by Fresh Start Tax | May 2, 2012 | IRS Tax Debt, Representation, Tax Lawyer, Tax Levy and Wage Garnishments
What is the difference between a Federal Tax Lien and a IRS Levy? 1-866-700-1040
Get your Levy Released today.
This is one of the most common questions asked by our clients and taxpayers.
Being a Former IRS Agent I want to explain this is in very simple terms so everyone can understand the difference.
A IRS Tax Levy is an immediate seizure of assets. It is usually sent to a Bank or is put on a taxpayers wages. These are also called Bank Levy Garnishments or Wage Levy Garnishments. They are sent to banks and businesses on tax forms 668A, 668W.
A Bank Levy has special rules applied to the procedure. The day a Bank Levy is received by a Banking Institution the account is immediately frozen for the amount shown on the Tax Levy. Only those funds are frozen. Monies deposited after the levy are not effected by the Bank Levy or Tax Levy.
The bank MUST hold the frozen funds for 21 days before sending the money to the IRS. The IRS gives that 21 day grace period as a time for the taxpayer to get the bank levy released.
A Wage Levy or Wage Garnishment has a different feature.
After a business receives a levy the wages are immediately frozen and the employer must send the applicable proceeds to the IRS on the next scheduled pay period. There is no grace period.
As a general rule the taxpayer can keep around 10% that is exempt from the levy. IRS will send out a form that details the exact exempt amount.
IRS does not wish to levy. The hope is that the taxpayers call the IRS to work out or make a tax settlement to resolve the tax problem or tax situation.
Tax Levies can usually be released within one week sometimes even that day if we can get records from the taxpayer.
A Federal Tax Lien is a notice filed at the Public Courthouse in the area of your residence putting the public and creditors on notice you owe IRS taxes. It is not a seizure just a notice.
Anyone has access to public records and everyone can has access to your tax information.
Your credit score will be badly damaged as a result of a Federal Tax Lien. A Federal Tax Lien cannot be removed until it is paid in full or the statute of limitations runs. Other rules apply call us for more details.
IRS must file a Federal Tax lien if you owe over $5000.
If you need immediate tax relief from a federal tax levy or a federal tax lien call Fresh Start Tax LLC today. 1-866-700-1040. IRS Tax Debt Settlement Relief today.
On staff Tax Attorney’s, CPA’s and Former IRS Agents for professional tax representation.
What is the difference between to IRS Tax Levy and Tax Lien – Former IRS Agents/ Tax Attorneys – IRS Experts
by Fresh Start Tax | May 2, 2012 | Abatements, Back Taxes, IRS Tax Problem, Tax Help, Tax Lawyer
Do you have IRS Penalties and Interest piling up on your IRS tax bill?
If you want to hire true tax experts and tax professionals call Fresh Start Tax LLC 1-866-700-1040 to speak directly to either a Tax Attorney, CPA ‘s or Former IRS Agents and Managers.
We also have on our staff a former IRS Appeals Agent who has worked hundreds of abatement cases as a IRS Appeals agent.
IRS has tax provisions to get rid of, remove or abate penalties and interest if you have reasonable cause and can prove your claim.
Most taxpayers believe that writing a simple letter to remove IRS Penalties and Interest and poof, IRS be gone with them, however, this process is not so simple.
As a general rule, IRS looks for reasons to NOT accept the request for abatement because they are very lazy and do not want to process claims because it requires to much work. Sad but true.
Having been a former IRS Agent I can tell you this from experience and how other IRS Agents handled their cases. Like in any business some agents were very good and other not so good.
I tell most of my clients to usually expect our cases to go to appeals when fighting IRS penalties and interest. We are true experts in penalty abatement’s.
There is a specific format that the IRS goes through. The claims of abatement to rid yourself of IRS Penalties and Interest must be thorough, detailed and loaded with documentation.
You can look on our web site to examine the process more thoroughly.
Go to Tax Solutions on our home page and click go to Abate IRS Penalties and Interest.
IRS Provisions to get rid of, remove or abate IRS penalties and interest:
The number of electronic filing and payment options increases every year, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both.
The two different penalties you may face are the failure to file and the failure to pay. These are two of the larger penalties.
