by Fresh Start Tax | May 30, 2012 | Back Taxes, IRS Tax Debt, IRS Tax Problem, Offer in Compromise, Tax Lawyer
IRS Fresh Start Initiative & Program – Get a Fresh Start with the Internal Revenue Service NOW!
Tax Resolution Service Company A+ BBB Rating, Tax Resolution Firm, Former IRS 1-866-700-1040
Yes, the IRS is actually doing something very positive to help taxpayers that are experiencing tax problems.
I am a Former IRS Agent and Teaching Instructor with the Internal Revenue Service and it is still hard to believe.
There are several new initiatives the IRS now has the table that is changing the ways people are resolving back tax issues.
I have been working IRS cases for over 38 years and to date this is one of the biggest policy shifts I have ever seen. The flood gates are wide open for Offers in Compromise.
IRS wants to now settle cases. Hard to believe but it is true.
IRS has reduced the age old firm guidelines to reasonable standards so that thousands of taxpayers/clients may now qualify to get their cases settled for cheap and their tax liens released.
In a nutshell, IRS has reduced the asset requirements and completely modified monthly standards of income and expense elements.
As a result, clients that could never qualify for an OIC or tax debt settlements are now excellent settlement candidates.
This IRS announcement focuses on the financial analysis used to determine which taxpayers qualify for an Offer in Compromise.
It is possible for some taxpayers to resolve their tax problems and back taxes in as little as two years compared to four or five years in the past.
The changes announced include:
1. Revising the calculation for the taxpayer’s future income. This is a massive change.
2. Allowing taxpayers to repay their student loans. This could cut a settlement payment down some $30,000.
3. It allows taxpayers to pay state and local delinquent back taxes,
4. It also allow for the expanding the Allowable Living Expense allowance category and amount.
The IRS finally recognizes that taxpayers are still struggling to pay their bills and debt so the IRS has been working to put in place common-sense changes to the OIC program to more closely reflect real-world situations.
When the IRS usually determines and calculates a taxpayer’s reasonable collection potential, the IRS will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years.This is the major change that will save the taxpayers thousands and thousands of dollars.
Key Point to Remember – All offers in compromise ( OIC ) must be fully paid within 24 months of the date the offer is accepted.
Other changes to the OIC program include narrowed parameters and clarification of when a dissipated asset will be included in the calculation of reasonable collection potential.
In addition, equity in income producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.
Notable Area – Allowable Living Expenses:
The Allowable Living Expense standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay. The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas.
These standards are used when evaluating installment agreement and offer in compromise requests.
The National Standard miscellaneous allowance has been expanded to include additional items.
Taxpayers can use the miscellaneous allowance for expenses such as:
1. credit card payments and
2. bank fees and charges.
Guidance has also been clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education. In addition, payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.This is another in a series of steps to help struggling taxpayers under the Fresh Start initiative.
Changes made to the Federal Tax Lien Policy
The IRS made changes to federal tax lien policies in 2011 and expanded the threshold for small businesses to resolve tax issues through installment agreements. And, earlier this year, the IRS increased the threshold for a streamlined installment agreement allowing individual taxpayers to set up an installment agreement without providing a significant amount of financial information.
More changes, Penalty Relief.
The Internal Revenue Service has expanded its “Fresh Start” initiative to help struggling taxpayers who owe taxes. The following four tips explain the expanded relief for taxpayers.
Penalty relief Part of the initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax bill.
The Fresh Start Penalty Relief Initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes. Interest still applies on the 2011 taxes from April 17, 2012 until the tax is paid, but you won’t face failure-to-pay penalties if you pay your tax, interest and any other penalties in full by Oct. 15, 2012.
The penalty relief is available to two categories of taxpayers:
1. Wage earners who have been unemployed at least 30 consecutive days
during 2011 or in 2012 up to this year’s April 17 tax deadline.
2. Self-employed individuals who experienced a 25 percent or greater
reduction in business income in 2011 due to the economy.
The IRS could have expanded it policies on late filers but chose to ignore the largest penalty the IRS charges. I would have loved to see IRS loosen their belts here.
Qualifications for Penalty Relief
To qualify for this penalty relief, your adjusted gross income must not exceed $200,000 if married filing jointly or $100,000 if your filing status is single, married filing separately, head of household, or qualifying widower. Your 2011 balance due can not exceed $50,000.
