by Fresh Start Tax | Jan 9, 2013 | Tax Help
There are a number of tax changes this year that are in affect for individuals. Listed below are some of those changes.
To find out more on how they may impact you simply call the office is a Fresh Start Tax and speak directly to Tax Attorneys, CPAs, Enrolled Agents and former IRS Agents.
We will also be able to audit proof your tax return.
We have been preparing tax returns since 1982 and we can assure that you will pay the lowest tax rate possible
Tax Changes for 2013
Income Taxes
The top income tax rate increases to 39.6 percent for taxable income in excess of $400,000 for individuals and $450,000 for married couples filing jointly.
All other existing income tax rates are made permanent.
An additional 3.8 percent unearned Medicare surtax applies to the lesser of net investment income or the excess of modified adjusted gross income (AGI) over $200,000 for individuals and $250,000 for married couples filing jointly.
This particular surtax was enacted as part of the Affordable Care Act.
The Medicare Tax Rate.
The Medicare Tax Rate of 0.9 percent applies to compensation or self-employment income in excess of $200,000 for individuals and $250,000 for married couples filing jointly.
Both qualified dividends and capital gains.
Both qualified dividends and capital gains are taxed at 20 percent for those with taxable income in excess of $400,000 for individuals and $450,000 for married couples filing jointly.
The 2012 rates for dividends and capital gains remain unchanged for individuals with taxable income less than $400,000.
Both qualified dividends and capital gains
Both qualified dividends and capital gains will be phased out for those with AGI in excess of $250,000 for individuals and $300,000 for married couples filing jointly.
Personal exemptions
Personal exemptions will be completely phased out when income exceeds the threshold amount by $125,000. The maximum reduction in itemized deductions under this limitation is 80 percent.
The itemized limitation does not apply to investment interest, medical expenses or casualty losses although medical expenses must now exceed 10 percent of AGI to be deductible.
The Alternative Minimum Tax
The Alternative Minimum Tax is permanently “patched,” meaning that exemptions from AMT are increased to $50,600 for individuals and $78,750 for married couples filing jointly.
Nonrefundable credits are now allowed as credits against AMT. These provisions are retroactive to 2012
Employee portion of Social Security
The reduced rate of 4.2 percent for the employee portion of Social Security was allowed to expire. Beginning in 2013, the tax rate will revert to 6.2 percent.
Charitable Distributions
For 2012 and 2013 only, charitable distributions from individual retirement accounts (IRAs) are reinstated.
Individuals over age 70½ can make direct distributions (up to $100,000) to charity from an IRA and exclude these distributions from their income (although no charitable deduction is allowed).
A transition rule allows direct charitable distributions in January 2013 to count as 2012 charitable contributions.
Distributions made to individuals in December 2012 can be considered to be donated to charity in 2012 if the gross amount of the distribution is contributed to charity before February 1, 2013.
Maximum income tax rate for trusts
The maximum income tax rate for trusts with income over $11,950 increases to 39.6 percent. The 3.8 percent unearned Medicare surtax will also apply to trust income.
Deductions and credits
Several deductions and credits were extended only through 2013. One such extension allows taxpayers to claim state sales taxes paid as an itemized deduction in lieu of state income taxes paid. This is particularly attractive for taxpayers residing in states with no income tax.
Some thoughts
For both political parties guaranteeing they were not going to raise tax rates during the elections you could’ve fooled me. These tax rates are really a sucker punch to the American public that just shows you that neither the President or Congress can be trusted on anything they said. This is a sad commentary of our political system.
by Fresh Start Tax | Jan 7, 2013 | Tax Help, Tax Levy and Wage Garnishments
Tax Wage Levy – Get your Tax Wage Levy Removed Today
It is very possible to get your tax wage levy released today if you are going through a hardship.
We are comprised of Attorneys, CPA’s and Former IRS Agents and we can get your case settled and your Tax Wage Levy Problem completely resolved. 1-866-700-1040
IRS uses a form 668W to seize wages. You should know the 688W is a continuous tax levy. The Tax Wag Levy will not stop until you quit the job or until get a release of tax wage levy from the IRS.
We are affordable, fast and A plus rated by the BBB.
