by Fresh Start Tax | Oct 30, 2012 | IRS Representation, IRS Tax Audit, IRS Tax Problem, Representation, Sales Tax, Tax Help
IRS Tax Audit – IRS Representation Help – IRS & State Tax Representation
Have Former IRS Agents and Managers Represent you for an IRS Tax Audit
Hire True Tax Professional, stop the worry! We can save you money and completely resolve your IRS issue.
We were Former IRS Audit Agents/Managers and know the procedures and policies. We can prevent IRS to wreck havoc in your life. 1-866-700-1040.
Do not be fooled by other companies. Call us and speak directly to Former IRS Agents, Managers and Instructors who have over 60 years working directly for the IRS.
The odds of you getting audited by the IRS are about 1%.
IRS Audits 1.4 million tax returns each year. Rate of corporate returns being audited are far greater sometimes up to 10%.
The more money you make the greater likelihood your tax return will be audited.
If you need professional tax help to represent you on a individual or business tax audit call us today for the finest available Federal or State tax representation.
We are the true IRS and State tax experts. We are comprised of Board Certified Tax Attorneys, CPA’s, Former IRS Agents & Managers and Enrolled Agents.
You can met with us directly, contact us by telephone of Skype.
Fresh Start Tax – Joe Dimino
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
IRS Tax or State Sales Tax Audits
Both government agencies can audit your tax return for a variety of reasons. As a general rule, the computer has selected your tax return for a tax audit.
The DIF Score, the main reason for tax audits.
Each tax return is issued a DIF Score (Discriminatory Index Function). According to the IRS and Former IRS agents who worked in the tax audit section, a DIF Score “is a mathematical technique used to score income tax returns for examination potential.
This technique establishes the National Average Guidelines.
If if your DIF score for your tax return is above the national average, then the risk of an audit escalates. The highest scoring tax returns are then forwarded to an IRS Examiner/ Agent for further review. All returns are manually screened.
So what triggers a high DIF Score?
Falling out of the National Average Guidelines in the areas of Charitable Contributions, Casualty Losses, Home Office, and Travel & Entertainment, excessive deductions and taking to many unauthorized tax credits will affect the tax return’s DIF Score.
How DIF Actually Works
To arrive at the DIF score for each tax return, the IRS computer identifies returns by assigning weights, algorithms and certain basic tax return characteristics.
These weights are added together to obtain a systemic composite score for all tax returns. That score is used to rank all returns into numerical sequence.
The highest scores are then manually reviewed by IRS Agents at the Service Centers to determine the merit and worthiness of a Tax Audit.
One Caution
You want to avoid IRS picking up multiple years during your tax audit. There are ways to prevent this action.
Call us for more details. 1-866-700-1040.
by Fresh Start Tax | Oct 30, 2012 | IRS Tax Problem, Payroll Tax Audits, Trust Fund Tax / Payroll Taxes
IRS Trust Fund Help – Trust Fund Penalties & LLC’s – Former IRS
If you need Trust Fund Help, call us today 1-866-700-1040.
Being Former IRS Agents many tax professionals call us with different tax related questions when it comes to certain issues with the IRS of a technical nature.
With IRS being very aggressive with payroll taxes and trust fund tax. IRS can hold those responsible for paying the payroll taxes responsible for the trust fund penalty or the payroll tax penalty. Those responsible parties will have to pay the withholding and one – half of the social security back to the IRS and will do so as part of an individual liability.
Definition of a Responsible Person
A “responsible person” is one who has the duty to perform or the power to direct the act of collecting, accounting for, or paying over trust fund taxes.
When evaluating responsibility, consider the Supreme Court decision in Slodov v. United States, 436 U.S. 238, 78-1, USTC 9447 (1978).
IRS Trust Fund Establishing Responsibility.
Most trust fund recovery penalty cases involve officers of corporations. However, a responsible person may be one or more of the following:
a. an officer or employee of a corporation
b.a member or employee of a partnership
c.a corporate director or shareholder
d.a related controlling corporation
e. a lender, a surety, or any other person with sufficient control over funds to direct disbursement of the funds, or
f. in some cases, a person assuming control after accrual of the liability.