Taxpayers who qualify need to complete a new Form 1127A to request the 2011 penalty relief. The new form is available on www.irs.gov or by calling 1-800-829-3676 (TAX FORM).
Installment agreements,part payment plans or installment agreements
An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date. The Fresh Start provisions give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay.
The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000. This is very huge.
This option requires limited financial information, meaning far less burden to the taxpayer. The maximum term for streamlined installment agreements has been raised to six years from the current five-year maximum.
If your debt is more than $50,000, you’ll still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F).
You can also pay your balance down to $50,000 or less to qualify for this payment option.
With an installment agreement, you’ll pay less in penalties, but interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, you must agree to monthly direct debit payments.
Call us today and we can answer all your questions. If you need help with any back tax issues , tax debt settlements, or unfiled tax returns we are the firm to turn to for tax relief.
Our team of Former IRS Agents, Tax Attorneys and CPA’s are some of the best in the business.
IRS Fresh Start Initiative & Program – Get a Fresh Start with the Internal Revenue Service NOW!
by Fresh Start Tax | May 4, 2012 | Back Taxes, IRS Notice or Letter, IRS Tax Debt, IRS Tax Problem, Representation, Tax Help, Tax Settlements
IRS Letter/Notice 1058 – Former IRS Agents – Insider Tips – Tax Relief on Back Taxes
Have Former IRS agents stop IRS today. Over 60 years with the IRS in the local, district and regional offices of the IRS.
Free tax consults 1-866-700-1040.
Have Former IRS Agents and Managers stop the IRS with the filing of a Collection Due Process, Right to Hearing and get you the time and settlement you need to go on with your life.
Stop the back tax problem with one phone call from a team member of Fresh Start Tax LLC. call 1-866-700-1040.
You can speak directly to the tax professionals handling your case.
We have worked and closed thousands of cases, IRS Letter/Notice 1058 since 1982. We are “A” rated by the BBB.
Call us for a free tax consult with a true tax professional. You will either speak to a Board Certified Tax Attorney, CPA or Former IRS Agents.
If you have just received a IRS Letter 1058 or LT- 11 this is a Final Notice from the Internal Revenue Service usually sent by certified mail. This Final Notice lets you know that you have not addressed your back taxes.
If you do not respond to this Letter/Notice 1058 the Internal Revenue Service has definitive plans to send out a bank levy, a wage levy sometimes called a wage garnishment and will probably file a Federal Tax Lien within 30 days from the date shown on the letter. You can stop this action by calling the IRS with a plan of action.
IRS will always send out a CP 504 letter/notice before the filing of the last and Final Notice, Form 1058 Collection due Process, Right to a Hearing Notice.
What to do when you receive this letter.
The first thing you always do is to take note of the final date allowed to contact the IRS.
You can either pay the balance you owe on your back taxes, or contact the IRS using the phone number on the notice to setup an IRS Installment Agreement, Payment Plan or have ask to have your case put into a tax hardship.
You will be required to fill out a form 433F which is a detailed IRS financial statement before IRS decides on how your tax case on your back taxes will be closed.
If you disagree with the Notice/Letter 1058 and you believe the notice is incorrect, you have the right to an appeal hearing. If you have sent prior letters those do not constitute a formal appeal.You must do so within your notice of appeal dates only.
Insider Tax Tips:
1. Always have a third party review your financial statement to make sure it makes sense before giving it to the Internal Revenue Service,
2. Make sure all your tax returns are filed before calling the IRS,
3. Make sure you have enough withholding being taken out or your ES payments are up to date.
4. If you are going to hire any firm make sure you use Former IRS Agents who know how the system works,
5. Be sure not to be ripped off. Check the BBB rating of any and all companies you may want to consider.
by Fresh Start Tax | Apr 9, 2012 | IRS Payment Plans, Representation, Tax Help
How to Make Payments to the Internal Revenue Service
There are several different ways to pay your IRS tax liability. If you do not have the money at this time this is not a problem. We can solve all IRS tax problems.
Call us at Fresh Start Tax LLC 1-866-700-1040 and we can work out a tax settlement for you. We can get you tax relief.
