by Fresh Start Tax | Apr 4, 2013 | Tax Help
OWE the IRS – Several Options to choose to Settle Tax Debt 1-866-700-1040
Being a former IRS agent of 10 years there are many misconceptions about owing debt to the Internal Revenue Service. When a taxpayer owes money to the Internal Revenue Service there are three basic ways the IRS deals with the taxpayers or businesses tax debt. There will be a program that is just right for you based on your current financial abilities.
First order of business – IRS will need a current financial statement
Any time you owe the IRS back tax to the IRS, a detailed documented financial statement 433 A,F,OIC are used by the IRS to make a determination as to the closing method of your case.
IRS spends a great deal of time pouring over this financial statement to ensure the accuracy and correctness of the statement.
Anything you put down on the statement must be verified when you over the IRS money. This will include things like your last three to six months bank statements, and copy of your pay stubs and any and proof of all expenses that you have.
With that in hand the Internal Revenue Service will make a determination on how to best settle your case.
It is a general rule there are three typical options used by IRS to settle your current tax debt.
IRS Tax Settlement Agreements can be in different forms:
a. Hardship Settlements.
About one half of all cases in which taxpayers own money wind up in the economic hardship category. These cases usually go into a 3 year suspended status because of an inability to pay.
This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses.
The IRS will use the National Standards Program to assess hardship. Before you get all hyped up about being placed into an economic tax hardship please understand there is a national standard tests that will be used and applied against all monthly income and expenses. You can check our website for the national standardized expenses for your area or region.
b. Payment Agreements or installment agreements.
Cases can be closed with agreed upon monthly installment payments to the IRS. IRS has different type of payment agreements they should check with us about your particular situation so we can ensure that you are getting the very best option available to your current lifestyle.
IRS also offer streamlined agreements and long-term agreements and vary depending on the amount of money owed and of course your financial statement.
c. IRS Offer in Compromise.
There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectibility.
Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability.
A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration / Exceptional Circumstances.
There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC.
To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
The new IRS program on Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA).
For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.
New Program on Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
Offers in Compromise Settle Tax Debt for “pennies on a dollar.”
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.
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.
Pre-qualifier tool to Settle Tax Debt
To check whether to see you qualify for offered compromise or tax debt settlement because of the money you owe IRS simply go to our website and search for the pre-qualifier tool. It will instantly let you know whether you qualify for an IRS tax debt settlement or offer in compromise. Do not waste your money to firms promising or guaranteeing you that they can settle your debt for pennies on the dollar.
Call us today and we can review all your options with you and help you understand the different ways you can settle your tax to your tax debt.
OWE the IRS – Several Options to choose to Settle Tax Debt
by Fresh Start Tax | Apr 3, 2013 | Tax Help, Tax Levy and Wage Garnishments
IRS Levy Notice – Bank & Wage Levy Lifted NOW 1-866-700-1040
If you have received an IRS levy notice contact us today for a no cost tax consultation and find out the different tax options available to you as a result of your IRS levy notice.
We can help and fix the problem permanently and settle your tax case as well.
IRS sends out approximately 4,000,000 notices of Federal Tax Levies every year.
Those levies affect taxpayer bank accounts and taxpayer wages.
Both IRS levies are different.
Bank Account Levy Notice
A levy on a bank account is literally a freeze on your account for the 21 days including the date on your levy. You may use your bank account freely during the 21 days. However on the day that IRS actually sent the levy to the bank, those funds will be frozen. The 21 day period allows a taxpayer to call IRS and get a release of the IRS levy. We can make this happen for you so do not panic.
A Wage Levy Notice
A wage levy is a continuous levy and your wages will not be released until you call the IRS and employer obtains a release of Levy. Therefore the difference between a bank levy and a wage levy is this; where the bank levy acts as a freeze for 21 days and is a one time seizure a wage levy is a continuous garnishment of wages and it will not stop until the IRS sends the release.
What The Notice of Levy is telling you.
What is the IRS Levy Notice telling me?
This notice is telling you that the IRS intend to issue a levy against your bank accounts, wages or other assets because you still have a balance due on one of your tax accounts.
It is also telling you that the IRS will begin searching for other assets on which to issue a levy and that we may also file a Federal Tax Lien, if we have not already done so.
What do I have to do?
Pay the amount due as shown on the notice or call the IRS and explain why the taxes cannot be paid in full.
How much time do I have?
You should contact us or pay your balance due immediately. Enforcement action may be taken to collect that balance due 30 days after the date of this letter.
What happens if I don’t pay?
If you don’t pay or make arrangements to pay, the IRS have several options available that we may use to collect the money.
