by Fresh Start Tax | Jul 20, 2018 | Tax Help
We are Affordable tax firm that can resolve any IRS tax debt or tax filing problem. Experts in IRS Business and Corporate Tax Debt Defense and Relief. Since 1982. A plus Rated BBB.
Being former IRS agents and managers give us a very unique advantage to provide the best quality and result given IRS tax defense in the cases of individual, corporate, and business problems with the Internal Revenue Service.
We know all the closing strategies in every avenue to take to get you the very best result.
We have been in the tax resolution industry for a long time and there are many companies that exist today and have no business in this tax resolution vertical.
They charge large fees and give the work to back-end companies parties and the work never gets done.
There are many of e scam artists are around so I would caution everybody to make sure you check out the company, the credentials and ask to speak to the person who will be working your case.
While there are a plethora of many good tax relief companies, check the Better Business Bureau ratings and find out how long the company has existed and find out the complaint history of the company.
Make sure when you are hiring a company for IRS tax debt relief there’s a professional person who has a license to practice before the Internal Revenue Service.
You can call us today for a free initial tax consultation and we can give you a free assessment on your case.
At Fresh Start Tax LLC, we are true Experts on giving you every possible tax debt option to resolve your back IRS tax debt relief.
You can have back tax assistance by former IRS agents that were teaching instructors with the Internal Revenue Service.
As former IRS agents supervisors and teaching instructors we had great value to any taxpayer trying to sort out the different examinations they have with IRS if you owe back taxes have back tax debt, or have to file back tax returns.
We have over 65 years of direct IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service.
We are one of the most experienced tax firms in the industry and are available for free initial tax consultation.
What we have to say is very important because we understand every possible methodology and settlement that IRS has. We offer some of the finest IRS tax resolution services to go ahead and fully resolve your IRS tax debt.
IRS Tax Debt Relief + Settlement Options + IRS Tax Debt Relief + Back IRS Taxes Relief For Business and Corporate Taxes
Important : IRS Tax Debt Relief will depend on your current financial statement. The internal revenue system is dependent on the review, the credibility and in-depth analysis of your current assets and income.
Having the knowledge and experience of the system is the first step to finding a permanent resolution to your IRS tax problem.
The first option always is to see if you can settle your tax debt through pennies on the dollar through the offer in compromise program.
Our firm has a distinct advantage over other forms as I am a former IRS teaching agent of the offer in compromise program when employed at Internal Revenue Service.
We will review with you the very specifics of your tax issue or back tax problem and after a careful review of your exit strategy and your financial statement, we can come up with the best strategy to reduce your tax debt, manage the IRS and handle all the representation for Affordable fees and prices.
When IRS takes a current financial statement to make a determination on how they will treat you as a taxpayer there are basically three examinations available for you to take care of your back tax matter:
1. Internal Revenue Service puts 40% of all open cases into currently not collectible status which stay there for approximately a year, or,
2.6.5 million people enter into installment payments based on their current financial statements as IRS carefully looks at your income and necessary living expenses.
3. The last option and the best option is to settle your debt to pennies on the dollar through the offer in compromise program.
Last year 38,000 offers in compromise were accepted for an average settlement of $4000 per case. Please keep in mind this is completely dependent on the current financial statement that IRS reviewed and accepted.
Payment Plan examinations for Back Taxes Debt Relief
There are many instructors that determine payment plan examinations.
The Internal Revenue Service when exploring a payment plan option with the taxpayer will look at the amount due, making sure all tax returns are current and up-to-date and will look on the amount of money the taxpayer wants to pay back depending on statutory periods of time.
When you call our office we will review with you the three different examinations you have available to make a payment plan and get the one you want not, the one forced on you by Internal Revenue Service.
As a former IRS agent, I can tell you that Internal Revenue Service tries to enforce their will and extracting money from taxpayers trying to collect money they do not have.
Knowing all the procedures and the examinations you have available and the rights you have, we can make sure you are treated fairly and that you have the best possible payment agreement you can get based on your current financial statement and living expenses.
When you use our firm, you do not have to fear being bullied by the Internal Revenue Service, we know their systems inside and out.
It is necessary for you to know that all your tax returns will need to be filed for IRS to close out your case. IRS expects each taxpayer who owes back tax debt to be in full compliance before they will resolve their tax issue.
If you have returns are not filed we can prepare those with little or no records.
Call us today for a free initial tax consultation assessment and let’s find out how we can get your case closed for Affordable pricing.
We can offer you all different tax solutions possible.
