by Fresh Start Tax | Sep 21, 2017 | Tax Help
Florida – Sales and Use Tax Audit Defense – With Former Agents Since 1982 + Affordable 1-866-1040
Affordable Sales Tax Experts, Experienced Help
Use former Agents to defend your Sales Tax Audits, since 1982. We know the system.
Florida sales tax audit insider tips.
Being former Florida sales and use tax auditors there are many misconceptions that the public has about sales and use tax audits.
You should know that the auditor does not know the extent of your liability if any until the Florida state auditor examines your records.
The auditor simply will only know information about your company from State of Florida internal records.
Florida – Sales and Use Tax Audit – Insider Tips from Former Agents
The books and records that you provide the auditor will be the basis for any audit findings.
We can help with your defense in an audit by controlling the records that are released to the auditor.
If the Florida Department of revenue contacted your company about a pending Florida sales use tax audit or you have already received the Florida form DR 840 – Notice of Intent to Audit Books and Records.
We can be your defense to a large assessment for sales tax, interest and penalty.
ou can call us today to review your tax audit papers so we can let you know the scope of the audit and a way to conduct the audit that is most beneficial to your business.
The Audit Process used by Florida Sales and Use Tax
The auditor will conduct a preliminary preparation for the audit prior to the actual start of the audit.
The auditor will obtain information from:
• examination of sales tax records on file with the Department of revenue
• business structure and activities from websites
• profile the Florida Secretary of State corporate website
• review of prior audits and results
• review of possible issues from the Florida tax law library
• standard industrial guides
• research information available on the Internet
• review any information in the audit found which includes the reasons the audit was selected.
The auditor will also conduct an analysis your company which will include:
• taxable sales compared to exempt sales
• taxable sales percentage
• amount of assets owned by a business
• results of prior audits
• Florida sales per federal tax returns versus Florida sales tax returns
• method of business operation
• business industry
• credits and exemptions taken
• change in volume of Florida activity
• tax rates
• use tax accrued on past sales tax returns
As a Former Florida Sales and Use Tax Auditor
As a former sales tax auditor this research and analysis provided the basis to prepare an industry-specific audit plan and pre-audit interview questions.
The “audit plan” or should I say the auditor’s plan of attack will be the auditor’s guide for picking low hanging fruit.
Depending on the industry the Florida Department of revenue has a specific audit plan for auditors to follow in order to capture any sales tax not paid or remitted.
In order to limit the tax exposure, our former auditor will conduct the entrance interview with the Florida state tax auditor.
The auditor will conduct the audit entrance interview with the sole purpose of learning about the business’s operation and establish a rapport with the contact person of the business.
In order to learn more about the business operations during this interview, the auditor may want to ask some typical questions such as:
• what is the main business activity.
• where are your customers located – any out-of-state customers, if so how do you account for the sales
• are there any other sources of income
• who completes the sales and use tax returns
• what control documents are available, such as chart of accounts, general ledger, sales journals, payable Journal, etc.
• are there federal returns and depreciation schedules available
• do you own or lease the business property
• if leased who’s the landlord
Analyzing financial data
The auditor will want to begin the audit with an analysis of your financial data. The analysis may begin with a review of your chart accounts and your general ledger.
This enables the auditor to gain knowledge of your accounting system in your methodology for collecting and reporting tax.
Before any financial records are released to the auditor we will examine these records prior to releasing to the auditor to ensure a minimal tax exposure.
Auditing Techniques used by Florida Sales Tax, Department of Revenue
The auditor will select an audit technique which will enable the audit to be conducted amount of time.
The technique selected will be most representative of the business for the entire audit period. More than one technique may be required during the audit depending on the business activities and it may be appropriate to use different techniques on each activity.
The Detail Sales Tax audit
A detail audit is the basic audit technique used for sales and use tax. This type of audit requires an examination of all the records for the area sales and use tax being examined.
Sampling Audit Technique
Before sampling issues, the auditor must determine if the taxpayers records are adequate, but voluminous. Rule 12-3.0012(3), F.A.C., defines adequate the voluminous records. Adequate records are defined as, “books, accounts, and other records sufficient to permit a reliable determination of the tax deficiency or over payment.
Incomplete records can be determined to be adequate”.
Percentage of Error Audit Technique
As a former auditor the percentage of error method of projecting the sampling results has been proven to give the most reliable results and the most used by The Florida Department of Revenue.
The percentage of error method calculates tax based on the tax due in the sample period (not taxable amount).
It is well suited to projecting additional tax due on transactions in multiple counties that are entered into a single exhibit.
