by Fresh Start Tax | Apr 22, 2013 | Tax Help
IRS Penalty Experts – How To Abate The Frivolous Income Tax Return Penalties 1-866-700-1040
We are experts in IRS penalty removal and abatement’s.
With over 60 years of working directly for the Internal Revenue Service we know all the procedures, all the reasonable causes, and all the manual criteria to abate or remove IRS penalties.
Our website has an exhaustive list of the reasonable causes that exist for abating IRS penalties and interest.
Contact us today if you have any questions.
Below you will find how to will abate the frivolous income tax return penalties.
How To Abate The Frivolous Income Tax Return Penalties
Are you one of those taxpayers who thought that you did not have to file tax returns or pay income taxes, and you submitted a “frivolous tax return” or submitted “frivolous arguments” to the IRS?
The IRS used to classify these individuals as “tax protesters.”
If you are one of these type of individuals, the IRS by now would have assessed you a $5,000.00 penalty under section 6702 of the Internal Revenue Code for each of your submissions.
You may have accumulated multiple penalty assessments totaling $5,000.00 or more.
There is relief for you, if you are willing to become compliant by filing correct income tax returns and pay the correct tax, interest and penalties attributable to those tax returns; the IRS will abate all of those “frivolous $5,000.00 penalties” down to $500.00.
Thus, if the IRS assessed $50,000.00 of the “frivolous penalties,” the IRS will reduce all of those penalties to $500.00.
If you wish to have these penalties abated down to $500.00, you will need to submit Form 14402 and meet all of the requirements of Revenue Procedure 2012-43.
This is a great opportunity for you to get your life in order and not be hounded by the IRS to pay those penalties.
We will assist you in submitting the Form 14402 to the IRS and make sure that you have met all of the requirements to get the penalties reduced to $500.00.
We will also correctly prepare your tax returns so that you become compliant with the IRS.
If you have any questions regarding Internal Revenue Service penalties or interest contact us today for a free initial tax consultation.
We will advise you if you have a reasonable cause to go ahead and remove or abate IRS penalties and interest.
When calling us you will speak directly to a true tax professional. You will speak to a euro tax attorney, certified public accountants or former IRS agent and manager.
IRS Penalty Experts – How To Abate The Frivolous Income Tax Return Penalties
by Fresh Start Tax | Apr 22, 2013 | Tax Help
IRS Tax Levy – You have rights – Get your Tax Levy Removed,Released 1-866-700-1040
If you have experienced the wrath of the Internal Revenue Service and received a bank levy or a wage levy contact us today.
You have rights that can possibly get your IRS levy removed that few taxpayers are aware.
The collection appeals process (CAP) and the collection due process (CDP) are two avenues taxpayers have the fight back if they know their rights
Being former IRS agents and managers we are experts in getting the IRS tax Levy release removed. Contact us today and speak directly to a tax professional to resolve your IRS issue and settle your case.
The IRS has an administrative appeals process that works with taxpayers to try to settle tax disputes in an effort to avoid formal court hearings.
The Role of IRS Appeals
The role of Appeals is to make an independent review of a tax dispute and to consider the positions taken by both the taxpayer and the Service.
The Appeals unit strives to resolve tax disputes in a fair way and remain impartial to both parties.
The IRS will send you a report and/or letter that will explain the proposed adjustments or proposed or taken collection action. The letter also tells you of your right to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference.
In addition to examination adjustments, many other things can be appealed such as penalties, interest, trust fund recovery penalties, offers in compromise, liens, and levies.
If you request an Appeals conference, be prepared with records and documentation to support your position.
Appeals conferences are informal meetings.
You may represent yourself or have an attorney, accountant, or an individual enrolled to practice before the IRS, represent you. If you do not reach agreement with the Appeals or Settlement Officer, or you do not wish to appeal within the IRS, you may appeal certain actions through the courts.
Appeal – Collection Due Process procedures are available to you if you’ve received any one of the following notices:
1. Notice of Federal Tax Lien- keep in mind this procedure is only available after the federal tax lien has been filed.
2. Notice of Intent to Levy – This procedure is available after you receive your IRS final notice.
You have 30 days to request a hearing to preserve your right to go to Court.
