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.
by Fresh Start Tax | Oct 18, 2012 | IRS Tax Problem, Representation, Tax Help, Tax Levy and Wage Garnishments
IRS Levy & Wage Garnishment Help 1-866-700-1040
Stop the Worry, get your levy released as fast as possible.
No one can get levy’s released faster. Being former IRS Agents we know the exact process to get your levy or garnishment released and settle your case. We are affordable and friendly.
We are comprised of Former IRS Agents, Managers and Instructors who know the system. We have over 60 years of direct IRS work expereince and over 205 years of professional tax experience.
We have a A plus rating with the BBB and have released thousands of levies since 1982.
Hire trust and integrity.
A IRS tax levy is a legal seizure or garnishment of your property to satisfy a IRS tax debt. Levies are different from liens.
A federal tax lien is a claim used as security for the tax debt, while a tax levy actually takes or seizes the property to satisfy the IRS tax debt.
If you do not pay your taxes or make arrangements to settle your debt the IRS may seize or garnish and sell any type of real or personal property that you own or have an interest in.
IRS has the ability to :
The IRS could seize and sell property that you hold such as your car, boat, or house, or
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.
IRS can seize or take almost everything.
Levy Requirements
IRS can levy only after these three requirements are met:
1. IRS must assess the tax and sent you a Notice and Demand for Payment,
2. You neglected or refused to pay the tax and,
3. IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing levy notice at least 30 days before the levy.
How the levy must be served.
IRS may 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.
Please Note:
If IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.
Hire trust and integrity.
Fresh Start Tax – Joe Dimino
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
by Fresh Start Tax | Oct 16, 2012 | IRS Notice or Letter, Representation, Tax Levy and Wage Garnishments
Tax Levies, Tax Garnishment & Tax Liens – Get Removed or Released by calling Former IRS agents – Fresh Start Tax LLC
We are a local Tax Firm located in Upper Montclair.
We are comprised of Tax Attorneys, CPA’s and Former IRS agents who have over 60 years of experience working directly with the IRS.
Why use Fresh Start Tax LLC
Being Former IRS Agents, Managers and Instructors we know exactly what the IRS formulas and settlement techniques are in settling their cases. We know the exact way IRS will close your case based on your unique situation.
The IRS files 3.8 million levies each year and 980,000 Federal Tax Liens.
If you have any type of IRS tax problem including tax levies, tax garnishments or tax liens it only makes sense to call former IRS Agents, Managers and Instructors.
We can get IRS tax levies and tax garnishment released within the week you call as a general rule. Once Fresh Start Tax has a detailed financial statement we can not only get your tax levy or tax garnishment released or removed, we can also settle your case.
Most of these enforcement actions occur because taxpayers failed to follow up on IRS notices and letters giving the IRS no choice but to follow up with enforced collections.
Once we are retained by a client and secure a documented financial statement, that very day we can get a levy released.
Call us today to find out more 1-866-700-1040.
The following is a detailed outline of the IRS collection process.
If you do not pay in full when you file your tax return, you will receive written notice from the IRS of the amount you owe, a tax bill from the IRS.
This bill or tax notice starts the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax. Notices or letters are sent out in 5 weeks cycles.
First Notice.
The first notice you receive will be a letter that explains the balance due and demands payment in full. It will include the amount of the tax, plus any penalties and interest added to your unpaid balance from the date the tax was due.
You may pay the amount due by sending the IRS a check or money order, payable to the United States Treasury, with a copy of the notice. Over 25 million taxpayers cannot pay that notice.
If you cannot pay in full, you should send in as much as you can with the notice.The unpaid balance is subject to interest that will compound daily and a monthly late payment penalty.
It is always in your best interest to pay your tax liability in full as soon as you can to minimize additional charges.
You also may want to investigate and consider other methods of financing full payment of your taxes, for example by obtaining a cash advance on your credit card or a bank loan because the interest rate and any applicable fees your credit card company or bank charges may be lower than the combination of interest and penalties imposed by the Internal Revenue Code.
Many persons have no way to finance the IRS debt so the IRS has a program to deal with the back taxes.
Paying off your IRS tax debt by using other financial methods also may keep your tax debt from negatively affecting your credit rating.
If you cannot pay in full.
If you are unable to immediately pay your balance in full, IRS may be able to offer you a monthly installment agreement.