This is due to the fact that Florida is counties have many tax rates (when accounting surtax is added to the state sales tax rate) and most dealers transactions are affected by these sales tax rates.
It is not practical to stratify a dealer’s transaction by the many different rates and sample and project tax due by every rate.
Error Ratio Tax Audit Technique
The Error Ratio method is only used when the transactions entered into it are from a single County and that single County experienced a rate change during the audit period.
The Error ratio technique produces an approximation of the amount of tax not paid by the business.
This technique is based upon the assumption that the business makes errors at about the same frequency throughout the audit period.
Rate and Ratio Sales Tax Audit Technique
The rate and ratio technique is applicable in determining the amount of tax that has not been reported on sales.
This procedure is appropriate for use when auditing businesses with a high-volume and relatively low to moderately priced taxable or exempt sales (grocery/convenience stores, bars and restaurants) that do not have dependable sales records.
Rate (effective tax rate)
The bracket system, prescribed by Sections 212.12(9) and (10), F.S., used for computing the tax due on amounts less than one dollar, results in some cases in an effective tax rate in the process of or less than the basic rate.
One extreme is a taxable sale of $.10 with the tax of one cent the results in an effective tax rate of 10%. On the other hand, a sale of $1.09 results in an effective tax rate that is less than the basic rate. During the 6% tax.
A sale of $1.09 produces an effective rate of 5.5%. When the total taxable sales and told tax collections (the amounts that should have been collected) are considered, these extremes modify the basic tax collection rate.
The resulting tax rates are unique to that business because they are based on the businesses price structure and sales.
Ratio (taxable sales to total sales)
The ratio of taxable sales to total sales is usually easier to obtain than a tax collection rate. In the ideal situation for complete records are available, the taxable sales ratio can be obtained at the same time the tax collection rate is obtained.
After transactions are analyzed and recorded, the total taxable sales are divided by the total sales to obtain the taxable sales ratio.
In the absence of detailed records, the most popular technique in use is the extrapolation (create a new information from known information) of sales from the purchase records. This technique does not produce irrefutable figures and if used by the auditor can be subject to scrutiny.
Sales Tax audit Method – “Averaging”
This method is an audit technique that works well in an audit period where there is the absence of sufficient records. When the averaging technique is used, a period is selected in which all the necessary records are available.
The records for the period are then examined in detail.
This detailed information is reviewed for errors. The total errors or tax collected on the heirs is that averaged.
The averaged amount is then scheduled over the period in which there were insufficient records.
Sales Tax Audit Methodist – Stratified Statistical Sampling
Stratified statistical sampling has been used by the Florida Department of revenue since July 2001, for businesses with adequate electronic records.
Items in the population are classified into separate subgroups or strata based on one or more important characteristics, such as a dollar value.
A sample is randomly selected and audited. Common practice.
The sample results are then projected over the applicable period with precision calculated.
Non-Statistical Sampling Audit Technique
Historically, The Florida Department of Revenue has used judge mental block sampling was stratified statistical sampling could not be performed.
Non-statistical sampling utilizes random sampling to remove the auditor and the business bias from the sampling selection process.
The sample selection process is determined by the form of the taxpayer records and how those records are physically stored.
Questions , call us today, speak to true experts.
Florida Sales, Use Tax Audit + Affordable Experts + Broward, Dade County, Palm Beach
by Fresh Start Tax | Sep 21, 2017 | Tax Help
Florida – Sales and Use Tax Audit Defense – With Former Agents Since 1982 + Affordable 1-866-1040
Affordable Sales Tax Experts
Use former Agents to defend your Sales Tax Audits, since 1982.
We know the system.
Florida sales tax audit insider tips.
Being former Florida sales and use tax auditors there are many misconceptions that the public has about sales and use tax audits.
You should know that the auditor does not know the extent of your liability if any until the Florida state auditor examines your records.
The auditor simply will only know information about your company from State of Florida internal records.
Florida – Sales and Use Tax Audit – Insider Tips from Former Agents
The books and records that you provide the auditor will be the basis for any audit findings.
We can help with your defense in an audit by controlling the records that are released to the auditor.
If the Florida Department of revenue contacted your company about a pending Florida sales use tax audit or you have already received the Florida form DR 840 – Notice of Intent to Audit Books and Records.
We can be your defense to a large assessment for sales tax, interest and penalty.
ou can call us today to review your tax audit papers so we can let you know the scope of the audit and a way to conduct the audit that is most beneficial to your business.
The Audit Process used by Florida Sales and Use Tax
The auditor will conduct a preliminary preparation for the audit prior to the actual start of the audit.
