by Fresh Start Tax | May 30, 2012 | Back Taxes, IRS Tax Debt, IRS Tax Problem, Offer in Compromise, Tax Lawyer
IRS Fresh Start Initiative & Program – Get a Fresh Start with the Internal Revenue Service NOW!
Tax Resolution Service Company A+ BBB Rating, Tax Resolution Firm, Former IRS 1-866-700-1040
Yes, the IRS is actually doing something very positive to help taxpayers that are experiencing tax problems.
I am a Former IRS Agent and Teaching Instructor with the Internal Revenue Service and it is still hard to believe.
There are several new initiatives the IRS now has the table that is changing the ways people are resolving back tax issues.
I have been working IRS cases for over 38 years and to date this is one of the biggest policy shifts I have ever seen. The flood gates are wide open for Offers in Compromise.
IRS wants to now settle cases. Hard to believe but it is true.
IRS has reduced the age old firm guidelines to reasonable standards so that thousands of taxpayers/clients may now qualify to get their cases settled for cheap and their tax liens released.
In a nutshell, IRS has reduced the asset requirements and completely modified monthly standards of income and expense elements.
As a result, clients that could never qualify for an OIC or tax debt settlements are now excellent settlement candidates.
This IRS announcement focuses on the financial analysis used to determine which taxpayers qualify for an Offer in Compromise.
It is possible for some taxpayers to resolve their tax problems and back taxes in as little as two years compared to four or five years in the past.
The changes announced include:
1. Revising the calculation for the taxpayer’s future income. This is a massive change.
2. Allowing taxpayers to repay their student loans. This could cut a settlement payment down some $30,000.
3. It allows taxpayers to pay state and local delinquent back taxes,
4. It also allow for the expanding the Allowable Living Expense allowance category and amount.
The IRS finally recognizes that taxpayers are still struggling to pay their bills and debt so the IRS has been working to put in place common-sense changes to the OIC program to more closely reflect real-world situations.
When the IRS usually determines and calculates a taxpayer’s reasonable collection potential, the IRS will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years.This is the major change that will save the taxpayers thousands and thousands of dollars.
Key Point to Remember – All offers in compromise ( OIC ) must be fully paid within 24 months of the date the offer is accepted.
Other changes to the OIC program include narrowed parameters and clarification of when a dissipated asset will be included in the calculation of reasonable collection potential.
In addition, equity in income producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.
Notable Area – Allowable Living Expenses:
The Allowable Living Expense standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay. The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas.
These standards are used when evaluating installment agreement and offer in compromise requests.
The National Standard miscellaneous allowance has been expanded to include additional items.
Taxpayers can use the miscellaneous allowance for expenses such as:
1. credit card payments and
2. bank fees and charges.
Guidance has also been clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education. In addition, payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.This is another in a series of steps to help struggling taxpayers under the Fresh Start initiative.
Changes made to the Federal Tax Lien Policy
The IRS made changes to federal tax lien policies in 2011 and expanded the threshold for small businesses to resolve tax issues through installment agreements. And, earlier this year, the IRS increased the threshold for a streamlined installment agreement allowing individual taxpayers to set up an installment agreement without providing a significant amount of financial information.
More changes, Penalty Relief.
The Internal Revenue Service has expanded its “Fresh Start” initiative to help struggling taxpayers who owe taxes. The following four tips explain the expanded relief for taxpayers.
Penalty relief Part of the initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax bill.
The Fresh Start Penalty Relief Initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes. Interest still applies on the 2011 taxes from April 17, 2012 until the tax is paid, but you won’t face failure-to-pay penalties if you pay your tax, interest and any other penalties in full by Oct. 15, 2012.
The penalty relief is available to two categories of taxpayers:
1. Wage earners who have been unemployed at least 30 consecutive days
during 2011 or in 2012 up to this year’s April 17 tax deadline.
2. Self-employed individuals who experienced a 25 percent or greater
reduction in business income in 2011 due to the economy.
The IRS could have expanded it policies on late filers but chose to ignore the largest penalty the IRS charges. I would have loved to see IRS loosen their belts here.
