by Fresh Start Tax | Jan 4, 2019 | Tax Help
I am a former IRS agent and teaching instructor. I have over 40 years of experience with the Internal Revenue Service and in private practice.
As a general rule of practice after 40 years of tax experience I have found I get a better result going to the appeals division.
I feel that you have a more seasoned person looking at the case who is much more able to settle the case based on their years of experience.
Many time in the local office you do not know what you’re going to get from the field agent working the case. It is a lot easier many times to convince the appeals officer based on certain common senses.
Many times a local office will see things black-and-white and the appeals agent sees things in the gray and are quicker to settle cases. The local offices seem to be more hard-nosed sticking to the facts, having little diverse city or settlement authority.
But keep in mind, you cannot have any frivolous arguments, you must have some sort of case before bringing it forward.
If you work a lot of cases that frequently go to appeals you can start building a reputation of a solid practitioner versus a scammer. It is best generally for your client and for your reputation to send solid work to the appeals office.
The appeals agent does something that the local agent in the office cannot do. If cases cannot be settled at the Appellate Division they go to Tax Court and IRS does not want to have the cost and expense of going to Tax Court so the appellate agent does their best job to settle the case at that level.
The appeals agent findings are very important and much of this is based around hazards of litigation, that is, is it easier to settle the case then go to Tax Court and lose.
Here is a look at the hazards of litigation.
A LAYMAN LOOK AT THE HAZARDS PROCESS
I am attempting here to lay out a layman’s look at the hazards of litigation and what the appellate officer will look at as a case comes their way.
As a general rule, the appellate officer receives the entire case from the collection division or the audit division with all the notes and the entire case file.
Generally, the Appellate Division will get involved in the case from the audit or collection division in which the taxpayer is unsatisfied based on the result of the current field agent working the case and asked for a hearing in the appeals division.
The agent will carefully look at the case and then send out their appointment letter. They want to try to understand the case first before the appointment letters go out.
It is critically important for the practitioner of the taxpayer to respectfully and respond to all-time dated requests. You not want to do anything to upset the appeals agent and their timelines in the handling of these cases.
Case files sent by the practitioner to appeals should be very organized, well documented and placed in tabs if necessary. Good case appearance is very important to the appellate agent can make their way through the case easily.
IRS management is very time conscious on cases and as a general rule, they do not like having overage cases in their inventory and many times both management and the agents are written up because of poor time management.
The appeals division is there to make a lasting final decision before the case could go to Tax Court.
The appeal officer does not want the case to go to court and they do their best to settle the case if in fact it can be settled on a reasonable basis and leaning toward the side of the United States government however there are certain factors that the IRS appellate agent must consider before settlement.
If the case goes the Tax Court the IRS does not want to lose because it can alter future decisions and this can have a devastating effect on future cases going for. if they lose the case it looks bad on the appellate agent, the supervisor’s management and the district in which the decision was ruled.
An Example:
The appellate agent looks at the case and based on the facts and circumstances they feel they have an 8/10 chance of winning the case, many times they can offer an 80% reduction in the total tax. Before the agent sends out a letter offering a reduction the case is reviewed with their supervisor to make sure this is consistent with the IRS overall goal so it does not affect future cases.
The IRS has certain categories or criteria that they use for the hazards of litigation.
I have put together 11 elements that they use in making their determination about the strength of the weakness of their case. Please remember this is a layman’s view so those reading this blog can understand how the IRS works these hazards of litigation cases.
I have deliberately not gone into any legal detail because this is just a brief overview of hazards.
Hazards of litigation categories
This list contains a majority of factors but not all-encompassing.
1. How would the judge view the facts of this case.
2. How much evidence would this hold inside a courtroom,
3. What is the credibility of the representation and the taxpayer
4. How well is the case been presented to the appeals agent that will be presented in court. Is the case well presented in well representative
5. Can the taxpayer meet the burden of proof effectively to convince the judge
6. If witnesses come into play are they credible and will they testify in such a case, can anything disqualify them
7. Has the taxpayer successfully shifted the burden of proof to IRS
8. Who does the appeals agent based on the aforementioned facts feel the judge will rule in favor of
9. How solid will the presenter of the taxpayer’s case be
10. Can the evidence of the facts be proven
11. Has tax law already existed in this case
What Does the IRM say about these matters
1. The Appeals mission is to resolve tax controversies, without litigation, on a basis which is fair and impartial to both the Government and the taxpayer and in a manner that will enhance voluntary compliance and public confidence in the integrity and efficiency of the Service.
