IRS Tax Levy- Here is the Scoop-Get releases-Former IRS Agents

by steve | Jun 8, 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 can get immediate releases of Federal Tax Levies!

We are former IRS Agents with a National Tax Practice.

What Is an IRS Tax Levy?

A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.

If you do not pay your taxes (or make arrangements to settle your debt), the Internal Revenue Service (IRS) may seize and sell any type of real or personal property that you own or have an interest in. For instance, the IRS can seize and sell property that you hold (such as your car, boat, or house). IRS can also levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).

The IRS usually levies only after these three requirements are met:

1. The IRS assessed the tax and sent you a Notice and Demand for Payment
2. You neglected or refused to pay the tax
3. The IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.

The final notice may be given in person, left at your home or usual place of business, or sent to your last known address by certified or registered mail, return receipt requested.

You may ask an IRS manager to review your case, or you may request a Collection Due Process hearing with the Office of Appeals by filing a request for a Collection Due Process hearing with the IRS office listed on your notice. You must file your request within 30 days of the date on your notice.

If the IRS levies your wages, salary, or federal payments, the levy will end when:

You pay your tax debt in full (please see Full Pay Service)
The time expires for legally collecting the tax
The levy is released

The IRS will release a levy on income if the taxpayer resolves their back tax liability through an Installment Agreement, Currently Not Collectible status, or an Offer in Compromise.

If the IRS levies your bank account, your bank must hold funds you have on deposit, up to the amount you owe, for 21 days. This holding period allows time to resolve any issues about account ownership. After 21 days, the bank must send the money plus interest, if it applies, to the IRS.

The IRS typically will not release a levy upon a bank account once it has been issued. However, the IRS may partially release the levy if the funds in the account are needed for a specific and necessary living expense. Examples include medical expenses, housing expenses, and transportation

Call us for a free consultation!

Miami, Ft.Lauderdale – IRS Taxes – Local IRS Tax Experts – Former IRS Agents, Managers and Instructors – Since 1982

by steve | Jun 8, 2011 | IRS Tax Advice, Tax News

Fresh Start Tax L.L.C.       A Local South Florida Professional Tax Firm       Since 1982       IRS Tax Experts      “A” Rated by the Better Business Bureau

Hire Former IRS Agents who worked in the local South Florida IRS office in Miami and Ft.Lauderdale.

We have over 60 years of working experience in the local, district and regional offices of the IRS.

We taught Tax Law at the IRS Regional Training Center in Atlanta Georgia. We are the real deal.

We are comprised of Board Certified Tax Attorneys, Lawyers, CPA’s and Former IRS Agents, Managers, and Instructors. We have over 205 years of professional IRS tax representation. We are one of the oldest, most trusted and experienced professional tax firms in South Florida.

Call us today for a no cost professional tax consult and hear the truth about your case.

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 163 years of professional IRS tax representation experience collectively
  
• On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
  
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• Licensed to practice in all 50 States
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OWE IRS = IRS Allowable Living Expenses- IRS Tax Help Relief-Former IRS Agents

by steve | Jun 7, 2011 | IRS Tax Advice, Tax News

Fresh Start Tax LLC      A Professional  Tax Firm      Since 1982       “A” Rated by the Better Business Bureau

If  you need IRS tax help or relief, call us today for immediate tax representation. We have over 205 years of professional tax representation and over 60 years of direct work experience at the IRS.

Allowable living expenses.

IRS has certain allowable living expenses . They very from region to region in the United States. If you go to our website the allowable living expenses for your region are listed. IRS usual does not vary from this list, however a true tax professional can get many more expenses allowed.

Call us today for a free tax consultation.

IRS Collection Financial Standards: Allowable Expenses

What expenses will the IRS allow when determining whether a taxpayer has the ability to pay a delinquent tax debt ? At the most basic level, allowable living expenses include those expenses that meet the necessary expense test. The necessary expense test is defined as expenses that are necessary to provide for a taxpayer and his or her family’s health and welfare and/or the production of income.

