by Fresh Start Tax | Jan 12, 2013 | Tax News
Sooner or later IRS’s catching up on all the tax crooks especially those people who are cheating the system through tax ID theft.
Such was the case of a Georgia woman who was just indicted for stealing the identities to obtain tax refunds.
Is almost hard to believe people try to get away with the stealing of information. Sooner or later the system will catch them IRS has now put many systems in place to track down people who have prayed on the refunds of other people.
This scheme is generally work like this. One person secures the names and Social Security numbers of different individuals another person will prepare the tax returns and yet a third person will go ahead and actually cash the checks. usually in these cases you see a multitude of indictments as well as seeing organize rings now involved in the tax fraud.
Please read below the latest of a Georgia woman caught stealing the identity, and the refunds of several innocent victims.
Georgia Woman Indicted for Stealing Identities to Obtain Tax Refunds
A federal grand jury in Montgomery, Ala., returned a superseding indictment charging Deatrice Smith Williams and Quentin Collick for their roles in a stolen identity refund fraud conspiracy, Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, U.S. Attorney for the Middle District of Alabama George L. Beck Jr. and the Internal Revenue Service (IRS) announced today. The 13 count indictment charges Williams and Collick with conspiracy to file false claims, theft of public funds, wire fraud and aggravated identity theft.
On Aug. 9, 2012, Quentin Collick was indicted for his role in the conspiracy. In November 2012, pursuant to a criminal complaint, Williams was arrested for her role in the conspiracy. The superseding indictment was unsealed today.
According to court documents, Williams worked for a debt collection company in Georgia. As part of her employment, Williams had access to names and social security numbers. She provided several names and Social Security numbers to her son-in-law, Quentin Collick. Collick, and his co-conspirators used those names to file false tax returns from the Middle District of Alabama. Collick and his co-conspirators, in turn, cashed several fraudulent federal refund checks.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Collick and Williams each face maximum potential sentences of 10 years in prison for the conspiracy count, up to 20 years in prison for each wire fraud count, and a mandatory 2-year sentence for the aggravated identity theft counts. Collick also faces up to 10 years in prison for each theft of public funds count.
They are also subject to fines and mandatory restitution if convicted.
If you find yourself in the situation of a tax ID theft is helpful not to go into the IRS office, the IRS office can do you absolutely no good. Your best bet is to go ahead and simply fill out IRS form 10439 and send it off and be prepared to wait anywhere from 180 days to one year for your tax refund.
by Fresh Start Tax | Dec 12, 2012 | Tax News
IRS Fresh Start Program – Fresh Start Tax LLC – 1-866-700-1040
IRS has made some major changes in the way it deals with taxpayer debt, penalty relief, and Installment Agreements.
The Program that deals with the new changes is called the Fresh Start Initiative .
Our firm is called Fresh Start Tax LLC. We can help explain the new guidelines to all taxpayers and how it can effect their individual situation. 1-866-700-1040.
The main areas of change fall into 3 categories:
1. The Offer in Compromise or the Tax Debt Settlement,
2. Penalty Tax Relief,
3. Installment Agreements.
The “Fresh Start” initiative to help struggling taxpayers by taking steps to provide new penalty relief to the unemployed and making Installment Agreements available to more people.
Under the new Fresh Start provisions is a part of a broader effort started at the IRS in 2008, certain taxpayers who have been unemployed for 30 days or longer will be able to avoid failure-to-pay penalties.
The IRS is doubling the dollar threshold for taxpayers eligible for Installment Agreements to help more people qualify for the program.
IRS Penalty Relief
The new penalty relief for the unemployed on failure-to-pay penalties, which are one of the biggest factors a financially distressed taxpayer faces on a tax bill.
To assist those most in need a six-month grace period on failure-to-pay penalties will be made available to certain wage earners and self-employed individuals.
The request for an extension of time to pay will result in relief from the failure to pay penalty for tax year 2011 only if the tax, interest and any other penalties are fully paid by Oct. 15, 2012.
The penalty relief will be available to two categories of taxpayers:
1. Wage earners who have been unemployed at least 30 consecutive days during 2011 or in 2012 up to the April 17 deadline for filing a federal tax return this year.
2. Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2011 due to the economy.
This IRS penalty relief is subject to income limits.