Complete Form 12153, Request for a Collection Due Process or Equivalent Hearing
It is important you identify all your reasons for your disagreements.
The Process and where to send:
a. The completed Form 12153 should be sent to the same address that is shown on your Lien or Levy Notice.
b. If your request is not received within 30 days, you are still entitled to an Appeals hearing.
However, if you still disagree with the Appeals determination you cannot go to Court.
Collection Appeals Process
If you choose to go through the Collection Appeals Program (CAP) process then you cannot go to Tax Court on the Appeals’ decision.
You may go through the CAP process if you’ve received any one of the following notices:
a. Notice of Federal Tax Lien
b. Notice of Levy
c. Notice of Seizure
d. Denial or Termination of Installment Agreement
CAP Procedures
If your only collection contact has been a notice or telephone call:
a. Call the IRS telephone number shown on your notice,
b. Explain why you disagree and that you want to appeal the decision,
c. Be prepared to offer a solution,
d. Before you can start the appeals process with the Office of Appeals you will need to first discuss your case with a Collections manager.
Call us today and find out more about your appeal rights for the IRS tax Levy.
You have rights and you should fight back. If you need an immediate release of your tax levy contact us today.
If you have already been in contact with Revenue Officer:
a. Call the Revenue Office you’ve been dealing with and explain why you disagree and that you want to appeal the decision,
b. Be prepared to offer a solution,
c. Before you can start the appeals process with the Office of Appeals you will need to discuss your case with a Collections manager,
d. Complete Form 9423, Collection Appeals Request,
e. You have 2 days from your conference with the Collections manager to submit Form 9423 to the Revenue Officer.
Do not stop fighting back when it comes to the IRS.
IRS Tax Levy – You have Rights – Get your Tax Levy Removed, Released
by Fresh Start Tax | Apr 22, 2013 | Tax Help
IRS Late Filing Penalties – Abatement’s and Removals 1-866-700-1040
Late Filing and Late Payment Penalties
April 15 is the annual deadline for most people to file their federal income tax return and pay any taxes they owe.
By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline.
Points about penalties for filing or paying late.
1. A failure-to-file penalty may apply if you did not file by the tax filing deadline. A failure-to-pay penalty may apply if you did not pay all of the taxes you owe by the tax filing deadline.
2. The failure-to-file penalty is generally more than the failure-to-pay penalty. You should file your tax return on time each year, even if you’re not able to pay all the taxes you owe by the due date.
You can reduce additional interest and penalties by paying as much as you can with your tax return. You should explore other payment options such as getting a loan or making an installment agreement to make payments. The IRS will work with you.
3. The penalty for filing late is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late.
That penalty starts accruing the day after the tax filing due date and will not exceed 25 percent of your unpaid taxes.
4. If you do not pay your taxes by the tax deadline, you normally will face a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes.
That penalty applies for each month or part of a month after the due date and starts accruing the day after the tax-filing due date.
5. If you timely requested an extension of time to file your individual income tax return and paid at least 90 percent of the taxes you owe with your request, you may not face a failure-to-pay penalty.
However, you must pay any remaining balance by the extended due date.
6. If both the 5 percent failure-to-file penalty and the ½ percent failure-to-pay penalties apply in any month, the maximum penalty that you’ll pay for both is 5 percent.
7. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
8. You will not have to pay a late-filing or late-payment penalty if you can show reasonable cause for not filing or paying on time.
Note: The IRS recently announced special penalty relief to many taxpayers who requested an extension of time to file their 2012 federal income tax returns and some victims of the recent severe storms in parts of the South and Midwest.
For details about these relief provisions, see IRS news releases IR-2013-31 and IR-2013-42.
The IRS has also provided individual tax filing and payment extensions to those affected by the Boston explosions tragedy. See IR-2013-43 for more information.