In each situation, determine who had a duty to see that taxes were withheld, collected, or paid over to the government at the specific time the failure occurred. There can be more than one responsible person.
How a LLC to the IRS standard
The LLC makes the election on how it is to be treated for Federal Income purposes on the Form 8832. If no election is made for a single-member LLC it is defaulted as a disregarded entity.
The Form 2553 is used by a corporation to make the “S” election.
An owner of a disregarded single member LLC for the purposes of the employment taxes will be liable for the employment taxes only to the extent of IRC 6672.
A Single-Member LLC’s , Employment Taxes and the IRS
A “single-member” Limited Liability Company (LLC) will not always protect you from being personally liable for un-paid employment taxes.
A “single-member” LLC is an LLC that is owned 100% by a single owner/member and is referred to as a single-member LLC. Based upon the “check-the-box” regulations for classification of entities, a single-member LLC can be treated as a disregarded entity whereby the owner, rather than the LLC, is treated as the taxpayer.
Under the check-the-box rules, a single member LLC automatically will be treated as as a “disregarded entity” unless an election is made to treat the LLC as a corporation.
To the surprise of many single-member LLC owners who have not elected to be treated as corporations, the IRS has been able to disregard the state-sanctioned liability protections of a single-member LLC and go after the individual owner’s personal assets for the employment taxes.
The IRS announced in Notice 99-6 that for a disregarded entity such as a single-member LLC, the owner of the entity retains the ultimate responsibility for the employment tax liabilities with respect to the employees of the disregarded entity.
Thus, if the LLC does not pay the payroll taxes, the IRS will proceed against the owner of the LLC. Even if the single-member LLC files for bankruptcy, the IRS can collect from the owner of the of the single-member LLC.
The liability for employment taxes is a greater amount than the Trust Fund Recovery Liability under IRC section 6672. The Trust Fund Recovery Liability is for the employee’s FICA tax withheld and the income tax withhold.
As an owner of a single-member LLC, the liability is for Trust Fund Taxes plus the employer’s FICA taxes and the unemployment taxes.
The good news is that per amended Treasury Regulations 1.34-1, 1.1361-4, 1.1361-6 and 301.7701-2 that became effective January 1, 2009; the owner of a single-member LLC will not be held liable for the employment taxes of the LLC for wages paid after January 1, 2009.
Still, the owner of the single-member LLC will be held liable for the Trust Fund Recovery Liability under section 6672 for those wages paid after January 1, 2009.
The bad news is that any unpaid payroll taxes owed for wages paid before January 1, 2009 are still the responsibility of the owner of the single-member LLC. The IRS will go after his personal assets for the unpaid employment taxes.
Trust Fund Help, Trust Fund Penalties & LLC’s , Former IRS, Payroll Tax Penalty
by Fresh Start Tax | Oct 30, 2012 | IRS Tax Problem, Offer in Compromise, Tax Lien, Tax Problem Help, Tax Settlements
Do you need to get a Federal Tax Lien Released or Removed?
There are different ways to get this done and get IRS tax relief.
Fresh Start Tax is comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents.
With over 205 years of professional tax experience and over 60 years with the IRS we can help resolve any tax problem you have.
Free Consult. 1-866-700-1040.
It is of utmost importance to avoid the federal tax lien at all costs. Many times if you contact IRS while you are in notice status it is possible to avoid the filing of the federal lien. You should call us for more details.
Settling with the IRS will remove the Federal Tax Lien.
When a taxpayer submits and the IRS approves a Offer in Compromise, the IRS will remove the Federal tax Lien for pennies on a dollar. However you must qualify for an Offer in Compromise to settle with the IRS. You can call us today and we can see if you are a candidate for a IRS tax settlement. On staff of Fresh Start Tax LLC is a former IRS agent who was a Offer in Compromise specialist.
New IRS Tax Law helps those having IRS Tax Liens.
