by Fresh Start Tax | Sep 9, 2013 | Tax Help
As a service of Fresh Start Tax we answer questions for our clients regarding the most often asked questions.
Please find below the question-and-answer for the age limits on claiming a child as a dependent.
We can also help audit proof your return by allowing former IRS agents and managers to prepare and file your tax return.
Dependents & Exemptions
Question:
Is there an age limit on claiming my child as a dependent?
Answer:
To be claimed as your dependent, your child must meet the qualifying child test or the qualifying relative test.
While the child’s age is a factor in the qualifying child test, it is not in the qualifying relative test. An individual meeting the qualifying relative test may be of any age.
As long as all of the following tests are met, you may claim a dependency exemption for your child:
- Qualifying child or qualifying relative test,
- Citizen or resident test, and
Age Limits on Claiming a Child as a Dependent
by Fresh Start Tax | Sep 4, 2013 | Tax Help
If you are a nonresident alien and looking for IRS tax representation or IRS tax help contact us today and speak directly to a tax attorney or certified public accountant or former IRS agent or manager.
We are experts for IRS Nonresident Tax Help and Representation.
We have over 300 years of professional tax experience and are experts and IRS nonresident alien help.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
Who is a Nonresident Alien
An alien is any individual who is not a U.S. citizen or U.S. national. A nonresident alien is an alien who has not passed the green card test or the substantial presence test.
Who Must File with the IRS?
If you are any of the following, you must file a return:
1. A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year. You must file even if:
2. Your income did not come from a trade or business conducted in the United States,
3. You have no income from U.S. sources, or
4. Your income is exempt from income tax.
However, if your only U.S. source income is wages in an amount less than the personal exemption amount (see Publication 501), you are not required to file.
A nonresident alien individual not engaged in a trade or business in the United States with U.S. income on which the tax liability was not satisfied by the withholding of tax at the source.
A representative or agent responsible for filing the return of an individual described in (1) or (2),
A fiduciary for a nonresident alien estate or trust, or
A resident or domestic fiduciary, or other person, charged with the care of the person or property of a nonresident individual may be required to file an income tax return for that individual and pay the tax (Refer to Treas. Reg. 1.6012-3(b)).
Please NOTE:
If you were a nonresident alien student, teacher, or trainee who was temporarily present in the United States on an “F,””J,””M,” or “Q” visa, you are considered engaged in a trade or business in the United States.
You must file Form 1040NR (or Form 1040NR-EZ) only if you have income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Refer to Foreign Students and Scholars for more information.
Claiming a Refund or Benefit
You must also file an income tax return if you want to:
1. Claim a refund of over withheld or overpaid tax, or
2. Claim the benefit of any deductions or credits. For example, if you have no U.S. business activities but have income from real property that you choose to treat as effectively connected income, you must timely file a true and accurate return to take any allowable deductions against that income.
Which Income to Report if you are a Nonresident Alien
A nonresident alien’s income that is subject to U.S. income tax must generally be divided into two categories:
Income that is Effectively Connected with a trade or business in the United States
U.S. source income that is Fixed, Determinable, Annual, or Periodical (FDAP)
Effectively Connected Income, after allowable deductions, is taxed at graduated rates. These are the same rates that apply to U.S. citizens and residents. FDAP income generally consists of passive investment income; however, in theory, it could consist of almost any sort of income. FDAP income is taxed at a flat 30 percent (or lower treaty rate) and no deductions are allowed against such income.
Effectively Connected Income should be reported on page one of Form 1040NR. FDAP income should be reported on page four of Form 1040NR.
Which Form to File
Nonresident aliens who are required to file an income tax return must use:
- Form 1040NR-EZ (PDF) if qualified. Refer to the Instructions for Form 1040NR-EZ to determine if you qualify.
When and Where To File
If you are an employee or self-employed person and you receive wages or non-employee compensation subject to U.S. income tax withholding, or you have an office or place of business in the United States, you must generally file by the 15th day of the 4th month after your tax year ends.
For a person filing using a calendar year this is generally April 15.
If you are not an employee or self-employed person who receives wages or non-employee compensation subject to U.S. income tax withholding, or if you do not have an office or place of business in the United States, you must file by the 15th day of the 6th month after your tax year ends. For a person filing using a calendar year this is generally June 15.
File Form 1040NR-EZ and Form 1040NR at the address shown in the instructions for Form 1040NR-EZ and 1040NR.
Extension of time to file with the IRS
If you cannot file your return by the due date, you should file Form 4868 (PDF) to request an automatic extension of time to file.
