by Fresh Start Tax | Jan 3, 2013 | New Jersey Tax, Sales Tax
New Jersey Sales Tax Audit – Owe Back Sales Tax – Essex, Morris, Bergen, Passaic, Union – New Jersey 1-866-700-1040
We have over 206 years of professional tax experience and over 60 years of direct work experience with the IRS and worked in relationship with State Agencies.
If you have a pending issue with the State of New Jersey and are going to experience a tax audit or owe back taxes call us today and start the process of getting immediate tax relief through experienced Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents.
We are a local professional tax firm and are available for a no cost professional tax consultation.
New Jersey Sales Tax
New Jersey Sales Tax consists of twenty-one field audit teams strategically located throughout the State of New Jersey. Field Audit district offices are located in Trenton (Hamilton Township), Newark, Toms River, Camden and Northfield.
In-State Field Audit is responsible for the examination of taxpayer’s books and records to ensure compliance with existing laws and regulations.
Tax Audits are usually performed on site at the taxpayer’s place of business or at sites provided by the taxpayer’s representative.
Audits are comprehensive in nature and intended to include all taxes administered by the Division of Taxation, however their primary focus is on Sales and Use Tax and Corporation Business Tax.
In addition to the State of New Jersey audit significance given to medium and larger sized entities, the Division has recently placed a special emphasis on the audit of smaller “cash” type businesses.
The initiation of the cash audit program was intended to strengthen compliance and collection efforts as well as level the playing field for compliant businesses. Since it’s inception in 1996 cash audit and compliance efforts have become an integral part of Field Audit operations and have collected billions of dollars for the State.
Voluntary Disclosure Policy – Contact the State before they contact you.
The Voluntary Disclosure Program is not available to any taxpayer who is currently under criminal investigation, has been contacted by the Division regarding delinquencies or deficiencies or is amending a previously filed individual return.
The Division will consider requests from New Jersey residents as well as New Jersey non-residents. All taxpayers should be represented by professional council.
All requests for a Voluntary Disclosure Agreement must be made in writing detailing the tax years involved and the reason for not filing.
These requests will be reviewed and the Division will make a determination whether a Voluntary Disclosure Agreement can be offered to the taxpayer. If a formal investigation has been opened up many times it is to late to bargain.
If a Voluntary Disclosure Agreement is appropriate, a letter of confirmation will be sent. If the request has been made anonymously, the taxpayer must disclose his or her name, address and social security number to the Division once the confirmation letter from the Division has been received.
An agreement will then be drafted by the STATE and returned to the taxpayer for his or her signature. All copies of the taxpayer signed agreement will be returned by the Taxpayer to the Division along with the returns and payment of tax.
The Division will waive the late filing and late payment penalties related to the tax years included in the agreement.
The taxpayer will then be assessed a 5% post amnesty penalty (for any amnesty eligible year) and statutory interest.
After all returns, tax, applicable penalties and statutory interest have been received by the Division, a fully executed agreement will be returned to the taxpayer.
In addition to the conditions outlined above, the taxpayer ( individual or business ) is expected to remain compliant with all future tax obligations.
As an alternative to the Voluntary Disclosure Program, the Division is willing to enter
into negotiations leading to a Taxpayer specific closing agreement with a Taxpayer who is prepared to come forward with full disclosure of all pertinent information. Many times this may be the best available option.
Warning – It is always best to be represented by professional and experienced Council. Free tax consultations. We are a local tax firm.
New Jersey Sales Tax Audit – Owe Back Sales Tax – Essex, Morris, Bergen, Passaic, Union – New Jersey – Sales Tax Experts NJ 1-866-700-1040
by Fresh Start Tax | Jan 1, 2013 | New Jersey Tax, Tax Levy and Wage Garnishments
Stop IRS Levy, Wage Garnishment, Seizure – Tax Attorneys, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
IRS sends out 3.8 million tax levy’s a year. We can get yours released!
We can stop a IRS Tax Levy, Wage Levy Garnishment or a IRS Tax Seizure. As former IRS agents and managers we know exactly how to make the IRS go away FAST.
We are affordable and get immediate results. 1-866-700-1040.
All initial first consultations are free. find out the truth from tax professionals that have released thousands of IRS tax levies since 1982.
The IRS Levy or Tax Garnishment
IRS can usually levy, seize or garnish only after these (3) three requirements are met:
1. The IRS assessed the tax and sent you a Notice and Demand for Payment,
2. You neglected or refused to pay IRS the tax and,
3. IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.
The IRS has the option to give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.
A IRS Tax Levy is a seizure. It is the biggest hammer the IRS uses to collect back taxes from delinquent taxpayers.
The are two types of tax levies.
A IRS Tax Levy is a seizure. It is the biggest hammer the IRS uses to collect back taxes from delinquent taxpayers.
1. The Bank Levy,
2. The Wage Garnishment.
The difference between the two.
The Bank Levy is a bank freeze on your account. There is a 21 day hold on the bank account. Basically the account is frozen. IRS will serve a 668A which is a one time levy.As a side note your account is not closed.