This is Appeals’ general contribution towards achieving the Service mission. (See IRM 1.1.1, IRS Mission and Basic Organization and IRM 1.2.17, Servicewide Policies and Authorities, Policy Statements for the Appeals Process.) In further support of the Service mission, Appeals may defer action on or decline to settle some cases, under Policy Statement 8–47 (described at IRM 1.2.17.1.6), where:
A. required by other Headquarters Office-issued internal management documents, such as those suspending action on cases or those requiring coordination or control of identified matters with widespread impact; or
B. such action would produce a greater positive effect on voluntary compliance than would be derived from settlement or other action on the case.
3. A fair and impartial resolution is one which reflects on an issue-by-issue basis the probable result in event of litigation or one which reflects mutual concessions for the purpose of settlement based on relative strength of the opposing positions where there is substantial uncertainty of the result in event of litigation.
4. It is the experience of Appeals that thorough, reasonable, and objective consideration of all elements of a controversy leads, in a large majority of cases, to the resolution of the controversy on a basis agreeable to both the taxpayer and the Government.
The agreement is not possible in all cases, however, a taxpayer may not agree with Appeals conclusion as to the probable result in event of litigation or to the extent of mutual concessions required where there is substantial uncertainty of litigating result or may prefer to litigate for other reasons.
Former IRS Appellate Agents + IRS Help For Appeals Cases + We know the system
by Fresh Start Tax | Jan 4, 2019 | Back Taxes, Tax Help
As former IRS agents we can file all back tax returns and settle your tax debt all at the same time. Since 1982 A+ rated by the BBB.
We are a local South Florida company whose former IRS agents, managers, and teaching instructors all worked out of the South Florida IRS offices.
We are true experts for those having to file back tax returns with or without records. We know the system and we know the process to get you through this worry free.
With or without tax records we can reconstruct your tax return and get this problem behind you once and for all.
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We can file all your back, past due or last tax returns and if you owe money we can work out a IRS Settlement. There are different type of IRS settlements and after reviewing your current financial statement will let you know what settlement you qualify for.
Filing Back Taxes
If you do not file your back tax returns IRS can file your tax returns for you and this will cause you more problems than you can ever think.
We can file back tax returns for you even if you have little or no tax records.
We can do this quickly, efficiently, and at affordable rates.
As Former IRS Agents, Managers and Instructors we have reconstructed thousands of back tax returns for individuals, businesses and corporate entities. There is a true art to reconstruct back tax returns without records.
Stop the worry right now, let our years at IRS be your best asset.
We can not only file all back years, but we can also work out a tax settlement so you can go on with your life worry-free. There are different type of settlement procedures and we will review every procedure based on your current financial statement.
What happens if you do not file a back tax return
It’s important to understand the ramifications of not filing a past due return and the steps that the IRS will take.
Taxpayers who don’t file a past due return or contact the IRS are subject to the following:
1. Penalties and Interest will be assessed and will increase the amount of tax due,
2. The IRS will file a substitute return for you. But this return is based only on information the IRS has from other sources allowing no exemptions or deductions or business expenses,
3. You lose Social Security credits.
Once the tax is assessed, the IRS will start the collection process, which can include placing a levy on wages or bank accounts or filing a federal tax lien against your property.
Filing Back Taxes Help – If IRS has already filed for you. 6020B
Even if the IRS has already filed a substitute return, it still makes sense for you to file your own return to make sure you take advantage of all the exemptions, credits, and deductions you are allowed. The IRS will generally adjust your account to reflect the correct figures.
IRS 6020 B of Back Taxes Spells Trouble
IRS files thousands of back tax returns each year under the IRC provision of 6020B. As former IRS agents we filed back taxes for taxpayers when we were employed by the IRS. This process of filing by the IRS is called SRF or Substitute Tax Return process, and we understand exactly how it works.
