by Fresh Start Tax | Feb 14, 2014 | Tax Help
We are Florida’s affordable tax firm that specialize in ending IRS problems.
Since 1982, a plus rated by the BBB.
There is a fast easy process that taxpayers can make arrangements to pay the IRS.
We should know, we are a team of former IRS agents.
We handle all cases from unfiled tax returns, the IRS tax audits, IRS tax settlements and making a payment agreement that suits your financial means and capability.
You can call us today for a free initial tax consultation and we will let you know the best option for you that will quickly resolve your IRS problem.
Make Arrangements to Pay the IRS
Taxpayers do have to meet certain conditions before they can make arrangement to pay the IRS.
Please Note – To make arrangements to pay IRS, all of your tax returns must be filed.
So if you have not filed in a few years, you must do that first.
Your total balance due, including any assessed penalties and interest, must be $50,000 or less.
If you owe between $25,000 and $50,000, you have to sign up for a direct-debit payment agreement.
Direct debit is where your monthly payments are automatically deducted from your bank account.
And finally, you must be able to pay off your taxes in full in 72 months ( 6 years ) or less.
Make Arrangements to pay the IRS – Get IRS Payment Plan – Affordable, Fast – Jacksonville, Tampa, Orlando, Tallahassee
by Fresh Start Tax | Feb 13, 2014 | Tax Help
We are Florida’s affordable professional tax firm, a plus rated BBB.
The Internal Revenue Service has made the Offer in Compromise much easier than ever before.
The offer in compromise or a tax debt settlement is a binding contract between the US government and the taxpayer.
About 38% of all offers in compromise or accepted by the Internal Revenue Service.
I am a former IRS Agent and teaching Instructor. I taught the offer in compromise program while a revenue officer at the IRS.
By contacting us today we can offer you a free tax consultation to find out whether you qualify for offer in compromise, tax debt settlement.
Finally, the IRS made it easy the accept the Offer in Compromise
It took them a long time but the Internal Revenue Service finally made it easy for taxpayers to settle their tax debt through the offer in compromise.
About three years ago management of the IRS came out with the new fresh start program or fresh start initiative that help taxpayers who owed back tax debt settle with the Internal Revenue Service.
When I was a former IRS agent and teaching instructor the offer in compromise was frowned upon. Why, simply because they took so long to work and there were no guidelines.
Facts for the Offer in Compromise, Tax Debt Settlements
This last year 58,000 offers in compromise were filed and 38% of all those were accepted.
The average settlement on a dollar was $.14.
Right now the average wait to have your offer in compromise worked is four – eight months.
7500 cases right now or sitting in the IRS offer in compromise Queue.
Most taxpayers who have their offers in compromise accepted our file by professional tax firms.
The key to getting an offer in compromise settled by the Internal Revenue Service
If you want to settle your tax debt with the offer in compromise it’s all about packaging and knowing the formulas.
The easier you package the case the easier the agent can review it and accept your tax debt settlement. The more work you do the less work IRS rest does.
Our recommendation is that you fill out the forms accurately and correctly and make sure all documentation is there so IRS can process your offer in compromise all at one time.
This makes the IRS settlement easy. IRS is looking for easy. With the IRS under time constraints they cannot be spending a lot of time searching for documents. So put a nice neat file together with exhibits and page numbers.
The most common mistakes taxpayers make is the lack of documentation. if you cannot substantiate your income, expenses we are bank statements you can pretty much know that your offer and compromise, tax debt settlement will be rejected by the Internal Revenue Service.
Do not give the Internal Revenue Service or reason to reject your offer.
IRS will generally take the first road out of town and reject your offer if the packaging is incorrect. There are 7500 cases right now in the IRS queue that cannot be worked so IRS generally will reject the offer before they will tend to accept them. Basically anything on the offer in compromise financial statements that has a number on it must be verified to the Internal Revenue Service.
Documentation is key to settlement.
The key factor to settle on the lowest dollar.
To settle for the lowest hour possible you must understand the formulas.
IRS wants to get into your pocket as much as they can so they will look closely at the liquidity of your assets values and your income to expense ratios.
IRS has a system called the national standard expenses that they will apply against your income.
It is important to know national, local and geographical standards and apply them against your income.
Before any taxpayer submits an offer in compromise the taxpayer is best served by filling out and seeing for themselves that their offer has a chance to be accepted.
