by Fresh Start Tax | May 3, 2012 | IRS Tax Problem, Owe Payroll Taxes, Tax Lawyer, Tax News
941 payroll taxes, change is here!!!!
If you have payroll tax issues call us today to work out tax settlement. Former IRS agents know the effective tax strategies.
New Tax Legislation for Payroll Tax signed into Law.
This is Great News and a long time coming. finally some middle class tax relief coming our way.
This past Feb. 22, President Barack Obama finally signed into law the Middle Class Tax Relief and Job Creation Act of 2012, H.R. 3630.
On Feb. 23, the IRS released a revised Form 941, Employer’s Quarterly Federal Tax Return, to reflect the extended payroll tax cut. I never thought i would live too see the day.
This act extends the 4.2% rate for the employee portion of Social Security Tax through the end of 2012.
It also extends certain unemployment benefits and blocks a cut in Medicare Payments to doctors. This act also repeals earlier-enacted shifts in the timing of corporate estimated tax payments.
The act raises revenue through an auction of the spectrum of public airwaves, currently reserved for television, to allow for more wireless Internet systems.
A 2% recapture tax enacted in the December legislation that extended the payroll tax cut through Feb. 29, which effectively capped the amount of wages eligible for the payroll tax cut at $18,350, was also repealed by the act.
If you need to have questions answered or have any IRS tax issues call our team of Tax Attorneys, CPA’s of Former IRS Agents.
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 22, 2012 | Owe Payroll Taxes, Representation
Owe Back IRS Payroll Tax – You can do jail time – Hire former IRS Agents – Payroll Tax Settlements – Miami, Ft.Lauderdale, Palm Beaches 1-866-700-1040, 954-492-0088
Tax attorneys, CPAs and former IRS agents can help resolve any back IRS payroll tax that you owe. With over 206 years of professional tax experience and 60 years of working directly for the Internal Revenue Service we can go over all the tax options to go ahead and settle your back IRS payroll tax case.
Stop the worry and stress today free consultations are available.
Owe Back Payroll Taxes, better listen up!
Many people are unaware that owing IRS back payroll taxes can land you in prison. As a former IRS Agent I recommended certain business owners to Criminal Division because of back payroll taxes.
Payroll Taxes are taxes held in trust to be paid over to the IRS at prescribed periods of time. Osvaldo Martinez apparently do not know that.
A Hollywood man was sentenced Wednesday to two years in prison for failing to pay more than $1.78 million in federal income taxes that he withheld from his former employees, prosecutors said.
Osvaldo Martinez, 51, had pleaded guilty to one count of willfully failing to pay income taxes, court records show.
Prosecutors said that he withheld employee payroll taxes from employees at Clinicas Finlay, Inc., a medical services company he operated in Miami-Dade County until 2007.
U.S. District Judge Marcia Cooke ordered Martinez to turn himself in to begin serving his federal prison sentence on April 11.
If you owe back payroll taxes it is very easy to avoid this situation of prison time.
It is of utmost importance you become current immediately and make sure all your payroll tax returns are current. If you fail to file and deposit you will get the attention of the IRS.
IRS has special programs called the FTD Alerts or Federal Tax Deposits Alerts System that triggers out to the local offices when 941 filers fail to file and pay back payroll taxes.
Should you be in this situation call us today so we can intervene, stop the IRS and work out a tax payroll settlement.
Owing back taxes, payroll taxes is the highest priority of local Collection offices simply because it is not a tax but a trust. You can expect in the future many more arrests.
We are Former IRS agents that can immediate help with these tax payroll tax situations on back taxes.
We have over 205 years of professional tax experience and over 60 years in the local offices.
by steve | Oct 18, 2011 | Owe Payroll Taxes
If you owe IRS Payroll Taxes and want to settle with the IRS call Fresh Start Tax LLC. 1-866-700-1040
Have Former IRS Agents, Managers and Instructors with over 60 years of direct work experience at the IRS in the local, district and regional offices of the IRS settle your tax case. We also taught Tax Law and Tax Settlements at the IRS.
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Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
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The Law and Requirements:
Federal Employment Tax in Puerto Rico
Employers in Puerto Rico are subject to the taxes imposed by the Federal Insurance Contribution Act (FICA) (Social Security and Medicare taxes) and the Federal Unemployment Tax Act (FUTA). An employer is a person or organization for whom a worker performs services as an employee. As an employer you are required to withhold, report, and pay employment taxes.