1. IRS will issue a levy against your state tax refund, wages, other income sources, or bank accounts.
2.IRS will file a Notice of Federal Tax Lien. The lien gives us a legal claim to your property as security or payment for your tax debt.
What if I don’t agree or have already taken corrective action?
If you do not agree with this notice, you have the right to an appeal.the number printed at If you called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.
Call us today and speak directly to tax attorneys, tax lawyers, certified public accountants in former IRS agents. We are A+ rated by the Better Business Bureau that have been practiced since 1982. We offer nationwide tax relief.
IRS Levy Notice – Bank & Wage Levy Lifted NOW – Tax Attorneys, Former IRS Agents
by Fresh Start Tax | Apr 2, 2013 | Tax Help
Choosing a Tax Firm for IRS Levy Help 1-866-700-1040
If you have received an IRS Tax Levy and you are look to choose a tax firm for representation defense here are some key components you should look at before selecting any person or tax firm.
You can avoid many of these problems if you follow this practical common sense advice:
1. Check the Better Business Bureau report on the Company or Tax Firm.
If the company is not “A” plus rated, flee.
Beware, many of these companies change names every couple of years.
2. Find out if there is a professional Tax Attorney or CPA on staff.
In legitimate tax companies, Attorneys and CPA’s usually will not lend their names to scam artists. Beware of companies too that sub their work out to third party firms that are not connected with the company.
3. Check out how long the principles have been practicing tax, tax law or IRS tax representation.
Most solid companies will find their principles have been practicing at least ten years or more.
4. Ask if the company guarantees their work.
If a company is guaranteeing their work, flee again.
No one can guarantee IRS results. If they guarantee your money will be returned if they are not successful, that’s another story.
5. Interview the person that may work your case.
Ask about his or her credentials and IRS work experience.
6. If you cannot walk into the office, Skype the person face to face.
Ask if the person has a video conferencing system. You will get a good feel with a face to face.
7. A lot of Internet companies are lead gen’s. That means they are sales generators for 3 parties who buy there information and many may have bought your name.
8. Ask for typical results based on the same type of case.True tax professionals will generally know what the results should yield. I have reviewed over 15,000 life cases. I generally know how a case will turn out.
At the end of the day it is about work history, credibility, and results.
Choosing a Tax Firm for IRS Levy Help – Be Careful – Former IRS Agents
by Fresh Start Tax | Apr 2, 2013 | Tax Help
IRS Tax Examination & State Tax Audit – Ft. Lauderdale, Miami, Palm Beaches 954-492-0088
We are a local South Florida Tax Firm, since 1982 and A plus rated.
The Internal Revenue Service conducts a tax examination for 1% of all tax returns filed. The more money you make, a greater risk of an IRS tax examination tax audit.
if you make over $1M big ones you have a 12% chance of being audited by the IRS.
Approximately 1.4 million taxpayers get audited by mail correspondence.
If you have been notified by the Internal Revenue Service that your tax return is under examination or the Internal Revenue Service has sent you a correspondence tax audit call us today and we will conduct for no cost a complete review to let you know the strategies that can help you move forward without damage by the Internal Revenue Service.
IRS audits can be conducted not only by mail but often also as office audits.
IRS may choose to send a revenue agent to your home or place in of business conduct a field audit.
Is Tax Representation needed, it all depends
Many taxpayers do not know whether tax representation is needed. There is a simple rule of thumb.
If you feel that there’s nothing wrong with your tax return, by all means represent yourself before the Internal Revenue Service. However if you feel there are skeletons in your closet or you took more aggressive positions on tax matters than you should have, you should seek a tax professional to go ahead and represent you for your IRS tax examination tax audit.
What is an IRS Tax Examination Tax Audit?
An IRS audit is a examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.
Check out IRS Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail, that will explain more of the process.
IRS Tax Examination Audit Selection
Selecting a return for audit does not always suggest that an error has been made.
Tax Returns are selected using a variety of methods, including:
a. Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. These audits are generally known as the national research projects.
b.Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported. Approximately 1.4 million tax returns are audited this way.
c. Related examinations – returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit. This is a smaller group of those selected for an IRS tax examination.
IRS Tax Examination Audit Methods
An audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The interview may be at an IRS office. This is called a office audit. If it is at the taxpayer’s home, place of business, or accountant’s office it is called a field audit.
The IRS will tell you what records are needed. Audits can result in no changes or changes. Any proposed changes to your return will be explained.
IRS Tax Examination – Audit Notification
Should your account be selected for audit, you will be notified in two ways:
1. By mail, or
2. By telephone
In the case of a telephone contact, the IRS will still send a letter confirming the audit.
PLEASE NOTE : E-mail notification is not used by the IRS.