If you cannot full pay under an installment agreement you may propose an Offer in Compromise (OIC). An OIC is an agreement between a taxpayer and the IRS that resolves the taxpayer’s tax liability by payment of an agreed upon reduced amount.
If you are unable to pay anything because of a current financial hardship, IRS may temporarily suspend certain collection action, such as issuing a levy , until your financial condition improves. This action is called putting your case in hardship.
The IRS may, however, file a Notice of Federal Tax Lien while your account is suspended. Remember the interest and late payment penalties will continue to accrue while collection is suspended.
Some of the actions IRS may take to collect taxes include:
a. Filing a Notice of Federal Tax Lien
b. Serving a Notice of Levy, or ( bank levy or wage garnishment levy )
c. Offsetting a refund to which you are entitled
The federal tax lien is the IRS legal claim to your property, including property that you acquire after the lien arises.
The federal tax lien arises automatically when you fail to pay in full the taxes you owe within ten days after we send our first notice of taxes owed and demand for payment.
The government also may file a Notice of Federal Tax Lien in the public records.
The Notice of Federal Tax Lien publicly notifies your creditors that the IRS has a claim against all your property, including property acquired by you after the Notice of Federal Tax Lien is filed.
The filing of a Notice of Federal Tax Lien may appear on your credit report and may harm your credit rating. Once a lien arises, the IRS generally cannot release the lien until the taxes, penalties, interest, and recording fees are paid in full or until the IRS may no longer legally collect the tax.
The IRS will withdraw a Notice of Federal Tax Lien if the Notice was filed while a bankruptcy automatic stay was in effect. The IRS may withdraw a Notice of Federal Tax Lien if the IRS determines that
(1) the Notice was filed too soon or not according to IRS procedures;
(2) you enter into an installment agreement to satisfy the liability unless the installment agreement provides otherwise;
(3) withdrawal will allow you to pay your taxes more quickly; or
(4) withdrawal is in your best interest, as determined by the National Taxpayer Advocate, and the best interest of the government.
The IRS also may use a levy to collect taxes. The IRS may levy assets such as wages, bank accounts, Social Security benefits, and retirement income.
The IRS also may seize any of your property for the purpose of selling the property to satisfy a tax debt including your car, boat, or real estate. In addition, any future federal tax refunds or state income tax refunds that you are owed, may be applied to your federal tax liability.
Call us today for a no cost professional tax consultation. 1-866-700-1040.
by Fresh Start Tax | Oct 8, 2012 | IRS Tax Experts, IRS Tax Problem, Representation, Tax Help
IRS Tax Help – STOP IRS with a Collection Due Process – Orlando, Tampa, St. Petersburg – Florida
Mr. Michael D. Sullivan is a Former IRS Agent and Teaching Instructor with the Internal Revenue Service. Serving Florida since 1982.
We are friendly and affordable. We can Stop your IRS tax problem.
It is very possible to stop the IRS with one telephone call depending where your case is in the IRS system. The best time to stop the IRS right in there tracks is when you are in letter or notice status.
There are other tricks and techniques and they vary from case to case. After we review cases we can best set out a course to get you IRS Tax Problem Help.
Call us today for a no cost consult and let us work out a plan to manage the IRS for you. 1-866-700-1040.
If you received this Notice: Letter number CP 504.
If you just got a Notice Number CP504.
It will say – “Urgent!! We intend to levy Certain Assets.
We can stop the IRS. You must act within that 30 day window. If you have missed that opportunity you must file a notice of action within the L-1058 letter time frame which is the last of the series of notices that the IRS sends.
After that notice IRS will take enforcement action with the filing of the federal tax levies, bank and wages levies.
The IRS cannot levy with just this notice.
They must first issue a formal Notice of Intent to Levy, and that is the next step after this notice. By calling us when you receive this letter we can completely control the IRS.
If the IRS claims that they will Lien or Levy your assets.
The IRS Collection function says they are going to file a lien or levy your assets. What can you do?
We will contact the Collection function to discuss your situation and your payment options. We will discuss with you Publication 1660, Collection Appeal Rights to review your appeal rights.
Some Collection actions qualify for appeal under the Collection Appeals Program (CAP) and some qualify under the Collection Due Process (CDP) appeal.
These two programs offer different advantages depending on the facts of your case. Publication 1660 will help you decide which is best for you.
You received a Notice of Federal Tax Lien and Right to a Hearing
If you just received a Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320, Letter 3172.
