by Fresh Start Tax | Feb 27, 2018 | IRS Tax Debt, Tax Help
I am a IRS Tax Debt Expert. My Company, Fresh Start Tax LLC
I am a Former IRS Agent and Teaching Instructor with the IRS.Call us/me to hear the truth about IRS Tax Debt Relief.
Fresh Start Tax LLC + IRS Tax Debt Relief Experts, Former IRS Agents & Managers Who Know the system, Since 1982
Tax Debt Relief: We have former IRS agents, managers, and supervisors, we know the IRS system inside and out. We have over 100 years of direct working experience with the IRS.
The first step to lower stress and lower debt is to contact former IRS agents who know the system.
If you owe $15,000 or more in taxes, or you have on Unfiled tax returns, you need to hear about the IRS programs available to you.
6.5 million Americans are falling in tax debt every year and the other countless million who have not filed their yearly tax returns.
If you are one of them, you understand about the stress and frustration of having to deal with the IRS.
The IRS can hold on to your refund, take a chunk of your pay, put a federal tax levy or garnishment on your bank account, seize and sell your property and revoke your passport.
IRS also can take 15% of your Social Security check, a benefit that’s off-limits to private creditors.
The Internal Revenue Service is the largest and most vicious tax collection agency in the world. But you do not have to worry about them we how to control the beast because of our years of experience.
If you know the system you will found the IRS actually working with you not against you.
There are tax relief programs available.
A simple call the to our office and speak directly to a tax professional can assure you that this process is not as nearly as complicated as you think.
Michael D. Sullivan IRS Tax Debt Expert
Why does the Internal Revenue Service want to settle your tax debt for pennies on the dollar?
1.IRS resources are constrained.
Five years of budget cuts by Congress has limited the IRS’ ability to enforce its own laws. The IRS budget has been reduced by $1.2 billion since 2010 despite having 12.8 million more tax returns to process.
Since 2010, the IRS has laid off 17,000 workers, which explains why, in 2015, the IRS only Audited 0.7% of all tax returns. Actually, we have a former IRS agent who recently retired and can go through a litany of other reasons why IRS would settle your tax debt.
Just know this is in the best interest of the government to do so.
Congress looks at IRS numbers at the end of every year and many times budgets of the Treasury department based on the collection statistics from the Internal Revenue Service.
2. You may have heard that the IRS only has 10 years to collect taxes.
These time restrictions put a lot of pressure on already overworked IRS agents.
Also it is called return on investment. The IRS wants to collect something on a debt that they may never be able to collect.
Hire a tax resolution firm that has former IRS training agents and who know the system.
You will get you the best deal possible whether it’s our firm or another firm always go with former IRS agents.
IRS tax relief programs help taxpayers by reducing the amount they owe, giving them more time to pay, or a combination of both. It’s a win-win for the IRS and taxpayers.
What type of tax relief examinations are there?
There are several tax relief programs taxpayers can apply for, but only three that offer debt forgiveness:
1. The Offer in Compromise program,
2. The Partial Pay installment Agreement program,
3. The Currently non-collectible, hardship.
Call us today to find out which program you qualify for.
Your current financial statement on form 433A or 433F will determine how IRS will closer settle your case.
The Offer in Compromise Program
An offer in compromise is a settlement where the IRS accepts less that the total debt amount in exchange for a lump sum or up to two years of monthly payments. As far as debt forgiveness goes, offers in compromise are usually the best deal available to taxpayers.
The problem is it’s not easy to meet IRS eligibility criteria. There is also a pre-qualifier program to make sure you are eligible for settlement .
I was a former IRS agent who taught the offer in compromise program to new agents. I am one of the nation’s leading Experts in the offer in compromise.
However, since 2010, the IRS has relaxed its standards through the fresh start initiative.
In 2015, the IRS accepted 40.3% of all offers in compromise for an average settlement of $9000 a case.
The acceptance rate is even higher for taxpayers who hire a tax relief company. It’s common for tax relief firms to maintain acceptance rates of over 85%.
Partial Pay or monthly payments installment Agreement
The Partial Pay installment Agreement does not get much attention and publicity, but it often has even better terms that offers in compromise.
40% of all open IRS cases are issue in payment agreement status but sadly over 50% of taxpayers cannot keep up their payments.
A Partial Pay installment Agreement is similar to an Offer in Compromise in that the IRS forgives part of your debt, but it has longer repayment terms: typically, 36 to 72 months.