Qualifications for Penalty Relief
To qualify for this penalty relief, your adjusted gross income must not exceed $200,000 if married filing jointly or $100,000 if your filing status is single, married filing separately, head of household, or qualifying widower. Your 2011 balance due can not exceed $50,000.
Taxpayers who qualify need to complete a new Form 1127A to request the 2011 penalty relief. The new form is available on www.irs.gov or by calling 1-800-829-3676 (TAX FORM).
Installment agreements,part payment plans or installment agreements
An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date. The Fresh Start provisions give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay.
The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000. This is very huge.
This option requires limited financial information, meaning far less burden to the taxpayer. The maximum term for streamlined installment agreements has been raised to six years from the current five-year maximum.
If your debt is more than $50,000, you’ll still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F).
You can also pay your balance down to $50,000 or less to qualify for this payment option.
With an installment agreement, you’ll pay less in penalties, but interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, you must agree to monthly direct debit payments.
Call us today and we can answer all your questions. If you need help with any back tax issues , tax debt settlements, or unfiled tax returns we are the firm to turn to for tax relief.
Our team of Former IRS Agents, Tax Attorneys and CPA’s are some of the best in the business.
IRS Fresh Start Initiative & Program – Get a Fresh Start with the Internal Revenue Service NOW!
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.
by Fresh Start Tax | May 2, 2012 | IRS Tax Debt, Representation, Tax Lawyer, Tax Levy and Wage Garnishments
What is the difference between a Federal Tax Lien and a IRS Levy? 1-866-700-1040
Get your Levy Released today.
This is one of the most common questions asked by our clients and taxpayers.
Being a Former IRS Agent I want to explain this is in very simple terms so everyone can understand the difference.
A IRS Tax Levy is an immediate seizure of assets. It is usually sent to a Bank or is put on a taxpayers wages. These are also called Bank Levy Garnishments or Wage Levy Garnishments. They are sent to banks and businesses on tax forms 668A, 668W.
A Bank Levy has special rules applied to the procedure. The day a Bank Levy is received by a Banking Institution the account is immediately frozen for the amount shown on the Tax Levy. Only those funds are frozen. Monies deposited after the levy are not effected by the Bank Levy or Tax Levy.
The bank MUST hold the frozen funds for 21 days before sending the money to the IRS. The IRS gives that 21 day grace period as a time for the taxpayer to get the bank levy released.
A Wage Levy or Wage Garnishment has a different feature.
After a business receives a levy the wages are immediately frozen and the employer must send the applicable proceeds to the IRS on the next scheduled pay period. There is no grace period.
As a general rule the taxpayer can keep around 10% that is exempt from the levy. IRS will send out a form that details the exact exempt amount.
IRS does not wish to levy. The hope is that the taxpayers call the IRS to work out or make a tax settlement to resolve the tax problem or tax situation.
Tax Levies can usually be released within one week sometimes even that day if we can get records from the taxpayer.
A Federal Tax Lien is a notice filed at the Public Courthouse in the area of your residence putting the public and creditors on notice you owe IRS taxes. It is not a seizure just a notice.
Anyone has access to public records and everyone can has access to your tax information.
Your credit score will be badly damaged as a result of a Federal Tax Lien. A Federal Tax Lien cannot be removed until it is paid in full or the statute of limitations runs. Other rules apply call us for more details.
IRS must file a Federal Tax lien if you owe over $5000.
If you need immediate tax relief from a federal tax levy or a federal tax lien call Fresh Start Tax LLC today. 1-866-700-1040. IRS Tax Debt Settlement Relief today.
On staff Tax Attorney’s, CPA’s and Former IRS Agents for professional tax representation.
What is the difference between to IRS Tax Levy and Tax Lien – Former IRS Agents/ Tax Attorneys – IRS Experts
by admin | Apr 3, 2012 | Back Taxes, IRS Tax Debt, IRS Tax Problem, Tax Help
If you are a TAX MASTERS client and need immediate tax help to resolve your IRS tax problem call Fresh Start Tax LLC. “A ” Rated by the BBB!