You must file Form 4868 by the regular due date of the return.
You Could Lose Your Deductions and Credits
To get the benefit of any allowable deductions or credits, you must timely file a true and accurate income tax return. For this purpose, a return is timely if it is filed within 16 months of the due date just discussed.
The Internal Revenue Service has the right to deny deductions and credits on tax returns filed more than 16 months after the due dates of the returns. Refer to When To File in Chapter 7 of Publication 519, U.S. Tax Guide for Aliens (PDF) for additional details.
Departing Alien – Sailing Permits
Before leaving the United States, all aliens (with certain exceptions) must obtain a certificate of compliance.
This document, also popularly known as the sailing permit or departure permit, must be secured from the IRS before leaving the U.S. You will receive a sailing or departure permit after filing a Form 1040-C (PDF) or Form 2063 (PDF).
Even if you have left the United States and filed a Form 1040-C, U.S. Departing Alien Income Tax Return (PDF), on departure, you still must file an annual U.S. income tax return.
If you are married and both you and your spouse are required to file, you must each file a separate return, unless one of the spouses is a U.S. citizen or a resident alien, in which case the departing alien could file a joint return with his or her spouse (Refer to Nonresident Spouse Treated as a Resident).
IRS Nonresident Alien – Tax Representation – Attorneys, CPA’s
by Fresh Start Tax | Sep 4, 2013 | Tax Help
Hire true IRS Tax Help Relief Lawyers
We are a local South Florida Tax Firm that specializes in permanent IRS Tax Relief.
Beware:
If you are surfing the Internet to try and find IRS tax relief lawyers you need to dig deep because the Internet is full of splash pages claiming IRS tax relief lawyers. Many of these so-called firms are located right here in South Florida.
Most of these companies flat out lie about who they are and who works for them.
95% of all the sites on the Internet are actually lead generation sites which means a company is trying to sell your information to a third party.
These companies put up splash pages on the Internet if you look closer at the site there was almost no information that tells you who they are the professionals at work for their firms.
You may be surprised to find out your information is worth $50-$60 to some third party who was willing to buy your tax information to close a deal all because you need IRS tax relief.
Many of these firms claim they have lawyers,attorneys on staff but a closer look on their Internet page says very little about their tax professionals.
I would caution anybody looking for true IRS tax relief lawyers to make sure they look closely at the company they are calling.
A tax firm will generally have tax attorneys, tax lawyers, CPAs or former IRS agents who proudly have their bios on-site see you can check out their actual credentials.
You will find that fresh start tax is comprised of tax attorneys, tax lawyers, certified public accountants, and former IRS agents and managers and have over 60 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service. We can handle any IRS situation you have from a simple tax notice to and including tax court.
We are a local South Florida full-service tax firm in all our work is handled in-house.
You can contact us today for a free initial tax consultation and let us be your best defense for the Internal Revenue Service.
We can file any back and all tax returns release any bank or wage levies, handle any tax audit and settle any tax situation.
When you call our office you will speak to a season tax professional that can offer you a no cost consultation and let you know how you can resolve your case with the federal or state government.
Areas of Professional Tax Practice:
Same Day IRS Tax Representation
Offers in Compromise or IRS Tax Debt Settlements
Immediate Release of IRS Bank Levies or IRS Wage Garnishments
Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
IRS Tax Audits
IRS Hardships Cases or Unable to Pay
Payment Plans, Installment Agreements, Structured agreements
Abatement of Penalties and Interest
State Sales Tax Cases
Payroll / Trust Fund Penalty Cases / 6672
Filing Late, Back, Unfiled Tax Returns
Tax Return Reconstruction if Tax Records are lost or destroyed
IRS Tax Relief Help
Our Company Resume: ( Since 1982 )
Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
We taught Tax Law in the IRS Regional Training Center
Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
Highest Rating by the Better Business Bureau “A”
Fast, affordable, and economical
Licensed and certified to practice in all 50 States
Nationally Recognized Veteran /Published Former IRS Agent
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IRS Tax Relief Lawyers South Florida
IRS Tax Help Relief Lawyers, Former Agents – Pompano, Boca, Deerfield, Palm Beaches
by Fresh Start Tax | Sep 4, 2013 | Tax Help
Have you received a IRS Notice of Intent to Levy?
If you have received a notice of intent to levy from the Internal Revenue Service you can stop them by simply calling the Internal Revenue Service today and letting them know how you want to dispose of your IRS tax bill.
Before doing so you must have an exit strategy and a plan of action.
You need to be prepared to give them the information they are looking for but by calling our office we can immediately stop the IRS right now.