The process of SRF works like this: IRS conducts matching programs each and every year on their CADE 2 system, which matches all W-2’s and 1099’s.
If the computer finds no tax return posted against the W-2’s or 1099’s the IRS will prepare a SRF tax returns. This is not what you want to happen, so if you can correct the situation, you should.
IRS will not do you a favor filing your SRF return for back taxes. IRS will only give you the standard deductions, and nothing more.
From there the IRS will send out 2-3 notices, which, if you don’t respond, they’ll then send Notices of Federal Tax Levy, both Bank levy’s and Wage garnishment levy’s.
You must keep up with IRS’s bills and notices sent to you. You should know many times taxpayers have moved never got notices and they went to their bank or employer only to find out their bank account and wages have been garnished.
They will continue to levy until they get your attention. After that, the IRS will follow that up with a Filing of the Notice of Federal Tax Lien.
Do not be left in the hands of IRS to file your back tax returns. Get Filing Back Taxes Help.
If the IRS filed your tax returns thru SRF, call us today to immediately correct the situation. If the IRS filed your tax return, we can file correct returns and correct the misstated tax liability.
When the IRS prepares your tax return, the general rule of thumb is that overstatement of tax is least 5 times of the total tax. In some cases, taxpayers never even owed the tax.
We can file correct tax returns to lower and adjust the overstated tax and work out a tax settlement that you can live with. This process is called an audit reconsideration.
As former IRS Agents, Managers and Instructors for over 60 years with the Internal Revenue Service at the local, district and regional offices, we are experts at reconstructing tax returns, filing back taxes and tax settlements.
We have prepared thousands of back tax returns since 1982.
Lost tax records, not a problem.
Not only will we reconstruct your tax return, but we will also work out a settlement agreement with the Internal Revenue Service if you owe them back taxes. If you do not have any records as former IRS agents we know the exact process to reconstruct your tax returns and assure you will pay the lowest amount allowed by law.
We know the system, we know the methodologies, and we know the best and most affordable way to solve your IRS tax problem.
File All Back Tax Returns & Settle + Lost Tax Records, No Problem + Former IRS + Ft.Lauderdale, Miami, Palm Beaches, Boca Raton
by Fresh Start Tax | Jan 4, 2019 | Tax Help
If you owe back taxes to the IRS/ State you have several options to resolve your back tax debt. Options to settle: monthly installment agreements, IRS hardships, offers in compromise. <><
Grand Rapids, Kalamazoo, Battle Creek + Christian Tax Firm Company
When you call, please feel free to ask us about our Christian faith.
Millions of taxpayers owe back taxes every year to the Internal Revenue Service and best guess estimates show there’s anywhere between 5 to 10 million people who do not fully pay their income taxes when filed.
They generally fall into two categories of people:
Those who have not had sufficient withholding taken out or self-employed individuals who simply never made or did not have enough estimate payments made to the Internal Revenue Service to cover their tax debt.
Both find themselves on the short end of the stick when it comes to tax season.
Many of these taxpayers never bother to file a tax return when they find out they owe tax fearing the worst or retribution from the Internal Revenue Service.
Many of these people fear the IRS levy on their bank or their wages or the filing of a federal tax lien. So what do most of these people do, many put their head in the sand and don’t bother to go ahead and do anything about the inevitable debt. However at some point in time they are going to have to deal with Uncle Sam and many will receive a nasty gram.
The fear is not as bad as people think. You have different options to resolve your IRS back tax debt and keep IRS out of your life and out of your back pocket.
Here are your different options if you owe back tax debt to the Internal Revenue Service.
About 6.5 million taxpayers a year make monthly installment agreements. Some of these can come in the form of online agreements. the ones do not fit the online agreement category must give IRS a current financial statement documented along with copies of pay stubs bank statements and they must understand the necessary living expense standards set up by Internal Revenue Service.
IRS will require a financial statement which is generally on a 433F to be fully reviewed fully documented before making a determination on allowing them to make an installment agreement.
Others simply cannot pay their back taxes and will ask IRS to be put in hardship or are currently not collectible status. Please be advised that this hardship status last anywhere between 1 to 3 years. you must be current on all tax filings and continue not to incur any more tax debt.
