by steve | Jun 28, 2010 | Tax News
Electronic Federal Tax Payment System Pay your taxes on line, any time or place
A very secure Way to Pay All Your Federal Taxes
EFTPS, the Electronic Federal Tax Payment System, is a tax payment system provided free by the U.S. Department of Treasury. Pay federal taxes electronically via the Internet or phone 24/7. Visit EFTPS to enroll.
Businesses and Individuals can pay all their federal taxes using EFTPS. Individuals can pay their quarterly 1040ES estimated taxes electronically using EFTPS, and they can make payments weekly, monthly, or quarterly. Both business and individual payments can be scheduled in advance.
More than 9.5 million taxpayers are currently enrolled in the system. Since EFTPS started in 1996, there have been over 901 million electronic payments made, totaling over $20 trillion!
EFTPS is …
* Secure
* Fast
* Accurate
* Convenient
* Easy to Use
* Helps Reduce Penalties and saves time
A Secure Government Web Site
EFTPS via the Internet is a secure government web site that uses the highest level of security available. Every user must have a secure Internet browser with 128-bit encryption in order to access the site. To log on to the system, an enrolled user must be authenticated with three pieces of unique information known only to the user: Taxpayer Identification Number (EIN or SSN), EFTPS Personal Identification Number (PIN) and an Internet Password. The combination of these three pieces of identification adds to the security of the site and the privacy of taxpayer data.
Convenience at Your Fingertips from Uncle Sam
EFTPS offers you the convenience and flexibility of making your tax payments via the Internet or phone. By 8:00 p.m.(ET) at least one calendar day in advance of the due date, you access EFTPS directly to report your tax information. You will instruct EFTPS to move the funds from your account to the Treasury’s account for payment of your federal taxes. Funds will not move from your account until the date you indicate. You receive an immediate acknowledgment of your payment instructions, and your bank statement will confirm the payment was made.
You can initiate your IRS tax payment 24 hours a day, seven days a week. As an added convenience, EFTPS allows taxpayers to schedule tax payments in advance. Businesses can schedule payments up to 120 days in advance of their tax due date. Individuals can schedule payments up to 365 days in advance of their tax due date. EFTPS will automatically make your payments for you on the due date you indicate. Scheduled payments can be changed or canceled up to 2 business days in advance of the scheduled payment date.
You can use EFTPS to make all your federal tax payments, including income, employment, estimated and excise taxes.
Should you have any questions about the IRS program, call us a Fresh Start Tax 1-866-700-1040
by steve | Jun 25, 2010 | Tax News
Historical Documents relating to Alphonse (Al) Capone, Chicago
Provided by the Freedom of Information Act
Note: All Federal tax records are confidential by law. The availability of historical records is highly unusual. However, the records of the criminal investigation of Al Capone below are of historical significance and of interest to the public. Therefore, they are being made available under the Freedom of Information Act (FOIA). The IRS is committed to its FOIA obligations and to an open government by making information available as authorized by law. No other IRS records meet the unique set of circumstances that make the Capone records publicly available.
In 1931, the Internal Revenue Service. Intelligence Unit completed an investigation of Alphonse Capone which led to his conviction for tax evasion for which he served 11 years in prison. A recent Freedom of Information Act Request for a copy of Special Agent Frank Wilson?s report to Elmer Irey about the Capone investigation led to a review of the records in light of the confidentiality provisions of Internal Revenue Code Section 6103. The review concluded that this information could be made available to the public ? principally because Capone never filed a tax return.
The following are copies of reports and letters from the actual file which summarize the events and activities of the three year investigation of Al Capone.
* Letter dated July 8, 1931, from W.C. Hodgins, Jacque L. Westrich, and H.N. Clagett, all Internal Revenue Agents, to the Internal Revenue Agent in Charge, Chicago, Illinois, in re Alphonse Capone, 7244 Prairie Avenue, Chicago, Illinois.
* Summary Report dated December 21, 1933, prepared by Special Agent Frank J. Wilson at the request of the Chief, Intelligence Unit, Bureau of Internal Revenue, Washington, D.C., in re Alphonse Capone, Lexington Hotel, 2300 Michigan Boulevard, Chicago, Illinois.
* Letter dated March 27, 1931, from Special Agent Frank J. Wilson to the Chief, Intelligence Unit, Bureau of Internal Revenue, Washington, D.C, providing an update on the status of the “Capone investigation.”
* Letter dated April 8, 1931, from Special Agent Frank J. Wilson to the Chief, Intelligence Unit, Bureau of Internal Revenue, Washington, D.C, providing an update on the status of the “Capone investigation.”
* Excerpt referencing Al Capone from “A Narrative Briefly Descriptive of the Period 1919 to 1936.” This was a report prepared on the organization, functions and activities during that time period by Elmer Irey, Chief, Intelligence Unit, for the IRS Commissioner, Bureau of Internal Revenue, Guy T. Helvering.