Partial Pay installment Agreements are easier and faster to qualify for and you don’t have to provide as much financial information.
However if your debt is over $50,000 IRS will require a complete documented financial statements.
The Hardship Program, Currently Non collectible
The hardship program simply means you do not have the currently the means to deal with Internal Revenue Service.
After the Internal Revenue Service reviews your current financial statement and based on the national, local, and geographical standards, IRS will find that you are upside down in issue you in a currently non-collectible status.
What that means is that IRS puts a freeze on your case for two or three years and will look at the situation later.
Many times a taxpayer stays in this uncollectible status for several years and at some point in time the statute of limitation may run out, contact us for more details.
Please make sure all tax returns are filed and current with the IRS.
Michael D. Sullivan + IRS Tax Debt Relief Expert
by Fresh Start Tax | Aug 13, 2013 | IRS Tax Debt
There are different ways to deal with the Internal Revenue Service to settle a tax debt.
One of the critical aspects in settling with the Internal Revenue Service is to make sure that your case is permanently resolved.
The ways of permanently resolving your debt are either through a bankruptcy proceeding, the statute of limitations expiring or the settling of your case through an offer in compromise.
Hiring a solid tax debt attorney firm can assure that you can resolve your case for the lowest amount of money in the least amount of pain to the client. This article will only deal with the offer in compromise to relieve yourself of the IRS tax debt.
Tax Settlement
Experienced tax attorneys and tax firms can help assure that you will settle your tax debt with the Internal Revenue Service for the lowest dollar allowed by law. It also should be known that there are specific formulas that dictate the IRS tax settlement policy.
The Internal Revenue Service has a process which is called the offer in compromise.
Tax Debt Attorney Facts
- The Internal Revenue Service receives about 60,000 offers in compromise each year.
- About 38% of those offers are accepted by the Internal Revenue Service. The average settlement on a dollar is $.14.
- If you are going to file for tax debt relief with the Internal Revenue Service you need to be patient. The average wait time to settle your case with the IRS is between six months to a year.
The Offer in Compromise
Within the last two years the Internal Revenue Service has come out with a new program or initiative called the fresh start .
It has allowed taxpayers struggling with old tax debt to permanently deal with the Internal Revenue Service and completely eliminate their tax debt for pennies on the dollar.
Before taxpayers goes running off to settle their IRS debt the taxpayer must make sure that they are a suitable and qualified candidate for the offer in compromise program.
Warning
As a warning to taxpayers, searching the Internet for tax companies to do this work I would caution you to make sure you are giving your work to a professional tax company. Most Internet sites that you see do not use qualified tax professionals to deal with your IRS tax debt.
They use semi-qualified people were more interested in generating fees in settling your tax debt.
Before hiring a tax that firm check on the qualifications of the professional that we will be working your particular case. Ask that person many questions. You will get a good solid gut feeling on whether you should hire that person or that firm. You should also check on the BBB rating as well as asking for similar results on a case that is similar to yours.
Pre-Qualifier Tool for Tax Debt
To make sure that you do not fall victim for some of these companies, the Internal Revenue Service has now a pre-qualifier tool that you can use before you submit your offer in compromise to settle your tax debt with the IRS.
You will find that pre-qualifier tool right on our website. I would urge all taxpayers before paying a dime to any tax firm to walk themselves through this very simple process to make sure they are qualified for an IRS tax debt settlement called the offer in compromise.
What dollar amount is IRS looking for to settle
The Internal Revenue Service is interested in two main things things, your assets in your income.
IRS has specific formulas to deal with the taxpayer’s income and the liquidation of certain assets to come up with a fair settlement amount for the offer in compromise to settle a tax that.
We at fresh start tax llc will pre-qualify your offer in compromise and make sure that you are a quality candidate for the tax debt settlement call the offer of compromise.
Contact us today for free initial tax consultation and we walk you through this program.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS mainly consider your unique set of facts and circumstances:
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
The IRS generally approve an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time.
Make sure you explore all other payment options before submitting an offer in compromise.
The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
Make sure you are eligible for a Tax Debt Reduction
Before the IRS can consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding. Use the Offer in Compromise Pre-Qualifier on the fresh start tax llc to confirm your eligibility and prepare a preliminary proposal.
