by Fresh Start Tax | Oct 11, 2018 | Tax Help
We are one of the best tax settlement companies in the United States, practicing since 1982 comprised of former IRS agents, managers and teaching instructors.
We have worked thousands of cases since 1982 through every level of the Internal Revenue Service. We have worked in almost every single position in IRS collection and audit.
Since 1982, we have been resolving IRS tax issues and we have an amazing history of successful client work and satisfied customers and that is due to the experience we have in dealing with IRS tax problems and tax issues and IRS tax relief.
NOBODY MATCHES OUR IRS EXPERIENCE, NOBODY!
On staff are former IRS agents, managers and teaching instructors who were supervisors and managers while working at the Internal Revenue Service.
As a result of all of our work experience, we understand the methodologies and all the procedures to close IRS cases in the most prudent and affordable manner. True IRS tax resolution should be handled by experienced veterans who work thousands of cases.
Upon your initial consultation in almost all cases, we will let you know how your tax case will resolve itself and exactly how much it will cost you.
Each case has its own unique set of circumstances so we will customize a specific plan of action based on your set of circumstances and financial matters. There are no two cases alike.
We have worked thousands of cases since 1982 and know the most efficient way to get you where you need to be.
You will never have to speak to Internal Revenue Service we will handle all communication with you to you and with the Internal Revenue Service.
The most popular program is the IRS offer in compromise because it settles your debt for pennies on the dollar but you must be sure you qualify for this type of settlement or you will waste your money.
People such as you have given thousands of dollars to companies promising the settlements but there are qualifiers that the taxpayer must be aware of before they throw their money at somebody.
As a former IRS agent in teaching and structure of the offer in compromise I can let you know well ahead of time whether your offer will have any chance of acceptance and will be able settle your debt for the lowest allowable amount allowed by law if you qualify. Whatever you do do not be fooled by other companies.
When you call other tax settlement companies you are usually speaking to a salesperson who doesn’t know beans about offers in compromise what is trying to upsell you on the settlement.
Offers in Compromise, the OIC, this is known as the pennies on a dollar program.
I am a former IRS agent and teaching instructor of the offer in compromise or tax debt settlement program along with other IRS programs and systems.
We have over 60 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service. We are true IRS experts who understand the IRS collection system.
All our work is done in-house and we are used by other firms to do their backend work.
You can call us today for free initial tax consultation and find out if you are a true offer in compromise tax debt settlement candidate.
Due to the IRS new fresh start initiative set out by the Internal Revenue Service many more taxpayers are eligible for the tax debt settlement.
Before a taxpayer or client thinks about the filing of an offer in compromise they should check out the IRS offer in compromise pre-qualifier tool first.
You can walk to the pre-qualifier tool on our site or call us today to learn more about it. The pre-qualifier tool has been put there by Internal Revenue Service to make sure you are not ripped off by tax settlement companies.
We will not file an offer in compromise or accept any fee for any client unless we know they are qualified for the program.
So if we send in your offer in compromise, you probably do have a pretty good chance of getting it accepted.
It is important to know you will that all back tax returns will have to be filed, up-to-date and current on the IRS computer system before the Internal Revenue Service will accept an offer in compromise.
IRS Tax Statistics for the OIC.
Last year there were 78,000 offers in compromise were filed with the Internal Revenue Service, 38% of those were accepted for an average of $6500 per case. Keep in mind this is a national average and varies from case to case is completely dependent on your current financial statement.
Also keep in mind your offer may be worked by any person throughout the United States.
About 20% of all offers in compromise go to the Appellate Division for settlement. Many times your best settlements occur when your case goes to the appellate division for review and the person needs to settle your case.
You should know that not everyone is an offer in compromise candidate to settle their tax debt.
There are many companies out there today advertising pennies on the dollar and if you are not a true qualified candidate you should not be giving your money to any firm.
The advice I give everyone is to speak to the person who is working your case and let them explain why you are a qualified candidate for the offer in compromise.
Make sure you are eligible for the OIC. Do not give your money to any company firm or otherwise until you know you are a qualified candidate.
Before IRS can consider your offer, you must be current with all filing and payment requirements.
You are not eligible if you are in an open bankruptcy proceeding. When you are in a bankruptcy proceeding IRS literally freezes all activity on your account.
Submitting your offer or OIC to the Internal Revenue Service.
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF).
Your completed offer package will include:
• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.
Keep in mind IRS will process no offer in compromise until all documents are in the sent file.
Selecting a payment option for the offer in compromise program
Your initial payment will vary based on your offer and the payment option you choose:
• IRS Lump Sum Cash:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
• IRS Periodic Payment:
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer.
If accepted, you must continue to pay monthly until it is paid in full.
While your offer in compromise is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date. This very rarely happens but from time to time you get lucky and win the lottery.