Business, Corporate Tax IRS Defense + Former IRS Agents + Specialty and Experts
by Fresh Start Tax | Jun 28, 2018 | Tax Help
Reasonable Cause is based on all the facts and circumstances in your situation. We will consider any reason which establishes that you used all ordinary business care and prudence to meet your Federal tax obligations but were nevertheless unable to do so.
Typical Situations
The IRS will consider any sound reason for failing to file a tax return, make a deposit, or pay tax when due. Sound reasons, if established, include:
• Fire, casualty, natural disaster or other disturbances
• Inability to obtain records
• Death, serious illness, incapacitating or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate family
• Other reason which establishes that you used all ordinary business care and prudence to meet your Federal tax obligations but were nevertheless unable to do so
Note: A lack of funds, in and of itself, is not reasonable cause for failure to file or pay on time. However, the reasons for the lack of funds may meet reasonable cause criteria for the failure-to-pay penalty.
Facts Establishing Reasonable Cause
Facts we need in order to determine Reasonable Cause:
• What happened and when did it happen?
• What facts and circumstances prevented you from filing your return or paying your tax during the period of time you did not file and/or pay your taxes timely?
• How did the facts and circumstances affect your ability to file and/or pay your taxes or perform your other day-to-day responsibilities?
• Once the facts and circumstances changed, what activities did you take to file and/or pay your taxes?
• In the case of a Corporation, Estate or Trust, did the affected person or a member of that individual’s immediate family have sole authority to execute the return or make the deposit or payment?
Documents You May Need
Most reasonable cause explanations require that you provide documentation to support your claim, such as:
• Hospital or court records or a letter from a physician to establish illness or incapacitating, with specific start and end dates
• Documentation of natural disasters or other events that prevented compliance
Call the Toll-free Number on Your Notice
Is the information on your notice correct? If there is an issue you can resolve with your notice, a penalty might not be applicable.
Call the toll-free number on your notice either to resolve the issue with your notice or to request penalty relief due to reasonable cause, if you feel you qualify and have the necessary supporting documentation.
We may ask you to mail or fax your written statements to us.
Is Interest Relief Available?
Interest cannot be abated for reasonable cause. Interest charged on a penalty will be reduced or removed when that penalty is reduced or removed. If an unpaid balance remains on your account, interest will continue to accrue until the account is full paid.
by Fresh Start Tax | Jun 12, 2018 | Tax Help
Michael Sullivan, Former IRS Agent, Trust Fund Expert
We are an Affordable professional tax firm with an expertise in IRS tax matters including trust fund help an expert representation. Call us before the 4180 interview.
As a former IRS agent in teaching instructors , I have worked hundreds and hundreds of cases involving trust fund taxes both the assessments, the appeals and the collections.
I cannot possibly tell you how many form 4180’s I have filled out.
There are many trick questions on form 4180.
Any taxpayer going to this process should seek professional representation unless this is a very simple case and you can be rest assured IRS will not even think about holding you as a responsible person.
Call us today for a free initial tax consultation and I will walk you through the process of getting the best possible result giving the facts and circumstances of your case.
I would caution any taxpayer never give IRS a form 4180 unless they have had a true professional review the answers.
That form is one of the main forms that IRS uses to make a determination the trust fund recovery penalty.
You do not want to do this by yourself because of damaging result the trust fund penalty will have on your life.
This assessment will be individually made against you and IRS has the fertile arsenal to collect the taxes. If possible you want to file an appeal if you have a suitable case.
Filing an appeal will delay the assessment of this case and make sure more importantly that IRS finds responsibility against other parties and the cases all come out at the same time for collection. It also stops the interest from running on this tax debt until an assessment is actually made.
Some cases are very simple and taxpayers can represent themselves.
As a general rule you should know that the IRS wants to make everybody responsible that they can so they can fully collect the tax. IRS will do their best to force the issue on trust fund recovery penalties.
Their philosophy, set up everybody for this tax, the more responsible, the merrier.
Call us today and we will review your case and let you know exactly where you stand and let you know how to get the best possible results.
How IRS will Work the Case
1. Regardless of the amount of the trust fund, revenue officers will make a reasonable attempt to collect the entire liability in full. IRS will conduct a full asset search of the company including bank statements reviewing individual and personal and corporate income tax returns and do a full asset search.
2. Potential for additional liabilities from Unfiled returns, IRS will conduct a full compliance check on both business and individuals.
3. IRS will conduct the Taxpayer’s history of non-compliance that extends beyond the open balance due accounts.
4. Responsible person’s history of employment tax non-compliance. IRS will want to know if you are repeat offender. Sometimes repeat offenders are refer to the criminal investigation unit for criminal enforcement.
