by steve | Jul 31, 2010 | Tax Help, Uncategorized
There is expert Christian tax help available to you in the areas of any IRS problems, unfiled tax returns, back taxes that are still owed and IRS Audits.
Fresh Start Tax is one of the highest rated tax resolution companies in the United States. The principles of Fresh Start Tax have been in the tax resolution business for the past 28 years and have been given highest rated BBB score possible.
All tax resolution is based on biblical principles and our main goal is not only to resolve the tax problem but to wholly restore the individual or the business going through a difficult season of time. Christian financial counseling is also available.
Biblical Principles we will discuss
* Old and new testament perspective
* Render to Caesar the things that are Caesars
* We are not to be bond servants
* What does Jesus say about the matter
Some of the benefits of immediate professional representation:
* You do not have to talk with Internal Revenue Service
* You know your case will be handled and resolved as fast as possible
* You know you are getting the very best deal possible
What are the dangers of self representation:
* Be aware of the far reaching power of IRS
* Be aware of the detailed asset search that the IRS can use
* Be aware that the IRS may not really be closing your case
* Be aware that the IRS is securing information about you to collect the tax in full
Why the IRS will work better with a professional company than you the taxpayer:
* Professionals know what IRS is looking for
* Professionals know exact packaging required
* Professionals know the applicable national standards and adjustments
Hire the very best professional Christian tax company, Fresh Start Tax. Check us out on the web www.freshstarttax.com Skype us at password: freshstarttax
1-866-700-1040 Video conferencing available Psalms 1
by steve | Jun 3, 2010 | Tax Help, Uncategorized
Attorney-Client Privilege
Attorney-Client Privilege is extended to clients of Fresh Start Tax. The law that deals with this issue is as follows:
Extension of Attorney-Client Privilege
The attorney-client privilege is now applicable to communications between taxpayers and individuals authorized to practice before the Service. The privilege is not extended to criminal tax matters or proceedings nor to communications regarding corporate tax shelters. Act § 3411(a) adding I.R.C. § 7525(a)(2). The amendment is effective with regard to communications made on or after, July 22, 1998, the date of enactment. Act § 3411(c).
Should you have any questions that deal with this issue, please feel free to call us at 1.866.700.1040
by steve | May 3, 2010 | Tax Help, Uncategorized
Return Preparer Review Leads to Recommendations For New Requirements of Paid Tax Return Preparers
FS-2010-1, January 2010
What is the Return Preparer Review?
In June 2009, IRS Commissioner Doug Shulman called for a comprehensive review of the paid tax return preparer industry, drawing on all relevant data and input from interested parties. The goal was to produce a comprehensive set of recommendations to better leverage the tax return preparer community, fostering higher compliance with the law by taxpayers and better service to taxpayers through higher standards of conduct by paid return preparers.
The Return Preparer Review is the result of an open, transparent dialogue with all interested parties, including consumer advocates, tax professional groups, federal and state organizations, IRS advisory groups, software vendors, and all types of return preparers, among others. The review incorporates the input from three public meetings and more than 500 public comments.
Based on the results of the Return Preparer Review, the IRS recommends a number of steps that it plans to implement for future filing seasons. These steps will not be in effect for the current 2010 filing season.
What new regulatory requirements will result from the Return Preparer Review?
Registration: Paid tax return preparers currently have no registration requirement with the IRS, but they are required to sign the returns they prepare and provide either their Social Security Number or a Preparer Tax Identification Number (PTIN). The PTIN has been an optional number a preparer can apply for if they prefer not to disclose their SSN.
The IRS intends to require individuals who are required to sign a federal tax return as paid return preparer to register with the IRS and pay a user fee. Also, the IRS plans to make the use of PTINs mandatory instead of optional.
The IRS intends to develop an online registration system for paid return preparers. The IRS plans to issue PTINs to preparers who do not currently have one as part of the online registration process. The IRS also intends for the registration process to apply to those paid preparers who already have a PTIN. These individuals will be reissued their current PTIN when they register.
Registration renewals and user fee payments would be required every three years. Registration and PTIN requirements would not apply to volunteer or other uncompensated preparers.
Competency Testing: Paid tax return preparers who are not attorneys, certified public accountants or enrolled agents will have to take a competency test. Currently any person may prepare a federal tax return for any other person for a fee. There are no minimum competency standards. The IRS plans to require that paid tax return preparers who are not attorneys, certified public accountants, or enrolled agents pass an IRS competency test. It should be noted that certified public accountants, attorneys and enrolled agents already take competency tests. However, in the future the IRS will study tax return accuracy of attorneys and certified public accountants to ensure that this exemption to testing requirements is warranted.
