by Fresh Start Tax | Nov 5, 2012 | Back Taxes, IRS Notice or Letter, IRS Tax Debt, IRS Tax Problem, Tax Help, Tax Settlements
Mr. Sullivan is a tax resolution expert. He is a Former IRS Agent and a Teaching Instructor with the Internal Revenue Service.
His firm Fresh Start Tax LLC 1-866-700-1040 is comprised of Board Certified Tax Attorneys, CPA’s and other Former IRS Agents, Managers and Instructors.
If you want to make sure you qualify for the Current non Collectable Program ( Economic Hardship, CNC ) if you cannot pay the IRS, it is best to check with a true tax professional. This can completely change your life. It will certainly help you for a season in time.
Economic Hardship- Cannot Pay the IRS Back Taxes
As a Former IRS agent I can tell you there is a program within the IRS-IRM that allows taxpayers who cannot pay there tax bills at the present time, the program is called Economic Hardship. It is obvious why the IRS does not publicize the program, everyone in the world would want there case placed in this file.
To qualify for the Program the taxpayer will have to produce a IRS financial statement. You can find those forms on our home page website under IRS Forms.
Depending where your case is in the IRS computer system you will have to provide a Form 433A ( used by local offices and Revenue Officers ) or the 433F which is used by the ASC Units while the taxpayer is still in letter or notice status.
The Financial Statement must be completely filled in and have all relative documents attached to provide support to the fact you cannot pay the bill on back taxes you owe.
It should be noted that these cases are also call Current Non Collectable or CNC as it is known in the business.
This is not a forever thing. It is also critical to know that these cases go in to this status for a season in time. IRS reviews these cases from time to time.
When the IRS determines to put your case in Hardship Status, few persons know how and why these cases come back out to the field or back into the IRS collection system. Having been a former IRS Agent, I had placed hundreds of cases in the currently non collectible status.
These IRS tax cases Hardship, current not Collectable ) come back out to the ASC Unit or the IRS field office because of only three reasons:
1. The closing Revenue Officer working the case places a mandatory follow-up date on the file. Each Revenue Officer is different. They get a feel for the case based on the financial statement and the asset check that was made during the course of the investigation. Sometimes it is a hunch, other times you get a feel that income may increase at a given time. This mandatory follow-up date is strictly up to the reviewing Revenue Officer.
The manager has the last say on the closing code however most of the time it is left up to the discretion of the RO.
2. A certain closing code is placed on the back taxes case. If the Revenue Officer does not mandate a certain follow-up date, a closing code based on AGI is put on the case. For example, let’s say the closing code is 50.
This means is when the taxpayer reaches $50,000 in a AGI (adjusted gross income), the case will trigger back to the field. Once again, each Revenue Officer makes their own decision.
3. The statute is about to expire. Certain cases will trigger because the ten year statute of limitation on these back taxes is about to expire. These back tax cases usually come out 1 year before the 10 year statute. These are usually large dollar cases.Small cases usually do not get much attention.
The only other way a case may come back to the field is because a Congressional inquiry was made.
The IRS Definition of Economic Hardship
A IRS Economic Hardship ( Cannot Pay the IRS ) occurs when a taxpayer is unable to pay reasonable basic living expenses.
The determination of a reasonable amount for basic living expenses will be made by the IRS Commissioner and will vary according to the unique circumstances of the individual taxpayer. Unique circumstances, however, do not include the maintenance of an affluent or luxurious standard of living.
IRS has a National and Regional Tests
IRS will review your 433A or 433F and compare it to the National or Regional Standards. You must fall within the guideline of the established guideline by your case will be considered for Cannot Pay or an Economic Hardship.
What are the National Standards.
National Standards: Food, Clothing and Other Items
National Standards have been established for five necessary expenses:
1.food,
2. housekeeping supplies,
3.apparel and services,
4. personal care products and services,
5.and miscellaneous.
The National Standard for Food, Clothing and Other Items includes an amount for miscellaneous expenses. This miscellaneous allowance is for expenses taxpayers may incur that are not included in any other allowable living expense items, or for any portion of expenses that exceed the Collection Financial Standards and are not allowed under a deviation.
The standards are derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey (CES).
The survey collects information from the Nation’s households and families on their buying habits (expenditures), income and household characteristics.
IRS also has standards for Housing and Utilities Expenses and also for vehicle and operating costs. See our homepage toolbar, IRS forms.