1. If you do not file by the deadline, you might face a failure-to-file penalty.This is a maximum of 25% if the return is 5 months late. It is critical even of you do not have the money to file a timely tax return.
2. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.
3. 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.
4. If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes.
5. If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure-to-pay penalty if the remaining balance is paid by the extended due date.
6. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, 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.
7. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.
Call us today to see if you qualify for an abatement today. Hear the truth.
by Fresh Start Tax | May 2, 2012 | IRS Notice or Letter, IRS Tax Problem, Tax Lawyer
If you have received a IRS Letter or Tax Notice here is what you need to know concerning the correspondence you have received from the Internal Revenue Service.
First of all never panic and if you need to speak to a former IRS Agents call Fresh Start Tax LLC 1-866-700-1040 and let true tax professionals help you through this situations.
Usually these problems are not as bad as you think.
The IRS sends millions and millions of letters and notices to taxpayers for a variety of reasons. Many of these letters and notices can be dealt with without having to call or visit an IRS office. Many times you can just send correspondence by mail back to the IRS to resolve the dispute.
What you need to know about IRS notices and letters:
1. There are a number of reasons why the IRS might send you a notices or letters. Tax Notices/Letters may request payment, notify you of account changes, or request additional information.
A notice always covers a very specific issue about your tax account or tax return. and always a specific tax year or tax period.
2. Each IRS letter or notice offers specific instructions on what action you need to take. Make sure you call back by the assigned follow up date on the letter.
3. If you receive a correction notice, you should review the correspondence and compare it with the information on your return. Make sure you have back up information to support your finding with the IRS.
4. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise. Follow up and all correspondence and make sure the problem is fully resolved by the IRS.
5. If you do not agree with the correction the IRS made, it is important to respond as requested. You should send a written explanation of why you disagree and include any documents and information you want the IRS to consider along with the bottom tear-off portion of the notice.
You should mail the information to the IRS address shown in the upper left of the notice. Allow at least 30- 45 days for the IRS to response.
6. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right of the notice. Have a copy of your tax return and the correspondence available when you call to help the IRS respond to your inquiry.
7. It is important to keep copies of any correspondence with your records. You cannot email any information to the IRS.
One of the big mistake taxpayers tend to make is to assume the problem is fully resolved.
We at Fresh Start Tax LLC believe it is always best to call the IRS 60 days after you believe the situation should have been resolved and verify that with the IRS.
These matters will not go away until they are removed from the IRS CADE computer.
Remember, if you wind up owing the IRS money and the problem goes unresolved , the IRS will follow up with a Notice of Federal Tax Levy to banks and on wages.
IRS issues over 3.6 million bank levy ( levies ) and wage levy garnishments. The IRS also filed over 900,000 federal tax liens.
Should you need help call us now. On staff, Tax Attorneys and Former IRS Agents.
by Fresh Start Tax | Apr 17, 2012 | IRS Penalties, IRS Tax Advice, Tax Lawyer
Get rid of IRS Penalties and Interest 1-866-700-1040
Have IRS Insiders and Former IRS Agents work for you. If you have reasonable cause, we will get your money back, its that simple.
There are several ways to remove IRS Penalties and Interest. As Former IRS Agents and Managers we know all the techniques and best case practices to get rid of IRS Penalties and Interest.
Call us today at 1-866-700-1040 with your specific case and we will let you know the best way to abate, get rid of or remove IRS penalties and interest.
When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both.
Failure to File, Failure to Pay:
Here are important points about the two different penalties you may face if you file or pay late.
1. If you do not file by the deadline or due date of the tax return, you will face a failure to file penalty.
If you do not pay by the due date, you could face a failure to pay penalty.
2. The failure-to-file penalty is generally more than the failure to pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options. Always file your tax return timely. This is the highest penalty the IRS assesses.
3. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will cannot exceed 25 percent of your unpaid taxes. It therefore tops out at 25%. Interest is assessed on penalties as well.
4. Exception – 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.
5. If you do not pay your taxes by the due date, you will generally have to pay a failure to pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid.
This penalty can be as much as 25 percent of your unpaid taxes. This penalty also tops out as well.
6. If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure to pay penalty if the remaining balance is paid by the extended due date.
