS will generally never allow payments if it is not allowed by and on the National Standard. You must become very familiar with the IRS National Standards before turning your financial statement over to the IRS.
So basically, IRS is mostly interested in income and assets. There eyes are fixed on what they can have out of those available assets.
IRS will everything in their power to take whatever they can out of income and assets so extreme caution should be used when turning over financial statements to the IRS. I would never recommend any one turn over a financial statement to the IRS without a trained tax professional giving the thumbs up.
Also keep one last thing in mind, IRS will and can review all bank checks for the last 6 months to make sure your financial statement ties in directly to the bank statements.
Also be aware that the IRS will pull up credit reports to find out what month payments you may be making on credit cards. IRS will on some occasions use Google and Accuriant Search Engines to find out other sources of income and assets.
It is always my advice, to hire a tax professional to deal with the IRS. Also highly recommended use former IRS Collection Agents trained in the art of tax resolution.
by steve | Sep 7, 2011 | IRS Tax Advice
Having worked for Internal Revenue Service for 10 years and having been a Former IRS Instructor with the Internal Revenue Service there are a couple of acid tests a Revenue Officer / Agents will look at when working a taxpayer case in their inventory.
I should go as far to also tell you that when I was in my teaching mode at the IRS this was the first bit of instruction I would give the newbie Revenue Officers.
” Assume the taxpayers are lying. “ While this is a bit of an over statement on my part you should know that as a IRS Agent taxpayers on a regular basis never tell you the whole truth. While some taxpayers are as honest as the day is long, most are deceiving and you must dig for the truth.
Therefore going into each case these 3 acid tests are the fastest and quickest way to spot the liars and deceivers.
Three main tips:
1. Make sure the bank statements, the tax return, the taxpayers cost of living, and the financial statement all have of common thread of income. While there are many exceptions to this because of changing circumstances i.e. loss of jobs or life events, generally, the money you deposit in your bank needs to tie in to your current wages and your income information on your tax return. If this does not match up you can bet your last dollar IRS will dig into to this issue and find out if there may be hidden income. Also your cost of living should be in line with your wages. Exceptions exist such as you are borrowing money or living on savings.
2. IRS will pull credit reports to verify monthly payments you are making on other debt or assets. Many people who hide or deceive will by money order or cashiers checks. A smart IRS Agent will pull credit reports and verify your IRS financial statement with items found on your credit report.
3. IRS will check through credit reports for loan applications submitted to banks, car dealership or other financial institutions to verify income and assets. IRS will compare the financial statement you gave the financial institution to the financial statement you are giving IRS. It should match up, however it is rarely the case.
While this is not a comprehensive list, know this, IRS knows where to look for lies and deception and they will find it.
Always turn in a truthful financial statement to the IRS.
Anytime you deal with the IRS, it is always wise to seek professional counsel.
by steve | Sep 7, 2011 | IRS Tax Advice, Tax Settlements
Fresh Start Tax LLC Since 1982 IRS Tax Experts A Professional Tax Firm “A” Rated by the Better Business Bureau
On staff, former IRS Agents, Managers and Instructors who were IRS Offer in Compromise Instructors at the Internal Revenue Service Regional Training Center in Atlanta Georgia.
We taught Tax Law and know all their IRS Programs, settlement procedure and tax policies IRS Tax Debt Settlements.
We have over 205 years of professional tax experience and over 60 years of direct experience a the IRS in the local, district and regional offices of the IRS.
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 FM Monthly Radio Show-Business Weekly
How we Settle and Negotiate your case with the Internal Revenue Service:
1. We immediately send a power of attorney to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS.
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.
IRS Tax 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. IRS Offer in Compromise. There are three types of OIC
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 / Exceptional Circumstances – 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 for more details about Fresh Start Tax L.L.C. Thank You
by steve | Sep 7, 2011 | IRS Tax Advice, Tax Levy and Wage Garnishments
I am a former IRS Agent, a Revenue Officer. I also taught Tax Law at the IRS Regional Training Center. I am still an IRS Insider. I still have solid insider sources.
When a taxpayer is faced with the filing of a IRS tax levy whether it be a bank levy or wage garnishment immediate panic sets in and generally taxpayers hurry to take care of the problem as fast as they can. If they do not have a CPA or Tax Attorney, the taxpayer starts hitting the Internet to find out who is the most credible, who they can afford and who can resolve the tax situation the fastest.
You can get immediate tax relief from Bank Levies or Wage Garnishments. You have to call the right Professional Tax Firms.
Here are some very general rules to follow:
1. IRS does not want to levy! They must send out the tax levy because prior notices sent to the taxpayer went unnoticed or were not responded too. Sadly many were sent to the wrong addresses.
2. IRS sends out the wage garnishments and or bank levies to get your attention so they can close their case and tax you off of the IRS receivable computer. This also takes you off the IRS enforcement computer called CADE.
3. As soon as you have filed all your tax returns and given IRS your current financial statement, IRS will close their case and send out your levy releases. A 433F documented will be required to satisfy the IRS.
4. Not only will IRS send out your levy release they will also settle your tax case as well.
5. You should hire a true professional tax firm to handle your situation, it will make a HUGE difference. You will get the results you need from a professional tax firm.
6. In picking out a company for tax representation hire a true professional tax firm one with certified credentials.
7. Beware of tax mills who promise you pennies on a dollar. Only 12,000 settlements take place all year. Most companies promise you the sky actually knowing the case will never be settled.
8. Ask to speak directly to a Tax Attorney, CPA, Former IRS Agent, or Enrolled Agent that is on staff. If you cannot speak directly to this type of tax professional RUN
9. Beware, most of the people you talk to off the Internet are sales people selling your lead information to the highest bidder.
10. Check BBB ratings to ensure the trustworthiness of the firm you are dealing with.
by steve | Sep 6, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax LLC Since 1982 IRS Tax Experts A Professional Tax Firm “A” Rated by the Better Business Bureau
Call us today and hear all the different tax options for you to close or settle your debt with the IRS.
We know all the different options because we taught Tax Law at the IRS in the Atlanta Regional Training Center at the IRS.
Not only were we former IRS Agents, Managers and Instructors but we also taught the Tax Debt Settlement Program called the Offer in Compromise.
As a result, we know all the tax settlement formulas and policies regarding all the programs for tax debt settlements.
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Certified by the Internal Revenue Service
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 FM Monthly Radio Show-Business Weekly
How we Settle and Negotiate your case with the Internal Revenue Service:
1. We immediately send a power of attorney to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS.
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.
IRS Tax 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. IRS 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 / Exceptional Circumstances – 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 for more details about Fresh Start Tax L.L.C. Thank You