The auditor will obtain information from:
• examination of sales tax records on file with the Department of revenue
• business structure and activities from websites
• profile the Florida Secretary of State corporate website
• review of prior audits and results
• review of possible issues from the Florida tax law library
• standard industrial guides
• research information available on the Internet
• review any information in the audit found which includes the reasons the audit was selected.
The auditor will also conduct an analysis your company which will include:
• taxable sales compared to exempt sales
• taxable sales percentage
• amount of assets owned by a business
• results of prior audits
• Florida sales per federal tax returns versus Florida sales tax returns
• method of business operation
• business industry
• credits and exemptions taken
• change in volume of Florida activity
• tax rates
• use tax accrued on past sales tax returns
As a Former Florida Sales and Use Tax Auditor
As a former sales tax auditor this research and analysis provided the basis to prepare an industry-specific audit plan and pre-audit interview questions.
The “audit plan” or should I say the auditor’s plan of attack will be the auditor’s guide for picking low hanging fruit.
Depending on the industry the Florida Department of revenue has a specific audit plan for auditors to follow in order to capture any sales tax not paid or remitted.
In order to limit the tax exposure, our former auditor will conduct the entrance interview with the Florida state tax auditor.
The auditor will conduct the audit entrance interview with the sole purpose of learning about the business’s operation and establish a rapport with the contact person of the business.
In order to learn more about the business operations during this interview, the auditor may want to ask some typical questions such as:
• what is the main business activity.
• where are your customers located – any out-of-state customers, if so how do you account for the sales
• are there any other sources of income
• who completes the sales and use tax returns
• what control documents are available, such as chart of accounts, general ledger, sales journals, payables Journal, etc.
• are there federal returns and depreciation schedules available
• do you own or lease the business property
• if leased who’s the landlord
Analyzing financial data
The auditor will want to begin the audit with an analysis of your financial data. The analysis may begin with a review of your chart accounts and your general ledger.
This enables the auditor to gain knowledge of your accounting system in your methodology for collecting and reporting tax.
Before any financial records are released to the auditor we will examine these records prior to releasing to the auditor to ensure a minimal tax exposure.
Auditing Techniques used by Florida Sales Tax, Department of Revenue
The auditor will select an audit technique which will enable the audit to be conducted amount of time.
The technique selected will be most representative of the business for the entire audit period. More than one technique may be required during the audit depending on the business activities and it may be appropriate to use different techniques on each activity.
The Detail Sales Tax audit
A detail audit is the basic audit technique used for sales and use tax. This type of audit requires an examination of all the records for the area sales and use tax being examined.
Sampling Audit Technique
Before sampling issues, the auditor must determine if the taxpayers records are adequate, but voluminous. Rule 12-3.0012(3), F.A.C., defines adequate the voluminous records. Adequate records are defined as, “books, accounts, and other records sufficient to permit a reliable determination of the tax deficiency or overpayment. Incomplete records can be determined to be adequate”.
Percentage of Error Audit Technique
As a former auditor the percentage of error method of projecting the sampling results has been proven to give the most reliable results and the most used by The Florida Department of Revenue.
The percentage of error method calculates tax based on the tax due in the sample period (not taxable amount).
It is well suited to projecting additional tax due on transactions in multiple counties that are entered into a single exhibit.
This is due to the fact that Florida is counties have many tax rates (when accounting surtax is added to the state sales tax rate) and most dealers transactions are affected by these sales tax rates.
It is not practical to stratify a dealer’s transaction by the many different rates and sample and project tax due by every rate.
Error Ratio Tax Audit Technique
The Error Ratio method is only used when the transactions entered into it are from a single County and that single County experienced a rate change during the audit period.
The Error ratio technique produces an approximation of the amount of tax not paid by the business.
This technique is based upon the assumption that the business makes errors at about the same frequency throughout the audit period.
Rate and Ratio Sales Tax Audit Technique
The rate and ratio technique is applicable in determining the amount of tax that has not been reported on sales.
This procedure is appropriate for use when auditing businesses with a high-volume and relatively low to moderately priced taxable or exempt sales (grocery/convenience stores, bars and restaurants) that do not have dependable sales records.
Rate (effective tax rate)
The bracket system, prescribed by Sections 212.12(9) and (10), F.S., used for computing the tax due on amounts less than one dollar, results in some cases in an effective tax rate in the process of or less than the basic rate.
One extreme is a taxable sale of $.10 with the tax of one cent the results in an effective tax rate of 10%. On the other hand, a sale of $1.09 results in an effective tax rate that is less than the basic rate. During the 6% tax.
