by Fresh Start Tax | Sep 14, 2012 | IRS Tax Problem, Representation, Tax Help, Tax Lawyer
IRS Financial Statement 433A & 433F – Beware – Documents IRS will require U give them – Former IRS Agents
Call us today for a no cost professional tax consultation. 1-866-700-1040.
Caution should be used before giving IRS any financial information. Unless you know exactly what you are doing you could encounter problems. I am not telling you this to scare you, should you have a simple situation it is thumbs up for resolving the tax situation yourself.
The information must always be accurate and the IRS can use this financial statement to collect back taxes. Also, this information can be used by the IRS to send out a bank levy or wage garnishment.
If any taxpayers owe back taxes to the IRS and cannot immediately set up a payment plan, the IRS requires a Financial Statement, 433A or 433F, IRS will expect that financial statement to be fully documented. You need to be very accurate filling out your financial statement.
Our link to the 433A and 433F http://freshstarttax.com/irs-forms/
For the record, the Service Centers require the 433F and the local IRS offices, the Revenue Officers, only work off the more detailed 433A. I was a former Revenue Officer.
IRS never believes the 433A or the 433F turned in by the taxpayer and will only process and close the case with a fully documented financial statement. Each time you put a amount down on the 433A with the exception of food and clothing, IRS will want to see the proof via a check and a bill.
The following is a checklist of each line item of expenses that the IRS may require.
1.IRS will verify and correct Form W-4. If not enough withholding is being taken out IRS will require a updated w-4 to ensure withholding is being fully taking out.
2.IRS will want at least 3-6 months banking statements to verifying bank deposits. This is used to verify income listed and check for unreported income.
3. IRS will also want to verify all expenses with a check as well as the bill to verify it is a expense of the taxpayers,
4. IRS will want to see your last pay stub,
5. If self employment income is involved the IRS will require or secure proof for at least 6 months of recorded income.
IRS will also request:
a.Invoices, bank statements, accounts receivable, commission statements, etc.
b.IRS will verify compliance with estimated tax payments and/or Federal Tax Deposit (FTD) payments.
Remember IRS cares only about two things, your income and your assets. They could care less about other outstanding liabilities because IRS comes first. If you have debt up to your eyeballs IRS will not allow expense credits for those items.
This is a common cord that must tie together in your financial statement is your income on your tax return, your deposits on your bank statements, your cost of living and the financial statement your are turning in to the IRS.
IRS Agents are trained to sniff out financial statement that simply do not make sense.
If you have unusually events that have happened in your financial life make sure you have the proper documentation to verify your claim.
I have reviewed some 15,000 financial statements over the years and it does not take a second to determine if a financial statement passes the IRS smell test.
If you are not sure about giving a financial statement to the IRS contact our offices today.
Warning.
Make sure you do not turn in a fraudulent statement to the IRS because all statements are signed under penalties of perjury.
Turn in a correct financial statement, it is not worth jail time.
IRS Financial Statement 433A & 433F – Beware – Documents IRS will require U give them – Former IRS Agents
by Fresh Start Tax | Sep 11, 2012 | Tax Lawyer, Tax Problem Help
I am a Sebring resident and have a tax firm that specializes in IRS and the State of Florida Representation, Tax Negotiations, and IRS tax relief.
We can offer various tax solutions for your IRS or State tax problem.
I am a Former IRS agent and my tax firm has over 205 years of professional tax experience.
You may call us for a no cost professional tax consultation for IRS or State Tax Problems. 1-866-700-1040
Tax tips:
1. When dealing with the IRS or the State of Florida you must answer all correspondence. You must react to each letter, if you do not both the State of Florida and the IRS will follow up on enforcement action. Do not bury your head in the sand.
2. Do not be afraid. Most of these situations resolve themselves with little or no life changing events so do not be worried.
3. If you are going in for a Sales Tax Audit or IRS Tax Audit do not go in unrepresented unless your tax records are almost perfect. Each Agent is trying to find some adjustment to make there time worth while. It is best to hire former IRS Agents who know the techniques to get you the best results.
4. If you are going to owe tax dollars make sure you understand there are 3 options available to you to close a current case in the inventory of the State or IRS inventory.
5. Do not be worried or panic. This is only a speed bump in your life.
IRS or State Tax Solutions
The 3 options to resolve outstanding tax debt. They are hardships, settlements or payment agreements. In each situation each government agency will require a detailed financial statement.
To find out more call our office today. 1-866-700-1040.
by Fresh Start Tax | Sep 9, 2012 | FBAR, IRS Penalties, IRS Tax Debt, Tax Lawyer
IRS has fallen in love with FBAR. And why not. 33,000 taxpayers came forward since the dominos fell with UBS and the IRS collected a whopping $5.5 billion in tax, penalties and interest.
