by Fresh Start Tax | Jun 6, 2016 | Tax Help
I Received a Letter from IRS about EITC or I Am Being Audited, What Should I Do?
Don’t ignore the letter (notice). Follow the directions on the your letter. All the information you need is in your letter.
This page explains your notice and gives tips on what you need to do now.
My Letter Says I May Qualify for EITC; What Should I Do?
We sent you a letter (notice) because our records show you may be eligible for the EITC but didn’t claim it on your tax return.
First, find out if you qualify for EITC by following the steps shown in your notice. You can find out more about What you Need to Do and What we Will Do by using one of the links below. You can find your notice number in the top right corner of your notice.
• Notice Number: CP09
• Notice Number: CP27
If you need more help, you can:
• use the EITC Assistant for the tax year shown on your notice.
It helps you find out if you qualify for EITC with or without a qualifying child
OR
• review the Do I Qualify for EITC? page
My Letter Says I Need to Send Information to Verify My EITC Claim; What Should I Do?
We’re auditing your tax return and need information from you to verify the EITC you claimed. We may be holding your refund of the following credits: EITC also called EIC, ACTC (Additional Child Tax Credit), the PTC (Premium Tax Credit) and the AOTC (American Opportunity Tax Credit). We will hold this refund pending the results of your audit.
Don’t ignore this notice.
Find out more about What you Need to Do and What we Will Do by using one of the links below.
You can find your notice number in the top right corner of your notice.
• Notice Number: CP75
• Notice Number: CP75A
Find help resolving your audit through:
• Reading our Tax Topic which explains the next steps
•
My Notice Says We Changed Your Tax Return that Affected Your EITC Claim; What Should I Do?
We changed your tax return because we believe you had an error that affected your EITC.The error could be:
• A missing or incorrect Social Security number for exemptions, dependents or credits
• The age of child is not consistent with the credit requirements
• A missing schedule or form; such as the Form 8862 or Form 8862-SP
• An addition, subtraction, multiplication or division error on your return
• An incorrect information from a tax table, worksheet, schedule or form
Find out more about What you Need to Do by using one of the links below.
You can find your notice number in the top right corner of your notice.
• Notice Number: CP10A
• Notice Number: CP11A
• Notice Number: CP12A
• Notice Number: CP13A
Note: If you are or were required to file Form 8862 or Form 8862-SP or your EITC was previously disallowed and now you want to claim EITC, see My EITC was Disallowed Previously and Now I Want To Claim EITC.
My Letter Says IRS has Important Information about My EITC Tax Return; What Should I Do?
New for 2016. We are sending letters to people who claimed the EITC when our records don’t match the information on his or her tax return. If you get one of these letters, you are not being audited but we do want you to review your return to make sure it is complete and correct.
If you claimed the EITC in error, file a Form 1040X (Form 1040X instructions) amended return to correct it. See Ten Facts on Filing an Amended Return here.
Also you can use the information when you file your next tax return to help you understand the rules for claiming the EITC and reporting your income correctly.
The new letters are:
• Letter 5621, Make sure your children meet the criteria for claiming the EITC
This letter asks you to review your tax return to make sure the children claimed on the tax return for EITC each met all the qualifying children rules for the credit.
• Letter 5621-A, Make sure the income and expenses you reported on your Schedule C or Schedule C-EZ are correct
This letter asks you to review your tax return to determine if all the income and expenses reported on your Schedule C or C-EZ are complete and correct.
My Notice Says, We’re not allowing your credit; What Should I Do?
You were banned from claiming the Earned Income Credit (EIC) for two or ten years for your intentional disregard of the rules or a fraudulent claim. Since your ban is still in effect, we disallowed the EIC for this tax year.
Your notice is a CP75C.
In about 30 days, you will get another notice, the Statutory Notice of Deficiency. If you agree, sign and return the notice to us.
If you believe the ban was incorrectly applied, you need to request an audit reconsideration for the year we banned you. Learn more about an audit reconsideration on the IRS Audit page.
by Fresh Start Tax | Jun 6, 2016 | Tax Help
What to Know about Late Filing and Late Paying Penalties
What you should know about these penalties.
1. Two penalties may apply.
If you file your federal tax return late and owe tax with the return, two penalties may apply. The first is a failure-to-file penalty for late filing.
The second is a failure-to-pay penalty for paying late.
2. Penalty for late filing.
The failure-to-file penalty is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. It will not exceed 25 percent of your unpaid taxes.
3. Minimum late filing penalty.
If you file your return more than 60 days after the due date or extended due date, the minimum penalty for late filing is the smaller of $135 or 100 percent of the unpaid tax.
4. Penalty for late payment.
The failure-to-pay penalty is generally 0.5 percent per month of your unpaid taxes. It applies for each month or part of a month your taxes remain unpaid and starts accruing the day after taxes are due. It can build up to as much as 25 percent of your unpaid taxes.