IRS Pre-Qualifier Tool
You can go to our homepage and click on forms and click on the link that says pre-qualifier tool for the offer in compromise.
There is a five step process that will tell you whether IRS will accept your offer in compromise.
It will take you no more than three minutes to complete this short process that will lead to know the process, understand what IRS is looking for and let you know what a potential settlement would cost in terms of the IRS acceptance.
It is best to have a professional person review your offer in compromise before it is sent to the Internal Revenue Service.
Grounds for Acceptance for the Offer in Compromise
The IRS may accept an OIC based on three grounds.
First, acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third, acceptance is permitted based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Offers in Compromise, Tax Debt Settlements
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements.
An offer in compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.
The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
Offer in Compromise, Tax Debt Settlement – Jacksonville, Tampa, Orlando, Tallahassee – Settle with the IRS
by Fresh Start Tax | Feb 13, 2014 | Offer in Compromise, Tax Help, Tax Settlements
IRS Settlement Made Easy with the Offer in Compromise
I am a former IRS Agent and teaching Instructor.
It took them a long time but the Internal Revenue Service finally made it easy for taxpayers to settle their tax debt through the offer in compromise.
About three years ago management of the IRS came out with the new fresh start program or fresh start initiative that help taxpayers who owed back tax debt settle with the Internal Revenue Service.
When I was a former IRS agent and teaching instructor the offer in compromise was frowned upon.
Acceptance Rates for the Offer in Compromise
This last year 58,000 offers in compromise were filed and 38% of all those were accepted.
The average settlement on a dollar was $.14.
Right now the average wait to have your offer in compromise worked is four – eight months.
7500 cases right now or sitting in the IRS offer Queue.
The key to getting an offer in compromise settled
If you want to settle your tax debt with the offer in compromise it’s all about packaging and knowing the formulas.
The more work you do the less work IRS rest does.
Our recommendation is that you fill out the forms accurately and correctly and make sure all documentation is there so IRS can process your offer in compromise all at one time.
This makes the IRS settlement easy. IRS is looking for easy.
The most common mistakes taxpayers make is the lack of documentation.
Do not give the Internal Revenue Service or reason to reject your offer.
IRS will generally take the first road out of town and reject your offer if the packaging is incorrect. There are 7500 cases right now in the IRS queue that cannot be worked so IRS generally will reject the offer before they will tend to accept them. Basically anything on the offer in compromise financial statements that has a number on it must be verified to the Internal Revenue Service.
Documentation is key to settlement.
The key factor to settle on the lowest dollar.
To settle for the lowest hour possible you must understand the formulas.
IRS wants to get into your pocket as much as they can so they will look closely at the liquidity of your assets values and your income to expense ratios.
IRS has a system called the national standard expenses that they will apply against your income.
It is important to know national, local and geographical standards and apply them against your income.
Before any taxpayer submits an offer in compromise the taxpayer is best served by filling out and seeing for themselves that their offer has a chance to be accepted.
You can go to our homepage and click on forms and click on the link that says pre-qualifier tool for the offer in compromise.
There is a five step process that will tell you whether IRS will accept your offer in compromise.
If IRS feels you can keep making monthly payments however because you have substantial money left over monthly, IRS could reject your offer in compromise.
That’s why it is best to have a professional person review your offer in compromise before it is sent to the Internal Revenue Service.
Three Grounds of Acceptance
The IRS may accept an OIC based on three grounds.
First, acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
Second, acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
Third, acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Other Information Offers in Compromise
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
IRS Making it Easier to Settle Tax with the Offer in Compromise – Former IRS Settlement
by Fresh Start Tax | Feb 13, 2014 | Tax Help
Alternative Minimum Tax
You may have to pay this tax if your income is above a certain amount.
The AMT attempts to ensure that some individuals who claim certain tax benefits pay a minimum amount of tax.
Here are some things from the IRS that you should know about AMT:
Its dreadful to have to pay this:
You may have to pay the tax if your taxable income, plus certain adjustments, is more than the AMT exemption amount for your filing status.
If your income is below this amount, you usually will not owe AMT.