Tax Lien Thresholds
The IRS is significantly increase the dollar thresholds when federal tax liens are filed.
The new dollar amount is in keeping with cost of living changes since the number was last revised. Federal Tax liens are automatically filed at certain dollar levels for people or businesses with tax balances.
A federal tax lien ( FTL ) gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt.
Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money. The filing of the Tax Lien will destroy your credit rating.
A federal lien informs the public that the U.S. government specially the IRS has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter.
Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Federal Tax Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government and the taxpayer as well.
In order to speed the withdrawal process, the IRS has now streamlined its internal procedures to allow collection personnel to withdraw the liens.
Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement . For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
1.Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
2. The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
3. The IRS will also withdraw liens on existing Direct Debit Installment Agreements upon taxpayer request.
4. Federal Tax Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
New Rule by the IRS under the Fresh Start Program
The IRS recently approved new rules to assist struggling Taxpayers due to the economic recession. The new rules state that the IRS will withdraw tax liens that are filed against taxpayers who meet certain criteria.
If you owe less than $25,000 to the IRS and enter into a payment agreement the IRS will withdraw the lien.
IRS Tax Lien Discharge or IRS Tax Lien Subordination.
Other Ways to Remove a Federal Tax lien
1. Paying your tax debt in full.
This is obviously the quickest and the fastest way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt. If you walk into the local office with a cashier check you can ask the IRS to issue you a release right on the spot.
2.When conditions are in the best interest of both the government and the taxpayer.
We have a client that a third party lender was going to give the taxpayer money to pay off some of the lien. We persuaded the IRS to release the lien for this funding to go through. Situations that benefit both the government and the taxpayer can also release the federal tax lien.
3.Discharge of property.
Allows property to be sold free of the lien. The seller or buyer can submit Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien (PDF).Call us for more details.
4. Subordination.
This does not remove the federal tax lien , but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage. For more information review Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien.
This is available on (PDF).
5.Withdrawal.
This removes the public notice and assures that the IRS is not competing with other creditors for your property. If applying for a withdrawal, use Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (PDF).
Call us for a no cost consultation, 1-866-700-1040.
by Fresh Start Tax | Oct 27, 2012 | IRS Notice or Letter, IRS Tax Advice, IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Tax Help
IRS Tax Resolution Expert – Michael D. Sullivan – Former IRS Agent – Fresh Start Tax LLC, Since 1982, A plus Rated BBB
There are may excellent tax resolution specialists in the market today. Many are excellent in there craft, knowledge and experience.
One of the advantages of Fresh Start Tax LLC is the wide range of IRS tax experts and specialists on staff. We are a true IRS tax resolution firm and that is all we do.
From Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents, managers and instructors we have over 206 years of professional tax experience and over 60 years of working directly for the IRS in the local, district and regional offices.
Mr. Sullivan pictured above is a Former IRS agent and teaching instructor.
We also taught Tax Law at the IRS.
We offer free tax consultation 1-866-700-1040 or call us at 1-866-700-1040.
We are friendly and affordable.
With our A plus rating by the BBB, we are without complaint with impeccable credentials.
Areas of Professional Tax Practice:
- Same Day IRS or State Tax Representation
- Offers in Compromise or IRS Tax Debt Relief Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Levy Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS or State Tax Audits
- IRS Hardships Cases / Unable to Pay
- Payment Plans, Installment Agreements, Structured payment agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases, all States
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns, Past due
- Tax Return Reconstruction if Tax Records are lost or destroyed
- FBAR and Expat Specialists
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 plus”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States, Federal and State Issues
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com & WAYI FM – Monthly Radio Show-Business Weekly
by Fresh Start Tax | Oct 22, 2012 | IRS Tax Problem, Tax Help, Tax Lawyer
Have Former IRS Agents, Attorneys, Lawyers and CPA’s handle and settle your IRS matter once and for all.
Let our 206 years of tax help experience get you peace of mind!
If you are having a IRS Tax Problem and need tax help call us today to a no cost professional tax consult and stop the worry today. 1-866-700-1040.
