by Fresh Start Tax | Mar 24, 2014 | Tax Help
Use Former IRS agents and managers who worked out the local, district and regional IRS offices settle your IRS case once and for all, we know the system.
Let our IRS knowledge get you immediate and permanent tax relief from the IRS.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982. Over 206 years of IRS and state experience.
IRS Tax Audits
IRS audits approximately 1% of all taxpayers.
If you have won the IRS lottery, contact our former IRS audit agents and managers and let them walk you to the process of an IRS tax audit.
Use us for tax audit defense to get some of the best possible tax results.
We know the systems, the protocols and the tax settlement theories.
Tax Levy Releases on Bank and Wage Levies – 668-A, 668-W
If the IRS sent to the notice of bank or wage levy, you will need to supply IRS with the current financial statement to get a release of levy.
That financial statement is on form 433-F. You can find directly on our website.
That financial form will need to be fully documented along with three months worth of bank statements, your last pay stub copy and all expenses.
Once we have received your current financial statement, as a general rule we can get your levy release within 24 hours.We will also settle your case.
IRS tax settlements.
IRS accepts approximately 38% of all offers in compromise.
The average settlement is $.14 on the dollar.
When you call FST you can speak directly to a former IRS agent who negotiated settlements for the IRS and was a tax instructor in the collection division.
Back Tax Filings
If you need to file back taxes contact us today we can pull tax transcripts and file all your back tax returns. If you are going to owe money to the IRS we will work out tax settlement for you.
Please note
If you owe money to the Internal Revenue Service, IRS will not cooperate with taxpayers unless all tax returns are filed, current and up-to-date.
Keep in mind, if you do not file your tax return IRS has the ability to file your tax return under 6020 B of the Internal Revenue Code.
Make sure IRS does not file for you because they will not allow you any tax deductions.
Call us today for free initial tax consultation to learn more about your best possible tax defense.
IRS * Tax Audit, Tax Levy Releases, Settlements, Back Filings – Affordable – Pensacola, Destin, Mobile, Daphne
by Fresh Start Tax | Mar 24, 2014 | Tax Help
Let Former IRS Agents and Managers who know the system settle your case.
Do not be bullied by the Internal Revenue Service.
Fight back by using former IRS agents and managers know the systems, protocols and how to settle your case for fast and affordable fees.
We are a Florida tax firm that have been in private practice since 1982 and we are A+ rated by the Better Business Bureau.
With over 206 years of professional tax experience where one of the most trusted and experienced tax firms in Florida.
Fresh Start Tax LLC can handle anything from a tax letter/notice to going to Tax Court.
IRS Tax Levy Releases
If you’ve received a tax levy notice by the Internal Revenue Service as a general rule within 24 hours of receiving a documented financial statement we can secure a release of the wage levy or bank levy.
Contact us today and we will walk you through the process of getting immediate and permanent release of Levy. You will need to go on our website and fill out and complete a 433-F.
If you receive an IRS Bank Levy you have 21 days before the bank will send the funds to IRS. If you received a wage levy a good portion of your next paycheck will go to IRS.
IRS will also request all your tax returns be filed, current, and up-to-date.
IRS tax audits
Being former IRS agents and managers experience pays off big when going through an IRS tax audit.
No matter who you hire, make sure they have former IRS experience because they understand all the tax protocols and settlement theories regarding an IRS or state tax audit. The Internal Revenue Service audits less than 1% of all taxpayers.
Back Tax Filings
Most taxpayers who fail to file one year worth of taxes wind up not filing for many years thereafter. If this is the case, we can prepare all your back tax returns with little or no tax records. Being former IRS agents and managers we understand reconstructive methods to prepare all backs returns. Not only can we file all your back tax returns we will also work out a tax settlement.
IRS tax settlement are called an Offer in Compromise
If you need to file for a tax settlement you should walk to the IRS pre-qualifier tool on our website.
In tax year 2013, the IRS received 74,000 offers in compromise and 31,000 offers in compromise were accepted by the Internal Revenue Service.
Contact us today and speak directly to former IRS agents and managers who know the system and can walk you through the process of giving you immediate and permanent tax relief for affordable pricing.
Affordable IRS Help, – Tax Audits, Levy, Back Tax Filing, Settlements ,- Micco, Sebastian, Rockledge, Cape Canaveral
by Fresh Start Tax | Mar 24, 2014 | Tax Help
Tips on Deducting Charitable Contributions
1. You must donate to a qualified charity if you want to deduct the gift.
You cannot deduct gifts to individuals, political organizations or candidates.
