by Fresh Start Tax | Nov 10, 2015 | Tax Help
Three Tax Considerations during Marketplace Open Enrollment
When you apply for assistance to help pay the premiums for health coverage through the Health Insurance Marketplace, the Marketplace will estimate the amount of the premium tax credit that you may be able to claim.
The Marketplace will use information you provide about your family composition, your projected household income, whether those that you are enrolling are eligible for other non-Marketplace coverage, and certain other information to estimate your credit.
Here are three things you should consider during the Health Insurance Marketplace Open Enrollment period:
1. Advance credit payments lower premiums – You can choose to have all, some, or none of your estimated credit paid in advance directly to your insurance company on your behalf to lower what you pay out-of-pocket for your monthly premiums.
These payments are called advance payments of the premium tax credit or advance credit payments.
If you do not get advance credit payments, you will be responsible for paying the full monthly premium.
2. A tax return may be required – If you received the benefit of advance credit payments, you must file a tax return to reconcile the amount of advance credit payments made on your behalf with the amount of your actual premium tax credit.
You must file an income tax return for this purpose even if you are otherwise not required to file a return.
3. Credit can be claimed at tax time – If you choose not to get advance credit payments, or get less than the full amount in advance, you can claim the full benefit of the premium tax credit that you are allowed when you file your tax return.
This will increase your refund or lower the amount of tax that you would otherwise owe.
For more information about open season enrollment, which runs through January 1, 2016, visit Healthcare.gov. See our Questions and Answers on IRS.gov/ca for information about the premium tax credit.
by Fresh Start Tax | Nov 10, 2015 | Tax Help
Independent Contractor vs. Employee
For federal employment tax purposes, the usual common law rules are applicable to determine if a worker is an independent contractor or an employee.
Under the common law, you must examine the relationship between the worker and the business.
You should consider all evidence of the degree of control and independence in this relationship.
The facts that provide this evidence fall into three categories
1.Behavioral Control,
2.Financial Control and,
3. the Relationship of the Parties.
Behavioral Control covers facts that show if the business has a right to direct and control what work is accomplished and how the work is done, through instructions, training or other means.
Financial Control covers facts that show if the business has a right to direct or control the financial and business aspects of the worker’s job.
This includes:
• The extent to which the worker has unreimbursed business expenses
• The extent of the worker’s investment in the facilities or tools used in performing services
• The extent to which the worker makes his or her services available to the relevant market
• How the business pays the worker, and
• The extent to which the worker can realize a profit or incur a loss
Relationship of the Parties covers facts that show the type of relationship the parties had.
This includes:
• Written contracts describing the relationship the parties intended to create
• Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay
• The permanency of the relationship, and
• The extent to which services performed by the worker are a key aspect of the regular business of the company
For more information, refer to Publication 15-A (PDF), Employer’s Supplemental Tax Guide, or Publication 1779 (PDF), Independent Contractor or Employee.
If you want the IRS to determine if a specific individual is an independent contractor or an employee, file Form SS-8 (PDF), Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
For information on eligibility for a voluntary program to reclassify your workers as employees with partial relief from federal employment taxes, visit Voluntary Classification Settlement Program (VCSP) on IRS.gov.
by Jim Magary | Nov 10, 2015 | Tax Help
Independent Contractor vs. Employee
For federal employment tax purposes, the usual common law rules are applicable to determine if a worker is an independent contractor or an employee.
Under the common law, you must examine the relationship between the worker and the business.
You should consider all evidence of the degree of control and independence in this relationship.
The facts that provide this evidence fall into three categories
1.Behavioral Control,
2.Financial Control and,
3. the Relationship of the Parties.
Behavioral Control covers facts that show if the business has a right to direct and control what work is accomplished and how the work is done, through instructions, training or other means.
Financial Control covers facts that show if the business has a right to direct or control the financial and business aspects of the worker’s job.
This includes:
• The extent to which the worker has unreimbursed business expenses
• The extent of the worker’s investment in the facilities or tools used in performing services
• The extent to which the worker makes his or her services available to the relevant market
• How the business pays the worker, and
• The extent to which the worker can realize a profit or incur a loss
Relationship of the Parties covers facts that show the type of relationship the parties had.
This includes:
• Written contracts describing the relationship the parties intended to create
• Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay
• The permanency of the relationship, and
• The extent to which services performed by the worker are a key aspect of the regular business of the company
For more information, refer to Publication 15-A (PDF), Employer’s Supplemental Tax Guide, or Publication 1779 (PDF), Independent Contractor or Employee.
