by steve | Jan 24, 2012 | Back Taxes, IRS Payment Plans
IRS Payment Agreements, IRS Installment Agreements, Payment Plans – Making Payments to the IRS on your back taxes
After 10 years of working for the IRS and over 28 years of private practice do not expect the IRS do you any favors if you are seeking a IRS payment plan, installment agreement or a pay off plan. IRS will always do what is in their best interest and that is NEVER in your best interest.
Keeping that in mind and hire a good tax professional so you do not get bullied around.
If you are trying to get a Payment Agreement, Installment Agreement, Payment Plan with the IRS and you do not fit into the National Standards that the IRS insists on you will want to read about the one year rule.
Most taxpayers have no idea what they are doing when they call the IRS and want to set up a payment agreement, installment plan, or a payment agreement.
There are so many options available to them and that’s is why it is best to call a experienced tax professional.
There are five different types of agreements, payment plans and IRS will put you only into the agreement that they feel is best for the IRS.
The IRS is not looking for your best interest in this tax matter, they are only looking what is in the best interest of the federal government and as a result taxpayers get ripped off by not understanding all the rules that govern agreements.
With this now said there is a IRS one year rule that helps the taxpayer.
Most taxpayers when they call the IRS do not met the national standards tests for income and expenses. Something is always out of balance. IRS will say that is too bad and try to extract money from you that you just do not have.
You should be very familiar with the National Standards Test before calling IRS. You can check out more on our site.
The one year rule for payment plans or Installment agreements can work to help you.
One Year Rule: Insist in this and do not be bullied!!!
Taxpayers who cannot full pay their accounts within five years may be given up to one year to modify or eliminate excessive necessary expenses. By modifying or eliminating some conditional expenses, a taxpayer may be able to full pay the liability plus accruals within the five-year limit. This would enable a taxpayer to retain some conditional expenses.
Reminder:
The One Year Rule is not applicable to corporations, partnerships, Limited Liability Companies (LLC) where the LLC is identified as the liable taxpayer, or any Business expenses.
So when the IRS tells you your car payment is to high or your rent or mortgage is too much ask to speak to the supervisor and request the one year rule.
IRS Payment Agreements,Installment Agreements, Payment Plans call us for more information today.
by steve | Sep 10, 2010 | IRS Tax Advice
Need a Installment or payment agreement with the IRS, Call us 954-492-0088
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You should know the type of agreement’s offered by the IRS Types of Installment Agreements
When taxpayers are unable to pay a liability in full, an installment agreement will be considered.
There are various types of installment agreements that may be granted to taxpayers:
- Guaranteed Installment Agreement – Taxpayers with Individual income tax liabilities of $10,000 or less (exclusive of penalties and interest).
- Streamline Installment Agreements – Taxpayers with liabilities of $25,000 or less.
- In-Business Trust Fund Express Installment Agreements;
- Manually Monitored Installment Agreements
- Partial Payment Installment Agreements
- Direct Debit Installment Agreements
- Payroll Deduction Installment Agreements
- Installment agreements involving Limited Liability Companies
Depending on your situation there is one best for you. We can help with that decision to give you the best possible advantage.
For details about these types of agreements, contact Fresh Start Tax www.freshstarttax 1-866-700-1040 Video conferencing available.
by steve | Jun 2, 2010 | IRS Tax Advice
Seizures by the Internal Revenue Service Last Year the IRS seized over 600 Homes, businesses and vehicles
Yes the Internal Revenue Service can seize your Home, Cars , Business and Bank Accounts This is always the last choice of last resort and is not usually not done unless there is a fairly serious problem that has gone unresolved for quite some time. If you owe on a continual basis your odds go up that a seizure may be coming forth. For the most part, the IRS can take any asset it chose too.IRS enforcement actions have increased in the last several years. The IRS has hired more Revenue Officers so expect enforcement action to set up even more in the upcoming season.See the Fresh Start Tax news release on this matter and subject.Go on our site into the press release tab.
Before the IRS conducts a seizure, they will normally perform an investigation to determine the equity in the item to be seized. In almost all cases, the IRS will not seize the asset unless there is sufficient equity in property that would warrant the seizure and be in the best interest of the federal government.
IRS must have sent you a final notice, with appeal rights that warrant a hearing officer for a seizure to take place.