7. If both the failure to file penalty and the failure to pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty.
However, 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 failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.
See our website for a comprehensive list of reasonable causes for penalty abatement.
Call us today, 1-866-700-1040. On staff, Board Certified Tax Attorneys, CPA’s and Former IRS Agents.
by admin | Apr 3, 2012 | Innocent / injured Spouse, IRS Tax Problem, Tax Help, Tax Lawyer
The IRS are changing the rules about Innocent Spouse and injured Spouse cases making it much easier for cases to be accepted.
For many years IRS has played hardball regarding Innocent and Injured Spouses cases.
With a host of taxpayer complaints IRS has lighten some of the requirements to get these cases through the system. The complaint worked.
As former IRS Agents and Managers we have worked hundreds of cases.
To see if you qualify for Innocent or Injured Spouse tax relief call us today. 1-866-700-1040.
The New Rules have changed making it easier to qualify for innocent or injured spouse. These new rules are a breathe of fresh aire because the old rules favored the Internal Revenue Service.
Contact us at freshstarttax.com
News about the new program for Innocent Spouses:
The Internal Revenue Service announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests.
After a thorough review of both injured and innocent spouses cases these are the results:
- The Internal Revenue Service will no longer apply the two-year limit to new equitable relief requests or requests currently being considered by the agency.
- A taxpayer, whose equitable relief request was previously denied solely due to the two-year limit, you may reapply using IRS Form:
- 8857, Request for Innocent Spouse Relief,
- The IRS will not apply the two-year limit in any pending litigation involving equitable relief, and where litigation is final, the agency will suspend collection action under certain circumstances. The change to the two-year limit is effective immediately, and details are in Notice 2011-70, posted on IRS.gov. This policy change will become operational in the fall and more guidance will be forthcoming.
Injured or Innocent Spouse Tax Relief
You may be an injured spouse if you file a joint tax return and all or part of your portion of a refund was, or is expected to be, applied to your spouse’s legally enforceable past due financial obligations.
Here are some facts about claiming injured spouse relief:
1. For you to be considered an injured spouse; you must have paid federal income tax or claimed a refundable tax credit, such as the Earned Income Credit or Additional Child Tax Credit on the joint return, and not be legally obligated to pay the past-due debt.
2. Special rules may apply in community property states.
For more information about community property status and the factors used to determine whether you are subject to community property laws, see IRS Publication 555, Community Property.
3. If you filed a joint return and you are not responsible for the debt, but you are entitled to a portion of the refund, you may request your portion of the refund by filing Form 8379, Injured Spouse Allocation.
4. You may also file form 8379 along with your original tax return or your may file it by itself after you receive an IRS notice about the offset.
5. You can also file Form 8379 electronically.
If you file a paper tax return you can include Form 8379 with your return, write “INJURED SPOUSE” at the top left of the Form 1040, 1040A or 1040EZ. IRS will process your allocation request before an offset occurs.
6. If you are filing Form 8379 by itself, it must show both spouses’ Social Security numbers in the same order as they appeared on your income tax return. You, the “injured” spouse, must sign the form.
7. Do not use Form 8379 if you are claiming innocent spouse relief.
Instead you should file Form 8857, Request for Innocent Spouse Relief. This relief from a joint liability applies only in certain limited circumstances.
In 2011 the IRS eliminated the two-year time limit that applies to certain relief requests. IRS Publication 971, Innocent Spouse Relief, explains who may qualify, and how to request this relief.
To see if you qualify for Innocent or Injured Spouse relief call us today. 1-866-700-1040
Innocent or Injured Spouse Tax Relief – New Tax Rules – IRS Tax Relief – Former IRS – Apply today
by steve | Jan 9, 2012 | Tax Lawyer
IRS has announced it’s new tax program for Offshore Bank Accounts.
After finding a goldmine in Offshore Accounts the IRS will continue to ramp up it’s program.
Here is how the process and the new program will work.
The overall penalty structure for the new program is the same for 2011, except for taxpayers in the highest penalty category. Off course IRS must modify the program.
For the new program, the penalty framework requires individuals to pay a penalty of 27.5 percent of the highest aggregate balance in foreign bank accounts/entities or value of foreign assets during the eight full tax years prior to the disclosure.
(more…)
