by Fresh Start Tax | Nov 23, 2012 | Tax Relief, Tax Returns
B Notice IRS – IRS B Notice – Fresh Start Tax LLC, Former IRS – IRS Representation
Fresh Start Tax LLC is a full service tax firm. We are staff with Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents and Managers.
We can help you on any IRS or State Tax Matters. 1-866-700-1040.
B Notice IRS – IRS B Notice
Government entities are subject to rules that require income tax withholding of 28% from certain payments if the payee is not exempt from backup withholding and fails to furnish correct taxpayer identification number (TIN).
The IRS does and may also notify a payer to begin backup withholding because of payee under reporting. The IRS computer system is set up systemically to handle this matters through self generating notices.
Failure to follow the backup withholding rules can result in penalties to the payer for filing incorrect information returns. IRS has the right to make the payer liable for any uncollected amounts. Both parties can be at risk.
Payments Subject to Backup Withholding
Rents,non-employee compensation for services, royalties, reportable gross proceeds paid to attorneys, and other fixed or determinable gains, profits, or income payments that are reportable on Form 1099-MISC, Miscellaneous Income.
Backup withholding does not apply to wages or pension payments.
Requirement for Payer To Secure a TIN
For all payees, you must make an initial solicitation for a TIN when the payee opens an account or when the transaction occurs.
You should use Form W-9, Request for Taxpayer Identification Number, to request the taxpayer identification number.
To beginning backup withholding on a payee, if the payee continues to fail to provide you with a TIN, you should generally make an annual solicitation of the payee for a TIN.
Missing Taxpayer Identification Number
A taxpayer identification number is considered “missing” whenever
1. the TIN is not provided,
2. the TIN has more or less than nine digits or
3. the TIN includes an alpha character in one or more of its nine positions.
The IRS Notice CP2100 or CP2100A Notice
CP2100 and CP2100A notices are notices that inform a payer that he or she may be responsible for backup withholding.
This may be due to missing or potentially incorrect taxpayer identification numbers identified during the processing of Form 1099 information returns.
It is accompanied by a listing of missing, incorrect, and/or not currently issued payee TIN. Large volume filers (250 or more erroneous documents) receive the CP2100 notice, while all other filers receive the CP2100A notice.
A Incorrect Taxpayer Identification Number
A taxpayer identification number is considered “incorrect” whenever the TIN is displayed in the proper format but:
1. the Name/TIN combination does not match, or
2. the TIN cannot be found in the files of the IRS and/or the Social Security Administration.
The famous “B” Notice
If the IRS sends you a CP2100 or CP2100A Notice indicating an incorrect payee TIN, you are required to send the “B” Notice within 15 days from the date you received it, or the date of the CP2100/2100A, whichever is later.
More can be found on IRS Publication 1281 for details.
You should begin backup withholding no later than 30 business days after the date of the CP2100 notice or the date you received it, whichever is later.
Stop backup withholding no later than 30 days after the payee furnishes a TIN and certifies that it is correct.
Call Fresh Start Tax LLC for all your tax needs and problems. 1-866-700-1040.
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B Notice IRS – IRS B Notice – Fresh Start Tax L.L.C.- Former IRS – IRS Representation
by Fresh Start Tax | Oct 30, 2012 | IRS Tax Problem, Offer in Compromise, Tax Lien, Tax Problem Help, Tax Settlements
Do you need to get a Federal Tax Lien Released or Removed?
There are different ways to get this done and get IRS tax relief.
Fresh Start Tax is comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents.
With over 205 years of professional tax experience and over 60 years with the IRS we can help resolve any tax problem you have.
Free Consult. 1-866-700-1040.
It is of utmost importance to avoid the federal tax lien at all costs. Many times if you contact IRS while you are in notice status it is possible to avoid the filing of the federal lien. You should call us for more details.
Settling with the IRS will remove the Federal Tax Lien.
When a taxpayer submits and the IRS approves a Offer in Compromise, the IRS will remove the Federal tax Lien for pennies on a dollar. However you must qualify for an Offer in Compromise to settle with the IRS. You can call us today and we can see if you are a candidate for a IRS tax settlement. On staff of Fresh Start Tax LLC is a former IRS agent who was a Offer in Compromise specialist.
New IRS Tax Law helps those having IRS Tax Liens.
Tax Lien Thresholds
The IRS is significantly increase the dollar thresholds when federal tax liens are filed.
The new dollar amount is in keeping with cost of living changes since the number was last revised. Federal Tax liens are automatically filed at certain dollar levels for people or businesses with tax balances.
A federal tax lien ( FTL ) gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt.
Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money. The filing of the Tax Lien will destroy your credit rating.
A federal lien informs the public that the U.S. government specially the IRS has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter.
Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Federal Tax Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government and the taxpayer as well.