Go to the IRS Link of the Electronic Reading Reading Room to find the PDFs on this case http://www.irs.gov/foia/article/0,,id=179352,00.html
by steve | Jun 23, 2010 | Tax News
How to Interpret Criminal Investigation Data
Since actions on a specific investigation may cross fiscal years, the data shown in cases initiated may not always represent the same universe of cases shown in other actions within the same fiscal year.
FY 2009 FY 2008 FY 2007
Investigations Initiated
416 410 516
Prosecution Recommendations
250 326 300
Indictments/Information
228 274 266
Sentenced
240 249 278
Incarceration Rate*
85.8% 80.3% 80.6%
Avg. Months to Serve
33 44 38
*Incarceration includes confinement to federal prison, halfway house, home detention, or some combination thereof.
Data Source: Criminal Investigation Management Information System.
THE IDEA HERE, HIRE A COMPANY THAT DOES NOT GET YOU IN THIS SITUATION. CALL FRESH START TAX 1-866-700-1040
by steve | Jun 22, 2010 | IRS Tax Advice, Tax News
We run across so many taxpayers that want to come clean and they just do not know what to do. Some taxpayers have not filed for 20 years, some never. While each situation is completely different, Nina Olsen, the IRS Taxpayers Advocate
explains the next steps process on her comments from Marketplace March 28th, 2010
Her comments:
NINA OLSON:” The IRS has a policy where if the taxpayer comes in voluntarily, and we have not found that tax payer first — we really ask the taxpayer to go back and file six years. Then, the IRS is able to provide — not necessarily all six years worth of data, but any time there’s a W-2 or 1099 going back about five years — we can provide that information.
So, six years — not the full 20. And the IRS may already have the info on file. Olson also said if they hadn’t been caught by now, it’s probably because the government actually owed them for some of those years.
And if it turns out he’s on the hook, the IRS has payment plans to help ease the pain a little.”
For clients of Fresh Start Tax, the first thing we do is send a power of attorney in on all our clients.We deal with the IRS not our clients. We request the last 6 six years of income records from the IRS on the practitioners hot line services. The IRS has on file all income reports and they are readily available for our office.We request any records of income and expenses that the taxpayer may have in their possession. We discuss each years tax return with the client and file the tax return. We make sure the tax returns make sense that is the cost of living, the bank statements , a financial statement and the tax return have a common cord of sensibility.
The last part of the process is to find out if there is a tax due, how will it be paid in full. Many times we file offers in compromise and settle the debt for the clients. Fresh Start Tax and its staff has been preparing tax returns for taxpayer like this well over 27 years. We can help you today. 1-866-700-1040
by steve | Jun 20, 2010 | Tax News
Affordable Care Act Provides Expanded Tax Benefit to Health Professionals Working in Undeserved Areas
As part of a larger Administration announcement on efforts to strengthen the health care workforce, the Internal Revenue Service today announced that under the Affordable Care Act health care professionals who received student loan relief under state programs that reward those who work in undeserved communities may qualify for refunds on their 2009 federal income tax returns as well as an annual tax cut going forward.
?Doctors and nurses who choose to practice in undeserved areas make a great contribution to their local communities,? Commissioner Doug Shulman said. ?By expanding the tax exclusion for student loan forgiveness, the Affordable Care Act provides an even greater incentive to practice medicine in areas that need it most.?
The Affordable Care Act included a change in the law, effective in 2009, that expands a tax exclusion for amounts received by health professionals under loan repayment and forgiveness programs. Prior to the new law, only amounts received under the National Health Service Corps Loan Repayment Program or certain state loan repayment programs eligible for funding under the Public Health Service Act qualified for a tax exclusion.
The Affordable Care Act expands this tax exclusion to include any state loan repayment or loan forgiveness programs intended to increase the availability of health care services in underserved areas or health professional shortage areas and makes this exclusion retroactive to the 2009 tax year.
Health care professionals participating in these programs who have reported income from repaid or forgiven loan amounts on their 2009 returns, possibly after receiving a Form W-2, Wage and Tax Statement, or Form 1099, may be due refunds. Those who believe they qualify for this relief may want to consult their state loan program offices to determine whether the program is covered by the new law.
Health care professionals who have not yet filed for 2009 need not report eligible loan repayment or forgiveness amounts when they file. Those who have already filed may exclude eligible amounts by filing Form 1040X, Amended U.S. Individual Income Tax Return. This form can be downloaded from this website or obtained by calling the IRS toll-free at 1-800-TAX-FORM (1-800-829-3676). Individuals filing Form 1040X to claim this exclusion should write ?Excluded student loan amount under 2010 Health Care Act? in the Explanation of Changes box.