Those individuals going in the status must understand that the tax debt will be reviewed again in two or three years and penalties and interest will still run on the debt the entire time it is an uncollectible status.
Others can file for an offer in compromise to settle their tax debt for pennies on a dollar. With that said you must be a truly qualified candidate for the offer in compromise program.
As a former IRS agent, I was a teaching instructor for the offer and you must make sure you are a qualified candidate and not give your money to any firm unless you know you have a fair amount a chance to get your offer accepted
If you have any questions regarding owing back tax debt and the best way to resolve it based on your current financial statement please call us today for a free initial tax consultation and we will review with you the various programs IRS has in detail so you fully understand what the best option for you based on your current financial conditions.
If you are hiring a tax firm or a tax defense resolution company to represent you make sure they have former IRS agents on staff. Without any question, former IRS agents know the system, the methodologies, the quickest and the most affordable way to remedy your problem because we have complete knowledge of everything IRS attempts to do. Furthermore as former IRS agent teaching instructors how much more do we know the system.
Check the Better Business Bureau records find out the length of time they were in business and check out the complaint history.
We handle all types of situations here, including IRS, federal or state tax letters and notices, any correspondence, appellate work and even participating in Tax Court. We are a full-service firm with all work being done in-house.
And lastly, speak to the person who may be working your case. call us today for free initial tax consultation and hear the truth about owing back taxes to the IRS or state.
Grand Rapids, Kalamazoo, Battle Creek + Christian Tax Firm Company + Owe Back Tax Debt To IRS/State + CPA’s, Former IRS + File Tax Returns, Settlements, Representation
by Fresh Start Tax | Jan 3, 2019 | Tax Help
Former local IRS agents and managers end your problem now. Since 1982, A plus Rated. STOP IRS NOW! AFFORDABLE
You will never have to speak to the Internal Revenue Service at any time. We handle all correspondence all IRS contact so you can relax and leave the problem resolving to our firm.
We are a local South Florida tax firm that have worked out of the South Florida offices as well as the district and regional offices of the Internal Revenue Service.
We understand all the methodologies, the billing systems and the inner workings of Internal Revenue Service. We are true experts in IRS and state tax matters have been practicing since 1982. We know our way around the system.
We have over 100 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS. We know the system inside and out.
If you received a letter, notice or tax bill from the IRS we can help. Stop the stress and resolve your IRS problem.
You will never have to speak to the IRS! 1-866-700-1040
Let Former IRS Agents, Managers and Tax Instructors take the worry out of this situation.
YOU MUST ACT ON Any Final Notice or CERTIFIED LETTER OR NOTICE.
IRS Contacts Taxpayers by Letter or Notification 4 Different Ways:
1. By certified mail
2. By notice of federal tax levy or be filing of federal tax lien
3. By regular mail
4. By telephone
So What Is Your Next Step?
First of all, do not panic.
The IRS is just trying to resolve an open issue.
Most IRS letters, notices or bills come with a time frame of ten to thirty days to respond to the notification.
You should respond within the time period specified or the IRS will follow up and eventually use enforcement action. If you do not respond to the IRS’s attempts to reach you they will hit you with a Federal Tax Lien, a Wage Levy on your paycheck or a Tax Lien on your bank account.
Contact Fresh Start Tax and our professionals will handle the IRS for you and resolve your problem.
IRS only sends out tax levies after a series of 5 letters are sent to the taxpayer.
These are sent about 5 weeks apart.
1. CP 14 – This is the notice of balance due,
2.CP 501 – This is a Bill that you still owe tax,
3. CP503 – Important, Immediate Action Required
4. CP 504 Urgent Notice – We Intend to Levy on Certain Assets, Please Respond Now
5. CP90/CP297/ IRS Letter 1058 – Final Notice of Intent to Levy of Your Right to a Hearing
6.CP 91 CP298 -Final Notice Before Levy on your Social Security Benefits
Contact By Certified Mail
When IRS contacts you by certified mail it is time to be serious about the next step. The IRS has tried to contact you before to resolve the issue and has been unsuccessful.