Being former IRS agents, managers, and tax instructors we know the exact systems, the exact protocol and the exact techniques to go ahead and to get you the time you need to settle your case with the Internal Revenue Service. IRS help is just a phone call away.
Why you have received the Notice of Intent to Levy?
If you have failed to respond to prior IRS notices and bills the IRS systematically sends out a notice of intent to levy. Generally to other bills or notices have been sent to the last known address shown on your last file tax return.
If you do not respond to that intent to levy, the IRS will send out either a IRS bank levy or an IRS wage garnishment. That information is stored on the IRS Cade 2 computer system.
It is critical you contact IRS and prepared to give them a current financial statement so they can dispose of your case off the IRS enforcement computer.IRS will want a current financial statement on form 433-F.
Be careful not to ignore an IRS notice of intent to levy because IRS means business and they will follow up with quick and decisive seizure action.
What is a Levy and other information.
A IRS levy is a legal seizure of your property to satisfy a tax debt.
IRS Levies are different from IRS liens.
A lien is a claim used as security for the tax debt, while a IRS tax levy actually takes the property to satisfy the tax debt.It is in effect a seizure of assets.
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.
For instance,
The IRS has the right to 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).
Before the IRS can Levy
IRS usually levy only after these three requirements are met:
1. They assessed the tax and sent you a Notice and Demand for Payment;
2. You neglected or refused to pay the tax; and (if the IRS called you and you said you could not pay the tax, the IRS has the right to levy )
3. They 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.
The 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.
If you are going through a current economic hardship we can usually get IRS tax levies released within a week.
The definition of an economic hardship is that your current expenses exceed your current income and that is all based on the national expense standards. You can call us today for more detail on these formulas.
Keep in mind 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.
Note to 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. 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.
If you do not get the IRS agent to cooperate you can:
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. The IRS assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
3. The 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.
It is important to note the Internal Revenue Service will want any unfiled tax returns filed. IRS generally will not close your case off the enforcement computer unless you are current and up-to-date with all income and business tax return filings.
We can prepare all back tax returns, stop the IRS levy and settle your case all at the same time.
Remember, respond to all IRS notices on a timely basis.
IRS – Notice of Intent to Levy – IRS Help – Miami, Ft.Lauderdale, Boca, Palm Beaches – South Florida
by Fresh Start Tax | Aug 29, 2013 | Tax Help
How to Resolve IRS Tax Debt
If you have received an IRS tax bill or notice on your back taxes contact us today to find out how to take care of this matter as soon as possible for affordable pricing.
We have worked thousands of cases in resolving IRS tax notices and bills.
We are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS agents and managers with over 60 years of direct work experience with the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
We are A+ rated by the better business bureau and been in private practice since 1982.
As a former IRS agent I will explain to you how to resolve your IRS tax debt.
How to resolve than IRS bill or notice on back taxes.
The Key – Find out how IRS closes there cases.
There is a very specific process on how to resolve your IRS bill or notice on your back tax. There is a very specific protocol that IRS uses on every single case and that is the IRS requires a current and verifiable financial statement which is IRS form 433F.
IRS uses that financial statement to make a closing determination on how will proceed with your case. That financial statement will determine your fate. Internal Revenue Service has to be able to determine the collectibility on back tax debt.
The main key ingredient to this is to know that the IRS will use the last six months as their financial determination focus to make that decision.
You can find that form on our website.
The 433-F, the IRS financial statement
The 433-F can be sent to the Internal Revenue Service at the ACS unit or you can simply call the one 800 number on your last IRS bill or notice and speak to the IRS ACS agent directly.
The IRS agent on the phone will require you to fax the 433-F along with all the documentation to confirm the accuracy and correctness of the tax return.
Beside turning in the IRS financial statement you will be required to turn in your last 3 to 6 months bank statements along with your pay stubs and verify all monthly expenses.
Once the IRS has the 433-F and their hand the IRS will make a determination on how they will close the case off the enforcement computer.
If you do not resolve this matter while your case is in billing or notice status the Internal Revenue Service will issue an IRS bank levy or an IRS wage garnishment levy and will follow up with the filing of the federal tax lien.
It is critical that you contact the Internal Revenue Service while your case is in billing or notice status. If you failed to do that the case will work its way down to a local office and a revenue officer will be knocking on your door.
All IRS collection notices are systemically handled by the IRS computer and not a human hand touches them.
All notices of banks garnishments and wage garnishments are sent out in the thousands each and every day. That is why it is critical to call the IRS so they can input a systemic freeze on your case.
