by Fresh Start Tax | Dec 8, 2015 | Tax Help
We are affordable IRS tax experts, former IRS agents, tax attorneys and CPAs. We know the system inside and out, since 1982.
Call us today for a free initial tax consultation and we will review any IRS or state tax problems that you have.
If you owe back taxes to the Internal Revenue Service and have unfiled tax returns we can go ahead complete your back tax returns and settle your case all at the same time.
Call us today for a free initial tax consultation and we will walk you through the process.
Settling of Back Tax Debt
To settle any tax debt with the Internal Revenue Service will need to review individual and business financial statements. As a general rule, once those financial statements are reviewed IRS will compare those against the national and localized standards.
Once IRS’s received a fully documented financial statement including bank statements and documented receipts of expenses IRS will close the case and one of three ways.
IRS may determine you are a:
1 . Current hardship in place you went to a current non-collectible status,
2.IRS may determine that you can make monthly payments, or,
3.IRS may contemplate the acceptance of an offer in compromise.
The IRS Offer in Compromise
The offer in compromise allows taxpayers settle the debt for pennies on a dollar if they are qualified candidate.
I suggest that all taxpayers or future clients walk to the pre-qualifier tool to make sure that they are eligible and suitable candidate for the offer in compromise program.
Taxpayers will have to file all tax returns and have them on the computer system before IRS will accept the offer in compromise.
As former IRS agents and managers we know the system to make this seamless and affordable.
Call us today for free initial tax consultation.
Owe Back Agricultural Taxes + Settle Back Tax Debt + Payment Plans + IRS & State Tax Representation
by Fresh Start Tax | Dec 8, 2015 | Tax Help
Affordable Former IRS Agents & Managers. Free Initial consultations hear the truth about how to settle your tax debt.
We have over 65 years of direct working experience in the local, district, and regional tax offices of the IRS.
There are various solutions for those who owe back taxes. Once we go ahead and hear the facts of your case we can prepare an exit strategy that can permanently remedy your IRS tax situation.
Below are the most commonly asked questions along with answers.
Who pays the gift tax?
The donor is generally responsible for paying the gift tax.
Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.
What is considered a gift?
Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money’s worth) is not received in return.
What can be excluded from gifts?
The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule.
Generally, the following gifts are not taxable gifts.
1. Gifts that are not more than the annual exclusion for the calendar year.
2. Tuition or medical expenses you pay for someone (the educational and medical exclusions).
3. Gifts to your spouse.
4. Gifts to a political organization for its use.
In addition to this, gifts to qualifying charities are deductible from the value of the gift(s) made.
May I deduct gifts on my income tax return?
Making a gift or leaving your estate to your heirs does not ordinarily affect your federal income tax.
You cannot deduct the value of gifts you make (other than gifts that are deductible charitable contributions).
If you are not sure whether the gift tax or the estate tax applies to your situation, refer to Publication 559, Survivors, Executors, and Administrators.
How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift.
The annual exclusion for 2014, 2015, and 2016 is $14,000.
What if my spouse and I want to give away property that we own together?
You are each entitled to the annual exclusion amount on the gift. Together, you can give $22,000 to each donee (2002-2005) or $24,000 (2006-2008), $26,000 (2009-2012) and $28,000 on or after January 1, 2013 (including 2014, 2015, and 2016).
What other information do I need to include with the return?
Refer to Form 709 (PDF), 709 Instructions and Publication 559. Among other items listed:
1. Copies of appraisals.
2. Copies of relevant documents regarding the transfer.
3. Documentation of any unusual items shown on the return (partially gifted assets, other items relevant to the transfer(s)).
What is “Fair Market Value?”
Fair Market Value is defined as:
“The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.
The fair market value of a particular item of property includable in the decedent’s gross estate is not to be determined by a forced sale price.
Nor is the fair market value of an item of property to be determined by the sale price of the item in a market other than that in which such item is most commonly sold to the public, taking into account the location of the item wherever appropriate.” Regulation §20.2031-1.
Whom should I hire to represent me and prepare and file the return?
The Internal Revenue Service cannot make recommendations about specific individuals, but there are several factors to consider:
1. How complex is the transfer?
2. How large is the transfer?
3. Do I need an attorney, CPA, Enrolled Agent (EA) or other professional(s)?
For most simple, small transfers (less than the annual exclusion amount) you may not need the services of a professional.
However, if the transfer is large or complicated or both, then these actions should be considered; It is a good idea to discuss the matter with several attorneys and CPAs or EA’s. Ask about how much experience they have had and ask for referrals.
This process should be similar to locating a good physician. Locate other individuals that have had similar experiences and ask for recommendations.
Finally, after the individual(s) are employed and begin to work on transfer matters, make sure the lines of communication remain open so that there are no surprises.
Finally, people who make gifts as a part of their overall estate and financial plan often engage the services of both attorneys and CPAs, EA’s and other professionals.
