Tuesday, May 31, 2011

IRS Help -- 20 Surprising Facts Most Taxpayers Don't Know

THE IRS

and 

Some Interesting

Information

the 

Internal Revenue Service 

Did you know that in 1913 the federal tax code was only 400 pages? In comparison, today it is over 70,000 pages. Investing Answers has put together a list of surprising facts about the IRS and the American tax system. You can find a few of their facts below:.
    According to one count, there are over 3.7 words in the tax code.
    Since the beginning of 2001, there have been over 3,250 changes to the tax code -- an average of more than one a day. More than 500 changes were made in 2008 alone.
    The IRS sends out an average of eight billion pieces of paper every tax season. If each sheet were laid out end-to-end, it would wrap around the earth 28 times.
    In order for the IRS to print all that paper, over 300,000 trees are cut down every year. (Just one more reason to consider filing online.)
    Tax Day is... April 18th? The date when tax returns must be filed with the IRS usually lands on April 15th. However, if the 15th is a weekend or holiday, Tax Day is moved to the next business day. In 2011, Emancipation Day is being held in Washington, D.C. on Friday, April 15, so Tax Day is bumped to the following Monday.
    Every year, U.S. taxpayers and businesses spend roughly 7.6 billion hours preparing their taxes.
Read more here





If you have a tax liability, you should consult with an experienced tax resolution specialist who has extensive experience with the Collections Division of the IRS.




Before you agree to anything, including an Installment Agreement, you need to consult with someone who will know what your payments should be. You can also find out if you are eligible for an Offer in Compromise or should be placed in Currently not Collectible status.


If you are not eligible and qualified for an Offer in Compromise, you may be able to reduce and eliminate the penalties and interest that have been added to your tax debt.


WHY FLAT FEE TAX SERVICE TO STOP IRS:
• Experienced Tax Attorneys
• Lower fees, Higher Value and Personal Service
• Integrity, No Complaints and Credibility always
• IRS Wage Levy Release in 1 Day/24 Hours

FLAT FEE TAX RELIEF SERVICE FEES ARE:
• Fixed with no hidden charges - Low initial retainer
• Payable in monthly installments
• Low initial payment to begin work
• Always affordable, flexible & no salesmen commissions





FLAT FEE TAX RELIEF SERVICE: Good People - Doing Great Work

FLAT FEE TAX RELIEF SERVICE: Christian Values 

FLAT FEE TAX RELIEF SERVICE: Complaint Free

STOP the IRS

The Flat Fee Tax Service, Inc.


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Monday, May 30, 2011

IRS Problems -- IRS Eases Up on Tax Debtors -- Don't Wait -- Settle with the IRS Now

TAKE ADVANTAGE
of the
IRS
IRS Eases Ability to Settle

The Internal Revenue Service (IRS) announced that it's going easier on people who haven't paid their federal taxes.

IRS Commissioner Doug Shulman said the service is making five changes to its lien system and collection tools that will help people with tax debts "get a fresh start." Here are the changes:

Tax Lien Threshold Raised

For starters, the IRS generally won't file a tax lien against people who owe less than $10,000 in back taxes, twice the current threshold of $5,000. People who have a history of tax avoidance might not qualify. A tax lien gives the IRS a legal claim to a taxpayer's current and future property for the amount of an unpaid tax debt, but it is not filed until the IRS has made repeated attempts to collect from a taxpayer.



"Raising the lien threshold keeps pace with inflation and makes sense for the tax system," Shulman said. "These changes mean tens of thousands of people won't be burdened by a tax lien, and this step will take place without significantly increasing the financial risk to the government."




Tax Liens Withdrawn


The IRS will also withdraw a lien once full payment of taxes is made if the taxpayer requests it. That means it will disappear from the taxpayer's credit report, according to Rod Griffin, director of education with the credit reporting firm Experian.

Today, after a tax debt is paid, the IRS releases a tax lien. "At that point we no longer have a claim to any asset that the tax lien is attached to," Shulman said.

Shulman said that "from our standpoint," a release and a withdrawal are the same thing, but some taxpayers have requested the change because they believe a withdrawal makes it easier to clean up their credit record and get a job.

An unpaid tax lien remains on a credit report for 10 years. If the tax is paid, and the tax lien is released, the evidence will remain on the credit report for seven years from the paid date. However, if the lien is withdrawn, "we will remove it from the credit report."


Of all the things that are bad on a credit report, one of the worst is a Federal tax lien. The ability to have the atx lien withdrawn is a fantastic incentive for consumers to find a way to pay their tax bills.

Direct Debit Agreements / Installment Agreements

The IRS will also withdraw liens if a taxpayer owes $25,000 or less and either enters into a direct debit installment agreement / payment plan, converts a regular installment agreement into a direct debit installment agreement or is already on a direct debit agreement and asks for a lien withdrawal.

