by Fresh Start Tax | Oct 31, 2013 | Tax Help
Uncle Sam is ready to play hardball.
If you owe over $50,000, you better contemplate settling your tax debt as soon as you can through the IRS offer in compromise and now is the best time.
You have a 38% chance the IRS will settle your case once and for all.
If you need to settle call us today and speak to former IRS agents who can settle your case if you qualify.
We can walk you through the IRS Pre-Qualifier tool to see if you are eligible.
Here’s a story to remind us that government processes can directly impact our travel plans:
A law buried in a proposed bill could prevent U.S. travelers who owe taxes from leaving the country.
According to a report that appeared in Forbes this past spring, Bill 1813 contains language that would allow the government to take passports away from travelers in debt to the Internal Revenue Service (IRS).
The bill is currently pending in the House of Representatives.
In March, the Senate passed Bill 1813, which was introduced by Senator Barbara Boxer. The bill is more than 1,000 pages long and mainly addresses the allocation of federal funds for transportation purposes.
But planted in the bill is an amendment that would permit the State Department to take away a person’s passport if he or she owes significant back taxes to the IRS.
Here’s what it says in section 7345 of the proposed legislation:
“If … any individual has a seriously delinquent tax debt in an amount in excess of $50,000, the Secretary shall transmit such certification to the Secretary of State for action with respect to denial, revocation, or limitation of a passport.”
According to the bill, your passport won’t be revoked if you pay your debt “in a timely manner” or if you need a passport for “emergency circumstances or for humanitarian reasons.”
Note that the passport revocation only applies to instances of “seriously delinquent” debt of more than $50,000.
This isn’t limited to criminal tax cases or situations where the government fears someone is fleeing a tax debt. The bill, 1813 still needs to be passed by the House and then signed by the House.
There is always the possibility a part pay agreement with the IRS may due the trick as well so you can keep your passport.
If you are in this position do not wait to the last minute because IRS will be flooded with requests to settle.
IRS & Passports – Settle Now with the IRS or Lose your Passport ?
by Fresh Start Tax | Oct 30, 2013 | Tax Help
We are the Affordable Tax Firm
We are a Florida tax firm that specializes in filing back tax returns and settling with the Internal Revenue Service.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982) the state of Florida.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors.
We have over 206 years professional tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
Our former IRS agents work right here in the state of Florida.
Yes, you can file all your back tax returns and settle with the IRS all at one time.
Being Former IRS agents, managers and IRS tax instructors we know the systems and process and we worked right here in the State of Florida.
Millions of taxpayers have not filed back tax returns and there is an easy way to get back into the system and settle your case with the Internal Revenue Service.
Do not let fear control the situation, you can move through this process by using former IRS agents, managers and tax instructors who know the system to get you permanent tax relief.
How to File Back Tax Returns (if you have your tax records )
If you have all your back tax documents just go ahead and file all back tax returns at one time with the Internal Revenue Service. There is nothing wrong with putting them all in the same envelope in forwarding to the service center closest to your location. It is always best to use professional tax firm to make sure you are paying the lowest amount of tax allowed by law.
How the file back tax returns ( if you have no tax records)
If you do not have your back tax records or have scattered records you should know that the Internal Revenue Service keeps on their computer system the last seven years worth of income documents they have received from third parties.
These documents include W-2s, 1099s, and reports from other third parties showing the income you have received through them. Through the process of tax reconstruction, being former IRS agents we can reconstruct your back tax returns. We simply will average your past expenses and come up with a approximation of your back tax returns.
You should know that the Internal Revenue Service can reconstruct your tax return based on your cost of living. The Internal Revenue Service agents are experts in reconstruction of tax returns.
As a general rule taxpayers spend with their rent or mortgage approximately 30% of their attributable income so it is easy to backup and a total monthly or yearly income.
This is a very simple process and we have internal forms that can help you through this.
