by Fresh Start Tax | Nov 11, 2012 | Back Taxes, Expatriate Tax, FBAR, IRS Representation, IRS Tax Debt, IRS Tax Problem, Tax Lawyer, Tax Returns, Tax Settlements
Australia- FBAR, EXPAT – Attorney, Lawyers, Former IRS – Filing, Penalties, Settlement – Affordable Tax Experts
Do not be bullied by the IRS. Find out the truth about FBAR disclosures to the IRS.
You have options. We can file and settle your case.
Call us today, we are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents, Managers and Instructors. 1-866-700-1040.
We have over 206 years of total tax experience and over 60 years of direct IRS experience in resolving IRS tax issues and tax problems. We are a full service tax firm with all work being done in house by true tax experts.
We are true Tax Experts of FBAR and Expatriate Tax Issues.
There is a great deal on the web and in press releases that has scared many FBAR filers and Expats into taking position on the filing of FBAR that makes one believe that everything must go through Criminal Investigation.
The reality is that few taxpayers are tax criminals. What is so sad it that the IRS has scared everyone to death regarding FBAR.
The truth be told you have the option of making a Silent Disclosure.
Some taxpayers have already made quiet disclosures by filing amended returns.
Before a decision is made on each case, a tax attorney or tax lawyer will use a set of facts particular to that case. There are no two cases the same, each has a unique set of circumstances.
With that said Quiet Disclosure are not for everyone that is why a careful review must be made on each case.
Taxpayers with unreported foreign bank accounts present themselves and their professional advisers with a bunch of very important important decisions they need to make.
These tax and filing decisions must be made based on a very careful review of all material, information, an understanding of the potential tax penalties and interest involved, and the exposure to any other financial crimes, criminal implications or tax penalties.
Regardless of how tempting under no circumstances should Attorneys or Lawyers and taxpayers ignore reporting tax and FBAR tax requirements simply because the IRS has not yet raised the issue in the client’s specific case.
Our rule of thumb, find IRS before they find you.
How the process works.
The IRS does review amended returns and could select any amended return for examination.
If a tax return is selected for examination, the 20 percent offshore penalty would not be available.
Criminal Behavior
When criminal behavior is evident and the disclosure does not meet the requirements of a voluntary disclosure under IRM 9.5.11.9, the IRS may recommend criminal prosecution to the Department of Justice.
Taxpayers who have already made quiet disclosures but have not yet been selected for examination may take advantage of the penalty framework applicable to voluntary disclosure requests regarding unreported offshore accounts and entities, provided they otherwise meet the criteria for voluntary disclosure set forth in IRM 9.5.11.9.
Call us for more detail. 1-866-700-1040. Privileged conversation with a tax attorney or tax lawyers.
What possible forms are needed to be Filed with the IRS ?
Besides federal income tax returns, what forms or other returns must be filed?
The following forms must be filed:
a. Copies of original and amended federal income tax returns for tax periods covered by the voluntary disclosure,
b. Complete and accurate amended federal income tax returns (or original returns, if not previously filed) of the taxpayer for all tax years covered by the voluntary disclosure;
c. An explanation of previously unreported or under reported income or incorrectly claimed deductions or credits related to undisclosed foreign accounts or undisclosed foreign entities, including the reason(s) for the error or omission,
d. If the taxpayer is a decedent’s estate, or is an individual who participated in the failure to report the foreign account or foreign entity in a required gift or estate tax return, either as executor or advisor, complete and accurate amended estate or gift tax returns (original returns, if not previously filed) necessary to correct the under reporting of assets held in or transferred through undisclosed foreign accounts or foreign entities;
Complete and accurate amended information returns required to be filed by the taxpayer, including, but not limited to,
a. Tax Forms 3520,
b. 3520-A,
c. 5471,
d. 5472,
e. 926 and
f. 8865 (or originals, if not previously filed) for all tax years covered by the voluntary disclosure, for which the taxpayer requests relief; and
Complete and accurate Form TD F 90.22-1, Report of Foreign Bank and Financial Accounts, for foreign accounts maintained during calendar years covered by the voluntary disclosure.
