Asher Mellul + Fresh Start Tax LLC + No Longer Associated with Firm.
Asher Mellul is no longer associated with Fresh Start Tax LLC.
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Get IRS Tax Information for Student Financial Aid Applications
IRS Offers Help to Students, Families to Get Tax Information for Student Financial Aid Applications
The U.S. Department of Education today announced the IRS Data Retrieval Tool is now available for borrowers applying for an income-driven repayment plan.
New encryption protections have been added to the Data Retrieval Tool to further protect taxpayer information. The IRS Data Retrieval Tool will return Oct. 1, 2017, on the online 2018–19 Free Application for Federal Student Aid (FAFSA®) form.
Update April 7, 2017: See Also: Questions and Answers:
Mailings about suspicious activity related to the DRT and FAFSA
Update March 30, 2017:
Internal Revenue Service (IRS) and U.S. Department of Education Office of Federal Student Aid (FSA) Statement about the IRS Data Retrieval Tool (DRT)
You must have information from your tax return in order to file a Free Application for Federal Student Aid (FAFSA®) or apply for an income-driven repayment plan.
The IRS Data Retrieval Tool (DRT) used to access your tax information for the FAFSA and income-driven repayment (IDR) plan applications is currently unavailable.
This does not limit an individual’s ability to apply for aid or an IDR plan. Applicants can manually provide their tax return information.
The online FAFSA and IDR applications remain operational, and applicants can continue filing the FAFSA or applying for an IDR plan as they normally would.
Getting Your 2015 Tax Return Information For the 2016–17 and 2017–18 FAFSA
Applicants filing a 2016–17 or 2017–18 FAFSA must use data from their 2015 tax returns.
You should always retain a copy of your tax return, either electronically or on paper, and keep it in a secure place.
If you did not keep a copy of your tax return, here are some options:
Access the tax software product you used to prepare and file your 2015 return. You may be able to access your account to download/print a copy.
Contact the tax preparer/provider who filed your 2015 return if you used a tax professional.
Download your tax transcript (a summary) at Get Transcript Online. Review the rigorous identity authentication requirements for Secure Access before attempting to register.
Use Get Transcript by Mail and a transcript will be mailed to the address on your return within five to 10 days.
Call our automated line at 800-908-9946 to order a transcript by mail.
If you filed an amended tax return, Form 1040X, you should use the adjusted gross income and earned income listed on your revised tax return.
Getting Your Alternative Documentation For IDR Applications
IDR plan applicants must submit alternative documentation of income to their federal loan servicers after they complete and submit the online IDR application.
The process for submitting the alternative documentation of income is explained to borrowers as part of the online IDR application.
As a general rule, alternative documentation of income consists of copies of pay stubs or most recently filed tax return
IRS: Home Office Deduction Often Overlooked by Small Business Owner + Home Deductions
IRS: Home Office Deduction Often Overlooked by Small Business Owners
The Internal Revenue Service today reminded small business owners who work from a home office that there are two options for claiming the Home Office Deduction.
The Home Office Deduction is often overlooked by small business owners.
As part of National Small Business Week (April 30-May 6), the IRS is highlighting a series of tips and resources available for small business owners.
The Regular Method
The first option for calculating the Home Office Deduction is the Regular Method.
This method requires computing the business use of the home by dividing the expenses of operating the home between personal and business use.
Direct business expenses are fully deductible and the percentage of the home floor space used for business is assignable to indirect total expenses. Self-employed taxpayers file Form 1040, Schedule C , Profit or Loss From Business (Sole Proprietorship), and compute this deduction on Form 8829, Expenses for Business Use of Your Home.
The Simplified Method
The second option, the Simplified Method, reduces the paperwork and recordkeeping burden for small businesses.
The simplified method has a prescribed rate of $5 a square foot for business use of the home.
There is a maximum allowable deduction available based on up to 300 square feet.
Choosing this option requires taxpayers to complete a short worksheet in the tax instructions and entering the result on the tax return.
