by Jim Magary | Sep 14, 2015 | Tax Help
Affordable Former IRS Agents and Managers, May be able to Wipe Out or Cancel Your Tax Debt
Yes it is possible to wipe out your tax debt as a result of the 1099.
Call us today for a free initial tax consultation we may be able help you in walk used to the process.
Canceled Debt – Is It Taxable or Not?
A debt includes any indebtedness whether you are personally liable or liable only to the extent of the property securing the debt.
Cancellation of all or part of a debt that is secured by property may occur because of a foreclosure, a repossession, a voluntary return of the property to the lender, abandonment of the property, or a principal residence loan modification.
In general, if your debt is canceled, forgiven, or discharged you will receive a Form 1099-C Cancellation of Debt, and must include the canceled amount in gross income unless you meet an exclusion or exception.
If you receive a Form 1099-C but the creditor is continuing to try to collect the debt, the creditor may not have canceled the debt.
You should verify with the creditor your specific situation; you might not have cancellation of debt or taxable income.
In general, you must report any taxable amount of a canceled debt for which you are liable as ordinary income from the cancellation of debt, on Form 1040, U.S. Individual Income Tax Return, or Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return, and associated schedules, as advised in Publication 4681 (PDF), Canceled Debts, Foreclosures, Repossessions, and Abandonment’s (for Individuals).
You must report the taxable amount of a taxable canceled debt whether or not you receive a Form 1099-C.
Caution:
If property secured your debt and the lender takes that property in full or partial satisfaction of your debt, you are treated as having sold that property and may have a taxable gain or loss.
The gain or loss on such a deemed sale of your property is an issue separate from whether any cancellation of debt income associated with that same property is includable in gross income.
Canceled debts that meet the requirements for any of the following exceptions or exclusions are not taxable.
Debt Cancellations or Reductions that Qualify for EXCEPTION to Inclusion in Gross Income:
1. Amounts specifically excluded from income by law such as gifts, bequests, devises or inheritances
2. Cancellation of certain qualified student loans
3. Canceled debt, that if it were paid by a cash basis taxpayer, would be deductible
4. A qualified purchase price reduction given by a seller
5. Any Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program
Canceled Debt that Qualifies for EXCLUSION from Gross Income:
1. Debt canceled in a Title 11 bankruptcy case
2. Debt canceled during insolvency
3. Cancellation of qualified farm indebtedness
4. Cancellation of qualified real property business indebtedness
5. Cancellation of qualified principal residence indebtedness
The exclusion for qualified principal residence indebtedness provides tax relief on canceled debt for many homeowners involved in the mortgage foreclosure crisis currently affecting much of the United States.
The exclusion allows taxpayers to exclude up to $2,000,000 ($1,000,000 if married filing separately) of canceled qualified principal residence indebtedness.
Generally, if you exclude canceled debt from income under one of the exclusions listed above, you must reduce certain tax attributes (certain credits, losses, basis of assets, etc.), within limits, by the amount excluded. You must file Form 982 (PDF), Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), to report the amount qualifying for exclusion and any corresponding reduction of those tax attributes.
For cancellation of qualified principal residence indebtedness that you exclude from income, you must only reduce your basis in your principal residence.
If you received a Form 1099-C and the information is incorrect, contact the lender to make corrections. Refer to Publication 4681 (PDF), Canceled Debts, Foreclosures, Repossessions, and Abandonment’s (for Individuals), for more detailed information regarding taxability of canceled debt, how to report it, and related exceptions and exclusions.
by Fresh Start Tax | Sep 14, 2015 | Tax Help
Affordable Former IRS Agents and Managers, May be able to Wipe Out or Cancel Your Tax Debt
Yes it is possible to wipe out your tax debt as a result of the 1099.
Call us today for a free initial tax consultation we may be able help you in walk used to the process.
Canceled Debt – Is It Taxable or Not?
A debt includes any indebtedness whether you are personally liable or liable only to the extent of the property securing the debt.
Cancellation of all or part of a debt that is secured by property may occur because of a foreclosure, a repossession, a voluntary return of the property to the lender, abandonment of the property, or a principal residence loan modification.
In general, if your debt is canceled, forgiven, or discharged you will receive a Form 1099-C Cancellation of Debt, and must include the canceled amount in gross income unless you meet an exclusion or exception.