2. In order for you to deduct your contributions, you must file Form 1040 and itemize deductions.
File Schedule A, Itemized Deductions, with your federal tax return.
3. If you get a benefit in return for your contribution, your deduction is limited.
You can only deduct the amount of your gift that’s more than the value of what you got in return.
Examples of such benefits include merchandise, meals, tickets to an event or other goods and services.
4. If you give property instead of cash, the deduction is usually that item’s fair market value.
Fair market value is generally the price you would get if you sold the property on the open market.
5. Used clothing and household items generally must be in good condition to be deductible.
Special rules apply to vehicle donations.
6. You must file Form 8283, Non-cash Charitable Contributions, if your deduction for all non-cash gifts is more than $500 for the year.
7. You must keep records to prove the amount of the contributions you make during the year.
The kind of records you must keep depends on the amount and type of your donation. For example, you must have a written record of any cash you donate, regardless of the amount, in order to claim a deduction. It can be a cancelled check, a letter from the organization, or a bank or payroll statement.
It should include the name of the charity, the date and the amount donated. A cell phone bill meets this requirement for text donations if it shows this same information.
8. To claim a deduction for donated cash or property of $250 or more, you must have a written statement from the organization.
It must show the amount of the donation and a description of any property given. It must also say whether the organization provided any goods or services in exchange for the gift.
If you would like to audit proof your tax return by former IRS agents, contact us today.
Charitable Contributions – Tax Tips – Get the Most Out of Your Contributions, Former IRS Agents
by Fresh Start Tax | Mar 24, 2014 | Tax Help
Outsource Payroll Duties, Pay Attention to these Tax Tips
Many employers outsource their payroll and related tax duties to third-party payers such as payroll service providers and reporting agents. It is a great way to save money and reduce business costs.
Reputable third-party payers can help employers streamline their business operations by collecting and timely depositing payroll taxes on the employer’s behalf and filing required payroll tax returns with state and federal authorities.
Though most of these businesses provide very good service, there are, unfortunately, some who do not have their clients’ best interests at heart. Remember, they are in business for themselves.
Over the past few months, a number of these individuals and companies around the country have been prosecuted for stealing funds intended for the payment of payroll taxes.
If you own a business you should also be aware of the trust fund recovery penalties found under 6672 of the Internal Revenue Code.
Like employers who handle their own payroll duties, employers who outsource this function are still legally responsible for any and all payroll taxes due.
This includes any federal income taxes withheld as well as both the employer and employee’s share of social security and Medicare taxes.
This is true even if the employer forwards tax amounts to a PSP or RA to make the required deposits or payments.
Here are some steps employers can take to protect themselves from unscrupulous third-party payers.
- Enroll in the Electronic Federal Tax Payment System and make sure the PSP or RA uses EFTPS to make tax deposits. Available free from the Treasury Department, EFTPS gives employers safe and easy online access to their payment history when deposits are made under their Employer Identification Number, enabling them to monitor whether their third-party payer is properly carrying out their tax deposit responsibilities. It also gives them the option of making any missed deposits themselves, as well as paying other individual and business taxes electronically, either online or by phone. To enroll or for more information, call toll-free 800-555-4477or visit www.eftps.gov.
- Refrain from substituting the third-party’s address for the employer’s address. Though employers are allowed to and have the option of making or agreeing to such a change, the IRS recommends that employers continue to use their own address as the address on record with the tax agency. Doing so ensures that the employer will continue to receive bills, notices and other account-related correspondence from the IRS. It also gives employers a way to monitor the third-party payer and easily spot any improper diversion of funds.
- Contact the IRS about any bills or notices and do so as soon as possible. This is especially important if it involves a payment that the employer believes was made or should have been made by a third-party payer. Call the number on the bill, write to the IRS office that sent the bill, contact the IRS business tax hotline at 800-829-4933 or visit a local IRS office. See Notices for Past Due Tax Returns on IRS.gov for more information.
- For employers who choose to use a reporting agent, be aware of the special rules that apply to RAs. Among other things, reporting agents are generally required to use EFTPS and file payroll tax returns electronically. They are also required to provide employers with a written statement detailing the employer’s responsibilities including a reminder that the employer, not the reporting agent, is still legally required to timely file returns and pay any tax due. This statement must be provided upon entering into a contract with the employer and at least quarterly after that.
- Become familiar with the tax due dates that apply to employers, and use the Small Business Tax Calendar to keep track of these key dates.