Call us today for more details and find you the truth. you do not have to be worried. 1-866-700-1040
by Fresh Start Tax | Nov 9, 2012 | Expatriate Tax, FBAR, Offshore Program, Offshore Tax Problems, Tax Lawyer, Tax Settlements
Offshore Bank Accounts – File & Settle – IRS Federal Tax Representation – Attorneys, Lawyers, Former IRS – Experts,
Stop the worry today, call one of the Attorneys or Lawyers and get a free confidential consultation.
We are a professional tax firm specializing in IRS tax matters including Offshore Bank Accounts, Filing, Amending, Penalty Abatement, Representation and FBAR and Expatriate Tax Representation.
We have over 60 years of directly working for the Internal Revenue Service as Agents, Managers and Instructors. We have over 205 years of tax firm tax experience.
As Former IRS agents we taught Tax Law and know all of settlement and closing policies of the Internal Revenue Service.
We can completely settle and negotiate your case no matter what the IRS tax issue.
Things you should know
1. You Must Report Worldwide Income.
You must report your worldwide income on your U.S. income tax return. You must check “yes” (on Schedule B) if you have an interest in a foreign bank or financial account.
Worldwide income includes interest, foreign earnings, wages, dividends and other income. even if the foreign income is taxed somewhere else.
You can be entitled to a foreign tax credit(s) if you are living and working abroad, you may be entitled to an exclusion from U.S. tax for some or all of the income you earn abroad.
2. Tax Return Reporting
All U.S. persons with foreign bank accounts must also file annually a Treasury Department Form, TD F 90-22.1 Report of Foreign Bank and Financial Accounts–commonly called an FBAR.
3. New Form. Now with your tax return, you may also need to file an IRS Form 8938 to report your foreign accounts and assets. See IRS Form 8938 Or FBAR? and More On IRS Form 8938 vs. FBAR.
4. FBAR Penalties. The penalty for failing to file an FBAR is $10,000 for each non-willful violation. If willful, the penalty is the greater of $100,000 or 50 percent of the amount in the account for each violation. For each year you did not file is are separate violation penalties.
5. Prison. IRS Tax Evasion can carry a prison term of up to five years and a fine of up to $250,000.
a.Filing a false return can mean up to three years in prison and a fine of up to $250,000.
b.Failing to file a tax return can mean a one year prison term and a fine of up to $100,000.
c.Failing to file FBARs can be criminal too with financial penalties up to $500,000 and prison for up to 10 years.
6. Voluntary Disclosure. If you admit that you did not file to the IRS you decide to come forward you can make a voluntary disclosure.IRS will have you pay the back taxes and penalties and you can move forward worry free.
7. Quiet Disclosures. Another option is to make a quiet disclosure which means you simply file or amend your tax returns without any contact with the IRS. Without question you should contact a tax attorney or tax lawyer to walk you through this process.
Common asked question
How can I verify that my FBAR Report was actually filed and received?
Ninety days (90) after the date of filing, the tax filer can request verification that the FBAR was received. An FBAR filing verification request may be made by calling 866-270-0733 and selecting option 1.
Up to five documents may be verified over the phone. There is no fee for this verification.
Alternatively, an FBAR filing verification request may be made in writing and must include the filer’s name, taxpayer identification number and the filing period.
There is a $5 fee for verifying five or fewer FBARs and a $1 fee for each additional FBAR. A copy of the filed FBAR can be obtained at a cost of $0.15 per page. Check or money order should be made payable to the United States Treasury.
The request and payment should be mailed to:
IRS Enterprise Computing Center/Detroit
ATTN: Verification
P.O. Box 32063
Call us today and stop the worry 1-866-700-1040
Offshore Bank Accounts – File & Settle – IRS Federal Tax Representation – Attorneys, Lawyers, Former IRS – FBAR Experts
by Fresh Start Tax | Nov 8, 2012 | California Tax, Tax Help, Tax Lawyer, Tax Settlements
IRS Tax Attorney Lawyers – Reduce IRS Tax Debt- Former IRS
We are a professional tax firm specializing in IRS and State Tax Problems. We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s , Enrolled Agents and Former IRS Agents, Managers and Tax Instructors.
We have over 60 years of direct IRS work experience in the local, district and regional offices of the IRS and over 206 years of professional tax experience. We have a National Tax Practice with a local presence.
We have worked thousands of IRS cases to reduce IRS tax debt.
We taught Tax Law at the IRS.
Fresh Start Tax
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
Last year approximately 59,000 taxpayers applied for tax relief to reduce IRS debt through the Offer in Compromise Program and somewhere around 20,000 offers were accepted.