Other: IRS tax relief programs
Many taxpayers for a variety of reasons cannot qualify for an offer in compromise and IRS has four other buckets of ways they close cases once they were open in the IRS collection
They are as followed:
Hardship, payment agreement, statute of expiration, bankruptcy.
1. For those who are financially strapped and qualify, IRS has a currently non-collectible program in which taxpayers who qualify IRS will temporarily suspend their case between one and three years and then kick the case out later and re-review the financial statement.
Approximately 40% of all people who are in the current IRS collection Q wind up in a temporarily non-collectible file.
2. While other people based on their current financial statement can make a payment arrangement with the Internal Revenue Service. Approximately 6.5 billion people wind up in payment agreements because of their current financial statement. The Internal Revenue Service will use the national standard test to make sure the agreement is fair and reasonable.
3. Others qualify because the statute of limitation has expired on their tax assessments. As a general rule IRS has approximately 10 years to collect all cases. we can pull IRS tax transcripts to find out how close you are to having your statute of limitations expired.
4. While others can file Chapter 7 bankruptcy proceeding. We were review with you each of the criteria when you call us.
Tax Return Note:
As a side note, taxpayers should be aware that all tax returns must be filed before they can have an approved offer in compromise. Before IRS will work an offer in compromise to settle your tax debt they will want all tax returns filed and they will want to make sure you are current on your ES payments or your withholding in the current year we are in.
If you submitted an offer in compromise and IRS finds your tax returns are not file they will return the offer to you.
We could prepare all back returns for you with little or no records. Please keep in mind that IRS can file your tax returns under 6020 B of the Internal Revenue Code.
The Internal Revenue Service keeps records for six years of all income source documents which means IRS has all your W-2s and 1099 s.
As former IRS agents we know the system and understand all the protocols to get you the very best result possible.
Our founder has been on FOX Business news as well as NBC. Mr. Sullivan is also contributed to Bloomberg news as well as the Wall Street Journal.
Best Tax Settlement Company + IRS Tax Debt Relief + Fresh Start Tax LLC + Since 1982
by Fresh Start Tax | Oct 9, 2018 | Tax Help
Speak to Michael D. Sullivan, Former IRS and Hear the Truth about Offer in Compromise. 1-866-700-1040
Mr. Sullivan is the founder and originator of Fresh Start Tax LLC.
Mr. Sullivan has worked thousands of cases since 1982 and is a true tax expert on the offer in compromise.
As a former IRS agent he both work accepted and taught to new IRS agents the offer in compromise program, otherwise known as the tax relief debt settlement program.
Upon your initial consultation with Mr. Sullivan you will know whether your qualified candidate to settle your tax debt for pennies on a dollar.
Offers in compromise or IRS tax relief debt settlements are not for everyone you must be a qualified candidate upon your initial consultation. There’s a pre-qualifier tool for offers in compromise.
Mr. Sullivan will walk you through the program and let you know all the fact about the offer in compromise.
Mr. Sullivan has also contributed to Bloomberg news and the Wall Street Journal.
Michael D. Sullivan had a distinguished career with the Internal Revenue Service for 10 years. As a veteran IRS Revenue Officer / Agent, he served as an Offer in Compromise Tax Specialist and Large Dollar Case Specialist.
He also collaborated with the U.S. Attorney’s office on undercover operations. Michael received several awards for his work and dedication as a IRS Agent.
During his tenure with the IRS, he was a Certified Tax Instructor who taught out of the Atlanta Regional IRS Training Offices. He also taught out of the local and district offices of the IRS. Mr. Sullivan trained many of the new IRS Agents.
Michael has been in private practice for the last 35 years in the field of Taxpayer Consultation for IRS Audit and Collection tax resolution issues. He often consults with corporations and individuals, which involves a wide range of tax issues.
Michael has worked many large complex cases for high net worth individuals and large corporations.
Mr. Sullivan is also registered with the Department of Business and Professional Regulation and has an approved class for IRS Collection Matters for Certified Public Accountants and Attorneys. Course # 0012279 expires 11/04/2019.
Mr. Sullivan also have course approval from the Florida Bar P1708462N to the members attorney and law firms who have need CPE credit for “IRS Tax Resolution”.
Mr. Sullivan has been a featured speaker in the credit card industry, student loan and the debt settlement vertical as well.
He also was one of the featured speakers at the Latino Tax Fest which also featured Nina Olsen, Nation Taxpayer Advocate.
Mr. Sullivan has also appeared on FOX BUSINESS NEWS
http://video.foxbusiness.com/v/4147654259001/tips-for-getting-through-to-the-irs/?#sp=show-clips
Former IRS Agent, Revenue Officer, Offer in Compromise Specialist, I Know the System
by Fresh Start Tax | Nov 18, 2014 | Tax Help
Tips for Year-End Gifts to Charity
There are several tax rules that you should know about before you give.