A sale of $1.09 produces an effective rate of 5.5%. When the total taxable sales and told tax collections (the amounts that should have been collected) are considered, these extremes modify the basic tax collection rate.
The resulting tax rates are unique to that business because they are based on the businesses price structure and sales.
Ratio (taxable sales to total sales)
The ratio of taxable sales to total sales is usually easier to obtain than a tax collection rate. In the ideal situation for complete records are available, the taxable sales ratio can be obtained at the same time the tax collection rate is obtained.
After transactions are analyzed and recorded, the total taxable sales are divided by the total sales to obtain the taxable sales ratio.
In the absence of detailed records, the most popular technique in use is the extrapolation (create a new information from known information) of sales from the purchase records. This technique does not produce irrefutable figures and if used by the auditor can be subject to scrutiny.
Sales Tax audit Method – “Averaging”
This method is an audit technique that works well in an audit period where there is absence of sufficient records. When the averaging technique is used, a period is selected in which all the necessary records are available.
The records for the period are then examined in detail.
This detailed information is reviewed for errors. The total errors or tax collected on the heirs is that averaged.
The averaged amount is then scheduled over the period in which there were insufficient records.
Sales Tax Audit Methodist – Stratified Statistical Sampling
Stratified statistical sampling has been used by the Florida Department of revenue since July 2001, four businesses with adequate electronic records.
Items in the population are classified into separate subgroups or strata based on one or more important characteristics, such as a dollar value.
A sample is randomly selected and audited.
The sample results are then projected over the applicable period with precision calculated.
Non-Statistical Sampling Audit Technique
Historically, The Florida Department of Revenue has used judge mental block sampling was stratified statistical sampling could not be performed.
Non-statistical sampling utilizes random sampling to remove the auditor and the business bias from the sampling selection process.
The sample selection process is determined by the form of the taxpayer records and how those records are physically stored.
by Fresh Start Tax | Sep 15, 2017 | Tax Help
We are a Christian IRS problems service business that can help you in any facet of an IRS or state tax problem. We are experts in all IRS tax matters. Since 1982 we have been handling IRS 1982 we have been handling IRS Tax Debt Matters. <><
Our Christian services range from immediate tax debt relief to stopping IRS levies and garnishments to provide efficient IRS audit defense, the settling of tax debt, payment plans in placing people into hardship.
Our 95 years of direct IRS work experience puts us in a category all by ourself. We are uniquely qualified to handle any IRS audit, collections or appellate matter as well as any state agencies deficiency problems.
Being former IRS agents we are experts in the settlement, immediate IRS levy releases, IRS payment plans, IRS tax defense for audits and any back payroll tax debt.
If you have received an IRS levy or wage garnishment within 24 hours of receiving your current financial statement we can get a full release, we can represent you during an IRS tax audit, if you owe back taxes we can settle your tax debt get you in a hardship or set up a payment plan depending on your current financial statement.
We will explain to you all your options and remedies on your initial call.
We know the system inside and out. After your first initial tax consultation we can provide an exit strategy for all cases. Let our years of experience be your best ally.
Call us today and find out all your options on how to get immediate and permanent IRS tax relief. Ask us about our faith.
You can speak to a former IRS agent or manager who has worked this system for years. You will not find more experience IRS tax experience for IRS tax problems.
Civil Penalties, Payroll
If the IRS has found you a responsible person for the trust fund penalty, call us today for free initial tax consultation and we will walk you through the process of resolving this tax at once and for all.
As former IRS agents we set up trust fund penalties against responsible persons for corporations or businesses that owed back payroll taxes.
If a company can no longer pay their back payroll taxes, the Internal Revenue Service has the right under 6672 to set up the trust fund debt against those who are held responsible. This is called the trust fund penalty.
You’ll know if you are one of these persons because you will receive IRS form 2751 & 1153 indicating a proposed notice of assessment against you.
There are various options available. As soon as we review your case we can instantly tell you ways to help resolve your problem.
Being former IRS agents and managers we know every possible solution to remedy this tax debt. We can resolve and possibly reduce your tax obligation. When you talk to us for your free initial tax consultation we will review with you every possible option to completely and permanently resolve your tax issue.
Every tax matter and problem has a resolution strategy. Generally there is a short-term strategy in a long-term strategy.
There are various options you have for IRS tax debt relief: And We Know them All
Owing Back Taxes
Before the Internal Revenue Service makes determinations on open collections accounts they need to have a universal way to make decisions.
As a general rule, they take a current financial statement on form 433F, you can find those our website.
1. hardships, or currently not collectible,
2. payments plan, and
3. the offer in compromise, if you are a qualified and suitable candidate.