The attorney usually handles wills, trusts and transfer documents that are involved and reviews the impact of documents on the gift tax return and overall plan.
The CPA or EA often handles the actual return preparation and some representation of the donor in matters with the IRS.
However, some attorneys handle all of the work. CPAs or EA’s may also handle most of the work, but cannot take care of wills, trusts, deeds and other matters where a law license is required. In addition, other professionals (such as appraisers, surveyors, financial advisors and others) may need to be engaged during this time
Do I have to talk to the IRS during an examination?
You do not have to be present during an examination unless IRS representatives need to ask specific questions. Although you may represent yourself during an examination, most donors prefer that the professional(s) they have employed handle this phase of the examination. You may delegate authority for this by executing Form 2848 “Power of Attorney.”
What if I disagree with the examination proposals?
You have many rights and avenues of appeal if you disagree with any proposals made by the IRS. See Publications 1 and 5 (PDF) for an explanation of these options.
What if I sell property that has been given to me?
The general rule is that your basis in the property is the same as the basis of the donor. For example, if you were given stock that the donor had purchased for $10 per share (and that was his/her basis), and you later sold it for $100 per share, you would pay income tax on a gain of $90 per share.
(Note: The rules are different for property acquired from an estate).
Most information for this page came from the Internal Revenue Code: Chapter 12–Gift Tax (generally Internal Revenue Code §2501 and following, related regulations and other sources)
Can a married same sex donor claim the gift tax marital deduction for a transfer to his or her spouse?
For federal tax purposes, the terms “spouse,” “husband,” and “wife” includes individuals of the same sex who were lawfully married under the laws of a state whose laws authorize the marriage of two individuals of the same sex and who remain married.
Also, the Service will recognize a marriage of individuals of the same sex that was validly created under the laws of the state of celebration even if the married couple resides in a state that does not recognize the validity of same-sex marriages.
However, the terms “spouse,” “husband and wife,” “husband,” and “wife” do not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship recognized under state law that is not denominated as a marriage under the laws of that state, and the term “marriage” does not include such formal relationships.
Gifts to your spouse are eligible for the marital deduction.
by Fresh Start Tax | Dec 8, 2015 | Tax Help
Affordable Former IRS Agents & Managers who know how the settle excise tax debt, Since 1982.
Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on excise taxes than any other types of taxes.
Payroll and excise tax 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.
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
We should be able to make sure we can reach a reasonable settlement on your excise 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 excise tax settlement.
The Process of Dealing With IRS Excise Taxes, available Options including the Offer in Compromise.
The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS excise 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.
One of the most important things to know about getting a excise tax debt settlement, payment or moving on in the process is to understand that your current financial statement both business and individual will be the determining factor IRS will use to handle how your case closes.
IRS does spend their time including doing due diligence on these files. Many times offer in compromises are the longest worked cases if you’re an IRS agent because the complex system of having management sign off on your offer.
When Internal Revenue Service reviews a business they also review individuals as well.
Therefore an individual financial statements are required. We know this process inside and out we have worked hundreds and hundreds of cases, we can make this an easy and seamless process for you.
IRS will expect a 433B for the business & 433A for the individual.
IRS will expect complete documentation to support all the figures on the financial statements. The financial statement is one of the key documents IRS uses before a taxpayer will get an excise settlement for tax relief.
Excise Tax Settlements
After IRS reviews your personal and business current financial statement, Internal Revenue Service may determine that you are a:
1. hardship candidate, would simply means IRS will suspend any activity on current collections for a couple of years. Interest and penalty will run but IRS will review your case somewhere further down the road.
2. monthly payment agreement candidate,IRS will enter a payment plan depending on your ability to pay back the tax and completely dependent on your current financial statement with a careful review of your income statement.
3. or, an offer in compromise candidate and IRS excise tax settlement, IRS will consider an offer in compromise to settle payroll tax debt by doing a careful review of the individual’s personal financial statement and business financial statement. IRS will expect a fully documented form 433A OIC and 433B OIC along with the 656 OIC.
Before IRS works any case they will conduct a full compliance check to make sure that all tax returns are currently filed on a taxpayer, business or corporation.
They will also check on estimated payments or current depositories.
We advise all taxpayers before they start any process with the Internal Revenue Service to be in a current state of compliance.
Excise Tax + Settling Tax Debt IRS + Representation + Excise Tax Audits + Stop IRS Now + Former IRS
by Fresh Start Tax | Dec 8, 2015 | Tax Help
Affordable Former IRS Agents & Managers who know how the settle payroll tax debt, Since 1982.
Payroll and excise tax 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.
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
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 or excise tax settlements.
The Process of Dealing With IRS Payroll Taxes, available Options including the Offer in Compromise.
Therefore an individual financial statements are required. We know this process inside and out we have worked hundreds and hundreds of cases, we can make this an easy and seamless process for you.
