by Fresh Start Tax | Nov 5, 2012 | Back Taxes, IRS Notice or Letter, IRS Tax Debt, IRS Tax Problem, Tax Help, Tax Settlements
Mr. Sullivan is a tax resolution expert. He is a Former IRS Agent and a Teaching Instructor with the Internal Revenue Service.
His firm Fresh Start Tax LLC 1-866-700-1040 is comprised of Board Certified Tax Attorneys, CPA’s and other Former IRS Agents, Managers and Instructors.
If you want to make sure you qualify for the Current non Collectable Program ( Economic Hardship, CNC ) if you cannot pay the IRS, it is best to check with a true tax professional. This can completely change your life. It will certainly help you for a season in time.
Economic Hardship- Cannot Pay the IRS Back Taxes
As a Former IRS agent I can tell you there is a program within the IRS-IRM that allows taxpayers who cannot pay there tax bills at the present time, the program is called Economic Hardship. It is obvious why the IRS does not publicize the program, everyone in the world would want there case placed in this file.
To qualify for the Program the taxpayer will have to produce a IRS financial statement. You can find those forms on our home page website under IRS Forms.
Depending where your case is in the IRS computer system you will have to provide a Form 433A ( used by local offices and Revenue Officers ) or the 433F which is used by the ASC Units while the taxpayer is still in letter or notice status.
The Financial Statement must be completely filled in and have all relative documents attached to provide support to the fact you cannot pay the bill on back taxes you owe.
It should be noted that these cases are also call Current Non Collectable or CNC as it is known in the business.
This is not a forever thing. It is also critical to know that these cases go in to this status for a season in time. IRS reviews these cases from time to time.
When the IRS determines to put your case in Hardship Status, few persons know how and why these cases come back out to the field or back into the IRS collection system. Having been a former IRS Agent, I had placed hundreds of cases in the currently non collectible status.
These IRS tax cases Hardship, current not Collectable ) come back out to the ASC Unit or the IRS field office because of only three reasons:
1. The closing Revenue Officer working the case places a mandatory follow-up date on the file. Each Revenue Officer is different. They get a feel for the case based on the financial statement and the asset check that was made during the course of the investigation. Sometimes it is a hunch, other times you get a feel that income may increase at a given time. This mandatory follow-up date is strictly up to the reviewing Revenue Officer.
The manager has the last say on the closing code however most of the time it is left up to the discretion of the RO.
2. A certain closing code is placed on the back taxes case. If the Revenue Officer does not mandate a certain follow-up date, a closing code based on AGI is put on the case. For example, let’s say the closing code is 50.
This means is when the taxpayer reaches $50,000 in a AGI (adjusted gross income), the case will trigger back to the field. Once again, each Revenue Officer makes their own decision.
3. The statute is about to expire. Certain cases will trigger because the ten year statute of limitation on these back taxes is about to expire. These back tax cases usually come out 1 year before the 10 year statute. These are usually large dollar cases.Small cases usually do not get much attention.
The only other way a case may come back to the field is because a Congressional inquiry was made.
The IRS Definition of Economic Hardship
A IRS Economic Hardship ( Cannot Pay the IRS ) occurs when a taxpayer is unable to pay reasonable basic living expenses.
The determination of a reasonable amount for basic living expenses will be made by the IRS Commissioner and will vary according to the unique circumstances of the individual taxpayer. Unique circumstances, however, do not include the maintenance of an affluent or luxurious standard of living.
IRS has a National and Regional Tests
IRS will review your 433A or 433F and compare it to the National or Regional Standards. You must fall within the guideline of the established guideline by your case will be considered for Cannot Pay or an Economic Hardship.
What are the National Standards.
National Standards: Food, Clothing and Other Items
National Standards have been established for five necessary expenses:
1.food,
2. housekeeping supplies,
3.apparel and services,
4. personal care products and services,
5.and miscellaneous.
The National Standard for Food, Clothing and Other Items includes an amount for miscellaneous expenses. This miscellaneous allowance is for expenses taxpayers may incur that are not included in any other allowable living expense items, or for any portion of expenses that exceed the Collection Financial Standards and are not allowed under a deviation.
The standards are derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey (CES).
The survey collects information from the Nation’s households and families on their buying habits (expenditures), income and household characteristics.
IRS also has standards for Housing and Utilities Expenses and also for vehicle and operating costs. See our homepage toolbar, IRS forms.