If you want the IRS to determine if a specific individual is an independent contractor or an employee, file Form SS-8 (PDF), Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
For information on eligibility for a voluntary program to reclassify your workers as employees with partial relief from federal employment taxes, visit Voluntary Classification Settlement Program (VCSP) on IRS.gov.
by Fresh Start Tax | Nov 10, 2015 | Tax Help
AFFORDALE EXPERTS, we can get your IRS tax levy, wage garnishment released within a 24-hour period of time and settle your case at the same time.
We are the affordable professional tax firm that knows the system. As former IRS agents and managers we know the system.
We have a combined 60 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service and know exactly how to settle your case with the Internal Revenue Service.
If you are in receipt of an IRS tax levy, IRS wage levy or bank levy garnishment, contact us today and we can get your tax levy released in your case closed.
Within 24 hours of receiving your fully documented financial statement we guarantee that you will have a release of your IRS bank levy or wage garnishment levy.
Settling Your Tax Debt
We will speak with you about settling your tax debt to the offer in compromise program. We will walk through the pre-qualifier tool to make sure you are a viable candidate.
The Internal Revenue Service accepted 38,000 offers in compromise last year for average of $6500 per settlement. Last year there were 78,000 offers in compromise filed. Please keep in mind this is a national average.
IRS Tax Levy, IRS Wage Garnishment Levy Releases
Before IRS will release a tax levy, a wage garnishment or bank seizure, Internal Revenue Service will need a current documented financial statement.
Taxpayers have received these notices of levy because they have failed to communicate with Internal Revenue Service after four billings have been sent to the last known address. in many cases taxpayers have moved and never receive the notices.
If your case is in the automatic collection system you will be filling out and documenting form 433F which you can find directly on our website. It is the only form the Internal Revenue Service will use.
When calling our office we will complete the form, speak to the Internal Revenue Service and within 24 hours of having your fully documented financial statement we can get your IRS tax levy released.
Being a former IRS agent teaching instructors gives us a huge advantage and the benefit of our experience is invaluable to our clients.
IRS Financial Statement – 433F
The filling out of your financial statement is critical into the settlement of your case.
With that current financial statement you will need to provide IRS the last three months of your bank statements, copies of your pay stubs and your monthly expenses.
IRS does a thorough review of your financial statement therefore you want to make sure you are both honest and accurate.IRS has many sources available on their computer system to check the accuracy of your financial statement in some instances can pull credit reports.
As a general rule IRS will not release your levy until all your tax returns are filed. We can prepare all your back tax returns with little or no records.
IRS Case Closings
Internal Revenue Service usually closes your case off the enforcement two general ways: Based on your current financial statement, IRS will put you in a currently uncollectible file or put you in a payment agreement.
Over 40% of collection cases wind up in a current tax hardship and 6.5 million other taxpayers are put into monthly installment payment plans.
It is important you file all back tax returns if not the IRS can file for you under 6020 B of the Internal Revenue Code and they will make sure you get no deductions.
IRS will not give any non-filer any deductions or exemptions that they prepare under 6020B.
IRS may fail to release an IRS tax levy wage garnishment or bank levy because taxpayers have failed to file back tax returns.
After the review of your IRS financial statement we can let you know whether you are a possible debt settlement candidate for the offer in compromise program.
Call us today for a free initial tax consultation. You will speak to a true IRS tax expert.
Remove IRS Tax Levy NOW = AFFORDABLE Bank & Wage Garnishment Releases + Settle Tax Debt Now + File Back Unfiled Tax Returns + New York City
by Jim Magary | Nov 10, 2015 | Tax Help
I am a former IRS revenue officer and teaching instructor of the IRS offer in compromise, tax debt settlement program.
I know the system inside and out I will let you know if you qualify to settle or you reduce your IRS tax debt. Free Consults
We are AFFORDABLE IRS specialist experts for the Offer in Compromise for those wishing to settle their IRS tax debt.
We are composed of former IRS agents and managers who were former employees of the Internal Revenue Service.
We have over 60 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service. We are true IRS experts who understand the IRS collection system.
Due to the IRS new fresh start initiative set out by the Internal Revenue Service many more taxpayers are eligible for the tax debt settlement.
