by Fresh Start Tax | Jan 13, 2013 | IRS Tax Debt
Owe Railroad Retirement Taxes, Excise Tax – Settle with Former IRS Agents
If you owe railroad retirement taxes or excise taxes feel free to call us today to discuss your different tax options to deal with the Internal Revenue Service.
You can speak directly to tax attorneys, CPAs, or former IRS agents. We can offer different tax solutions to you to help settle or negotiate the back taxes you owe as a result of these RRT, Excise Taxes
We have over 205 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service and the local, district and regional office of the IRS.
We also taught tax law at IRS.
IRS has the ability to personally impose these taxes against individuals who were responsible for, and it did not turn this money over to the Internal Revenue Service.
Caution should be used in dealing with Internal Revenue Service because they can reach into the individual’s pocket and seize the money back on behalf of the US government.
Because railroad employers do not come under the social security system, they file different employment tax returns from those used to report FICA wages.
The forms used to report railroad employment taxes are presented below.
Form CT-1
Employer’s Annual Railroad Retirement Tax Return
A railroad employer files an annual CT-1 to report RRTA taxes.
All CT-1 returns are filed with the IRS Cincinnati Campus, and must be filed by the last day of the second month following the end of the calendar year (normally, by February 28th).
The IRS Cincinnati Campus provides information to the RRB to allow the RRB to reconcile railroad employer accounts.
Form CT-2
Employee Representative’s Quarterly Railroad Tax Return
A CT-2 is filed on a quarterly basis by individuals subject to the Tax on Employee Representatives.
Form 941 – Tax Form
Employer’s Quarterly Federal Tax Return
Although railroad employers are not subject to FICA, they are still required to withhold income tax on behalf of their railroad employees; there is no provision on Form CT-l to report the income tax withholding, so railroad employers use Form 941 for this purpose.
It is also conceivable that an employer could have some employees covered by FICA, and other employees covered by RRTA. In this situation the employer would be reporting FICA wages on the Form 941.
Tax Form W-2
Wage and Tax Statement
Railroad employers use Form W-2 to report wage payments to employees and to SSA. RRTA taxes are shown in Box 14, and Boxes 3, 4, 5, 6 and 7, relating to FICA and Medicare, should be blank.
Tax Form W-3
Transmittal of Income and Tax Statements
Railroad employers use Form W-3 to transmit Forms W-2 to SSA. Form W-3 provides a box to indicate that the employer is a railroad, alerting SSA to the fact that the information reported reflects RRTA rather than FICA and Medicare.
If an employer has some employees covered under FICA and Medicare as well as RRTA, the Form W-2’s must be segregated by type, and separate Forms W-3 prepared for each batch.
RRT/ Payroll taxes are an IRS priority
IRS considers RRT & payroll taxes part of the trust fund tax family. IRS considers these payroll taxes a priority since the taxes are really not a direct tax but monies that are held in trust by a company or corporation that has not been turned over IRS. So the highest priority is given collecting trust fund money.
Good Advice
If you are currently in business the best advice we can give you being former IRS agents is to make sure you are at least current for the week, month or current quarter. When IRS sees that your current they are more than likely to offer you a payment plan.
RRT / Payroll Taxes in Trust Fund Cases
It also should be known that these payroll taxes spawn off trust fund taxes . The Trust Fund tax is a result of nonpayment of 941 payroll taxes.
As a result IRS will impose under section 6672 of the IRC code an assessment against those responsible for paying the payroll taxes. This trust fund tax comprises of all the withholding in one half of the employee Social Security.
The responsible persons are not responsible for the employers part of the Social Security, the penalties, the interest or the unemployment taxes.
The position of the IRS
To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.
These taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.
The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business.
The business does not have to have stopped operating in order for the TFRP to be assessed.
Responsible for the Trust Fund Cases or Railroad Retirement Taxes
The RRT & Trust Fund may be assessed against any person who:
a. is responsible for collecting or paying withheld income and employment taxes, or for
b. paying collected excise taxes, and
c. willfully fails to collect or pay them.
A Responsible Person
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes.
This person may be:
1. an officer or an employee of a corporation,
2. a member or employee of a partnership,
3. a corporate director or shareholder,
4. a member of a board of trustees of a nonprofit organization,
5. another person with authority and control over funds to direct their disbursement, or
6. another corporation or third party payer.