What are your rights during an IRS Tax Examination Tax Audit
Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
These rights include:
1. A right to professional and courteous treatment by IRS employees.
2. A right to privacy and confidentiality about tax matters.
3. A right to know why the IRS is asking for information, how the IRS will use it and what 4. will happen if the requested information is not provided.
5. A right to representation, by oneself or an authorized representative.
6. A right to appeal disagreements, both within the IRS and before the courts.
IRS Tax Examination Audit Length
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings.
Tax Records Needed
You will be provided with a written request for specific documents needed.
The law requires you to retain records used to prepare your return. Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
Audit Determinations
An audit can be concluded in three ways:
No change. An audit in which you have substantiated all of the items being reviewed and results in no changes.
Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
Disagreed: an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
Call us today and speak directly to former IRS agents, managers and tax instructors that taught tax law and tax audit law at the Internal Revenue Service.
We are affordable and free consultations are available.
IRS Tax Examination – Tax Audit – Ft. Lauderdale, Miami, Palm Beaches
by Fresh Start Tax | Apr 2, 2013 | Tax Help
Tax Levy – IRS Tax Attorneys, Former IRS – IRS Levy Help NOW 1-866-700-1040
If the IRS has set just sent out a bank levy or a wage garnishment to your employer, call us today and get immediate guaranteed relief and get your money back from the Internal Revenue Service.
Do not be ripped off by many companies advertising on the Internet about getting tax levy relief.
Many of these companies that exist are selling your information to a third party who is actually buying your information in hopes to obtain your business.
In selecting or choosing a tax firm for IRS levy relief, make sure they are staffed with tax attorneys, CPAs and former IRS agents to get the very best and optimum results.
There are many good firms to choose from just make sure you interview the person who is going to be doing your work and check on their credentials and that you can verify everything that person saying.
It is also helpful to check the BBB rating of any tax firm you will be retaining.
What is a IRS Tax Levy
A levy is a legal seizure of your property to satisfy a tax debt. IRS must always send you a notice before a tax levy takes place.
IRS tax levies are different from federal tax 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. A tax lien is usually filed in the courthouse closest to your residence. The filing of a federal tax lien can destroy your credit.
If you do not pay your taxes with the IRS or make arrangements to settle your debt the IRS can seize and sell any type of real or personal property that you own or have an interest in.
The most common form of IRS seizures are bank accounts and wages however IRS could seize and sell property that you hold such as your car, boat, or house or could levy property that is yours but is held by someone else retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions.
IRS can only levy after these three (3) requirements are met:
1. The Internal Revenue Service assessed the tax and sent you a Notice and Demand for Payment;
2. You neglected or refused to pay the tax; and (this can be done verbally by the taxpayers )
3. The Internal Revenue Service 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.
Service of the Notice by the Internal Revenue Service to Levy
IRS has options.
They 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.
Keep in mind, the IRS May Levy your State Refund.
Tax Levy – IRS Tax Attorneys, Former IRS – IRS Levy Help NOW
by Fresh Start Tax | Apr 2, 2013 | Tax Help
Tax Tips for the Self Employed – Fresh Start Tax LLC
If you are self-employed here some excellent tax tips to help you navigate through the IRS.
Tax Tips for the Self-Employed
When you are self-employed, it typically means you work for yourself, as an independent contractor, or own your own business.
Here are your main points of interest.
1. Self-employment income can include pay that you receive for part-time work you do out of your home.
This could include income you earn in addition to your regular job.
2. Self-employed individuals file a Schedule C, Profit or Loss from Business, or Schedule C-EZ, Net Profit from Business, with their Form 1040.
3. If you are self-employed, you generally have to pay self-employment tax as well as income tax.
Self-employment tax includes Social Security and Medicare taxes.
You figure this tax using Schedule SE, Self-Employment Tax.
4. If you are self-employed you may have to make estimated tax payments.
People typically make estimated tax payments to pay taxes on income that is not subject to withholding.
If you do not make estimated tax payments, you may have to pay a penalty when you file your income tax return.
The underpayment of estimated tax penalty applies if you do not pay enough taxes during the year.
5. When you file your tax return, you can deduct some business expenses for the costs you paid to run your trade or business.
You can deduct most business expenses in full, but some costs must be ’capitalized.’ This means you can deduct a portion of the expense each year over a period of years.
6. You may deduct only the costs that are both ordinary and necessary.
An ordinary expense is one that is common and accepted in your industry.
A necessary expense is one that is helpful and appropriate for your trade or business.
7. Always make sure you keep copies of any and all information sent to the IRS.
Tax Tips for the Self Employed – Fresh Start Tax LLC