Health care professionals may request an employer or other issuer to provide a Form W-2c, Corrected Wage and Tax Statement, or 1099 and may attach the corrected form to the Form 1040X. However, the Form 1040X may also be filed without attaching a corrected form.
An individual whose employer withheld and paid taxes under the Federal Insurance Contributions Act (FICA) on payments covered under the new exclusion may request that the employer seek a refund of withheld FICA on the employee?s behalf. And because employers also pay a portion of the FICA tax, the employer also may also be entitled to a refund.
To obtain a refund, an employer should file a separate Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund, for each Form 941, Employer’s Quarterly Federal Tax Return, which needs to be corrected. An employer filing a Form 941-X is also required to file a Form W-2c for each employee who benefits from the exclusion.
This blog is taken from the IRS professional site.
by steve | Jun 18, 2010 | IRS Tax Advice, Tax News
IRS and the Effective Tax Administration Offers in Compromise
General Overview Effective Tax Administration Offers in Compromise
1.
This IRS section provides guidance for IRS offer examiners in considering effective tax administration Offer in Compromise requests.It is a very little used Offer in Compromise.
2.
Offer in Compromise, Form 656, and Form 656?A, Additional Basis for Compromise, should be completed by taxpayers requesting consideration of an offer to compromise based on effective tax administration.( ETA)
3. This is an offer in compromise is rarely used but a very effective tool to settle cases.
Considering the Effective Tax Administration Issue
1.
If there are no grounds for compromise under the doubt as to collectibility or doubt as to liability provisions, a compromise may be entered into to promote effective tax administration when compromise of he liability will not undermine compliance with the tax laws, and:
1.
Collection of the full liability will create economic hardship within the meaning of Treasury Regulation section 301.6343?1; or,
2.
Regardless of the taxpayer’s financial circumstances, exceptional circumstances exist such that collection of the full liability will be detrimental to voluntary compliance.
2.
Factors supporting a determination that compromise would not undermine compliance with the tax laws include:
1.
Taxpayer does not have a history of noncompliance with the filing and payment requirements of the Internal Revenue Code
2.
Taxpayer has not taken deliberate actions to avoid the payment of taxes; and,
3.
Taxpayer has not encouraged others to refuse to comply with the tax laws.
These factors should be considered but no minimum compliance requirement exists.
3.
Factors supporting a determination of economic hardship include:
1.
Taxpayer has a serious illness that renders the taxpayer incapable of earning a living and it is reasonably foreseeable that taxpayer’s financial resources will be exhausted providing for care and support during the course of the illness;
2.
Although taxpayer has certain assets, liquidation of those assets to pay outstanding liabilities would render the taxpayer unable to meet basic living expenses;
3.
Although taxpayer has certain assets, the taxpayer is unable to borrow against equity in those assets and disposition by seizure/sale of the assets would have sufficient adverse consequences such that enforced collection is unlikely.
4.
The following examples illustrate cases in which collection of the full liability will create economic hardship and could qualify for Effective Tax Administration
1.
Taxpayer is disabled and lives on a fixed income that will not, after allowance of adequate basic living expenses, permit full payment of his tax liability under an installment agreement. Taxpayer also owns a modest house that has been especially equipped to accommodate his disability. Taxpayer’s equity in the house is sufficient to permit payment of the liability he owes. However, because of his disability and limited earning potential, taxpayer is unable to obtain a mortgage or otherwise borrow against this equity. In addition, because the taxpayer’s home has been specially equipped to accommodate his disability, forced sale of the taxpayer’s residence would create severe adverse consequences for the taxpayer, making such a sale unlikely. Taxpayer’s overall compliance history does not weigh against compromise.
2.
Taxpayer has assets sufficient to satisfy the tax liability. Taxpayer provides full time care and assistance to her dependent child, who has a serious long-term illness. It is expected that the taxpayer will need to use the equity in her assets to provide for adequate basic living expenses and medical care for her child. Taxpayer’s overall compliance history does not weigh against compromise.
3.
Taxpayer is retired and his only income is from a pension. The taxpayer’s only asset is a retirement account, and the funds in the account are sufficient to satisfy the tax liability. Liquidation of the retirement
4. Each case is determined on its own merit and no two cases are alike.
The collection division of the Internal Revenue Service handles these cases
1.
Collection has jurisdiction over offers based on Effective Tax Administration. Collection will retain offers based on economic hardship, and Detriment to Voluntary Compliance offers will generally be forwarded to Examination for consideration.
2. 90% of all these Offer in compromise are worked by the Collection Division.
There are so many cases out there right now that qualify for Effective Tax Administration that the American public has know idea their case can be settled for cheap.It should also be noted there are no guidelines for Effective Tax Administration , just judgment involved in the settling of these Offers in Compromise. A true hardship must be documented but these cases do go through and get accepted.
If you have a case the qualifies, call Fresh Start Tax today 1-866-700-1040