What the IRS has done to help taxpayers with current Hardships
a. Added Flexibility for Missed Payments.
The IRS is allowing more flexibility for individuals with existing Installment Agreements who have difficulty making payments because of a job loss or other financial hardship. Depending on the situation, the IRS may allow a skipped payment or a reduced monthly payment amount. Taxpayers in this situation should contact the IRS.
b. Additional Review for Offers in Compromise on Home Values.
An Offer in Compromise (OIC), an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than full amount owed, may be a viable option for taxpayers experiencing economic difficulties.
However, the equity taxpayers have in real property can be a barrier to an OIC being accepted. With the uncertainty in the housing market, the IRS recognizes that the real-estate valuations used to assess ability to pay are not necessarily accurate. So in instances where the accuracy of local real-estate valuations is in question or other unusual hardships exist, the IRS is creating a new, second review of the information to determine if accepting an offer is appropriate.
c. Prevention of Offer in Compromise Defaults.
Taxpayers who are unable to meet the periodic payment terms of an accepted OIC will be able to contact the IRS office handling the offer for available options to help them avoid default.
d. Postponement of Collection Actions.
IRS employees will have greater authority to suspend collection actions in hardship cases where taxpayers are unable to pay. If an individual has recently encountered a job loss or other financial problem, IRS assistors may be able to suspend collection in some situations without documentation to minimize burden on the taxpayer.
e. Expedited Levy Releases.
The IRS will speed the delivery of levy releases by easing requirements on taxpayers who request expedited levy releases for hardship reasons. Taxpayers seeking expedited releases of levies to an employer or bank should contact the IRS number shown on the notice of levy to discuss available options. When calling, taxpayers requesting a levy release due to hardship should be prepared to provide the IRS with the fax number of the bank or employer processing the levy.
Call us today to see if qualify for the Hardship Program, 1-866-700-1040
Cannot Pay the IRS Back Taxes – You can Ask for a Economic Hardship – Former IRS Teaching Instructor
by Fresh Start Tax | Nov 3, 2012 | IRS Tax Audit, IRS Tax Problem
We are Christian Tax Firm <>< specializing in all IRS and State Tax Matters.
We are staffed with Board Certified Tax Attorneys, CPA’s and Former IRS Agents and Managers all who practice their Christian faith.
Is your Church going through a IRS Tax Audit?
Call our Christian Tax Firm to get a free no cost initial consult 1-866-700-1040.
IRS Church Audit Process
The following is the sequence of the church audit process.
a. If the reasonable belief requirement is met, the IRS must begin an inquiry by providing a church with written notice containing an explanation of its concerns.
What is a reasonable basis per IRS:
The IRS may only initiate a church tax inquiry if the Director, Exempt Organizations Examinations, reasonably believes, based on a written statement of the facts and circumstances, that the organization, church or ministry :
(a) may not qualify for the exemption; or
(b) may not be paying tax on unrelated business or other taxable activity.
This reasonable belief must be based on facts and circumstances and always be recorded in writing. There are no witch hunts.
The IRS can obtain the information supporting a reasonable belief from various sources, including but not limited to:
a. Newspaper or magazine articles or ads,
b. Television and radio reports,
c. Internet web pages,
d. Voters guides created and or distributed by the church,
e. Documents on file with the IRS (e.g. a Form 990-T filed by the church), and
f. Records concerning the church in the possession of third parties or informants or others.
The IRS must derive the facts and circumstances forming the basis for a reasonable belief from information lawfully obtained. The IRS must be clear on their intent.
If this information is obtained from informants, it must not be known to be unreliable.You may question IRS regarding the source of the audit.
Failure of the church to respond to repeated IRS routine requests for information is a factor in determining if there is reasonable cause for commencing a church tax inquiry. Always comply with any request from the IRS.
Any church put on notice should always contact a tax professional.
Call us today, 1-866-700-1040.
b. The church is allowed a reasonable period in which to respond by furnishing a written explanation to alleviate IRS concerns.
c. If the church fails to respond within the required time, or if its response is not sufficient to alleviate IRS concerns, the IRS may, generally within 90 days, issue a second notice, informing the church of the need to examine its books and records.
d. After issuance of a second notice, but before commencement of an examination of its books and records, the church may request a conference with an IRS official to discuss IRS concerns.