Abatement’s of penalties and interest
If the IRS is assessing you penalties and interest and you believe you have reasonable cause, contact us today and speak to a former IRS agent or manager who knows all the procedures regarding abatement’s of penalties and interest.
by Fresh Start Tax | Apr 19, 2013 | Tax Help
How to File All Back Tax Returns & Settle with the IRS 1-866-700-1040
If you need to file all your back tax returns and settle with the Internal Revenue Service it is always best to do this all at one time.
As a former IRS agent in teaching instructor taxpayers have many fears when filing multiple back tax returns. This process is much more simple than taxpayers actually think. It is in the client’s or the taxpayer’s best interest to file all back tax returns no matter how much they all at the same time and settle their tax debt.
As a result they will save much more money and get this matter resolved in a quicker way so they can restore their life back to normal.
Filing Back Tax Returns with the IRS
If you need to file back tax returns with the Internal Revenue Service it is best to start by requesting from Internal Revenue Service and income transcript to get all the income information that IRS has signed your Social Security number.
That will include all the W-2s, 1099s, and other income source information that IRS has received from third parties and information that has read and reported on your individual tax return.
If you have unfiled tax returns, Fresh Start Tax, LLC uses the following process to get you current with the IRS as well as immediate and permanent tax relief if you need it:
1. We verbally review a year by year history of your income and expenses.
2. We review any records you may have.
3. We pull all IRS information that they have received from 3rd party sources that have been placed on the IRS computer system over the past 7 years.
4. If you have lost your records, we have easy and simple forms that can help reconstruct your tax return.
5.We can prepare through years of experience, a “reconstructed” tax return that the IRS will accept and process.
6. We review all returns for accuracy with the client and send them to the IRS.
If you owe, we work out a settlement agreement with the IRS to permanently close your tax case.
If you have lost your records
If you have lost your records we can reconstruct your tax returns for you. Being former IRS agents and managers we have reconstructed hundreds and hundreds of back tax returns.
The process to prepare back tax returns is the process called income tax reconstruction. In income tax reconstruction is prepared when people are usually self-employed and have no bank statements, records or receipts to prepare a tax return.
As a general rule a tax return can be reconstructed by finding out what the average income and expenses are for a taxpayer for a given month and multiply those by 12.
As a general rule finding out what your rent or mortgage is a good indicator and a starting point to come up with the basis of income for a total year if everything repeat appears normal.
Also be aware IRS can prepare your back tax returns for you
Did you know that if you do not file your back tax returns, the IRS can and will file them for you?
The IRS files thousands of back tax returns each year under the IRC provision of 6020B. As former IRS agents and managers we filed back taxes for taxpayers when we were employed by the IRS.
This process of filing by the IRS is called SRF or Substitute Tax Return and we understand exactly how it works.
The process of SRF works like this:
IRS conducts matching programs each and every year on their CADE 2 system, which matches all W-2’s and 1099’s.
If the computer finds no tax return posted against the W-2’s or 1099’s the IRS will prepare a SRF tax returns.
IRS will not do you a favor filing your SRF return for back taxes.
IRS will only give you the standard deductions, and nothing more. From there the IRS will send out 2-3 notices, which, if you don’t respond, they’ll then send Notices of Federal Tax Levy, both Bank levy’s and Wage garnishment levy’s
They will continue to levy until they get your attention. After that, the IRS will follow that up with a Filing of the Notice of Federal Tax Lien.
Do not be left in the hands of IRS to file your back tax returns.
If the IRS filed your tax returns thru SRF, call us today to immediately correct the situation. If the IRS filed your tax return, we can file correct returns and correct the misstated tax liability.
When the IRS prepares your tax return, the general rule of thumb is that overstatement of tax is least 5 times of the total tax. In some cases, taxpayers never even owed the tax.
IRS has already assessed the tax you can apply for a IRS audit reconsideration.
Fresh Start Tax LLC will ask IRS for a Tax Audit Reconsideration.
We can file correct tax returns to lower and adjust the overstated tax and work out a tax settlement that you can live with.