Submitting your offer to the IRS
Your completed offer package will include:
1. Form 433-A (OIC) (individuals) or
2. 433-B (OIC) (businesses) and all required documentation as specified on the forms;
Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate
3. Form 656;
4. $150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a payment option for the Tax Debt for the OIC
Your initial payment will vary based on your offer and the payment option you choose:
- Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
- Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full .
Understanding the Tax Debt process with the IRS
While your offer is being evaluated:
1. Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
2. A Notice of Federal Tax Lien may be filed;
3. Other collection activities may be suspended;
4. The legal assessment and collection period is extended from the normal 10 years;
5. Make all required payments associated with your offer;
6. You are not required to make payments on an existing installment agreement or payment agreement program; and
7. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date. Just so you know this rarely happens.
Fresh Start Tax a professional tax firm that specializes in the resolution of IRS tax debt.
We are comprised of tax debt attorneys, CPAs, and former IRS agents and managers. Contact us today for free initial consultation and we will give you free tax advice whether it is worthwhile to file an offer in compromise for your tax debt to settle with the IRS.
Tax Debt Attorneys – How to Settle with the IRS
by Fresh Start Tax | Jul 17, 2013 | IRS Tax Debt, Tax Help
If you owe back taxes and have State or IRS federal tax debt you can contact us today for a free initial consultation, yes free advice with no strings attached.
We will simply let you know if we can help you and offer you different and various tax solutions that could remedy your problem forever.
We are A+ rated by the Better Business Bureau so have no fear that the information we will be giving you is true and correct.
We are a professional tax firm comprised of tax attorneys, tax lawyers, certified public accountants, and former IRS agents, managers and tax instructors.
We have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
We are a Tax Specialty firm that deals specifically in IRS and state tax debt. We are some of the premier tax debt consultants of both state and federal tax debt in the nation. We have been in private practice since 1982.
You can contact us for a free initial tax consultation and let us give you an individualized plan to resolve your state or federal tax debt.
We have over 206 years of professional tax debt experience and we are A+ rated by the Better Business Bureau.
When you call our office you will speak directly to a tax professionals.
Different Tax Debt Solutions on Back Taxes
There are generally three solutions if you owe the state or the federal government back tax debt and almost all government agencies work the same way.
For the government to deal with back tax debt they will want a current financial statement. That current financial statement form will very from state to state and the Internal Revenue Service specifically will use form 433-F.
Once the government agency reviews your current financial statement they will want complete documentation to verify the correctness in the accuracy of your current financial state. They will also want to see bank statements, pay stubs and receipts of all current expenses.
Many agencies will want a copy of your last tax return.
How they will deal with your case
The three categories that taxpayers or businesses are usually put into after review of the financial statement with a government agency are the following.
- they may determine that you are an noncollectable candidate to put your back tax account into a current tax hardship sometimes known as currently not collectible or
- another option is that they will insist on a monthly payment or installment plan,
- or another option they will ask you and let you know that you are a qualified and suitable candidate to settle your tax case.
Contact us today for a free tax that consultation and hear the various solutions and remedies to permanently and immediately began to remedy your case.
Remember if you are going to choose a tax debt consultant you should consider using tax attorneys, CPAs or former IRS agents and managers who know the systems, the protocols, and the best tax settlement strategies to resolve your back tax debt.
Tax Debt Consultants – Fresh Start Tax, A+ Rated BBB, FREE ADVICE
by Fresh Start Tax | Jul 15, 2013 | IRS Tax Debt
We’re a local South Florida tax firm that specializes in IRS and state tax debt settlements.
38% of all debt settlement requests made to IRS are accepted.
If you want to settle your tax debt with the Internal Revenue Service or the State contact us today for a free initial tax consultation.
We are experts in debt settlement with the Internal Revenue Service.
We are a local South Florida tax firm who has been in private practice in South Florida since 1982.
We have an A+ rating by the Better Business Bureau and have over 206 years of professional tax experience.
You can come by and visit our offices today for a free initial tax consultation and see if you qualify for IRS tax debt settlement.
You can speak directly to tax attorneys, certified public accountants, former IRS agents, managers and/or tax instructors that have worked hundreds of cases involving debt settlements between their clients and the Internal Revenue Service.
We are local tax experts and tax resolution relief and can offer you several solutions to immediately and permanently resolve your IRS or state tax matters.
Before you apply for tax debt settlement with the Internal Revenue Service make sure that you are a qualified and suitable candidate for their debt settlement program called an offer in compromise.