There is a special calculation for daycare providers. Self-employed individuals claim the home office deduction on Form 1040, Schedule C , Line 30; farmers claim it on Schedule F, Line 32 and eligible employees claim it on Schedule A, Line 21.
Regardless of the method used to compute the deduction, business expenses in excess of the gross income limitation are not deductible.
Deductible expenses for business use of a home include the business portion of real estate taxes, mortgage interest, rent, casualty losses, utilities, insurance, depreciation, maintenance and repairs.
In general, expenses for the parts of the home not used for business are not deductible.
Deductions for business storage are deductible when the dwelling unit is the sole fixed location of the business or for regular use of a residence for the provision of daycare services; exclusive used in most cases.
Former IRS Agent + IRS Tax Representation and Tax Consultations
Michael D. Sullivan – Former IRS Revenue Officer & Teaching Instructor 1-866-700-1040
He had a distinguished career with the Internal Revenue Service for 10 years.
Call him for a free consultation on a pending IRS matter.
As a veteran IRS Revenue Officer / Agent, he served as an Offer in Compromise Tax Specialist and Large Dollar Case Specialist.
He also collaborated with the U.S. Attorney’s office on undercover operations. Michael received several awards for his work and dedication as a IRS Agent.
During his tenure with the IRS, he was a Certified Tax Instructor who taught out of the Atlanta Regional IRS Training Offices.
He also taught out of the local and district offices of the IRS. Mr. Sullivan trained many of the new IRS Agents.
Michael has been in private practice for the last 33 years in the field of Taxpayer Consultation for IRS Audit and Collection tax resolution issues.
He often consults with corporations and individuals, which involves a wide range of tax issues. Michael has worked many large complex cases for high net worth individuals and large corporations.
Mr. Sullivan is a committed professional with dedicated involvement in the tax profession community as a frequent speaker on the South Florida circuit and also served as an officer and on the Board of the Greater South Florida Tax Council.
Michael has been the program host and moderator for several Internal Revenue Service forums both in the public and professional sectors.
Mr. Sullivan is also registered with the Department of Business and Professional Regulation and has an approved class for IRS Collection Matters for Certified Public Accountants and Attorneys. Course # 0012279 expires 11/04/2019.
Mr. Sullivan has been a featured speaker in the credit card industry, student loan and the debt settlement vertical as well.
Mr. Sullivan has also appeared on FOX BUSINESS NEWS
http://video.foxbusiness.com/v/4147654259001/tips-for-getting-through-to-the-irs/?#sp=show-clips
Contact, 1-866-700-1040 and speak directly for Mr. Sullivan.
Reducing IRS Tax Debt Obligation + IRS Offer in Compromise +Former IRS
We are offer in compromise specialists, experts. Since 1982 .
I both worked and taught the offer in compromise program at Internal Revenue Service.
We know the System. Former instructors at the IRS.
WE ARE YOUR BEST OPTION FOR ACCEPTANCE!!!! We accepted them as former IRS employees, we know the system!
We offer free consultations to make sure you qualify for the offer.
You should also know there is an IRS pre-qualifier tool for those do-it-yourselfers.
You never want to file an offer unless you know you are prequalified. Upon an immediate review of your case we will let you know whether it is worth your time or money to file the offer in compromise.
Approximately 40% of all offers are accepted by the Internal Revenue Service. I am a former IRS revenue officer who both worked and taught the offer in compromise program when employed at Internal Revenue Service. I know the complete system of IRS.
FREE CONSULTS, HEAR THE TRUTH.
The OIC : What You need to know
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a 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, won’t qualify for a OIC in most cases.
To qualify 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 won’t accept a OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (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.
Reasons for an IRS Offer
The IRS may accept a OIC based on 3, three grounds:
• First, the IRS can accept a compromise if there’s doubt as to liability. A compromise meets this only when there’s 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’s 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’s 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.
IRS Forms to Use, the only forms that may be used
When submitting a OIC based on doubt as to collectibility or effective tax administration, taxpayers must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or 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).
The IRS Application Fee
In general, a taxpayer must submit a $186 application fee with the Form 656. Don’t 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 isn’t 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 1 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 1 of Form 656 and check the certification box.