The New Fresh Start Program that was instituted by the IRS will allow thousands of struggling taxpayers to finally resolve and reduce their tax debts.
Being a Former IRS Agent I caution taxpayers to make sure they use a reputable tax firm to file and represent your interest for the filing of the offer.
The forms must be filled out accurately and precisely because the IRS looks for any reason to reject these cases because they are long and complicated for them and each one of their supervisors must thoroughly review their work and work produce before the case goes up the line for a possible acceptance.
Offer take about 5 months to get accepted.
I would also caution taxpayers do not file the offer unless you get pre-qualified before you file. Do not waste your money.
We at Fresh Start Tax review all offer for no cost. 1-866-700-1040.
What is a Offer in Compromise to Reduce your Tax Bill
An OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or a through a payment agreement.
The IRS looks at the taxpayer’s income and assets to make a determination of the taxpayer’s reasonable collection potential.
OICs are subject to acceptance on legal requirements. They also become a matter of public record.
In the past the IRS strictly applied its rules with respect to taxpayers’ budgets and valuation of assets. As a result, most taxpayers who sought a compromise received a rejection. Below are the statistics for offer acceptances during the past several years:
| Offers |
2007
|
2008
|
2009
|
2010
|
2011
|
| Received by IRS |
46,000
|
44,000
|
52,000
|
57,000
|
59,000
|
| Accepted by IRS |
12, 000
|
11,000
|
11,000
|
14,000
|
20,000
|
Make sure you are eligible
Before the IRS can consider your offer in compromise, you must be current with all filing and payment requirements.
You will not be eligible if you are in an open bankruptcy proceeding.
Submitting your offer in compromise.
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Find this on our website.
Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
$150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a IRS payment option
Your initial payment will vary based on your offer and the payment option you choose:
Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines. You do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Call us today for a free tax consult 1-866-700-1040.
by Fresh Start Tax | Nov 8, 2012 | Expatriate Tax, FBAR, IRS Tax Problem, New Jersey Tax, Offshore Program, Offshore Tax Problems, Tax Lawyer, Tax Problem Help, Tax Relief
FBAR – Tax Attorneys, Lawyers, Former IRS – FBAR Specialists – New York, New Jersey – Civil & Criminal Representation 1-866-700-1040.
Fresh Start Tax LLC is a professional tax firm comprised of Board Certified Tax Attorneys, Tax Lawyer, CPA’s and Former IRS Agents and Managers.
Stop the worry today. We can get you in the system worry free.
We have over 206 years of professional tax experience and over 60 years with the Internal Revenue Service in the local, district and regional offices of the IRS.
We taught Tax Law at IRS as former Instructors. As a result we know all the policies and settlement procedures for all IRS cases.
You may contact us for a no consult 30 minute professional consultation, 1-866-700-1040.
FBAR
Without question you can expect the IRS and the DOJ to be coming down hard on Offshore and Overseas money that belongs in the coffers of the US government.
As IRS Commissioner Doug Shulman stated in his closing remarks as her is stepping down much of the focus in the past has been on FBAR and Expats due to the volumes of revenue it has generated from the enforcement of tax laws.
Here are the remarks from Shulman
“We view offshore tax evasion as an issue of fundamental fairness. Wealthy people who unlawfully hide their money offshore aren’t paying the taxes they owe, while schoolteachers, firefighters and other ordinary citizens who play by the rules are forced to pick up the slack and foot the bill.
Over the past five years, we have significantly increased our resources and focus on offshore tax evasion, and the results have been substantial. We upped the ante in a meaningful way with our work on Swiss financial institutions – where for the first time in history, a bank secrecy jurisdiction turned over thousands of names and account numbers.
As we increased our enforcement efforts and gained significant momentum, we gave taxpayers a chance to come in voluntarily and avoid going to jail. In a typical year, we used to get 100 or so taxpayers who used our voluntary disclosure program. When we first set up our new program in 2009, we thought that figure would rise to maybe 1,000.
So we are very pleased that we’ve had approximately 38,000 voluntary disclosures from individuals who came in under the special programs.
To date, these individuals have paid back taxes and stiff penalties amounting to more than $5.5 billion, and the number continues to grow. We are mining the information we have received and have launched our next wave of investigations on banks, bankers, intermediaries and taxpayers.
