by Fresh Start Tax | Jan 20, 2013 | Owe Payroll Taxes
Trust Fund Taxes – Owe, Settle, Appeal – Former IRS Agents 1-866-700-1040
Contact us today for free tax consultation and you will speak directly to Tax Attorneys, CPAs, or former IRS agents, managers and/or instructors.
We have over 206 years of professional tax experience in over 60 years working directly with the Internal Revenue Service and the local, district, and regional office of the IRS.
We have worked hundreds upon hundreds of trust fund cases both as former employees of the IRS, and private practice and with one of the highest-rated tax resolution firm’s, Fresh Start Tax LLC
Because our of our vast experience with the Internal Revenue Service we know all the tax codes, tax policies, and tax settlement procedures to go ahead and get you the results on your particular case.
Free Assessments
When you contact us, we will review the facts of your case and give you a free assessment regarding the outcome of your case.
Fresh Start Program
Under the new fresh start program IRS is now accepting offers in compromise that never before would’ve gone through their settlement program. As a general rule because of the new formulas instituted by Internal Revenue Service with this new fresh start program taxpayers are saving up to 75% more than they have done in the past.
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 requests for additional financial information,
b. If necessary, requests for additional information by phone, not by mail
c. Greater flexibility when considering your ability to pay
The changes to financial analysis add more flexibility to the OIC 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.
To settle a trust fund case you will need to fill out form 433 OIC which you can find on our website and form 656. If you are questioning the tax assessment completely you will have to fill out tax forms 656-L
If the Internal Revenue Service set up a tax assessment against you as being responsible officer under code section 6672 of the Internal Revenue Code, and you wish to file a claim or appeal on that assessment contact us today as we are true experts in the appellate area of trust fund taxes.
Former IRS Appeal Agent on staff.
On our staff is a former IRS appeals agent who started out as a revenue agent and for the next 25 years worked in the appeals function of Internal Revenue Service working hundreds and hundreds of trust fund penalty cases.
Current under Trust Fund Investigation
If you are under current investigation for a trust fund tax penalty IRS is going to be asking you to fill out form 4180 which you can find our website. As a former IRS agent I would caution you to be extremely careful in giving IRS any answers to form 4180 without professional tax advice. there are certain trick questions on that form. If you going to proceed and fill that form out by yourself my advice to you is this:
“If you are not sure of any answer any question is in your best interest to always write unknown.”
Most TFRP cases involve officers of corporations. However, a responsible person may be one or more of the following:
1. an officer or employee of a corporation
2. a member or employee of a partnership
3. a corporate director or shareholder
4. a related controlling corporation
5. Payroll Service Provider (PSP)
How IRS determines who is responsible for the trust fund penalty.
1. Who directed or authorized payments of bills to creditors,
2. Who had the right to open and close bank accounts for the business,
3. Good guarantee or cosign loans for the business,
4. Who signed or could cosign checks,
5. Who authorized payroll, who is authorized to make federal tax deposits.
6. Who filled out payroll tax form 941,
7. Who prepared reviewed or signed or transmitted payroll tax returns to the IRS or to the accountant,
8. Who had the right to hire or fire employees,
9. Who made sure other bills were paid other than the IRS,
1o. If you were to ask the employees of the company who in fact ran the business who would they point to,
11. Who ran day-to-day operations of the business.
You will find most of these questions on form 4180 that every revenue officer is instructed to be in their file before any trust fund case is closed. you can call me today and I can give you much more insight into trust fund cases.
While this is not an all-encompassing list of who is responsible for the trust fund taxes of a company or corporation, this would give the revenue officer out the local office of a good idea to look.
Trust Fund Taxes – Owe, Settle, Appeal – Former IRS Agents
by Fresh Start Tax | Jan 10, 2013 | Owe Payroll Taxes, Representation, Tax Help
Owe IRS Trust Fund Taxes – Let Former IRS Agent Resolve, Settle
Call us today and speak directly to Tax Attorneys, CPAs, or former IRS agents. We are tax specialists in the quick resolution of IRS trust fund taxes. If you owe back trust fund taxes or in need of filing in a Appeal we can help.
All initial consultations are free. 1-866-700-1040.
Trust fund taxes are a special breed of taxes are owed to IRS. They are comprised of unpaid payroll taxes. When IRS collects the trust fund penalty IRS is seeking a payment comprising of the withholding tax and one half of the Social Security tax not paid on 941 payroll tax returns. This usually results in a tax saving about 40%.
There are multiple tax defenses to go ahead and defend the assertion of the trust find taxes or civil penalties levied or imposed by Internal Revenue Service.
Trust Fund Recovery Penalty Assessments
The trust fund recovery penalty, applicable to withheld income and employment (social security and railroad retirement) taxes or collected excise taxes, will be used to facilitate the collection of tax and enhance voluntary compliance.
If a business has failed to collect or pay over income and employment taxes ( 941) , or has failed to pay over collected excise taxes, the trust fund recovery penalty may be asserted against those determined to have been responsible and willful in failing to pay over the tax.
A Key Point
Responsibility and willfulness must both be established.
The withheld income and employment taxes or collected excise taxes will be collected only once, whether from the business, or from one or more of its responsible persons.