5. Combined penalty per month.
If the failure-to-file penalty and the failure-to-pay penalty both apply in any month, the maximum amount charged for those two penalties that month is 5 percent.
6. File even if you can’t pay.
In most cases, the failure-to-file penalty is 10 times more than the failure-to-pay penalty. So if you can’t pay in full, you should file your tax return and pay as much as you can.
7. Late payment penalty may not apply.
If you requested an extension of time to file your income tax return by the tax due date and paid at least 90 percent of the taxes you owe, you may not face a failure-to-pay penalty. However, you must pay the remaining balance by the extended due date.
8. No penalty if reasonable cause.
You will not have to pay a failure-to-file or failure-to-pay penalty if you can show reasonable cause for not filing or paying on time.
There is also penalty relief available for repayment of excess advance payments of the premium tax credit for 2014.
by Fresh Start Tax | Jun 3, 2016 | Tax Help
We are an Affordable Tax Firm that can give you a definite plan of action to completely resolve your IRS problems, since 1982.
Late Filed Tax returns, no problem, File and Settle at the Time.
Most taxpayers who owe back taxes put their head in the sand because they have failed to file tax returns are usually afraid to deal with Internal Revenue Service because they have not filed late tax returns.
Stop the fear, settle before IRS contacts you.It is so very easy.
As a former IRS agent I can tell you now this problem is not going to go away and after you speak to us you will understand the system and we can give you a very definitive affordable plan to deal with your late taxes and settle your tax debt with Internal Revenue Service.
We can file all your back or late tax returns with little or no all tax records. We are tax reconstruction experts.
I am a former IRS agent and teaching instructor who accepted offers in compromise, under understand the methodologies the programs and have taught other IRS agents the tax debt forgiveness program called the offer in compromise or what is known as the pennies on the dollar settlement.
We are true affordable IRS tax experts with over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of IRS. Former IRS Instructors, Managers. ne.
IRS Tax Relief Programs Options For those who owe Back Taxes, Settle you Taxes Debt Now
IRS has various systems for tax debt relief.
IRS will take a current financial statement and will make decisions predicated on your current financial statement.
As a general rule cases with IRS will close in one of three ways.
IRS will either place into a non-collectible status, ask for a payment or installment agreement or you have the option to file for an offer in compromise.
After you review your financial statement with you we will provide a program for you to move forward to settle your tax debt with the Internal Revenue Service if you owe back taxes.
Tax Relief Stats:
Internal Revenue Service places 40% of all those who owe back taxes into current hardships, IRS places 6.5 million people into current payment or installment programs. Over 16 million taxpayers do not pay their current tax bills.
The IRS accepted 38,000 offers in compromise last year for an average settlement of $4000 per case, that is completely dependent on your current documented financial statement.
Over 16 millions do not filed tax return yearly.
When you call us we will review with you all the different settlement options.
Important Notice regarding Offer in Compromise
Beginning immediately: The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS always consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
The Offer in Compromise + Settling Your Tax Debt
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
Important Making sure you are eligible for tax debt relief
Before we can 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 for tax debt relief for pennies on a dollar
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). 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.
Select a payment tax relief option
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 for details.
Understand the tax relief process for pennies on a dollar
While your offer is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Late Filed Tax Returns Because You Owe Back Taxes + Settle Your IRS Taxes Now + Former IRS
by Fresh Start Tax | Jun 3, 2016 | Tax Help
as Jerry
Do not spend any money on any tax debt forgiveness program or offer in compromise program unless you know you are a qualified candidate, you may be wasting your money.
Call us today for a free initial tax consultation and hear the truth from a former IRS agent and teaching instructor of the offer in compromise program.
I am a true tax expert for the offer in compromise program.
I am a former IRS agent in teaching instructor who accepted offers in compromise, under understand the methodologies the programs and have taught other IRS agents the tax debt forgiveness program called the offer in compromise or what is known as the pennies on the dollar settlement.
We are true affordable IRS tax experts with over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of IRS. Former IRS Instructors, Managers. ne.
IRS Tax Relief Programs Options For those who owe Back Taxes
IRS has various systems for tax debt relief.
IRS will take a current financial statement and will make decisions predicated on your current financial statement.
As a general rule cases with IRS will close in one of three ways.
IRS will either place into a non-collectible status, ask for a payment or installment agreement or you have the option to file for an offer in compromise.
After you review your financial statement with you we will provide a program for you to move forward to settle your tax debt with the Internal Revenue Service if you owe back taxes.
Tax Relief Stats:
Internal Revenue Service places 40% of all those who owe back taxes into current hardships, IRS places 6.5 million people into current payment or installment programs. Over 16 million taxpayers do not pay their current tax bills.
The IRS accepted 38,000 offers in compromise last year for an average settlement of $4000 per case, that is completely dependent on your current documented financial statement.
When you call us we will review with you all the different settlement options.