A taxpayers income must not exceed $200,000 if he or she files as married filing jointly or not exceed $100,000 if he or she files as single or head of household.
This penalty relief is also restricted to taxpayers whose calendar year 2011 balance due does not exceed $50,000.
Taxpayers meeting the eligibility criteria will need to complete a new Form 1127A to seek the 2011 penalty relief.
The Failure To Pay Penalty.
The failure to Pay Penalty is generally half of 1 percent per month with an upper limit of 25 percent.
Under this new relief, taxpayers can avoid that penalty until Oct. 15, 2012, which is six months beyond this year’s filing deadline. However, the IRS is still legally required to charge interest on unpaid back taxes and does not have the authority to waive this charge, which is currently 3 percent on an annual basis.
Even with the new penalty relief becoming available the IRS strongly encourages taxpayers to file their returns on time by April 17 or file for an extension.
Failure-to-file penalties applied to unpaid taxes remain in effect and are generally 5 percent per month, also with a 25 percent cap.
Installment Agreements from the IRS
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
Effective immediately, the threshold for using an installment agreement without having to supply the IRS with a financial statement has been raised from $25,000 to $50,000.
This is huge change. The old 433A and 433F are very burdensome to taxpayers as well as practitioners.
Taxpayers who owe up to $50,000 in back taxes will now be able to enter into a streamlined agreement with the IRS that stretches the payment out over a series of months or years.
The maximum term for streamlined installment agreements has also been raised to 72 months from the current 60-month maximum.
Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F). Taxpayers may also pay down their balance due to $50,000 or less to take advantage of this payment option.
An installment agreement is an option for those who cannot pay their entire tax bills by the due date. Penalties are reduced, although interest continues to accrue on the outstanding balance.
In order to qualify for the new expanded streamlined installment agreement, a taxpayer must agree to monthly direct debit payments.
The IRS Offers in Compromise
The IRS recognizes that many taxpayers are still struggling to pay their bills so the agency has been working to put in place more common-sense changes to the OIC program to more closely reflect real-world situations.
For example, the IRS has more flexibility with financial analysis for determining reasonable collection potential for distressed taxpayers.
Generally, 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.
Fresh Start Tax L.L.C. is one of the premier tax resolution firms in the country. We deal with all types of civil cases including individuals, businesses, non-profits, partnerships and corporations.
We have staff that specialize in every facet of IRS Tax Representation.
We know all the IRS tax strategies because of our extensive IRS working backgrounds.
We were Former IRS Certified Tax Instructors that taught IRS Tax Law in the IRS Regional Training Center. Some of our many specialties include the following:
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 FM Monthly Radio Show-Business Weekly
- FBAR and Expatriate Representation
IRS Fresh Start Program – Fresh Start Tax LLC 1-866-700-1040 – IRS Representation
by Fresh Start Tax | Nov 23, 2012 | Tax News
C Notice IRS – Help with IRS C Notice – Former IRS – Fresh Start Tax LLC
The IRS C-Notice.
A IRS C-Notice is sent from the IRS instructing a financial or banking institution to backup withhold on reportable payments, specifically interest, dividends, short-term capital gains, long term capital gains, and redemption’s due to a payee’s under reporting of income. IRS is stating to keep a tight reign of these issues due to many taxpayers owing back taxes.
An IRS C-Notice is placed on an account if individuals consistently under-reports or fails to report interest, dividend income or other income.
The IRS must notify the institution to stop withholding once the discrepancy is resolved.
Per the IRS Code
IRS IRM 5.19.3.1
Overview – Backup Withholding Program “B” and ” C” Programs
There are two separate Backup Withholding (BWH) programs that require payers to withhold at the backup withholding rate from recipients’ (payees’) payment of Form 1099 income.
5.19.3.2
What Are the “B” and “C” BWH Programs?
The “B” BWH program, (Regulation 31.3406 (d)-5(d)), provides notices to payers (a financial institution, business or person) who file information returns (see Forms 1099 below) with incorrect or missing Taxpayer Identification Numbers (TINs).
The notices, CP2100 and CP2100A, advise payers that backup withholding could become necessary if payees (recipients of Forms 1099) fail to certify their TIN.
The CP2100 and CP2100A Notices also list accounts with missing TIN’s on which payers should have been backup withholding under section 3406(a)(1)(A).