The Wage Garnishment is a immediate levy. Your next pay check is gone. It is also a continuous levy. It does not stop until you get the levy released. This is served with a 668W. There is a small amount exempt with this levy. You must fill out the associated form to be eligible for the exemption.
Property Exempt from Levy
IRC § 6334(a) exempts certain property from levy.
In addition to residences,principal residences and certain business assets which may be exempt as discussed above, the following property is exempt from levy:
1. Wearing apparel and school books necessary for the taxpayer or members of his family
2. Fuel, provisions, furniture, and personal effects in the taxpayer’s household, up to a specified, inflation-adjusted amount
3. Books and tools of the trade, necessary for the trade, business or profession of the taxpayer, up to a specified, inflation-adjusted amount
4. Unemployment benefits,
The unemployment benefit exemption has been strictly construed and does not encompass retirement and survivors benefits or disability insurance payments under the Social Security Act.
5. Undelivered mail
6. Certain annuity or pension payments: payments under the Railroad Retirement Act, benefits under the Railroad Unemployment Insurance Act, special pension payments received by Army, Navy, Air Force, and Coast Guard Medal of Honor recipients, and annuities based on retired or retainer pay under chapter 73 of Title 10 of the United States
Side Note – Although as a matter of policy, the Service has placed some administrative restrictions on levying on retirement income and retirement assets, those listed in IRC § 6334(a) are the only ones exempt from levy as a matter of law.
7. Workmen’s compensation (including amounts payable with respect to dependents)
8. So much of the salary, wages, or other income as is necessary to comply with a judgment of a court requiring the taxpayer to contribute to the support of his/her minor children, but only if the judgment was entered before the date of the levy
9. An amount determined under IRC § 6334(d) as a minimum exempt amount of wages, salary, or other income
10.Certain service-connected disability payments
11. Certain public assistance payments
12. Any amount payable under the Job Training Partnership Act
Call us today to get immediate tax relief from a IRS levy or wage garnishment, 1-866-700-1040.
Stop IRS Levy, Wage Garnishment, Seizure – Tax Attorneys, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
by Fresh Start Tax | Dec 26, 2012 | New Jersey Tax, Offer in Compromise
IRS Offer in Compromise – Tax Debt Negotiation -Tax Attorneys, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
As Former IRS agents we taught the Offer in Compromise at the Internal Revenue Service. 1-866-700-1040.
We know all the procedures and policies governing IRS tax settlement called the Offer in Compromise.
We will qualify your case for a no cost consult before recommending a plan of course of action. the OIC is a very detailed procure and required professional shill for acceptance.
The IRS accepts 30 % of all offers turned in and 90% of those are submitted by professional tax firms.
We are a local professional tax firm that specialize in IRS Offers in Compromise. 1-866-700-1040.
We have over 205 years of professional tax expereince and over 60 years of direct IRS work experience.
We have over 60 years of direct work expereince with the IRS in the local, district and regional offices of the IRS.
The IRS Offer in Compromise, Tax Debt Negotiation
An offer in compromise is a legally binding agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
The IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP). The RCP is how the IRS measures the taxpayer’s ability to pay. The formula is based on income plus assets.
The RCP includes the value that can be realized from all of the taxpayers assets, such as real property, automobiles, bank accounts, IRA’s and pension plans and other property. In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
The IRS may accept an OIC based on three basic grounds.
1. The acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed.
2. The acceptance is permitted if there is doubt that the amount owed is collectible.
This means that doubt exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3. The acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances. Many times rare circumstances such as medical issues may arise that will cause the IRS to take a second look.
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
Lump Sum Payment
A lump sum offer is defined as an offer payable in 5 or fewer installments.
If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $150 application fee.
The 20 percent amount is called nonrefundable because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability.
The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
Periodic Payment Offer
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more installments. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee.
This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. These amounts are also nonrefundable.
These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Statutory Period of Time
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws. If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
To avoid a default, the taxpayer must timely file all tax returns and timely pay all taxes for 5 years or until the offered amount is paid in full, whichever period is longer
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties.
Call us to see if you qualify for an offer. 1-866-700-1040
IRS Offer in Compromise – Tax Debt Negotiation -Tax Attorneys, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
by Fresh Start Tax | Dec 8, 2012 | IRS Tax Audit, New Jersey Tax, Sales Tax
IRS & Sales Tax Audits – Audit Experts – Attorneys, Lawyers, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
Stop the worry. Get a no cost professional tax consult and learn how we can end your misery. 1-866-700-1040.
We have worked for the IRS and worked on joints tasks on Sales Tax Audits from both sides of the fence.
We know the procedures and techniques and can you get you results. We have over 60 years with the IRS as Agents, Managers, and Instructors.
We are affordable and friendly and get you results.
IRS Tax Audits.
There are several different types of IRS tax audits.
