by admin | Mar 28, 2012 | Back Taxes, Income Tax Preparation, IRS Tax Problem, Representation, Tax Help
This comes as a great surprise to many expecting their IRS tax refund. The IRS sends a notice telling you they have used their right to offset to pay old debts such as State Tax Debts, Child Support or even Student loans.
If this happens to you I would suggest calling us at Fresh Start Tax, 1-866-700-1040 to permanently resolve your IRS tax matter and get tax relief.
Most taxpayers in this situation may qualify for an offer in compromise or a tax debt settlement. By calling our office we can find out if you qualify.
Here are the rules and regs regarding tax refunds that may be applied to offset certain debts
The Department of Treasury’s Financial Management Service, which issues IRS tax refunds, can use part or all of your federal tax refund to satisfy certain unpaid debts.
Facts you what to know about tax refund offsets:
1. If you owe federal or state income taxes, your refund will be offset to pay those taxes first. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will apply as much of your refund as is needed to pay off the debt and then issue any remaining refund to you if a tax refund is applicable.
2. You will receive a notice from the IRS if an offset occur. The offset will occur each and every year to the problem is resolved.
The tax notice will include the original refund amount, your offset amount, the agency receiving the payment and its contact information. If the information about the exist debt is incorrect, we suggest you contact them directly to resolve the problem.
3. If you believe you do not owe the debt or you are disputing the amount taken from your refund, you should contact the agency shown on the notice, not the IRS.
4. If you filed a joint return and you are not responsible for the debt, but you are entitled to a portion of the refund, you may request your portion of the refund by filing IRS Form 8379, Injured Spouse Allocation.
You should attach IRS tax form 8379 to your original Form 1040, Form 1040A, or Form 1040EZ or file it by itself after you are notified of an offset. Form 8379 can be downloaded from the IRS website at www.irs.gov.
5. You can file Form 8379 electronically. If you file a paper tax return you can include Form 8379 with your return, write “INJURED SPOUSE” at the top left of the Form 1040, 1040A or 1040EZ. IRS will process your allocation request before an offset occurs.
6. If you are filing Form 8379 by itself, it must show both spouses’ Social Security numbers in the same order as they appeared on your income tax return. You, the “injured” spouse, must sign the form.
You should not attach the previously filed Form 1040 to the Form 8379.
Send the Form 8379 to the IRS Service Center where you filed your original return only so the documentation may be matched.
7. The IRS will compute the injured spouse’s share of the joint return. Contact the IRS only if your original refund amount shown on the FMS offset notice differs from the refund amount shown on your tax return.
8. Follow the instructions on Form 8379 carefully and be sure to attach the required forms to avoid delays.
If you are looking for quality tax relief from a professional tax firm, call Fresh Start Tax LLC today.
by admin | Mar 27, 2012 | IRS Penalties, IRS Tax Advice, IRS Tax Problem, Tax Help
IRS Penalty Tax Relief by Former IRS Agents and Managers – Call us today for details an immediate IRS tax representation.
Get the tax help and get rid of your tax problem today.
Tax Relief to Farmers Affected by MF Global Bankruptcy
The Internal Revenue Service announced today that it will provide penalty relief to farmers who incur estimated tax penalties because they did not timely receive Forms 1099 from MF Global or its court appointed trustee, and were unable to file their 2011 calendar year tax return by March 1, 2012.
The IRS also today provided the affected farmers with instructions on how to apply for this penalty relief. you can call our offices for details and representation requirements.
The Farming Industry
Usually farmers can avoid an estimated tax penalty if they file their returns and pay the full amount of tax shown on their return by March 1, 2012.
An individual is a farmer for these purposes if two-thirds of the individual’s total gross income for the taxable year or the preceding taxable year is from farming. This rule and the relief being provided also apply for fishermen.
MF Global filed for bankruptcy on Oct. 31, 2011, after revealing that hundreds of millions of dollars in customer money was missing.
While the court appointed trustees are working to untangle MF Global’s financial records, the IRS understands that the magnitude of the records and the associated untangling delayed the issuance of Forms 1099 in a timely manner.
Many former customers of MF Global did not receive their Forms 1099 by March 1, 2012 and the penalties are racking up.
While the IRS has been advised that former customers have recently received their 1099s, the delay in mailing the Forms 1099 may have affected the ability of many farmers to file their 2011 calendar year return by March 1, 2012.
If a taxpayer has an underpayment of estimated tax, all or part of the penalty for the underpayment may be waived if the IRS determines that the underpayment was due to a casualty, disaster or other unusual circumstance and it would be inequitable to impose the penalty.
