by Fresh Start Tax | Jun 4, 2012 | IRS Tax Debt, IRS Tax Problem, Offer in Compromise, Representation, Tax Help, Tax Lawyer, Tax Returns, Tax Settlements, Uncategorized
Settling your IRS tax debt has just been made much easier through the new Fresh Start Program just launched by the Internal Revenue Service.
On May 21, 2012 the Internal Revenue Service announced another expansion of its “Fresh Start” initiative by offering much more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially troubled taxpayers/businesses to clear up their IRS tax problems/issues and in many cases more quickly than in the past. This is one of the biggest changes ever by the IRS in regard to IRS tax debt.
The new announcement specifically targets on the financial analysis used to determine which taxpayers qualify for an Offer in Compromise or a tax debt settlement.
This announcement also enables some taxpayers to resolve their tax problems in as little as two years compared to four or five years or in some cases 10 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.
An OIC ( Offer in Compromise ) is an agreement between a taxpayer and the IRS that settles the taxpayer’s IRS tax debt liabilities for less than the full amount owed. In many cases “pennies on a dollar’. The usually settlement is about $.014.
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 IRS looks at the taxpayer’s two major assets:
1. all income including social security, disability income,
2. liquid assets including 401k and all pensions
to make a determination of the taxpayer’s reasonable collection potential.
Offers in Compromise are subject to acceptance on legal requirements and must be approved by 3 layers of IRS management.
The IRS finally recognizes that many taxpayers are still struggling to pay their debts and are underwater on there mortgages so the IRS has been working to put in place “common-sense changes” to the OIC program. This change is long over due.
When the IRS calculates a taxpayer’s reasonable collection potential, the Internal Revenue Service 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 a huge change and will allow the taxpayers to reduce their IRS tax debt as far down as 75%.
Settling your IRS tax debt has really been made much easier starting today.
All offers in compromise must be fully paid within 24 months of the date the offer in compromise is accepted.
The new IRS Form 656-B, Offer in Compromise Booklet, and new IRS Form 656, Offer in Compromise, has been revised to reflect the changes.
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.
It is always best to make sure your offer in compromise or your tax debt settlement qualifies for a tax settlement in the first place.
Call the tax professionals at Fresh Start Tax LLC. We are comprised of Board Certified Tax Attorneys, CPA’s and Former IRS Agents and Managers.
We can also file all past due, late, or back tax returns. We are your firm for immediate and permanent tax relief on back taxes.
by Fresh Start Tax | Jun 1, 2012 | Back Taxes, Installment Agreements, IRS Payment Plans, IRS Tax Debt, IRS Tax Problem, Offer in Compromise, Tax Lawyer, Tax Levy and Wage Garnishments, Tax Settlements, Uncategorized
IRS, Tax Levy and Unfiled Tax Returns – How to get IRS off your back 1-866-700-1040
Have Former IRS Agents get your tax levy released and file all your back tax returns. We are tax experts. We are fast and affordable.
One of the largest concerns for taxpayers who have just received one of 3.8 million tax levies the IRS sends out a year is ” How do I get IRS off my back and my tax levy released?”
A good estimate is that there about 20 million taxpayers out there with unfiled tax returns and at some point the IRS just catches up. Tax levies are coming!
The IRS enforcement computer called CADE catches up to all taxpayers.
How to deal with the IRS and get them of your back.
IRS does not want to levy. They do not want to send out bank levies and wage levies or tax garnishments. We have a voluntary system of compliance. When taxpayers do not respond to IRS letters, notices and the filing of their tax returns, IRS has no choice but to let the computer system follow up with enforced compliance.
With that said, you can get the IRS off your back quite easily.
The easiest way of course is to hire a tax professional who knows there way around and through the system and can easily resolve the situation. A tax professional will handle the case in this fashion.
In regarding to past due, late, unfiled, back or delinquent tax returns.
The Internal Revenue Service will not usually release bank or wage garnishment levies until all tax returns are filed.
The levy serves as an enforcement tool to make sure IRS gets what IRS wants. IRS will hold their position on this issue and want all tax returns in their hands until it will release the bank or wage levy garnishments.
Waste no time, get tax returns prepared and filed immediately. The longer you wait the longer the bank or wage levy will usually stay in place.
We make sure the tax returns are sent to the agent handling the case so the tax returns do not get caught up in the system. IRS can lose track of the returns easily.