To make sure this situation is resolved as fast as possible we will need to make sure all your tax returns are filed or at least in the preparation phase and need a 433F financial statement with complete documentation.
We can help you through this process. Call is today for a no cost professional tax consult and speak directly to a true tax professional. 1-866-700-1040.
What is a Tax Wage Levy
A tax wage levy is a legal seizure of your property to satisfy a tax debt.
Tax Wage Levies are different from liens.
A federal tax lien is a claim used as security for the tax debt, while a tax wage levy actually takes the property ( or seizes the property ) to satisfy the tax debt.
If you do not pay your taxes or make arrangements to settle your tax debt, the IRS may seize and sell any type of real or personal property that you own or have an interest in.
The Internal Revenue Service will usually levy only after these ( 3 ) 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,
3. the internal Revenue Service sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing ( tax levy notice) at least 30 days before the levy.
Method of Delivery
The IRS has the option, it 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 the IRS levies 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.
Continuous Effect of Levy on Salary
Unlike other IRS tax levies, a levy on a taxpayer’s wages and salary has a continuous effect. It attaches to future payments, until the levy is released.
Wages and salary include:
1. fees,
2.bonuses,
3.commissions, and
4. similar items.
All other tax levies only attach to property and rights to property that exist when the levy is served.
For an example, if a bank account is levied by the IRS, it only reaches money in the account when the levy is served. It does not reach money deposited later.The levy is good only at the time, place and date of service.
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
Exempt Amount from a Tax Wage Levy
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
Joint Liabilities
For joint liabilities, generally levy the income of the spouse with the larger income.
IRS will generally levy both incomes only in flagrant cases of neglect or refusal to pay.
Separated Taxpayers
If taxpayers are separated, consider collecting from both spouses’ income rather than collecting from one spouse’s income.
Tax Wage Levy – Get your Tax Wage Levy Removed Today
by Fresh Start Tax | Jan 4, 2013 | Tax Help
IRS 433A – New Form – Caution, before giving to the IRS
Call us for a no cost analysis of your IRS form 433A.
Below, the Link to the New 433A.
www.irs.gov/pub/irs-pdf/f433a.pdf
I am a Former IRS Collections Agent and Teaching Instructor with the Internal Revenue Service. I have some good advice for you,
NEVER GIVE THIS FORM TO THE IRS BEFORE A REVIEW FROM A TRUE TAX PROFESSIONAL.
I give you this information not as a scare tactic but for a pure reality check. There are many companies and professionals to chose from the single most important document that will determine the outcome of your case is the IRS 433A.
IRS will use this form to govern your financial life.
IRS wants to collect as much money from you as they can. They use this IRS 433A to make one of the 3 following determinations:
1. IRS will put your case in hardship,
2. IRS will have you start to make payments,
3. IRS will let you know you are a offer in compromise candidate.
Why the Caution?
IRS can chose or deny accept your expenses sometimes on there own discretion an you have no idea whether they are being fair or not.
In most cases the IRS uses this 433A to their advantage to collect more. You also have no idea what to fight because you assume what they are telling you is the gospel truth.
That is the reason you need a tax professional to fight for you. We no the limits of the IRS boundaries. Tax professionals who have worked thousands of cases know exactly how to win.
Once the IRS receives the 433A they will ask for completely documentation and this include the following:
1. Wages, salaries, pensions, and social security: Enter gross monthly wages and/or salaries. Do not deduct tax withholding or allotments taken out of pay, such as insurance payments, credit union deductions, car payments, etc,
2. Net Income from Business.
Enter monthly net business income. This is the amount earned after ordinary and necessary monthly business expenses are paid. This figure is the amount from page 6, line 89. If the net business income is a loss, enter “0”. Do not enter a negative number.If this amount is more or less than previous years, attach an explanation.
3. Net Rental Income.
Enter monthly net rental income. This is the amount earned after ordinary and necessary monthly rental expenses are paid. Do not include deductions for depreciation or depletion. If the net rental income is a loss, enter “0.” Do not enter a negative number.
4. Distributions.
Enter the total distributions from partnerships and sub-chapter S corporations reported on Schedule K-1, and from limited liability companies reported on Form 1040, Schedule C, D or E. Enter total distributions from IRAs if not included under pension income.
