by steve | Mar 2, 2012 | IRS Tax Advice, IRS Tax Problem
If you are a Adoptive Parent you may find these IRS tax tips very helpful.
We are former IRS agents that can help and assist you in IRS tax filing and tax representation.
These tax tips are for our clients of Fresh Start Tax LLC.
Tax Tips for Adoptive Parents
If you have paid expenses to adopt an eligible child in 2011, you may be eligible to claim a tax credit of up to $13,360. Not a bad tax credit.
The expanded adoption credit.
The Affordable Care Act increased the amount of the credit and made it refundable, which means you can get the credit as a tax refund even after your tax liability has been reduced to zero. This can offer you a large tax refund.
For tax year 2011, you must file a paper tax return, Form 8839, Qualified Adoption Expenses, and attach documents supporting the adoption.
Taxpayers that are claiming the tax credit will still be able to use IRS Free File or other software to prepare their returns, but the returns must be printed and mailed to the IRS, along with all required documentation.
Documents can include a final adoption decree, placement agreement from an authorized agency, court documents or the State’s determination for special needs children. The documentation is an absolute must.
The Qualified Adoption expenses are reasonable and necessary expenses directly related to the legal adoption of the child. These expenses may include but are not limited adoption fees, court costs, attorney fees and necessary travel expenses.
The eligible child must be under 18 years old, or physically or mentally incapable of caring for himself or herself. Make sure your adoption qualifies for the tax credit
If your modified adjusted gross income is more than $185,210, your credit is reduced. If your modified AGI is $225,210 or more, you cannot take the credit.
Should you have any question regarding this credit or need professional tax prep call to hear more today.
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.
by steve | Feb 29, 2012 | IRS Tax Problem, Owe Payroll Taxes
IRS Trust Fund Penalty – IRS has the option NOT to ASSESS – Do not be bullied by the IRS, fight back by using the IRS IRM.
Most of the time a Revenue Officer will try to bully taxpayers and their representatives around by telling them they are going to set up the trust fund recovery penalty on a corporation in business and making there payment via a installment agreements.
The truth of the matter is, most of the Revenue Officers are not telling you the whole truth. There is a tax provision that the IRS can recommend. The service can recommend the non-assertion of the trust fund recovery penalty. You will never hear this from the local IRS. The local IRS only acts in there best interest.
Under IRS IRM 5.14.7:
http://www.irs.gov/irm/part5/irm_05-014-007.html
“In general, do not request assessment of Trust Fund Recovery Penalties if business taxpayers meet the terms of installment agreements.
If you are currently working with the IRS insist on the aforementioned manual section.
However, the trust fund recovery penalty must be considered on the potentially responsible persons of the business entity based on the following procedures.
1. If the agreement will not fully pay all balances due at least a year before the earliest Assessment Statute Expiration Date (ASED).
If this is the case the IRS Revenue Office will have to;
1. Assemble all documentation for completion of the penalty to the point of proposing assessment;
2. Complete interviews for all potentially responsible persons, and any other interviews necessary to determine responsibility and willfulness;
3. Secure 433A (Collection Information Statement) from all potentially responsible persons. Conduct financial analysis to determine whether the penalty, if assessed would be collectible;
4.Request signature of Form 2750, “Waiver Extending Statutory Period for Assessment of Trust Fund Recovery Penalty” from all potentially responsible officers. See IRM 5.14.7.4.1(1) through (4); and
5. If a potentially responsible officer refuses to extend the ASED, and the trust fund recovery penalty is determined collectible, complete and recommend assessment of the TFRP for that responsible person.
6. If potentially responsible persons have the ability to pay from current assets or income, request payments be made to reduce the trust fund portion of the liability. If they have the ability to make a significant payment or payments on the trust fund portion of liabilities, but do not make such payments (or do not make plans for payment from personal assets), consider recommending assessment of the TFRPs. If TFRPs are assessed on these cases, lien determinations should be made and, if appropriate, liens should be filed, and in most cases no other collection action should be taken during installment agreements.
However, if after assessing the TFRP the responsible person still does not make plans for payment from personal assets, other collection action may be taken. Before taking collection action against the responsible person, document the ICS history on why the action is being taken (since the corporate or LLC entity is in an IA) and group manager concurrence must be secured before such action commences.
Exception to the rule;
If taxpayers are currently “repeaters” , the trust fund recovery penalty normally will be assessed. (See IRM 5.14.7.2(1)(c).)
If you are currently working with the IRS insist on the aforementioned manual section.
by steve | Feb 21, 2012 | IRS Tax Problem, Representation
IRS – Tax Attorney / Tax Lawyer
At Fresh Start Tax L.L.C. we have on staff Board Certified Tax Attorneys, Certified Public Accountants, Enrolled Agents, Former IRS Agents, Managers and Instructors including a Former IRS Appeals Agent of 35 years with the IRS.
We have 205 years of total IRS tax experience and over 60 years of direct work experience at the local, district and regional offices of the Internal Revenue Service.
We also taught Tax Law at the Internal Revenue Service.
IRS tax problems and issues can mean a very stressful time for any taxpayer. An IRS Tax Attorney IRS Tax Lawyer, CPA or Enrolled Agent (EA) Agent can help you through any tax problem,help lower your tax debt and help settle any IRS tax debt you may currently have. The IRS is the largest and most powerful collection agency in the world and it takes an experienced and knowledgeable tax representative to help you in choosing the correct tax options. At Fresh Start tax LLC we have many years of experience in dealing with IRS issues and all other IRS tax problems in the audit and the collection area.