After all tax returns are sent to the IRS, the Service will want to review your current financial statement. The financial statement the 433A, 433F is the crucial element to the way your case will be closed by the IRS to end your tax problem. Tax relief will be coming soon, be patient.
IRS will expect a documented financial statement. After a review of the financial statement IRS will close your case in one of the following three ways:
1. IRS will put your case in hardship or currently uncollectible which means IRS has determined you have no money to pay them at the current time. Penalties and interest will continue to run and your case will works its way back to the computer system in a couple years. IRS notice and letters will start up somewhere down the road.
2. If you show and ability to pay the IRS back taxes, IRS will insist on the payment plan, installment plan or streamline agreement.
3. IRS will consider a Offer in Compromise or a tax debt settlement.
It is not wise for any taxpayer to file on Offer in Compromise on there own.
There is much involved and I should know. I am a former IRS Agent and teaching Instructor with the IRS. Offers in Compromise are complicated and there is much skill required to have a successful offer accepted.
In summary the keys to getting the IRS off your back:
1. Make sure all tax returns are filed and you are current on all withholding
2. Make sure you have a proper documented 433A, 433F so IRS can close your case,
3. Have a plan B.
We are staffed with former IRS Agents, CPA’s and Board Certified Tax Attorneys.
Call us today to end your tax problem, get immediate tax relief and get your life restored.
IRS, Tax Levy and Unfiled Tax Returns – How to get IRS off your back
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 9, 2012 | Tax Help, Uncategorized
There has been recent changes to the Federal Tax Law due to the increasing public outcry on the burden the IRS has been putting on taxpayers through the Filing of the Federal Tax Liens.
As a result it is now possible to have your Federal Tax Lien completely withdrawn. By this process the credit companies will adjust your credit scores to the level as though the Federal Tax Lien was never filed.
Call us today for immediate tax representation 1-866-700-1040
If the IRS has filed a Federal Tax Lien and you have either paid off the tax liability or have gone on direct deposit and met the lien withdrawal criteria fill out form 11227
The process of Release or Removal of Federal Tax Liens:
IRS has increased the lien filing threshold.
The Internal Revenue Service Fresh Start Program changes increase the IRS lien filing threshold from $5,000 to $10,000.
Federal Tax Liens may still be filed on amounts less than $10,000 when circumstances warrant.If the IRS feels that the collection of the tax is in jeopardy or the assets will be moved the IRS can proceed to filed the Federal Tax Lien
Requesting a federal lien withdrawal after the lien has been released:
The IRS may now because of the Fresh Start Program issue a withdrawal of a Notice of Federal Tax Lien after the lien has been released.
If you wish to have the Notice of Federal Tax Lien withdrawn, a taxpayer must request the withdrawal in writing.
- Taxpayers should use IRS Form 12277, Application for Withdrawal, (PDF form available ). In item 8, Reason for requesting withdrawal, check box hat is applicable to your case.
Eligibility requirements are as follows:
1. Your tax liability has been satisfied and your lien has been released
2. You are in compliance for the past three years in filing:
3. All individual and business returns have been filed
4. All information returns have been filed
5. You are current on your estimated tax payments and federal tax deposits, as applicable.
Federal Tax Lien withdrawal may also occur when after entering into a Direct Debit installment agreement.
If you are a qualifying taxpayer and meet the eligibility requirements, you may have your lien withdrawn after entering into a Direct Debit installment agreement.
Your request for lien withdrawal must be in writing. Please use Form 12277, Application for Withdrawal (PDF). In item 8, “Reason for requesting withdrawal,” check box b, the “entered into an installment agreement” provision.
Qualifying taxpayers are:
- Individuals (Form 1040 tax)
- Businesses with income tax liability only
- Out of business entities with any type of tax debt
Eligibility Requirements are:
- The current amount you owe must be $25,000 or less
- If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting the lien withdrawal to be eligible
- Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
- You must be in full compliance with other filing and payment requirements
- You must have made three consecutive direct debit payments
- You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien
- You cannot have defaulted on your current, or any previous, direct debit installment agreement.
Good News on this change that will effect thousands of taxpayers. Your credit scores should rise as though the federal tax lien was never filed.
If you are currently on a regular installment agreement, you may convert to a Direct Debit Installment Agreement.
To convert a regular installment agreement to a Direct Debit Installment Agreement:
Call us today for more details. You will speak to either a Board Certified Tax Attorney, CPA or Former IRS Agents.
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.
