by Fresh Start Tax | Dec 5, 2013 | Tax Help
IRS Savers Credit – Tax Credit Help
Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2013 and the years ahead, according to the Internal Revenue Service.
The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs.
Also known as the retirement savings contributions credit, the saver’s credit is available in addition to any other tax savings that apply.
Eligible workers still have time to make qualifying retirement contributions and get the saver’s credit on their 2013 tax return. People have until April 15, 2014, to set up a new individual retirement arrangement or add money to an existing IRA for 2013.
However, elective deferrals (contributions) must be made by the end of the year to a 401(k) plan or similar workplace program, such as a 403(b) plan for employees of public schools and certain tax-exempt organizations, a governmental 457 plan for state or local government employees, and the Thrift Savings Plan for federal employees.
Employees who are unable to set aside money for this year may want to schedule their 2014 contributions soon so their employer can begin withholding them in January.
The saver’s credit can be claimed by:
- Married couples filing jointly with incomes up to $59,000 in 2013 or $60,000 in 2014;
- Heads of Household with incomes up to $44,250 in 2013 or $45,000 in 2014; and
- Married individuals filing separately and singles with incomes up to $29,500 in 2013 or $30,000 in 2014.
Like other tax credits, the saver’s credit can increase a taxpayer’s refund or reduce the tax owed.
Though the maximum saver’s credit is $1,000, $2,000 for married couples, the IRS cautioned that it is often much less and, due in part to the impact of other deductions and credits, may, in fact, be zero for some taxpayers.
A taxpayer’s credit amount is based on his or her filing status, adjusted gross income, tax liability and amount contributed to qualifying retirement programs.
Use Form 8880
Form 8880 is used to claim the saver’s credit, and its instructions have details on figuring the credit correctly.
In tax-year 2011, the most recent year for which complete figures are available, saver’s credits totaling just over $1.1 billion were claimed on nearly 6.4 million individual income tax returns. Saver’s credits claimed on these returns averaged $215 for joint filers, $166 for heads of household and $128 for single filers.
The saver’s credit supplements other tax benefits available to people who set money aside for retirement.
For example, most workers may deduct their contributions to a traditional IRA. Though Roth IRA contributions are not deductible, qualifying withdrawals, usually after retirement, are tax-free. Normally, contributions to 401(k) and similar workplace plans are not taxed until withdrawn.
Other special rules that apply to the saver’s credit include the following:
- Eligible taxpayers must be at least 18 years of age.
- Anyone claimed as a dependent on someone else’s return cannot take the credit.
- A student cannot take the credit. A person enrolled as a full-time student during any part of 5 calendar months during the year is considered a student.
Certain retirement plan distributions reduce the contribution amount used to figure the credit. For 2013, this rule applies to distributions received after 2010 and before the due date, including extensions, of the 2013 return. Form 8880 and its instructions have details on making this computation.
Begun in 2002 as a temporary provision, the saver’s credit was made a permanent part of the tax code in legislation enacted in 2006.
To help preserve the value of the credit, income limits are now adjusted annually to keep pace with inflation.
IRS Savers Credit – Tax Credit Help – Tax Preparation by Former IRS Agents
by Fresh Start Tax | Dec 5, 2013 | Tax Help
Stop IRS Levy – Intent to Seize Property
We are one of South Florida’s most experienced and affordable tax firms. We have been practicing since 1982 right here in South Florida and have an A+ rating by the Better Business Bureau.
We are comprised of tax attorneys, certified public accountants, and former IRS agents who have a combined 60 years right here in the South Florida IRS offices.
While at IRS we taught tax law in the local and regional tax offices.
We know all the protocol, all the systems in all the necessary elements to stop the IRS levy and to settle your case with the Internal Revenue Service.
Do not let the IRS notice of intent to levy or seize property get a foothold of worry or fear into your life. We can close your case within days.
Being former IRS agents, managers and tax instructors we know the immediate process to stop the IRS notice of intent to levy and seizure property.
We have affordable solutions that can help you deal with this problem and put your tax matter behind you.
The IRS Notice of Intent to Levy or Seize – IRS Next Step, Enforcement
Before the Internal Revenue Service takes enforcement action, that is sends out a notice of bank levy or wage levy the IRS is required to send out the notice of intent to levy your seize.