Also remember if payroll taxes are not paid, the IRS can collect individually from corporate officers or individuals responsible for both filing and paying quarterly tax reports to the Internal Revenue Service.
If you have a payroll tax problem with the IRS contact us today for immediate resolution.
by Fresh Start Tax | Mar 24, 2014 | Tax Help
FATCA: The Truth About Treasury’s Effort To Combat Offshore Tax Evasion
FATCA is here to stay for good simply because of the sheer volume of revenue it brings into the pocket book of the US government.
At the end of the day, it is all about the money.
The following is a article from Robert Stack is the Deputy Assistant Secretary for International Tax Affairs at the U.S. Department of the Treasury to clear up facts from fiction.
It is important for people to understand that the United States government is extremely serious about FATCA/FBAR.
If you have a situation that you need to speak about or need effective defense representation contact us today for a free initial conversation that is covered under the attorney-client privilege.
When calling our office you will need to ask to speak to one of our tax attorneys directly.
FACTA – The Foreign Account Tax Compliance Act – Fact from Fiction
The Foreign Account Tax Compliance Act (FATCA) is rapidly becoming the global standard in the effort to curtail offshore tax evasion.
This month’s G-20 communique marked another important milestone highlighting the importance of global tax transparency and a renewed commitment to work towards an international standard for the exchange of tax information.
With the Internal Revenue Service collecting over $5 billion the first three years in the international effort to collect back taxes on foreign bank accounts you can believe that the US government will be hot on the heels of all those not in compliance.
The Tax Gap
There has been concern about the tax gap, that is the difference between the tax dollars that are owed under the law, and those that are actually collected.
Offshore tax evasion is a significant contributor to the tax gap.
FATCA establishes a process for foreign financial institutions (FFIs) to report information about U.S. account holders to the IRS.
The US Treasury developed intergovernmental agreements (IGAs) to implement FATCA effectively.
These IGAs will require all of the relevant FFIs in a jurisdiction to report information about offshore U.S. accounts, a reporting obligation that will help the IRS catch tax evaders.
Yet despite the clear, positive benefits of FATCA, many continue to make misleading claims about its implementation and impact per Robert Stack.
Here are the facts on FATCA:
Myth #1:
Many claim it is overly costly and burdensome due to complex regulations and difficult to meet reporting requirements.
The truth off the matter the Treasury and the IRS have designed our regulations in a way that minimizes administrative burdens and related costs.
The regulations were intentionally designed to appropriately balance the scope of entities and accounts subject to FATCA with due diligence requirements, while also phasing in the related obligations over several years.
Many cases, FFIs are permitted to rely on information that they already must collect for local anti-money laundering and know-your-customer rules.
Many of these cost-saving simplifications were the result of comments received from affected financial institutions and foreign governments, which helped us to tailor the rules to achieve the policy objectives of the statute without imposing undue burdens or costs.
Myth #2.
Some claim that U.S. citizens living overseas will become outcasts in the international financial world.
Fact: FATCA withholding applies to the U.S. investments of FFIs whether or not they have U.S. account holders, so turning away known U.S. account holders will not enable an FFI to avoid FATCA.
Most of the governments implementing FATCA through IGAs will require their financial institutions to identify and report on all non-resident account holders, not just U.S. account holders.
Those governments agree with FATCA’s policy objectives, and want to facilitate the collection of information about the offshore accounts of their own residents.
For example, 19 countries have already announced a pilot project to exchange account information about each other’s residents that will be collected by the governments in line with FATCA’s due diligence and reporting procedures.
FATCA is quickly becoming the global standard for automatic information exchange and we expect the number of jurisdictions that choose to implement the same reporting procedures for all offshore accounts to continue to grow.
Fact# 3:
Some claim that Americans living abroad will give up their U.S. citizenship because of liabilities and burdens created by FATCA.
FATCA provisions impose no new obligations on U.S. citizens living abroad. FATCA’s withholding obligations fall on institutions making payments to FFIs, and the due diligence and reporting requirements fall on the FFIs themselves.
U.S. taxpayers, including U.S. citizens living abroad, are required to comply with U.S. tax laws.
Individuals that have used offshore accounts to evade tax obligations may rightly fear that FATCA will identify their illicit activities.
Yet a decision to renounce U.S. citizenship would not relieve these individuals of prior U.S. tax obligations, and might well create additional U.S. tax obligations for certain citizens and long-term residents who give up citizenship or residency.