Payment Options for the OIC
IRS Lump Sum Cash Offer
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 won’t 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.
IRS Periodic Payment Offer
An offer is called a “periodic payment offer” under the tax law if it’s 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 an OIC, the taxpayer may no longer designate offer payments to any tax liability specifically covered in the offer agreement.
Suspension of IRS Collection Action
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.
IRS Offer Terms
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. If the taxpayer doesn’t abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When a OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.
Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Right to IRS Appeal
If the IRS rejects a OIC, the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter.
IRS Return of an Offer
In some cases, an OIC is returned to the taxpayer rather than rejected, because the taxpayer didn’t submit necessary information, filed for bankruptcy, failed to include a required application fee or nonrefundable payment with the offer, hasn’t filed required tax returns, or hasn’t paid current tax liabilities at the time the IRS is considering the offer.
A returned offer is different from a rejection because there’s no right to appeal when the IRS returns the offer.
However, once current, the offer may be submitted again.
Call us today for a free initial tax consultation and we will walk you through the process and make sure you are prequalified before filing.
Reduce Tax Obligation through IRS Offer in Compromise + Former IRS + Ft.Lauderdale, Miami, West Palm Beach
We are Former IRS Agents who worked out of the South Florida IRS offices. We are offer in compromise specialists,experts. Since 1982. 954-492-0088
I both worked and taught the offer in compromise program at Internal Revenue Service.
We know the System. 954-492-0088, former instructors at the IRS.
WE ARE YOUR BEST OPTION FOR ACCEPTANCE!!!! We accepted them as former IRS employees, we know the system!
We offer free consultations to make sure you qualify for the offer.
You should also know there is an IRS pre-qualifier tool for those do-it-yourselfers.
You never want to file an offer unless you know you are prequalified. Upon an immediate review of your case we will let you know whether it is worth your time or money to file the offer in compromise.
Approximately 40% of all offers are accepted by the Internal Revenue Service. I am a former IRS revenue officer who both worked and taught the offer in compromise program when employed at Internal Revenue Service. I know the complete system of IRS.
FREE CONSULTS, HEAR THE TRUTH. 954-492-0088
New updated info:
Offer in Compromise applications received on or after March 27, 2017, will now be returned without consideration if taxpayers haven’t filed all required tax returns.
The application fee will be returned and any required initial payment submitted with the OIC will be applied to outstanding tax debt. This new policy doesn’t apply to current year tax returns if there is a valid extension on file.
The OIC : What You need to know
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a 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, won’t qualify for a OIC in most cases.
To qualify 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 won’t accept a OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (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.
Reasons for an IRS Offer
The IRS may accept a OIC based on 3, three grounds:
• First, the IRS can accept a compromise if there’s doubt as to liability. A compromise meets this only when there’s 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’s 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’s 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.
IRS Forms to Use, the only forms that may be used
When submitting a OIC based on doubt as to collectibility or effective tax administration, taxpayers must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or 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).
The IRS Application Fee
In general, a taxpayer must submit a $186 application fee with the Form 656. Don’t 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 isn’t 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 1 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 1 of Form 656 and check the certification box.
Payment Options for the OIC
IRS Lump Sum Cash Offer
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 won’t 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.
IRS Periodic Payment Offer
An offer is called a “periodic payment offer” under the tax law if it’s 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 an OIC, the taxpayer may no longer designate offer payments to any tax liability specifically covered in the offer agreement.
Suspension of IRS Collection Action
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.
IRS Offer Terms
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. If the taxpayer doesn’t abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When a OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.
Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Right to IRS Appeal
If the IRS rejects a OIC, the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter.
IRS Return of an Offer
In some cases, an OIC is returned to the taxpayer rather than rejected, because the taxpayer didn’t submit necessary information, filed for bankruptcy, failed to include a required application fee or nonrefundable payment with the offer, hasn’t filed required tax returns, or hasn’t paid current tax liabilities at the time the IRS is considering the offer.
A returned offer is different from a rejection because there’s no right to appeal when the IRS returns the offer.
However, once current, the offer may be submitted again.