IRS will just get tough on FBAR filing. IRS is usually very patient but as programs develop and the word gets out to the public their patience leaves.
But with the advent of UBS and all the press and noise surrounding FBAR it will be tougher and tougher to get penalties and interest abated.
In my own opinion, IRS has been very reasonable with FBAR penalties but the time is coming when taxpayers will have to pay the fiddler on late FBAR filings.
If you are looking to get your penalties and interest abated or removed here are some of the common grounds for abatement:
FBAR and reasonable cause. IRS will consider your:
a. Your compliance history with FBAR and your filing history over the past 7 years,
b. The length of time between your failure to meet your tax obligations and your subsequent compliance, ( did you file as soon as you found out about the issue )
c.Circumstances beyond your control such as health, medical, reasonable business standard,
d. FBAR reasonable cause may be established if you show that you were not aware of specific obligations,
e.Your education level, the higher the education the tough IRS will become,
f.Whether you have previously been subject to the tax for FBAR reporting,
g.Whether you have been penalized before on this same or a similar issue,
h.Whether or not there were recent changes in the tax forms or law that you could not reasonably be expected to know such as the passing of a new law,
i.The level of complexity of a tax or compliance issue,
j. Reliance upon the advice of a professional tax adviser who was informed of the existence of the foreign financial account and do you have written documentation of the event,
k.Evidence that the foreign account ( financial accounts ) was established for a legitimate purpose.
l.Evidence that there was no effort to intentionally conceal or hide the reporting of income or assets or other.
m. Special cause. Each case is based on its own set of facts.
No one single factor will determine reasonable cause and no one case is the same. Each case if based on its own set of facts. Being Former IRS agents we know all the inside information on penalty abatement’s.
Call us today to find out more and see how much we may be able to save you. 1-866-700-1040.
by Fresh Start Tax | Sep 7, 2012 | FBAR, Tax Lawyer
Find IRS before they find you. That is the best free advice I can give any person is should be filing the FBAR report form.
FBAR Program is the new revenue generator of the IRS. 33,000 persons came forward over the last 3 years and this is just the beginning.
Call us today for a no cost professional representation. We can provide affordable tax help, negotiate your tax debt, and settle your case. 1-866-700-1040.
We are comprised of Board Certified Tax Attorneys, CPA’s and Former IRS agents. We have over 206 years of professional tax experience. We have over 60 years of working directly for the IRS.
We are one of the most experienced professional tax firms in dealing with IRS FBAR problems.
We taught Tax Law at the IRS. We know the inside working of the IRS.
This FBAR Program collected over $5 billion in the first 3 years of implementation.
This FBAR Program is here to stay. IRS has just received over $250 million dollars in funding for tax compliance alone and many of those new tax dollars will be spent chasing tax evaders down both local and overseas.
What are FBAR Filing requirements that you need to know:
The filing requirements apply to any “United States person”, which is defined as those who fit into one of the following categories:
1. A Citizen of the United States,
2.Green Card Holders,
3.Foreign person residing in the US for extended periods of time which includes H-1B, L-1, TN and other Visa holders,
4.Domestic Partnerships,
5.Domestic Corporations,
6.Domestic Trusts,
7.Individuals that have signing authority over a non-US account.
FBAR filing requirements also apply to those with direct or indirect control over a foreign or domestic entity.
Foreign Financial Accounts
Foreign “financial accounts” include a wide variety of items, such as:
a.Bank accounts (savings, demand, checking, deposit or any other account maintained b.with a financial institution)
c.Securities or brokerage accounts
d.Mutual funds
e.Debit and Prepaid Credit Cards maintained with a financial institution
f.Certain types of Annuities or pension accounts
g.Retirement Plans
h.Interests in partnerships, trust or other pass-through entities having foreign accounts.
There are certain exceptions to the FBAR reporting requirement:
There are filing exceptions for the following United States persons or foreign financial accounts:
1. Certain foreign financial accounts jointly owned by spouses;
2. United States persons included in a consolidated FBAR;
3. Correspondent/nostro accounts;
4.Foreign financial accounts owned by a governmental entity;
5. Foreign financial accounts owned by an international financial institution;
6.IRA owners and beneficiaries;
7. Participants in and beneficiaries of tax-qualified retirement plans;
8.Certain individuals with signature authority over but no financial interest in a foreign financial account;
9.Trust beneficiaries; and
10.Foreign financial accounts maintained on a United States military banking facility.
Call us today to find out more. Consults are free, 1-866-700-1040.
by Fresh Start Tax | Sep 4, 2012 | Back Taxes, FBAR, Tax Lawyer, Tax Returns
FBAR Filing – Late, Past Due, Unfiled – File & Settle 1-866-700-1040
Do you have a late, past due or unfiled FBAR report you need to file?