To avoid business interruption for existing preparers and clients, a transition rule would give existing preparers approximately three years to meet the competency testing requirement. There would be two levels of competency examinations for: (1) Wage and non-business Form 1040 series and (2) Wage and Small Business Form 1040 series. The IRS plans to monitor the testing process during the implementation period to study whether additional tests are necessary and feasible. The IRS plans to add a third test on business tax preparation after the initial implementation phase is completed.
The IRS plans to allow preparers who test during the initial three-year implementation period be permitted to sit for the examination as often as the examination is offered until they pass the examination provided the applicable fee is paid for each attempt.
The IRS does not intend to ?grandfather? any tax return preparer from the testing requirement based on return preparation experience. Once testing is available, the IRS plans to require unregistered individuals who want to become preparers to pass the competency test prior to registration and issuance of a PTIN. The IRS recommends that enrolled actuaries and enrolled retirement plan agents be required to pass one of the IRS competency tests if they intend to prepare Form 1040 series returns.
Continuing Education: Paid preparers who are not attorneys, certified public accountants, enrolled agents, enrolled actuaries, or enrolled retirement plan agents would be required to complete 15 hours of continuing education annually. The 15 hours must include three hours of federal tax law updates, two hours of tax ethics, and 10 hours of other federal tax law topics.
The IRS intends to have paid preparers self-certify completion of continuing education requirements during registration renewal. The IRS plans to conduct periodic checks to ensure compliance with the requirements.
While attorneys, certified public accountants, enrolled agents, enrolled actuaries, and enrolled retirement plan agents are not subject to IRS continuing education requirements or self-certification during the registration renewal process, they generally must complete continuing education to retain their professional credentials. If data is collected in the future that identifies a need for educational requirements for these individuals, the IRS will consider expanding the continuing education requirements to them.
Public Database: The IRS will develop a searchable database of tax return preparers that have registered and passed the competency examination. This will allow the public to see whether a preparer has taken appropriate tests and has registered with the IRS.
Compliance Checks: The IRS plans to require all signing paid tax return preparers be subject to verification of personal and business tax compliance every three years.
During the initial three-year implementation period, the IRS plans to conduct the tax compliance checks after registration and prior to the required renewal date. After the three-year phase-in period, the IRS intends to require tax compliance as a condition of registration and PTIN issuance.
For those individuals who are registered and have a PTIN, the IRS intends to refer potential tax compliance violations discovered at renewal to the IRS Office of Professional Responsibility for investigation and possible disciplinary sanctions.
Ethical Standards: The IRS recommends making all signing and non-signing tax return preparers subject to the provisions of Treasury Department Circular 230, which will make them subject to discipline for unethical and unprofessional conduct. The authority granted to those individuals who either do not have professional licenses or and who are not enrolled agents, enrolled actuaries or enrolled retirement plan agents will be limited to preparing tax returns and representing their clients as currently permitted during the examination of any return prepared by that tax return preparer.
How will the IRS monitor and regulate preparers in the near future stemming from new regulatory requirements being phased in?
Enforcement: The IRS will implement a comprehensive enforcement strategy that includes applying significant examination and collection resources to tax return preparer compliance. The IRS will also take steps during the 2010 filing season to increase education and enforcement of return preparers.
Evaluation: The IRS will study how to enhance the effectiveness of traditional enforcement tools and incorporate new non-traditional enforcement tools, such as directed notices and targeted site visits, into the enforcement activities directed at tax return preparers. The IRS will study the impact an enhanced return preparer enforcement strategy has on taxpayer compliance and consider further changes to the IRS enforcement strategy dependent on the outcomes realized. The IRS will increase the coordination among its operating divisions and increase the staffing of the Office of Professional Responsibility to allow for increased investigations of practitioners, including tax return preparer misconduct.
Why is the Return Preparer Review and resulting new regulatory requirements important? Use of paid preparers has grown steadily in recent decades. Today, a majority of U.S.taxpayers rely on a paid preparer to assist them in meeting their federal tax filing obligation. A federal tax return is one of the most important financial documents that many individuals or families deal with in a given year. It is unclear exactly how many paid return preparers there are in the U.S. The IRS estimates the number to be between 900,000 and 1.2 million.
All preparers are subject to some oversight but it varies greatly depending on their professional affiliations and which state they practice in. Many preparers do not have to pass any government or professionally mandated competency requirement before charging to prepare tax returns. Taxpayers need and deserve return preparers who are ethical, fully qualified and able to provide the best possible service. In addition, unethical or incompetent preparers are the most likely to make mistakes or file incorrect returns, adding to non-compliance. Public comments received by the Return Preparer Review overwhelmingly expressed support for increased oversight of paid preparers, particularly those who are not attorneys, certified public accountants or others authorized to practice before the IRS.
When will these recommendations be effective? None of the recommendations are effective for the immediate filing season. Proposed and final regulations are necessary for implementation of many of these recommendations, and further information will be available as these are developed. However, the IRS will immediately increase its education and enforcement presence in the return preparer community this filing season.
by steve | Apr 29, 2010 | Tax Help, Uncategorized
How do you get your Federal Tax Lien Released after the statue of limitation has expired?
