by Fresh Start Tax | Jan 18, 2018 | Tax Help
IRS Urges Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More
The Internal Revenue Service today strongly encouraged taxpayers who are seriously behind on their taxes to pay what they owe or enter into a payment agreement with the IRS to avoid putting their passports in jeopardy.
This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015.
The FAST Act requires the IRS to notify the State department of taxpayers the IRS has certified as owing a seriously delinquent tax debt.
The FAST Act also requires the State department to deny their passport application or deny renewal of their passport. In some cases, the State department may revoke their passport.
Taxpayers affected by this law are those with a seriously delinquent tax debt.
A taxpayer with a seriously delinquent tax debt is generally someone who owes the IRS more that $51,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy.
There are several ways taxpayers can avoid having the IRS notify the State department of their seriously delinquent tax debt.
They include the following:
• Paying the tax debt in full
• Paying the tax debt timely under an approved installment agreement,
• Paying the tax debt timely under an accepted offer in compromise,
• Paying the tax debt timely under the terms of a settlement agreement with the department of Justice,
• Having requested or have a pending collection due process appeal with a levy, or
• Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief.
A passport won’t be at risk under this program for any taxpayer:
• Who is in bankruptcy
• Who is identified by the IRS as a victim of tax-related identity theft
• Whose account the IRS has determined is currently not collectible due to hardship
• Who is located within a federally declared disaster area
• Who has a request pending with the IRS for an installment agreement
• Who has a pending offer in compromise with the IRS
• Who has an IRS accepted adjustment that will satisfy the debt in full
For taxpayers serving in a combat zone who owe a seriously delinquent tax debt, the IRS postpones notifying the State department and the individual’s passport is not subject to denial during this time.
In general, taxpayers behind on their tax obligations should come forward and pay what they owe or enter into a payment plan with the IRS.
Frequently, taxpayers qualify for one of several relief programs, including the following:
• Taxpayers can request a payment agreement with the IRS by filing Form 9465. Taxpayers can download this form from IRS.gov and mail it along with a tax return, bill or notice. Some taxpayers can use the online payment agreement to set up a monthly payment agreement for up to 72 months.
• Some financially distressed taxpayers may qualify for an offer in compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less that the full amount owed.
The IRS looks at the taxpayer’s income and assets to determine the taxpayer’s ability to pay. To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov.
IRS.gov has other tips for taxpayers to catch up on their filing and tax obligations and more information about the revocation or denial of passports because of unpaid taxes.
by Fresh Start Tax | Jan 18, 2018 | Tax Help
The Internal Revenue Service’s handling of its private debt-collection program is harming lower-income Americans who can least afford to repay tax debts, a federal watchdog warned Wednesday.
While Congress directed the IRS to use private debt-collection firms to seek nearly $400 billion owed, the tax agency also was expected to follow an existing rule designed to ensure that taxpayers “have an adequate means to provide for basic expenses,” National Taxpayer Advocate Nina Olson said in the annual report to Congress.
There is a national means test that the government follows for items such as food, cl0.thing, rent, utilities and other allowable expenses. Nina Olson’s report found that e private debt collectors were not following the government rules.
But the watchdog’s review of tax returns filed as of late September by 4,141 taxpayers who made tax payments after their cases were assigned to private collectors found that 19% of the group had incomes below the federal poverty level. These taxpayers had a median income of $6,386, the report said. This is shameful!!!!!
Additionally, 25% of the group had incomes below 250% of the federal poverty level, a common low-income marker.
They had a median income of $23,096, the report said.
The IRS likely would have given e taxpayers hardship status and classified their debts as currently uncollectible if the tax agency had handled the accounts itself, Olson wrote. Instead, the tax agency assigned the cases to private debt-collection firms that don’t conduct financial analyses before contacting the taxpayers for repayments, the report said. Basically, what is happening aggressive collectors are shaking down e unsuspecting people unable to afford professional representation.
“No one is making the IRS make e bad decisions,” wrote Olson, who called the activities an end-run around Congressional safeguards. “The harm to e taxpayers is something IRS leadership consciously decided to do despite my personal efforts, and those of my organization, to stop it.”
The report additionally suggested the private debt collections are a waste of money.
The tax agency assigned nearly $920 million of “inactive tax receivables” to private collection firms through Sept. 14. About $7 million, or less that 1% of the total tax debts assigned for collection, had been recovered as of that date, the report found in a review of IRS data.
