by Fresh Start Tax | May 22, 2014 | Tax Help
We are comprised of tax attorneys, tax lawyers, certified public accountant, and former IRS agents, managers and tax instructors.
We handle all IRS tax issues, matters and problems.
We have over 60 years of direct IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service.
We can handle anything from a simple IRS notice her letter to going to tax court.
We are affordable tax firm that can help you in any IRS matter
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
All initial tax consultations are free.
You can speak directly to an IRS tax expert.
Fresh start tax puts out a series of blogs regarding different tax issues.
This blog , Employment Tax. Lucky us!!
Federal Employment Tax in Puerto Rico
Employers in Puerto Rico are subject to the taxes imposed by the Federal Insurance Contribution Act (FICA) (Social Security and Medicare taxes) and the Federal Unemployment Tax Act (FUTA).
An employer is a person or organization for whom a worker performs services as an employee.
As an employer you are required to withhold, report and pay employment taxes on wages paid.
To file the various employment tax returns, you need an employer identification number (EIN). If you do not have an EIN, you may apply for one online at the IRS.gov website link, Apply for an Employer Identification Number (EIN) Online.
You may also apply for an EIN by fax or mail, use Form SS-4PR (PDF). (Use only one method for each entity so you do not receive more than one EIN for an entity.) For more information about EINs, see Topic 755.
FICA taxes are used to finance the Social Security and Medicare systems. FICA taxes consist of two components:
- the social security tax and the Medicare tax. You must withhold the employee portion of FICA taxes from your employees’ wages and contribute the employer portion of FICA tax.
The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.
Beginning January 1, 2013, Additional Medicare Tax applies to an individual’s Medicare wages that exceed a threshold amount based on the taxpayer’s filing status. Employers are responsible for withholding the 0.9% Additional Medicare Tax on an individual’s wages paid in excess of $200,000 in a calendar year, without regard to filing status.
An employer is required to begin withholding Additional Medicare Tax in the pay period in which it pays wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year.
There is no employer match for Additional Medicare Tax.
The forms used by employers in Puerto Rico to report the social security and Medicare taxes are: Form 941-PR (PDF), Form 943-PR (PDF), Form 944 (PDF) or Form 944(SP) (PDF), and Anexo H-PR (Formulario 1040-PR) (PDF) for household employers.
In addition, the forms used by employers in Puerto Rico to make corrections to employment taxes are: Form 941-X (PR) (PDF), Form 943-X (PR) (PDF), Form 944-X (PDF), Form 944-X (SP) (PDF), Form 944-X (PR) (PDF), and amended Anexo H-PR (Formulario 1040-PR) (PDF).
Employers who filed Form 944-PR prior to tax year 2012 will continue to file annually on Form 944 (or Form 944(SP), Declaración Federal ANUAL de Impuestos del Patrono o Empleador, the Spanish language equivalent of Form 944). Employers may request to file Form 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono, instead of Form 944.
If you are not an agricultural employer and all of your employees are bona fide residents of Puerto Rico, file Form 941-PR to report all wages paid, tips your employees reported to you, and other compensation, and social security and Medicare taxes.
Form 941-PR is filed quarterly and is due the last day of the month following the end of the quarter. For example, for wages you paid January through March (the first quarter of the year) Form 941-PR is due April 30.
If the due date for filing a return falls on a Saturday, Sunday or legal holiday, you may file the return on the next business day.
The term “legal holiday” means any legal holiday in the District of Columbia. For a list of legal holidays, see Publication 15, (Circular E), Employer’s Tax Guide, or visit IRS.gov and enter the words “legal holidays” in the search box.
If you are not an agricultural employer, you may be eligible to file annual Form 944 (or Form 944(SP), the Spanish language equivalent of Form 944). The Form 944 is filed annually and is due by January 31 after the end of the calendar year.
Employers that have an estimated employment tax liability of $1,000 or less for the entire calendar year are eligible to file an annual Form 944.
Employers are not permitted to file Form 944 unless they are notified by the IRS that they qualify to file this form. Employers who may be eligible to file Form 944, because their estimated annual employment tax liability is $1,000 or less, have to contact the IRS to elect to file annually (Form 944).
Employers who are required to file Form 944 and want to file Forms 941-PR instead, must notify the IRS they are electing to file quarterly Forms 941-PR and opting out of filing Form 944. For further information, see Revenue Procedure 2009-51 and the Form 944 Instructions (PDF).
Employers notified to file Form 944, whose businesses grow during the year and exceed the $1,000 eligibility threshold must still file Form 944 for the year.
Employers who exceed the eligibility threshold will be notified by the IRS that their filing requirement has been changed to Form 941-PR for a particular year.