Use our experience to stop the worry and get your case settled. yes, you can relax again!
We are comprised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents who have over 206 years of IRS tax problem help experience.
We have over 60 years of working directly for the IRS as agents, managers, supervisors, instructors and as appeal agents. We handle any IRS tax problem issue you may have.
We can handle all back, late or past due filings, work out payment or installment agreements, handle IRS or State tax audits and settle your case with the Internal Revenue Service.
IRS Tax Problem Help can come through IRS Tax Settlements called Offers in Compromise.
An IRS tax debt settlement of the legal term offer in compromise allows you to settle your tax debt for less than the full amount you owe the IRS.
It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.The IRS will make sure you are a Offer candidate before working the case.
You have 3 viable options that you can consider to help settle or close your case. You have the option of applying for a IRS hardship, a payment plan or the offer in compromise. route.
Your current financial statement will determine the course of action that the IRS will take.
Should you consider the IRS Settlement, these are things you need to keep in mind.
IRS will consider your unique set of facts and circumstances:
a. Ability to pay;
b. Income;
c. Expenses; and
d. Asset equity.
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
IRS will want you to explore all other payment options before submitting an offer in compromise.
The Offer in Compromise program is not for everyone, you must qualify first.
If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
Two rules for eligibility:
Before we can consider your offer, you must be current with all filing and payment requirements.
You are not eligible if you are in an open bankruptcy proceeding.
Call us today and hear the truth.
by Fresh Start Tax | Oct 19, 2012 | IRS Tax Debt, IRS Tax Experts, IRS Tax Problem, Offer in Compromise, Representation, Tax Problem Help, Tax Settlements
IRS Offer – Settle with the IRS – Former IRS Settlement Agent – Revenue Officer – Debt Settlement Tax Relief
You cannot do any better than having a Former IRS Agent Settle your back tax debt. When I was employed with the Internal Revenue Service I taught the Offer in Compromise or the Tax Debt Settlement Program to new IRS agents. I/We worked out of the local, district and regional offices.
I have worked hundreds and hundreds of Offers in Compromise. I am a true expert in regard to the OIC Settlement program.
IRS Settlement History
Over the past years IRS has been accepting more Offers i n Compromise. Historically the IRS accepts around 25% of all offers in compromise with the number inching up over the past 3 years. IRS accepted 27% of all offers last year. IRS receives around 55,000 OIC a year.
With the new Fresh Start Program I expect to see that number skyrocket to numbers of offers filed that have never been seen before. I do not honestly believe IRS has the manpower to work the numbers of cases that will be coming into to the fold.
IRS will reject Offers at the drop of a hat.
IRS is basically lazy. The truth be told they hate to work this program and since Offers are long investigations their first instinct is to say ” no” because it is just to much work. To work through the entire case can take an Agent up to 25 hours.I should know, I worked there and I know there mentality.
Offers needs to be filled out correctly and accurately to have a chance of being accepted. The reason most offers are rejected is simply because the Offer is not correctly filled out. The offer is a legal contract and therefore the letter of the law must be complied with.
This is the reason it is best to have a professional tax firm complete your offer. My guess is that about 90% of all offers approved are filed by professional tax firms, at least that is the inside word I get.
Fresh Start Tax LLC is A plus rated and will tell you the truth regarding your case. 1-866-700-1040.
The Bottom Line.
Engage a professional tax firm for this process. Most solid firms will never file a offer unless it has a chance to get through. Our firm offers a free analysis of your case before taking any money from you. Take of advantage of our experience.
What is a Offer in Compromise or Settling your tax debt?
An offer in compromise is a legal agreement between a taxpayer and the Internal Revenue Service ( IRS ) that settles the taxpayer’s ( business ) tax liabilities for less than the full amount of taxes 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.
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.
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, boats, pensions, IRA’s, and other property.
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 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.
Second, acceptance 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, acceptance is permitted based on effective tax administration.
An offer 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.
Call us today and hear the truth from true tax professionals, 1-866-700-1040.
