by steve | Sep 10, 2009 | Tax Help, Uncategorized
If you Owe Back Payroll Taxes, IRS is coming after you. Former IRS Can Help.
Any time you owe back trust fund tax is always wise to hire a former IRS agent or someone with extensive tax experience to go ahead and manage the trust fund that with the Internal Revenue Service.
The Internal Revenue Service takes unpaid trust fund taxes a lot more serious the most taxes simply because it is taxes withheld. IRS takes a much closer look on repair cases so beware if you have been pyramiding tax liability.
The reason I am drawing interest to this type of case is because these cases can be used by the criminal division to put you in jail.
Pay your 941 taxes. If not hire a tax professional to help negotiate these tax matters.
The other reason I am drawing this to your attention is that there is a tendency when your company is failing, to start up a new corporation. If the IRS gets wind of these companies moving from company to company and building up IRS payroll taxes, expect the IRS to amp up enforcement.
The IRS procedures on Unpaid Trust fund Taxes
1. When a taxpayer is identified as a repeater and pyramiding trust fund taxes, the IRS attempts initial contact within 30 days from receipt of the case.
See IRM 5.1.10 General Handbook, Taxpayer Contacts. Normally, the IRS arranges to meet the taxpayer and his/her representative at the place of business.
If such arrangements are not made, the reason why must be documented in the case history. Such a visit will be more productive and provide an opportunity to view and assess the business operation and it’s assets in the event a risk analysis determination needs to be completed.
The field visitation will also facilitate review of any books and payroll records. In the event the RO is not able to meet the TP at the business location on initial contact, IRM 5.1.10.3(1) requires that a field call be made to the business location to view the assets when practical, but prior to closure of the case.
Prepare to conduct a 4180 interview at the time of the initial contact. Consider calculating the potential TFRP based on the current assessment.
Use the ATFR system to make a rough calculation of the penalty and be prepared to discuss the process and the potential amount of the penalty during initial contact. See IRM 5.7.3 (TFRP) for additional information.
Get the taxpayer current with FTD’s from the date of first contact. Document the case history as to what type of depositor the business is (monthly, semi-weekly) and how the deposits are made (FTD coupons, EFTPS, etc.). The Revenue Officer will monitor compliance with FTD’s.
Also, verification that the FTD’s being made are accurate based on the amount of the current payroll will be monitored. See IRM 5.1.10, Taxpayer Contacts for more specific requirements regarding what information must be obtained during initial contact.
Pyramiding must be stopped immediately.
Advise the taxpayer that enforcement action will be taken if acceptable proof of compliance is not provided as required while the delinquent tax problem is being resolved. In the event the taxpayer continues to pyramid, all appropriate remedies will be used to bring the taxpayer into compliance and to immediately stop the pyramiding. If routine case actions have not been an effective way to stop the pyramiding, consider alternative solutions. Consider seizure and sale and/or pursuit of TFRP.
Secure sufficient financial information during the initial contact so that enforcement action can be taken, when appropriate.
If it is determined during contact with the taxpayer that the business is actually “Out of Business” or the business is no longer required to file returns, the RO will immediately complete Form 2363, Masterfile ENTITY Change, or Form 4844, Request for Terminal Action, to close out the filing requirements on IDRS. Continue procedures to pursue the TFRP investigation. See IRM 5.7.4.
Make a determination of the taxpayer’s ability to pay current and delinquent taxes without delay.
Set specific deadlines when requesting information from the taxpayer. The use of Form 9297, Summary of Taxpayer Contact, will be used in face-to-face meetings where deadlines are set. use of the Form 9297 will ensure the taxpayer has a clear understanding of what has been requested and the specific deadline date the information is required to be submitted. The requirement to make FTDs and the date required to provide verification of FTD can also be listed on the Form 9297.
Installment agreements are not appropriate for taxpayers who continue to accrue tax liabilities after contact because they are not in compliance. See lRM 5.14.7 and 5.7.4.8.1, BMF Installment Agreements, for the procedures to follow when considering an installment agreement for BMF taxpayers who begin making FTDs after contact and are no longer considered a repeater.