Payers with missing TIN accounts should not wait to receive a CP2100 or CP2100A to begin backup withholding. The “B” program includes Forms 1099-B, DIV, INT, MISC, OID, PATR information returns.
The “C” BWH program (Regulation 31.3406 (c)–1) provides notices to payees (recipient of Forms 1099 below) who have under reported their interest or dividend income or failed to file a tax return reporting such income when required.
These notices inform the payee what must be done to prevent BWH. The “C” program includes Forms 1099-DIV, INT, OID, and PATR information returns.
Under reporter-related BWH requires payers to withhold at the backup withholding rate on Form 1099 payments to payees if the payee fails to correctly report these payments on an income tax return. If a payee fails to file a return (non filer) it is considered unreported income and may also be subject to the under reporter related BWH.
C Notice IRS – Help with IRS C Notice – Former IRS – Fresh Start Tax LLC
by Fresh Start Tax | Nov 18, 2012 | Tax News, Tax Problem Help
IRS First b Notice – IRS Tax Help Representation – Former IRS – Fresh Start Tax LLC
Each year financial institutions by law are required to mail out thousands of Form 1099s to customers, the most common of which are often the 1099-INT.
This federal form is issued by payor, including banks and financial institutions which pay interest income greater than $10.00 during the year.
The following information applies to different types of 1099 forms as it relates to the appropriate actions and related penalties regarding filing 1099 forms with improper taxpayer identification number information.
For all bank and financial institutions a initial solicitation for a TIN or a Social Security Number, employee identification number is typically requested, using the Form W-9, when a customer/client opens an account or when a banking or financial transaction happens.
Each year, the IRS issues CP2100 Notices (for more than 250 incorrect Form 1099s) or CP2100A Notices (for fewer than 250 incorrect Form 1099s) informing financial institutions they may be responsible for backup withholding as a result of missing or inaccurate TINs discovered when processing the Form 1099 information returns.
Common and Frequent questions
What is a Taxpayer Identification Number (TIN)?
A TIN is one of the following four numbers.
1. A Social Security Number (SSN)
2. An Employer Identification Number (EIN)
3. An IRS individual taxpayer identification number (ITIN). Aliens who do not have an SSN, and are not eligible to get one should get an ITIN. Form W-7, Application for IRS Individual Taxpayer Identification Number, is used to apply for an ITIN
4. An Adoption Taxpayer Identification Number (ATIN). An ATIN is a temporary tax identification number issued for a child born in the U.S. An ATIN is used as an identifying number is the child is not eligible for an SSN.
When is a TIN considered missing or incorrect?
IRS considers a TIN to be missing if it is not provided.
IRS also consider a TIN to be missing if it has more or less than nine numbers or it has an alpha character as one of the nine numbers.
Incorrect TIN
IRS considers a TIN to be incorrect if it is in the proper format but the name/TIN combination doesn’t match or can’t be found on IRS or SSA files.
How do I know if a TIN on my account is incorrect?
We will send you a CP2100 or a CP2100A Notice and a listing of incorrect name/TINs.
What should I do if a payee refuses or neglects to provide a TIN?
Begin backup withholding immediately on any reportable payments. You should do the required annual solicitation (request) for the TIN.
Continue to Backup Withhold until you receive a TIN.
Can a payee claim he or she is exempt from backup withholding?
Yes. Payees who may be exempt are listed in the Instructions for the Requester of Form W-9. They include tax exempt organizations, government agencies, corporations, and other listed entities.
Is a payee an exempt corporation if it uses the term “Company” or “Co.” in its name?
A payer cannot treat a payee as an exempt organization merely because the business name contains the words “Company” or “Co.” A payer can only treat the payee as exempt if:
The name contains the term insurance company, indemnity company, reinsurance company or assurance company.
What is a “B” Notice?
A “B” Notice is a backup withholding notice.
There are two “B” Notices
1. The First “B” Notice and the Second “B” Notice. You must send the First “B” Notice and a Form W-9 to a payee after you receive the first CP2100/CP2100A Notice with respect to this account for the purpose of soliciting a correct name/TIN combination.
2. The text of the Second “B” Notice is different than that of the First “B” Notice.
It tells the payee to contact IRS or SSA to obtain the correct name/TIN combination. The mailing of the second notice should not include a Form W-9.