As former IRS Agents, Managers and Instructors for over 60 years with the Internal Revenue Service at the local, district and regional offices, we are experts at reconstructing tax returns, filing back taxes and tax settlements.
We have prepared thousands of back tax returns since 1982.
Not only will we reconstruct your tax return, but we will also work out a settlement agreement with the Internal Revenue Service if you owe them back taxes.
Lost Tax Records
The Process of Filing Back or Unfiled Tax Returns:
If you have unfiled tax returns, Fresh Start Tax, LLC uses the following process to get you current with the IRS as well as immediate and permanent tax relief if you need it:
1. We verbally review a year by year history of your income and expenses.
2. We review any records you may have.
3. We pull all IRS information that they have received from 3rd party sources that have been placed on the IRS computer system over the past 7 years.
4. If you have lost your records, we have easy and simple forms that can help reconstruct your tax return.
5.We can prepare through years of experience, a “reconstructed” tax return that the IRS will accept and process.
6. We review all returns for accuracy with the client and send them to the IRS.
If you owe, we work out a settlement agreement with the IRS to permanently close your tax case.
How to File All Back Tax Returns & Settle with the IRS – Former IRS Agents/Managers
by Fresh Start Tax | Apr 19, 2013 | Tax Help
Owing Tax to the IRS – Filing and Paying 1-866-700-1040
Here is some information about filing and paying your income tax. These are some of the most frequently asked questions and we have provided answers that should help guide you.
Should you have any questions please feel free to contact us today so we can help you move through this process.
Why Should I File My Tax Return as Soon as Possible?
There are two advantages to filing as soon as possible:
If a taxpayer is due a refund for withholding or estimated taxes paid, it must be claimed within 3 years of the return due date or risk losing the right to it.
The same rule applies to a right to claim a tax credit such as the Earned Income Credit (EIC).
Self-employed persons who do not file a return will not receive credits toward Social Security retirement or disability benefits.
Failure to file results in not reporting any self-employment income to the Social Security Administration.
What If I Owe More Than I Can Pay?
Even if a taxpayer doesn’t have enough money to pay, returns should be filed to avoid further penalties for failure to file. The IRS and Fresh Start Tax LLC will assist in finding a solution to the problem.
The IRS has streamlined its policies to offer alternative account resolutions if a taxpayer cannot pay in full with the return:
Fresh Start Tax LLC will help to set up an installment agreement when the situation warrants.
Installment payments allow taxpayers to pay the tax debt over time.
The IRS will consider whether an offer in compromise is an appropriate solution.
What If I Do not File Voluntarily?
The IRS is taking enforcement steps for those who repeatedly choose not to comply with the law.
IRS employees will prepare returns when taxpayers do not file. The returns prepared by the IRS might not give credit for deductions and exemptions a taxpayer may be entitled to receive. Bills or notices will be sent to those taxpayers for the tax due, plus penalties and interest.
People who repeatedly don’t comply with the law are subject to additional enforcement measures.
How Can I Avoid Owing Money on Next Year’s Return?
Many people don’t file tax returns because they don’t have enough money to pay the tax they owe.
They find out after completing their return that their withholding or Estimated Tax payments do not equal their tax liability.
To help avoid this situation, the IRS can advise taxpayers how to ask an employer to withhold enough tax from their pay.
For any income that is not subject to withholding, the IRS can provide information necessary to make quarterly payments to cover any amount to be owed. To make payments electronically, see Payment Options – Ways To Make a Payment or go to the EFTPS Web site.
Changes in financial circumstances could have an impact on taxes. For example, an increase in income, divorce, economic hardships, or selling an asset, may require adjustments to withholding or estimated payments.
By taking these steps, taxpayers will be better able to meet their tax obligations and avoid tax day surprises.
Will I Go to Jail?
A long-standing practice of the IRS has been not to recommend criminal prosecution of individuals for failure to file tax returns, provided they voluntarily file, or make arrangements to file, before being notified they are under criminal investigation.
The taxpayer must make an honest effort to file a correct return and have income from legal sources. A letter from the IRS concerning taxes is not a notice that a taxpayer is under criminal investigation.