Willfulness for Trust Fund or Excise Taxes
For willfulness to exist, the responsible person:
a. must have been, or should have been, aware of the outstanding taxes and
b. either intentionally disregarded the law or was plainly indifferent to its requirements.
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness.
How IRS conducts there investigation
You may be asked to complete an interview ( form 4180 can be found on our website )in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.
Figuring the Trust Fund Amount
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
a. The unpaid income taxes withheld, plus
b. The employee’s portion of the withheld FICA taxes.
For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the Trust Fund
If the IRS determines that you are a responsible person, IRS will provide you a letter stating that we plan to assess the TFRP against you.
You will have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal. The letter will explain your appeal rights.
Owe Railroad Retirement Taxes, Excise Tax – Settle IRS Tax Debt
by Fresh Start Tax | Dec 10, 2012 | Back Taxes, IRS Payment Plans, IRS Tax Debt, Tax Settlements
IRS Back Tax Payment Plan – Payment Plans, IRS Tax Settlements – Former IRS Agents Firm
If you need a Back Tax Payment Plan or if you think you are eligible for a IRS Tax Settlement contact us today for a no cost professional tax consult. 1-866-700-1040.
Hear the truth about your case from a tax firm that has over 205 years of professional tax experience and over 60 years of direct IRS work experience.
We were former IRS Agents, Managers and Instructors. We worked out of the local, district and regional offices of the IRS.
We know all the tax policy systems and settlement procedures.
With the New Fresh Start Program started by the IRS this year IRS is finally in the business of accepting back tax settlements which are called offers in compromise. Each and every taxpayer that owes back taxes should find out whether or not they are eligible for a IRS Tax settlement. It takes no more than 5 minutes to find out if your are a tax settlement candidate.
An offer in compromise allows you to settle your IRS tax debt for less than the full amount you owe. It may be a legitimate option if you cannot pay your full tax liability or doing so creates a financial hardship.
IRS will consider your unique set of facts and circumstances. There are no two cases the same. Each offer is evaluate on its own set of fact patterns.Offers are general based on the following four criteria:
a. Ability to pay back IRS,
b. Current income,
c. Current expenses and,
d. Distrait Equity in Assets.
Simply fill out a 433A and send it to our offices and we will determine if a IRS tax settlement called an offer in compromise is right for you.
IRS Payment Plans on Back Taxes
You can make monthly payments through an installment agreement or part pay agreement if you are not financially able to pay your tax debt immediately.
You will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full.
Before you apply for a back payment plan you need to :
a. File all required tax returns;
b. Consider other sources (loan or credit card) to pay your tax debt in full to save money;
c. Determine the largest monthly payment you can make ($25 minimum); and
d. Know that your future refunds will be applied to your tax debt until it is paid in full.
Fees or Costs for setting up an installment agreement or payment plans:
a. $52 for a direct debit agreement;
b. $105 for a standard agreement or payroll deduction agreement; or
c. $43 if your income is below a certain level.
Understand your back tax payment plan agreement should you avoid default
You must:
a. Pay at least your minimum monthly payment when it’s due (direct debit or payroll deductions make this easy),
b. Include your name, address, social security number, daytime phone number, tax year and return type on your payment,
c. File all required tax returns on time,
d. Pay all taxes you owe in full and on time. Contact the IRS to change your existing agreement if you cannot,
e. Continue to make all scheduled payments even if we apply your refund to your account balance and,
f. Ensure your statement is sent to the correct address, contact us if you move or complete and mail Form 8822, Change of Address.
If you do not receive your statement, send your payment to the address listed in your IRS agreement.
There may be a reinstatement fee if your agreement goes into default.
Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, contact the IRS immediately.
The IRS will generally not take enforced collection actions:
1. When an installment agreement is being considered;
2. While an agreement is in effect;
3. For 30 days after a request is rejected.
IRS enforcement action.
If you fail to met the terms of a back tax payment plan the IRS can or will:
1. File a Notice of Federal Tax Lien,
2. File a Notice of Tax Levy on your bank account or wages,
3. File a Notice of Garnishment on your Wages.
IRS Back Tax Payment Plan – Payment Plans, IRS Tax Settlements – Former IRS Agents Firm 1-866-700-1040
by Fresh Start Tax | Dec 7, 2012 | IRS Payment Plans, IRS Tax Debt
IRS Payment Plans for Tax Debts – Get a IRS payment plan today – Former IRS
Let Former IRS agents get you a payment plan today and see if you can also get rid of penalties and interest.