If you receive a Form 1099-C but the creditor is continuing to try to collect the debt, the creditor may not have canceled the debt.
You should verify with the creditor your specific situation; you might not have cancellation of debt or taxable income.
In general, you must report any taxable amount of a canceled debt for which you are liable as ordinary income from the cancellation of debt, on Form 1040, U.S. Individual Income Tax Return, or Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return, and associated schedules, as advised in Publication 4681 (PDF), Canceled Debts, Foreclosures, Repossessions, and Abandonment’s (for Individuals).
You must report the taxable amount of a taxable canceled debt whether or not you receive a Form 1099-C.
Caution:
If property secured your debt and the lender takes that property in full or partial satisfaction of your debt, you are treated as having sold that property and may have a taxable gain or loss.
The gain or loss on such a deemed sale of your property is an issue separate from whether any cancellation of debt income associated with that same property is includable in gross income.
Canceled debts that meet the requirements for any of the following exceptions or exclusions are not taxable.
Debt Cancellations or Reductions that Qualify for EXCEPTION to Inclusion in Gross Income:
1. Amounts specifically excluded from income by law such as gifts, bequests, devises or inheritances
2. Cancellation of certain qualified student loans
3. Canceled debt, that if it were paid by a cash basis taxpayer, would be deductible
4. A qualified purchase price reduction given by a seller
5. Any Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program
Canceled Debt that Qualifies for EXCLUSION from Gross Income:
1. Debt canceled in a Title 11 bankruptcy case
2. Debt canceled during insolvency
3. Cancellation of qualified farm indebtedness
4. Cancellation of qualified real property business indebtedness
5. Cancellation of qualified principal residence indebtedness
The exclusion for qualified principal residence indebtedness provides tax relief on canceled debt for many homeowners involved in the mortgage foreclosure crisis currently affecting much of the United States.
The exclusion allows taxpayers to exclude up to $2,000,000 ($1,000,000 if married filing separately) of canceled qualified principal residence indebtedness.
Generally, if you exclude canceled debt from income under one of the exclusions listed above, you must reduce certain tax attributes (certain credits, losses, basis of assets, etc.), within limits, by the amount excluded. You must file Form 982 (PDF), Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), to report the amount qualifying for exclusion and any corresponding reduction of those tax attributes.
For cancellation of qualified principal residence indebtedness that you exclude from income, you must only reduce your basis in your principal residence.
If you received a Form 1099-C and the information is incorrect, contact the lender to make corrections. Refer to Publication 4681 (PDF), Canceled Debts, Foreclosures, Repossessions, and Abandonment’s (for Individuals), for more detailed information regarding taxability of canceled debt, how to report it, and related exceptions and exclusions.
by Jim Magary | Sep 14, 2015 | Tax Help
Affordable IRS Tax Help, End Your IRS Problems with Tax Attorneys, CPAs and former IRS agents.
We have been resolving IRS tax problems since 1982 and our A+ rated by the Better Business Bureau.
If you have received an IRS tax summons, form 2039 contact us today and speak with a true tax professional how to manage and deal with your IRS tax issue or problem.
You should know that an administrative tax summons is very different than a tax court summons or subpoena. If you have received a tax court subpoena you will speak directly with tax attorney. If you have received an IRS summons, form 2039 you will speak directly to one of our CPAs, or former IRS agents, managers and tax instructors.
A person who receives tax form 2039 will have to appear before the Internal Revenue Service and give the information the Internal Revenue Service has requested.
As a general rule, IRS will want books and records on a particular tax period.
many times these summonses can be squashed by contacting the IRS agent and sending the information in advance. It is important to have a good working relationship with the IRS revenue officer, tax examiner revenue agent.
As a former IRS revenue officer, I issued hundreds of IRS 2039 summons forms and held hundreds of examinations as a result of these tax summonses.
Call us today for a free initial tax consultation and we can walk you through the process and end your back IRS tax problems or file back tax returns.
Since 1982, A+ rated by the Better Business Bureau.
Do You Receive an IRS Tax Summons, IRS Form 2039 = Former IRS + Tax Help + Tax Debt + File Back Tax Returns
by Jim Magary | Sep 14, 2015 | Tax Help
Affordable Former IRS Agents and Managers can fully resolve any back tax issue or matter including tax summons or tax Subpoena.