Some of the determining instructors used to find individuals liable for this penalty are as follows:
1. Which individuals determine financial policy?
2. Which individuals authorize payment of bills?
3. Which individuals opens or closes bank accounts?
4. Which individuals signs checks?
5. Which individuals authorizes payroll?
6. Which individuals makes tax deposits?
7. Which individuals sign tax returns?
8. Which individuals oversee the hiring & termination of employees?
9. Which individuals run business on a day-to-day basis?
The IRS will review e answers based on sufficient documentation.
Additional Activities IRS will Consider
The goal of IRS is to collect the money in full many times taxpayers trying to wiggle away at around this tax and start moving assets around. the IRS knows the tricks and secrets that are used by taxpayers and will do a full investigation to find out if this is the case.
1. Certain facts may surface indicating that transfers of corporate stock and/or capital assets have occurred. If this is the case, in addition to pursuing the TFRP, consider recovery of the unpaid corporate liability by recommending:
• Transferee assessment
• Suit to establish a transferee liability
• Suit to set aside a fraudulent transfer
• Examination referral
How the Trust Fund Recovery interviews and investigations take issue.
1. During the initial contact with the taxpayer the revenue officer will attempt to conduct interviews with farther responsible persons. The revenue officer will take the following activities during the interview:
A. IRS must Provide Publication 1, Your Rights as a Taxpayer, and document in the history the publication was delivered.
B. Explain the TFRP to the taxpayer.
C. IRS will present a copy of the TFRP calculation (Page 4 of Form 4183) Pre-Contact) to all farther responsible persons and advise them the IRS can personally assess the TFRP against those it determines liable for the penalty for the unpaid trust fund amount and collect the liability from their personal income and assets.
D. Provide Notice 784, Could You Be Personally Liable for Certain Unpaid Federal Taxes?, to the person interviewed and provide sufficient copies of Notice 784 to allow distribution to all other persons associated with the business who, based on the interview and other preliminary investigation, may be liable.
E. Advise the person(s) being interviewed of the proper activities to take to avoid such liability.
F. Begin asking questions and securing core documentation items Evidence That May Support Recommendation) from the taxpayer in support of assertion of the penalty.
If the documents are not secured, establish deadlines for the information and documents.
G. Attempt to secure at least one Form 4180, Report of Interview with individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Taxes, from a farther responsible person Evidence That May Support Recommendation).
Note:
Secure additional Forms 4180 from all farther responsible persons to the extent possible.
What about the IRS Form 4180, IRS use:
Is the form to be used for conducting TFRP interviews.
It is intended to be used as a record of a personal interview with a farther responsible person. During the initial contact, attempt to personally secure the form from farther responsible persons.
2. The purpose of the personal interview and completion of Form 4180 is to secure direct, detailed information regarding the individual’s or other person’s involvement in the business in order to determine if he or she meets the criteria for responsibility.
3. IRS will not give or mail Form 4180 to the farther responsible person(s) or representative for completion by that person or for review prior to the interview. The form must be completed in person or over the phone.
4. A summons may be necessary to require the farther responsible person’s presence at the interview. IRS will deliver form 2039 in person to the taxpayer.
5. After the IRS revenue officer takes the 4180 interview and during the process they will be securing information from third parties, reviewing bank signature cards, review corporate resolutions, review financial statements and after speaking to a number of people they will make a determination as to those persons who are responsible.
As I said earlier in my blog , it is in your best interest to hire a true tax professional to walk you through this process.
If you think in any way shape or form you have questions as to your responsibility call us today for a free initial tax consultation and we will let you know if you should pursue the assessment or the appeal process.
Trust Fund Tax Help + Former IRS + Payroll Taxes + Settlement & Abatements
by Fresh Start Tax | May 30, 2018 | Tax Help
Do you owe trust fund taxes? Call us today to get a free initial consultation and we can review your examinations. Since 1982 former IRS agents and managers.
The IRS Trust Fund Penalty, Speak to IRS Expert, Appeals and Trust Fund Defense, Former IRS Revenue Officer. Since 1982.
No matter where your case is in the IRS system we can guide you and give you assistance. From the first IRS notice, to a final assessment we are your best source for payroll, and unpaid tax debt.
If you will owe trust fund taxes/payroll taxes, there are three or four examinations to deal with the problem at hand.
If you do not believe that the assessment itself is legitimate you can file an offer in compromise doubt as to liability.
At that point IRS will reopen the case and you provide a defense why you should not have been assessed the penalties.