IRS knows you have not filed your back tax returns
They just do not have the manpower to get around to your case right. But sooner or later you will get a knock on the door and it’s always at a really bad time in your life.
If you do not file your back tax return IRS can file for you under 6020B of the IRC
Many people are unaware that under 6020 B of the Internal Revenue Code, IRS can prepare your back tax returns. It is not in your best interest for this to happen.
IRS will give you no deductions, no expenses only figure out raw income with the standard deduction, you will pay the highest amount allowed by law. If IRS’ has already done this to you understand that you can file for audit reconsideration. Whatever you do, do not be bullied by the Internal Revenue Service be assertive and aggressive in fighting back.
The Process of Settlements with the IRS
In all cases in which monies are owed to the Internal Revenue Service, the IRS will want a current financial statement.
You will have to complete tax form 433-F, 433-A ( IRS financial statements )depending where your case is within the IRS system.
The Internal Revenue Service will then analyze your current financial statement and apply the national standardized expenses along with that and come up with a proposed way of settling your case.
IRS will want all financial statements documented and will want copies of pay stubs, bank statements and all your monthly expenses. Everything needs to be verified by the Internal Revenue Service.
Settlement Forms with the IRS
IRS settlements can be in the form of:
1. Your case being currently not collectible, or economic tax hardship.
2. It could be the IRS will insist on a monthly installment or payment arrangement, or
3. The IRS will let you know that your suitable candidate for an offer in compromise or a tax debt settlement.
Before you attempt to settle your case through on offer in compromise you should use the pre- qualifier tool used by the Internal Revenue Service.
Do not pay any firm or Internet company to settle your case unless you know you are a qualified candidate to do so.
By calling us today we will give you a free evaluation and let you know whether it’s worth your time and ours to proceed
IRS accepts 38% of all offers and compromised filed.
IRS receives over 58,000 offers each and every year.
Settle with the IRS through the offer in compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS consider your unique set of facts and circumstances. IRS will be looking at your :
1. Ability to pay;
2. Income;
3. Expenses; and
4. Asset equity.
Remember not everyone situation is the same different facts and circumstances such as health or medical conditions can alter the systems and settlement strategies.
The IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. Keep in mind the IRS collection statute is 10 years from the date of assessment.
If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
Are you eligible to settle with the IRS
Before IRS can consider your offer, you must be:
- current with all filing and payment requirements.
- you are not eligible if you are in an open bankruptcy proceeding.
Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal. You can find this pre-qualifier tool on our website.
Submit your offer in compromise to settle with the IRS
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF).
Your completed offer package must include:
1. Form 433-A (OIC) (individuals) or
2. 433-B (OIC) (businesses) and all required documentation as specified on the forms;
Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
$150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a payment option to settle with the IRS
Your initial payment will vary based on your offer and the payment option you choose:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
Submit your initial payment with your application.
You should continue to pay the remaining balance in monthly installments while the IRS considers your offer.
If accepted, continue to pay monthly until it is paid in full.
Low Income Certification guidelines
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the process of IRS settlements
While your offer is being evaluated:
1. Your non-refundable payments and fees will be applied to the tax liability.
2. A Notice of Federal Tax Lien may be filed;
3. Other collection activities are suspended;
4. The legal assessment and collection period is extended;
5. Make all required payments associated with your offer;
6. You are not required to make payments on an existing installment agreement; and
7. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today and receive a no-cost evaluation and find out the process of filing your back tax returns and settling with the Internal Revenue Service.
We are a Florida tax firm specializing in all IRS, federal and state tax matters.
There are many excellent tax firms in the state of Florida so do your due diligence carefully.
Filing Back Tax Returns and Settling with the IRS – Miami, Ft.Lauderdale, Tampa, Jacksonville – All Florida
by Fresh Start Tax | Oct 29, 2013 | Tax Help
IRS Levy on Checking, Saving Account – How to get Levy Release, Former IRS Get Immediate Releases, Free Consult
The Internal Revenue Service issues close to 2.8 million IRS levies on checking accounts, savings accounts and on wages of taxpayers.