The IRS will withdraw the lien after a "probationary period" demonstrating that direct debit payments will be honored.


Small Business Installment Agreements


The IRS will make streamlined installment agreements available to small businesses with $25,000 or less in unpaid taxes, up from a current limit of $10,000. Small business will still have 24 months to pay.

The streamlined agreements will be available for small businesses that file either as an individual or as a business. A small business that owes more than $25,000 could qualify if it paid down the balance to $25,000 or less.


Expanded Offer in Compromise (OIC)


The IRS is making a new streamlined Offer in Compromise (OIC) program available to people with annual incomes up to $100,000. The current income limit is $50,000. 

Under an Offer in Compromise (OIC) agreement, the IRS settles a person's tax debt for less than the amount due. It is generally accepted only when the IRS believes it cannot collect the full amount due based on the taxpayer's income and assets.

Asked if these new measures will increase or decrease tax collections, Shulman said they will "probably be neutral for revenue collection," although the expanded offer in compromise programs could bring some money in the door.

THE IRS DID NOT

BECOME

WARM & FUZZY

The IRS remains the world's most powerful collection agency and their job is to collect money. Make no mistake about that. Should make an error in the formula to settle through the Offer in Compromise program, your Offer will be rejected immediately as "un-processable." If you do not cross a "t" or dot an "i", your Offer in Compromise will be rejected as "un-processable." 

BEFORE YOU AGREE

To An

IRS INSTALLMENT AGREEMENT

You need to be absolutely sure that your tax debt has been reduced to it's lowest number. Are you Qualified for IRS Settlement through he Offer in Compromise program? Are you Currently not Collectible? Could your tax returns be amended so that you are being assessed the correct tax? 

BEFORE YOU ENTER 

Into

ANY AGREEMENT

With the IRS

CONSULT WITH A TAX PROFESSIONAL


I am Dave Rosa, the V.P. of Client Relations at  Flat fee tax Service, Inc. I will be conducting your consultation to see what needs to be accomplished to resolve your IRS problems as quickly and as efficiently as possible. We, at Flat Fee tax Service, post our fees clearly and boldly on our Website for everyone to view (including competitors). We believe in being upfront and straightforward. 

We may not be able to help you. If this is the case, we will offer you our best advice and wish you well. We do not take on everyone who contacts us.

FLAT FEE TAX SERVICE 
Wants Clients
That
We Can
Absolutely 
Help

WHY FLAT FEE TAX SERVICE FOR YOUR IRS PROBLEMS:
• Experienced Tax Attorneys
• Lower fees, Higher Value and Personal Service
• Integrity, No Complaints and Credibility always
• IRS Wage Levy Release in 1 Day/24 Hours

FLAT FEE TAX RELIEF SERVICE FEES ARE:
• Fixed with no hidden charges - Low initial retainer
• Payable in monthly installments
• Low initial payment to begin work
• Always affordable, flexible & no salesmen commissions




YOUR OPTIONS:

1. You can pay your tax liability off in full.
2. If you cannot pay your tax debt off in full, you can enter into an IRS Installment Agreement / payment plan. Should you attempt to do this yourself, you may agree to a monthly payment that is much higher than what you should be paying.
3. Stop the Levy and begin the process of an IRS settlement through the IRS Offer in Compromise. Not everyone is eligible and qualified for an Offer in Compromise but you will not know if you can settle with the IRS for less unless you have a complete consultation with an experienced, diligent tax attorrney.
4. Stop the Levy and be declared Currently not Collectible (CNC) which is sometines called Currently Uncollectible. When your allowable expenses (according to the IRS formula) exceeds your current income and ability to pay your tax liability, you may be declared by the IRS to be Currently not Collectible and for a period of 18 to 24 months, you will not pay the IRS anything. During the Currently not Collectible period, the Statute of Limitations continues to run out and the IRS will leave you alone. At the end of the 18 to 24 month period, you will need to show the IRS your present financials (433-F), bank statements, pay stubs, etc. and if nothing has changed, you will continue to be classified as Currently not Collectible (CNC). 
5. Should your financial position improve, then other strategies come into play such as Installment Agreement or filing an IRS settlement through the IRS Offer in Compromise program.
6. You will be better off if you have an experienced tax attorney handle these matters for you. You do not know the IRS Code or IRS Manual. You do not have any in depth experience with the collections division of the IRS and you, most likely, will make crucial errors and harm yourself.

FLAT FEE TAX RELIEF SERVICE: Good People - Doing Great Work


FLAT FEE TAX RELIEF SERVICE: Christian Values 


FLAT FEE TAX RELIEF SERVICE: Complaint Free


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Sunday, May 29, 2011

IRS Problems -- IRS Questions for Flat Fee Tax Service -- IRS Levy -- IRS Answers

Flat Fee Tax Service Will Take Your Questions 

Question: The IRS is taking $50 per month out of my paycheck. They've been doing it for over a year, how can I get the IRS to stop the garnishment?