When most taxpayers receive CP 504 notice from the Internal Revenue Service it let them know IRS means business.
The IRS notice of intent to levy, is an attempt to seize property or rights to property. It also shows the amount that is due immediately to the Internal Revenue Service.
If you receive this notice you have plenty of time to make amends with the Internal Revenue Service so don’t let fear and panic set in too soon. You still have another 30 days.
Taxpayers simply need to either get professional tax help or call IRS themselves.
When calling the Internal Revenue Service
When you call the Internal Revenue Service the first thing IRS will do most check on the compliance of your back income tax returns to make sure that everything is filed and up-to-date.
The IRS will next check to make sure that you are compliant on current estimate payments or withholding. IRS will not deal with you unless all your tax returns are current and up-to-date. They use this as leverage so taxpayers who are not compliant must file their returns. Lastly they will deal with the issue at hand.
If you wind up owing money to the Internal Revenue Service it is mandatory that they issue a notice of intent to levy, an attempt to seize your property.
IRS believe it or not is simply trying to contact you to work out a deal so you can go ahead and pay your back taxes. IRS is simply trying to collect the back debt.
What IRS want from you if you do not have the money to full pay
IRS will require a current financial statement usually on form 433-F.
IRS will want that form 433F completely documented with all income, expenses including last three months bank statements and pay stubs. After IRS reviews your current financial statement they will make a determination.
IRS Determinations of Settlement
As a general rule your case will wind up in one of three categories.
IRS may determine that your case is currently noncollectable and put you into an economic tax hardship.
Another option IRS may have is to enter you into a current monthly installment or payment plan and the last option is recommending you file an offer in compromise to settle your tax debt. Before you try to settle your debt by the filing of an offer in compromise you should make sure that you are a suitable and acceptable candidate to do that. You should call us today or use the pre-qualifier tool on our website.
So if you receive an IRS notice of intent to levy, intent to seizure property call us today we can give you a free initial tax consultation and let you know how to best handle your case.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors
We have over 60 years of combined IRS experience in the local, district, and regional tax offices of the Internal Revenue Service.
Don’t let this notice enslave your life do something about it today.
We are one of the most affordable and experienced tax firms in South Florida.
We are A+ rated by the Better Business Bureau.
Stop IRS Levy – Intent to Seize Property with Former IRS Agents – The Affordable Local Firm
by Fresh Start Tax | Dec 5, 2013 | Tax Help
Stop IRS Intent to Seize Property with Former IRS Agents – the Affordable Firm
STOP THE WORRY TODAY 1-866-700-1040
Being former IRS agents, managers and tax instructors we know the immediate process to stop the IRS notice of intent to levy and seizure property.
We have affordable solutions that can help you deal with this problem and put your tax matter behind you.
When most taxpayers receive CP 504 notice from the Internal Revenue Service it let them know the IRS is on the hunt.
This allows IRS to start enforcement after the intent to levy, an attempt to seize property or rights to property is received by the taxpayers. This form shows the amount that is due immediately to the Internal Revenue Service.
If you receive this notice you have plenty of time to make amends with the Internal Revenue Service so don’t let fear and panic set in too soon.
Taxpayers simply need to either get professional tax help or call IRS themselves.
When you call the Internal Revenue Service the first thing IRS will do most check on the compliance of your back income tax returns to make sure that everything is filed and up-to-date. They will next check to make sure that you are compliant on current estimate payments or withholding. Lastly they will deal with the issue at hand.
If you wind up owing money to the Internal Revenue Service it is mandatory that they issue a notice of intent to levy, an attempt to seize your property. IRS believe it or not is simply trying to contact you to work out a deal so you can go ahead and pay your back taxes.
IRS will require a current financial statement usually on form 433-F. IRS will want that form 433F completely documented with all income, expenses including last three months bank statements and pay stubs. After IRS reviews your current financial statement they will make a determination.
As a general rule your case will wind up in one of three categories.
IRS may determine that your case is currently uncollectible and put you into an economic tax hardship.