IRS will expect a 433B for the business & 433A for the individual.
IRS will expect complete documentation to support all the figures on the financial statements. The financial statement is one of the key documents IRS uses before a taxpayer will get a payroll debt settlement for tax relief.
Excise Tax Settlements
After IRS reviews your personal and business current financial statement, Internal Revenue Service may determine that you are a:
1. hardship candidate:
a.would simply means IRS will suspend any activity on current collections for a couple of years. Interest and penalty will run but IRS will review your case somewhere further down the road.
2. monthly payment agreement candidate:
IRS will enter a payment plan depending on your ability to pay back the tax and completely dependent on your current financial statement with a careful review of your income statement.
3. or, an offer in compromise candidate and IRS payroll settlement:
IRS will consider an offer in compromise to settle payroll tax debt by doing a careful review of the individual’s personal financial statement and business financial statement. IRS will expect a fully documented form 433A OIC and 433B OIC along with the 656 OIC.
Excise Taxes + Owe IRS Back Taxes + Settlements = Payment Plans = File Back Excise Taxes + Affordable Former Agents
by Fresh Start Tax | Dec 8, 2015 | Tax Help
Affordable IRS Tax Experts. We have been in practice since 1982, Former IRS, A plus rated by the BBB. Excise Tax Debt
We can resolve IRS Excise Tax Debt. Being former IRS agents we know the exact process and the most affordable and quickest way to resolve these tax issues.
If you owe back IRS tax debt and wish to settle your case with the IRS, call us today for a free initial tax consultation.
When you call our office you will speak directly to former IRS agents, managers and tax instructors that have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS.
Once we have reviewed your current financial statement as a general rule we will tell you exactly how your case is going to close.
We have worked so many cases we know the IRS and state tax tendencies.
For those of you who need to file tax returns whether current or back years, call us today and we will walk you through the process of our learning experiences that total 206 years.
We can file your back tax returns with little or few records.
IRS Installment Agreements or IRS Payment Plan Agreements
Last year the Internal Revenue Service granted close to 6.5 million IRS payment plans, installment agreements and streamlined payment plans to taxpayers. Payroll agreements have different standards than individual agreements.
Your current financial statement will determine if you are installment agreement candidate.
Keep in mind your financial statement will need to be fully documented Bank statements and copy of all expenses. You must be able to fully verify income.
The Internal Revenue Service will conduct a full review on your financial statement.
Call us today for free initial tax consultation and we will walk you through the process to get you an IRS payment plan, installment agreement or tell you how to make an affordable monthly streamlined payment with the Internal Revenue Service.
One of the first things reduced to find out whether you can settle your tax debt for pennies on the dollar.
IRS TAX DEBT SETTLEMENTS
We can also talk you about the possible tax solution of settling your tax debt through the offer in compromise program, that is settling your tax debt for pennies on the dollar.
The way you can settle your tax debt for pennies on the dollar is through the offer in compromise program.
When you call our office you will speak directly to a former IRS agent who both worked and taught the program for IRS. The writer of this blog is a former IRS agent and teaching instructor.
One of the keys to the successful completion acceptance of an offer in compromise is to understand the process.
You can follow the pre-qualifier tool on our website and you can find out firsthand if you are a qualified candidate for the program.
You should never give your money to a tax firm unless you have some assurance your offer has a chance of acceptance.
Call us for a free initial tax consultation and hear the truth.
by Jim Magary | Dec 7, 2015 | Tax Help
If you owe back payroll tax, the IRS can assess the trust fund penalty against any person or persons responsible for paying the 941 back payroll taxes. Get Affordable Tax Defense!
Are you being considered for a trust fund penalty , has IRS sent form 1153 or form 2751, would like to seek various relief ? Contact us today for a free initial tax consultation.
There are variety of options you have and after a review of your case we can let you know exactly how to remedy the problem.
We have over 65 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS.
We have worked not only his former IRS agents and managers but teaching instructors and on-the-job instructors new IRS agents.
Why are these called Trust Fund
These 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) or responsible parties within a PSP
• Professional Employer Organizations (PEO) or responsible parties within a PEO, or
• Responsible parties within the common law employer (client of PSP/PEO).
For 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 wilfulness.
You may be asked to complete an interview in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business. An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid. Notice 784.
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Figuring the TFRP Amount
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
• The unpaid income taxes withheld, plus
• The employee’s portion of the withheld FICA taxes.
For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the TFRP
If we determine that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you.
You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal. The letter will explain your appeal rights. 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 are being considered for the trust fund penalty call us today and we will walk you through the process. We will let you know about the 4180 interview, explain the 2751 and 1153DO letter and walk you through the appellate process.
Call us today for free initial tax consultation and hear the truth about the trust fund recovery taxes.
Are You Bring Considered For Trust Fund Recover Penalty + IRS Tax Defense Representation + Former IRS