If you owe the tax IRS will take a current financial statement and either put you into a hardship, payment agreement or you can file for an offer in compromise doubt as to collectivity.
I am a former IRS agent and teaching instructors with the Internal Revenue Service collection division, I am a true expert for the Trust Fund Tax, avoid and defend yourself.
We are general appellate Experts for all IRS matters. We have a former IRS appellate agent on staff. We know the system.
We can appeal your IRS trust fund penalty with the best possible tax defense used by strategies known to former IRS agents who have worked and know the system.
If you have received IRS form 2751 with the accompanying IRS letter 1153 , the IRS is in the process of asserting a trust fund penalty against the name on the form.
You have 60 days to file a formal appeal to stop the assessment and stop future IRS collection action.
This is a time sensitive letter in all time sensitive letters must be handled in that fashion.
As a former revenue officer and I taught tax law regarding the TRUST FUND TAX to new employees with the simple review of your case I will be able to give you a full evaluation to let you know how to defend yourself against the IRS trust fund recovery penalty.
There are no two cases the same so it is important to understand the fact pattern before one files an appeal for the trust fund case.
The revenue officer who will be making this determination will spend a number of hours before making a determination for who is responsible for this penalty.
It is extremely important to get the best tax advice events possible. Many times experienced help can get you out of this penalty and tax assessment.
Call me today for a free initial tax consultation.1-866-700-1040
Within a couple of minutes will be able to make a determination on how to proceed forward.
As a former IRS agent I would set up the trust fund penalty against responsible persons who were held liable for this tax.
I also set up hundreds upon hundreds of trust fund penalties against responsible persons and know the system inside and out.
I also know all the best tax defense strategies to use.
The IRS Form 4180
It is very important to know that one of the main forms used by revenue officers is form 4180.
The Internal Revenue Service asks the revenue officer to have a sit down meeting with any persons that will be completing this form.
As a former revenue officer, I would urge any persons who has to fill this form out to be represented so you can have the best possible tax defense.
There are many set up questions on this form.
The revenue officer tries to take this 4180 statement from as many persons that were involved with the company so as to make a clear determination as to who was truly responsible. The revenue officer uses a variety of sources to confirm that this statement is true and correct.
The revenue officer looks at bank signatures cards, copies of cancelled checks, at corporate resolutions, at loan documents, at those who sign leases or sign key documents involving day-to-day business of the company.
Another Instructors IRS will look for:
1. IRS will look for who determined the financial policy for the business,
2. who authorized payments or bills to other creditors,
3. who opened & closed bank accounts,
4. who guaranteed loans,
5 . who authorize payroll,
6. who authorized federal tax deposits,
7. who prepared and review and sign payroll tax returns,
8. who had the right to hire or fire.
At the end of the day IRS looks at where the axe falls based on the flags raised on those who had authority and control.
There is not just one factor but a number of instructors and an experienced revenue officer can get to the bottom of this real quick but keep in mind there are many tax defenses that one can raise to file an appeal against this assessment.
Also keep in mind that if this taxes assessed against you can always file an offer in compromise doubt as to liability and ask IRS them to reopen the case.
There are many other documents that IRS will look at e are just a few.
It is not hard to determine who is responsible for the trust fund, the bottom line is, follow the money, follow decisions, follow who was really in charge.
If you need any help or need an initial consultation call me today and I can walk you through the process of the trust fund tax.
Why this tax is so deadly????
Many persons have no idea that if their payroll taxes are not paid that they can be held personally responsible for the tax debt, that is, the so-called trust fund taxes.
The article below will go into detail what those trust fund taxes are and the computations of assessment.
If IRS sets up the trust fund penalty against responsible persons or employees it can impose their true enforcement action including seizure, garnishments, bank levies, tax liens against any and all assets.
Our firm, fresh start tax is your best tax defense for the trust fund tax, appeals or collection defense.
What is the Trust Fund Tax ? The IRS Code 6672 Penalty
A trust fund tax is money withheld from an employee’s wages (income tax, social security, and Medicare taxes) by an employer and held in trust until paid to the Treasury.
When you pay your employees, you do not pay them all the money they earned. As their employer, you have the added responsibility of withholding taxes from their paychecks. The income tax and employees’ share of FICA (social security and Medicare) that you withhold from your employees’ paychecks are part of their wages you pay to the Treasury instead of to your employees.
Your employees trust that you pay the withholding to the Treasury by making Federal Tax Deposits (PDF). That is why they are called trust fund taxes.