Important Notice regarding Offer in compromise
Beginning immediately: The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS always consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
The Offer in Compromise + Owe Back IRS Tax Debt & Settling for Pennies on a Dollar
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
Important Making sure you are eligible for tax debt relief
Before we can 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 for tax debt relief for pennies on a dollar
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). 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.
Select a payment tax relief option
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 for details.
Understand the tax relief process for pennies on a dollar
While your offer is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Owe Back IRS Tax Debt & Settling for Pennies on a Dollar + Former IRS Explains
by Fresh Start Tax | Jun 3, 2016 | Tax Help
We are true affordable IRS tax experts with over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of IRS.
Former IRS Instructors, Managers. We Know Tax Relief. We Know the IRS!
Hear the truth about Tax Debt Forgiveness program BEFORE you spend any money.
As a former IRS agent I was a specialist in the Tax Debt Forgiveness Program called the offer in compromise. We know the system inside and out.
We understand all the methodologies in the system and can get you immediate and permanent relief from the Internal Revenue Service billing machine.
IRS Tax Relief Programs Options
You will find your tax relief options below that you will find called the offer in compromise program.
When you call our office we were review with you to find out if are a tax debt settlement candidate to settle your debt for pennies on the dollar.
We have been in practice since 1982 in a true affordable and honest tax experts who can help solve your problems.
Call us for a free initial tax consultation
IRS Tax Debt Forgiveness Relief Stats:
The IRS accepted 38,000 offers in compromise last year for an average settlement of $4000 per case, that is completely dependent on your current documented financial statement.
The average wait time is 9 months, 7500 cases right now in the collection queue.
When you call us we will review with you all the different settlement options.
Important: Notice regarding Offer in compromise
Beginning immediately: The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS always consider your unique set of facts and circumstances: Everyone is different,
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
Important: Making sure you are eligible for tax debt relief
Before we can 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 for tax debt forgiveness relief
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). 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.
Select a payment tax relief option
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.
You should 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 for details.
Understand the tax relief process
While your offer in compromise is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Free consultations and its assessments are available on your free initial call.
by Fresh Start Tax | Jun 3, 2016 | Tax Help
If you have received any IRS tax bill notice contact us today for free initial tax consultation. Since 1982. True Affordable, IRS Expert Tax Relief Help.
We are true affordable IRS tax experts with over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of IRS. Former IRS Instructors, Managers. We Know Tax Relief. We Know the IRS!
We understand all the methodologies in the system and can get you immediate and permanent relief from the Internal Revenue Service billing machine.
Tax Relief Programs Options
You will find your tax relief options below that you will find called the offer in compromise program
I am a former IRS agent in teaching instructor of the offer in compromise program.
When you call our office we were review with you to find out if are a tax debt settlement candidate to settle your debt for pennies on the dollar.
We have been in practice since 1982 in a true affordable and honest tax experts who can help solve your problems.
Call us for a free initial tax consultation
Tax Relief Stats:
The IRS accepted 38,000 offers in compromise last year for an average settlement of $4000 per case, that is completely dependent on your current documented financial statement.
When you call us we will review with you all the different settlement options.
IRS Tax Bills and Notices
IRS sends out millions and millions of IRS tax bills and notices.
Over 16 million taxpayers do not pay their annual taxes and the chief collection tool of the Internal Revenue Service to follow-up for those who owe back taxes are through series of five notices sent by Internal Revenue Service.
They are sent on 5 week billing cycles.
You have a balance due (money you owe the IRS) on one of your tax accounts.
It is important that you check the IRS billing statements to make sure they are accurate and correct.
You must also make sure you answer all IRS correspondence because IRS does not allow these billing notices to slip through the cracks.
IRS always follows up!
Every five weeks you will continue to receive an IRS tax bill notice in the language gets harsher and harsher.
At some point in time you will receive a final notice and demand and if its is not is answered, IRS will send out as a general rule and IRS bank or wage garnishment levy and sometimes they send out an IRS federal tax lien.
IRS sends out 1.5 million bank and wage garnishments levies a year.
What to Do Next
Step One, is to make sure the IRS is correct in their billing information.
Step Two, is to contact the us or the Internal Revenue Service to take care of this tax debt obligation.
In cases where you cannot pay the IRS, IRS have options to place taxpayers into:
1. a currently not collectible status,
2. payment agreements or,
3 . may file an offer in compromise to settle their tax debt for pennies on the dollar.
Contact us today for a free initial tax consultation to learn about any IRS Notice or Tax Bill.
Our 65 years of professional IRS tax experience are well worth your time. Since 1982, A+ rated by the Better Business Bureau. We are true IRS tax experts and specialty in the IRS collection on the divisions.
Important Notice regarding Offer in compromise
Beginning immediately: The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS always consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
Important Making sure you are eligible for tax debt relief
Before we can 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 for tax debt relief
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). 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.
Select a payment tax relief option
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 for details.
Understand the tax relief process
While your offer is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
IRS Tax Bills & Tax Notice + Tax Relief Programs + Settlement Options