Oftentimes, cases involving repeater and pyramiding taxpayers will require enforcement action. On initial contact, when a deadline is set for a specific action, the L-1058, Notice of Intent to Levy and Notice of Your Right to a Hearing will be issued with all required enclosures. Receipt of L-1058, during initial contact, may prompt the repeater taxpayer to comply. (See IRM 5.11.1.2.2.2)
If contact is made, explain to the taxpayer the L-1058 is being issued to ensure their compliance with filing and paying requirements and failure to comply will result in enforcement action. The Revenue Officer must provide the taxpayer with their CDP rights and clearly explain the CDP process. The right to submit a Collection Due Process appeal will expire 30 days after issuance of the letter. The taxpayer will still have the opportunity for an “equivalent” hearing (See IRM 5.1.9.3.5) and/or to appeal a specific planned or actual collection action under the Collection Appeals Program (CAP) (See IRM 5.1.9.4).
If attempts to contact the taxpayer are unsuccessful, consider issuing L-1058 and immediate enforcement action as the next course of action.
Make a lien determination within required time frames. Defer notice of lien filing only if the taxpayer is actively seeking financing to resolve the liability or if there is doubt about the correctness of the current balance due.
If levy sources are exhausted and the repeater or pyramiding taxpayer has no assets which can be seized to resolve or offset the liability, consider issuing Letter 903 (DO), see IRM 5.7.2 Monthly Filing and Special Deposit Procedures.
These procedures should be used in the most egregious cases of non-compliance and where the collection procedures have already been unproductive.
Issuance of the Letter 903 (DO) will assist in promoting compliance.
Once the Letter 903 (DO) is issued, subsequent delinquencies by the taxpayer will be accelerated to the field for prompt enforcement action.
Inactivity gaps on these cases should be defined as ” more than 30 days” with no contact or case movement toward resolution.
During a taxpayer contact, when the taxpayer asks to be referred to the Taxpayer Advocate Service (TAS) or the taxpayer meets TAS criteria and the taxpayer’s issue cannot be resolved within 24 hours, then prepare and forward Form 911, Application for Taxpayer
This information is directly form the IRM.
The IRM is a true source of the “how to” for the IRS. It is their manual on how every case must be worked.
by steve | Sep 10, 2009 | Tax Help, Uncategorized
If you are in receipt of an IRS bank tax levy we can generally get your levy released within 24 hours of receiving a verified financial statement.
Please keep in mind all tax RETURNS will have to be filed and up-to-date.
I’m a former IRS agent teaching instructor.
We know the system.
A bank has a certain amount of time that it must hold a Federal Tax Levy.
Herein the the requirement of record:
A bank must wait 21 calendar days after a levy is served before sending payment.
Then, on the next business day, it must turn over the taxpayer’s money.
The depositor(s) can waive this waiting period. The bank will not send money that is subject to attachment or execution under judicial process.
“Bank” includes credit unions, savings and loan associations, trust companies, and others described in IRC 408(n) and Treas. Reg. §301.6332?3(b).
During the holding period, a levy might be released, or the amount owed could decrease.
Note: If the bank receives no release, it must send the payment after the holding period. No additional notice is required.
Consider the holding period when deciding how long to project the accruals on a bank levy.
Need your IRS bank levy released within 24 hours, call us today.
IRS Bank Tax Levy Holding Period = How Long Does a Bank Hold a Levy?
by steve | Sep 10, 2009 | Tax Help, Uncategorized
The IRS has a certain period of time in which they have to collect monies from taxpayers that have not paid their bill in full.
We are a full service tax firm that specializes in IRS tax relief.
The IRS has generally 10 years from the date of the assessment, which is usually 6 weeks after filing your return, to collect the money in full.
At the end of the 10 years the debt is written off by the Federal Government. After that, the taxpayer wants to make sure the Federal Tax Lien no longer effects their credit.
A release of Federal Tax Lien can be requested by the taxpayer and the IRS must release the lien.
What can extend the 10 year statue of limitation???
1.
Bankruptcy
2. Judgment/Litigation
3. Offer In Compromise
4. Signing of a waiver.
Certain things extend the statute of limitations.