Most employers are required to deposit their FICA taxes before filing Form 941-PR. If you are filing Form 944, you may be able to pay your FICA taxes with your return. For additional information about the Form 941-PR (PDF), refer to Topic 758, in English, or see the Form 941-PR Instructions (PDF) in Spanish.
For more information about the Form 944 (PDF), refer to Topic 758 or see the Form 944 Instructions (PDF) in English. For information about the rules to make deposits, refer to Topic 757, in English.
If you have deposited all your tax on time, you have 10 additional days to file.
Household Employees
If you pay a household employee cash wages, you may be required to withhold and pay FICA taxes on all wages you pay to that employee. To see if you are required to withhold and pay these taxes, see Publication 926 (PDF), Household Employer’s Tax Guide, in English. File Anexo H-PR (Formulario 1040-PR) (PDF) to report and pay social security and Medicare taxes corresponding to the employer and the employee for all household employees.
Household employees include housekeepers, maids, babysitters, gardeners, and others who work in or around your residence as your employee. Repairmen, plumbers, contractors, and other business people who are self-employed and own their equipment and control how the work is performed, normally are not considered household employees.
Agricultural Employees
If you are an agricultural employer in Puerto Rico, you must file Form 943-PR (PDF) to report the employer’s and the employee’s share of the FICA taxes for agricultural employees.
To see if you are required to withhold and pay FICA taxes on your agricultural employees, refer to Publication 51, (Circular A), Agricultural Employer’s Tax Guide, in English. Form 943-PR is filed annually and is due by January 31 after the end of the calendar year.
Most employers are required to deposit both the employer and employee portions of FICA taxes before the Form 943-PR is filed.
Publication 15 in English and Publication 179 (PDF) in Spanish, explain the requirements for deposits.
Federal Unemployment Taxes (FUTA)
If you are an employer in Puerto Rico, you might have to file a Federal Unemployment Tax Return. To see if you are required to pay FUTA taxes, refer to Publication 51 if you are an agricultural employer or Publication 926 (PDF) if you are a household employer.
All other employers should refer to Publication 15 or Publication 179 (Spanish version). With the exception of those who use Anexo H-PR (Formulario 1040-PR) for household employees, employers in Puerto Rico who are subject to FUTA are required to file Form 940-PR (PDF) to report and pay FUTA taxes.
Form 940-PR is filed annually and is due by January 31 after the end of the calendar year. Most employers are required to deposit FUTA taxes. FUTA taxes are not withheld from the employees’ wages.
The FUTA tax rate is 6.0%.
by Fresh Start Tax | Jul 22, 2012 | Back Taxes, Tax Returns
If you are Amending your Tax Return(s) and need tax help call us today. Since 1982 we have successfully amended thousands of tax returns.
Let us take the fear and worry out of this process.Call for a no cost consult and speak directly to a tax professional. 1-866-700-1040.
Since we were Former IRS agents and managers we can make this a seemly and easy process.
You will never talk to the IRS and we can work out a tax settlement called an offer in compromise.
Tax Tips on how to fix errors made on a IRS Tax Return.
If you discover an error after you file your tax return, you can correct it by amending your return.
1. When you amend a tax return you should file an amended return if your filing status, number of dependents, total income, tax deductions or tax credits were reported incorrectly or omitted.
2. When you SHOULD NOT AMEND!
If the IRS corrects math errors or requests missing forms such as Forms W-2 or schedules or when processing an original return.
3. Form to use.
Use a tax form 1040X, Amended U.S. Individual Income Tax Return, to amend a previously filed Form 1040, 1040A, 1040EZ, 1040NR or 1040NR-EZ.
Make sure you check the box for the year of the return you are amending on the Form 1040X.
An amended tax return cannot be filed electronically.
4. Multiple amended returns.
If you are amending more than one year’s tax return, prepare a separate 1040X for each return and mail them in separate envelopes to the appropriate IRS processing center. check for the correct Service Center.
5. Form 1040X The Form 1040X has three columns.
a.Column A shows original figures from the original return.
b.Column B shown the changes you are making.
c. Column C shows the corrected figures. There is an area on the back of the form to explain the specific changes and the reasons for the changes.
6. Other forms or schedules.
If the changes involve other schedules or forms, attach them to the Form 1040X. Failure to do this will cause a delay in processing.
7. Additional refund.
If you are amending your return to get an additional refund, wait until you have received your original refund before filing Form 1040X.
You are allowed to cash that check while waiting for any additional refund.
8. Additional tax.
Should you owe additional IRS tax, you should file Form 1040X and pay the tax as soon as possible to limit interest and penalty charges. If not call us to get a payment plan. 1-866-700-1040. Free Consult.
9. When to file- BEWARE NOT TO LOSE A TAX REFUND
To claim a refund, you must file Form 1040X within three years from the date you filed your original tax return or within two years from the date you paid the tax, whichever is later.