To request a waiver of the estimated tax penalty, complete Form 2210-F, Underpayment of Estimated Tax by Farmers and Fisherman.
As stated in the instructions to Form 2210-F, a short statement should be attached to the form stating that you received a late 1099 from MF Global. At the top of your Form 2210-F, write “MF Global”. Taxpayers should be aware that the Form 2210-F and accompanying Form 1040 cannot be submitted electronically. In the case of farmers who have filed their tax returns and an estimated tax penalty is assessed, please contact the IRS, identify this relief and the penalty will be abated.
While this situation could possibly racking up thousands of dollars in penalties, let us get you tax relief today.
Call Fresh Start Tax, 1-866-700-1040. Speak directly to a tax expert.
We offer a full range of IRS tax representation services.
by admin | Mar 19, 2012 | IRS Tax Advice, IRS Tax Problem, Tax Help, Tax News, Tax Settlements, Uncategorized
Tax Masters Bankruptcy – Help for Former Clients – 1-866-700-1040
Get real professional tax help or tax resolution from a “A” Rated Tax Firm with over 205 years of professional tax experience and over 60 years with the IRS in the local, district and regional offices of the IRS.
So what is the real story about Tax Masters – Deception, False Advertising, preying of the needs of false hope.
We see it so many times. I am the co-owner and founder of Fresh Start Tax L.L.C. About one half of all our incoming calls are from from taxpayers who have been ripped off by other tax firms claiming impossible of unachievable results.
I see it so many times it is sickening. Taxpayers have been ripped off for thousands of dollars from salespeople claiming to be IRS specialists. In reality these people are no more than hucksters or ripped off artists. Many of these taxpayers have lost everything including their savings and still owe the IRS a boat load of money.
Many of these taxpayers will have a bank levy, wage levy or wage garnishment placed on their wages or bank accounts because of the false and deceptive business practices of the likes of Tax Masters, J.K. Harris and the Tax Lady Roni Deutsche.
The claims Tax Masters were making were just to good to be true but desperate people bought into to this fraudulent advertising practice on settling for pennies on a dollar. While pennies on a dollars can happen you must have your case evaluated to even thinking about a tax debt settlement. There are specific rules for tax settlement. I should know, I was a former IRS Agents and Offer in Compromise specialist.
The Tax Masters television commercials featured CEO Patrick Cox, who claims his company’s staff of former IRS agents and tax professionals have helped countless thousands of taxpayers just like you.
The Tax Masters ad blitz has been a driving force in the company’s soaring corporate revenues. The company, which went public brought in $45.7 million in 2010, a three-fold increase in two years, according to filings with the Securities and Exchange Commission. This was all due to the voluminous advertising budget filled with false hope
Part of the Problem – On the Tax Masters website they were looking for salespeople and not true tax practitioners. There website posts included this verbiage, “Are you a talented closer ready to move into the next income bracket?” call us.
“Previous tax knowledge is not required,” stated the employment ad, which Tax Masters says has since been modified.
At the heart of the problem, says Attorney General Swanson, is a requirement that customers pay an upfront fee ranging between $2000 and $8000. for false promises of salespeople.
If you are looking for a professional tax firm to help with your IRS problem look for the following:
1. The BBB rating of the company
2. Talk directly to the person that will be working your case.
3. Ask for the credentials of the person working your case.
4. Find out how long the company has been in business
5. Find out how many IRS agents they have on staff.
If you are looking for a free tax consultation call us today and hear the truth. 1-866-700-1040
by admin | Mar 19, 2012 | IRS Tax Problem, Tax Help, Uncategorized
TAX MASTERS – Get Free Tax Help – Fresh Start Tax – 1-866-700-1040 – Call us today!
A Rated by the BBB.
Former IRS Agents, Managers and Former Instructors can give you immediate tax relief and stop the IRS today.
We will offer huge savings on tax representation fees if you can prove you are a former Tax Masters client.
Since the Bankruptcy of Tax Masters former clients are now scrambling for immediate tax relief. These former clients have paid thousands of dollars to Tax Masters and no longer have tax representation. Basically they have been ripped off.
Tax Masters spent their money on their advertising budget and less on qualified personnel.
After the demise of Roni Deutsche and J.K.Harris, Fresh Start Tax LLC represented many former clients and finished their tax resolution cases with superior results. Check our BBB rating.
Fresh Start Tax LLC has already received some of the former clients of Tax Masters and have offered them discounts to finish up there cases. Some of the former clients have been left in the cold with no idea where their tax case stands. Over 5000 clients have been left stranded.
As a former IRS agent I can tell you that the IRS does not care whether the company representing you went out of business or not, the mission of the IRS is to close cases no matter how.