Through this withholding, your employees pay their Contributions toward retirement benefits (social security and Medicare) and the income taxes reported on their tax returns. Your employees’ trust fund taxes, along with your matching share of FICA, are paid to the Treasury through the Federal Tax Deposit system.
The withheld part of e taxes is your employees’ money, and the matching portion is their retirement benefit.
Employment tax deposits are a current expense. Postponing paying them is not the same as making a late payment on your phone bill or to a supplier.
Congress has established large penalties for delays in turning over your employment taxes to the Treasury. The longer it takes to pay that money, the more it will cost you.
Who Can Be Responsible for the TFRP
The TFRP may be assessed against any person who:
Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
Willfully fails to collect or pay them.
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes
This person may be:
An officer or an employee of a corporation,
A member or employee of a partnership,
A corporate director or shareholder,
A member of a board of trustees of a nonprofit organization,
Another person with authority and control over funds to direct their disbursement,
Another corporation or third-party payer,
Payroll Service Providers (PSP) or responsible parties within a PSP
professional Employer Organizations (PEO) or responsible parties within a PEO, or
Responsible parties within the common law employer (client of PSP/PEO).
For Consultations to exist, the responsible person:
Must have been, or should have been, aware of the outstand ing taxes and
Either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of Consultations.
You may be asked to complete an interview in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather that to determine which creditors would or would not be paid.
Figuring the TFRP Amount:
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
The unpaid income taxes withheld, plus
The employee’s portion of the withheld FICA taxes.
For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the TFRP:
If we determine that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you. You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal. The letter will explain your appeal rights.
Caution:
Once we assert the penalty, we can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.
Call us today and hear the truth. We can review a number of examinations and represent you before the IRS and provide your best possible tax defense.
Please feel free to call us regarding a second opinion. Hear the truth from experienced former IRS agents managers and teaching instructors . 1-866-700-1040
Trust Fund Tax Problem + Talk To Former IRS Agent + STOP IRS, EXPERT TAX DEFENSE
by Fresh Start Tax | May 30, 2018 | Tax Help
Do you owe trust fund taxes? Call us today to get a free initial consultation and we can review your examinations. Since 1982 former IRS agents and managers.
The IRS Trust Fund Penalty, Speak to IRS Expert, Appeals and Trust Fund Defense, Former IRS Revenue Officer.
No matter where your case is in the IRS system we can guide you and give you assistance. From the first IRS notice, to a final assessment we are your best source for payroll, and unpaid tax debt.
If you will owe trust fund taxes/payroll taxes, there are three or four examinations to deal with the problem at hand.
If you do not believe that the assessment itself is legitimate you can file an offer in compromise doubt as to liability.
At that point IRS will reopen the case and you provide a defense why you should not have been assessed the penalties.
If you owe the tax IRS will take a current financial statement and either put you into a hardship, payment agreement or you can file for an offer in compromise doubt as to collectivity.
I am a former IRS agent and teaching instructors with the Internal Revenue Service collection division, I am a true expert for the Trust Fund Tax, avoid and defend yourself.
We are general appellate Experts for all IRS matters. We have a former IRS appellate agent on staff. We know the system.
We can appeal your IRS trust fund penalty with the best possible tax defense used by strategies known to former IRS agents who have worked and know the system.
If you have received IRS form 2751 with the accompanying IRS letter 1153 , the IRS is in the process of asserting a trust fund penalty against the name on the form.
You have 60 days to file a formal appeal to stop the assessment and stop future IRS collection action.
This is a time sensitive letter in all time sensitive letters must be handled in that fashion.
As a former revenue officer and I taught tax law regarding the TRUST FUND TAX to new employees with the simple review of your case I will be able to give you a full evaluation to let you know how to defend yourself against the IRS trust fund recovery penalty.
There are no two cases the same so it is important to understand the fact pattern before one files an appeal for the trust fund case.
The revenue officer who will be making this determination will spend a number of hours before making a determination for who is responsible for this penalty.
It is extremely important to get the best tax advice events possible. Many times experienced help can get you out of this penalty and tax assessment.
Call me today for a free initial tax consultation.
Within a couple of minutes will be able to make a determination on how to proceed forward.
As a former IRS agent I would set up the trust fund penalty against responsible persons who were held liable for this tax.
I also set up hundreds upon hundreds of trust fund penalties against responsible persons and know the system inside and out.
I also know all the best tax defense strategies to use.
The IRS Form 4180
It is very important to know that one of the main forms used by revenue officers is form 4180.
The Internal Revenue Service asks the revenue officer to have a sit down meeting with any persons that will be completing this form.
As a former revenue officer, I would urge any persons who has to fill this form out to be represented so you can have the best possible tax defense.