4. bankruptcy is another option.
The Process of Getting IRS Tax Debt Relief on Trust Fund Tax Debt + Payroll Tax Debt
We need to look to find out if you were truly responsible under 6672 of the IRS code. many time IRS ram rods these penalties to people who truly were not responsible for trust fund taxes.
I’ve work so many cases and being a former IRS agent IRS just tries to set these penalties up against everybody and many people do not have proper representation to fight IRS.
We will carefully review your case to find out if you were truly responsible for the trust fund penalty.
We will conduct a review to find out if there is any way that we can appeal for change the assessment of this trust fund tax.
If we feel we would’ve beat this assessment through the appellate process we can go ahead and file an offer in compromise as to doubt as to liability and appeal this assessment.
If you are responsible for the tax, IRS will take a current financial statement and make a determination based on the collectibility of the tax.
How the Internal Revenue Service will work your case if you owe the IRS tax debt.
IRS will require a 433A or 433F, an individual financial statement.
You can find that form directly on our website.
Many times the IRS uses 433F, depending were the cases in the system. Cases worked in the ACS system uses shorter version of the financial statement.
If the case is worked in the local office the revenue officer will use form 433.A
That financial statement will need to be fully documented along with bank statements, copies of checks and monthly expenses.
We will walk you through the process of how the IRS will work your case in the collection action that can possibly taken.
Will also review with you the IRS national standards program on all cases for those who owe back taxes.
Once IRS reviews your current financial statement they will make a determination and generally put you in one of two categories with the option of filing an offer in compromise.
IRS has the option to:
1.IRS determines on 40% of the cases that taxpayers are put into hardship which means they can’t pay the tax at this time. Sometimes it is called currently not collectible. Cases that are placed at currently not collectible or hardship stay in there for a period of 2 to 3 years and come back out to the field at a later time.
2. 6.5 million people enter monthly payment plans and pay a certain amount based on their current documented financial statement.
Other taxpayers file an offer in compromise to settle their case for pennies on the dollar. The offer in compromise requires a lot of skill and expertise to have accepted by the Internal Revenue Service.
What is an offer in compromise?
It is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
Taxpayers who can fully pay the liabilities through an installment agreement or other means, will not be eligible for a OIC in most cases.
In order to be eligible for a OIC, the taxpayer must have filed all tax returns, made all required estimated tax payments for the current year and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
In most cases, the IRS will not accept a OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (the RCP).
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, 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 a OIC based on three grounds:
• First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this only when there is a genuine dispute as to the existence or amount of the correct tax debt under the law.
• Second, the IRS can accept a compromise if there is doubt that the amount owed is fully collectible.
Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
• Third, the IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and 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.
When submitting a OIC based on doubt as to collectibility or based on effective tax administration, taxpayers must use the most current version of:
1. Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or,
2. Form 433-B (OIC), Collection Information Statement for Businesses. A taxpayer submitting a OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
Form 656 and referenced collection information statements are available in the Offer in Compromise Booklet, Form 656-B (PDF).
In general, a taxpayer must submit a $186 application fee with the Form 656. Do not combine this fee with any other tax payments.
However, there are two exceptions to this requirement:
• First, no application fee is required if the OIC is based on doubt as to liability.
• Second, the fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656 and check the certification box.
Options: Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A “lump sum cash offer” is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum cash offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $186 application fee.
The 20 percent payment is “nonrefundable” meaning it will not be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.
Instead, the 20 percent payment will be applied to the taxpayer’s tax liability. The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent payment.
An offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted.
When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $186 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum cash offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer.
These amounts are also nonrefundable.
These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Upon acceptance of a OIC, the taxpayer may no longer designate offer payments to any specific tax liability covered in the offer agreement.
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration, and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
The offer in compromise requires a lot of skill because reviewed by several layers of Internal Revenue Service. I should know, I am former IRS agent and teaching instructor of the offer in compromise.
Call us today for a free initial tax consultation.
We are a full service tax firm.
When you call our office you will speak to true IRS tax experts. We are the fast, friendly, and affordable professional tax firm.
Christian IRS Help + IRS Tax Debt Relief Services + Collection or Audit Problems
by Fresh Start Tax | Sep 15, 2017 | Tax Help
We are an affordable Christian tax firm, Since 1982. A plus Rated. Since 1982. <><
I am a former IRS Agent and teaching instructor of the Offer Program when formerly employed at the IRS.
We know all the systems, settlement formulas and all the methodology to get you affordable IRS tax debt relief including trust fund debt problem.