IRS will continue to levy and seize no matter what.
As former IRS agents we can stop the IRS, find out where your case is and actually close your case. We will also reduce our fees for former Tax Masters clients.
Call us today for a free tax consult.
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 4, 2012 | Income Tax Preparation, IRS Tax Problem
There is no hotter topic this tax season. The mortgage debt forgiveness issue is the bulk of our calls and tax questions this tax season. There is a lot on the line. With that said here are the top tax tips regarding mortgage debt forgiveness.
Internal Revenue Service and the Mortgage Debt Forgiveness
Canceled debt is normally taxable to you, but there are exceptions to the rules.
One of those exceptions is available to homeowners whose mortgage debt is partly or entirely forgiven during tax years 2007 through 2012.
1. Normally, debt forgiveness results in taxable income.
However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.
2. The limit for mortgage forgiveness is $1 million for a married person filing a separate return.
3. You can also exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.
4. For a taxpayers to qualify the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.
5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.
6. Proceeds of refinanced debt used for other purposes for example, to pay off credit card debt do not qualify for the exclusion. Check the list to make sure your debt qualifies or call us today.
7. If you can qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.
8. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief provision.
In some cases, however, other tax relief provisions such as insolvency may be applicable. IRS Form 982 provides more details about these provisions.
9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.
10. Examine the Form 1099-C carefully.
Notify the lender immediately if any of the information shown is incorrect.
You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.
To make sure your debt qualifies for this tax relief, call us today.
by steve | Mar 2, 2012 | IRS Penalties, IRS Tax Problem
IRS Penalties – Get Rid of them – Receive Bad Advice – IRS will remove Penalties – Former IRS – Tax Experts
The following deals with the abatement of IRS penalties and interest due to receiving bad advice.
There are several methods of getting rid of IRS penalties, call us today to find out more.
If you have been a victim of bad advice, this will help you rid yourself of IRS penalties
From the IRS IRM 20.1.1.3.3.4 (12-11-2009)
Bad Tax Advice
This section discusses the three basic types of advice that may qualify for statutory, regulatory, or administrative penalty relief from the Internal Revenue Service:
1. Written advice provided by IRS,
2. Oral advice provided by IRS,
3. Advice provided by a tax professional,
Information the IRS will consider when evaluating your request for abatement or non-assertion of a penalty due to reliance on advice includes, but is not limited for the following reasons:
1. Was the advice in response to a specific request and was the advice received related to the facts contained in that request? Can that be proved?
2. Did the taxpayer reasonably rely on the advice?
3. Did you pay for that advice?
4. Was the person a professional tax preparer?
5. Is this a one time event?
In the following instances address some situations where penalty relief may not be appropriate even though the taxpayer relied on written advice from the IRS regarding an item on a filed return:
1. The taxpayer did not reasonably rely on the advice regarding an item included on a return if the advice was received after the date the return was filed,
2. A taxpayer may be considered to have reasonably relied on advice received after the return was filed if they then filed an amended return that conformed with such written advice.
3. A taxpayer may not be considered to have reasonably relied on written advice unrelated to an item included on a return, such as advice on the payment of estimated taxes, if the advice is received after the estimated tax payment was due.
4. Did the taxpayer, or their authorized representative, provide the IRS or the tax professional with adequate and accurate information? The taxpayer is entitled to penalty relief for the period during which they relied on the advice.
The period continues until the taxpayer is placed on notice that the advice is no longer correct or no longer represents the Service’s position.
5. The taxpayer is placed on notice as the result of any of the following events that present a contrary position and occur after the issuance of the written advice:
6. Written correspondence from the IRS that its advice is no longer correct or no longer represents the IRS’s position,
7. Enactment of tax legislation or ratification of a tax treaty,
8. A U.S. Supreme Court decision,
9. The issuance of temporary or final regulations,
10. The publication of a IRS revenue ruling, IRS revenue procedure, or other statement in the Internal Revenue Bulletin.
Tax Form 843, Claim for Refund and Request for Abatement, is required to be filed to request penalty abatement based on erroneous written advice by the IRS.
However, if Form 843 is not filed and the information provided demonstrates that abatement of the penalty is warranted, the penalty should be abated, whether or not a Form 843 is provided.
The information required to be provided includes:
1. The taxpayer’s written request for advice,
2. The erroneous written advice furnished by the Service to the taxpayer and relied on by the taxpayer, and
3. The report (if any) of tax adjustments that identifies the penalty or addition to tax and the item relating to the erroneous written advice.
Getting penalties and interest abated is a specialty. As Former IRS agents we know the exact requirements to give these cases there very best shot.
These cases require documentation and a great deal of expertise.