The second notice will contain a copy of all documents collected or prepared by the IRS for use in the examination and subject to disclosure under the Freedom of Information Act, as supplemented by IRC section 6103 relating to disclosure and confidentiality of tax return information.
e. Examination of a church’s books and records must be completed within two years from the date of the second notice from the IRS.
If at any time during the inquiry process the church supplies information sufficient to alleviate the concerns of the IRS, the matter will be closed without examination of the church’s books and records.
There are additional safeguards for the protection of churches under Internal Revenue Code section 7611.
For example, the IRS cannot begin a subsequent examination of a church for a five-year period unless the previous examination resulted in a revocation, notice of deficiency of assessment, or a request for a significant change in church operations, including a significant change in accounting practices.
If you have any questions or need professional tax representation call us today to find out more. Blessings <><
IRS Audits, Churches, Ministries, Christian Tax Firm, Attorneys, CPA’s, Former IRS
by Fresh Start Tax | Nov 3, 2012 | California Tax, IRS Representation, IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Offer in Compromise, Tax Settlements
IRS Tax Debt Settlement – Offer in Compromise – Former IRS Offer in Compromise Specialist
Fresh Start Tax – Joe Dimino and Michael D. Sullivan
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627 Costa Mesa, CA 92627 1- 866-700-1040
IRS accepts about 14,000 Offers in Compromise a year. 57,000 are submitted to the IRS.With the new Fresh Start Program instituted by the IRS we can expect many more offers being filed in the future. the program will help many struggling taxpayers.
A IRS Offer is sometimes called a IRS Tax Debt Settlement. As a Former IRS Agent and Teaching instructor with the IRS I use to teach the program to new Revenue Officers. Modesty speaking I am a true expert when it comes to IRS Tax Debt Settlements.
There are many companies that advertise “We can settling your case for pennies on a dollar.” While that statement is very true, I would caution any taxpayer to make sure the company you are dealing with is an experienced and trustworthy tax firm because our market is saturated with scam artists.
Check out BBB ratings and check on the person directly who will be handling your case.
My advice to the public is to have your offer pre-qualified before submitting your Offer in Compromise for a IRS Tax Debt Settlement.
Fresh Start Tax LLC will do just that.
Before we take dollar one, we will tell you whether you are a valid offer candidate before you spend a nickel.
Contact us today and hear the truth. We are A plus rated by the BBB.
What is an Offer in Compromise or a IRS Tax Debt Settlement
An offer in compromise is an agreement between a taxpayer/business 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. For information concerning tax payment options, including installment agreements call us today. 1-866-700-1040.
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. this is known as the RCP.
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, IRA’s, pension plans and other property and assets of the taxpayer.
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 of an Offer is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed. you must have proof that the liability is incorrect.
Second.
An acceptance of an Offer is permitted if there is doubt that the amount owed is collectible. This means that doubt exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third.
An acceptance of an Offer is permitted based on effective tax administration.
An offer in compromise may be accepted based on effective tax administration when there is no doubt 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. These are rare.
How do you calculate the Tax Settlement or the Offer
Calculating the Offer in Compromise
To determine the acceptable minimum offer amount, the IRS will look at the taxpayer’s income and available assets, and compare it to their monthly expenses and other secured debts; however, not all expenses qualify.
For example, non-secured debt, such as credit card debt, will not be taken into account when calculating your offer. The IRS imposes a cap on qualified expenses, such as housing and transportation costs, to limit the amount you can claim, even if your actual expenses are much greater. There is a National Standard IRS embraces.
The value of any assets the taxpayer currently has, such as a home, car, 401K, or checking account, will be automatically calculated into the minimum offer amount. Those taxpayer who have a valuation of assets exceeding their tax liability are not good candidates for an offer in compromise, since the IRS will deem the taxpayer capable of paying the entire liability. If your assets exceed the amount of tax you owe, you are wasting your time filing an offer in compromise.
This does not mean, however, that one should liquidate their assets prior to submitting an offer. The IRS may or will consider these recently sold assets to be dissipated assets which could and will have an adverse effect on the final offer amount.
What is a Dissipated Asset.
Dissipated assets are anything of value that you had and subsequently sold, which could have satisfied your tax liability.
An example.
The sale of a business or car could be a dissipated asset. If the proceeds from the sale were spent on something other than your tax liability, and are no longer available to you, the IRS may add the value of the dissipated assets to your minimum offer amount.Check with us if this is the case.