1. Mail correspondence.
The most common type of IRS tax audit is the mail correspondence audit. IRS audits about 1.5 million taxpayers through mail correspondence. These usually occur as a result of 1099 and w-2 mismatches. IRS collects billion of dollars through these tax audits.
2. DIF.
The high DIF score is the second most common way. The DIF score or the discriminatory index function score tax audit means your tax return fell out of the National Standards for various credits, expenses or something did not make sense on your tax return. Each tax return has a DIF score.
The computer will self generate these score and tax audits.
3. Random sample audit. You won the IRS lottery and IRS will use your tax audit results to set up future DIF scores. this is a bad news audit.
4. National Program Audit.
IRS runs market specialization programs in different areas in the country for different industries. IRS tries to audit all industries to set National Standards. There is list on our website for market specialization tax audits.
6. The Office Audit.
You will get a letter to appear in a local IRS office where a local office auditor will audit selected features of your IRS tax return. These are small and quick tax audits.Many times these are only two or three item audits.
7. The Field Audit.
A more high skilled IRS Revenue Agent will spend days combing through your records. These are more advanced and complicated tax audits conduct at your home, place of business of at your representatives office.
State of New Jersey Tax Audits
The State of New Jersey audits taxpayers to:
1. Enforce New Jersey tax laws uniformly,
2. Deter tax evasion,
3. Promote voluntary compliance,
4. Educate taxpayers.
While the State of New Jersey accept most tax returns as filed, they audit some returns to verify accuracy and evaluate compliance.
Sales Tax Audits do not always result in the taxpayer owing additional tax, penalty or interest. The sales tax examiner auditor may adjust a credit carryover or correct distribution without assessing additional tax.
The auditor sometimes may even determine that a refund is due.
How Are you Selected for Audit?
The methods for selecting a business or individual to audit vary from tax to tax.
Here are some examples of sources the State sometimes uses to identify a potential audit candidate:
1. Internal Revenue Service information.
2. Information sharing programs with other states and state agencies.
3. Computer-based random selection.
4. Analysis of Florida tax return information.
5. Business publications, periodicals, journals, and directories.
What types of records will you need to provide?
When the State notifies you of our intent to audit they will also tell you what records you will need to provide.
Some types of records may include, but are not limited to:
a. General ledgers and journals
b. Cash receipt and disbursement journals
c. Purchase and sales journals
d.Sales tax exemption or resale certificates
e. Florida tax returns
f. Federal tax returns
g. Depreciation schedules
h. Property records
i. Other documentation to verify amounts entered on tax returns
IRS & Sales Tax Audits – Audit Experts – Attorneys, Lawyers, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
by Fresh Start Tax | Dec 8, 2012 | New Jersey Tax, Tax Help, Tax Relief
Tax Relief Help – Settle, Reduce IRS Debt – Tax Attorneys, Former IRS
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents.
We offer a no cost consult and review your case and explain your options before taking any fee.
We are affordable and friendly. 1-866-700-1040.
We have a combined 205 years of professional tax experience and over 60 years of direct experience at the IRS.
We as Former IRS agents taught the Tax Settlement Program at the IRS called the Offer in Compromise.
The Offer in Compromise is the only way to settle or reduce your tax debt with the IRS.
The system is a very precise one. IRS will ask for very detailed information regarding your financial life. The IRS spends upwards of 20 hours working a Offer in Compromise .
As a Former Agent who use to work offers I would recommend you hire a professional tax firm to prepare, file and defend the offer. As general rule the IRS will look to deny your offer because of the amount of work it takes to accept the offer.
You should always have your offer qualified before the submission of a offer. I have reviewed countless offers in my life and by having the right professional can make this process seamless.
At Fresh Start Tax LLC we qualify all offers before sent to IRS. Be careful not to be ripped off by companies claiming pennies on a dollar.
Current Fresh Start Program of the IRS
Under the current Fresh Start initiative the IRS has incorporated its Streamlined Offer in Compromise process into the overall investigation of offers and has added flexibility to the financial analysis used in evaluating offers.
The Streamlined Offer in Compromise process includes:
a. Fewer IRS requests for additional financial information,
b. If necessary requests for additional information by phone not by mail,
c. Much greater flexibility when considering your ability to pay.
The changes to financial analysis add more flexibility to the OIC or Tax Debt Settlements process including:
1. Greater flexibility in determining the equity in assets
2. Greater flexibility in determining the allowable living expenses
3. Reducing the amount of future income included in the offer
4.Decreased time frame to complete the OIC payment process to two years
Do your homework before hiring a Professional Tax Firm. Make sure they have on staff Board Certified Tax Attorneys, Lawyers, CPAs, Former IRS Agents and Managers.
Also, check the following to ensure the creditability and history of the Tax Firm.
1. Better Business Bureau – www.bbb.org/us/Find-Business-Reviews
2. Complaints.com – www.complaintsboard.com
3. Rip Off Report – http://www.ripoffreport.com/
Tax Relief Help – Settle, Reduce IRS Debt – Tax Attorneys, Lawyers Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