If you did not respond to the IRS final notice the Internal Revenue Service is obligated to send you a nasty gram by seizing or garnishing your checking, savings or your payroll check.
The process of getting your levy release is very simple.
The Internal Revenue Service does not want to levy your paycheck, your checking account, or your savings account. They are simply complying with their internal revenue manual in following up on their last notice which indicated that they would send enforcement action your way if you did not comply with the notice or letter.
The IRS levy is the common enforcement tool and it works.
So get started getting you money back
Simply call the telephone number on your letter and be prepared to give IRS a current financial statement.
That will be in form 433-F. You can find on our website.
Be prepared to send IRS all the documentation to support the financial statement including banks statements, copies of pay stubs and copies of all expenses.
The Internal Revenue Service will interpret your expenses against the national standard expenses and come up with one of three methods to go ahead and release your levy.
IRS will either place you into an economic tax hardship called currently uncollectible, enter you into a monthly or installment plan, or let you know you’re a suitable candidate for an offer in compromise.
Call us today for free initial consultation and learn more and get fast and affordable tax relief on IRS levies on checking, savings and wage garnishment
What is a IRS Levy
A levy is a legal seizure of your property to satisfy a tax debt.
Levies are different from liens.
A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.
IRS can seize and sell property that you hold such as your car, boat, or house, or
they could 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.
IRS levies only after these three requirements are met:
1. 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.
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.
Please note: if we levy your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.
A levy release
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.
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.
You must file your request within 30 days of the date on your notice.
Some of the issues you may discuss include:
1. You paid all you owed before we sent the levy notice,
2. We assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
3.IRS made a procedural error in an assessment,
4. The time to collect the tax (called the statute of limitations) expired before we sent the levy notice,
5. You did not have an opportunity to dispute the assessed liability,
6. You wish to discuss the collection options, or
7. You wish to make a spousal defense.
Levy – Checking, Saving Account – How to get IRS Levy Release – Miami, Ft.Lauderdale, Tampa Jacksonville – Florida
by Fresh Start Tax | Oct 29, 2013 | Tax Help
How far back can the IRS go to audit my return?
Answer – Generally, the IRS can include returns filed within the last three years in an audit.
However, 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 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 Mail Correspondence Audits
The Internal Revenue Service (IRS) estimates that $235 billion of the $450 billion in taxes that should have been reported and paid on time but were not is caused by individuals under reporting their income tax liabilities.
An audit is one of the primary enforcement tools the IRS uses to address the noncompliance that contributes to the Tax Gap, and the cornerstone of the IRS audit efforts is the correspondence audit program.
In Fiscal Years 2008 through 2012, IRS statistics show it conducted almost 5.7 million correspondence audits and recommended approximately $40.4 billion in additional taxes.
In Fiscal Years 2008 through 2012, IRS statistics show that it conducted almost 5.7 million correspondence audits and, in the process, recommended approximately $40.4 billion in additional taxes.
Have questions about IRS tax audits, call Fresh Start Tax LLC the specialty firm.
Audited by the IRS – How far Back can they Go – Former IRS agent
by Fresh Start Tax | Oct 24, 2013 | Tax Help
For those of you planning to travel within the next year you better keep your eye on a bill that has passed the Senate and it could spell problems for taxpayers who owe over $50,000 to the Internal Revenue Service.
Now is the time to take action to resolve your Federal Tax Debt.
If this bill is passed as approved by the Senate and you owe over $50,000 including penalties and interest the State Dept. will not permit your travel unless your case with the IRS is in Offer in Compromise status, installment agreement status or you have a pending CDP.
You have a 38% the IRS will settle your case.
If you need to settle call us today and speak to former IRS agents who can settle your case if you qualify.
The proposed bill by Senator Boxer
A law buried in a proposed bill could prevent U.S. travelers who owe taxes from leaving the country.