The costs totalled approximately $20 million through Sept. 30, with roughly $1 million in commissions paid to the private debt-collection firms and the rest covering other program expenses.
“Thus, it does not appear that the (private-collection agencies) are particularly effective in collecting the debts assigned to them,” Olson’s report said. “In any event, the cost of the (private debt collection) program thus far exceeds the revenue it generates.”
The IRS said private debt collectors return cases to the tax agency if a taxpayer said she or he was unable to make repayments now or in the near future. Although revenue from the collection program has been low, it is projected to increase over time, the IRS said.
The new criticism of private debt collection focuses on a controversial program the IRS launched at the direction of Congress in 2017, years after previous versions of private debt-collection efforts ended with limited success.
Consumer advocates have argued that scammers farther would harm taxpayers by posing as representatives of the private-collection companies used by the IRS. The reality is this, there should only be one collection agency collecting back taxes for the Internal Revenue Service using the same standards.
Separately, the union that represents IRS employees has said those workers would do a better collection job at less cost if Congress gave the IRS sufficient personnel funding.
Then-IRS commissioner John Koskinen said in April when the collection effort launched that the tax agency would work to ensure that the four companies chosen for the job would “work responsibly and respect taxpayer rights.”
While urging taxpayers to beware of potential scammers, Koskinen said the only people being contacted by the companies are taxpayers who had been contacted earlier by the IRS about overdue taxes.
There is another problem that creeps up your. Many scammers are calling unsuspecting taxpayers asking them to pay back taxes. Some of e scammers are using the ploy that they are one of four agencies that Congress has authorized to collect back taxes.
Since his program has been a lose lose both for the United States government and e unsuspecting taxpayers, it would be wise if this program gets the order to cease and the desist order.
The true solution to this problem is to fund IRS and have federally trained employees handle all collections under one federal umbrella.
by Fresh Start Tax | Jan 18, 2018 | Tax Help
IRS files about 500,000 federal tax liens each and every year and that coupled with the fact that hundreds of thousands have been filed in past years, if I were to guess I would say there are at least between 5,000,000 to 7,500,000 1/2 million federal tax liens currently on the books and records at different course houses in the United States.
These federal tax liens destroy a taxpayer’s credit. Anytime taxpayers want to buy or sell a house they creep up. So the federal tax lien must be dealt with.
Their different examinations to removing the federal tax lien and if you want some immediate answers feel free to call us for a free tax consultation.
How to Get Rid of a Lien
Paying your tax debt.
Pay it in full is the best way to get rid of a federal tax lien.
The IRS releases your lien within 30 days after you have paid your tax debt.
When conditions are in the best interest of both the government and the taxpayer, other examinations for reducing the impact of a lien exist.
Discharge of property
A “discharge” removers the lien from specific property.
There are several Internal Revenue Code (IRC) provisions that determine eligibility.
For more information, refer to Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien (PDF) and the video Selling or Refinancing when there is an IRS Lien.
Subordination
“Subordination” does not remover the lien, but allows other creditors to mover ahead of the IRS, which may make it easier to get a loan or mortgage.
To determine eligibility, refer to Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien (PDF) and the video Selling or Refinancing when there is an IRS Lien.
Withdrawal
A “withdrawal” removers the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due.
For eligibility, refer to Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j)) (PDF) and the video Lien Notice Withdrawal.
Two additional Withdrawal examinations resulted from the Commissioner’s 2011 Fresh Start initiative.
One option may allow withdrawal of your Notice of Federal Tax Lien after the lien’s release.
General eligibility includes:
Your tax liability has been satisfied and your lien has been released; and also:
• You are in compliance for the past three years in filing – all individual returns, business returns, and information returns;
• You are current on your estimated tax payments and federal tax deposits, as applicable.
The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement. General eligibility includes:
• You are a qualifying taxpayer (i.e. individuals, businesses with income tax liability only, and out of business entities with any type of tax debt)
• You owe $25,000 or less (If you owe more that $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
• Your Direct Debit installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
• You are in full compliance with other filing and payment requirements
• You have made three consecutive direct debit payments
• You can’t have defaulted on your current, or any previous, Direct Debit installment agreement.
How a Federal Tax Lien Affects You
• Assets — A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
• Credit — Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
• Business — The lien attaches to all business property and to all rights to business property, including accounts receivable.