Fresh Start Tax LLC offers a team approach and each case worked by Fresh Start Tax has two assigned tax professionals working your case.
Getting the most out of your money – Choosing the right tax representative
There are three general levels of representation before the Internal Revenue Service.
1. Tax Attorney / Tax Lawyer
2 .Certified Public Accountants and
3. Enrolled Agents.
Each can represent you before the IRS and all are licensed to represent your very best interest. It is important to find out how the same result can be done for the lower cost. All can be good choices.
As a Former IRS Agent of 10 years, many tax representatives came into the IRS office I was assigned to. There were huge differences among the types of tax representatives. The ones that charged the most did not necessarily know what they were doing. IRS experience is the key.
As a general rule, pick the representative who worked at the IRS. A person who worked at the IRS know all the tricks, techniques, and procedures to make your case go easily through the system.
Each particular representative brings different aspects of a tax specialty to the table and before a taxpayer goes to hire a tax professional it is best to know how to get the most bang for your buck.
You do not want to overpay fees if you do not need to. Many times it is not necessary to hire tax attorneys or tax lawyers. Generally bills from tax attorneys, tax lawyers are between $2-400 dollars an hour and their fees are overkill. Many have little of no IRS experience. If you have an IRS problem it is always best to hire a Former IRS employee because they have the knowledge of tax procedures, settlement guidelines and audit techniques. In most cases CPA’s and Enrolled Agents are your best bet an all IRS administrative matters.
IRS Tax Attorney /Tax Lawyer
Generally taxpayers want to hire tax attorneys / tax lawyers if there are criminal or court actions that will be taking place. Tax Attorneys / Tax Lawyers are trained to interpret the law and codes and become your advocate in tax court or district court.Tax Attorneys /Tax Lawyers also keep up with the ever changing rules, regulations and codes that govern our tax system. Tax Attorneys also give you the advantage of having an attorney client privilege in all matters. It really becomes helpful in all criminal tax matters. If you receive a letter from criminal investigation your only option should be a tax attorney or tax lawyer. You want to make sure that Tax Attorney or Tax Lawyer has IRS experience and has worked several hundred cases before IRS and D.O.J. Tax Attorneys are the only place to go on any Offshore Account situations.
Certified Public Accountants
Hiring a Certified Public Accountant is extremely important when dealing with complicated tax issues on individual, partnership or corporate tax issues. With the tax codes changing every year it is always best to hiring true tax professionals in dealing with the accounting and tax filing of tax returns. Certified Public Accountants are generally used in tax return preparation and tax defense of a tax return under tax audit. it is always best to make sure they have years of tax experience under their belt in tax preparation. You can retained Accountant/client privilege on all civil matters.
Enrolled Agents
An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. They must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients.
by steve | Feb 6, 2012 | IRS Tax Problem, Representation
We are a specialty tax firm specifically equipped for IRS Tax Representation. We are comprised of:
1. Board Certified Tax Attorneys / IRS Tax Lawyers,
2. Certified Public Accountants,
3. Former IRS Managers / Agents,
4. Enrolled Agents,
5. Former IRS Employees
We have a combined 205 years of professional tax experience and over 60 years of direct IRS experience in the local South Florida district and regional offices of the Internal Revenue Service.
If you are dealing with the IRS there are certain internal procedures, policies and internal manuals that the public and other practitioners are completely unaware of. Because of our 60 years of IRS experience we know all of these internal procedures and settlement policies.
Many of these procedures deal with IRS tax settlements, IRS audit procedures, IRS levies and liens. Because of vast amount of tax direct tax experience with the IRS we can completely and permanently resolve these issues.
How to chose a tax firm for IRS Tax Representation.
Before choosing any professional tax firm check out the FIRM experience on their website. Do not be fooled by website advertisement. Make an appointment and have a face to face meeting with the tax professional,
Make sure you can speak directly to the person that will be working your case,
How long has the firm been in practice,
Lastly, check the BBB rating of the tax firm.
by steve | Nov 18, 2011 | IRS Tax Problem, Tax Help
Fresh Start Tax L.L.C. A Professional Tax Firm 1-866-700-1040 “A” Rated by the Better Business Bureau Since 1982
We are staffed with Board Certified Tax Attorneys, CPA’s and Former IRS Agents and Managers.
If you have received a IRS Certified Letter or a IRS Tax Notice it is in your very best interest to respond to the correspondence immediately . Do not let the time elapse where you give IRS no choice but to take enforced collection procedures. They will follow up on there letters, they always do.
The IRS certified tax notices are your very last chance before the IRS is ready to make a move that will hurt. IRS does not want to take enforcement action but by not responding to these notices IRS is left with no choice but to follow up. The follow up will hurt you financial. Usually IRS will file a federal tax lien or send out a notice of levy to your bank or garnish your wages.
If you call us today, 1-866-700-1040 we can stop the IRS and work out some type of tax settlement. There are several tax options available to you and by calling us you will find an option that is just right for you. Take charge of IRS Certified Letters or IRS Notices Today.
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
How we work and settle your Certified mail or IRS Tax Notice:
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.
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 refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-A (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 Tax Settlement Agreements can be in different forms
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. IRS Offer in Compromise. There are three types of OIC
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration / Exceptional Circumstances – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
See our home page for more details about Fresh Start Tax L.L.C. Thank You