Call us today and we can get you back in the system worry free. We can file your back, past due or late FBAR and settle your case with the IRS. 1-866-700-1040.
We are comprised of Tax Attorneys, CPA’s and Former IRS Agents. We know the IRS system inside and out. We have over 60 years of direct IRS work experience in the local, district and regional offices of the IRS. We also taught Tax Law at the IRS.
Late, Past Due, Unfiled FBAR Reports
If you have a late, past due, or unfiled FBAR reports the key is to contact the IRS before they contact you.
As a general rule IRS will not enforce criminal penalties if you contact them before they contact you. The key is letting IRS know you will be filing your tax returns. At this point it only becomes a civil matter.
As a general rule, we contact IRS by filing a power of attorney so you will never speak to the IRS. We handle all the negotiations and settle the case so you pay the lowest amount allowed by law including the abatement of penalties and interest if your case warrants.
Who needs to file FBAR
A person or individual who holds a foreign financial account may have a reporting obligation even though the account produces no taxable income.
How to file
Checking the appropriate block on FBAR- related federal tax return or information return questions (for example, on Schedule B of Form 1040, the “Other Information” section of Form 1041, Schedule B of Form 1065, and Schedule N of Form 1120) and filing the FBAR, satisfies the account holder’s reporting obligation.
FBAR is not filed with,
The FBAR is not filed with the filer’s federal income tax return. The granting, by the IRS, of an extension to file federal income tax returns does not extend the due date for filing an FBAR.
Due Date for FBAR
You may not request an extension for filing the FBAR. The FBAR is an annual report and must be received by the Department of the Treasury in Detroit, MI, at one of the two addresses below, on or before June 30th of the year following the calendar year being reported.
File by mailing the FBAR to:
United States Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
If an express delivery service is required for a timely filed FBAR, address the parcel to:
IRS Enterprise Computing Center
ATTN: CTR Operations Mail room, 4th Floor
985 Michigan Avenue
Detroit, MI 48226
Call us today for a no cost consultation and speak directly to a Tax Attorney or Former IRS agent 1-866-700-1040.
by Fresh Start Tax | Sep 4, 2012 | Florida Sales Tax, State of Florida, Tax Lawyer
We are a professional tax firm located in the State of Florida. We have on staff Tax Attorneys, CPA’s and Former IRS agents who worked in Florida in the local, district and regional offices of the Government.
We have over 206 years of professional tax experience and over 60 years of working directly for the IRS. in the local, district and regional offices of the IRS. We also worked hand in hand with the Department of Revenue, State of Florida.
We taught Tax Law. Call for a no cost tax consult. 1-866-700-1040.
IRS Problem areas and issues in the State of Florida
1. Unfiled tax returns, ( always the biggest problem )
2. Unpaid Payroll Taxes, ( 941, 940 )
3. Unreported Income,
4. FBAR Reporting,
5. IRS Tax Audits, office and field tax audits,
6. Criminal Investigations on non filers and deliberate tax evasion.
7. Specialized market specialization tax audits.
You will find IRS activity in the State of Florida extremely high. It ranks fourth in overall IRS activity. Due to the transient nature of it residents, the IRS has found many taxpayers living in Florida simply do not file tax returns.
When I worked at the IRS we conducted a undercover operation called FLEA BAG. We went undercover in to Flea markets and found that only 20% of vendors even filed tax returns. IRS is currently running similar projects in different industries.
With the new upgraded CADE 2 computer system being loaded with new software we will find much more activity in the area of non-fliers.
The State of Florida, Department of Revenue has thousands and thousands of business not filing and paying their Sales Tax. This has caused a huge problem for the State of Florida.
The State of Florida and the IRS have matching programs with shared agency use and you will find the IRS much more aggressive in non payment of payroll taxes.
IRS has hired many new Revenue Agents and we are finding a sharp rise in IRS tax audits for small and mid size businesses.
If you are undergoing a Florida Sales Tax Audit call us today.
How Are Taxpayers Selected for Audit?
The methods for selecting a business or individual to audit vary from tax to tax. Here are some examples of sources we use to identify a potential audit candidate:
a. Internal Revenue Service information.
b. Information sharing programs with other states and state agencies.
c. Computer-based random selection.
d. Analysis of Florida tax return information.
e. Business publications, periodicals, journals, and directories.
Records needed to a tax audit.
When we notify you of our intent to audit, we will also tell you what records you will need to provide. The types of records may include, but are not limited to:
a.General ledgers and journals
b.Cash receipt and disbursement journals
c.Purchase and sales journals
d.Sales tax exemption or resale certificates
e.Florida tax returns
f.Federal tax returns
g.Depreciation schedules
h.Property records
i.Other documentation to verify amounts entered on tax returns
Call former IRS agents and hear the truth. 1-866-700-1040. We are IRS and State of Florida Sales Tax Issues.
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