• Bankruptcy — If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
help Resources For You
Centralized Lien Operation — To resolve basic and routine lien issues: verify a lien, request lien payoff amount, or release a lien, call (800) 913-6050 or fax (855) 390-3528.
Collection Advisory Group — For all complex lien issues, including discharge, subordination, subrogation or withdrawal; find contact information for your local advisory office in Publication 4235, Collection Advisory Group Addresses (PDF).
Office of Appeals — Under certain circumstances you may be able to appeal the filing of a
Notice of Federal Tax Lien. For more information, see Publication 1660, Collection Appeal Rights (PDF).
Taxpayer Advocate Service — For assistance and guidance from an independent organization within IRS, call (877) 777-4778.
Centralized Insolvency Operation — If you are questioning whether your bankruptcy has changed your tax debt, call (800) 973-0424.
by Fresh Start Tax | Jan 17, 2018 | Tax Help
Save Your Passport, Call us today and hear your examinations. 1-866-700-1040 since 1982, Hear What You Need to Do Today
IRS Urges Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More Covered, hear thee truth call us today.
The Internal Revenue Service strongly encouraged taxpayers who are seriously behind on their taxes to pay what they owe or enter into a payment agreement with the IRS to avoid putting their passports in jeopardy.
This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015.
The FAST Act requires the IRS to notify the State department of taxpayers the IRS has certified as owing a seriously delinquent tax debt.
The FAST Act also requires the State department to deny their passport application or deny renewal of their passport. In some cases, the State department may revoke their passport.
Taxpayers affected by this law are those with a seriously delinquent tax debt.
A taxpayer with a seriously delinquent tax debt is generally someone who owes the IRS more that $51,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy.
There are several ways taxpayers can avoid having the IRS notify the State department of their seriously delinquent tax debt.
They include the following:
• Paying the tax debt in full
• Paying the tax debt timely under an approved installment agreement,
• Paying the tax debt timely under an accepted offer in compromise,
• Paying the tax debt timely under the terms of a settlement agreement with the department of Justice,
• Having requested or have a pending collection due process appeal with a levy, or
• Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief.
A passport won’t be at risk under this program for any taxpayer:
• Who is in bankruptcy
• Who is identified by the IRS as a victim of tax-related identity theft
• Whose account the IRS has determined is currently not collectible due to hardship
• Who is located within a federally declared disaster area
• Who has a request pending with the IRS for an installment agreement
• Who has a pending offer in compromise with the IRS
• Who has an IRS accepted adjustment that will satisfy the debt in full
For taxpayers serving in a combat zone who owe a seriously delinquent tax debt, the IRS postpones notifying the State department and the individual’s passport is not subject to denial during this time.
In general, taxpayers behind on their tax obligations should come forward and pay what they owe or enter into a payment plan with the IRS.
Frequently, taxpayers qualify for one of several relief programs, including the following:
• Some financially distressed taxpayers may qualify for an offer in compromise.
This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less that the full amount owed.
The IRS looks at the taxpayer’s income and assets to determine the taxpayer’s ability to pay.
To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov.
IRS.gov has other tips for taxpayers to catch up on their filing and tax obligations and more information about the revocation or denial of passports because of unpaid taxes.
Want to hear the truth about losing your passport and the Internal Revenue Service? Call us today at hear the truth. 1-866-700-1040
by Fresh Start Tax | Jan 16, 2018 | Tax Help
Save Your Passport, Call us today and hear your examinations. 1-866-700-1040
IRS Urges Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More Covered, hear thee truth call us today.
The Internal Revenue Service today strongly encouraged taxpayers who are seriously behind on their taxes to pay what they owe or enter into a payment agreement with the IRS to avoid putting their passports in jeopardy.
This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015.
The FAST Act requires the IRS to notify the State department of taxpayers the IRS has certified as owing a seriously delinquent tax debt.
See Notice 2018-1.
The FAST Act also requires the State department to deny their passport application or deny renewal of their passport. In some cases, the State department may revoke their passport.
Taxpayers affected by this law are those with a seriously delinquent tax debt.
A taxpayer with a seriously delinquent tax debt is generally someone who owes the IRS more that $51,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy.
There are several ways taxpayers can avoid having the IRS notify the State department of their seriously delinquent tax debt.