Dissipated assets and their treatment can be difficult for many taxpayers to understand. Treatment of assets is an important factor when the IRS determines the viability of an offer in compromise. Therefore, one mis-characterized asset, or one that is not accompanied by proper explanation can cause an offer in compromise to be rejected.
Call us today and find out if and how you can qualify for a settlement with the IRS.
Call 1-866-700-1040 for a no cost consultation.
by Fresh Start Tax | Nov 1, 2012 | IRS Tax Problem, Representation, Tax Lawyer, Tax Levy and Wage Garnishments, Tax Relief, Tax Settlements
IRS Levy, IRS Tax Garnishments, Tax Settlements 1-866-700-1040
Stop the worry today. Use of years of IRS experience to settle your tax case.
We offer quick and affordable tax settlement solutions.If you have received a IRS Notice of Federal Tax Levy or Notice of a Tax Tax Levy Garnishment call us today to get immediate IRS tax relief.
1-866-700-1040. Free tax consult.
We are A plus rated by the Better Business Bureau.
On staff are Tax Attorneys, CPA’s and Former IRS agents. We cover all spectrum of IRS and State Tax Representation. We are a IRS and State tax specialty firm and are true experts in our fields. We have over 206 years of total tax experience.
We taught Tax Law at the IRS. We can get results fast, quick and for affordable pricing.
How the Release or Removal of your IRS Tax Levy or IRS Wage Garnishment take place.
IRS sends series of tax notices or letters to each tax entity that owes tax whether it be a business of a individual. All these tax notices or tax letters are sent out systemically.After of series of 3 letters or notices are sent to the taxpayer the IRS Cade 2 commuter system generates a notice of tax levy or wage garnishment.
If the levy was sent to your bank account the bank must freeze your funds for 21 days giving you time to call IRS and get the levy released or removed.
If the Notice of Wage Garnishment was sent to your employer a large portion of your check will be sent to the IRS until the levy is released.The Wage Garnishment will never stop unless you quit the job or work out a tax settlement.
To get the levy released the IRS has different plan options depending on your financial statement.
We will review your 433 A or 433 F, the IRS financial statement and review the best option that fits your lifestyle and work out a IRS tax settlement.
Levies vs. Liens
A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.
You must close your case off of the IRS enforcement computer.
If you do not pay your taxes or make arrangements to settle your debt the IRS may seize and sell any type of real or personal property that you own or have an interest in.
As a Example, the IRS could:
1.Seize and sell property that you hold such as your car, boat, or house,
2. the IRS could levy property that is yours but is held by someone else such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions,
3. Seize your IRA or pension plan,
4. File a Federal Tax Lien.
IRS can only seize usually after these three requirements are met:
1. After the IRS assessed the tax and sent you a Notice and Demand for Payment;
2. If you neglected or refused to pay the tax; and
3. After IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least 30 days before the levy.
Source of Delivery of the Levy or Garnishment to be valid.
IRS must give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.
IRS has the ability to levy or garnish your state tax refund.
Call us today 1-866-700-1040. Hire trust & experience.
by Fresh Start Tax | Oct 31, 2012 | IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Tax Levy and Wage Garnishments
Help with IRS Tax Levy – Levy Relief & Settlement 1-866-700-1040
We can remove or release your tax levy or garnishment and settle your case with the IRS.
Stop your worry today, have former IRS agents and managers who know the system get you immediate tax relief from the IRS Levy.
IRS Tax Levies can be released very quickly and for affordable prices.
Believe it or not, the IRS does not want to levy your wages or seize your bank account. The system called CADE 2 does this automatically. Once the IRS computer system does not recognize a valid contact within the letter or notice period the system systemically issues the Notice of Tax Levy.
By calling us today you will probably have your levy release this week. 1-866-700-1040.
We will secure a power of attorney, make sure the tax liability is correct and work out a settlement plan with the IRS.
Settlement plans includes hardship, payment plans or settling for pennies on a dollar if you qualify.
Before we take any fee for a offer in compromise which is a IRS tax settlement, we will pre-qualify your case to make sure you are a candidate.
Process – Candidate for an Offer in compromise of a IRS Tax Settlement
Submitting your offer in compromise
We can give you step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF).
Forms and Documents
Form 433-A (OIC) (individuals) or 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 Form 656,
Application Fee:
$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:
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.
How did IRS get your Levy information.
It comes from you. You usually give them your own tax levy information. The IRS does little to have to find it.