What the IRS has done to help taxpayers with current Hardships
a. Added Flexibility for Missed Payments.
The IRS is allowing more flexibility for individuals with existing Installment Agreements who have difficulty making payments because of a job loss or other financial hardship. Depending on the situation, the IRS may allow a skipped payment or a reduced monthly payment amount. Taxpayers in this situation should contact the IRS.
b. Additional Review for Offers in Compromise on Home Values.
An Offer in Compromise (OIC), an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than full amount owed, may be a viable option for taxpayers experiencing economic difficulties.
However, the equity taxpayers have in real property can be a barrier to an OIC being accepted. With the uncertainty in the housing market, the IRS recognizes that the real-estate valuations used to assess ability to pay are not necessarily accurate. So in instances where the accuracy of local real-estate valuations is in question or other unusual hardships exist, the IRS is creating a new, second review of the information to determine if accepting an offer is appropriate.
c. Prevention of Offer in Compromise Defaults.
Taxpayers who are unable to meet the periodic payment terms of an accepted OIC will be able to contact the IRS office handling the offer for available options to help them avoid default.
d. Postponement of Collection Actions.
IRS employees will have greater authority to suspend collection actions in hardship cases where taxpayers are unable to pay. If an individual has recently encountered a job loss or other financial problem, IRS assistors may be able to suspend collection in some situations without documentation to minimize burden on the taxpayer.
e. Expedited Levy Releases.
The IRS will speed the delivery of levy releases by easing requirements on taxpayers who request expedited levy releases for hardship reasons. Taxpayers seeking expedited releases of levies to an employer or bank should contact the IRS number shown on the notice of levy to discuss available options. When calling, taxpayers requesting a levy release due to hardship should be prepared to provide the IRS with the fax number of the bank or employer processing the levy.
Call us today to see if qualify for the Hardship Program, 1-866-700-1040
Cannot Pay the IRS Back Taxes – You can Ask for a Economic Hardship – Former IRS Teaching Instructor
by Fresh Start Tax | Oct 27, 2012 | IRS Notice or Letter, IRS Tax Advice, IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Tax Help
IRS Tax Resolution Expert – Michael D. Sullivan – Former IRS Agent – Fresh Start Tax LLC, Since 1982, A plus Rated BBB
There are may excellent tax resolution specialists in the market today. Many are excellent in there craft, knowledge and experience.
One of the advantages of Fresh Start Tax LLC is the wide range of IRS tax experts and specialists on staff. We are a true IRS tax resolution firm and that is all we do.
From Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents, managers and instructors we have over 206 years of professional tax experience and over 60 years of working directly for the IRS in the local, district and regional offices.
Mr. Sullivan pictured above is a Former IRS agent and teaching instructor.
We also taught Tax Law at the IRS.
We offer free tax consultation 1-866-700-1040 or call us at 1-866-700-1040.
We are friendly and affordable.
With our A plus rating by the BBB, we are without complaint with impeccable credentials.
Areas of Professional Tax Practice:
- Same Day IRS or State Tax Representation
- Offers in Compromise or IRS Tax Debt Relief Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Levy Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS or State Tax Audits
- IRS Hardships Cases / Unable to Pay
- Payment Plans, Installment Agreements, Structured payment agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases, all States
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns, Past due
- Tax Return Reconstruction if Tax Records are lost or destroyed
- FBAR and Expat Specialists
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 plus”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States, Federal and State Issues
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com & WAYI FM – Monthly Radio Show-Business Weekly
by Fresh Start Tax | Oct 16, 2012 | IRS Notice or Letter, Representation, Tax Levy and Wage Garnishments
Tax Levies, Tax Garnishment & Tax Liens – Get Removed or Released by calling Former IRS agents – Fresh Start Tax LLC
We are a local Tax Firm located in Upper Montclair.
We are comprised of Tax Attorneys, CPA’s and Former IRS agents who have over 60 years of experience working directly with the IRS.
Why use Fresh Start Tax LLC
Being Former IRS Agents, Managers and Instructors we know exactly what the IRS formulas and settlement techniques are in settling their cases. We know the exact way IRS will close your case based on your unique situation.
The IRS files 3.8 million levies each year and 980,000 Federal Tax Liens.
If you have any type of IRS tax problem including tax levies, tax garnishments or tax liens it only makes sense to call former IRS Agents, Managers and Instructors.