Myth# 4:
Some claim that countries are opposed to FATCA, in part because the legislation could force foreign banks to violate laws in their own countries.
The Treasury’s decision to implement FATCA through IGAs that are respectful of the individual laws and customs of partner jurisdictions has contributed to the significant international interest in participating in FATCA compliance efforts.
The two FATCA model IGAs incorporate a two-pronged approach: under the first model, FFIs report to their respective governments who then relay that information to the IRS; or, under the second model, they report directly to the IRS to the extent the account holder consents or such reporting is otherwise legally permitted, supplemented by government-to-government cooperation to facilitate reporting on non-consenting accounts.
These model IGAs offer alternative frameworks for information sharing that abides by local laws.
The success of this approach is evidenced by the international response to this legislation.
To date, Treasury has signed 9 IGAs and has reached 15 agreements in substance, including with Malta, Bermuda, and the Cayman Islands. We are also engaged with over 70 additional countries and expect to conclude negotiations with several others soon.
In September 2013, G-20 leaders committed to the automatic exchange of information as the new global standard, and endorsed the development of a single model for this exchange, which is expected to be based on the FATCA IGAs.
Myth #5:
Some claim that FATCA will generate a backlash from foreign governments who view this as an overreach of U.S. law.
FATCA has received considerable international support because most foreign governments recognize how effective FATCA, and in particular our intergovernmental approach, will be in detecting and combating tax evaders. G-8 leaders recently acknowledged the central role of tax information exchange, stating in their June 2013 communiqué:
“A critical tool in the fight against tax evasion is the exchange of information between jurisdictions,” and urging that “[t]ax authorities across the world should automatically share information to fight the scourge of tax evasion.”
Myth# 6:
Some claim that FATCA will unfairly expose FFIs to heavy penalties before they have the necessary mechanisms in place to comply.
Recently announced a six-month extension to our withholding and account due diligence requirements because we recognize that FFIs need sufficient time to register for, understand, and implement their due diligence and reporting processes.
Those requirements will now start on July 1, 2014.
This extension exemplifies our commitment to ensuring that foreign jurisdictions and FFIs have sufficient time to properly prepare so that the law can be implemented effectively.
Myth #7.
Some claim that FATCA aims to use foreign banks as an extension of the IRS.
Individuals making this claim have confused reporting responsibilities with actual enforcement.
The objective of FATCA is the reporting of foreign financial accounts held by U.S. persons or certain entities with U.S. owners.
This law only requires FFIs to share information about financial accounts held by U.S. taxpayers, similar to what is already required of U.S. financial institutions; it does not include an enforcement component for those FFIs.
Myth#8.
Many individuals who call our offices believe they will not get caught.
While this is been true for the first three years, however due to many of the treaties that have been recently signed between governments, many if not all will start to comply.
At a point in time the US government will no longer be as lenient as they were in the beginning because the word has got out about the requirements of filing and registration.
We will expect to see a sharp rise in criminal prosecution. The bottom line here to anyone reading this blog is to find the government before they find you.
If you have a situation that you need to speak about or need effective defense representation contact us today for a free initial conversation that is covered under the attorney-client privilege.
When calling our office you will need to ask to speak to one of our tax attorneys directly.
The Truth about FACTA – Defense Representation – Attorneys, Lawyers – New York, Los Angeles, Chicago.
by Fresh Start Tax | Mar 24, 2014 | Tax Help
Offshore Tax Evasion – Attorneys, Lawyers – Criminal, Civil Representation
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The Treasury and IRS Issued Final Regulations to Combat Offshore Tax Evasion
Treasury Advances Efforts to Secure International Participation, Streamline Compliance, and Prepare for Implementation of the Foreign Account Tax Compliance Act.
The U.S. Department of the Treasury and the Internal Revenue Service issued comprehensive final regulations implementing the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act.
Enacted by Congress in 2010, these provisions target non-compliance by U.S. taxpayers using foreign accounts. The US government will be hot on the heels of tax cheats.
The issuance of the final regulations marks a key step in establishing a common intergovernmental approach to combating international tax evasion.
These final regulations provide additional certainty for financial institutions and government counterparts by finalizing the step-by-step process for :
- U.S. account identification,
- information reporting, and
- withholding requirements for foreign financial institutions (FFIs), other foreign entities, and U.S. withholding agents.
The final regulations issued today:
The Treasury Department has collaborated with foreign governments to develop and sign intergovernmental agreements that facilitate the effective and efficient implementation of FATCA by eliminating legal barriers to participation, reducing administrative burdens, and ensuring the participation of all non-exempt financial institutions in a partner jurisdiction.