Call us today to get a free review AND ASSESSMENT OF YOUR CASE.
Hear the truth from Former IRS Agents who have worked thousands of cases.
Settlements can be in the form of hardships, payment plans and excepted settlements.
Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on payroll taxes than any other taxes.
The reason for this is very simple, this tax is money held in trust in not an actual tax.
As a former IRS agent I can tell you that on a quarterly basis, federal tax deposit alerts were sent to the field in our area into which we work. Because the Internal Revenue Service pays out any W-2s submitted by employee you must expect the IRS to be tough on back payroll taxes.
It is one of few taxes that the Internal Revenue Service not only go after the company it can in addition can go after the responsible persons or individuals.
After the IRS creates individual tax assessment for those responsible it often time results in the filing of federal tax liens, bank and wage levy garnishments.
This is a tax that you should not fool around with because it is number one on the IRS to hit list. The Internal Revenue Service will individually engage those responsible under section 6672 of the Internal Revenue Code
Let Former IRS agents and managers get you immediate tax relief via a payroll tax settlement.
Offer in Compromise + Make sure you are eligible + Check with us first.
Before IRS will consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding.
Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Submit your offer
Your completed offer package will include:
• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.
Selecting a payment option OIC
Your initial payment will vary based on your offer and the payment option you choose:
• Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
• Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package fo
We should be able to make sure we can reach a reasonable settlement on your payroll tax liability and you can continue to operate your business without fear and worry from the Internal Revenue Service.
With over 60 years of direct working experience at the Internal Revenue Service we know every possible tax solution that can get you immediate and permanent tax relief for a payroll tax settlement.
IRS does not want to seize your business for back taxes due on payroll taxes, however 941 payroll taxes are a big concern for the IRS.
The Process of receiving a Payroll Tax Settlement
The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement.
You will need to provide IRS with the current financial statement along with proof that all payroll tax deposits and 941 tax forms have been filed.
Many times IRS will want a personal or individual financial statement for more responsible persons. For most company’s of the IRS payroll tax settlement may come in three forms.
Review your current financial statement Internal Revenue Service may determine that you are a hardship candidate, monthly payment agreement candidate or an offer in compromise candidate and IRS payroll settlement.
Why have Fresh Start Tax contact the IRS:
You never have to talk with the Internal Revenue Service on these tax matters;
Fresh Start Tax knows what the IRS is looking for;
Fresh Start Tax knows the exact packaging required;
Fresh Start Tax knows the next steps the IRS will take;
You know your case will be handled and resolved as fast as possible.
Other Factors To Consider
IRS has the right to sell your complete inventory at public auction;
IRS can seize all your accounts receivables;
IRS can hold you personally responsible for this tax;
IRS has the right to lock the doors of your business.
Steps to take to work out an affordable payment plan with the Internal Revenue Service:
Immediately stay current on all payroll tax deposits to show the IRS good faith;
Be prepared to give the IRS a current financial statement;
Make sure your personal tax liabilities are filed and paid;
Have all documentation on the financial statement prepared for the IRS.
If you do not pay your Payroll Taxes IRS can collect them from you individually
To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.( trust fund recovery penalty )
These payroll taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.
The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business.
The business does not have to have stopped operating in order for the TFRP to be assessed
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) ore 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 wilfulness to exist, the responsible person:
Must have been, or should have been, aware of the outstanding 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 willfulness. You will 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 than to determine which creditors would or would not be paid.
Figuring the Trust Fund 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 the IRS determines 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. Refer to Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don’t Agree (PDF), for a clear outline of the appeals process. If you do not respond to our letter, we will assess the penalty against you and send you a Notice and Demand for Payment.
Once we assert the penalty, the IRS can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.
Free initials, always.
Owe Back Taxes + Individual, Payroll Taxes + Tax Debt Relief + 941 Taxes Owed + Settlements + Offer in Compromise + Vero Beach + 32960, 32962, 32963, 32966, 32967, 32968 + Indian River County Experts
by Fresh Start Tax | Sep 15, 2017 | Tax Help
We are affordable professional Christian tax firm that can stop an IRS tax levy garnishment immediately. Since 1982 A+ rated by the BBB. We guarantee all of our work. <><
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We are composed of CPAs and former IRS agents who have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional offices of the Internal Revenue Service.
There is a very specific system used to get an IRS tax levy released, whether it be a bank levy or wage garnishment levy. Being former IRS agents we know the system.
Not only were we former IRS agents and teaching instructors we also taught new IRS agents or jobs. When you have received an IRS tax levy it only makes sense to have former IRS agents provide you tax levy defense and case settlements all at the same time.