They include the following:
• Paying the tax debt in full
• Paying the tax debt timely under an approved installment agreement,
• Paying the tax debt timely under an accepted offer in compromise,
• Paying the tax debt timely under the terms of a settlement agreement with the department of Justice,
• Having requested or have a pending collection due process appeal with a levy, or
• Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief.
A passport won’t be at risk under this program for any taxpayer:
• Who is in bankruptcy
• Who is identified by the IRS as a victim of tax-related identity theft
• Whose account the IRS has determined is currently not collectible due to hardship
• Who is located within a federally declared disaster area
• Who has a request pending with the IRS for an installment agreement
• Who has a pending offer in compromise with the IRS
• Who has an IRS accepted adjustment that will satisfy the debt in full
For taxpayers serving in a combat zone who owe a seriously delinquent tax debt, the IRS postpones notifying the State department and the individual’s passport is not subject to denial during this time.
In general, taxpayers behind on their tax obligations should come forward and pay what they owe or enter into a payment plan with the IRS.
Frequently, taxpayers qualify for one of several relief programs, including the following:
• Taxpayers can request a payment agreement with the IRS by filing Form 9465. Taxpayers can download this form from IRS.gov and mail it along with a tax return, bill or notice. Some taxpayers can use the online payment agreement to set up a monthly payment agreement for up to 72 months.
• Some financially distressed taxpayers may qualify for an offer in compromise.
This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less that the full amount owed.
The IRS looks at the taxpayer’s income and assets to determine the taxpayer’s ability to pay.
To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov.
IRS.gov has other tips for taxpayers to catch up on their filing and tax obligations and more information about the revocation or denial of passports because of unpaid taxes.
Want to hear the truth about losing your passport and the Internal Revenue Service? Call us today at hear the truth. 1-866-700-1040
by Fresh Start Tax | Jan 16, 2018 | Tax Help
Save Your Passport, Call us today and hear your examinations.
IRS Urges Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More Covered
The Internal Revenue Service today strongly encouraged taxpayers who are seriously behind on their taxes to pay what they owe or enter into a payment agreement with the IRS to avoid putting their passports in jeopardy.
This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015.
The FAST Act requires the IRS to notify the State department of taxpayers the IRS has certified as owing a seriously delinquent tax debt.
See Notice 2018-1. The FAST Act also requires the State department to deny their passport application or deny renewal of their passport. In some cases, the State department may revoke their passport.
Taxpayers affected by this law are those with a seriously delinquent tax debt.
A taxpayer with a seriously delinquent tax debt is generally someone who owes the IRS more that $51,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy.
There are several ways taxpayers can avoid having the IRS notify the State department of their seriously delinquent tax debt.
They include the following:
• Paying the tax debt in full
• Paying the tax debt timely under an approved installment agreement,
• Paying the tax debt timely under an accepted offer in compromise,
• Paying the tax debt timely under the terms of a settlement agreement with the department of Justice,
• Having requested or have a pending collection due process appeal with a levy, or
• Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief.
A passport won’t be at risk under this program for any taxpayer:
• Who is in bankruptcy
• Who is identified by the IRS as a victim of tax-related identity theft
• Whose account the IRS has determined is currently not collectible due to hardship
• Who is located within a federally declared disaster area
• Who has a request pending with the IRS for an installment agreement
• Who has a pending offer in compromise with the IRS
• Who has an IRS accepted adjustment that will satisfy the debt in full
For taxpayers serving in a combat zone who owe a seriously delinquent tax debt, the IRS postpones notifying the State department and the individual’s passport is not subject to denial during this time.
In general, taxpayers behind on their tax obligations should come forward and pay what they owe or enter into a payment plan with the IRS.
Frequently, taxpayers qualify for one of several relief programs, including the following:
• Taxpayers can request a payment agreement with the IRS by filing Form 9465. Taxpayers can download this form from IRS.gov and mail it along with a tax return, bill or notice. Some taxpayers can use the online payment agreement to set up a monthly payment agreement for up to 72 months.
• Some financially distressed taxpayers may qualify for an offer in compromise.
This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less that the full amount owed.
The IRS looks at the taxpayer’s income and assets to determine the taxpayer’s ability to pay.
To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov.
IRS.gov has other tips for taxpayers to catch up on their filing and tax obligations and more information about the revocation or denial of passports because of unpaid taxes.
Want to hear the truth about losing your passport and the Internal Revenue Service? Call us today at hear the truth. 1-866-700-1040