To file the various employment tax returns, you need an Employer Identification Number (EIN). To obtain an EIN you need to file Form SS-4PR (PDF).
FICA taxes are used to finance the Social Security and Medicare systems. You must withhold the employee portion of FICA taxes from your employees’ wages and contribute the employer portion of FICA. The FICA taxes consist of two components: the Social Security tax and the Medicare tax.
The forms used to file the Social Security and Medicare taxes in Puerto Rico are: Form 941-PR (PDF), Form 941-X(PR), Form 943-PR (PDF), Form 944-PR, Form 944-X(PR), and Form 1040-PR (Anexo H-PR) (PDF) for household employers.
If you are not an agricultural employer and all of your employees are bona fide residents of Puerto Rico, file Form 941-PR to report all wages paid, tips your employees reported to you, and other compensation, and Social Security and Medicare taxes you withheld. This tax return is filed quarterly and is due the last day of the month following the end of the quarter. For example, wages you paid January through March (the first quarter of the year) must be reported on Form 941-PR by April 30.
If you are not an agricultural employer and all of your employees are bona fide residents of Puerto Rico, you may be eligible to file Form 944-PR. The Form 944-PR is filed annually and is due the last day of January following the end of the tax year. Employers that have an estimated employment tax liability of $1,000 or less for the entire calendar year are eligible to file an annual Form 944-PR.
If you were notified to file Form 944-PR for 2009, you may file Form 944-PR for 2010 to report all wages paid, tips your employees reported to you, and other compensation, and Social Security and Medicare taxes you withheld and paid. Alternatively, if you wish to file quarterly Forms 941-PR instead, you may opt out of filing Form 944-PR by telephone no later than April 1, 2010, or in writing no later than March 15, 2010. Employers who want to file a Form 944-PR for the first time in 2010 and are eligible, can opt in to filing a Form 944-PR during the same election period by the same methods. Revenue Procedure 2009-51 has more information about the election, including contact phone numbers and mailing addresses.
Most employers are required to deposit their FICA taxes before Form 941-PR is filed. If you are filing Form 944-PR, you may be able to pay your FICA taxes with your return. For additional information about Form 941-PR, refer to Topic 758, in English. For more information about the Form 944-PR, refer to the Form 944-PR Instructions in Spanish. For information about the rules to make deposits, refer to Topic 757, in English.
Household Employees
If you pay a household employee cash wages, you may be required to withhold and pay FICA taxes on all wages you pay to that employee. To see if you are required to withhold and pay these taxes, see Publication 926 (PDF), Household Employer’s Tax Guide, in English. File Form 1040-PR (Anexo H-PR) (PDF) to report and pay Social Security and Medicare taxes corresponding to the employer and the employee for all household employees.
Household employees include housekeepers, maids, baby-sitters, gardeners, and others who work in or around your residence as your employee. Repairmen, plumbers, contractors, and other business people who are self-employed and own their equipment and control how the work is performed, normally are not considered household employees
Agricultural Employees
If you are an agricultural employer in Puerto Rico, you must file Form 943-PR (PDF) to report the employer’s and the employee’s share of the FICA taxes for agricultural employees. To see if you are required to withhold and pay FICA taxes on your agricultural employees, refer to Publication 51, (Circular A), Agricultural Employer’s Tax Guide, in English. Form 943-PR is an annual return you file at the end of each calendar year and is due January 31. Most employers are required to deposit both the employer and employee portions of FICA taxes before the Form 943-PR is filed.
Publications 15 and 179 (Spanish version) explain the requirements for deposits.
Federal Unemployment Taxes (FUTA):
If you are an employer in Puerto Rico, you might have to file a Federal Unemployment Tax Return. To see if you are required to pay FUTA taxes, refer to Publication 51 if you are an agricultural employer or Publication 926 (PDF) if you are a household employer. All other employers should refer to Publication 15 or Publication 179 (Spanish version). With the exception of those who use Schedule H-PR (Form 1040) for household employees, employers in Puerto Rico who are subject to FUTA are required to file Form 940-PR to report and pay FUTA taxes. Form 940-PR (PDF) is generally due by January 31. Most employers are required to deposit FUTA taxes. FUTA taxes are not withheld from the employee’ salaries.