Another option IRS may have is to enter you into a current monthly installment or payment plan and the last option is recommending you file an offer in compromise to settle your tax debt.
So if you receive an IRS notice of intent to levy, intent to seizure property call us today we can give you a free initial tax consultation and let you know how to best handle your case.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors
We have over 60 years of combined IRS experience in the local, district, and regional tax offices of the Internal Revenue Service.
Don’t let this notice enslave your life do something about it today.
We are one of the most affordable and experienced tax firms for nationwide tax relief. We are A+ rated by the Better Business Bureau.
Stop IRS Intent to Seize Property with Former IRS Agents – Affordable Tax Help
by Fresh Start Tax | Dec 4, 2013 | Tax Help
IRS CADE 2 Database Deployment is Experiencing Delays and Increased Costs
Deployment of the Internal Revenue Service’s (IRS) Customer Account Data Engine 2 (CADE 2) database has been delayed and its deployment cost has risen an estimated 74 percent to $83 million, according to a new report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).
Taxpayer service improvements that were to be provided by the CADE 2 database have also been delayed, the report stated.
The CADE 2 mission is to provide state-of-the-art individual taxpayer account processing that will improve service to taxpayers.
It will replace the current Individual Master File (IMF) account settlement system with a relational database and become a key component of the IRS’s enterprise-wide, data-centric information technology strategy.
CADE 2 is being implemented in phases.
In Transition State 1, the IRS is establishing a relational database that will store all individual taxpayer accounts. Processing on the current IMF will be enhanced to allow daily batch processing, allowing the key IRS customer service database, the Integrated Data Retrieval System (IDRS), to have the benefit of more timely posted data.
The IRS will also develop interfaces between the CADE 2 database and selected systems, including the IMF, the IDRS, and Corporate Files Online (CFOL).
The overall objective of TIGTA’s review was to determine whether the IRS has implemented adequate data validation to ensure that the data provided to select systems are accurate and complete.
While the IRS effectively managed and resolved more than 1,000 data defects, it did not meet its June 2013 deadline for implementing system interfaces to allow IRS employees to access data, TIGTA found.
With a revised projected implementation date of January 2014, the overall total estimated cost of Transition State 1 system deployment rose from $47.7 million to $83 million. In addition, the lack of security systems integration prevents transaction-level tracking of employee access to the CADE 2 database.
“I am troubled by these delays and the escalating costs associated with implementing this significant component of the IRS’s modernization efforts,” said J. Russell George, Treasury Inspector General for Tax Administration. “The IRS needs to be aggressive in its efforts to resolve these problems.”
TIGTA made four recommendations, including that CADE 2 not exit Transition State 1 Milestone 5 until the interfaces with selected downstream systems are implemented into production and the database is accurate, complete, and timely.
The IRS agreed with one of the four recommendations and plans to certify that the database is accurate, complete, timely, and available to serve as the trusted source. IRS management disagreed with the three remaining recommendations.
TIGTA believes risks remain.
by Fresh Start Tax | Dec 4, 2013 | Tax Help
Did IRS Send you a Tax Levy – Get Local Affordable Tax Help
We can get your tax levy released quickly and for affordable fees and settle your case all at the same time.
We are comprised of local tax attorneys, certified public accountants, former IRS agents, managers and tax instructors.
As former IRS agents and managers we work out the local South Florida tax offices. We also taught out of the district and regional tax offices.
Being former IRS agents and managers we know the exact process to get an immediate release of a federal tax levy, both bank levies and wage garnishment levies.
We know the exact system and the exact protocols to make this a seamless process for you.
Because of our streamlined approach of knowing the Internal Revenue Service we have become one of the most affordable tax firms for IRS tax problem relief.
Call us today! Have you been sent a Notice of Tax Levy Filing?
If the Internal Revenue Service has you a notice of a federal tax levy on your bank account or wages contact us today and get immediate affordable professional help.
Bank account levies by the Internal Revenue Service 668-A
There is a little bit a good news if the Internal Revenue Service says sent you a levy on your bank account, savings account or other financial institutions.
You should know, that the money is not taken out of your account immediately.Yes, you can breathe a little.