Collecting additional revenue for past misdeeds – as important as that may be – is not the only, or even primary, consideration here. It’s perhaps more important that we’re bringing U.S. taxpayers back into the system…back into compliance… so they properly report and pay their taxes for years to come. We have fundamentally changed the risk calculus of taxpayers who are thinking about hiding their money overseas, and we are well on our way to deterring the next generation of taxpayers from using hidden bank accounts to cheat on their taxes.
The inside skinny at the IRS FBAR, Expats
Under Obamacare the IRS is expecting to hire 15,000 new IRS agents. IRS is already launching new software and technologies to move in to the future regarding Offshore monies. Because of the huge success of this program a word to the wise, seek IRS before them seek you.
Each taxpayer has different options. We carefully review each case we receive and carefully plan the best remedy to fully and completely resolve your problem so do not fear cripple you.
We have successfully resolved thousands of taxpayers cases. Call us today to hear the truth and get results.1-866-700-1040.
by Fresh Start Tax | Nov 7, 2012 | IRS Tax Debt, Tax Help, Tax Lawyer, Tax Relief, Tax Settlements
Last year 56,000 offers in compromise/tax debt settlements were filed with the IRS and 27% were accepted. Most of those that were accepted were filed through professional tax firms.
With the advent of the NEW Fresh Start Program, the filing of Tax Debt Settlements will go through the roof. The back log right now is at 7,700.
I am a Former IRS Agent and Teaching Instructor with the IRS.
I have reviewed hundred and hundreds of offers in compromise while working at the IRS. Being in private practice for over 27 years I have seen the results of many failed offers in compromise due to the pure lack of understanding about the program itself.
With the new Fresh Start Program, the IRS is finally trying to help struggling taxpayers. The attitude prior to the new program was “deny the offer.” Because Offers in Compromise or Tax Debt Settlements take so long to work and they get reviewed by supervisors, the typical IRS Agent would reject the offer and any grounds. The taxpayer not knowing better would quit the process. The IRS lost billions of dollars in revenue because it failed to properly facilitate the program.
With the inception of the the new Fresh Start Program hopes are high that the taxpayers burdened by tax debt will be able to finally settle there cases.
As a side note.
Do not submit your offer in compromise unless a tax professional pre-qualifies the offer. You will be wasting your time and lots of money unless you know you got a good chance of acceptance. We will not submit an IRS tax debt Settlement at Fresh Start Tax LLC unless there is an excellent chance of acceptance. 1-866-700-1040.
Much is written about Offers in Compromise, but follow these tax offer tips and you will have a significant chance of the IRS accepting your tax debt settlement
Throughout the course of our representation for hundreds of clients, we find ourselves engaged in conversations with the IRS Agents who run the offer program in Holtsville, New York and other District and Regional Office. We queried many of them.
We would ask, “Why are most offers returned or rejected?”
Here are some points the IRS offer specialist agent made:
A. Most taxpayers simply do not understand the concept of the offer. They submit an offer in compromise or a tax debt settlement simply because the program is available, having no idea of the assets and income requirement. Partial blame is geared towards false advertising to be the cause of these rejections. “Pennies on the dollar” has caused a frenzy of “everybody can settle.” IRS has strict qualification rules.
B. Believe it or not, many individuals only have one spouse sign the offer when both spouses are required to sign. As a result the offer must be reject by the IRS.
C. Many taxpayers do not send in the 20% of the offer required along with the Offer in Compromise. Some offers require the 20% payment down with the OIC. If the IRS technician sees the 20% is not attached, they simply return the Offer in Compromise.
D. A number of taxpayers fill out the form 656 incorrectly. The 656 is a legally binding document. If it is all not filled out correctly, the IRS must return the Offer in Compromise. All required blocks must be appropriately completed.
E. Some do not apply the income and expense formulas correctly. Different offers require different formulas. Some use a 48 multiplier and some use a 60 multiplier. Therefore the offer calculations are incorrect and the offer cannot be processed. This is the most common error.
F. On periodic offers, some individuals only send in one periodic payment and fail to comply after the offer in compromise has been submitted. Periodic offers in compromise require the taxpayers to make continued payments until the offer is work and accepted. The IRS simply rejects the offer at this point.