In order to ensure taxpayers have adequate means of providing for basic living expenses, the IRS has developed national and local expense standards. A national standard is one that is the same for everyone regardless of where he or she lives. A local standard will vary with location due to regional cost differences.

Some standard expense amounts are governed by household size. To determine the proper allowable expense amount, you must first determine the household size. Generally, the total number of persons allowed would be the same as those allowed as exemptions on your most recent tax return.

National Standards

Food and Other Items

This category of expenses includes five specific types of expenses. The categories are food, housekeeping supplies, clothing and clothing services, personal care products and services, and miscellaneous items. Each of the individual categories has their own standard defined.

Out of Pocket Medical

Out of pocket medical expenses include prescriptions, medical and dental co-pays, and medical or dental bills. The standard for out-of-pocket medical expenses varies depending on age. The standard for each household member under the age of 65 is $60.00 per month. The standard increases to $144.00 for each household member 65 or older. Although this expense has established guideline amounts, the IRS tends to be more flexible in allowing amounts that exceed the standard upon providing proof of the additional expenses.

Vehicle Ownership

The IRS will allow up to $489 for a vehicle loan or lease payment. Unlike food and other items, and out of pocket medical expenses, the full $489 is not automatically granted. If the actual vehicle loan or lease payment is less than $489, then only the lesser amount is allowed. The IRS can also deny the payment if the taxpayer cannot prove that he or she needs the vehicle for the health or welfare of the family and/or the production of income.

Public Transportation

Public transportation is allowed at the rate of $173 per month. Taxpayers that do not own a vehicle do not have the costs associated with operating a vehicle; therefore, the IRS will not allow a vehicle operating expense. The IRS does recognize that taxpayers without a vehicle must still get to work, the grocery store, the doctor’s office, etc. Therefore, the public transportation allowance is granted to acknowledge this expense.

In some cases, taxpayers with a vehicle may also be entitled to the public transportation expense. For example, a taxpayer with impaired vision may be able to drive during the day, but is prohibited from driving in low light. Thus, the taxpayer relies on public transportation when driving conditions are not ideal. In this situation, the IRS will generally allow the public transportation in addition to the vehicle ownership expense upon documenting the reasons why public transportation is used and that it is actually being used.

Local Standards

Housing and Utilities

Housing and utilities include mortgage or rent, property taxes, homeowners or renters insurance, electricity, heat, water, sewer, garbage, phone, etc. Housing and utilities is an expense category that many households exceed. While the IRS may allow expenses over the standard, the circumstances in which the IRS will do so are extremely limited. Often taxpayers must make adjustments to successfully resolve a tax debt.

Vehicle Operating

The transportation operating expense category covers all costs of operating a vehicle such as fuel, insurance, maintenance, repairs, and registration. Taxpayers filing an Offer in Compromise may be entitled to an additional operating expense. In June of 2004, the IRS issued a directive, which projected an additional cost of $200 per month for vehicles over six (6) years old with an odometer reading of 75,000 miles or more.

Other Expenses

Other expenses are those expenses that meet the necessary expense test and are therefore allowed expenses. Other expenses commonly include health insurance, court ordered payments, dependent care, term life insurance, union dues, and mandatory retirement. Other expenses generally require documentation before the IRS will agree to allow them as an expense.

Conditional Expenses

Conditional expenses do not meet the necessary expense test. Generally, the IRS will not allow a conditional expense. Common expenses considered to be conditional expenses are credit card payments, tuition, and charitable contributions. However, they are allowable if the total back tax liability, including projected accruals, can be fully paid within five years.

Prorating expenses

Prorating of allowed expenses is beyond the scope of this article, however it is worth mentioning briefly. A peroration analysis may be required when there is a non-liable party living in the same household and the payment of expenses are shared with a liable taxpayer. When this is the case, the IRS will generally look to both the liable party’s and the non-liable party’s income for the purpose of determining the liable party’s share of household expenses.