The Letter 3172 gives you 30 days to request a Collection Due Process (CDP) hearing to discuss the lien filing. We will request a CDP hearing if you feel the lien is inappropriate and will cause a hardship.
However, as explained in Publication 1660, in a CDP hearing Appeals can only discuss the existence of or amount that you owe under very limited circumstances. If Appeals cannot consider the underlying liability, you have three options to re-open that issue:
1. Pay the amount due in full and file a claim for refund. If the IRS disallows your claim you will have the right to Appeal at that time.
2. Follow the instructions in Publication 3598 and request an Audit Reconsideration. Note that you must submit new information the IRS did not previously consider in order to have an audit reconsideration.
3. Follow the instruction in Form 656 and file an Offer in Compromise, Doubt as to Liability.
You just received a Letter L-1058
If you just received a Letter L-1058 or LT11 – FINAL NOTICE OF INTENT TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING this is your last chance to appeal with the IRS. Do not let this opportunity slip by.
We will discuss with you Publication 1660. The Letter 3172 gives you 30 days to request a Collection Due Process (CDP) hearing. We will request a CDP hearing if you feel the levy is inappropriate.
However, as explained in Publication 1660, in a CDP hearing Appeals can only discuss the existence of or amount that you owe under very limited circumstances.
Call us today for find out more. 1-86-700-1040.
by Fresh Start Tax | Oct 4, 2012 | Offer in Compromise, Representation, Tax Help, Tax Settlements
Settle a IRS Tax Debt – Offers in Compromise – Former IRS Agent
Mr. Michael D. Sullivan is a former IRS Agent and Teaching Instructor who both worked and taught the IRS Debt Settlement program at the IRS called the offer in compromise.
The new IRS Fresh Start Program has made Settling with the IRS a reality. The old Offer Program was broke and it was almost impossible for taxpayers to get Offers in Compromise through the system. The government lost millions of dollars in lost revenue because of a antiquated system. The IRS now has finally done the right thing, help struggling taxpayers.
IRS roughly gets 55,000 offers presented to them each year with an average acceptance rate of 25%. With the new Fresh Start Program I would not be surprise if we do not break the 100k mark this year. With that said, there is no telling at this time how long it will take to process the Offers. Before the New Fresh Start Program there were 7500 cases in the Que, the cases must be stacked up against the wall.
With Millions of taxpayers owing back taxes to the IRS, the average tax payer has 3 ways to basically get the IRS of there back. The taxpayer must give IRS a current financial, either a 433A or a 433F depending on where the case is in the IRS system.
IRS will then review the financial statement and all correspondence to document the numbers placed on the 433A and 433F to make sure the financial statement is correct. Based on the National Standards IRS will either place the case in;
1. Hardship,
2.Part Payment or installment status.
3. The feasibility of an Offer in Compromise.
Before taxpayers go running off submitting Offers in Compromise to settle their tax debt it is a best practice to have a tax professional pre-screen the Offer to make sure the Offer can and will be accepted by the IRS. Offers are very complex and not easily accepted by the IRS.It is easier for IRS to reject the offer and accept it. It is far less work.
About 20 hours of government work goes in to an accepted Offer in Compromise. If accepted it makes its way up the chain of command getting approval after approval before it is finally signed off by a IRS Tax Attorney for legal purposes.
All accepted offers in compromise can be found in regional office at the IRS for public review and inspection.
The New Fresh Start Program
Changes the IRS has made as part of its “Fresh Start” initiative over the past two years have made it easier for taxpayers to qualify for alternative payment programs. The Fresh Start changes should provide a good incentive for taxpayers to work with the IRS to resolve past due back taxes.
IRS Code Section 6159
If a client or taxpayer is unable to pay in full, Sec. 6159 allows the IRS to enter into a monthly payment plan (installment agreement). The IRS also has the authority to settle the tax, penalties, and interest by negotiating an offer in compromise (OIC). This is a contract between the taxpayer and the government to settle the tax debt for less than the full amount owed.
The Offer in Compromise calculation
When the IRS calculates a taxpayer’s reasonable collection potential, it will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years. This is a huge change
All offers must be fully paid within 24 months of the date the offer is accepted.
The Form 656-B, Offer in Compromise Booklet, and Form 656, Offer in Compromise, has been revised to reflect the changes.
Changes to the OIC
Other changes to the program include narrowed guidelines and clarification of when a dissipated assets will be included in the calculation of reasonable collection potential.
In addition, equity in income producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.