The IRS and Fresh Start Tax LLC helps to get people back into the system as part of its long-term plan to improve voluntary tax compliance. The IRS wants to get people back into the system, not prosecute ordinary people who made a mistake.
However, flagrant cases involving criminal violations of tax laws will continue to be investigated.
If you think you have a flagrant case that may involve criminal violations or criminal tax implications contact us today and you can speak to one of our tax attorneys.
That information will be covered under attorney-client privilege.
Owing Tax to the IRS – Filing Paying & Advice
by Fresh Start Tax | Apr 19, 2013 | Tax Help
File all Back Tax Returns at the Same Time – Former IRS Agents/Managers 1-866-700-1040
Being a former IRS agent of over 10 years and having been an IRS instructor, I am asked this question repeatedly, ” If I have not filed for many back tax years should I file all my returns at one time.”
The answer is a resounding yes!
You will save yourself a lot of time, a lot of money and a lot of aggravation. You will get this monkey off your back quickly and affordable.
IRS knows that you have not filed your back tax returns.
IRS knows that you have not filed your back tax returns.
Why, because their CADE2 computer is completely aware of your filing status or lack of filing status.
The IRS has simply not had the time to run you down.
There are approximately 25,000,000 people that have unfiled tax returns and they are known to IRS as people within the tax gap. At some point in time the IRS will catch up with you, but have been lucky up to this point to escape the grasp of the IRS and that’s simply because of a lack of manpower.
You will find the Internal Revenue Service in the future will be much more aggressive in running people down.
So it is best you find the IRS before they find you.
So you will do yourself a favor by filing all your back tax returns at the same time and settling your case.
The Internal Revenue Service likes to work the cases all at one time and it does not like dragging out your case over a period of time.
It is far better for the client or the taxpayer to file all the tax returns and put in a settlement offer to get this nightmare out of their lives and to completely be restored into financial health and freedom.
There is a lot less fear and worry involved than taxpayers think.
As a general rule IRS will never prosecute taxpayers criminally if they file their tax returns before an IRS contact. Believe it or not IRS is just happy you’re back in the system. I can also tell you that we have never had a client prosecuted when we have filed all back tax returns.
Many taxpayers who do not file back tax returns have little, or few tax records.
Believe it or not that is no problem.
Back Tax Returns Reconstruction, no problem for us or you
We have reconstructed thousands of tax returns in our lifetime and can reconstruct your tax return and little time.
To do this we try to obtain bank statements for each of the years. If bank statements are not available we will pull the income reports from the Internal Revenue Service on all parties that reported your income through various sources directly to the IRS.
The IRS keeps those on their computer systems for seven years and this makes it easy to prepare and file Back Tax Returns.
Another technique is to find out how much it costs you to live for one month and multiply that by 12 to come up with a reconstructed average of what your income was for a given year.
Generally if we know what your rent was for the years in question, the income is easily ascertained.
There are other techniques and sources to use to obtain your income information so do not let that prevent you from filing all your back tax returns.
So lose the fear and worry about filing all your back returns at the same time.
Call us today for a no cost tax consultation and find out how simple this process really is.
We are comprised of tax attorneys, certified public accountants, and former IRS agents and managers. We have over 60 years of direct working in experiencing knowledge at the Internal Revenue Service and over 206 years professional tax experience.
Call us today so we can put your mind at ease work out a tax settlement with the Internal Revenue Service and get your life restored and back in order. The process is so simple.
The IRS Debt Settlement Procedure
Now that you have filed all Back Tax Returns you can apply for a tax settlement called an offer in compromise.
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.
Offers in compromise 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.
On the Fresh Start Tax LLC tax team is former IRS agent that taught the IRS tax debt settlement program. We will review your case for free and let you know whether you are tax settlement candidate.
Do not pay any money to any tax firm for an offer in compromise or tax debt settlement until you know you are qualified candidate.
You can find the pre-qualifier tools for the offer in compromise on our website under IRS Forms on the home page.
File all Back Tax Returns at the Same Time – Former IRS Agents/Managers