Answer: What you are experiencing is an IRS Levy which is a/k/a IRS wage garnishment. This is just one of the collection methods the IRS uses to collect on unpaid tax debts. There are a couple of ways to get the garnishment removed:
  1. 1. Pay the entire balance of your tax liability in full.
  2. 2. Negotiate an installment agreement / payment plan with the IRS. This will allow you to pay your tax debt in manageable monthly payments, instead of forced collections.
  3. 3. Show the IRS you have a hardship and cannot afford to repay your debts at all, right now. This involves divulging your finances and bills to the IRS so they can see - in black and white - that you simply cannot afford to pay your debt right now.
If you don’t take some action, the IRS will continue to Levy you. The IRS will keep garnishing your wages, your paycheck or your Social Security until your tax debt, with penalties and interest, is completely paid off. My recommendation: talk to a tax professional and get this handled ASAP!



FLAT FEE TAX SERVICE

WILL

STOP and REMOVE

an 

IRS LEVY

in 

1 DAY/24 HOURS

If you had the money, you would have paid off your tax liability, so the answer to item #1 is a non-factor.

Negotiating an Installment Agreement / Payment Plan with the IRS is more complicated than simply calling up the IRS and finding out what the IRS wants/expects you to pay. Many factors go into an IRS Installment Agreement.

ANYONE CAN AGREE 

TO

A

VERY BAD

IRS INSTALLMENT AGREEMENT

YOUR OPTIONS:

  • Consult with Flat Fee Tax Service to see what your best course of action is.
  • Stop and remove the IRS Levy today.
  • Determine if you are Currently not Collectible.
  • Determine if you are if you are eligible and qualified for an IRS settlement through the IRS Offer in Compromise program.
  • Determine the Statute of Limitations for your case.
These are only a few of the factors involved in an IRS Installment Agreement.  
There is more "to it" than having a number thrown at you by the IRS and having you agree to it. 

DO NOT BE FOOLISH

If you find yourself facing an IRS Levy, you do not have to suffer, You have Rights.

HAVE YOU FILED ALL OF YOUR 

TAX RETURNS



If you have delinquent / unfiled tax returns, you have no Rights as far as the IRS is concerned. Depending on how many years are involved, Flat Fee Tax Service may not be able to stop and remove the IRS Levy until you become what the IRS calls "Compliant."

We, at Flat Fee Tax Service, will not know if we can have the IRS Levy removed prior to getting you Compliant until we speak to the IRS directly. In all honesty, it's a 50/50 proposition.

At the very least, we, at Flat Fee Tax Service, will have to vouch for you and promise the IRS that enough tax returns will be filed to get you to a Complaint status.

If we can negotiate this with the IRS, you will be given 2 weeks to 30 days to become Compliant.


I am Dave Rosa, V.P. of Client Relations at Flat Fee Tax Service. I will be conducting your initial consultation with us at Flat Fee Tax Service, Inc. We do not have salesmen at Flat Fee Tax Relief and our fees are clearly and boldly posted on our Website so our focus is on you.

Can we help you and improve your situation with the IRS or can't we is what will be determined during our consultation. We will thoroughly walk you through the process so that you have a clear understanding on how Flat Fee Tax Service will resolve your IRS problems.

WHY FLAT FEE TAX SERVICE, INC. FOR YOUR IRS SETTLEMENT
• Experienced Tax Attorneys
• Lower fees - higher value
• Integrity - credibility - personal service - results
• No Salesman - No Pressure - No Client Complaints

FLAT FEE TAX SERVICE, INC. -  IRS SETTLEMENT FEES ARE:
• Fixed with no hidden charges
• Payable in low monthly installments
• Low initial payment to begin work
• Always competitive and affordable 




FLAT FEE TAX SERVICE, INC. - Good people - Doing Great Work


FLAT FEE TAX SERVICE, INC. - Christian Values

FLAT FEE TAX SERVICE, INC. - No Client Complaints

The Flat Fee Tax Service, Inc. 

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Saturday, May 28, 2011

IRS Problems -- Innocent Spouse Protection or Offer in Compromise -- Which is the Better Way to Go

Innocent Spouse Protection
or
Offer in Compromise?

Some 50,000 taxpayers a year ask the IRS for innocent spouse relief. Most are women under financial pressure, and some come from privileged backgrounds: Past relief recipients include wives of former San Francisco Mayor Joseph Alioto and Levittown developer William Levitt.

