Payroll Tax Help – Former IRS Agents – Help Settle Federal Payroll Tax Debt

by Fresh Start Tax | Feb 24, 2013 | Tax Help

Payroll Tax Help – Former IRS Agents – Help Settle Federal Payroll Tax Debt     1-866-700-1040

 
If you are having a payroll tax problem with the Internal Revenue Service contact us today for a free consultation and speak directly to tax attorneys, CPAs or former IRS agents.
We have over 60 years of direct working experience and knowledge of the Internal Revenue Service and we have worked in the local, district, and regional tax offices of the Internal Revenue Service.
We have a total of 206 years  of professional tax experience and we are A+ rated by the Better Business Bureau.
We worked as agents, managers, instructors and former IRS appeals agents. We know every tax procedure and policy regarding the filing and the paying of both income and payroll taxes.
Do not let worry and stress hold you back from dealing with your problem. We can handle the situation head-on and get you in your business restored to full financial health.
We have represented thousands of taxpayer since 1982 and are one of the highest rated tax resolution firms in the country.
 

Owing IRS payroll taxes.

As a former IRS agent I have worked thousands of taxpayers and businesses who are owed 941 payroll taxes.
The key component in dealing with Internal Revenue Service is to make sure that you are making current tax deposits and you are timely filing your  941 or 943 payroll tax returns. As a general rule, the Internal Revenue Service will not offer settlements or agreements with any taxpayer or corporation if they are not current both in their filing and their paying of their current federal tax deposits.
It also should be known that IRS has the ability to set up the trust fund tax against those responsible persons or employees who failed to turn over the payroll taxes to Internal Revenue Service.
You will find below the trust fund recovery penalty which may apply to you if you were the person who did not timely paid over back payroll taxes.
 

Trust Fund Tax

A trust fund tax is money withheld from an employee’s wages (income tax, social security, and Medicare taxes) by an employer and held in trust until paid to the Treasury.
When you pay your employees, you do not pay them all the money they earned.
As their employer, you have the added responsibility of withholding taxes from their paychecks. The income tax and employees’ share of FICA (social security and Medicare) that you withhold from your employees’ paychecks are part of their wages you pay to the Treasury instead of to your employees.
Your employees trust that you pay the withholding to the Treasury by making Federal Tax Deposits . That is why they are called trust fund taxes.
Through this withholding, your employees pay their contributions toward retirement benefits (social security and Medicare) and the income taxes reported on their tax returns. Your employees’ trust fund taxes, along with your matching share of FICA, are paid to the Treasury through the Federal Tax Deposit System.
The withheld part of these taxes is your employees’ money, and the matching portion is their retirement benefit.
 

Congress has past a Law

To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.
These taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.
The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business.
The business does not have to have stopped operating in order for the TFRP to be assessed.
 

Who Can Be Responsible for the TFRP

 
The TFRP may be assessed against any person who:
a. is responsible for collecting or paying withheld income and employment taxes, or
2. for paying collected excise taxes, and willfully fails to collect or pay them.
 

A responsible person

A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes.
This person may be:
a. An officer or an employee of a corporation,
b. A member or employee of a partnership,
c. A corporate director or shareholder,
d. A member of a board of trustees of a nonprofit organization,
e. Another person with authority and control over funds to direct their disbursement,
f. Another corporation or third party payer,
g. Payroll Service Providers  or responsible parties within a PSP
h. Professional Employer Organizations  or responsible parties within a PEO, or
i. Responsible parties within the common law employer .
 

For willfulness to exist, the responsible person:

 
a. must have been, or should have been, aware of the outstanding taxes and
b. Either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness.
 

How IRS determines responsibility

 
You may be asked to complete an interview in order to determine the full scope of your duties and responsibilities. This form is a 4180 and can be found on our website.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.
 

How the trust fund penalty is calculated

The amount of the penalty is equal to the unpaid balance of the trust fund tax.
The  trust fund penalty is computed based on:
1. The unpaid income taxes withheld, plus
2. The employee’s portion of the withheld FICA taxes.
For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the TFRP
If the IRS determine that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you.
You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal. The letter will explain your appeal rights. Refer to Publication 5 (PDF), Your Appeal Rights and How to Prepare a Protest if You Don’t Agree, for a clear outline of the appeals process.
If you do not respond to the IRS letter, the IRS will assess the penalty against you and send you a Notice and Demand for Payment.
Important : You must file your protest within the 60 or 75 day period depending on your situation. If you fail to file this protest IRS will proceed with the assessing in the collecting of the trust fund penalty tax.
 