There is actually a freeze on the funds for 21 days.You can use the account but the funds are frozen the day the bank levy hit. If a deposit was made after the levy hit the bank you are free to use those funds.
The IRS allows you a 21 day period to call the Internal Revenue Service and work out a deal or settlement with them to get your levy removed. Wage Levies
The news is not so good on an IRS wage levy.
When an employer receives a wage levy they are mandated by federal law to take part of your next check and send it to the Internal Revenue Service. Generally, you keep 10% of your wages and the rest goes to the IRS.
How to get the tax levy Released
To get an IRS notice of levy released the taxpayer will have to give IRS a current financial statement which most likely will be on form 433F or 433A.
That financial statement will need to be fully documented including pay stubs, three months worth of bank accounts statements , and proof of all income and expenses.
Once the Internal Revenue Service reviews your current financial statement they will place you on one of three categories based you on your current finances.
IRS will either place your account into an:
1. economic tax hardship,
2. ask you to make a monthly installment payments or
3. let you know you are an offer in compromise candidate.
You can contact us today to start the process of getting immediate release of your IRS tax Levy we can also settle your case at the same time.
What is a IRS Tax Levy
A levy is a legal seizure of your property to satisfy a tax debt. Both are easily confused.
IRS Levies are different from IRS liens.
A federal tax lien is a claim used as security for the tax debt, while a IRS levy actually takes the property to satisfy the tax debt.
If you do not pay your taxes the IRS may seize and sell any type of real or personal property that you own or have an interest in.
IRS has the right to:
1. Seize and sell property that you hold such as your car, boat, or house, or
2. IRS could also levy property that is yours but is held by someone else such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions.
3- Three requirements must met before the IRS can Levy
1. The IRS assessed the tax and sent you a Notice and Demand for Payment;
2. You neglected or refused to pay the tax and
3. IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.
How Service of the Notice must take place
IRS may give you this notice :
1. in person,
2. leave it at your home or
3. your usual place of business, or
send it to your last known address by certified or registered mail, return receipt requested.
A levy release does not mean you are exempt from paying the balance.
The IRS will work with you to establish payment plans or take other steps to help you pay off the balance.
To help ensure quick action, please have the fax number available for the bank or employer office that is processing the levy.
Employers
Employers generally have at least one full pay period after receiving a Form 668-W, Notice of Levy on Wages, Salary and Other Income before they are required to send any funds from their employee’s wages.
Employers should encourage your employees that have a levy placed on their wages to contact the IRS as soon as possible to discuss a release of levy and resolution of their tax liability.
IRS Manager Review
You may ask an IRS manager to review your case, or you may request a Collection Due Process hearing with the Office of Appeals by filing a request for a Collection Due Process hearing with the IRS office listed on your notice.
IRS Appeals Requests
You must file your request within 30 days of the date on your notice.
Some of the issues you may discuss include:
You paid all you owed before we sent the levy notice,IRS assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy,IRS made a procedural error in an assessment, the time to collect the tax (called the statute of limitations) expired before we sent the levy notice,you did not have an opportunity to dispute the assessed liability.
You may also wish to:
1. You wish to discuss the collection options, or
2. You wish to make a spousal defense.
The Office of IRS Appeals if you do not like the decision
At the conclusion of your hearing, the Office of Appeals will issue a determination. You will have 30 days after the determination date to bring a suit to contest the determination. Refer to Publication 1660 (PDF), for more information.
If your property is levied or seized, contact the employee who took the action. You also may ask the manager to review your case.
If the matter is still unresolved, the manager can explain your rights to appeal to the Office of Appeals.
Call us today and speak to one of the most experienced South Florida tax firms in dealing with an IRS tax Levy.
We’ve been practicing since 1982 right here in South Florida and are A+ rated by the Better Business Bureau.
Did IRS Send you a Tax Levy, – Get Local Affordable Tax Help, – Miami, Ft.Lauderdale,
by Fresh Start Tax | Dec 4, 2013 | Tax Help
We can get your tax levy released!
Being former IRS agents and managers we know the exact process to get an immediate release of a federal tax levy.
We know the exact system and the exact protocols to make this a seamless process for you.
Because of our streamlined approach of knowing the Internal Revenue Service we have become one of the most affordable tax firms for IRS tax problem relief.