We will offer a free tax consult and a major discount. 1-866-700-1040. Do not be ripped off again!
TaxMasters is gone and left some major players holding the bag.
The writing was all over the wall on this one. The word on the street, the last of the big 3 to be taken down.With hundreds of complaints and AG filings everyone in the industry knew this was coming, it was only a matter when. You cannot falsely advertise and get away with it.
TaxMasters was one of the big three that advertised heavily on TV, Cable …… and it seems almost on every station.
The airwaves were full of tax attorney Patrick Cox telling people he could settle their tax debt for cheap. Thousands bought the pitchman’s adds and they are now all holding the bag.
The biggest loser on this was not the television show but CNN with a $2.6 million owed to them. Sad!
According to reports filed and Janet Novak, ” TaxMasters’ unsecured creditors are unlikely to see much, if any, cash. In its new filing, TaxMasters listed just $1.7 million in assets. Moreover, according to the Texas Attorney General, last Friday a Travis County Texas jury returned a $195 million verdict against TaxMasters and Patrick Cox, its founder and CEO, for 110,383 violations of the Texas Deceptive Trade Violations Act. Some $113 million of that total is a refund of client fees, and another $81 million is civil penalties. TaxMasters’ clients typically owe the Internal Revenue Service large amounts of back taxes they can’t pay and may be facing IRS enforcement actions, such as liens and levies. The Texas AG charged in its lawsuit that TaxMasters misled potential customers, both in its advertising and in its customer contacts, about its policies—for example, failing to disclose that it wouldn’t start work on a case until a customer paid in full for its services, even it meant missing important IRS deadlines.
According to TaxMasters’ restated first quarter 2011 financial report—the last quarter it has reported to the SEC—the company had $13.1 million in quarterly revenues, and spent $4.1 million on advertising during those three months. “The Company believes advertising is the engine that drives sales,’’ the report states. TaxMasters’ best known ads featured the red-bearded Cox assuring potential clients that his staff of tax pros, including former IRS agents, had helped “many good people just like you.”
The bottom line, large companies cannot manage all the work that comes in. There advertising dollars far exceeds there personnel to work these cases. Also, many of the calls TaxMasters received were based on deceptive advertising and offering to settle for pennies on a dollar. While true, few taxpayers get there cases settled.
So who got stuck footing the advertising bill?
In addition to CNN, TaxMasters’ 20 largest listed creditors include:
News Corp.’s Fox News Channel (owed $938,414);
Houston advertising firm Maxximedia (owed $1,326,676);
American Express (owed $679,497);
The Radio Network Westwood One, now a part of Dial Global (owed $676,000);
History Channel (owed $653,820);
MSNBC (owed $259,441);
Yahoo (owed $196,475);
Dial Global’s Weather Channel (owed $172,233);
The Discovery Channel (owed $136,850)
and Disney’s ESPN (owed $94,265).
If you have an IRS tax issue, owe back taxes, unfiled tax returns, tax problems, owe IRS – call us today to get your problem permanently resolved.
by admin | Mar 19, 2012 | IRS Tax Debt
Tax Masters – Fresh Start Tax L.L.C. helping Tax Masters former clients.
Get a free tax consultation for your case, no strings attached!
It happened once again and everyone in the tax resolution knew it would only be a matter of time.
The last of the big 3 would close it’s doors. It happened first to the Tax Lady Roni Deutsche, then J.K.Harris and finally the bankruptcy of Tax Masters and Patrick Cox.
These are the main 3 tax resolution companies that advertised heavily in the tax resolution industry. According to the Southern Texas Bankruptcy filing, Tax Masters had less than $5000 in asset and up to 5,000 creditors.
Michael D. Sullivan one of the founders of Fresh Start Tax LLC company believes that smaller to mid-size companies work best in this tax vertical. The reason is quite simple, the Big 3 concentrated on marketing and advertising and less on work or work performance. They were cash machines preying on taxpayers that had IRS problems.