5. Other Income.
Include agricultural subsidies, unemployment compensation, gambling income, oil credits, rent subsidies, etc.
6. Expenses not generally allowed.
IRS generally do not allow tuition for private schools, public or private college expenses, charitable contributions, voluntary retirement contributions or payments on unsecured debts.
However, IRS may allow the expenses if proven that they are necessary for the health and welfare of the individual or family or the production of income.
7. Food, Clothing and Miscellaneous.
Total of food, clothing, housekeeping supplies, and personal care products for one month. The miscellaneous allowance is for expenses incurred that are not included in any other allowable living expense items.
Examples are credit card payments, bank fees and charges, reading material, and school supplies.
8. Housing and Utilities.
For principal residence: Total of rent or mortgage payment. Add the average monthly expenses for the following: property taxes, homeowner’s or renter’s insurance, maintenance, dues, fees, and utilities. Utilities include gas, electricity, water, fuel, oil, other fuels, trash collection, telephone, cell phone, cable television and internet services.
9. Vehicle Ownership Costs.
Total of monthly lease or purchase/loan payments.
10. Vehicle Operating Costs.
Total of maintenance, repairs, insurance, fuel, registrations, licenses, inspections, parking, and tolls for one month.
11. Public Transportation.
Total of monthly fares for mass transit (e.g., bus, train, ferry, taxi, etc.)
12. Out of Pocket Health Care Costs.
Monthly total of medical services, prescription drugs and medical supplies (e.g., eyeglasses, hearing aids, etc.)
13. Current Year Taxes.
Include state and Federal taxes withheld from salary or wages, or paid as estimated taxes.
IRS 433A – New Form – Caution, before giving to the IRS
by Fresh Start Tax | Dec 29, 2012 | Income Tax Preparation, Tax Help, Uncategorized
Income Tax Preparation – IRS Tax Audit Defense – Former IRS Agents, Managers – Broward, Dade, Palm Beach County 954-492-0088
We are comprised of Former IRS Agents, Managers and Instructors that can prepare help audit proof your tax return.
We have over 60 years of direct work experience with the IRs in the local South Florida IRS offices. We have been Agents, Managers , Appeals Agents and Instructors.
We also taught Tax Law at the IRS. We are one of South Florida’s most experienced tax firms.
We also handle all State Tax Matters as well. All work is done in house.
We have prepared thousands of Income, Business and Corporate Income Tax Returns. Not only have we prepared those tax returns we have also audited those tax returns as Former IRS agents and Appeals Officers.
Come by or visit our offices so you can met us. We will review all prior years returns for accuracy and offer suggestions on how to save valuable tax dollars in the future.
We set up a tax and or business tax plan with all our clients.
We are one of South Florida’s highest rated firms with a A plus rating from the Better Business Bureau with tracks business over the past 7 years.
We are Affordable, Experienced and Trustworthy
All work is done in-house from tax professionals
- A full service tax firm including all personal and business tax returns
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Our Company Resume: ( Serving South Florida 1982 )
- Our staff has over 135 years of professional tax representation experience collectively
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When you do business with us, you’ll always have our strongest commitment to:
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Areas of Professional Tax Practice:
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- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
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- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
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Income Tax Preparation – IRS Tax Audit Defense – Former IRS Agents, Managers – Broward, Dade, Palm Beach County
by Fresh Start Tax | Dec 28, 2012 | Tax Help
Tax Compliance Levy – Bank, Wage Levy Garnishments Relief
Call us today to get instant tax relief for a bank or a wage garnishment levy. 1-866-700-1040.
On staff, Attorneys, CPA’s and Former IRS agents who know the system.
We get results and we are affordable.
We are A plus rated by the BBB and all consultations are free.
If a taxpayer does not comply with the IRS requirements and adherence of the IRS notices and bills it sends as a result of monies owed for back taxes, IRS will fully engaged there tax compliance through collection enforcement with the issuance of a bank levy or a wage garnishment levy.
IRS can only usually levy or garnish after these (3) three requirements are met:
1. The Internal Revenue Service assessed the tax and sent you a Notice and Demand for Payment,
2. You the taxpayer neglected or refused to pay the tax and you let IRS know by voice or mail,
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.
