by Fresh Start Tax | May 25, 2012 | Tax Help, Uncategorized
New Offer in Compromise Program – Get tax relief in Ft.Lauderdale, Miami, West Palm Beach 954-492-0088
The local Miami, Ft.Lauderdale and West Palm Beach IRS offices are soon to be flooded with Offer in Compromises,Tax Debt Settlements
The IRS Agents have no idea what they are in for. The flood gates have been released.
A more flexible program is now in place and it is called the Fresh Start Program, I think they developed the idea after our name, Fresh Start Tax LLC.
By the way we are former IRS Agents and Managers who know this program inside and out. We taught this program at the IRS.
With the new policy in place, thousands upon thousands of taxpayers will be looking to settle their IRS tax debt.
In the past IRS received about 56,000 offers a year with the acceptance rate about 30%
I would expect that number to triple and probably have a 50% acceptance rate.
Finally, pennies on a dollar is now possible for taxpayers .
In general, an Offer in Compromise is an legal agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or a through payment agreement.
The New IRS Policy number IR-2012-53 which was introduced on May 21, 2012.
The Internal Revenue Service announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past. This remains to be seen depending on the case load. The normal time for an offer once in the system was between 6-12 if you were lucky.
This announcement focuses on the financial analysis used to determine which taxpayers qualify for an OIC. This announcement also enables some taxpayers to resolve their tax problems in as little as two years compared to four or five years in the past.
In certain circumstances, the changes announced today include:
1.Revising the calculation for the taxpayer’s future income.
2.
Allowing taxpayers to repay their student loans.
3.
Allowing taxpayers to pay state and local delinquent taxes.
4.
Expanding the Allowable Living Expense allowance category and amount.
The IRS recognizes that many taxpayers are still struggling to pay their bills so the IRS Department of Treasury has been working to put in place common-sense changes to the OIC program to more closely reflect real-world situations.
Changes to the Offer in Compromise Program:
When the IRS calculates a taxpayer’s reasonable collection potential or RCP, it 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.
All offers must be fully paid within 24 months of the date the offer is accepted. The Form 656-B, Offer in Compromise Booklet, and Form 656, Offer in Compromise, has been revised to reflect the changes.You can download the forms on our website.
Other changes to the 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.
Allowable Living Expenses allowed by the IRS for Offers in Compromise.
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 which were never allowed in the past.
IRS has provided some guidance and 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.
Should you have any questions call us today. Have experienced Former IRS Agents answer your questions.
New Offer in Compromise Program – Get Tax Relief in Ft.Lauderdale, Miami, West Palm Beach
by Fresh Start Tax | May 7, 2012 | Tax Help, Uncategorized
If you are need a Offer in Compromise/Tax Debt Settlement you may first want to see if you qualify for the Offer in Compromise Program/ Tax Debt Settlement before running off and filing to settle your back taxes.
Most taxpayers simply do not qualify for the Offer Program and get ripped off from tax resolution companies claiming they have high success rates and these back taxes. 12,000 Offer cases are accepted by the IRS last year and over 58,000 were filed. My guess thousands of taxpayers were ripped off into the filing of Offers in Compromise that never had a chance.
I recommend qualifying your case with Fresh Start Tax LLC, a tax company who knows the system. Save yourself time and a lot of money.
Call us today for a free tax consult and hear more. 1-866-700-1040
We are IRS Tax Experts and know the Offer in Compromise Program like the back of our hand.
This that said, we have never seen the Offer in Compromise Program so backed up, it is a huge mess.
The Offer in Compromise cases are just sitting in piles being unattended to because of the large volume of cases that the IRS has received.
The combined impact of a weak economy and efforts by the Internal Revenue Service (IRS) to promote the Offer in Compromise (OIC) Program has increased the number of requested offers by 28 percent between Fiscal Year 2007 and FY 2011.
At the very same time sadly, the IRS resources available to work the offers in compromise have decreased, creating a huge inventory.
These are the findings of a report publicly released by the Treasury Inspector General for Tax Administration (TIGTA).
An tax settlement program called the Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS to settle a tax liability for payment of less than the full amount owed.
TIGTA’s audit was initiated to assess the effectiveness of the OIC Program to timely process requests, consistently apply OIC guidelines, accurately measure Program results, and effectively promote the Program.
TIGTA reviewed a statistically valid sample of offers and found that the IRS did not process all offers timely.
In 73 (74 percent) of 99 offers, the IRS failed to contact the taxpayer by the promised date. The report estimates that 9,509 taxpayers who submitted offers between July 1 and December 31, 2010, may not have been contacted when promised. A promised date, will never happen.
Additionally, as of October 25, 2011, there were 7,472 unassigned offers in holding ( WOW )queues awaiting assignment to OIC staff.
TIGTA found that one processing site had more than four times as many unassigned offers from self-employed taxpayers compared with the other site, and 37 percent of those offers were more than six months old.
TIGTA auditors also determined that an incorrect date was used when offers were returned to the IRS because of some IRS processing errors. The report estimates that the wrong date may have been used for 712 taxpayers who submitted offers between July 1, 2010, and December 31, 2010. Finally, the IRS does not have formal performance measures for the streamlined offer process, which allows IRS employees to make taxpayer contact by telephone rather than by mail so they can quickly make a determination on an OIC request.
TIGTA recommended that the IRS revise OIC processing procedures, train employees, and add a formal performance measure for the streamlined offers or apply the streamlined process to all offers.