IRS will use your several tax last tax returns as Levy source information to issue a bank or wage garnishment levy to collect on your back tax debt.
As a general rule there are three closing methods to get IRS off your back.
After IRS reviews the financial statement they will make one of three determinations.
1. The IRS will either determine that you are at the current time non-collectible and place you into an economic tax hardship,
2. they can determine that you are a monthly installment payment candidate or
3. the IRS could recommend that you file an IRS tax debt settlement called an offer in compromise.
It also should be known that you must have all tax returns filed and brought up to date along with your current withholding for the year.
IRS will conduct a full compliance check to make sure that all tax returns have been filed and you are currently up to date with this year’s withholding.
The National Standards Test
IRS will use the national and local standards test to determine that you are living within the IRS framework and budgetary standards for hardships and payment agreements.
It is critically important that you understand the national and regional standards test before negotiating any IRS tax bill or notice because that is the sole key in resolving your IRS case on your back taxes.
Free Consultations
If you would like a free consultation contact us today and we can tell you how easy it is to resolve your situation with the Internal Revenue Service.
You can also fill out a form 433-F and fax it to us and we will go over all the tax options you have and show you how to resolve this.
This is a much easier process than you think. You need to speak to experienced former IRS agents who know the process, the format, and the protocols to deal with the situation.
We have over 60 years of direct working knowledge and experience with the IRS we can make this process seamless for you.
You will never have to speak to the Internal Revenue Service.
How to Resolve a IRS Bill Notice on Back Taxes, Former Agent can make this an easy process
by Fresh Start Tax | Aug 28, 2013 | Tax Help
Tax Negotiation Experts
There are many companies on the Internet today who claim to be tax negotiation experts.
Check those professional credentials, there expereince and there rating out carefully.
Fresh Start Tax LLC is a local South Florida tax firm that is comprised of tax attorneys, tax lawyers, certified public accountants, former IRS agents managers and tax instructors.
We also have a State of Florida, Department of Revenue negotiator on staff for Sales and Use Tax Cases.
We have over 300 years of federal and state tax experience and over 76 years of directly working for the Internal Revenue Service and the State of Florida.
We have worked in the local South Florida local , district, and regional tax offices of the Internal Revenue Service.
When working for the IRS and State we were tax negotiators so we know the strategies and settlement formulas for tax negotiations including all tax protocols.
Also on staff is a former IRS appeals federal mediator/ negotiator for the Internal Revenue Service.
We literally have worked thousands of cases and are experts tax negotiations in the field.
We have been in private practice in South Florida since 1982 in are A+ rated by the Better Business Bureau.
You can contact us today for a free initial tax consultation on any IRS problem or situation.
We are true experienced professional tax negotiation experts.
Two programs that allow taxpayers and the IRS to reach agreement
The Internal Revenue Service has two permanent programs that allow taxpayers and the IRS to reach agreement on tax disputes more quickly.
FTM is generally available for all non-docketed cases and collection source work over which SB/SE has jurisdiction, including offer in compromise (OIC), trust fund
recovery penalty (TFRP) and collection due process (CDP) cases.
FTM is generally not available for issues for which resolution will depend on an assessment of the hazards of litigation and which require the FTM Appeals Official to use delegated settlement authority.
Fast Track Mediation program.
This program gives small businesses, self-employed taxpayers and the IRS the opportunity to mediate disputes through an IRS appeals officer, who acts as a neutral party. In this program, most tax disputes are resolved within 40 days compared to several months though the regular appeal process.
Since June 2002, more than 200 cases have been mediated – with 100 percent resolution in more than half of those cases.
Makes permanent the Fast Track Settlement program. The program enables the IRS to resolve tax disputes with large and mid-size businesses at an earlier stage – often within a much shorter time than through the normal audit and appeal processes.
The Fast Track Settlement pilot program became available for large and mid-size businesses on November 14, 2001, with the goal of reaching settlement with taxpayers within 120 days. By May 31, 2003, IRS and 104 large and mid-size business taxpayers had successfully settled through the pilot program, in an average time of 69 days, just over half of the expected time.
Creates the pilot Fast Track Mediation program for Tax Exempt Bonds. This will allow the IRS and issuers of tax exempt bonds to expedite the resolution of cases more quickly than through the standard appeals process.
Call us today for a free initial tax consultation or come by and visit us face-to-face. We are fast, friendly and affordable. We are your local tax negotiation experts located right here in your community.
Tax Negotiation Experts – Tax Attorneys, Former IRS Agents Miami, Ft.Lauderdale, Boca, Palm Beaches