In order to reduce administrative burdens for financial institutions with operations in multiple jurisdictions, the final regulations coordinate the obligations for financial institutions under the regulations and the intergovernmental agreements.
Phase in the timelines for due diligence, reporting and withholding and align them with the intergovernmental agreements.
The final regulations phase in over an extended transition period to provide sufficient time for financial institutions to develop necessary systems.
In addition, to avoid confusion and unnecessary duplicative procedures, the final regulations align the regulatory timelines with the timelines prescribed in the intergovernmental agreements.
Expand and clarify the scope of payments not subject to withholding. To limit market disruption, reduce administrative burdens, and establish certainty, the final regulations provide relief from withholding with respect to certain grandfathered obligations and certain payments made by non-financial entities.
Refine and clarify the treatment of investment entities.
To better align the obligations under FATCA with the risks posed by certain entities, the final regulations:
- (1) expand and clarify the treatment of certain categories of low-risk institutions, such as governmental entities and retirement funds;
- (2) provide that certain investment entities may be subject to being reported on by the FFIs with which they hold accounts rather than being required to register as FFIs and report to the IRS; and
- (3) clarify the types of passive investment entities that must be identified and reported by financial institutions.
Clarify the compliance and verification obligations of FFIs. The final regulations provide more streamlined registration and compliance procedures for groups of financial institutions, including commonly managed investment funds, and provide additional detail regarding FFIs’ obligations to verify their compliance under FATCA.
Progress on International Coordination, Including Model Intergovernmental Agreements
Since the proposed regulations were published on February 15, 2012, Treasury has collaborated with foreign governments to develop two alternative model intergovernmental agreements that facilitate the effective and efficient implementation of FATCA.
What do the model serve as:
These models serve as the basis for concluding bilateral agreements with interested jurisdictions and help implement the law in a manner that removes domestic legal impediments to compliance, secures wide-spread participation by every non-exempt financial institution in the partner jurisdiction, fulfills FATCA’s policy objectives, and further reduces burdens on FFIs located in partner jurisdictions.
Seven countries have already signed or initialed these agreements.
Treasury announced for the first time that:
Norway has joined the United Kingdom, Mexico, Denmark, Ireland, Switzerland, and Spain as countries that have signed or initialed model agreements.
The Treasury is engaged with more than 50 countries and jurisdictions to curtail offshore tax evasion, and more signed agreements are expected to follow in the near future.
Additional Background on the Model Agreements
On July 26, 2012, Treasury published its first model intergovernmental agreement (Model 1 IGA). Instead of reporting to the IRS directly, FFIs in jurisdictions that have signed Model 1 IGAs report the information about U.S. accounts required by FACTA to their respective governments who then exchange this information with the IRS.
Treasury also developed a second model intergovernmental agreement (Model 2 IGA) published on November 14, 2012.
A partner jurisdiction signing an agreement based on the Model 2 IGA agrees to direct its FFIs to register with the IRS and report the information about U.S. accounts required by FATCA directly to the IRS.
These agreements do not offer an exemption from FATCA for any jurisdiction but instead offer a framework for information sharing pursuant to existing bilateral income tax treaties.
Under both models, all financial institutions in a partner jurisdiction that are not otherwise excepted or exempt must report the information about U.S. accounts required by FATCA.
Therefore, the IRS receives the same quality and quantity of information about U.S. accounts from FFIs in jurisdictions with IGAs as it receives from FFIs applying the final regulations elsewhere, but these agreements help streamline reporting and remove legal impediments to compliance.
Background on FATCA
FATCA was enacted in 2010 by Congress as part of the Hiring Incentives to Restore Employment (HIRE) Act. FATCA requires FFIs to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
In order to avoid withholding under FATCA, a participating FFI will have to enter into an agreement with the IRS to:
Identify U.S. accounts,
Report certain information to the IRS regarding U.S. accounts, and
Withhold a 30 percent tax on certain U.S.-connected payments to non-participating FFIs and account holders who are unwilling to provide the required information.
Registration will take place through an online system. FFIs that do not register and enter into an agreement with the IRS will be subject to withholding on certain types of payments relating to U.S. investments.
Treasury and IRS will continue to work closely with businesses and foreign governments to implement FATCA effectively.
Offshore Tax Evasion – Attorneys, Lawyers – Criminal, Civil Representation