G. Some individuals have filed for bankruptcy and the IRS cannot work the Offer in Compromise.
H. Some of the taxpayers did add the values of all their assets. The IRS technician stated that many did not include IRA or pension monies because taxpayers thought they were excluded.
I. The 433 OIC is a very complicated form to complete. With that said the Offers were rejected because the Financial statements were inaccurate and did not make sense.
J. Many taxpayers simply did not calculate the correct math for acceptance. Those that submitted the 433B did not explain the carry overs to the 433A properly.
Understanding the process of a IRS Tax Debt Settlement
While your offer is being evaluated:
a. Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
b. A Notice of Federal Tax Lien may be filed;
c. Other collection activities are suspended;
d. The legal assessment and collection period is extended;
e. Make all required payments associated with your offer;
f. You are not required to make payments on an existing installment agreement; and
g. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
All accepted offers are a matter of public record and can be inspected in the Regional Office of the IRS. Appointment can be made to view those accepted cases.
Call us today for a free tax consult. 1-866-700-1040
IRS Tax Debt Settlement -Tax Attorneys, Lawyers – Get your Offer in Compromise Accepted
by Fresh Start Tax | Nov 6, 2012 | California Tax, Offer in Compromise, Representation, Tax Help, Tax Lawyer, Tax Lien, Tax Settlements
Mr. Sullivan is a Former IRS Agent and Teaching Instructor with the Internal Revenue Service.
He not only worked the IRS Tax Debt Settlement Program called the Offer in Compromise he was a Instructor that taught the Program to new IRS agents in the local, district and regional offices of the IRS.
Fresh Start Tax L.L.C. is comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents.
We have over 206 years of total tax experience and over 60 years of direct work experience with the IRS.
Fresh Start Tax L.L.C. Local California Office
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
In days past it was almost impossible to get an offer in compromise through to the IRS. IRS Tax Debt Settlement practice was almost obscure because IRS did not want to work the IRS Settlement Program. Thousands of Offers should have been accepted but due to the stubbornness of the IRS it lost millions of dollars in revenue because it failed to help suffering and struggling taxpayers.
The amount of work that goes into an accepted offer in compromise can be upward to 20 hours. It is far easier for an Agent to reject the offer than go through the task of accepting one. They are reviewed and approved to death.
Most practitioners would not even file Offers or tax settlements. The ones that did for the most part were preying on taxpayers claiming pennies on a dollar. Not all companies were part of this but it was sickening to see taxpayers paying thousands of dollars when they really never had a chance of getting a tax settlement given the financial facts of their cases.
The IRS would fight you on everything and the extent of the detail they wanted was outrageous.
With the Feds needing money and money in a hurry it finally decided to start settling back tax cases in which it would get instant dollars into the system.
The Commissioner and the powers to be came up with real guidelines that would help these struggling taxpayers final get some badly needed tax relief in the form of true pennies on a dollars settlement.
There are about 55,000 offers in compromise filed each and every year with about 25% of those offers be accepted. The average settlement on each case is about 14 cents on a dollar.
The New IRS Fresh Start Program is allowing taxpayers to settle there tax debt.
The Press Release sent out by the IRS called the Fresh Start Program. See modified version below.
In its latest effort to help struggling taxpayers, the Internal Revenue Service announced a series of new steps to help people get a Fresh Start with their tax liabilities and back tax debts.
The goal of the IRS is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
Understand the process the settlement or offer practice.
While your offer or settlement is being evaluated it is important to know what will, take place:
a. Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
b. A Notice of Federal Tax Lien may be filed;
c. Other collection activities are suspended;
d. The legal assessment and collection period is extended;
e. Make all required payments associated with your offer;
f. You are not required to make payments on an existing installment agreement; and
g. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
The New Federal Tax Lien Policy
The IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid the filing of the Federal Tax Liens. this alone is a cause for great joy because the filing of a federal tax lien will crush the credit of a business and or an individual.
The IRS is making fundamental changes to our federal lien system and other collection tools that will help taxpayers and give them a fresh start, “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.”
IRS making important changes to its federal tax lien filing practices.
The changes include:
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.
c. Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
d. Creating easier access to Installment Agreements for more struggling small businesses.
e. Expanding a streamlined Offer in Compromise program to cover more taxpayers.
Call us to see if you qualify for an offer in compromise. Do not file an offer unless you qualify. Free consultations, 1-866-700-1040.