There is a pre-qualifier tool for debt settlement that you can find on our website that you could walk by yourself to make sure you’re a qualified debt settlement candidate before you spend any money.
What is the Debt Settlement Program by IRS?
The IRS debt settlement program by the Internal Revenue Service is called the offer in compromise.
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the tax liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
To be eligible for an OIC,
In order to be eligible for an OIC, the taxpayer must have:
- filed all tax returns,
- made all required estimated tax payments for the current year,
- and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential .
The RCP is how the IRS measures the taxpayer’s ability to pay. The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
The IRS may accept an OIC based on three grounds.
- First, acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
- Second, acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
- Third, acceptance is permitted based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of the forms :
- Form 656 (PDF), Offer in Compromise,
- and also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals,
- and/or Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
- A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
Application Fee
In general, a taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
- First, no application fee is required if the OIC is based on doubt as to liability.
- Second, the fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception. This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception. A taxpayer who claims the low-income exception must complete section 4 of Form 656.
Different types of OIC
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
- A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted. If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount. This payment is required in addition to the $150 application fee. The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability. The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
- The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656. This payment is required in addition to the $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. These amounts are also non-refundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties.
Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
OIC Rejection, Appeals
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter. In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
Contact us today for a free initial tax counsel station in speak directly to debt settlement experts. We are affordable and A+ rated by the Better Business Bureau.
Debt Settlement IRS Taxes – IRS & State Tax Help – Miami, Ft.Lauderdale, Palm Beaches
by Fresh Start Tax | May 14, 2013 | IRS Tax Debt
IRS Tax Audit Examination – Former Local IRS Audit Managers – IRS Audit Experts, Affordable 954-492-0088
Hire former IRS agents and managers who worked out of the local South Florida Internal Revenue Service offices.
As a result of our 60 years work experience in the local South Florida offices , we know all the systems, all the manual protocols and all tax audit defenses. We are one of your best chance for tax audit defense in South Florida for a IRS tax examination.
We are a full service tax firm that specializes in IRS tax audit examinations. We are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS agents and managers.
As Agents we worked in the local, district, and regional tax offices of the Internal Revenue Service.
If you have received an IRS tax audit examination letter and need affordable IRS tax audit representation contact us today for a free initial consultation.
We can weigh-in on your situation and you can hear the honest truth about your case.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
We are affordable solution for IRS tax audit examination.
Serving South Florida since 1982.
So why was my return selected for IRS tax audit examination?
When returns are filed, they are compared against “norms” for similar returns.
The “norms” are developed from audits of a statistically valid random sample of returns. These returns are selected as part of the National Research Program which the IRS conducts to update return selection information.
The return is next reviewed by an experienced auditor.
At this point, the return may be accepted as filed, or if based on the auditor’s experience questionable items are noted, the agent will identify the items noted and the return is forwarded for assignment to an examining group.
Upon assignment to a group, the return is reviewed by the manager.
Items considered in assigning a case are: factors particular to the area such as issues pertaining to construction, farming, timber industry, etc. that have specific factors and rules that apply. Based on the review, the manager can accept the return or assign the return to an auditor.
The assigned auditor again reviews the return for questionable items and either accepts it as filed or contacts the taxpayer to schedule an appointment.
Where will the audit be held?
It depends on the type of audit being conducted.
Audits by Mail/Correspondence Audit.
Some audits are conducted entirely by mail.
If the audit is conducted by mail, you will receive a letter from the IRS asking for additional information about certain items shown on the tax return such as income, expenses, and itemized deductions.
In-Person Audits.
In person IRS tax audit examinations are audits conducted either at a local IRS office or at your business location.
Can you request the audit be conducted at the IRS office instead of at your place of business?
If the audit has been scheduled to be conducted at your location, it will generally be conducted where the books and records are located.
Requests to transfer the audit to another location, including an IRS office, will be considered but may not be granted. Treasury Regulation 301.7605-1(e), Time and place of audit, discusses the items considered when a request for a change in location is made.
Can the IRS tax audit examination be transferred to another IRS office?
You can request a transfer of an audit if you have moved.
Several factors will be considered such as your current location, the location of the business and where the books and records are maintained.
If the audit is by correspondence, you can request a face-to-face audit because the books and records may be too voluminous to mail.
How long should the records related to a business or other long-term asset be kept?
In the case of an asset, records related to the asset should generally be kept for as long as you have the asset plus three years.