10.Normal processing time for an amended tax return is 8 to 12 weeks.
Call us for any tax help you need in this amended tax process.
Amending Tax Returns, Tax Tips from Former IRS Agents and Managers, Expert Tax Help
by Fresh Start Tax | Jul 6, 2012 | Tax Help, Tax Lawyer
There a a lot of myths surrounding Offshore Tax Issues – Tax Laws and with the proper guidance many of these issues and problems can immediately dissolve. Knowledge is power.
Combined with 205 years of professional tax experience and over 60 years with the IRS, working in the local, district and regional offices, we can see you through any tax issue you may have regarding Offshore Banking or IRS Financial Issues.
We are IRS Tax Experts and a tax specialty firm.
We are staffed with Tax Attorneys, Lawyers, CPA’s and Former IRS Agents, Managers and Instructors. When employed at the IRS we taught Tax Law.
You can call us for a no cost consultations and we may be able to provide a easy solution for your situation.
You will speak directly with a tax professional.
The Offshore Program is a hot topic with the IRS. The IRS has recently collected over $4.4 Billion as a result of of first two Offshore Programs.
It is certainly not illegal to have overseas funds or income but a voluntary disclosure is necessary to avoid the harsh IRS tax penalties.
Depending on a taxpayer’s particular facts and circumstances, the following penalty could apply:
A penalty for failing to file the Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts, commonly known as an “FBAR”).
United States citizens, residents and certain other persons must annually report their direct or indirect financial interest in, or signature authority or other authority that is comparable to signature authority over, a financial account that is maintained with a financial institution located in a foreign country if, for any calendar year, the aggregate value of all foreign accounts exceeded $10,000 at any time during the year.
Usually, the civil penalty for willfully failing to file an FBAR can be as high as the greater of $100,000 or 50 percent of the total balance of the foreign account per violation.
There is a huge laundry list of IRS Penalties. Call us for more details.
In many cases penalty abatement’s will be accepted by the IRS due to:
1. lack of knowledge,
2. bad advice,
3. ignorance,
4. depending on the advise of others.
Reasonable cause can exist to abate penalties and interest. See our home page, penalty abatement tab.
See 31 U.S.C. § 5321(a)(5). Non-willful violations that the IRS determines were not due to reasonable cause are subject to a $10,000 penalty per violation.
Offshore Tax Problems – Expert Tax Help – Tax Attorneys, Lawyers, Former IRS – Tax Representation
by steve | Aug 3, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax L.L.C. Since 1982 IRS Tax Experts A Professional Tax Firm “A” Rated by the Better Business Bureau
If you are experiencing any type of IRS Problem and need immediate Tax Representation call us today for a no cost professional tax consult to review all your different tax options to settle your IRS case.
You will hear the truth about your situation and you will hear definitive ways to settle with the IRS. We taught Tax Law at the IRS and know every tax strategy possible to get you the very best result.
We have over 205 years of professional tax experience and over 60 years of working directly for the IRS in the local, district and regional offices of the IRS.
We are staffed with Board Certified Tax Attorneys, CPA’s and Former IRS Agent’s, Managers and Instructors.
Our Company Resume: ( Since 1982 )
- Our staff has over 205 years of professional IRS tax representation experience collectively
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Former IRS Managers, Instructors and Trainers
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed to practice in all 50 States
- Certified by the Internal Revenue Service
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published Tax Expert
- As heard on 90.3 FM Monthly Radio Show-Business Weekly
How we settle and negotiate your case with the Internal Revenue Service:
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak to them.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-A (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
Settlement agreements can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. Offer in Compromise. There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration / Exceptional Circumstances – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
See our home page for more details about Fresh Start Tax L.L.C. Thank You
by steve | Mar 21, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax, LLC “A” Rated by the Better Business Bureau An Expert IRS Professional Tax Firm Practicing Tax Law in the State of Florida since 1982
We are a professional tax firm that is one of the oldest, most experienced and trusted tax firms in the State of Florida. We are also former IRS Agents, Managers and Instructors that worked out of the Florida IRS offices for over 60 years. We have successfully worked thousands of IRS cases .
We can get immediate releases of the IRS Tax Levy Garnishments!
How we immediately get Notices of Wage Levy and Bank Garnishment Levies Released.
As former IRS Agents, Managers and Instructors we have issued thousands of IRS Wage/Garnishment and Bank Levies. We know exactly how to quickly get them released. We have what it takes.
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak to the IRS.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case and get them an agreement based on their current financial needs.
Settlement agreements can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because
you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs used for the lowest possible payment amount required.
c. Offer in Compromise. There are three types of OICs:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists.
Call us for a free tax consultation. Free video conferencing is also available.