There are many set up questions on this form.
The revenue officer tries to take this 4180 statement from as many persons that were involved with the company so as to make a clear determination as to who was truly responsible. The revenue officer uses a variety of sources to confirm that this statement is true and correct.
The revenue officer looks at bank signatures cards, copies of cancelled checks, at corporate resolutions, at loan documents, at those who sign leases or sign key documents involving day-to-day business of the company.
Another Instructors IRS will look for:
1. IRS will look for who determined the financial policy for the business,
2. who authorized payments or bills to other creditors,
3. who opened & closed bank accounts,
4. who guaranteed loans,
5 . who authorize payroll,
6. who authorized federal tax deposits,
7. who prepared and review and sign payroll tax returns,
8. who had the right to hire or fire.
At the end of the day IRS looks at where the axe falls based on the flags raised on those who had authority and control.
There is not just one factor but a number of instructors and an experienced revenue officer can get to the bottom of this real quick but keep in mind there are many tax defenses that one can raise to file an appeal against this assessment.
Also keep in mind that if this taxes assessed against you can always file an offer in compromise doubt as to liability and ask IRS them to reopen the case.
There are many other documents that IRS will look at e are just a few.
It is not hard to determine who is responsible for the trust fund, the bottom line is, follow the money, follow decisions, follow who was really in charge.
If you need any help or need an initial consultation call me today and I can walk you through the process of the trust fund tax.
Why this tax is so deadly????
Many persons have no idea that if their payroll taxes are not paid that they can be held personally responsible for the tax debt, that is, the so-called trust fund taxes.
The article below will go into detail what those trust fund taxes are and the computations of assessment.
If IRS sets up the trust fund penalty against responsible persons or employees it can impose their true enforcement action including seizure, garnishments, bank levies, tax liens against any and all assets.
Our firm, fresh start tax is your best tax defense for the trust fund tax, appeals or collection defense.
What is the Trust Fund Tax ? The IRS Code 6672 Penalty
A trust fund tax is money withheld from an employee’s wages (income tax, social security, and Medicare taxes) by an employer and held in trust until paid to the Treasury.
When you pay your employees, you do not pay them all the money they earned. As their employer, you have the added responsibility of withholding taxes from their paychecks. The income tax and employees’ share of FICA (social security and Medicare) that you withhold from your employees’ paychecks are part of their wages you pay to the Treasury instead of to your employees.
Your employees trust that you pay the withholding to the Treasury by making Federal Tax Deposits (PDF). That is why they are called trust fund taxes.
Through this withholding, your employees pay their Contributions toward retirement benefits (social security and Medicare) and the income taxes reported on their tax returns. Your employees’ trust fund taxes, along with your matching share of FICA, are paid to the Treasury through the Federal Tax Deposit system.
The withheld part of e taxes is your employees’ money, and the matching portion is their retirement benefit.
Employment tax deposits are a current expense. Postponing paying them is not the same as making a late payment on your phone bill or to a supplier.
Congress has established large penalties for delays in turning over your employment taxes to the Treasury. The longer it takes to pay that money, the more it will cost you.
Who Can Be Responsible for the TFRP
The TFRP may be assessed against any person who:
Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
Willfully fails to collect or pay them.
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes
This person may be:
An officer or an employee of a corporation,
A member or employee of a partnership,
A corporate director or shareholder,
A member of a board of trustees of a nonprofit organization,
Another person with authority and control over funds to direct their disbursement,
Another corporation or third-party payer,
Payroll Service Providers (PSP) or responsible parties within a PSP
professional Employer Organizations (PEO) or responsible parties within a PEO, or
Responsible parties within the common law employer (client of PSP/PEO).
For Consultations to exist, the responsible person:
Must have been, or should have been, aware of the outstand ing taxes and
Either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of Consultations.
You may be asked to complete an interview in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather that to determine which creditors would or would not be paid.
Figuring the TFRP Amount:
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
The unpaid income taxes withheld, plus
The employee’s portion of the withheld FICA taxes.
For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the TFRP:
If we determine that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you. You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal. The letter will explain your appeal rights.
Caution:
Once we assert the penalty, we can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.
Call us today and hear the truth. We can review a number of examinations and represent you before the IRS and provide your best possible tax defense.
Please feel free to call us regarding a second opinion. Hear the truth from experienced former IRS agents managers and teaching instructors . 1-866-700-1040
IRS Trust Fund Recovery Penalty *Penalties for Payroll Tax Debt *Unpaid Payroll Taxes *Experts Representation
by Fresh Start Tax | May 30, 2018 | Tax Help
If you are having problems paying your current payroll, business tax and may be experiencing pressure from the Internal Revenue Service to assert the trust fund recovery penalty, call us now!