In order to speed the withdrawal process, the IRS has now streamlined its internal procedures to allow collection personnel to withdraw the liens.
Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement . For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
1.Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
2. The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
3. The IRS will also withdraw liens on existing Direct Debit Installment Agreements upon taxpayer request.
4. Federal Tax Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
New Rule by the IRS under the Fresh Start Program
The IRS recently approved new rules to assist struggling Taxpayers due to the economic recession. The new rules state that the IRS will withdraw tax liens that are filed against taxpayers who meet certain criteria.
If you owe less than $25,000 to the IRS and enter into a payment agreement the IRS will withdraw the lien.
IRS Tax Lien Discharge or IRS Tax Lien Subordination.
Other Ways to Remove a Federal Tax lien
1. Paying your tax debt in full.
This is obviously the quickest and the fastest way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt. If you walk into the local office with a cashier check you can ask the IRS to issue you a release right on the spot.
2.When conditions are in the best interest of both the government and the taxpayer.
We have a client that a third party lender was going to give the taxpayer money to pay off some of the lien. We persuaded the IRS to release the lien for this funding to go through. Situations that benefit both the government and the taxpayer can also release the federal tax lien.
3.Discharge of property.
Allows property to be sold free of the lien. The seller or buyer can submit Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien (PDF).Call us for more details.
4. Subordination.
This does not remove the federal tax lien , but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage. For more information review Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien.
This is available on (PDF).
5.Withdrawal.
This removes the public notice and assures that the IRS is not competing with other creditors for your property. If applying for a withdrawal, use Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (PDF).
Call us for a no cost consultation, 1-866-700-1040.
by Fresh Start Tax | Sep 25, 2012 | Abatements, FBAR
FBAR – How to get Rid of FBAR Penalties – Fresh Start Tax L.L.C – FBAR Penalties & Representation
There is fear when FBAR is mentioned. Disclosure, criminal, money and penalties are words attached with FBAR.
Many taxpayers are stuck as to whether to file or not.
My rule of thumb as a former IRS Agent, I recommend you find the IRS before they find you.
FBAR is here to stay and FBAR is becoming the beast of the IRS.
So much so that FBAR generated over $5.5 billion in Revenue to the Feds over the past couple years.
Not only is the Fed collecting the taxes but the IRS penalties will choke a horse. Part of the fear with taxpayers coming forward is the fear of not only paying the tax but also paying the penalties as well and having the money to do so.
It is not easy to get FBAR Penalties removed or abated because the IRS has set a tone and a theme of “just deny the claim.” The IRS will tell the IRS Auditing Revenue Agents to just disallow all penalty abatement claims unless the taxpayers fight for the abatement. A taxpayer must fight to have FBAR penalties abated.
What is the FBAR Filing Criteria
In order to determine whether or not the FBAR is required, all of the following must apply:
1. The filer is a U.S. person;
2. The U.S. person has a financial account(s);
3. The financial account is in a foreign country;
The U.S. person has a financial interest in the account or signature or other authority over the foreign financial account; and,
a. The aggregate amount(s) in the account(s) valued in dollars exceed $10,000 at any time during the calendar year.
The IRS code as it relates to FBAR Penalties – Its the Examiner Discretion
- The IRS tax examiner may determine that the facts and circumstances of a particular case do not justify asserting a penalty. There is tremendous discretion the examiner has on these case.
- If there was an FBAR violation but the examiner determines that a penalty is not appropriate, the examiner should issue the FBAR warning letter, Letter 3800.
- When a tax penalty is appropriate or justified , the IRS has established penalty mitigation guidelines to aid the examiner in applying penalties in a uniform manner.
- The IRS tax examiner may determine that a penalty under these guidelines is not appropriate or that a lesser penalty amount than the guidelines would otherwise provide is appropriate or that the penalty should be increased (up to the statutory maximum). The examiner must make such a determination with the written approval of the examiner’s manager and document the decision in the work papers.
- Factors to consider when applying examiner discretion may include, but are not limited to, the following:
- Whether tax compliance objectives would be achieved by issuance of a warning letter;
- Whether the person who committed the violation had been previously issued a warning letter or has been assessed the FBAR penalty;
- The nature of the violation and the amounts involved; and,
- The cooperation of the taxpayer during the examination.
- Given the magnitude of the maximum penalties permitted for each violation, the assertion of multiple penalties and the assertion of separate penalties for multiple violations with respect to a single FBAR form, should be considered only in the most egregious cases.
Did you know that the the FBAR penalty is calculated not on your account earnings, but rather, on your account value?
As an example, if you have an account that is worth $1,000,000, the IRS, for one year, can assess a $500,000 FBAR penalty.
For two years, the FBAR penalty could be equal to the amount of the account. You see, the IRS is not limited to just two years, the IRS could potentially assess the FBAR for 6 or more years.