We have been in practice since 1982 in are A+ rated by the Better Business Bureau
Did IRS Levy You? Get Immediate Affordable Professional Help
Call us today!
If the Internal Revenue Service has you a notice of a federal tax levy on your bank account or wages contact us today and get immediate affordable professional help.
Bank account levies by the Internal Revenue Service
There is a little bit a good news if the Internal Revenue Service says sent you a levy on your bank account.
You should know, that the money is not taken out of your account immediately.
There is actually a freeze on the funds for 21 days.
The IRS allows you a 21 day period to call the Internal Revenue Service and work out a deal or settlement with them to get your levy removed. Most professional tax companies will get your bank account levy released within a 3- 21 day period.
Wage Levies
The news is not so good on an IRS wage levy.
When an employer receives a wage levy they are mandated by federal law to take part of your next check and send it to the Internal Revenue Service.
Most professional firms to get a levy released within a 72 hour period of time.
How to get the levy Released
To get an IRS notice of levy released the taxpayer will have to give IRS a current financial statement which most likely will be on form 433F.
That financial statement will need to be fully documented including pay stubs, three months worth of bank accounts statements , and proof of all income and expenses. Once the Internal Revenue Service reviews your current financial statement they will place you on one of three categories basing you on your current finances.
IRS will either place your account into an:
- economic tax hardship,
- ask you to make a monthly installment payments or
- let you know you are an offer in compromise candidate.
You can contact us today to start the process of getting immediate release of your IRS tax Levy we can also settle your case at the same time
What is a Tax Levy
A levy is a legal seizure of your property to satisfy a tax debt.
IRS Levies are different from IRS liens.
A federal tax lien is a claim used as security for the tax debt, while a IRS levy actually takes the property to satisfy the tax debt.
If you do not pay your taxes the IRS may seize and sell any type of real or personal property that you own or have an interest in.
IRS has the right to:
Seize and sell property that you hold such as your car, boat, or house, or
IRS could also levy property that is yours but is held by someone else such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions.
Three requirements must met before the IRS can Levy
1. The IRS assessed the tax and sent you a Notice and Demand for Payment;
2. You neglected or refused to pay the tax and
3. IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.
How Service must take place
IRS may give you this notice :
- in person,
- leave it at your home or
- your usual place of business, or
- send it to your last known address by certified or registered mail, return receipt requested.
- A levy release does not mean you are exempt from paying the balance. The IRS will work with you to establish payment plans or take other steps to help you pay off the balance.
- To help ensure quick action, please have the fax number available for the bank or employer office that is processing the levy.
Employers generally have at least one full pay period after receiving a Form 668-W, Notice of Levy on Wages, Salary and Other Income before they are required to send any funds from their employee’s wages.
Encourage your employees that have a levy placed on their wages to contact the IRS as soon as possible to discuss a release of levy and resolution of their tax liability.
You may ask an IRS manager to review your case, or you may request a Collection Due Process hearing with the Office of Appeals by filing a request for a Collection Due Process hearing with the IRS office listed on your notice.
Appeals Requests
You must file your request within 30 days of the date on your notice. Some of the issues you may discuss include:
- You paid all you owed before we sent the levy notice,
- We assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
- We made a procedural error in an assessment,
- The time to collect the tax (called the statute of limitations) expired before we sent the levy notice,
- You did not have an opportunity to dispute the assessed liability,
- You wish to discuss the collection options, or
- You wish to make a spousal defense.
The Office of Appeals
At the conclusion of your hearing, the Office of Appeals will issue a determination. You will have 30 days after the determination date to bring a suit to contest the determination. Refer to Publication 1660 (PDF), for more information.
If your property is levied or seized, contact the employee who took the action. You also may ask the manager to review your case.
If the matter is still unresolved, the manager can explain your rights to appeal to the Office of Appeals.
We are a national tax firm that specializes in IRS taxpayer relief. If you have not contemplated the filing of an offer in compromise to settle your case contact us today and we will do a free analysis to let you know if you qualify for an IRS tax debt settlement.
Did IRS Levy You? Get Immediate Affordable Professional Help