According to a report that appeared in Forbes this past spring, Bill 1813 contains language that would allow the government to take passports away from travelers in debt to the Internal Revenue Service (IRS).
The bill is currently pending in the House of Representatives. This is no laughing matter to travelers. If you are out of the country at the time of passage the State Dept, will allow you to come back in the US.
In March, the Senate passed Bill 1813, which was introduced by Senator Barbara Boxer. The bill is more than 1,000 pages long and mainly addresses the allocation of federal funds for transportation purposes.
But planted in the bill is an amendment that would permit the State Department to take away a person’s passport if he or she owes significant back taxes to the IRS.
Here’s what it says in section 7345 of the proposed legislation:
“If … any individual has a seriously delinquent tax debt in an amount in excess of $50,000, the Secretary shall transmit such certification to the Secretary of State for action with respect to denial, revocation, or limitation of a passport.”
According to the bill, your passport won’t be revoked if you pay your debt “in a timely manner” or if you need a passport for “emergency circumstances or for humanitarian reasons.” Note that the passport revocation only applies to instances of “seriously delinquent” debt of more than $50,000.
This isn’t limited to criminal tax cases or situations where the government fears someone is fleeing a tax debt.
1813 still needs to be passed by the House and then signed by the President before it becomes law. In the meantime, it’s something travelers might want to keep an eye on.
If you wait till last minute to negotiate your case this is given be problematic. Keep in mind everybody owing over $50,000 will be trying to do the same thing and IRS simply does not have the personnel to handle this new legislation.
The point, take your of your IRS debt now.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors with over 206 years of professional tax experience.
Contact us today for immediate consultation to immediately and permanently take care of your tax debt if you owe the IRS.
Passports – Owe the IRS over $50,000 – You may NOT Travel – Tax Problems
by Fresh Start Tax | Oct 23, 2013 | Tax Help
2014 Tax Season to Start Later Following Government Closure
The Internal Revenue Service announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure.
The IRS is exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December, Acting IRS Commissioner Danny Werfel said. The original start date of the 2014 filing season was Jan. 21, and with a one- to two-week delay, the IRS would start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.
The government closure came during the peak period for preparing IRS systems for the 2014 filing season.
Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns. Updating these core systems is a complex, year-round process with the majority of the work beginning in the fall of each year.
About 90 percent of IRS operations were closed during the shutdown, with some major work streams closed entirely during this period, putting the IRS nearly three weeks behind its tight timetable for being ready to start the 2014 filing season. There are additional training, programming and testing demands on IRS systems this year in order to provide additional refund fraud and identity theft detection and prevention.
“Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right,” Werfel said. “The adjustment to the start of the filing season provides us the necessary time to program, test and validate our systems so that we can provide a smooth filing and refund process for the nation’s taxpayers.
We want the public and tax professionals to know about the delay well in advance so they can prepare for a later start of the filing season.”
The IRS will not process paper tax returns before the start date, which will be announced in December. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit. The April 15 tax deadline is set by statute and will remain in place.
However, the IRS reminds taxpayers that anyone can request an automatic six-month extension to file their tax return. The request is easily done with Form 4868, which can be filed electronically or on paper.
IRS processes, applications and databases must be updated annually to reflect tax law updates, business process changes, and programming updates in time for the start of the filing season.
The IRS continues resuming and assessing operations following the 16-day closure. The IRS is seeing heavy demand on its toll-free telephone lines, walk-in sites and other services from taxpayers and tax practitioners.
During the closure, the IRS received 400,000 pieces of correspondence, on top of the 1 million items already being processed before the shutdown.
The IRS encourages taxpayers to wait to call or visit if their issue is not urgent, and to continue to use automated applications on IRS.gov whenever possible.
“In the days ahead, we will continue assessing the impact of the shutdown on IRS operations, and we will do everything we can to work through the backlog and pent-up demand,” Werfel said. “We greatly appreciate the patience of taxpayers and the tax professional community during this period.”