Call for a no cost professional tax consult 1-866-700-1040. Affordable Services
Speak directly to Former IRS Agents, Managers and Instructors that can get you the very result allowed by law. We know all the tax policies and tax codes to make this program work for you. We are A plus rated by the BBB.
We may be able to settle your case with the IRS with a Offer in Compromise. We will go over the program with you when you call.
Monthly Payments and Installment Plans to the IRS
You can make monthly payments through an installment or payment agreement if you are not financially able to pay your IRS tax debt immediately.
You will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full.
However, before you apply to the IRS these are the things you need to know:
1. You will need to file all required tax returns,
2. You should consider other sources,
3. Determine the amount of your monthly payment based on your current budget. ($25 minimum) and,
4. Know that your future tax refunds will be applied to your tax debt until it is paid in full.
Fees for setting up an installment or payment agreement:
a. $52 for a direct debit agreement,
b. $105 for a standard agreement or payroll deduction agreement or,
c. $43 if your income is below a certain level.
Apply for an installment agreement or payment plan.
Fresh Start Tax will apply if you owe $50,000 or less in combined individual income tax, penalties and interest and get the payment plan the very day we make the request. So stop the worry. Yes, we get same day results.
Understand your agreement, avoid IRS payment default
You will want to keep your account in good standing with the IRS. to do that you will have to:
1. Pay at least your minimum monthly payment when it’s due (direct debit or payroll deductions make this easy),
You will need to put on the check:
Your name, address, social security number, daytime phone number, tax year and return type on your payment,
2. File all required tax returns on time,
3. Pay all taxes you owe in full and on time (contact us to change your existing agreement if you cannot),
4. Continue to make all scheduled payments even if we apply your refund to your account balance and,
5. Ensure your statement is sent to the correct address, contact us if you move or complete and mail Form 8822, Change of Address (PDF).
If you miss a payment to the IRS
There may be a reinstatement fee if your agreement goes into default.
Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason Fresh Start Tax can usually get you reinstated.
The IRS will generally not take enforced collection actions:
a. When an installment agreement is being considered,
b. While an agreement is in effect,
c. For 30 days after a request is rejected or,
4. During the period the IRS evaluates an appeal of a rejected or terminated agreement.
Call today for a no cost consult 1-866-700-1040.
IRS Payment Plans for Tax Debts – Get a IRS Payment Plan today – Stop the Worry NOW – IRS Tax Experts
by Fresh Start Tax | Dec 5, 2012 | IRS Tax Debt
IRS Tax Relief Attorneys, Lawyers – Tax Audits, Tax Settlements – Essex, Morris, Bergen, Passaic, Union – New Jersey
Stop the worry today.
Hire true IRS Experts for affordable fees.
We are comprised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents, Managers and Instructors.
We have over 205 years of professional tax experience and over 60 years of direct IRS tax experience.
While at IRS we taught Tax Law and we are familiar with all the tax settlement procedure and IRS tax audit guidelines. We can quickly and for affordable fees settle your tax case.
How Fresh Start Tax LLC a professional tax firm works.
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 and all communication will be handled by our tax professionals.
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 not close your case.
This is leverage that the IRS will use to get you tax compliant within their system.
We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost or have little or few your tax records.
3. The IRS requires a current financial statement.
We will secure a required 433-A or a 433F 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 Settlement Types.
After IRS reviews your fully documented financial statement the IRS will either:
1. Place you in a tax hardship because your current expenses exceed your income that is based on the National and Regional Standards.
2. Your financial statement show that you have the funds to set up a installment or payment agreement.
3. You are a settlement candidate. These settlements are called offers in compromise. Before we submit an offer in compromise we will qualify you before submitting any settlement. IRS accepts 30% of all settlements submitted.
IRS Tax Audit Representation.
Facts about IRS Tax Audits:
the advantage of Fresh Start Tax LLC is simply this. You will have Former IRS agents, managers, instructors and former IRS appeals agents defend your tax return during a tax audit.
We know ever tax strategy used by IRS and know how to defend every issue. Call today for a no cost consult.
- The IRS audits a total of 1,491,581 tax returns a year,
- The IRS field agents complete more than 320,000 audits by office or business visits a year,
- The IRS completes over 1,081,152 correspondence or mail audits a year,
- IRS has installed new software tracking systems with the development of the CADE 2 computer to spot and recognize tax audits more proficient,
- 1% of all tax returns are audited each year.