We can get IRS tax levies and tax garnishment released within the week you call as a general rule. Once Fresh Start Tax has a detailed financial statement we can not only get your tax levy or tax garnishment released or removed, we can also settle your case.
Most of these enforcement actions occur because taxpayers failed to follow up on IRS notices and letters giving the IRS no choice but to follow up with enforced collections.
Once we are retained by a client and secure a documented financial statement, that very day we can get a levy released.
Call us today to find out more 1-866-700-1040.
The following is a detailed outline of the IRS collection process.
If you do not pay in full when you file your tax return, you will receive written notice from the IRS of the amount you owe, a tax bill from the IRS.
This bill or tax notice starts the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax. Notices or letters are sent out in 5 weeks cycles.
First Notice.
The first notice you receive will be a letter that explains the balance due and demands payment in full. It will include the amount of the tax, plus any penalties and interest added to your unpaid balance from the date the tax was due.
You may pay the amount due by sending the IRS a check or money order, payable to the United States Treasury, with a copy of the notice. Over 25 million taxpayers cannot pay that notice.
If you cannot pay in full, you should send in as much as you can with the notice.The unpaid balance is subject to interest that will compound daily and a monthly late payment penalty.
It is always in your best interest to pay your tax liability in full as soon as you can to minimize additional charges.
You also may want to investigate and consider other methods of financing full payment of your taxes, for example by obtaining a cash advance on your credit card or a bank loan because the interest rate and any applicable fees your credit card company or bank charges may be lower than the combination of interest and penalties imposed by the Internal Revenue Code.
Many persons have no way to finance the IRS debt so the IRS has a program to deal with the back taxes.
Paying off your IRS tax debt by using other financial methods also may keep your tax debt from negatively affecting your credit rating.
If you cannot pay in full.
If you are unable to immediately pay your balance in full, IRS may be able to offer you a monthly installment agreement.
If you cannot full pay under an installment agreement you may propose an Offer in Compromise (OIC). An OIC is an agreement between a taxpayer and the IRS that resolves the taxpayer’s tax liability by payment of an agreed upon reduced amount.
If you are unable to pay anything because of a current financial hardship, IRS may temporarily suspend certain collection action, such as issuing a levy , until your financial condition improves. This action is called putting your case in hardship.
The IRS may, however, file a Notice of Federal Tax Lien while your account is suspended. Remember the interest and late payment penalties will continue to accrue while collection is suspended.
Some of the actions IRS may take to collect taxes include:
a. Filing a Notice of Federal Tax Lien
b. Serving a Notice of Levy, or ( bank levy or wage garnishment levy )
c. Offsetting a refund to which you are entitled
The federal tax lien is the IRS legal claim to your property, including property that you acquire after the lien arises.
The federal tax lien arises automatically when you fail to pay in full the taxes you owe within ten days after we send our first notice of taxes owed and demand for payment.
The government also may file a Notice of Federal Tax Lien in the public records.
The Notice of Federal Tax Lien publicly notifies your creditors that the IRS has a claim against all your property, including property acquired by you after the Notice of Federal Tax Lien is filed.
The filing of a Notice of Federal Tax Lien may appear on your credit report and may harm your credit rating. Once a lien arises, the IRS generally cannot release the lien until the taxes, penalties, interest, and recording fees are paid in full or until the IRS may no longer legally collect the tax.
The IRS will withdraw a Notice of Federal Tax Lien if the Notice was filed while a bankruptcy automatic stay was in effect. The IRS may withdraw a Notice of Federal Tax Lien if the IRS determines that
(1) the Notice was filed too soon or not according to IRS procedures;
(2) you enter into an installment agreement to satisfy the liability unless the installment agreement provides otherwise;
(3) withdrawal will allow you to pay your taxes more quickly; or
(4) withdrawal is in your best interest, as determined by the National Taxpayer Advocate, and the best interest of the government.
The IRS also may use a levy to collect taxes. The IRS may levy assets such as wages, bank accounts, Social Security benefits, and retirement income.
The IRS also may seize any of your property for the purpose of selling the property to satisfy a tax debt including your car, boat, or real estate. In addition, any future federal tax refunds or state income tax refunds that you are owed, may be applied to your federal tax liability.
Call us today for a no cost professional tax consultation. 1-866-700-1040.
by Fresh Start Tax | Aug 22, 2012 | IRS Notice or Letter
If you need IRS Help because of a IRS Notice or a IRS Letter call us today for a free tax consult and get immediate tax relief from Former IRS Agents and Managers.