For those of you who can or want to pay right now here are there different payment options you may want to consider:
1. You could pay by credit or debit card.
You can use all major cards (American Express, Discover, Master Card or Visa) to pay your federal taxes. For information on paying your taxes electronically, including by credit or debit card, go to www.irs.gov/e-pay or see the list of service providers below.IRS takes everything but barter.
There is no IRS fee for credit or debit card payments. If you are paying by credit card, the service providers charge a convenience fee based on the amount you are paying.
Should you chose to pay by by debit card, the service providers charge a flat fee of $3.89 to $3.95. Do not add the convenience fee or flat fee to your tax payment.
The processing companies are:
WorldPay US, Inc.:
To pay by credit or debit card: 888-9PAY-TAX (888-972-9829), www.payUSAtax.com
Official Payments Corporation:
To pay by credit or debit card: 888-UPAY-TAX (888-872-9829), www.officialpayments.com/fed
Link2Gov Corporation:
To pay by credit or debit card: 888-PAY-1040 (888-729-1040), www.pay1040.com
If you need additional time to pay call us to get any easy payment plan or installment agreement from the IRS.
We can get a nice easy payment plan for you today.
by steve | Jun 3, 2010 | IRS Tax Advice
Eight ( 8) great tips if you owe money to the IRS on back taxes
Without question, these tips sum up everything you will need to know about owing monies to the IRS on your back individual income taxes.
1. When you get a tax bill from the IRS on back taxes, you are expected to promptly pay the tax owed including any additional penalties and interest. If you are unable to pay the amount due, it is often in your best interest to get a loan to pay the bill in full rather than to make installment payments to the Internal Revenue Service.
2. Most taxpayers do not know that they can also pay the bill by credit card. The nice thing about this, you can rack up some extra points on your credit card. To pay by credit card contact either Official Payments Corporation at 800-2PAYTAX, www.officialpayments.com, Link2Gov at 888-PAY-1040, or www.pay1040.com. These links get you right into the system to get your back tax situation cleared up immediately.
3. Another important factor to keep in mind is the fact that the interest rate on a credit card or bank loan may be lower than the combination of interest and penalties imposed by the Internal Revenue Code and by Congress. The IRS sends quarterly notifications on how much the interest rate will be. It fluctuates quarter by quarter.
4. You can also pay the Internal Revenue Service balance owed by electronic funds transfer, check, money order, cashier’s check or cash. To pay by using electronic funds transfer you can take advantage of the Electronic Federal Tax Payment System by calling 800-555-4477 or 800-945-8400 or online at www.eftps.gov. Should you have questions about this option feel free to call us at any time.
5. An installment agreement or part pay agreement by you the taxpayer may be requested if you cannot pay the tax liability in full. This is an agreement between you and the Internal Revenue Service for the collection of tax and the amount due in monthly installment payments. To be eligible for an installment agreement, you must first file all returns that are required and be current with estimated tax payments. The IRS will never enter into a payment agreement unless ALL tax returns have been filed.
6. If you owe $25,000 or less in combined tax, penalties and interest, you can request an installment agreement using the web-based application called Online Payment Agreement found at IRS.gov. Once again, all tax returns on any back years MUST be filed or IRS will not accept any agreement. These are easy, simple and free.
7. Another option is for you to complete and mail to Internal Revenue Service, Form 9465, Installment Agreement Request, along with your bill in the envelope that you have received from the Internal Revenue Service. The IRS will inform you usually within 30 days whether your request is approved, denied, or if additional information is needed. If the amount you owe is $25,000 or less, provide the monthly amount you wish to pay with your request. At a minimum, the monthly amount you will be allowed to pay without completing a Collection Information Statement, Form 433 A,B,or F, ( collection information statement ) is an amount that will full pay the total balance owed within 5 years or 60 months. Many times this is the single best option.
The taxpayer may still qualify for an installment agreement if you owe more than $25,000, but a Form 433F, Collection Information Statement, is required to be completed before an installment agreement can be considered. This financial statement will have to be fully documented with copies of pay stubs and all bills to support each and every expense. If your balance is over $25,000, consider your financial situation and you should propose the highest payment amount possible, as that is how the IRS will arrive at your payment amount based upon your financial information. Caution should be used when giving the IRS a financial statement. If the IRS is not comfortable with the terms and conditions of your proposal, you have given them a road map to your assets.
