by Fresh Start Tax | Oct 9, 2013 | Back Taxes, Tax Relief
We are a local South Florida tax firm that specializes in AFFORDABLE IRS representation.
If you have not filed your back tax returns in years, we can file all your back tax returns and work out a payment agreement or tax settlement with the Internal Revenue Service.
If you are going under a current economic tax hardship the IRS may be able to place your case into a currently non-collectible status if you qualify.
The process is simple and worry free
I am a former IRS agent in teaching instructor who worked out of the local South Florida offices. Our firm has over 206 years professional tax experience, over 60 years of working directly for the Internal Revenue Service and we have worked right here out of the local South Florida IRS offices as agents, managers and tax instructors.
If you have not filed your back tax returns you are not alone. There are millions upon millions of taxpayers who failed to file their back tax returns but by not doing so taxpayers do themselves harm.
Problems for Non-Filing
1. criminal problems,
2. losing their Social Security and Medicare benefits while others are
3. actually losing money the IRS would be refunding to you because of withholding in tax credits.
The process to get your back tax returns filed with the Internal Revenue Service is very simple and if you’re reading this you’ve already taken the first step to make that happen.
If you need to file back income tax returns but you have lost your tax records, a good tax firm should easily be able to assist you in this process.
As a former IRS Agent, while with the IRS, we were flooded with this request from scared taxpayers just wanting to do the right thing, but not sure on just how to do it.
Here is how the process of filing your back tax returns works.
1. The taxpayer/business/corporation should to the best of their ability reconstruct what they think their tax earnings were for each year. They can do this simply by using a monthly average for each of the years.( both income and expense averages)
As an example, how much was one month of your rent or mortgage, your car expenses, your food, your insurance etc. Arrive at a monthly figure and multiple it by 12. As a general rule your rent or mortgage is usually about 28% -33%monthly expenses.
2. If you have bank statements, what were your total deposits for the year?. That maybe a start of your income.
3. Call the IRS and ask them for an income report record of all third parties that have reported to the IRS. By calling the IRS and asking for income transcript that does not alert the Internal Revenue Service.
They simply have a process to forward you all your income information without learning any agent to pick up the phone and call you. Thousands of requests come in every day so do not expect to be a target of the call.
The IRS keeps on their computer system a list of all third party sources that have reported 1099’s, W-2’s other persons or companies required to report your incomes.
The IRS will send this to you within a couple weeks of your request.
4. Ask yourself, does this tax return make sense? If it does not make sense to you it probably will not make sense to the IRS.
5. The Internal Revenue Service will want to make sure your financial fact patterns tie together.
They want to make sure your bank statements, your tax returns, your financial statement, in your cost-of-living all have a pattern.
Simply by backing up into your cost of living one can simply find out how much income you need to pay those expenses. If your bank statements do not equal your total income found on your tax return there should be a good and reasonable explanation why.
The IRS knows how much it costs to live in each area of the country. There are national averages at can be found on the IRS website.
The tax return must reflect your living style and conditions over the period of time in which you are filing.
It is always best to let a professional tax firm handle this situation. The professional firms know the standards and the methods used by the IRS and if you owe tax, they can probably work out a tax settlement as well.
Not sure if you were suppose to File?
If you are not sure you are required to file a return, refer to Publication 17, Your Federal Income Tax. If you are required to file a return, but you cannot pay all of the tax due on your return, FST can be able to assist you with establishing a payment agreement or tax settlement.
If your tax return was not filed by the due date (including extensions of time to file), you may be subject to the failure to file penalty, unless you have reasonable cause for your failure to file timely. You may be eligible for abatement of penalty relief.
There is no penalty for failure to file if you are due a refund.
But, if you wait to file a return or otherwise claim a refund, you risk losing a refund altogether.
An original return claiming a refund must be filed within 3 years of its due date for a refund to be allowed in most instances.
You can lose possible tax refunds and believe it or not millions of taxpayers leave thousands of dollars on the table.
After the expiration of the three-year window the refund statute prevents the issuance of a refund check and the application of any credits, including overpayment of estimated or withholding taxes, to other tax years that are underpaid. You can never recover this money.
The statute of limitations for the IRS to assess and collect any outstanding balances does not start until a return has been filed. The normal statute of limitation on collection cases is 10 years from the original date of assessment.
There is no statute of limitations for assessing and collecting the tax if no return has been filed. There is also no statute for fraud.