You must send the second B Notice after receiving the second CP2100 or CP2100A with respect to this account. The payee must certify the Name/TIN combination after receiving the second “B” Notice.
You do not have to send a “B” Notice more than two times within three calendar years to the same account.
What should I do if a “B” Notice is returned as “undeliverable?”
You must begin backup withholding. However, try to get the correct address for the payee and re mail the notice. If you can’t find the correct address, keep the undelivered notice with your records.
After I receive a CP2100 or CP2100A notice, when do I start and stop backup withholding?
You must backup withhold on all reportable payments to the payee 30 business days after you have received the CP2100 or CP2100a Notice.
You should stop all backup withholding on payments after 30 calendar days after you have received the required certification (Form W-9) form payee or TIN validation form the SSA or the IRS, if it was a second notification.
At your option you may start and stop backup withholding at any time during these 30 day periods.
What are the first and second annual solicitation requirements?
A solicitation is a request for a payee’s correct TIN. You must make the request to satisfy the backup withholding requirements and to avoid a penalty for filing another information return with a missing or an incorrect TIN.
The Payee must furnish certified TIN (first solicitation) on Form W-9 with respect to payments of interest, dividends, and amounts subject to broker reporting. For other payments, the payee may furnish/provide a TIN in any manner.
Does a CP2100 or CP2100A Notice indicate whether it is the first or second notification of an incorrect TIN for a specific account?
No. The backup withholding regulations provide that payers are responsible for tracking the status of the notices they receive.
What is the relationship between the requirement to make an annual solicitation for a payee’s TIN and the requirement to send a “B” Notice?
Sending a “B” Notice to a payee in response to a CP2100A or CP2100 Notice also satisfies the annual solicitation requirement to avoid a penalty for filing another information return with an incorrect TIN.
Why are accounts I corrected still on the listing of missing or incorrect TINs?
Due to processing cut-off points, a listing may or may not reflect your latest corrections. If you know that an account was corrected, do not send a “B” Notice to the payee.
What should I do if a TIN was actually on file but it was left off the Form 1099 or reported incorrectly?
Make any required change to your records and use the correct information on future filings. Do not send a “B” Notice to the payee.
IRS First b Notice – IRS Tax Help Representation – Former IRS – Fresh Start Tax LLC
by Fresh Start Tax | Oct 28, 2012 | Tax News, Tax Problem Help, Tax Relief, Tax Returns
Fresh Start Tax LLC is one of the premier Tax Resolution Specialist Firms in the country.
We are fast, affordable and one of the friendliest tax firms in the business. We build relationships.
Call us for a no cost consultation 1-866-700-1040. You will hear the truth.
We are one of the Highest Rated Tax firms with a A plus rating from the Better Business Bureau. We are without complaint.
Fresh Start Tax LLC are staffed with Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents.
Our former IRS Agents were Managers, Supervisors, Instructors and worked in the Appeal Division in the local, district and regional offices of the IRS.
With 206 years of IRS and State Tax experience we are tax experts.
We are without complaint. We have an A plus rating by the Better Business Bureau.
Our Tax Resolution Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS and State Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught IRS Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers, Supervisors and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A plus”
- Fast, affordable, friendly and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 Net, WAYI FM Monthly Radio Show-Business Weekly
Areas of Professional Tax Practice:
- Same Day IRS & State Tax Representation
- Offers in Compromise / IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Levy Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax and State Tax Audits
- IRS Hardships Cases / Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- All Stated – Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns, Past due
- Tax Return Reconstruction if Tax Records are lost or destroyed
by Fresh Start Tax | Oct 7, 2012 | Tax News
Fresh Start Tax LLC is proud to announce that they have received the Highest Rating by the Better Business Bureau today October 2, 2012.
The A plus rating is the highest score given by the BBB. Fresh Start Tax LLC is without complaint.
Fresh Start Tax L.L.C. is one of the premier tax resolution firms in the country.
We deal with all types of civil cases including individuals, businesses, non-profits, partnerships and corporations.
We have staff that specialize in every facet of IRS Tax Representation.
We know all the IRS tax strategies because of our extensive IRS working backgrounds. We were Former IRS Certified Tax Instructors that taught IRS Tax Law in the IRS Regional Training Center. Some of our many specialties include the following:
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 FM Monthly Radio Show-Business Weekly