These large companies got so much work in through advertising dollars they could not keep up with demand. Also the reason they got the work was based on false promises that taxpayers tax liability would be settled for pennies on a dollar.
While pennies on a dollar can be true, it just does not happen as much as taxpayers would like. IRS received 57,000 offers in compromise to settle tax debt last year and accepted 12,000 cases for an average of $.14 cents on a dollar.
One of the other main reasons these large companies fail is due to the fact that they do not have the qualified personal to work the cases because most of there budget is spent on advertising dollars.
Fresh Start Tax LLC will offer a free tax consultation all taxpayers that have had tax issues with with Tax Masters, J.K.Harris, or the Tax Lady. Fresh Start Tax LLC is one of the leading tax resolution firms in the country as of the writing of this article has had no complaints and remains spotless.
You have nothing to lose and you will get solid tax advice.
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
See our Home Page for more details Thank you
by steve | Mar 1, 2012 | IRS Tax Debt, IRS Tax Problem
Statute of Limitations on IRS Collections – Has your Statute run out – IRS cannot collect tax – IRS Tax Experts – Former IRS
Yes even the IRS has a certain amount of time to collect the tax.
As a Former IRS Agent, I carefully watched all statutes within my working inventory. Should I ever let a statute expire it could mean my job and a demotion of my Group Manager.
With that said, let’s review the IRS statute of limitations on IRS collection cases.
Generally, IRS has 10 years to collect the money from a taxpayer. That ten years starts when the case is processed through the IRS C.A.D.E. computer.
For an example, if you were to file your tax return on April 15th, it would normally take 6 weeks to post on the IRS computer system. In the given scenario, the date of assessment that IRS would create would be around June 1st.
In the aforementioned example, June 1st begins the running of the ten year statue of limitations. This is called in IRS terms the TC 150 date. You can finds out your statute date by calling the IRS or asking for a transcript.
If a Federal Tax Lien has been filed, you can find that date of assessment right on the tax lien.
There are events, filings and rules that extend the Statute of Limitations.
The filing of a Offer in Compromise.
The filing of an Offer in Compromise will extend the statute of limitations on collection by the time it is pending OIC plus 30 days. The IRS can take four to twelve months to work your offer and sometimes longer.
You sign a voluntary Waiver- Form 900.
If you has volunteered to extend the statute of limitations you did so on a Form 900. The date of the extension is found on the top of the waiver form. You should never be pressured to sign this Form and if asked by the IRS, consult a tax expert.
The filing of a Collection Due Process Appeal.
Timely responding to an IRS Final Notice of Intent to Levy also known as a Collection Due Process hearing ( lumped together ) will extend the time the IRS has to collect while your hearing is pending. It is extended for the time that the case was in Appeals.
Filing of any Bankruptcy.
Bankruptcy extends the statute of limitations on collection by the time you were in bankruptcy plus (6 ) six months. If you filed bankruptcy but did not eliminate all of your tax liabilities, the IRS will have more time to collect the non-discharged taxes from you. Sometimes not all taxes are discharged in the bankruptcy. Consult a tax expert.
Filing for Innocent Spouse Relief.
The collection period for the innocent spouse is suspended from the filing of the request for Innocent Spouse Relief until the 90 day period for petitioning the Tax Court expires. If a Tax Court petition is filed on an IRS denial, time is tolled until the Tax Court decision becomes final, plus 60 days.
The filing of a Taxpayer Assistance Order Form (911).
If you needing a Taxpayer Assistance Order ( TAO ) to stop the IRS in there tracks, the filing of Form 911 will suspend the statute of limitations on collection while your case is pending for review. This is a great IRS stop measure!
Installment agreements. ( defaulted Appeals )
If the IRS refuses or defaults an installment agreement, you have the right to appeal that decision. If you do, the collection time frame is extended during the Appeal.
If you are at the end of your statutory time for IRS to collect, always consult a tax professional.
If you call the IRS they have the right to reactivate your case and return it to the field for enforced collections. Tax Professionals have special telephone numbers to call that will not reactivate your case.