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We can stop your IRS tax levy right now and settle your case at the same time.
Within 24 hours of receiving your current documented financial statement we can get an IRS bank levy or wage garnishment levy released and settle your case all at the same time.
IRS will close and settle your case generally one of three ways. (usual cases )
After a review of your current financial statement (433f ) IRS will place you either into :
1.currently not collectible status,
2. ask you for a monthly payment agreement or
3. you could submit an offer in compromise if you are a qualified and suitable candidate.
We will review with you your options to find out which is the best fit based on your current financial condition. Remember, your documented financial statement holds the key.
Call us today for a free initial tax consultation.
For the Record : What is a IRS Tax Levy?
A levy is a legal seizure of your property to satisfy a tax debt.
Levies are different from liens.
A lien is a legal claim against property to secure payment of the tax debt, while a levy actually takes the property to satisfy the tax debt.
Where does Internal Revenue Service (IRS) authority to levy originate?
The Internal Revenue Code (IRC) authorizes levies to collect delinquent tax. See IRC 6331. Any property or right to property that belongs to the taxpayer or on which there is a Federal tax lien can be levied, unless the IRC exempts the property from levy.
What actions must the Internal Revenue Service take before a IRS tax levy can be issued?
The IRS will usually levy only after these three requirements are met:
1• The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill);
2• You neglected or refused to pay the tax; and
3• The 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.
The 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 the 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.
When will the IRS issue IRS tax levy garnishments?
If you do not pay your taxes (or make arrangements to settle your debt), and the IRS determines that a levy is the next appropriate action, the IRS may levy any property or right to property you own or have an interest in.
For instance, the 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).
Call us today and hear the truth about your case.
Stop your IRS tax levy within 48 hours and settle your case at the same time.
A word of the wise, when you call their tax relief companies many times you are speaking to a salesperson and not the person who will be working your case.
We are true tax experts, since 1982. We have released hundreds and hundreds of levy since 1982 and settle tax debt to same time.
IRS Tax Levy Garnishment + Stop Levies NOW + Settle Tax Debt + Christian Tax Services
by Fresh Start Tax | Sep 14, 2017 | Tax Help
We are an affordable team of Christian IRS tax audit experts, former IRS agents and managers, since 1982. <><
We have a nationwide tax practice.
We know the IRS audit and appeals system inside and out.
Not only were former IRS agent sand teaching instructors and supervisors within the IRS audit system. We have over 95 years working the system.
You want to hire IRS agents because of their knowledge of the working system of Internal Revenue Service.
There a lot of methodologies to working IRS cases , all our experiences can collaborate into the very best tax result possible.
Many profess to be experts in the area of IRS tax audits but unless you have handled thousands of cases and been involved in the system on a daily basis you do not know the complete working system of Internal Revenue Service.
When you are involved in an IRS tax audit you also want to be able to fix the problem so IRS does not come after you in the future. We can help audit proof your tax return.
When you call for your initial tax consultation we will fully review the scope of your case give you an expert opinion on the likelihood of settlement in different options.
What are the chances of an IRS Audit? Less than one percent, that’s it . Because of budget cuts you can expect that number to sink each and every year.
If you got an audit letter, you are very unlucky. Nasty grams are no fun.
And the chances are, there’s a very specific reason why you got in IRS audit letter.
At Fresh Start Tax LLC you will be represented by a Christian CPA or Christian former IRS agent who knows the system and can provide your very best tax audit defense.
If we cannot settle your case at the local office will take your case to the Appellate Division or settlements and the best deals are usually made.
We know this from our years of IRS experience.
It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax audit and give you the most experienced and successful expert IRS Tax Audit Help.
We can also tell you how to help audit proof your return in the future.
IRS audits are very predictable and after reviewing thousands of tax returns over the years we can tell you which cases are going to be subject for IRS tax audits.
ALERT : Facts about IRS Tax Audits: These facts are based from last year.
• The IRS audits a total of 1,391,581 tax returns a year. This number goes up or down depending on the IRS budgets for tax audits. with current budgetary cuts that number continues to shrink each and every year.
• The IRS field agents complete more than 310,000 audits by office or business visits a year,
• The IRS completes over 1,081,152 correspondence audits a year. IRS collects a little over $5 million a year from his correspondence audits,
• IRS has installed new software tracking systems with the development of the CADE 2 computer to spot and recognize tax audits more proficiently,
• IRS employs over 13,000 IRS auditors.
• $5.2 billion dollars are collected through the IRS document matching program. These programs are W-2 and 1099 oriented.
• For truly professional IRS Tax Audit help contact former IRS Agents and Managers.