Contact us for a free initial tax consultation and we can help you through this process.
We can file all your back tax returns for the years you have not filed back tax returns and workout tax settlement if you are going to owe money.
Stop the worry and call us today.
Have not filed Back Tax Returns in Years – Call Us – Ft.Lauderdale, Miami Affordable Experts
by Fresh Start Tax | Aug 28, 2013 | Back Taxes, Tax Relief
Back Tax Debt Relief
Last year the IRS filed over 2.6 million and over 900,000 federal tax liens.
The good news, IRS is finally ready to help taxpayers with the Fresh Start Program.
If you are struggling with Back Tax Debt there may be a program just right for you.
We are comprised of tax attorneys, CPAs, and former IRS agents, managers, instructors. We worked out the local South Florida IRS offices for a combined 60 years and have been in practice in South Florida since 1982.
We have an A+ rating by the Better Business Bureau.
Last year the Internal Revenue Service initiated some tax programs that offers taxpayers back tax debt relief. This new program is called the IRS fresh start.
Unlike prior years the Internal Revenue Service is starting to realize rather than punishing taxpayers with levies and liens they can both help the taxpayer and help themselves by relieving some of the pressure put on taxpayers below back tax.
The three new programs initiated by the Internal Revenue Service are helping people with the federal tax liens, the settlement program, and installment agreements.
These changes have really helped struggling taxpayers with their back tax debt.
As a former IRS agents and instructors with the Internal Revenue Service it is a long time coming but IRS is finally starting to work with taxpayers who have back tax debt.
The IRS Fresh Start program makes it easier for taxpayers to pay back taxes and avoid tax liens. Even small business taxpayers may benefit from Fresh Start.
Here are three important features of the Fresh Start program for Back Tax Debt Relief
Federal Tax Liens.
The Fresh Start program increased the amount that taxpayers can owe before the IRS generally will file a Notice of Federal Tax Lien.
That amount is now $10,000. However, in some cases, the IRS may still file a lien notice on amounts less than $10,000.
When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien. Taxpayers must request this in writing using Form 12277, Application for Withdrawal.
Some taxpayers may qualify to have their lien notice withdrawn if they are paying their tax debt through a Direct Debit installment agreement. Taxpayers also need to request this in writing by using Form 12277.
If a taxpayer defaults on the Direct Debit Installment Agreement, the IRS may file a new Notice of Federal Tax Lien and resume collection actions.
Installment Agreements.
The Fresh Start program expanded access to streamlined installment agreements. Now, individual taxpayers who owe up to $50,000 can pay through monthly direct debit payments for up to 72 months (six years).
While the IRS generally will not need a financial statement, they may need some financial information from the taxpayer.
Taxpayers in need of installment agreements for tax debts more than $50,000 or longer than six years still need to provide the IRS with a financial statement. In these cases, the IRS may ask for one of two forms:
Either Collection Information Statement, Form 433-A or Form 433-F.
Offers in Compromise.
An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. Fresh Start expanded and streamlined the OIC program. as a former IRS agent and tax instructor I would caution all individuals trying to file an offer in compromise on their own. They are much more complicated and complex than people think. Your best chance of getting your offer in compromise accepted is through a legitimate tax professional.
The IRS now has more flexibility when analyzing a taxpayer’s ability to pay. This makes the offer program available to a larger group of taxpayers.
Generally, the IRS will accept an offer if it represents the most the agency can expect to collect within a reasonable period of time. The Internal Revenue Service receives approximately 60,000 offers a year and accepts approximately 38% of them.
The IRS will not accept an offer if it believes that the taxpayer can pay the amount owed in full as a lump sum or through a payment agreement. The IRS looks at several factors, including the taxpayer’s income and assets, to make a decision regarding the taxpayer’s ability to pay.
Use the Offer in Compromise Pre-Qualifier tool on IRS.gov to see if you may be eligible for an OIC. You may also find the IRS pre-qualifier tool right on our website.
These are not the all-encompassing programs that are used by the Internal Revenue Service. Contact us today to learn more about your particular case and how we can permanently settle your IRS problem.
Contact us today for a free initial tax consultation and speak to a truly qualified tax professional to help your back tax debt.