Each offer is based on its own set of circumstance so it is best to have Fresh Start Tax review and process your offer.
Do not pay a firm to submit your offer unless you fully understand the ramifications of the program.
Changes to Allowable Living Expenses
The Allowable Living Expense standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay. The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas. These standards are used when evaluating both installment agreement and offer in compromise requests.
The National Standard miscellaneous allowance has been expanded to include additional items.
A New Change – Taxpayers can use the miscellaneous allowance for expenses such as credit card payments and bank fees and charges.
Other payments now allowed as expenses.
New guidance has also been clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education. In addition, payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.
Call us today, 1-866-700-1040, for a no cost evaluation.
Settle a IRS Tax Debt – Offers in Compromise – Former IRS Agent – Fresh Start Tax
by Fresh Start Tax | Oct 3, 2012 | Expatriate Tax, FBAR, Offshore Tax Problems, Representation, Tax Lawyer
FBAR Filing Help – Late, Unfiled, Delinquent – Representation & Negotiation – Fresh Start Tax LLC – Attorneys, Former IRS
Michael D. Sullivan is Former Award Winning IRS Agent and Teaching Instructor with the Internal Revenue Service. Mr. Sullivan worked in the local, district and regional offices of the IRS.
Mr. Sullivan has been in private practice since 1982 and is a tax expert in the field of Federal and State Tax Resolution.
FBAR filing is certainly been a hot topic of late. The Department of Justice ( DOJ ) and the IRS has made this priority number one due to the huge amounts of tax revenue it has brought in to the US economy. FBAR filing and paying has been a huge boost to the coffers of the US Treasury. $5.5 Billion has already been collected when 33,000 individuals came forward.
Both government agencies ( IRS and DOJ ) have made this a priority and with the fear of going to jail a record number of individuals are coming forward to file back, late and or delinquent FBAR Reports and Amended Tax Returns.
IRS keep a list of prosecutions on there website. You will find out the fine amounts and the sentencing involved.
The individual has basically two options.
Option number one is to make what is called a ” quiet disclosure.” A Quiet disclosure is simply filing and FBAR report and amending your tax returns. The second option is to contact CI and file through CI.( Criminal Investigation )
There are pro’s and con’s to both. It is critical to contact a Tax Attorney or Tax Lawyer to help make these decision. Those decisions are based on your individual history and fact pattern on your unique case. Many factors are taking into consideration before an opinion can be rendered.
How do you report FBAR and amending your tax returns.
Filers report their foreign accounts by (1) completing boxes 7a and 7b on Form 1040 Schedule B, box 3 on the Form 1041 “Other Information” section, box 10 on Form 1065 Schedule B, or boxes 6a and 6b on Form 1120 Schedule N and (2) completing Form TD F 90-22.1 (PDF).
When is the FBAR due?
The FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold. The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR.
PLEASE NOTE – Filers cannot request an extension of the FBAR due date. Due date is the due Date!
Filing and amended FBAR
If you need to amend, FBAR filers can amend a previously filed FBAR by:
a. Checking the Amended box in the upper right-hand corner of the first page of the form,
b. Making the needed additions or corrections,
c. Stapling or attaching it to a copy of the original FBAR and
d. Attaching a statement explaining the additions or corrections.
If you fail to file a FBAR Report.
Failure to file an FBAR when required may potentially result in civil penalties, criminal penalties or both. Much depends on your case history and amount of tax owed and intent or lack thereof.
If you learn you were required to file FBARs for earlier years, file the delinquent, late or past due FBAR reports and attach a statement explaining why the reports are filed late.
Be careful with this statement. It is best to have a tax attorney or tax lawyer write this letter.
No penalty will be asserted if the IRS investigator determines that the late filings were due to reasonable cause. This is the reason a quite disclosure is sometimes recommended.
Can a cumulative FBAR penalties exceed the amount in a taxpayer’s foreign accounts?
This is a killer but the answer is yes!
Under the current penalty provisions found in 31 U.S.C. 5314(a)(5), it is possible to assert civil penalties for FBAR violations in amounts that exceed the balance in the foreign financial account.
For simple FBAR Reporting and amending of tax returns there is no reason why individuals cannot do this on there own. Forms are available online.
If you are not sure about your situation and have other issues, it is highly recommended to a call us today for a no cost tax consult. 1-866-700-1040.
FBAR Filing Help, Amending Tax Returns, Representation & Negotiation, Attorneys, Former IRS, Ex-Pat Representation