Here are six tips from the IRS that you should keep in mind:
1. Qualified charities.
You can only deduct gifts you give to qualified charities. Use the IRS Select Check tool to see if the group you give to is qualified. Remember that you can deduct donations you give to churches, synagogues, temples, mosques and government agencies. This is true even if Select Check does not list them in its database.
2. Monetary donations.
Gifts of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. You must have a bank record or a written statement from the charity to deduct any gift of money on your tax return.
This is true regardless of the amount of the gift. The statement must show the name of the charity and the date and amount of the contribution. Bank records include canceled checks, or bank, credit union and credit card statements.
If you give by payroll deductions, you should retain a pay stub, a Form W-2 wage statement or other document from your employer.
It must show the total amount withheld for charity, along with the pledge card showing the name of the charity.
3. Household goods.
Household items include furniture, furnishings, electronics, appliances and linens. If you donate clothing and household items to charity they generally must be in at least good used condition to claim a tax deduction.
If you claim a deduction of over $500 for an item it doesn’t have to meet this standard if you include a qualified appraisal of the item with your tax return.
4. Records required.
You must get an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. Additional rules apply to the statement for gifts of that amount.
This statement is in addition to the records required for deducting cash gifts. However, one statement with all of the required information may meet both requirements.
5. Year-end gifts.
You can deduct contributions in the year you make them. If you charge your gift to a credit card before the end of the year it will count for 2014.
This is true even if you don’t pay the credit card bill until 2015. Also, a check will count for 2014 as long as you mail it in 2014.
IRS Tips for Giving to Charities – Fresh Start Tax LLC
by Fresh Start Tax | Oct 30, 2014 | Tax Help
Various Tax Benefits Increase Due to Inflation Adjustments for the year 2015
For tax year 2015, the Internal Revenue Service announced today annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2014-61 provides details about these annual adjustments.
The tax items for tax year 2015 of greatest interest to most taxpayers include the following dollar amounts :
- The tax rate of 39.6 percent affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), up from $406,750 and $457,600, respectively. The other marginal rates – 10, 15, 25, 28, 33 and 35 percent – and the related income tax thresholds are described in the revenue procedure.
- The standard deduction rises to $6,300 for singles and married persons filing separate returns and $12,600 for married couples filing jointly, up from $6,200 and $12,400, respectively, for tax year 2014. The standard deduction for heads of household rises to $9,250, up from $9,100.
- The limitation for itemized deductions to be claimed on tax year 2015 returns of individuals begins with incomes of $258,250 or more ($309,900 for married couples filing jointly).
- The personal exemption for tax year 2015 rises to $4,000, up from the 2014 exemption of $3,950. However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $258,250 ($309,900 for married couples filing jointly). It phases out completely at $380,750 ($432,400 for married couples filing jointly.)
- The Alternative Minimum Tax exemption amount for tax year 2015 is $53,600 ($83,400, for married couples filing jointly). The 2014 exemption amount was $52,800 ($82,100 for married couples filing jointly).
- The 2015 maximum Earned Income Credit amount is $6,242 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $6,143 for tax year 2014. The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds and phaseouts.
- Estates of decedents who die during 2015 have a basic exclusion amount of $5,430,000, up from a total of $5,340,000 for estates of decedents who died in 2014.
- For 2015, the exclusion from tax on a gift to a spouse who is not a U.S. citizen is $147,000, up from $145,000 for 2014.
- For 2015, the foreign earned income exclusion breaks the six-figure mark, rising to $100,800, up from $99,200 for 2014.
- The annual exclusion for gifts remains at $14,000 for 2015.
- The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) rises to $2,550, up $50 dollars from the amount for 2014.
- •Under the small business health care tax credit, the maximum credit is phased out based on the employer’s number of full-time equivalent employees in excess of 10 and the employer’s average annual wages in excess of $25,800 for tax year 2015, up from $25,400 for 2014.
Details on these inflation adjustments and others not listed in this release can be found in Revenue Procedure 2014-61, which will be published in Internal Revenue Bulletin 2014-47 on Nov. 17, 2013.
The pension limitations for 2015 were announced on Oct. 23, 2014
by Fresh Start Tax | Sep 20, 2014 | Tax Help
IRS and School Tax Credits, What You Need to Know, Fresh Start Tax
Back-to-School Reminder for Parents and Students: Check Out College Tax Credits for 2014 and Years Ahead
Parents and students, now is a good time to see if you can will qualify for either of two college tax credits or any of several other education-related tax benefits when they file their 2014 federal income tax returns.
In general.
The American opportunity tax credit and lifetime learning credit are available to taxpayers who pay qualifying expenses for an eligible student.