We have over 60 years of direct working experience with the IRS. We can resolve all IRS issues. Stop the worry.Get tax relief today.
Call 1-866-700-1040. All consultations are free and you have nothing to lose. You will speak directly to a tax professional.
Because you have received a notice from the Internal Revenue Service there is no cause for panic. Most situations with IRS Notices or IRS Letters can resolve themselves simply without worry.
Each year the IRS sends millions and millions of IRS letters and IRS notices to taxpayers and businesses. If you receive one do not panic, call us today.
There are a number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return. Make sure you understand the tax year IRS is asking about.
Each IRS letter and notice offers specific instructions on what you need to do to satisfy the inquiry. Tax relief usually comes after the first call with the IRS.
If you receive a notice about a correction to your tax return, you should review the correspondence and compare it with the information on your return.Make absolutely sure you respond by the due date on the IRS letter or notice.
IF you agree with the IRS Notice or Letter:
a.If you agree with the correction to your account, usually no reply is necessary unless a payment is due.
If you disagree with the IRS Notice of Letter
a. If you do not agree with the correction the IRS made, it is important that you respond as requested. Respond to the IRS in writing to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice.
You should mail the information to the IRS address shown in the lower left corner of the notice. Allow at least 30 to 60 days for a response from the IRS.
Make sure you keep a copy of all correspondence. We suggest sending all info to IRS by certified receipt.
Almost all correspondence from the IRS can be handled without calling or visiting an IRS office.
Call us today should you have further questions. 1-866-700-1040
by Fresh Start Tax | Jun 18, 2012 | IRS Notice or Letter, IRS Tax Debt, IRS Tax Problem, Representation, Tax Help, Tax Lawyer, Tax News
Not All IRS Tax Assessments Are Valid!
Let former IRS Agents and Appeals agent determine whether the IRS has properly assessed your tax liability.
The validity if tax assessments or tax bills.
The IRS may be correct that you owe additional income taxes; but if the assessment was not made according to the Internal Revenue Code, the IRS is not authorized to collect it. The IRS does make mistakes in assessing taxes due to procedural errors on its part. Also, the IRS must make the assessment of the additional tax before the assessment statute has expired.
When the IRS determines that your income tax liability should be increased, the Internal Revenue Code requires that IRS assess the additional tax. The “assessment of tax” is the posting of the additional tax to your tax account for that specific tax year. The Internal Revenue Code provides various procedures for assessing taxes. The most common method for assessment is for the IRS to solicit from the taxpayer a signed Form 870 or Form 4549. After these signed forms have been received by the IRS, the IRS then has the authority to make the assessment of the additional tax against the taxpayer.
Another form that gives the IRS the authority to assess the additional tax is Form 870-AD, when a case is under the jurisdiction of the Appeals Division. The Form 870-AD becomes valid for the purpose to assess tax only after the taxpayer signs and the IRS executes (signs) the form. If the IRS makes the assessment based on Form 870-AD that has not been executed, the assessment is not valid.
The IRS can also make an assessment after the taxpayer signs a decision document and is properly signed by the IRS Area Counsel Attorney when the case is in docketed status before the Tax Court. Also there are specific periods of time that the assessment is prohibited and specific periods of time that the assessment can be made by the IRS. If the decision document is not properly signed by the IRS Area Counsel Attorney or the assessment is made during the period that the assessment is prohibited or after the assessment is allowed, then the assessment is not valid.
The least common method that authorizes the IRS to make an assessment is when the taxpayer signs Form 866 (Agreement as to Final Determination of Tax Liability). If the Form 866 is not executed by the proper IRS official (signed), the assessment is not valid.
It should be noted that if the taxpayer signs Form 906 (Determination Covering Specific Matters), the Form 906 by itself does not authorize the IRS to assess the additional tax attributable to the specific matters of the closing agreement. The IRS is still required to either solicit a signed agreement form such as an 870, 4549 or and 870-AD. Should the taxpayer refuse to sign any of these agreement forms, the IRS must then issue a Notice of Deficiency and should the taxpayer then file a petition to Tax Court, he would be precluded from contesting the issues found in the Form 906 in Tax Court.
When the taxpayer does not agree to a proposed assessment, the IRS issues a Notice of Deficiency (more commonly known as the 90 day letter) which authorizes the IRS to assess the additional tax after the expiration of the 90 day period, if the taxpayer does not petition Tax Court. An important fact to remember is if the IRS does not mail the Notice of Deficiency to the last known address, the assessment based on the defaulted Notice of Deficiency (that means that the taxpayer did not file a petition to Tax Court within the 90 day period) is not valid.