If the asset was exchanged, the basis for the new asset may include the exchanged asset so the records for both assets will need to be retained until the new asset is disposed plus three years from the file date of the tax return for the year of disposition.
How long should payroll records be kept?
In general, payroll records should be kept for six years with a review of the file to see if any items relating to current employees should be retained with current records.
After an IRS tax examination auditor completes the IRS audit, will the case be reviewed to ensure the audit results are correct?
All cases may be reviewed by the auditor’s manager either during the audit or upon completion. If errors are noted by the manager, the auditor will contact you to advise you about the proposed correction and what impact this may have on the amount of tax due.
How far back can the IRS go to audit my tax return?
Generally, the IRS can include returns filed within the last three years in an audit. Additional years can be added if a substantial error is identified.
Generally, if a substantial error is identified, the IRS will not go back more than the last six years.
The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly most audits will be of returns filed within the last two years.
If an audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return. The statute of limitations limits the time allowed to assess additional tax. The statute of limitations is generally three years after a return is due or was filed, whichever is later.
If the IRS tax audit examination is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date.
This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the audit results, or to claim a tax refund or credit. It also allows the IRS time to complete the audit and provides time to process the audit results.
You do not have to agree to extend the statute of limitations date.
However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have.
The IRS tax examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
Contact us today for a free initial consultation and see if we can minimize your pain and problem you are going through as a result of a tax audit from the Internal Revenue Service. We are tax audit representation specialists.
IRS Tax Audit Examination – Former Local IRS Audit Managers – IRS Audit Experts, Affordable – Ft.Lauderdale, Miami, Palm Beaches
by Fresh Start Tax | Mar 5, 2013 | IRS Tax Debt, Tax Settlements
IRS Tax Debt Settlement Tax Lawyer, Attorney Ft.Lauderdale, Miami – IRS Settlement Experts 954-492-0088
If you have an IRS Tax Debt and you wish to propose a tax settlement with the Internal Revenue Service who better to hire a tax firm that has on staff Tax Lawyer Attorneys, CPAs, and former IRS agents.
We have worked out of the local South Florida IRS offices and have over 60 years of direct working knowledge of the IRS.
While at the IRS our former IRS agents not only taught tax law but also taught the IRS tax debt settlement program called the offer compromise. We are true experts in IRS tax debt settlements.
With over 206 years of professional tax experience and over 60 years with the IRS we are one of the most experienced local professional tax firms.
We have been practicing since 1982 and the local South Florida area.
Call us today for a free tax consultation and hear the truth about your case and the different tax options and remedies available to you to settle your tax debt with the Internal Revenue Service.
IRS Tax Debt Settlement – The New Fresh Start Tax initiative by the IRS
In its latest effort to help struggling taxpayers, the Internal Revenue Service announced a series of new steps to help people get a fresh start with their tax liabilities.
The IRS goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
With IRS initiative the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
The New Tax Liens policy from IRS
IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers.
The new tax changes include:
a. Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens,
b. Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill,
c. Withdrawing federal tax liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement,
d. Creating easier access to Installment Agreements for more struggling small businesses,
e. Expanding a streamlined Offer in Compromise program to cover more taxpayers.
Both the taxpayer and the IRS benefits from this. This is another in a series of steps to help struggling taxpayers.
In 2008, the IRS announced lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems. And last year, the IRS held about 1,000 special open houses to help small businesses and individuals resolve tax issues with the Agency.
The New Federal Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised.
Currently, federal tax liens are automatically filed at $10,000 dollar levels for people with past-due balances.
The IRS plans to review the results and impact of the lien threshold change in about a year. IRS should not be filing tax liens unless the tax debt is over $20,000. The filing of a federal tax lien actually cripples taxpayers and their future ability to borrow money. With the IRS filing these tax liens taxpayers are finding it absolutely impossible to pay off their debt because of their credit reporting scores.
The federal tax lien protects the government’s interest it has a completely adverse effect on the taxpayer in many cases taxpayers will never recover from the filing of the federal tax lien.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt.
Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
The New Tax Lien Withdrawals System
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
The New 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 . For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Tax 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.
Federal Tax Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
The New Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The New Streamlined Installments for businesses
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
IRS New Tax Debt Settlement procedures – Offers in Compromise
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
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
- Tax Lawyer, Attorney, IRS 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.
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IRS Tax Debt Settlement Tax Lawyer, Attorney – Ft.Lauderdale, Miami – IRS Settlement Experts