Call us today to hear the best possible advice from former IRS agents, managers, and teaching instructors . We know the system inside and out as former IRS agents and managers we use to assert the trust fund recovery penalty against responsible persons.
We know the exact format, the methodologies, and the best possible trust fund tax defenses for non-assertion of the trust fund penalty.
The IRS Trust Fund Penalty, Speak to IRS Expert, Appeals and Trust Fund Defense, Former IRS Revenue Officer. 1-866-700-1040
The Internal Revenue Service considers payroll and trust fund tax serious business because in reality is it is not tax but money that was held in trust by employers.
IRS considers payroll taxes and trust fund taxes as a top priority.
I am a former IRS agent and teaching instructors with the Internal Revenue Service collection division, I am a true expert for the Trust Fund Tax, avoid and defend yourself.
As a former revenue officer and I taught tax law regarding the TRUST FUND TAX to new employees with the simple review of your case I will be able to give you a full evaluation to let you know how to defend yourself against the IRS trust fund recovery penalty.
There are no two cases the same so it is important to understand the fact pattern before one files an appeal for the trust fund case.
The revenue officer who will be making this determination will spend a number of hours before making a determination for who is responsible for this penalty.
It is extremely important to get the best tax advice events possible.
Call me today for a free initial tax consultation. Within a couple of minutes will be able to make a determination on how to proceed forward.
As a former IRS agent I would set up the trust fund penalty against responsible persons who were held liable for this tax.
I also set up hundreds upon hundreds of trust fund penalties against responsible persons and know the system inside and out.
I also know all the best tax defense strategies to use.
The IRS Form 4180
It is very important to know that one of the main forms used by revenue officers is form 4180.
The Internal Revenue Service asks the revenue officer to have a sit down meeting with any persons that will be completing this form.
As a former revenue officer, I would urge any persons who has to fill this form out to be represented so you can have the best possible tax defense.
There are many set up questions on this form.
The revenue officer tries to take this 4180 statement from as many persons that were involved with the company so as to make a clear determination as to who was truly responsible. The revenue officer uses a variety of sources to confirm that this statement is true and correct.
The revenue officer looks at bank signatures cards, copies of cancelled checks, at corporate resolutions, at loan documents, at those who sign leases or sign key documents involving day-to-day business of the company.
Another Instructors IRS will look for:
1. IRS will look for who determined the financial policy for the business,
2. who authorized payments or bills to other creditors,
3. who opened & closed bank accounts,
4. who guaranteed loans,
5 . who authorize payroll,
6. who authorized federal tax deposits,
7. who prepared and review and sign payroll tax returns,
8. who had the right to hire or fire.
At the end of the day IRS looks at where the axe falls based on the flags raised on those who had authority and control.
There is not just one factor but a number of instructors and an experienced revenue officer can get to the bottom of this real quick but keep in mind there are many tax defenses that one can raise to file an appeal against this assessment.
Also keep in mind that if this taxes assessed against you can always file an offer in compromise doubt as to liability and ask IRS them to reopen the case.
There are many other documents that IRS will look at e are just a few.
It is not hard to determine who is responsible for the trust fund, the bottom line is, follow the money, follow decisions, follow who was really in charge.
If you need any help or need an initial consultation call me today and I can walk you through the process of the trust fund tax.
Why this tax is so deadly????
Many persons have no idea that if their payroll taxes are not paid that they can be held personally responsible for the tax debt, that is, the so-called trust fund taxes.
The article below will go into detail what those trust fund taxes are and the computations of assessment.
If IRS sets up the trust fund penalty against responsible persons or employees it can impose their true enforcement action including seizure, garnishments, bank levies, tax liens against any and all assets.
Our firm, fresh start tax is your best tax defense for the trust fund tax, appeals or collection defense.
What is the Trust Fund Tax ?
A trust fund tax is money withheld from an employee’s wages (income tax, social security, and Medicare taxes) by an employer and held in trust until paid to the Treasury.
When you pay your employees, you do not pay them all the money they earned. As their employer, you have the added responsibility of withholding taxes from their paychecks. The income tax and employees’ share of FICA (social security and Medicare) that you withhold from your employees’ paychecks are part of their wages you pay to the Treasury instead of to your employees.
Your employees trust that you pay the withholding to the Treasury by making Federal Tax Deposits (PDF). That is why they are called trust fund taxes.