Caution  of what is coming next

 
Once the IRS asserts the trust fund penalty, IRS can take collection action against your personal assets.
IRS can file a federal tax lien or take levy or seizure action. They can put a levy on your bank account or execute a wage levy that will continually take your paycheck until the levies are released.
contact us today and speak directly to tax attorneys, certified public accountants, or former IRS agents. We are tax experts when it comes to IRS payroll tax help and settling IRS. Tax debt.
 
Payroll Tax Help , Former IRS Agents , Help Settle Federal Payroll Tax Debt

Help with IRS Back Taxes – Have Former IRS Reduce Your Tax Debt – Back Tax Help

by Fresh Start Tax | Feb 21, 2013 | Tax Help

Help with IRS Back Taxes – Have Former IRS Reduce Your Tax Debt – Back Tax Help        1-866-700-1040

 
If you owe IRS back taxes and you need to get professional tax help the very best place to turn is to former IRS agents who know the systems and tax policies.
We have over 60 years of direct work experience at the Internal Revenue Service in the local, district, and IRS regional offices.
We have worked as IRS agents, IRS managers, IRS instructors and former IRS appellate agents.
Also on staff are tax attorneys and certified public accountants.
We are A+ rated by the Better Business Bureau we have been in practice since 1982 and we are very affordable.
Contact us today for a free tax consultation and you will speak directly to a tax professional and not a salesperson.
 

When calling other tax firms that are on the Internet

You should be aware of it when you call other tax firms many times you will be speaking to a salesperson who knows little about IRS tax resolution. Unless you’re speaking directly to the tax professional you probably will not be getting the advice you need. By simply calling our office you will hear the truth that you need to hear. Make sure you are finding out the truth and not a sales pitch.
IRS has made it easy for people to pay back taxes due to the new fresh start program or fresh start initiative. It gives taxpayers help with IRS back taxes.
 

The IRS fresh start program for help with IRS Back Taxes

 
In its latest effort to help struggling taxpayers, the Internal Revenue Service has taken new steps to help people get a fresh start with their tax liabilities.
The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.

The changes include that will help with IRS back taxes

 
a. Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
b. Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
c. Creating easier access to Installment Agreements for more struggling small businesses.
d. Expanding a streamlined Offer in Compromise program to cover more taxpayers.
 

The New Tax Lien Thresholds helping with IRS Back Taxes

The IRS will significantly increase the dollar thresholds when federal tax liens are generally filed.
The new dollar amount is in keeping with inflationary changes since the number was last revised.  IRS will now file tax liens when there is assessed amount of $10,000 and above.
The IRS plans to review the results and impact of the lien threshold change in about a year.  The impact of the federal tax lien is much more devastating than taxpayers think. Credit card companies look at the filing of the tax lien and it will usually damage your tax credit history for a period of seven years.
By  IRS filing a federal tax lien they are doing nobody any favors including themselves. Even for taxpayers trying to borrow the money  to pay the tax they find themselves strapped with the federal tax lien. IRS needs to completely revisit their policy toward the filing of the federal tax  not only for the taxpayer before themselves. Taxpayers trying to get out  from under this tax debt are in a very un-enviable position, once the federal tax lien has destroyed their credit for years to come.
 

What is the federal tax lien

A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors.
Usually the government is not the only creditor to whom the taxpayer owes money. IRS files a federal tax lien to secure their interest in property and assets.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer.
This includes property owned at the time the notice of lien is filed and any acquired thereafter.
A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
 

Federal Tax Lien Withdrawals

The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Federal Tax Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. Usually there was a 30 to 60 day hold before IRS would release the federal tax lien.
The IRS has determined that this approach is in the best interest of the government  and the taxpayer.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
 

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 .
For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow a federal tax lien withdrawals under several scenarios:
a. Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
b. The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
c. The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Federal tax 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.
 

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

Streamline Offers that help with IRS Back Taxes
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:
1. annual incomes up to $100,000 to participate.
2.participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs 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.
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.
 

Streamlined Installment Agreements

 
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.
 
Help with IRS Back Taxes, Have Former IRS Reduce Your Tax Debt,  Back Tax Help