The 2013 AMT exemption amounts for each filing status are:
- Single and Head of Household – $51,900
- Married Filing Joint and Qualifying Widow(er) – $80,800
- Married Filing Separate – $40,400
The rules for AMT are more complex than the rules for regular income tax. The best way to make it easy on yourself is to use IRS e-file to prepare and file your tax return.
If you owe AMT, you usually must file Form 6251, Alternative Minimum Tax – Individuals.
Some taxpayers who owe AMT can file Form 1040A and use the AMT Worksheet in the instructions.
Alternative Minimum Tax – What you need to KNOW, Former IRS
by Fresh Start Tax | Feb 13, 2014 | Tax Help
Affordable Experts for IRS, State Audit Defense – Tax Audit Representation
If you have an IRS or state tax problem of any kind contact us today and we can review your case and give you an expert opinion on the best way to resolve the issues at hand.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
We handle all issues like federal and state tax garnishments or levies, the filing of back tax returns, all sorts of tax settlement cases, and IRS and state tax audit defense.
We are the affordable tax professionals.
Tax Audits
Only 1% of all tax returns get audited as a general rule by the Internal Revenue Service or the state of Florida Department of revenue.
If you are one of these unlucky souls who have won the audit lottery, take some comfort because as former IRS and state tax auditors we can provide you your best tax defense and save you is much money is humanly possible.
If you wind up owing tax, we will work out a tax settlement for you.
There are many reasons that both the Internal Revenue Service and the state of Florida audits taxpayers.
The most common reason is that you are either turned in by a third-party, you fell out of the national averages or something about your tax return caught the attention of the IRS or the state of Florida.
Many times being inconsistent and paying and inconsistent and filing will generate tax audits.
If this is happening to you contact us today and we will refer you to the expert who matches your industry expertise.
We have been in private practice since 1982 and we are A+ rated by the Better Business Bureau.
Question Asked by most taxpayers regarding IRS or State Tax Audits
How far back can the IRS/State go to audit my return?
Generally, the IRS/State can include returns filed within the last three years in an audit. Additional years can be added if a substantial error is identified.
Generally, if a substantial error is identified, the IRS will not go back more than the last six years.
The IRS/State tries to audit tax returns as soon as possible after they are filed. Accordingly most audits will be of returns filed within the last two years.
If an audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return.
The statute of limitations limits the time allowed to assess additional tax.
The statute of limitations is generally three years after a return is due or was filed, whichever is later. There is also a statute of limitations for making refunds.
If the audit is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date.
This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the audit results, or to claim a tax refund or credit. It also allows the IRS time to complete the audit and provides time to process the audit results.
You do not have to agree to extend the statute of limitations date.
However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have. Therefore, the examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
IRS, State Tax Audit Defense – IRS Problems – Affordable Experts – Clearwater, Largo, St. Pete, Port Charlotte – FLORIDA
by Fresh Start Tax | Feb 13, 2014 | Tax Help
How to Choose the right Filing Status for your Income Tax Return
You need to use the right status because it affects how much you pay in taxes. It may even affect whether you must file a tax return.
When choosing a filing status, keep in mind that your marital status on Dec. 31 is your status for the whole year.
If more than one filing status applies to you, choose the one that will result in the lowest tax.
Note for same-sex married couples.
New rules apply to you if you were legally married in a state or foreign country that recognizes same-sex marriage.
You and your spouse generally must use a married filing status on your 2013 federal tax return.
This is true even if you and your spouse now live in a state or foreign country that does not recognize same-sex marriage.
Here is a list of the filing statuses to help you choose:
1. Single.
This status normally applies if you aren’t married or are divorced or legally separated under state law.
2. Married Filing Jointly.
A married couple can file one tax return together. If your spouse died in 2013, you usually can still file a joint return for that year.
3. Married Filing Separately.
A married couple can choose to file two separate tax returns instead of one joint return. This status may be to your benefit if it results in less tax. You can also use it if you want to be responsible only for your own tax.
4. Head of Household.
This status normally applies if you are not married. You also must have paid more than half the cost of keeping up a home for yourself and a qualifying person. Some people choose this status by mistake. Be sure to check all the rules before you file.
5. Qualifying Widow(er) with Dependent Child.
If your spouse died during 2011 or 2012 and you have a dependent child, this status may apply. Certain other conditions also apply.
If you would like to have your tax return prepared by former IRS agents contact us today, happy filing!