Eligible students include the taxpayer and his or her spouse and dependents.
The American opportunity tax credit provides a credit for each eligible student, while the lifetime learning credit provides a maximum credit per tax return.
Though a taxpayer often qualifies for both of these credits, he or she can only claim one of them for a particular student in a particular year.
Claimed on Form 8863, these credits are available to all taxpayers, both those who itemize their deductions on Schedule A and those who claim a standard deduction.
For those eligible, including most undergraduate students, the American opportunity tax credit will generally yield the greater tax savings.
Alternatively, the lifetime learning credit should be considered by part-time students and those attending graduate school.
Both credits are available for students enrolled in an eligible college, university or vocational school, including both nonprofit and for-profit institutions.
Neither credit can be claimed by a nonresident alien, a married person filing a separate return or someone claimed as a dependent on another person’s return.
A student will receive a Form 1098-T from their institution by the end of January of the following year (Jan. 31, 2015 for calendar year 2014).
This tax form will show information about tuition paid or billed along with other information.
Amounts shown on this form may differ from amounts taxpayers are eligible to claim for these tax credits.
Taxpayers should see the instructions to Form 8863 and Publication 970 for details on properly figuring allowable tax benefits.
Many of those eligible for the American opportunity tax credit qualify for the maximum annual credit of $2,500 per student.
Students can claim this credit for qualified educational expenses paid during the entire tax year for a certain number of years:
- The credit is only available for 4 tax years per eligible student.
- The credit is available only if the student has not completed the first 4 years of post-secondary education before 2014.
Here are some more key features of the credit:
Qualified education expenses are amounts paid for tuition, fees and other related expenses for an eligible student.
Other expenses, such as room and board, are not qualified expenses.
The credit equals 100 percent of the first $2,000 spent and 25 percent of the next $2,000.
That means the full $2,500 credit may be available to a taxpayer who pays $4,000 or more in qualified expenses for an eligible student.
The full credit can only be claimed by taxpayers whose modified adjusted gross income (MAGI) is $80,000 or less.
For married couples filing a joint return, the limit is $160,000. The credit is phased out for taxpayers with incomes above these levels.
No credit can be claimed by joint filers whose MAGI is $180,000 or more and singles, heads of household and some widows and widowers whose MAGI is $90,000 or more.
Forty percent of the American opportunity tax credit is refundable.
This means that even people who owe no tax can get an annual payment of up to $1,000 for each eligible student.
The lifetime learning credit of up to $2,000 per tax return is available for both graduate and undergraduate students.
Unlike the American opportunity tax credit, the limit on the lifetime learning credit applies to each tax return, rather than to each student.
Also, the lifetime learning credit does not provide a benefit to people who owe no tax.
Though the half-time student requirement does not apply to the lifetime learning credit, the course of study must be either part of a post-secondary degree program or taken by the student to maintain or improve job skills.
Other features of the credit include:
- Tuition and fees required for enrollment or attendance qualify as do other fees required for the course. Additional expenses do not.
- The credit equals 20 percent of the amount spent on eligible expenses across all students on the return. That means the full $2,000 credit is only available to a taxpayer who pays $10,000 or more in qualifying tuition and fees and has sufficient tax liability.
Income limits are lower than under the American opportunity tax credit.
For 2014, the full credit can be claimed by taxpayers whose MAGI is $54,000 or less. For married couples filing a joint return, the limit is $108,000.
The credit is phased out for taxpayers with incomes above these levels. No credit can be claimed by joint filers whose MAGI is $128,000 or more and singles, heads of household and some widows and widowers whose MAGI is $64,000 or more.
Y
ou can use the IRS’s Interactive Tax Assistant tool to help determine if you are eligible for these benefits.
The tool is available on IRS.gov.
Eligible parents and students can get the benefit of these credits during the year by having less tax taken out of their paychecks.
They can do this by filling out a new Form W-4, claiming additional withholding allowances, and giving it to their employer.
There are a variety of other education-related tax benefits that can help many taxpayers. They include:
Scholarship and fellowship grants — generally tax-free if used to pay for tuition, required enrollment fees, books and other course materials, but taxable if used for room, board, research, travel or other expenses.
Student loan interest deduction of up to $2,500 per year.
Savings bonds used to pay for college — though income limits apply, interest is usually tax-free if bonds were purchased after 1989 by a taxpayer who, at time of purchase, was at least 24 years old.
Qualified tuition programs, also called 529 plans, used by many families to prepay or save for a child’s college education.
Taxpayers with qualifying children who are students up to age 24 may be able to claim a dependent exemption and the earned income tax credit.
The general comparison table in Publication 970 can be a useful guide to taxpayers in determining eligibility for these benefits. Details can also be found in the Tax Benefits for Education Information Center on IRS.gov.
