by steve | Jul 15, 2010 | IRS Tax Advice
Here are the general rules for amended your tax return
Usually, an amended return requesting a credit or tax refund must be filed by the later of:
* Three years after the date you filed your original return, or
* Two years after the date you paid the tax.
Generally, any credit or refund will be limited to the part of the tax paid within a 3-year period (plus any extension of time for filing your return) immediately before you file your amended return if:
* The amended return is filed within 3 years of filing the original return.
If not filed within three years after filing the original return, the credit or refund will be
limited to the tax paid within the 2 year period immediately before you file the amended return.
The limits are different for issues such as net operating losses, foreign tax credits, and bad debts.
For additional information, refer to Chapter 1 of Publication 17, Your Federal Income Tax. Publication 17 is available for download at www.irs.gov/, or you may request a copy by calling 800-829-3676.
Should you have a more complicated tax problem, be sure to call Fresh Start Tax 1-866-700-1040 If you are going to owe a tax balance and are unable to pay your Federal Taxes, call us today.
by steve | Jun 2, 2010 | IRS Tax Advice, Tax News
Overview of the Estate Tax Lien
1.
Before the Federal Government files a federal tax lien on an estate tax case, the IRS gives careful thought to the advantages and limitations of each type of estate tax lien.
2.
In many cases, the general lien is the best tool to protect the federal government’s interest. The Federal Estate Tax Lien is automatically created when any resident of the United States dies. No recorded notice is required for it to become effective. It attaches to all of the assets that are part of the decedent’s gross estate and are required to be reported on Form 706, United States Estate Tax Return, and is security for any estate taxes that may be determined to be due. If a probate asset is transferred or liquidated without payment of the tax, but for the exceptions detailed at IRM of the Internal Revenue Manual, the federal estate tax lien continues to attach to the asset. If a non-probate asset is transferred or liquidated without payment of the tax, a liability equal to the value of the asset at the time of the decedent’s death becomes due from the transferee. A separate assessment against the transferee is not needed. Assets of the gross estate can be sold or encumbered free of lien if the proceeds from the sale or loan are used for the payment of charges against the estate or expenses of its administration that are allowed by any court having jurisdiction.
3.
A limitation of the general federal estate tax lien is that it has an absolute life of 10 years. It cannot be extended. Estate tax attributable to an estate’s interest in a closely held business may be paid over a 14-year period if an extension of time to pay under IRC is in effect which could potentially leave the Service without lien protection for four years if a notice of lien is not recorded before the 10 years have elapsed.
4.
The filing of Form 668-J will secure the deferred taxes for the duration of the extension. The collection statute of limitations is suspended during the period of the extension.
1.
The federal estate tax lien attaches only the property specified on the recorded lien. A lien on property with equivalent value can be substituted for the actual property upon agreement between the Internal Revenue Service and all parties with an interest in the property.
2.
When estate property is listed on the recorded IRS Form 668-J, it is automatically released from the effects of the general estate tax lien.
3. Find the closest Estate and gift Unit of the Internal Revenue Service and they should be able to help you with these issues.
Requesting a Release, Discharge of Property From, or Subordination of Unrecorded Federal Estate Tax Lien
1.
Releasing the Estate Tax Lien Occasionally, the IRS office receives requests for release of the unrecorded estate tax lien. However, just as there is no provision for recording a notice of the unrecorded estate tax lien, there is no provision for recording a release. Individuals are instructed to provide documentation to potential purchasers of the decedent’s property that either there was no Form 706 filing requirement, or, if Form 706 was filed and a closing letter has been provided to the estate by Estate & Gift Tax and a copy of the return, the Estate Tax Closing Letter 627 , and verification of payment, are evidence that the federal estate tax lien has been satisfied.
2.
Discharge of the Estate Tax Lien
1.
Those individuals looking for discharge under are usually submitted on Form 4422, Application for Certificate Discharging Property Subject to Estate Tax Lien. These applications will be processed by Estate and Gift division of IRS. If Form 706 has not been filed or if a closing letter has not been issued. If Form 706 has been filed and a closing letter has been issued, applications for discharge will be processed by Advisory Unit of IRS , United States Certificate Discharging Property Subject to Estate Tax Lien, is used to discharge the property.
2.
Applications for discharge will be processed by Advisory Unit in the local office. If Form 706 has not been filed or if a closing letter has not been issued, Advisory will consult with Estate and Gift division in order to determine the government’s lien interest.
3.
Subordination of the Estate Tax Lien Individuals looking for a subordination will be processed by the Local Advisory Unit. If Form 706 has not been filed or if a closing letter has not been issued, Advisory Unit will consult with the Estate and Gift Division in order to determine the government’s lien interest.
The Federal Gift Tax Lien
1.
The provisions of the federal gift tax lien are also delineated in IRC and parallel those for the general estate tax lien. ( Same as above )
2.
The special gift tax lien imposed attaches to all gifts made during the calendar year for the amount of the gift tax imposed upon the gifts made during such year. If the gift tax is not paid by the donor when due, the donee of any gift becomes personally liable for the tax to the extent of the value of the gift. The gift tax lien extends for a period of ten years from the time the gifts were made or until or the tax is paid, whichever date is sooner.
Should you have any questions about any of these issues, call the Fresh Start Tax professionals at 1.866.700.1040
by steve | Jun 2, 2010 | IRS Tax Advice, Tax News
The IRS can and will seize, levy or garnish your Social Security Retirement benefit.