Before a taxpayer or client thinks about the filing of an offer in compromise they should check out the IRS offer in compromise pre-qualifier tool first.
You can walk to the pre-qualifier tool on our site or call us today to learn more about it.
We will not file an offer in compromise or accept any fee for any client unless we know they are qualified for the program.
So if we send in your offer in compromise, you probably do have a pretty good chance of getting it accepted.
It is important to know you will that all back tax returns will have to be filed, up-to-date and current on the IRS computer system before the Internal Revenue Service will accept an offer in compromise.
IRS Tax Statistics for the OIC
Last year there were 78,000 offers in compromise were filed with the Internal Revenue Service, 38% of those were accepted for an average of $6500 per case.
Keep in mind this is a national average and varies from case to case is completely dependent on your current financial statement.
About 20% of all offers in compromise go to the Appellate Division for settlement. Most offers that are accepted by the Internal Revenue Service are done through true tax professional firms.
You should know that not everyone is an offer in compromise candidate to settle their tax debt.
Making sure you are eligible for the OIC.
Before IRS 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.
Submitting your offer or OIC to the Internal Revenue Service.
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 must and 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 for the offer in compromise program through the IRS:
Your initial payment will vary based on your offer and the payment option you choose:
1• IRS 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.
2• IRS 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, you must continue to pay monthly until it is paid in full.
While your offer in compromise is being evaluated by the IRS you should know;
• 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.
As a side note, taxpayers should be aware that all tax returns must be filed before they can have an approved offer in compromise.
If you submitted an offer in compromise and IRS finds your tax returns are not file they will return the offer to you.
We could prepare all back returns for you with little or no records.
Call us today to find out more how you can settle your tax debt for pennies on the dollar. We are a true professional tax firm.
IRS Offer in Compromise + Tax Debt Settlements + Settle & Reduce IRS Tax Debt + Unfiled Back Tax Returns + Former IRS
by Fresh Start Tax | Nov 10, 2015 | Tax Help
I am a former IRS revenue officer and teaching instructor of the IRS offer in compromise, tax debt settlement program.
I know the system inside and out I will let you know if you qualify to settle or you reduce your IRS tax debt. Free Consults
We are AFFORDABLE IRS specialist experts for the Offer in Compromise for those wishing to settle their IRS tax debt.
We are composed of former IRS agents and managers who were former employees of the Internal Revenue Service.
We have over 60 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service. We are true IRS experts who understand the IRS collection system.
Due to the IRS new fresh start initiative set out by the Internal Revenue Service many more taxpayers are eligible for the tax debt settlement.
Before a taxpayer or client thinks about the filing of an offer in compromise they should check out the IRS offer in compromise pre-qualifier tool first.
You can walk to the pre-qualifier tool on our site or call us today to learn more about it.
We will not file an offer in compromise or accept any fee for any client unless we know they are qualified for the program.
So if we send in your offer in compromise, you probably do have a pretty good chance of getting it accepted.
It is important to know you will that all back tax returns will have to be filed, up-to-date and current on the IRS computer system before the Internal Revenue Service will accept an offer in compromise.
IRS Tax Statistics for the OIC
Last year there were 78,000 offers in compromise were filed with the Internal Revenue Service, 38% of those were accepted for an average of $6500 per case.
Keep in mind this is a national average and varies from case to case is completely dependent on your current financial statement.
About 20% of all offers in compromise go to the Appellate Division for settlement. Most offers that are accepted by the Internal Revenue Service are done through true tax professional firms.
You should know that not everyone is an offer in compromise candidate to settle their tax debt.
Making sure you are eligible for the OIC.
Before IRS 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.
Submitting your offer or OIC to the Internal Revenue Service.
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 must and 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 for the offer in compromise program through the IRS:
Your initial payment will vary based on your offer and the payment option you choose:
1• IRS 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.
2• IRS 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, you must continue to pay monthly until it is paid in full.
While your offer in compromise is being evaluated by the IRS you should know;
• 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.
As a side note, taxpayers should be aware that all tax returns must be filed before they can have an approved offer in compromise.
If you submitted an offer in compromise and IRS finds your tax returns are not file they will return the offer to you.
We could prepare all back returns for you with little or no records.
Call us today to find out more how you can settle your tax debt for pennies on the dollar. We are a true professional tax firm.
IRS Offer in Compromise + Tax Debt Settlements + Settle & Reduce IRS Tax Debt + Unfiled Back Tax Returns + Former IRS