Pull a copy of the Federal Tax Lien in the courthouses where the federal tax lien(s) were filed. There may be multiple courthouse where the federal tax liens where filed in cases where you have moved around and have had multiple addresses over the past ten years. If you do not know where the federal tax liens were filed, pull your credit report and you will find the locations by the credit reporting companies. Secure copies of the Federal Tax Liens and send them to Fresh Start Tax, either fax the to us at 954-938-0069 or email them directly to us. There are a various tricks involved to make sure these lien releases get release. We will forward them to IRS Centralized Lien Release unit at 859-669-3805. We will put a signed 8821 form with the release request. IRS will then forward us the actual release of the Federal Tax Lien. We will then send to you an original copy that you will have to file at the courthouse and pay the nominal filing fee. IRS will not send the original to the courthouse because they do not want to pay the filing fee.
Make sure you use a professional company so they can ensure the statue has really expired and this process takes place. You should check with your credit reporting company 30 days later to make sure the Federal Tax lien releases were actual received by the crediting reporting agencies.
Make sure all 3 credit reporting agencies show these releases.
by steve | Apr 27, 2010 | Tax Help, Uncategorized
COBRA Subsidy Eligibility Period Extended to May 31
WASHINGTON ? Workers who lose their jobs during April and May may qualify for a 65-percent subsidy on their COBRA health insurance premiums, according to the Internal Revenue Service. The American Recovery and Reinvestment Act established this subsidy to help workers who lost their jobs as a result of the recession maintain their employer sponsored health insurance.
The Continuing Extension Act of 2010, enacted April 15, reinstated the COBRA subsidy, which had expired on March 31. As a result, workers who are involuntarily terminated from employment between Sept. 1, 2008 and May 31, 2010, may be eligible for a 65-percent subsidy of their COBRA premiums for a period of up to 15 months. In some cases, workers who had their hours reduced and later lose their jobs may also be eligible for the subsidy.
Employers must provide COBRA coverage to eligible individuals who pay 35 percent of the COBRA premium. Employers are reimbursed for the other 65 percent by claiming a credit for the subsidy on their payroll tax returns: Form 941, Employers QUARTERLY Federal Tax Return, Form 944, Employer’s ANNUAL Federal Tax Return, or Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees. Employers must maintain supporting documentation for the claimed credit.
There is much more information about the COBRA subsidy, including questions and answers for employers, and for employees or former employees, on the COBRA pages of IRS.gov.
Some people who are eligible for the COBRA subsidy also qualify for the health coverage tax credit (HCTC) and may want to choose the more generous HCTC benefit, instead. The HCTC pays 80 percent of health insurance premiums for those who qualify. See more at HCTC: Eligibility Requirements and How to Receive the HCTC.
by steve | Apr 27, 2010 | Tax Help, Uncategorized
Coverage Now Available for Children under Age 27
As a result of changes made by the recently enacted Affordable Care Act, health coverage provided for an employee’s children under 27 years of age is now generally tax-free to the employee, effective March 30, 2010.
The Internal Revenue Service announced today that these changes immediately allow employers with cafeteria plans ?? plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits ?? to permit employees to begin making pre-tax contributions to pay for this expanded benefit.
IRS Notice 2010-38 explains these changes and provides further guidance to employers, employees, health insurers and other interested taxpayers.
?These changes give employers a unique opportunity to offer a worthwhile benefit to their employees,? IRS Commissioner Doug Shulman said. We want to make it as easy as possible for employers to quickly implement this change and extend health coverage on a tax-favored basis to older children of their employees.?
This expanded health care tax benefit applies to various workplace and retiree health plans. It also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return.
Employees who have children who will not have reached age 27 by the end of the year are eligible for the new tax benefit from March 30, 2010, forward, if the children are already covered under the employers plan or are added to the employers plan at any time. For this purpose, a child includes a son, daughter, stepchild, adopted child or eligible foster child. This new age 27 standard replaces the lower age limits that applied under prior tax law, as well as the requirement that a child generally qualify as a dependent for tax purposes.
The notice says that employers with cafeteria plans may permit employees to immediately make pre-tax salary reduction contributions to provide coverage for children under age 27, even if the cafeteria plan has not yet been amended to cover these individuals. Plan sponsors then have until the end of 2010 to amend their cafeteria plan language to incorporate this change.
In addition to changing the tax rules as described above, the Affordable Care Act also requires plans that provide dependent coverage of children to continue to make the coverage available for an adult child until the child turns age 26. The extended coverage must be provided not later than plan years beginning on or after Sept. 23, 2010. The favorable tax treatment described in the notice applies to that extended coverage.