Certified letters from the IRS usually means they are ready to take enforcement action. Unless you reach them within the prescribed period of time the IRS will probably levy your wages or bank account and file a Federal Tax Lien.
It is time to call your Fresh Start Tax Professional. In most cases, within a thirty day period of time, the IRS will send a wage levy to your employer, and or a bank levy to your bank accounts.
Whether you sign for the IRS certified mail or not, the 30 day period starts on the date of the IRS letter.
Before you make any contact with the IRS you want to know your rights so you don’t make the situation worse than it already is. This requires a plan of action. Contact Fresh Start Tax as soon as possible and we will contact the IRS immediately to stop any collection activity.
The CADE2 computer is the issuer of IRS Letters and Notices
The Internal Revenue Service is spending millions and millions of dollars on their CADE2 computer. This is the computer giant that belongs to Internal Revenue Service and all its systems are held within this massive computer.
All IRS notices, letters and bills that go to taxpayers are generated from the system.
All the information that this computer generates is handled systemically and not a human hand will ever touch a piece of paper you receive.
To stop the issuance’s of IRS notices and IRS letters you must contact an Internal Revenue Agent who can directly make changes to the CADE2 computer.
Usually you will find this on a 1-800 number on your letter, notice or bill.
If you do not contact the Internal Revenue Service at some point in time enforcement action will begin.
It is critical you contact the Internal Revenue Service at the number shown on Letter or Notice to stop or correct the problem or situation.
The worst thing you can do is not respond to the IRS notice her letter because I can assure you you will not be happy with the consequences.
I can tell you as a former IRS agent these letters are notices will not go away.Many people put their head in the sand like ostriches but the IRS system is systemic and they cannot stop until you contact IRS any person actually inputs a code into the system to stop the process of enforcement.
As former IRS agents and teaching instructors we are aware of the next step IRS will take on every single case.
You will never have to speak to Internal Revenue Service once we have a power of attorney.
We can lay out a tax strategy for you and we will guarantee you a flat fee billing so you know exactly the cost of these matters.
We are a local South Florida tax firm that specializes in any IRS estate tax problem contact us by Skype, come in for an office visit or call us today for a free initial tax consultation.
by Fresh Start Tax | Dec 18, 2018 | Tax Help
Michael Sullivan IRS Tax Debt Expert, File & Settle Your Tax Debt all At the Same Time, Christian IRS Tax Experts <>< Since 1982
We are a Christian tax firm that specializes in the offer in compromise in the various ways to settle your back IRS or State tax debt.
Proverbs 12:15
The way of a fool is right in his own eyes, but a wise man listens to advice.
Proverbs 11:14
Where there is no guidance, a people falls, but in an abundance of counselors there is safety.
I am a former IRS agent and teaching instructor with the Internal Revenue Service.
When I was employed by the Internal Revenue Service I work the offer in compromise program. there are three general programs to settle your tax debt, the offer in compromise, the payment agreement and the hardship program but before IRS accepts any of these programs you must have all your tax returns filed and up-to-date.
We can prepare all back tax returns with or without records get them on the IRS computer and settle your tax debt all at the same time.
As a result, we know all the inside secrets the methodologies and all the back tax programs to settle back taxes available.
Not only did I accept and reject offers in compromise, I was also a teaching instructor at the service center to help qualified revenue officers decide which offers to accept and reject.
Given the above information, I can tell you I am a true expert for the IRS offer in compromise and I wish to explain to you whether an offer in compromise is a viable option for you.
Due to social media, marketing and advertising the assumption by the general public is that IRS can settle tax debt for pennies on the dollar.
Let me first let you know that IRS does accept offers in compromise and as a matter of fact last year approximately 32,000 offers in compromise were accepted out of the 78,000 that were filed.
That number varies from year to year but the percentages usually remain the same of acceptability.
The average settlement was $9500 per case but remember that is just an average in not everybody can settle their tax debt for $9500.
There is much information you need to know before you go off filing an offer of compromise and giving your money to some firm to try to pull off some amazing trick because you have been sold a bill of goods and bought in to some marketing ploy and they’ve convinced you are a settlement candidate.
The IRS Process:
It first starts with the review of your personal financial statement which is found on the 433 OIC.