If the assessment is not valid, the IRS is required by law to reverse out the invalid assessment. It is up to you, to raise the issue with the IRS that the assessment is not valid. If the assessment statute has expired, the IRS will no longer be able to assess the additional tax. In the other hand, if the assessment statute is still open, then the IRS can properly assess the additional tax by soliciting an agreement form from the taxpayer or issue a Notice of Deficiency. The correct strategy is to raise the invalid assessment issue only after the assessment statute has expired; thus, the IRS would be precluded from assessing the increase in tax.
Let us at Fresh Start Tax review your case. Our experienced staff of former IRS Examiners and Appeals Officers will evaluate your case and determine whether you should raise the issue that the assessment is invalid and demand that the IRS reverse the invalid assessment.
Many assessments of tax attributable to the taxpayer’s flow through adjustments from partnerships are not valid due to procedural errors on the part of the IRS. The assessment of tax attributable to a taxpayer’s share of partnership items is a complex area of tax law that even the IRS makes many errors in its application.
Let Former IRS agents get you the tax relief you need on your back taxes.
Fresh Start Tax L.L.C. is one of the premier tax resolution firms in the country. We deal with all types of civil cases including individuals, businesses, non-profits, partnerships and corporations. We have staff that specialize in every facet of IRS Tax Representation.
We know all the IRS tax strategies because of our extensive IRS working backgrounds. We were Former IRS Certified Tax Instructors that taught IRS Tax Law in the IRS Regional Training Center. Some of our many specialties include the following:
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
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
by Fresh Start Tax | May 4, 2012 | Back Taxes, IRS Notice or Letter, IRS Tax Debt, IRS Tax Problem, Representation, Tax Help, Tax Settlements
IRS Letter/Notice 1058 – Former IRS Agents – Insider Tips – Tax Relief on Back Taxes
Have Former IRS agents stop IRS today. Over 60 years with the IRS in the local, district and regional offices of the IRS.
Free tax consults 1-866-700-1040.
Have Former IRS Agents and Managers stop the IRS with the filing of a Collection Due Process, Right to Hearing and get you the time and settlement you need to go on with your life.
Stop the back tax problem with one phone call from a team member of Fresh Start Tax LLC. call 1-866-700-1040.
You can speak directly to the tax professionals handling your case.
We have worked and closed thousands of cases, IRS Letter/Notice 1058 since 1982. We are “A” rated by the BBB.
Call us for a free tax consult with a true tax professional. You will either speak to a Board Certified Tax Attorney, CPA or Former IRS Agents.
If you have just received a IRS Letter 1058 or LT- 11 this is a Final Notice from the Internal Revenue Service usually sent by certified mail. This Final Notice lets you know that you have not addressed your back taxes.
If you do not respond to this Letter/Notice 1058 the Internal Revenue Service has definitive plans to send out a bank levy, a wage levy sometimes called a wage garnishment and will probably file a Federal Tax Lien within 30 days from the date shown on the letter. You can stop this action by calling the IRS with a plan of action.
IRS will always send out a CP 504 letter/notice before the filing of the last and Final Notice, Form 1058 Collection due Process, Right to a Hearing Notice.
What to do when you receive this letter.
The first thing you always do is to take note of the final date allowed to contact the IRS.
You can either pay the balance you owe on your back taxes, or contact the IRS using the phone number on the notice to setup an IRS Installment Agreement, Payment Plan or have ask to have your case put into a tax hardship.
You will be required to fill out a form 433F which is a detailed IRS financial statement before IRS decides on how your tax case on your back taxes will be closed.
If you disagree with the Notice/Letter 1058 and you believe the notice is incorrect, you have the right to an appeal hearing. If you have sent prior letters those do not constitute a formal appeal.You must do so within your notice of appeal dates only.
Insider Tax Tips:
1. Always have a third party review your financial statement to make sure it makes sense before giving it to the Internal Revenue Service,
2. Make sure all your tax returns are filed before calling the IRS,
3. Make sure you have enough withholding being taken out or your ES payments are up to date.
4. If you are going to hire any firm make sure you use Former IRS Agents who know how the system works,
5. Be sure not to be ripped off. Check the BBB rating of any and all companies you may want to consider.