Back Tax Debt Relief – Attorneys, Former IRS – Miami, Ft.Lauderdale, Boca, Palm Beaches
by Fresh Start Tax | Jan 10, 2013 | Tax Levy and Wage Garnishments, Tax Relief
Tax Levy Relief & Removal – IRS Tax Relief – TODAY 1-866-700-1040
Call Fresh Start Tax today and start the process to get your tax levy removed. We can remove all bank or wage garnishment levies and settle your case. We can get you Tax Levy Relief and get you fast and affordable levy removal.
Call us at 1-866-700-1040. You can speak directly to tax attorneys, certified public accountants, or former IRS agents.
All initial tax consultations are free.
We have over 206 years of total tax experience, and over 60 years of working directly for the Internal Revenue Service in the local, district, and regional offices of IRS.
Whether the Internal Revenue Service has either levied your bank account or garnish your wages it is very possible to get your levy released within a 24 hour time period.
How the process works:
IRS usually sends out a tax levy because a taxpayer has failed to or neglected to contact IRS regarding a outstanding bill or notice that the Internal Revenue Service has sent to them. By IRM policy, the IRS must follow up and take enforcement action.
The IRS system will automatically generates a bank levy or a wage garnishment levy to the taxpayer who is not responded to prior IRS notices.
The only way the IRS can get the attention of most taxpayers is through the filing of a tax levy. The most common levies are bank account or wage garnishment levies.
Here at Fresh Start Tax we send IRS a power of attorney to the IRS so you will never have to speak to anyone at the Service, we secure a financial statement from our clients, ( a 433A or a 433F ) we prepare all back tax returns that are necessary to file then work out a tax settlement with IRS.
If you have lost or unfiled tax returns that is not a problem. We can simply reconstruct your tax return.
After a review of your current financial statement IRS and Fresh Start Tax LLC will determine a closing method for your case based strictly on your financial statement, the National Standards and your ability to pay.
Closing Methods used by the IRS:
1. IRS Tax Hardship,
2. Installment Agreement or payment Agreement,
3. The filing of a Offer in Compromise.
Call us today and we can go over the various IRS clothing methods of settling your case with IRS. Do not be bullied by the Internal Revenue Service as former IRS agents we know how to fight back we are your best tax defense
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
Tax Levy Relief & Removal – IRS Tax Relief TODAY – Former IRS Agents
by Fresh Start Tax | Dec 29, 2012 | Tax Relief
Tax Debt Relief Company – Tax Relief Specialists – Attorneys, Former IRS Broward, Dade, Palm Beach County – Tax Experts 954-492-0088
Call us for a no cost professional tax consultation and stop the worry today. We have worked and resolved thousands of cases right here in South Florida since 1982. 954-492-0088
We are one of the highest rated tax debt relief firms not only in South Florida but the country. We have a A plus rating by the Better Business Bureau.
We are comprised of Tax Attorneys, Lawyers, CPA’s and Former IRS Agents.
We worked in the local South Florida IRS offices as well as the district and regional offices. We have over 60 years of combined experienced.We worked as managers , instructors and trainers as well as teaching Tax Law at the IRS.
We will go over all the different tax policies and tax procedures to completely and permanently resolve your tax debt.
Relief of IRS Tax Debt
IRS basically resolves tax debt in 3 ways.
After the IRS reviews and verifies your current financial statement and current state of affairs IRS will request all the document to verify the creditability of your information.
After that carefully review the IRS will recommend one of the three following tax relief programs:
1. Apply for a Tax Hardship Status,
2. Start making payments to the IRS via a installment plan,
3. Filing of an Offer in Compromise.
The Detailed information of a Offer in Compromise
An offer in compromise is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
IRS will not accept an Offer unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential. The RCP is usually based on Assets and monthly income.
The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, IRA’s, Pension Plans and other property that has equity.
In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses per National Standards Charts.
The IRS may accept an OIC based on three grounds.
1. Acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed.
2. Acceptance is permitted if there is doubt that the amount owed is collectible. This means that doubt exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3. Acceptance is permitted based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Different types of payment to the IRS for tax debt settlements – Offers
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments. The tax law provides rules for “lump sum offers” and “periodic payment offers” submitted on or after July 16, 2006.
A lump sum offer is defined as an offer payable in 5 or fewer installments. If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment to the IRS is required in addition to the $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance.
The 20 percent amount will be applied to the your tax liability.
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more installments. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee.
Non- Refundable
This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer.