When the offer in compromise gets sent in to the Internal Revenue Service it is met with the reviewer that make sure that you are truly qualified candidate for the offer in compromise program.
That reviewer checks the completed form to make sure it is a valid agreement. The offer in compromise is a legal document between you and the Internal Revenue Service.
If IRS were to accept the offer and the next day you win the lottery the accepted offer still stands.
Also reviewer make sure that all the documentation is attached so that the revenue officer who will work your offer in compromise can move forward.
Approximately one-third of all offers in compromise are sent back to the taxpayer because the offers are not filled out correctly or the appropriate documentation is not attached.
IRS will check to make sure all your tax returns are current and filed on the IRS system.It is critically important you know that you must have all tax returns filed before IRS will process your offer.
You should know that the Internal Revenue Service rejects an offer before it accepts an offer. one of the basic rules is that the revenue officer is lazy and is easier to mark rejected then they go through all the work of accepting an offer in compromise.
I should know this is a former instructor of the offer in compromise I see many revenue officers simply send offers back because some of the eyes were not dotted in the T’s were not crossed.
Due to the volume of cases the IRS has, which is over 7500 cases waiting in the IRS Q, is far easier for the IRS to say no then to accept because an average of anywhere between 20 and 40 hours are spent on accepting the offer in compromise.
If you have an offer in compromise accepted, four signatures are generally required for signature as it goes up and down the chain.
So how do you know if the offer in compromise is right for you. Call for a free initial tax consultation and hear the truth from a true IRS tax debt settlement former agent.
The first place to go is to fill out the IRS pre-qualifier tool for the offer in compromise. Because of so many scrupulous tax companies that have been ripping people off, the IRS wanted to make sure the general public has a tool that they can use to find out if they are prequalified to file the offer in compromise to make sure it is a viable option.
It contains all the necessary information in regard to your income, your expenses and your assets and it predetermined for you whether the offer in compromise is even a viable option for you.
IRS will take a very close look at the liquidity of your assets, your current income, and your monthly expenses before it renders a decision as IRS wants to make sure it collects all the money from you that they can within the 10 year statutory period of time.
One of the questions the agent will want to consider is, can we collect more money over 10 years than accept the current agreement on the table for the IRS offer in compromise.
As a general rule, you will have to give IRS your total liquidity of all your assets before they will even consider the acceptance of an offer in compromise.
IRS on larger dollar cases is a tremendous amount of due diligence.
The IRS has a wealth of information on the various computers they can use to dig and find assets or income.
Why? you may ask is because all offers in compromise are open for public inspections at eight regional offices throughout the United States.
Your offer in compromise must be thoroughly documented which includes all your bank statements for the last six months to a year, all your pay stubs, all your monthly expenses along with certain documentation for assets that have value.
IRS also takes a look at the values of your pensions, your IRA, your business as well.
The offer in compromise is one of the most reviewed documents, it is like going through a mini audit.
Some of the due diligence that IRS will conduct on a larger dollar cases is checking Google, the accurate search engine, Department of Motor Vehicles, real estate records, insurance policies, credit reports, loan applications, insurance policies, and inter-government agency records including those garnered by Homeland security and other such agencies.
Before you contemplate filing the offer in compromise and wasting your money on a company that has promised you they can settle your case for pennies on the dollar, you would be wise to give us a call to have an actual former IRS agent and teaching instructor of the offer in compromise give you the green light.
You should also know if an offer in compromise is not except that you have the right to appeal it and if the appeal is not accepted you can file an offer at a later time.
When you call our office you will speak to true IRS tax experts who knows the system and can tell you what to expect and tell you how to settle for the lowest amount possible.
When you call our office will review every single back tax program available, and generally there’s three the hardship program the payment agreement program and the most popular back tax program the offer in compromise which completely settles your IRS tax debt but you must be a candidate that fits the IRS criteria.
Call us today for a free initial tax consultation, you will hear nothing but the truth from former IRS agents who know and understand the methodologies of the offer in compromise to make sure it is right for you.
Call us today for free initial tax consultation. We are true Christian IRS tax debt state tax debt experts since 1982 A+ rated by the Better Business Bureau.
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