Palm Beach, West Palm Beach + Filing Back Tax Returns, IRS Tax Debt Settlements + Christian Tax Firm + CPA’s, Tax Preparers, Accountants

May 8, 2020
Written by: Fresh Start Tax


We are a Christian Tax Services company. <>< Since 1982, A plus rated by BBB, a local Tax Services Firm.

Fresh Start Tax




Get the very best from a Christian tax firm with experienced tax professionals.

Our former IRS agents have over 100 years of direct IRS work experience.

If you will owe taxes, we can settle your tax debt all at the same time.
We have over 100 years of direct IRS work experience and over 200 years of professional tax experience.



Below, you will find the different tax settlement programs if you will owe back IRS taxes.



2 Corinthians 6:14 American Standard Version (ASV)

14 Be not unequally yoked with unbelievers: for what fellowship have righteousness and iniquity?

We are a referral partner of Crown Financial Ministries.




Tax Filing and Settling Back Taxes


IRS Program settlement options

The first is a hardship or currently non-collectible program. There is good news and bad news about this program. After IRS takes a current documented financial statement, IRS may determine you are not collectible at the current time. IRS will suspend your case for a period of 1 to 3 years and put a freeze on it.

The good news is IRS’s off your back for a couple of years and the bad news is penalties and interest still run on it. Taxpayer should also be aware that the case will come out every couple of years to be reviewed.

The second program is the installment agreement or monthly payment. After IRS takes a current financial statement they will determine how much money they expect from you on a monthly basis. IRS has certain national standards test that they use to determine if the taxpayer will be placed into a payment agreement. You can find the national standards on our site.

The third way to sell your debt is to qualify for an offer in compromise, this is where you can settle your debt for pennies on the dollar. it’s important for taxpayers to understand that not all are eligible for the offer in compromise program.



Filing back tax returns:

Picking a reputable Christian company that prepares your tax return is a very important decision that you will make. It is not just about the tax return.

It is about obtaining solid tax advise, tax planning and financial solutions for the future.

The goal of Fresh Start Tax is to assist our clients in meeting their tax and financial objectives.

We offer a full range of accounting, tax and financial services designed to meet the personal or business needs that you have.

Our preparation, accounting and auditing teams are highly trained and experienced, hands-on problem solvers who hold themselves to an extraordinarily high level of performance and accountability.

You can trust them to have the understanding and the resources to do what’s best for your business.

We can expertly guide you through the accounting and auditing process, as well as keep you informed of all industry changes regarding corporate governance, audit and accounting issues, and financial reporting that may affect your personal or business situations.

Our teams utilize the latest accounting practices and audit methodologies to help you manage risk, stay compliant, and improve overall business performance.


If you need to file back tax returns.

With or without records we can handle any situation you have.
As former IRS Agents, we know everything about back tax filings.

We have a streamline process of filing all of your tax returns, we are experts in reconstruction methods.



How many back tax year are necessary to file???

IRS Policy Statement 5-133, Delinquent Returns—Enforcement of Filing Requirements, provides a general rule that taxpayers must file six years of back tax returns to be in good standing with the IRS.



The policy also states that IRS management would have to approve any deviation from that rule.

Sometimes, IRS managers will require tax returns from even further back than six years, depending on:

• The degree of flagrancy.

• A prior history of noncompliance.

• The impact on future voluntary compliance.

• The existence of income from illegal sources.

• Whether there is minimal or no tax due.

• The IRS’s costs to secure the return versus anticipated tax revenue.



The IRS can require more back tax returns in three common situations:

As a former IRS agent there were certain cases that I found during the investigatory process that I wanted more tax returns in the policy statement allotted for.

These are the most common reasons the IRS requires returns from more than six years back:

1. There’s a large potential and collectable liability:

The IRS may extend the return requirement if the taxpayer’s wage and income information (found on wage and income transcripts) indicates a potentially large tax liability for the older, unfiled years. The most common red flags are Forms 1099-MISC, Miscellaneous Income, property sales, and large wages with no withholding.

2. There are business returns involved and monies can be collected.

The IRS will closely scrutinize business returns, for several reasons:
• Businesses often have unknown activity with potentially large balances owed.
• Businesses aren’t subject to much reporting with information statements.
• The IRS knows that businesses have the largest potential for noncompliance.

3. A revenue officer is on the case and feels something out there.

Delinquent return investigations can involve local field collection personnel (revenue officers), who perform in-depth investigations on non-filing and collection.

Because they often handle business and payroll collection, revenue officers can often require more than six years of back tax returns. But remember, the key factor it must have some collection potential.

For most individual cases when taxpayers don’t have a revenue officer, the IRS usually accepts the past six years of returns to put clients in good standing with the IRS.



The Use of IRS Transcripts

Anytime I get involved in the processing of this policy statement by IRS I pull IRS transcripts which give me a complete account history and all income records from the IRS for the past six years.

Transcripts can be helpful in completing back tax returns: It’s essential to prepare an accurate return that matches IRS records. If your records do not match up with the income shown by the Internal Revenue Service you may wind up with the mail correspondence audit.

Make sure the return reports all items on the transcript.

The Penalty Phase

Years with balances due will have associated penalties:

• Failure-to-file penalty (5% per month, maximum of 25%).

• Failure-to-pay penalty (0.5% per month, maximum of 25%); combined with the failure-to-file penalty, together they can reach a maximum of 47.5%.

• Fraudulent failure-to-file penalties triple the normal failure-to-file penalty,increasing the maximum penalty from 25% to 75%.

The IRS may have filed a return for your client: SRF tax returns

The IRS usually starts this process, called a substitute for return (SFR), about two to three three years after the due date of the return. When your client files a return to replace an SFR, the IRS will scrutinized a little more the replacement return and compare it to information statements on file. Make sure you file accurate tax returns.

 

Palm Beach, West Palm Beach + Filing Back Tax Returns, IRS Tax Debt Settlements + Christian Tax Firm + CPA’s, Tax Preparers, Accountants

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M. Johnson

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