8. If a payment agreement is approved, a one-time user fee is charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals taxpayers with incomes at or below certain levels, a reduced fee of $43 will be charged, and is automatically figured based on your income.
Keep in mind if you cannot afford to pay your taxes at any time, the IRS has another program where the Service can suspend your case because it is considered a HARDSHIP. This is also called Currently Not Collectible (CNC) Check out our website for the topic and see if you qualify. If you do, Fresh Start Tax can help walk you through the process to make this happen.
by steve | Jan 6, 2010 | IRS Tax Advice
Many taxpayers get a tax refund from the IRS each year. However, if you owe tax, here are nine tips on how to deal with your problem.
Tip #1. If you get a bill for late taxes, you are expected to promptly pay all the taxes owed including any additional penalties and interest. If you are unable to pay the amount due, it is often in your best interest to get a loan or borrow the funds to pay the bill in full rather than to make installment payments to the IRS.
Tip #2. You can also pay the bill with your credit card. Plus you get points by using your credit card. To pay by credit card contact either Official Payments Corporation at 800-2PAYTAX, www.officialpayments.com, Link2Gov, 888-PAY-1040 or www.pay1040.com. It is better to owe the credit card company than it is to owe Uncle Sam.
Tip #3. The interest rate on a credit card or bank loan may be lower than the combination of the interest and penalties imposed by the Internal Revenue Code. The IRS charges a “failure to pay” penalty which is in addition to the interest which makes the tax amount due even higher.
Tip #4. You can also pay the balance owed by electronic funds transfer, check, money order, cashier’s check or cash. The IRS loves CASH. To pay by using electronic funds transfer you can take advantage of the Electronic Federal Tax Payment System by calling 800-555-4477 or 800-945-8400 or go online at www.eftps.gov.
Tip #5. An installment agreement may be requested if you cannot pay the liability in full. This is an agreement between you and the IRS for the collection of the amount due in equal monthly installment payments. To be eligible for an installment agreement, you must first file all returns that are required and be current with estimated tax payments. If over $25.000, the IRS will require a documented financial statement sent and reviewed by the ASC UNIT.
Tip #6. If you owe $25,000 or less in combined tax, penalties and interest, you can request an installment agreement using the web-based application called Online Payment Agreement, found at IRS.gov. This is very simple and painless.
Tip #7. You can also complete and mail in IRS Form 9465, Installment Agreement Request, along with your bill in the envelope that you have received from the IRS. The IRS will inform you usually within 30 -45 days whether your request is approved, denied, or if additional information is needed. If the amount you owe is $25,000 or less, provide the monthly amount you wish to pay with your request. At a minimum, the monthly amount you will be allowed to pay without completing a Collection Information Statement, Form 433-A or 433-F, is an amount that will fully pay the total balance owed within 60 months. The IRS will not proceed if over 60 months.
You may still qualify for an installment agreement if you owe the IRS more than $25,000, but Form 433-F, Collection Information Statement, is required to be completed before an installment agreement can be considered. This 433-F is used by the ACS Unit. If your balance is over $25,000, consider your financial situation and propose the highest expenses possible, as that is how the IRS will arrive at your payment amount based upon your financial information.
Tip #8. If an agreement is approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with incomes at or below certain levels, a reduced fee of $43 will be charged, and is automatically figured based on your income.
Tip#9. Make sure your withholding is adjusted so you do not have the same problem again.
Tip #10. Fresh Start Tax can answer any questions you have regarding all of your IRS issues.
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Fresh Start Tax is one of the premier tax resolution firms in the country. We deal with all types of civil cases including individuals, businesses, non-profits, partnerships and corporations. We have staff that specialize in every facet of IRS representation. We know all the IRS tax strategies because of our extensive IRS working backgrounds. Some of our many specialties include the following:
- Immediate Tax Representation
- Offers in Compromise/Settlements
- Immediate Release of Bank Garnishments or Wage Levies
- IRS Notices/Bill of Intent to Levy or Final Notices
- IRS Tax Audits, Large and Small Dollar
- Hardships Cases, Payment Plans, Installment Agreements
- Innocent Spouse Relief
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Trust Fund Penalty Cases/6672
- Non-filers, never filed, old and past due tax returns
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- Our staff has over 135 years of professional tax representation experience collectively
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