Call us today for a free initial tax consultation and speak to a true IRS tax expert.
You can speak directly to tax attorneys, CPAs or former IRS agents , managers and tax instructors who have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS.
We are A+ rated by the Better Business Bureau NFL 206 years of professional tax experience.
Do not be bullied by the Internal Revenue Service, call former IRS agents for a free initial tax consultation.
The process used by the IRS = Appearance, Compliance or Noncompliance with a Summons
1. Anytime a summons is issued, inform the witness or the witness’s representative that:
A. The witness must appear in person with the records and either comply or refuse to comply, stating reasons for any such refusal.
B. Failure to comply with the summons may result in judicial remedies.
C. The representative of the witness cannot appear in lieu of the witness on the appearance date set in the summons.
3. If the witness presents a valid reason (such as illness) for not appearing on the day fixed in the summons, that date may be continued by mutual agreement to another date. To formally extend the compliance date of the summons:
• Prepare a letter to the summoned party and include:
A. date of the original summons,
B. new compliance date, and
C. name of the summoned party.
Mail the letter by certified mail or hand deliver it to the summoned party.
If a taxpayer or witness appears in response to a summons and claims the Fifth Amendment or another privilege, continue with the examination or interview.
Ask the summoned person all questions necessary so the person asserting the privilege responds to each inquiry by either answering the questions and producing the documents or asserting the claimed privilege.
However, if the person summoned refuses to submit to questioning and the requests for documents, do not continue the interview. Make a record of the interview. Another IRS employee should attend the interview or examination as a witness. Associate Area Counsel should be contacted in any case in which the taxpayer raises a constitutional defense to a summons..
The above procedures are important to the enforcement of a summons to establish the facts and circumstances of noncompliance.
The procedures respecting claims of privileges are primarily applicable when only the witness and the witness’s representative appear in response to the summons.
If the taxpayer or another person attempts to be present during the questioning of a summoned third-party witness, and the IRS employee does not desire to disclose the course of the investigation or examination to the taxpayer or other person, the IRS employee should consult with her or his manager. Associate Area Counsel may also be consulted.
by Jim Magary | Sep 14, 2015 | Tax Help
Affordable IRS Tax Representation to Stop the IRS, since 1982.
If you have received an administrative IRS tax summons you have no choice but to make sure you comply with all the requests made by the Internal Revenue Service.
Should you need help and need effective tax representation, you can call former IRS agents, managers and tax instructors to go permanently resolve the problem and deal with the Internal Revenue Service once and for all. We have over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS.
We have over 206 years professional tax experience and our A+ rated by the Better Business Bureau.
you must comply with this IRS summons before they seek enforcement action.
Call us today and you can receive a free initial tax consultation and we can walk you through the process.
General Procedures for Seeking Enforcement of the Summons
1. When there is a neglect or refusal on the part of the person summoned to respond to the summons, or the person entitled to notice under IRC 7609(a) has exercised his/her right to bring a proceeding to quash the summons, the Area Director will consider whether to seek judicial enforcement.
Generally, when a summons is served, the office should be prepared to see the matter to a final and successful conclusion.
A. When determining whether to seek enforcement of a third-party summons, Field Counsel should verify that notice was given to the person who is identified in the description of the records contained in the summons and the appearance date must be at least 23 days after the date notice is given. IRC 7609(d)(1).
B. In the case of non-third-party summonses, Field Counsel should check to assure that the response date is at least ten (full) days from the time the summons was served. IRC 7605(a).
C. If after consideration of all of the circumstances, the Area Director deems it advisable to proceed with enforcement, the matter is referred to Field Counsel for consideration and determination of what legal action should be taken.
The referral memorandum transmits the original of the summons, together with a memorandum prepared by the issuing agent, specialist, or officer outlining the facts. The Internal Revenue Manual contains instructions as to what the report should contain and the number of copies.
D. Unless specifically provided otherwise below, final action should be taken within six workdays after receipt of a request for civil enforcement of a summons.
2.
3. A file under the name of the taxpayer is opened immediately upon receipt of the request for civil enforcement. It is categorized as a Summons Case.