The Secret Formula: How The IRS Picks Audits
The IRS uses a quantitative method called discriminate Analysis to identify the ‘underreporters’ from the normal returns, driven largely by the following details.
• Schedule A Ratio: They’ll audit you if your schedule A (Itemized) deductions are more than 44% of your income.
• Schedule C Ratio: They’ll audit you if your ratio of schedule C (Business) deductions is more than 63% of income.
• Schedule F Ratio: They’ll audit you if your ratio of schedule F (Farm) deductions is more than 67% of income.
• Audits are 4x more likely if you own a business and 2x if you own a farm.
IRS has always focused on high earners:
◦ Audits 5x more likely if your income is above $100,000.
◦ 20% chance of audit if you make $10+ million. (20x the average audit rate)
◦ 12% chance of audit if you make $5-10 million. (12x the average audit rate)
• Occupation affects your audit likelihood
◦ 22% of business and personal services companies are audited every year.
◦ 16% of building contractors are audited every year.
ALERT : The IRS Tax Audit Examination Plan:
What you Need to Know about the IRS
The IRS audit plan that is used by the IRS is based on long-range coverage planning, and objectives on the resources requested in the Congressional Budget.
From this, there is an established plan where staff years are allocated to all area IRS offices using resource allocation and a prescribed methodology.
Each Area Manager of the IRS is responsible for preparing an area response following instructions from the National Headquarters.
Why the IRS Audits Tax Returns
IRS Tax Audits : Although there are a variety of reasons listed below some are the most common.
a. Front Loaded Programs
Front Loaded programs are those tax audits that IRS DC headquarters has determined are very important and a considerable amount of time must be spent on these programs and activities. Each area has discussions within management as to what the programs should be for each region, district, and office.
Some of the programs are:
• Special enforcement programs – An example of this may be compliance of all flee market vendors, a program I was involved with
• High Income non-filers – The IRS would get their information from a match program of w-2’s and 1099’s and match up social security numbers against filed returns
• Abusive Tax Avoidance – This could be in the area of offshore activities
• Offshore credit card program
• National Research programs – Those set forth by management after doing a trends project
• FBAR filing – IRS is currently targeting those with overseas bank accounts
• Non- filers – IRS is presently forming a task force to seek non-filers though aggressive means.
b. The IRS makes sure there is balanced coverage.
The National Office makes sure there is a balanced approach for audit return delivery and tax compliance. Resources and inventory and the size of personnel all go into this formula.
IRS focuses are blended into these areas:
1. Individual returns less than $100,000.
2. Individual returns greater than $100,000 but less than $200,000.
3. Individual returns greater than $ 200,000.
4. Small Business Corporations.
5. Small Business Flow-Through Entities – S Corporations, Fiduciaries and Partnerships.
c. Classification Plan
The IRS will prepare a plan, which is classified. A National DIF score indicator is placed on all Federal Income tax returns that are filed.
Each tax return has certain factors that contribute to its score such as Gross Income, Adjusted Gross Income and line item expense.
There are several classified secrets that go into the DIF score.
Each tax return is processed through the IRS computer line item by line item.
A DIF score label is placed on every tax return with its DIF number.
A tax examiner or Revenue Agent manually eyeballs each and every tax return with a high DIF score.
The examiner then determine which return has the highest probability of tax audit success.
d. DIF Cutoff Score, this is the most common reason for audit. each and every tax return has a DIF score, this stands for discriminatory index function.
The IRS will calculate the Area DIF cutoff score for each activity code, giving consideration to the selection rate.
This is the lowest DIF score necessary to secure the number of returns required for audit. For example, if the return plan shows 225 returns for an activity code and the selection rate is 70%, the IRS will need to order 321 returns (225/70%).
The DIF Cut off Score is 500. The number of returns with DIF scores greater than 550 is 280, which is less than the number of returns required, so the lowest DIF score on an ordered return will be in the range of 500 to 550 and the DIF cutoff score is 500.
All tax returns are graded by the Internal Revenue Service. That’s right, each and every tax return has a DIF score.
There is a label placed on the back of every tax return that grades audit potential.
Much of the audit numbers are predicated on the budget that Congress gives to the IRS.
Over the last couple years the number of audits are going down by small percentages simply because they do not have working staff to handle all the IRS audits that are truly needed. It is not wise to play the audit lottery.
Call us today for a free initial tax consultation and we will review your tax returns, go over best case scenarios and talk about your IRS tax defense for an IRS audit.
IRS Tax Audit Help & Experts, Appeals Specialists + Christian Tax Experts