While you are in Offer status
While the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. These amounts are also nonrefundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Tax Debt Relief Company – Tax Relief Specialists – Attorneys, Former IRS – Broward, Dade, Palm Beach County – Tax Experts
by Fresh Start Tax | Dec 8, 2012 | New Jersey Tax, Tax Help, Tax Relief
Tax Relief Help – Settle, Reduce IRS Debt – Tax Attorneys, Former IRS
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents.
We offer a no cost consult and review your case and explain your options before taking any fee.
We are affordable and friendly. 1-866-700-1040.
We have a combined 205 years of professional tax experience and over 60 years of direct experience at the IRS.
We as Former IRS agents taught the Tax Settlement Program at the IRS called the Offer in Compromise.
The Offer in Compromise is the only way to settle or reduce your tax debt with the IRS.
The system is a very precise one. IRS will ask for very detailed information regarding your financial life. The IRS spends upwards of 20 hours working a Offer in Compromise .
As a Former Agent who use to work offers I would recommend you hire a professional tax firm to prepare, file and defend the offer. As general rule the IRS will look to deny your offer because of the amount of work it takes to accept the offer.
You should always have your offer qualified before the submission of a offer. I have reviewed countless offers in my life and by having the right professional can make this process seamless.
At Fresh Start Tax LLC we qualify all offers before sent to IRS. Be careful not to be ripped off by companies claiming pennies on a dollar.
Current Fresh Start Program of the IRS
Under the current Fresh Start initiative the IRS has incorporated its Streamlined Offer in Compromise process into the overall investigation of offers and has added flexibility to the financial analysis used in evaluating offers.
The Streamlined Offer in Compromise process includes:
a. Fewer IRS requests for additional financial information,
b. If necessary requests for additional information by phone not by mail,
c. Much greater flexibility when considering your ability to pay.
The changes to financial analysis add more flexibility to the OIC or Tax Debt Settlements process including:
1. Greater flexibility in determining the equity in assets
2. Greater flexibility in determining the allowable living expenses
3. Reducing the amount of future income included in the offer
4.Decreased time frame to complete the OIC payment process to two years
Do your homework before hiring a Professional Tax Firm. Make sure they have on staff Board Certified Tax Attorneys, Lawyers, CPAs, Former IRS Agents and Managers.
Also, check the following to ensure the creditability and history of the Tax Firm.
1. Better Business Bureau – www.bbb.org/us/Find-Business-Reviews
2. Complaints.com – www.complaintsboard.com
3. Rip Off Report – http://www.ripoffreport.com/
Tax Relief Help – Settle, Reduce IRS Debt – Tax Attorneys, Lawyers Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
by Fresh Start Tax | Dec 7, 2012 | IRS Tax Problem, Tax Lawyer, Tax Relief
Tax Lawyer, Former IRS – IRS Problems & Tax Resolution – Broward, Dade, Palm Beach County
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents, Managers and Instructors.
Free Tax Consults. Speak directly to a Tax Lawyer, CPA or Former IRS Agent that can resolve your tax issues and tax problems. 1-866-700-1040.
We have successfully served hundreds of client since 1982.
We taught Tax Law at the IRS as Former Agents.
We have over 205 years of total IRS and State Representation and over 60 years of direct experience working in the various South Florida IRS offices. We also instructed new IRS agents in the Atlanta Service Centers.
We have been in private practice in South Florida since 1982 and we are one of this areas most trusted and experienced professional tax firms.
One of the hot new programs of the IRS for tax settlements is called the Fresh Start Program which is saving thousands of dollars for taxpayers owing money to the IRS. It is also helping taxpayers in the areas of penalty relief, installment payments and offers in compromise. Below is the latest from the IRS.
IRS Penalty Tax Relief
The IRS new penalty relief is 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 IRS 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 penalty relief is subject to income limits.
A taxpayer’s 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 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.
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.
Installment Agreements or Payment Agreements
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
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 a huge reduction in taxpayer burden to the IRS.
A taxpayer 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. Yes you now have over 72 months to back back the IRS plus interest, that never goes away.
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 can 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 Offer in Compromise or the Tax Debt Settlement
Under the first round of Fresh Start, the IRS expanded a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
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.
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.
To see if you qualify for any of these new programs call us today for a no cost professional tax consult.
Tax Lawyer, Former IRS – IRS Problems & Tax Resolution – Broward, Dade, Palm Beach County – SOUTH FLORIDA