Where summonses have been issued to multiple witnesses, a file should be opened in the name of the taxpayer for each summons enforcement request, and the subject line of the legal file should be cross referenced to the name of the witness against whom the summons enforcement action is requested.
4. After the request for enforcement has been reviewed by Field Counsel and he/she believes that the summons is legally enforceable, a letter should be prepared referring the to the appropriate U.S. Attorney or the Tax Division. See CCDM 34.6.3.3.1 and CCDM 34.6.3.3.2 to determine whether a request for enforcement should go directly to the U.S.
Attorney or DOJ or should be routed through the Office of the Associate Chief Counsel (Procedure & Administration).
5. If for some reason the summons is legally defective, this can often be corrected by reissuing and serving an amended summons, and, if compliance is still not forthcoming, the matter may then be referred for enforcement.
The procedures set out in the Internal Revenue Manual will be followed by the Area Director’s office in the event Field Counsel contemplates disapproving a request for civil enforcement of a summons. For procedures to be followed when Field Counsel contemplates disapproving a request for enforcement of a summons in a Criminal Investigation case, see CCDM 34.6.3.6.4, below.
6. In the absence of unusual circumstances, Field Counsel will take final action within six workdays from the receipt of a summons case.
Where emergency action is required, telephonic referral may be used with a formal written referral transmitted as soon as circumstances will permit.
7. Field Counsel should stay abreast of a case once it is referred and advise Procedure & Administration of any situation that arises which could have a bearing on a summons case referred to DOJ.
Field Counsel should similarly advise the U.S. Attorney in cases that were directly referred to the U.S. Attorney.
Need help, call us for a free initial tax consultation.
by Jim Magary | Sep 11, 2015 | Tax Help
We are the “AFFORDABLE” professional tax firm with over 206 years of professional tax experience, since 1982.
We have over 60 years of direct work experience in the local, district and regional tax offices of the Internal Revenue Service. We are composed of tax attorneys, CPAs and former agents.
We have worked as supervisors, as managers, and teachings instructors. You want our years of experience working for you.
If you have any sort of IRS problem contact us today and we can review with you various solutions to go ahead and help with an IRS final notice, certified mail, intent to levy, the filing of a federal tax lien, payment plans and the settling of your case through an offer a compromise.
If you have received an IRS final notice, we can stop IRS today with the simple filing of a power of attorney and with a direct IRS conversation.
We handle all correspondence and you will never communicate with the Internal Revenue Service.
We can talk to you about the removal or the filing a federal tax liens, work out a payment plan, release a tax levy or talk to you about settling your debt to the offer in compromise program.
Through the new IRS fresh start initiative many more taxpayers are settling their debt for pennies on a dollar, however you must be a qualified candidate.
If you are going to owe back taxes and wish a payment plan or wish to reach a settlement with them, call us today for a free initial tax consultation.
Your current financial system will indicate the type of way IRS will close case. There is true value in hiring certified tax professional.
IRS Tax Billing Notices
If IRS sends you a document it is time sensitive and taxpayers must follow-up on all time sensitive letters. Never ignore an IRS tax notice, they will follow-up and do exactly what they say.
Once a tax return is filed or IRS initiates a tax assessment, IRS sends out a series of five notices and those notices are sent five cycles or five weeks apart.
IRS has the option, depending on the dollar amount and the history of the taxpayer to speed up those assessments.
Billing notices
These IRS tax notices are all sent out in five-week billing cycles.
1. CP 14 – This is the notice of balance due,
2.CP 501 – This is a Bill that you still owe tax,
3. CP503 – Important, Immediate Action Required
4. CP 504 – Urgent Notice – We Intend to Levy on Certain Assets, Please Respond Now
5. CP90/CP297/ – IRS Letter 1058 – Final Notice of Intent to Levy of Your Right to a Hearing
6.CP 91- CP298 -Final IRS Notice, You must answer his Notice!
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With over 206 years of professional tax experience we are one of the most experienced tax resolution firms in the industry.
IRS TAXES + Final Notice, Certified Mail + Former IRS Can STOP IRS + Intent to Tax Levy, Lien + IRS Payment Plans + Settle, Offer in Compromise + Unfiled Tax Returns