1. If you have written a check to the IRS, the IRS codes that information into the C.A.D.E. 2 computer system for future IRS Audit, Collection or Criminal use.
2. If you have called the IRS in the past couple of years, the IRS may have asked for the information over the phone.
3. If the IRS has secured a financial statement in the past, the information usually stays in the system for 6 – 7 years and becomes a part of your file for the remainder of the statute.
4. If you are divorced or separated, many times that information may come from your spouse who cannot wait to give IRS the information. Yes, spouse revenge.
5. The IRS can get information from third parties. You never know who may give them information about you.
6. Most of the Tax Levy or Garnishment information comes from your tax return from prior tax years. The IRS simply looks at your W-2’s and your 1099’s. This is the best source of IRS Levies. I would say 95% of all tax levies or tax garnishments are generated from this tax source.
7. The IRS can also get Tax Levy/Garnishment information from your credit report.
This provides a wealth of information and a field day for the IRS. If your case goes to the field for a Revenue Officer to work, your credit report becomes a harvest for the Agent.
Call us today for IRS tax help for wage garnishments and tax levies. 1-866-700-1040.
Help with IRS Tax Levy – Levy Relief & Settlement – Costa Mesa, Long Beach, Anaheim, Glendale, Irvine, Newport, Huntington
by Fresh Start Tax | Oct 30, 2012 | Back Taxes, California Tax, IRS Payment Plans, IRS Representation, IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Tax Help
Back Tax Relief – Late, Unfiled, Past Due Tax Returns – Hire Former IRS Agents 1-866-700-1040
We are a professional tax firm with over 205 years of professional tax experience. We have over 60 years of direct working experience with the IRS in the local, district and regional offices of the IRS.
We taught Tax Law at the IRS.
We know the system so stop the worry NOW!
We can get you immediate tax relief, so stop your worry today and contact us for a no cost professional tax consult. 1-866-700-1040.
If you have back, late, unfiled or past due tax returns with or without records we can file your back tax returns. We will also settle your case with the Internal Revenue Service.
We are friendly, local and affordable.
Fresh Start Tax LLC
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
If you have a back tax issue it is best to resolve the issues before you force the hand of IRS to take enforcement action. Believe it or not the IRS does not want to levy or lien.
Because of a lack of response from the taxpayer, the IRS system and the CADE 2 computer automatically generates federal tax liens and federal tax levies.
We can stop the IRS usually with on telephone call from an experienced tax representative.
What IRS will request.
IRS will request all your tax returns to be filed. They will usually give us a 30 day window to prepare all tax returns. During that process the IRS will usually suspend all collection and enforcement action on your case. Liens and levies will usually not be filed.
A Decision to Make
If, on the unfiled tax returns you owe tax (married filing jointly), make a decision whether or not to include both husband and wife on the liability. Sometimes it is better to only have one party responsible for the tax. We will talk over this situation with both spouses so the IRS cannot tie up joint assets.
Payment Agreements to the IRS
If you owe less than $50,000, you can get a streamline agreement automatically. Just call us today, 1-866-700-1040. We will not require a financial statement and can usually close your case out within the week.
Beware of Pension Plans or IRA’s
If you have a pension, 401K or IRA, the IRS can or will ask if you can liquidate it to pay the taxes. Find out beforehand if you can liquidate.Find out the consequences of doing so. If you owe under $50,000 this will not apply to you.
Can you settle your case?
Find out whether you qualify for an Offer in Compromise. An OIC can suspend IRS collection action. IRS will look at your assets and your income to make a determination. If you complete a 433OIC we will review your case and tell your whether you qualify for a Offer in Compromise. If IRS accepts the Offer your tax lien will be released.
Be current with your taxes.
Make sure you are current for withholding or estimated payments in the current year of the tax problem. IRS will verify that you have enough withholding being taken out of your check so you do not incur more taxes. You can adjust your W-2 or your 1040 ES payments.
Four million taxpayers pay their taxes using an installment agreement. Find out the criteria for a payment agreement before you call the IRS. Do not call the IRS without first having a plan.
Call us today and get some of the best tax professionals in the business for affordable prices, 1-866-700-1040.
Back Tax Relief – Late, Unfiled, Past Due Tax Returns – Costa Mesa, Anaheim, Newport, Glendale, Orange, Long Beach, Fullerton, Luguna – IRS Experts