If you are not sure it’s best to pull an IRS tax transcript to find out what your 10 year extended date may be.
If you have questions you can email us or call us today regarding the release of your federal tax lien.
How Long Can The IRS Continue to Collect My Back Tax Debt, Release of a IRS Tax Lien = What You Need to Know, Former IRS Help
by steve | Sep 10, 2009 | Tax Help, Uncategorized
One of the damaging aspects of the Federal Tax Lien is not only putting the public on notice that you owe federal tax dollars and that the lien attaches to all personal and real property that you own, BUT, it also will ruin your credit!
Once a creditor sees that a Federal Tax Lien has been filed, all credit is usually shut off and down until that tax lien has been released.
To get a Federal Tax Lien released you must generally pay the tax in full.
There are other ways and avenues to get your federal tax lien off your credit report.
To get a federal tax lien removed you will obviously get it released if you pay in full.
You can also file an offer in compromise, have accepted and meet the terms of the offer in compromise.
When you meet the terms Internal Revenue Service will release your federal tax lien.
If your tax debt is under $25,000 you could make three payments on a debit checking account and the IRS will release your federal tax lien as well.
We are a full service tax firm and have an expertise in all IRS matters.
If you need to have a professional tax firm represent you for any IRS matter call us today for free initial tax consultation.
Removing your IRS Federal Tax Lien off Your Credit Report, Former IRS Agents, IRS Experts
by steve | Sep 10, 2009 | Tax Help, Uncategorized
There are generally two types of levies.
The IRS will send both of these levies out when working an open collection case.
The first type of levy is a wage garnishment levy.
The reason this levy is different is because it is a continuous levy.
It activates each and every paycheck period. It does not stop until the levy is released or until you quit.
The IRS by no means wants to take your paycheck each and every week, but does so because it has no choice until you get into compliance with their system.
The second type of levy is a bank or third party levy.
It takes effect only on the date, place, and time of service. It is a one time shot. To seize monies from this place again, the IRS must send out a new tax levy.
If you have received an IRS bank levy or wage garnishment, call us today and as a general rule within 24 hours of receiving your current financial statement and full documentation we can get your IRS bank levy and wage garnishment released in your case closed.
Please keep in mind all your tax returns will have to be up-to-date with the Internal Revenue Service.
IRS Bank Levy, Wage Garnishment Levy, What You Need to Know, Former IRS Agents, IRS Tax Experts
by steve | Sep 2, 2009 | Tax Help, Uncategorized
Employee vs. Independent Contractor.
Ten tips for Business Owners.
Getting this straight from the horse’s mouth is very important for individuals deciding whether to file 941’s or 1099.
On staff are former IRS agents and managers who know the system.
We have both audited and collected back tax as a result of these employee employer relationships and the misclassifications as former IRS agents, we know the system.
If you need tax help or true tax experts call us today for free initial tax consultation.
The following tips are critical in making this decision. The IRS has a special group of agents that just work these cases.
If you are a small business owner, whether you hire people as independent contractors or as employees will impact how much taxes you pay and the amount of taxes you withhold from their paychecks. Additionally, it will affect how much additional costs your business must bear, what documents and information they must provide to you, and what tax documents you must give to them.
Here are the top ten things every business owner should know about hiring people as independent contractors versus hiring them as employees.
1. Three characteristics are used by the IRS to determine the relationship between businesses and workers: Behavioral Control, Financial Control, and the Type of Relationship.
2. Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
3. Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job.
4. The Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
5. If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
6. If you can direct or control only the result of the work done — and not the means and methods of accomplishing the result — then your workers are probably independent contractors.
7. Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
8. Workers can avoid higher tax bills and lost benefits if they know their proper status.
9. Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8. Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding with the IRS.
10. You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link. Additional resources include IRS Publication 15-A, Employer’s Supplemental Tax Guide, Publication 1779, Independent Contractor or Employee, and Publication 1976, Do You Qualify for Relief under Section 530
These publications and Form SS-8 are available on the IRS Web site or by calling the IRS at 800-829-3676 (800-TAX-FORM).
IRS Rules for Employer/Employee Relationship – Need Help, Call IRS Tax Experts, Former Agents