This is the very reason taxpayers need professional representation for both the reporting , filing and for the abatement of penalties and interest.
So you can see the FBAR penalty can be particularly devastating. So you need great professional tax advice on how to best deal with your unique and personal tax situation.You should seek the counsel of a tax attorney.
If you call Fresh Start tax LLC 1-866-700-1040 and speak directly to our FBAR tax excerpts you can get the best counsel available. All initial consultations are free of charge.
You only pay us if we begin work.
Go to our home page, on the left side you will find Penalty Abatement’s, open that box and you will find a very comprehensive list of reasons IRS will accept as reason cause.
Call us today for a free tax consult. 1-866-700-1040
by Fresh Start Tax | Sep 17, 2012 | IRS Tax Debt, Tax Relief, Tax Settlements
There are many IRS tax settlement experts that you can find on the Internet. I Googled the word tax settlement experts and found over 7,300,000 searches available for IRS tax settlement experts.
Needless to say there are tons of people lying about being IRS tax experts.
Being a Former IRS Agent and teaching instructor with the IRS I can tell you a truly good settlement expert is hard to find. Many of these so called experts actually hurt their clients than helped them. Many of these so called experts gave me a road map to take enforced collection action.
The reality of the situation is this, there are some good tax settlement experts and your job is to be able to discern who is the best for you. There are certain qualifications you should look for in choosing the person that will be able to close your case with the IRS and get you the tax settlement you need to get your life back in order worry free. Check out my tax tips.
How to pick a IRS Tax Settlement expert to get you a tax resolution.
1. How many years work experience does the tax professional have that will be working your case,
2. How many cases has the person worked who will be handling your case,
3. Given like kinds of cases, what could an expected result be,
4. What is the Better Business Bureau Rating of the tax firm,
5. How many other persons at the firm can work your case is something happens,
6. Are there complaints reports on record for the tax professional,
7. What are the fees? Will they be put in writing?
There is a general caution or warning if a tax professional will not flat fee bill on tax resolution cases. Professionals that have a lot of experience know exactly how long these cases will take and should be able to give you a flat fee agreement. Insist on it or walk away.
IRS Tax Settlements can be broken into 3 categories. IRS will either place your case in:
- Hardship ,
- Payment Plan or Installment Agreement,
- Offer in Compromise.
Before the IRS will place you into a closed file for tax resolution, IRS will require a IRS financial statement. You will need to complete a form 433A or a 433F and have that form completely documented with bills, receipts, bank statements etc.
Another important aspect of the tax settlement is to understand the Nation Standards Program. The amounts of the national standards allowed for each area are listed on our website.
You can call us today for a free tax consult and we can walk you through the IRS tax resolution program.
Call us today to find out which category you are eligible for. 1-866-700-1040
by steve | Feb 27, 2012 | Income Tax Preparation
There are different ways to find Free Tax Help to prepare your income tax return.
First go to the The IRS.
The IRS offers free assistance by computer, telephone and in person.
The easiest and fastest way to get free tax help is through the IRS website – www.irs.gov.
The Internal Revenue Service also can also help find free tax preparation sites for those who qualify.
Here are some easy ways to get the help you need to file your tax return.
1. IRS website .
The IRS website at www.irs.gov is a one-stop shop for a wide array of tax information. You can even prepare and file your federal tax return for free through Free File, a service offered by IRS and its partners who offer free tax preparation software and free electronic filing.
But you must go through www.irs.gov to use Free File.
Do you have some tax questions?
Check out 1040 Central on the individuals page for the latest news.
You can even check the status of your refund with Where’s My Refund?
2. Community resources.
Free income tax preparation is available through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs in many communities.
Volunteer tax return preparation programs are provided through partnerships between the IRS and community based organizations.
They offer free help in preparing simple tax returns for low-to-moderate-income taxpayers. To find a site near you, visit www.irs.gov, or call 800-906-9887. Qualified taxpayers (age 60 or older) can also find help at a local TCE site by visiting www.aarp.org or calling 888-227-7669.
3. Telephone Call.
The IRS Tax Help Line for Individuals, 800-829-1040, to get answers to your federal tax questions, To hear pre-recorded messages covering various tax topics or to check the status of your refund, call 800-829-4477.Prepare yourself for a long wait. If it is free you will wait.
4. Taxpayer Assistance Centers.
When you believe your tax issue cannot be handled online or by phone and you want face-to-face assistance, you can find help at a local IRS Taxpayer Assistance Center. Locations, business hours and an overview of services are available at www.irs.gov.
Just go to the Individuals tab and click on the Contact My Local Office link on the left under IRS Resources.
Remember, it is always best to hire a professional tax preparer. You will know you are going to pay the lowest amount of tax allowed by law because tax professional know all the tax loopholes.