Through this withholding, your employees pay their Contributions toward retirement benefits (social security and Medicare) and the income taxes reported on their tax returns. Your employees’ trust fund taxes, along with your matching share of FICA, are paid to the Treasury through the Federal Tax Deposit system.
The withheld part of e taxes is your employees’ money, and the matching portion is their retirement benefit. For additional information, refer to Employment Taxes and the Trust Fund Recovery Penalty (TFRP).
Employment tax deposits are a current expense. Postponing paying them is not the same as making a late payment on your phone bill or to a supplier. Congress has established large penalties for delays in turning over your employment taxes to the Treasury. The longer it takes to pay that money, the more it will cost you.
Who Can Be Responsible for the TFRP
The TFRP may be assessed against any person who:
Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
Willfully fails to collect or pay them.
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes
This person may be:
An officer or an employee of a corporation,
A member or employee of a partnership,
A corporate director or shareholder,
A member of a board of trustees of a nonprofit organization,
Another person with authority and control over funds to direct their disbursement,
Another corporation or third-party payer,
Payroll Service Providers (PSP) or responsible parties within a PSP
professional Employer Organizations (PEO) or responsible parties within a PEO, or
Responsible parties within the common law employer (client of PSP/PEO).
For Consultations to exist, the responsible person:
Must have been, or should have been, aware of the outstand ing taxes and
Either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of Consultations.
You may be asked to complete an interview in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather that to determine which creditors would or would not be paid.
Figuring the TFRP Amount
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
The unpaid income taxes withheld, plus
The employee’s portion of the withheld FICA taxes.
For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the TFRP
If we determine that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you. You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal. The letter will explain your appeal rights.
Caution:
Once we assert the penalty, we can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.
One Way to Avoid the Trust Fund Penalty
This little known IRM code section if you are uncollectible, you can give the IRS a form 433a and ask them to impose the aforementioned code section.
5.7.5.1 (11-12-2014)
Overview
1. This chapter provides guidance for Collection employees when making a collectivity determination during a trust fund recovery penalty (TFRP) investigation.
5.7.5.1.1 (11-12-2014)
Collectibility determination
1. A collectivity determination must be made in order to determine if the TFRP should be assessed. The decision not to assess based on collectivity determination will be noted in the “Non-assertion” block of Form 4183, Recommendation re: Trust Fund Recovery Penalty Assessment, for all responsible persons against whom the TFRP is not being recommended by checking the “Responsible – not collectible (Form 9327 required for inability to pay)” box. See IRM 5.7.5.3.1(1) for TFRP case file documentation requirements.
Note:
Please see IRM 5.7.5.3.2, Assertion with Pre-Assessed Form 53, for additional information.
2. The TFRP will normally not be assessed when:
• There is no present or future collection potential.
• Neither the responsible person nor their assets/income sources can be located.
4. When investigation has determined there is no collection potential, the aggregate trust fund balance is below the amount in IRM 5.7.4.1(2), Determination to Pursue and Recommend Assessment of the TFRP, and there is no potential the taxpayer will accrue additional liabilities, the Automated Trust Fund Recovery Penalty (ATFR) system case should be closed as “Under IRM 5.7.4 criteria.” Preparation and submission of Form 4183 and Form 9327, Non-assertion Recommendation of Uncollectible Trust Fund Recovery Penalty or of Uncollectible Personal Liability for Excise Tax, is unnecessary.
5.7.5.2 (06-28-2011)
Collectibility
1. Secure Form 433–A, Collection Information Statement for Wage Earners and Self-Employed individuals, in order to determine collectivity. Form 433-F, Collection Information Statement, may be used instead of Form 433-A if the individual is a wage earner and the potential TFRP liability is less that $100,000.
Exception:
Although a Collection Information Statement (CIS) is not required if one was obtain within the past twelve months, current research of the taxpayer’s information is still required.
2. If the taxpayer will not complete the CIS, determine if a summons can be issued (if there are other open existing assessments IRM 25.5, Summons) or if the financial analysis can be completed using the sources in IRM 5.7.5.3(2).
3. As part of the collectivity investigation, current compliance with IMF filing requirements will be verified.
5.7.5.3 (06-28-2011)
Verification of Ability to Pay
1. The following instructors will be considered when determining collectivity of the TFRP:
• Current financial condition
• Involvement in a bankruptcy proceeding
• Income history and future income potential
• Asset potential (likelihood of increase in equity in assets and taxpayer’s potential to acquire assets in the future)
Business Taxes, Payroll Taxes and Trust Fund Recovery Penalty = Experts, Former IRS, We Know the system