IRS officials agreed with TIGTA’s recommendations and the report’s outcome measures and plan to take appropriate corrective actions. Specifically, the IRS plans to:
1) try to better inform taxpayers by lengthening the time by which they will be contacted or issued an interim letter,
2) initiate reassignment of offers between IRS sites as needed, and
3) apply most aspects of the streamlined process to the remainder of the OIC cases.
If you need to hear the truth about Offers in Compromise, Tax Debt Settlement call us today.
We have on staff, Tax Attorneys, CPA’s and Former IRS agents.
by Fresh Start Tax | Apr 17, 2012 | IRS Penalties, IRS Tax Advice, Tax Lawyer
Get rid of IRS Penalties and Interest 1-866-700-1040
Have IRS Insiders and Former IRS Agents work for you. If you have reasonable cause, we will get your money back, its that simple.
There are several ways to remove IRS Penalties and Interest. As Former IRS Agents and Managers we know all the techniques and best case practices to get rid of IRS Penalties and Interest.
Call us today at 1-866-700-1040 with your specific case and we will let you know the best way to abate, get rid of or remove IRS penalties and interest.
When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both.
Failure to File, Failure to Pay:
Here are important points about the two different penalties you may face if you file or pay late.
1. If you do not file by the deadline or due date of the tax return, you will face a failure to file penalty.
If you do not pay by the due date, you could face a failure to pay penalty.
2. The failure-to-file penalty is generally more than the failure to pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options. Always file your tax return timely. This is the highest penalty the IRS assesses.
3. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will cannot exceed 25 percent of your unpaid taxes. It therefore tops out at 25%. Interest is assessed on penalties as well.
4. Exception – If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
5. If you do not pay your taxes by the due date, you will generally have to pay a failure to pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid.
This penalty can be as much as 25 percent of your unpaid taxes. This penalty also tops out as well.
6. If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure to pay penalty if the remaining balance is paid by the extended due date.
7. If both the failure to file penalty and the failure to pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty.
However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
8. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.
See our website for a comprehensive list of reasonable causes for penalty abatement.
Call us today, 1-866-700-1040. On staff, Board Certified Tax Attorneys, CPA’s and Former IRS Agents.
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 admin | Apr 3, 2012 | Innocent / injured Spouse, IRS Tax Problem, Tax Help, Tax Lawyer
The IRS are changing the rules about Innocent Spouse and injured Spouse cases making it much easier for cases to be accepted.
For many years IRS has played hardball regarding Innocent and Injured Spouses cases.
With a host of taxpayer complaints IRS has lighten some of the requirements to get these cases through the system. The complaint worked.
As former IRS Agents and Managers we have worked hundreds of cases.
To see if you qualify for Innocent or Injured Spouse tax relief call us today. 1-866-700-1040.
The New Rules have changed making it easier to qualify for innocent or injured spouse. These new rules are a breathe of fresh aire because the old rules favored the Internal Revenue Service.
Contact us at freshstarttax.com
News about the new program for Innocent Spouses:
The Internal Revenue Service announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests.
After a thorough review of both injured and innocent spouses cases these are the results:
- The Internal Revenue Service will no longer apply the two-year limit to new equitable relief requests or requests currently being considered by the agency.
- A taxpayer, whose equitable relief request was previously denied solely due to the two-year limit, you may reapply using IRS Form:
- 8857, Request for Innocent Spouse Relief,
- The IRS will not apply the two-year limit in any pending litigation involving equitable relief, and where litigation is final, the agency will suspend collection action under certain circumstances. The change to the two-year limit is effective immediately, and details are in Notice 2011-70, posted on IRS.gov. This policy change will become operational in the fall and more guidance will be forthcoming.
Injured or Innocent Spouse Tax Relief
You may be an injured spouse if you file a joint tax return and all or part of your portion of a refund was, or is expected to be, applied to your spouse’s legally enforceable past due financial obligations.
Here are some facts about claiming injured spouse relief:
1. For you to be considered an injured spouse; you must have paid federal income tax or claimed a refundable tax credit, such as the Earned Income Credit or Additional Child Tax Credit on the joint return, and not be legally obligated to pay the past-due debt.
2. Special rules may apply in community property states.
For more information about community property status and the factors used to determine whether you are subject to community property laws, see IRS Publication 555, Community Property.
3. If you filed a joint return and you are not responsible for the debt, but you are entitled to a portion of the refund, you may request your portion of the refund by filing Form 8379, Injured Spouse Allocation.
4. You may also file form 8379 along with your original tax return or your may file it by itself after you receive an IRS notice about the offset.
5. You can also file Form 8379 electronically.
If you file a paper tax return you can include Form 8379 with your return, write “INJURED SPOUSE” at the top left of the Form 1040, 1040A or 1040EZ. IRS will process your allocation request before an offset occurs.
6. If you are filing Form 8379 by itself, it must show both spouses’ Social Security numbers in the same order as they appeared on your income tax return. You, the “injured” spouse, must sign the form.
7. Do not use Form 8379 if you are claiming innocent spouse relief.
Instead you should file Form 8857, Request for Innocent Spouse Relief. This relief from a joint liability applies only in certain limited circumstances.
In 2011 the IRS eliminated the two-year time limit that applies to certain relief requests. IRS Publication 971, Innocent Spouse Relief, explains who may qualify, and how to request this relief.
To see if you qualify for Innocent or Injured Spouse relief call us today. 1-866-700-1040
Innocent or Injured Spouse Tax Relief – New Tax Rules – IRS Tax Relief – Former IRS – Apply today