IRS Tax Relief Attorneys, Lawyers – Tax Audits, Tax Settlements – Essex, Morris, Bergen, Passaic, Union – New Jersey
by Fresh Start Tax | Dec 4, 2012 | IRS Tax Debt, New Jersey Tax, Tax Settlements
IRS Tax Attorneys, Former IRS – Settle IRS Back Tax Debt
Have Board Certified Tax Attorneys, Tax Lawyers and Former IRS Agents settle your IRS tax debt.
The IRS settles about 30 % of all cases sent to the Offer in Compromise Unit. Most of those accepted offers in compromise are prepared by a professional tax firm.
We can settle your IRS back tax debt for the lowest amount allowed by law. As former IRS agents we know all the settlement policies.
Contact us for a no cost evaluation. 1-866-700-1040.
Our Former IRS Agents taught Tax Law at the IRS and actually taught the tax debt settlement policies at the IRS called the Offer in Compromise.
We have over 205 years of total IRS experience and over 60 years of direct IRS experience in the local, district and regional offices of the IRS.
The New Fresh Start Program initiated by the IRS is now allowing reduced settlements.
See below IRS statement regarding the Offer in Compromise.
Offers in Compromise, Tax Debt Settlement program by the IRS.
The IRS is expanding a new streamlined Offer in Compromise program to cover a larger group of hurting taxpayers and business owners.
This IRS 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.
Offers in compromise 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.
An offer in compromise 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, assets and expenses to make a determination regarding the taxpayer’s ability to pay.
There are very specific tax formulas to settle cases. After a review of your case we will make recommendations of how to settle for the lowest amount allowed by law.
Our Firm
We are affordable , friendly and get results. Call us for a no cost professional tax consultation and speak directly to a Tax professional.
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 considers your unique set of facts and circumstances:
- Ability to pay;
- Income;
- Expenses; and
- Asset equity.
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise.
The Offer in Compromise program is not for everyone. Do not be ripped off.
We will qualify an client before submission of an Offer. We offer free tax assessments before any fees are required.
Make sure you are eligible for the Offer in Compromise Program
Before the 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.
IRS Tax Attorneys, Former IRS – Settle IRS Back Tax Debt – Essex, Morris, Bergen, Passaic, Union – New Jersey 1-866-700-1040
by Fresh Start Tax | Dec 3, 2012 | IRS Tax Debt, New Jersey Tax, Tax Lawyer, Tax Relief
IRS Tax Debt Relief – Tax Resolution – Tax Attorneys, Former IRS
Have former IRS Agents, Managers and Instructors completely resolve your IRS tax debt and get you a permanent tax resolution.
We have over 205 years of professional IRS and State Tax Experience and over 60 years of direct work experience at the IRS. We taught Tax Law at the IRS.
We are affordable and friendly.
Different Ways to Resolve your case with the IRS
There is a very specific process that the IRS uses to close all outstanding tax debt off of the CADE 2 enforcement computer.
IRS will require a base financial statement. Depending where your case is in the system IRS will either require a 433A or a 433 F financial statement.
In each case the financial statement will need to be fully documented.
Documentation will include but limited to 6 months of bank statements, bills or expenses and proof of income. IRS will compare your expenses to the National and Regional Standards. You can observe those on our website.
The three normal closing methods used by the IRS after a review of the documented financial statement are the following:
1. You will qualify for a IRS Hardship,
2. You will qualify for a IRS installment payment,
3. You will be eligible for a tax settlement.
Before you decide whether a tax settlement is right for you, make sure you are eligible.
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.
Submitting your offer in compromise.
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). You can find this on our website.
a. Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms,
b. Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
c. $150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a payment option
Your initial payment will vary based on your offer and the payment option you choose:
1. Lump Sum Cash.
Submit an initial payment of 20 percent of the total offer amount with your application. You will wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
2. Periodic Payment.
You will submit your initial payment with your application.You should 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.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the offer in compromise process
While your offer in compromise is being evaluated:
1. Your non-refundable payments and fees will be applied to the tax liability,
2. A Notice of Federal Tax Lien may be filed by the IRS,
3. Other IRS collection activities are suspended,
4. The legal assessment and collection period is extended;
5. Make all required tax payments associated with your offer,
6. You are not required to make payments on an existing installment agreement or payment plan and,
7. Your offer in compromise is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
IRS Tax Debt Relief – Tax Resolution – Tax Attorneys, Former IRS Essex, Morris, Bergen, Passaic, Union – New Jersey