If your monthly benefit is more than $750, the Internal Revenue Service may garnish 15% of your monthly benefit for taxes that are at least six months in arrears. (This doesn’t apply to certain Social Security Disability benefits and perhaps other types of Social security benefits, but it does apply to Social Security Retirement.
You should contact IRS as soon as you receive a letter or notice to stop this event from taking place. If you have an IRS Problem or cannot afford to pay call us today. Do so before IRS sends out notices or federal tax liens or tax levies.to your bank accounts. IRS may send out multiple levy notices if they wish.
The IRS is must and is required to notify you before it begins to garnish your Social Security. They do so by a telephone call, by letter or by certified mail.
In many cases, you can settle, make IRS an Offer in Compromise, make a part pay agreement, or in many cases be put in a hardship or noncollectable file. Call us today to see what program is right for you.
Fresh Start Tax is one of the premier tax resolutions firms in the country. We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations. We have staff that specializes in every facet of the Internal Revenue Service. We know all the IRS strategies.
Some of our many specialties include the following:
- Immediate Tax Representation
- Offers in Compromise/Settlements
- Back Tax Relief
- Bank Garnishments or Tax Levies
- Wages Garnishments or Levies
- IRS Notices of Intent to Levy or Final Notices
- IRS Tax Audits
- Hardships Cases, Payment Plans
- Innocent Spouse
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Trust Fund Penalty Cases/ 6672
Our Company Resume:
- Our staff has over 110 years of professional tax representation experience
- On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents, Former IRS Manager, Instructor and Trainers
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- Extremely ethical and moral principles used
- Fast, affordable, and economical
- Licensed to practice in ALL 50 States
- Premium on client communication
- National Recognized Veteran Former IRS Agent
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by steve | Jun 2, 2010 | IRS Tax Advice, Tax News
Asset Protection Strategies from Creditors and the IRS
Our tax professionals will make sure that your asset protection plan is correctly designed and documented correctly and legally.
Asset protection is not about trying to hide from legitimate creditors. It is about managing justifiable debts and protecting your assets by taking the appropriate steps now by planning for the future so you have money and funds to pay necessary bills and obligations. Whether it is the formation of a trust,a corporation, limited liability company ( LLC), a limited partnership, or some other type of structure is going to be right for you, Fresh Start Tax will give you options an asset protection strategy that is appropriate for your assets, and for your unique personal and business situation. It also will allow you to set up a payment plan or settle with the Internal Revenue Service or other creditors. It will also help against IRS tax levies and IRS tax liens.
Fresh Start Tax believes that even though our clients may owe up to millions of dollars in past due taxes, our clients still have rights. thus the taxpayer Bill of Rights. It is within these laws that we fight for our clients because our experience has demonstrated that there is always a fair and equitable solution for collecting past due taxes. There are legal remedies for almost all situations. each case is different so every case is looked at from its own point of view. There are no two cases the same. we have dealt with thousands and thousands of cases in the past 60 years.
We also know how frustrating, depressing, sleepless nights it can be for an individual or for a business to address a liability with the long term goal of paying it off, when you or your business continues to have its bank accounts levied or seized . Our goal is to keep you operating and paying off your necessary bills and still deal with the IRS. We will deal with IRS so you never have to speak with them.
If you or your business has experienced a federal tax levy or a federal tax lien it is imperative to take the necessary steps to protect your assets in advance of this taking place, by contacting a tax professional from Fresh Start Tax who is equipped at protecting you in your time of distress.We can help you today.
You are right to be concerned about keeping what you have earned, and the law provides ways for you to protect your assets from IRS and current and future creditors. Our company will help you keep federal, state, and local tax authorities from seizing your business or your personal assets.We can work out settlement agreements if need be. Let us solve your IRS problem today
Our process is to give you a financial statement so we can start the process today. We send all information out to you electronically and you can get started today. We wait to have you as a new client.
by steve | Jun 2, 2010 | IRS Tax Advice
IRS Liens Can and Will Demolish Your Good Credit and Borrowing Capacity!
By Internal Revenue Service filing federal tax liens ( FTL ), the IRS can make your life absolutely miserable.
Federal Tax Liens are filed in the public records in the courthouse nearest your residence. The federal tax lien will indicate you owe the IRS various federal business or individual taxes . They are filed with the County Clerk in the county from which you or your business operates or your principle residence
Because they are public records they will show up on all your credit report. This often makes it difficult or impossible for a taxpayer or the business to obtain any financing, even for an automobile, home, or other lending opportunities.
In addition, Federal Tax Liens can tie up your personal property and real estate. It is like IRS has a mortgage on the property. Once a Federal Tax Lien is filed against your property, you cannot sell or transfer the property without having the lien removed so that you can transfer a clear title. The federal tax lien will have to be released for any sale to take place.
Taxpayers find themselves in a no win situation where they have property against which they would like to borrow but, because of the Federal Tax Lien, they cannot use it as collateral to back up a loan.
Generally the only ways federal tax liens can be released are by full pay, accepted and paid Offer in compromise or the statue of limitation has expired on the tax years. Contact us so we can help you through this problem. As a side note, your beacon score on your credit report will drop about 100 points. The federal tax lien has a devastating effect.