Collection of the withheld income and employment taxes or collected excise taxes is achieved when the Service’s right to retain the amount collected is established.
Determination of Responsible Persons for the Trust Fund Taxes.
Tax Responsibility is a matter of status, duty, and authority.
Those persons performing ministerial acts without exercising independent judgment will not be deemed responsible.
In general, non-owner employees of the business entity, who act solely under the dominion and control of others, and who are not in a position to make independent decisions on behalf of the business entity, will not be asserted the trust fund recovery penalty.
How IRS determines who is responsible for the trust fund penalty.
1. Who directed or authorized payments of bills to creditors,
2. Who had the right to open and close bank accounts for the business,
3. Good guarantee or cosign loans for the business,
4. Who signed or could cosign checks,
5. Who authorized payroll, who is authorized to make federal tax deposits.
6. Who filled out payroll tax form 941,
7. Who prepared reviewed or signed or transmitted payroll tax returns to the IRS or to the accountant,
8. Who had the right to hire or fire employees,
9. Who made sure other bills were paid other than the IRS,
10. If you were to ask the employees of the company who in fact ran the business who would they point to,
11. Who ran day-to-day operations of the business.
While this is not an all-encompassing list of who is responsible for the trust fund taxes of a company or corporation, this would give the revenue officer out the local office of a good idea to look.
Non Profit Trust Fund Cases Cases
The trust fund penalty shall not be imposed on unpaid, volunteer members of any board of trustees or directors of an organization referred to in section 501 of the Internal Revenue Code to the extent such members are solely serving in an honorary capacity, do not participate in the day-to-day or financial operations of the organization, and/or do not have knowledge of the failure on which such penalty is imposed.
in order to make accurate determinations the IRS will weigh all relevant issues and should be thoroughly investigated.
Non assertion of the Trust Fund Penalty
An individual will not be recommended for assertion if sufficient information is not available to demonstrate he or she was actively involved in the corporation at the time the liability was not being paid.
This shall not apply if the potentially responsible individual intentionally makes information unavailable to impede the investigation.
IRS Field investigations to determine the trust fund recovery penalty liability will be conducted promptly to enhance access to relevant information and reduce burden to taxpayers.
Absent statute considerations, assertion recommendations normally will be withheld in cases of approved and adhered to business installment agreements and bankruptcy payment plans. To the extent necessary, information will be gathered to support a possible assessment in the event the agreement is defaulted.
Application of Payments in Determining Trust Fund Recovery Penalty Assessments
Effective for assessments where notices of TFRP liability are issued on or after June 19, 2000 and for any undesignated payment made on or after January 1, 2003)
Any payment made on the business account is deemed to represent payment of the non trust fund portion of the tax liability (e.g., employer’s share of FICA) unless designated otherwise by the taxpayer.
The taxpayer, of course, has no right of designation of payments resulting from enforced collection measures.
To the extent partial payments exceed the non trust fund portion of the tax liability, they are deemed to be applied against the trust fund portion of the tax liability (e.g., withheld income tax, employee’s share of FICA, collected excise taxes).
Once the non trust fund and trust fund taxes are paid, the remaining payments will be considered to be applied to assessed fees and collection costs, assessed penalty and interest, and accrued penalty and interest to the date of payment.
Small Business Administration regarding Assertions of the Trust Fund.
When employees of the Small Business Administration perform duties in accordance with the regulations of the agency, the Service will not consider assertion of the liability provided by IRC 6672 or 3505 against those Small Business Administration employees in any past, current or future cases arising out of these duties.
A footnote should be added about the assertion of the trust fund penalties.
The local revenue officers have tremendous power in determining who is and who is not responsible for these trust fund taxes. I would tell anybody working on their own case if you do not like the decision from the local revenue officer to make sure you contact the manager in the local office.
IRS will issue a form 2751 if in fact you are held responsible for the trust fund tax.
You have a 60 day right to appeal that starts from the date of the letter from the Revenue Officer.
Call us today for free tax consultation and we will review your case.
by steve | May 31, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax LLC A Professional Tax Firm “A” Rated by the Better Business Bureau Since 1982
We can get tax levies released immediately.
We are former IRS Agents, Managers and Instructors who taught at the local, district and regional IRS offices.
We have 60 years of direct IRS experience and over 163 years of firm experience.
We are a professional tax firms that has released thousands of tax levies since 1982 and we are “A” rated by the Better Business Bureau.
IRS has the right to levy Alaska’s Permanent Fund Dividend.
Alaska Permanent Fund Dividend (AKPFD) Levy Program
For residents of the State of Alaska, the IRS may levy (take) your Permanent Fund Dividend. This program matches federal tax delinquent accounts against a database of Alaskan residents eligible to receive the dividend. IRS will send you a notice prior to levying the dividend, giving you an opportunity to appeal the proposed levy.
Areas of Tax Practice:
- Immediate IRS Tax Representation
- Offers in Compromise/ IRS Tax Debt Settlement
- Immediate Release of Bank Garnishments or Wage Levies
- IRS Bill/Notice of “Intent to Levy” or Final Notices
- IRS Tax Audits Small and Large Dollar
- Hardships Cases / Unable to Pay
- Payment Plans, Installment Agreements
- Innocent Spouse Relief
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll/ Trust Fund Penalty Cases
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/