Method of Delivery of a Tax Levy or Wage Garnishment.
IRS may give you this notice:
1. in person,
2. leave it at your home or,
3. your usual place of business,
4. or send it to your last known address by certified or registered mail.
Bank Levies Holding Period
A bank must wait 21 calendar days after a levy is served before sending payment.
On the next business day, it must turn over the taxpayer’s money.
The depositor(s) can waive this waiting period. The bank will not send money that is subject to attachment or execution under judicial process. Bank includes all credit unions, savings and loan associations, trust companies.
During the holding period, a bank tax levy might be released, or the amount owed could decrease.
If the bank receives no release, it must send the payment after the holding period.
Absolutely no additional tax notice is required.
Consider the holding period when deciding how long to project the accruals on a bank levy.
Duties of the Bank Liaison
The holding period was created to settle disputes about ownership of bank accounts before money is sent.
Sometimes ownership is not settled before the holding period ends.
If this happens, ask the bank for more time.
Issues that may arise.
Multiple Signature Authority for a Bank Account
A bank levy served to a bank attaches to funds in a bank account for which the taxpayer has an unrestricted right to withdraw funds (signature authority) even if multiple persons have signature authority for that bank account.
A non-liable third party may claim ownership of funds in a bank account when multiple people hold signature authority for that bank account. Treat this dispute as a potential wrongful levy.
A wrongful levy is a levy that improperly attaches property belonging to a third party in which the taxpayer has no rights.
Reminder:
For bank levies if additional time is needed beyond the 21 day hold period to determine ownership, request the bank hold the funds. Provide the potentially wrongfully levied party a deadline date for providing substantiation and provide the bank with a specific extension date to forward the funds.
Amount that must be surrendered as a result of the Tax Levy
The bank must send the amount in the taxpayer’s accounts.
A bank levy attaches to any property or rights to property that belong to the taxpayer or on which there is a Federal tax lien, unless it is exempt.
Legal authority to Levy
See IRC 6331, Levy and Distrait , for legal authority to levy.
However, it must send no more than the amount shown on the notice of levy.
By law, banks cannot immediately honor the IRS tax levy.
Very Important Note:
The notice of levy only reaches the amount on deposit when the levy is received. Money deposited later is not surrendered, including deposits during the holding period.
Another levy must be served to reach this money. Also, the levy only reaches deposits that have cleared and are available for the taxpayer to withdraw.
Levy proceeds must not be reduced by any fee charged by the bank for processing the levy.
Tax Compliance Levy – Bank, Wage Levy Garnishments Tax Relief
by Fresh Start Tax | Dec 22, 2012 | Tax Help
Foreign Trusts – IRS Tax Help – Filing & Representation
Foreign Trust Reporting
Form 3520-A reporting information on Foreign Trust activities is required to be filed by the 15th day of the third month following the end of the trust’s tax year.
Form 3520-A for a foreign trust with a tax year ending December 31, 2011 is due on March 15, 2012.
Each United States persons treated as an owner of the Foreign Trust is responsible for ensuring that the foreign trust files the Form 3520-A and that the trust annually furnishes copies of the Foreign Grantor Trust Owner Statement and the Foreign Grantor Trust Beneficiary Statement to the U.S. owners and U.S. beneficiaries.
Extensions of time to file Foreign Trusts – Form 2758
If an extension of time to file is needed, a Form 2758, Application for Extension of Time to File Certain Excise, Income, Information, and Other Returns, must be filed with the IRS by the due date of Form 3520-A in order for it to be considered for approval.
Employer Id Numbers – A mandatory Requirement
Every foreign trust is required to have its own Employer Identification Number (EIN) to place in Part 1, Line 1b of Form 3520-A.
Obtaining a EIN
You can obtain an EIN by filing Form SS-4, Application for Employer Identification Number, with the IRS.
To receive an EIN by telephone, complete Form SS-4, then:
1. Call the Tele-TIN unit at 267-941-1099 (not toll free).
2. Forms SS-4, 3520-A and 2758 are to be mailed to the following address. Internal Revenue Service Center, P.O. Box 409101, Ogden, UT 84409
In addition, a filing requirement may exist for Form 3520 “Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts”.
Foreign Trusts – IRS Tax Help – Filing & Representation