Over the past years, Congress has made it much more difficult for the Internal Revenue Service to seize personal residences. Except in very special cases, it is unlikely that the IRS Collection Division will consider seizing your home. Rental properties or vacation homes, RV or boats are a different story and if there is sufficient equity can be seized without great difficulty.All these cases can usually be resolved with a solid representative working along with you the taxpayer. Most all of these situations can be avoided.
Businesses may be seized as well, but again, it is the exception, not the rule. The IRS must get a writ from a Federal judge. The IRS also must investigate to determine if there are any lien holders,mortgages or UCC’s against property in the business. Then, if the IRS has to go to sale, it must conduct an auction of every item in the business. I have personally seized over 300 businesses or homes as a former Revenue Officer. It is not something I wanted to do but in most cases the taxpayer gave you no choice. In today?s economic environment, it is very rare to see a home or business seized. The IRS may try to force the business owner to shut down by continually levying receivables or seizing bank accounts or making legal threats but a seizure today is pretty unlikely. The Service looks for other solutions first. the key is to stay current so you at least are making a solid effort. If you cannot be current, you should ask yourself, is it time to close the doors.
Cutting to the chase. When you receive certified mail of a Notice of Intent to Levy, you had better react fast by contacting IRS or hiring a LICENSED tax professional like the staff at Fresh Start Tax to represent you or your company and your best interest. Do not wait to the IRS to act first, be pro-active. If you owe delinquent taxes, the IRS is going after your bank accounts, your wages and your assets. They are the worlds most powerful collection agency located in your backyard. . By contacting Fresh Start Tax today we can work out a deal or settlement to fits your needs and your budget needs. If you wait, IRS wins. Make a call to us today so you never have to speak with the IRS ever again. We are former IRS agents that know our way around the block. As a side note, IRS can seize your whole pension plan and IRA as well.
We can set you up with a settlement, business installment agreements, Offer in Compromise, installment agreements, abatement of penalties and interest, or place you in a hardship if you qualify for the programs. We simply are the best.
by steve | Dec 21, 2009 | Tax Help, Uncategorized
Most open IRS cases are closed in one of two ways, via a hardship or an installment agreement. How does the IRS determine how they are going to close your case? By simply taking a Form 443-A or Form 433-F financial statement from you, the taxpayer. Based on that financial statement and the documentation that goes along with that statement, the IRS will make a determination on your case.
If your case does not fall under the hardship rules, the installment agreement will be a payment plan that allows you to pay over a period of time. The IRS has the right to review the payment agreement from time to time, but most agreements end with the statute of limitations expiring on the case. So, unless your AGI (Adjusted Gross Income) increases significantly, these cases will die slowly throughout the years of the statute.
Why it is important to get a payment agreement as soon as possible:
1. It stops collection action against you for a long period of time;
2. It allows you to make affordable monthly payment to the IRS;
3. It gets your life back in order without the threat of IRS collection;
4. The IRS will release any levy they filed during the time they were working your case.
The IRS offers two types of installment agreements, streamlined and long term. After that, the Revenue Officer Agreement comes into play.
The Streamline Agreement
The streamline agreement can be obtained quickly. The rules for the streamline agreement come into play if the tax due is under $25,000, including all penalties and interest. You must have all your tax returns filed and have current withholding tax taken out or estimated tax paid. Under the streamline agreement the balance must be paid within 60 months or before the statute of limitation ends. Fresh Start Tax can get these cases resolved immediately. We can usually get a streamline process set-up within a one hour time period. One benefit of a streamline agreement is that no financial statement is required.
The Long Term Agreement
The long term agreement has several names, installment agreement or part pay agreement are the most common. The IRS requires a completed Form 433-A or Form 433-F, financial statement, depending on which division is working the case. The ACS unit requires a 433-F and the local or high dollar unit requires a 433-A. These cases are looked over more carefully and require a lot of documentation. The IRS will require bank statements, pay stubs, copies of all bills and possibly even cancelled checks. The IRS will also follow the National Standards Program which allows a limited amount of expenses per category. It is not recommended that you begin this process yourself with the IRS. It can be difficult to determine what they allow and what they do not. A professional can negotiate a better deal. The key to getting a good part pay agreement is packaging. At Fresh Start Tax we are the best at handling this process.
Revenue Officer Agreement
Should your case not be closed by the Automated Collection System, your case will head out to the local field branch of the IRS. A Revenue Officer is assigned the case. Their job, if it involves an installment agreement, is to secure a 433-A, a very long detailed financial statement complete with all documentation. If it gets to this point, you want IRS representation by trained professionals or you will be taken to the cleaners.
Fresh Start Tax is here for you.