Most women who are in need of tax relief from the IRS are not from "privileged backgrounds" and cannot afford high powered law firms to handle their stressful and sizable IRS problems. Most of the women who we have encountered at Flat Fee Tax Service who have IRS problems regarding the actions of a former spouse are or have been former small business owners. 



ACTUAL CASE STUDY

of an

INNOCENT SPOUSE 

In 1999, Cathy Marie Lantz's husband, Indiana dentist Richard Chentnik, earned $112,000.00, or so Ms. Lantz thought, when she signed their joint tax return. In 2000, Dr. Chentnik was arrested for Medicare fraud, convicted and imprisoned. In connection with the case, the Internal Revenue Service (IRS) sent the couple a bill for $900,000 of tax, penalties and interest.

Did Ms. Lantz owe the tax debt her husband incurred? The IRS said yes, the Tax Court said no. Last summer the Seventh Circuit Court of Appeals said yes again, siding with the IRS.

The Seventh Circuit Court of Appeals reasoning was this: To be absolved of responsibility for the couple's tax debts / liability, Ms. Lantz would have had to ask the IRS for "innocent spouse" relief within two years of the agency's sending a levy notice.

According to testimony, Ms. Lantz said she didn't do so because her husband told her he had taken care of the request. Dr. Chentnik did get the IRS form, according to testimony, but didn't file it before dying in a halfway house in 2004. The court held Ms. Lantz liable for the entire tax bill. 

The IRS has applied the two-year deadline to all requests since then, despite the disapproval of lawmakers like Sen. Charles Grassley (R., Iowa), who was on the Finance Committee when the revision passed. Tax Court judges have repeatedly held in taxpayers' favor on this issue, although two appeals courts have overturned the Tax Court. More appeals cases are underway.

While the outcome of possible changes is unclear, experts have advice for spouses with current worries:
• Should you suspect your partner of tax misdeeds, you should avoid signing a joint return. "It often makes you 'joint and severally liable' for any problem," says Carlton Smith of Cardozo Law School in New York. Like other experts, he advises these taxpayers to opt for the "married filing separately" status instead, which severs liability. This may cost more in taxes but can be worth it.
• Ex-spouses should know the IRS can legally disregard a divorce decree. "Even if the decree says one partner is responsible for taxes, the IRS can pursue the other if both signed a joint return," says Bryan Skarlatos, an attorney with Kostelanetz & Fink in New York.
Get help from a tax professional for filing IRS Form 8857 for innocent-spouse relief. The form is deceptively simple. It doesn't make clear that including documents like an order of protection or explanatory letter may prevent an IRS rejection.
The IRS is a collection agency. The IRS is charged with the responsibility for collecting money for the Federal Government. The IRS will always be looking for an opportunity to reject your paperwork.
IF YOU CANNOT PAY THE IRS
YOU MAY WANT TO
LOOK AT AN
OFFER in COMPROMISE
Have you heard of the expression, "there is more than 1 way to skin a cat?" Should you be in a tough financial position and you are unable to pay the IRS for a tax liability incurred while you were married to your former partner, the pragmatic way to go may very well be an IRS settlement through the Offer in Compromise program.
WHY
an
OFFER in COMPROMISE
Water and electricity have this in common, "they both take the path of least resistance." Why, if you are financially struggling, would you want to get yourself tied up in a lengthy and costly fight with the IRS over acceptance of an Innocent Spouse petition when the answer could very well be in an Offer in Compromise program that has been expanded by the IRS and made easier by the IRS Commissioner? Take the path of least resistance.
DON'T SHOOT YOURSELF IN THE FOOT
“I’ve made a whole set of changes to the Offer in Compromise (OIC) program since I’ve been here to try to increase the participation rate, increase the acceptance rate, because it’s good for the tax system,” Doug Shulman, the IRS Commissioner said.
THE IRS HAS EXPANDED
and
MADE EASIER
the 
OFFER in COMPROMISE
PROGRAM
“These changes to the Offer in Compromise program will help give taxpayers a fresh start,” said Doug Shulman, the IRS commissioner, in a conference call with reporters. These changes “are especially appropriate as the American people and small businesses are climbing out of the worst recession in a generation.”

BE PRAGMATIC
“There are a variety of things, all aimed at increasing acceptance rates for an Offer in Compromise, making it a user-friendly thing to apply for,” Shulman said.
WHAT IS AN
OFFER in COMPROMISE
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service (IRS) that settles the taxpayer’s tax liabilities for less than the full amount owed. Absent special circumstances, an offer in compromise will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through an Installment Agreement / Payment Plan.
The IRS has a complicated (for a novice/inexperienced taxpayer) formula that proves whether or not you, the taxpayer, has the ability to pay your tax liability.
If it shown that you could never pay back your tax debt in full, you would be eligible and qualified for an IRS settlement through the Offer in Compromise program because there is "Doubt as to Collectibility."
WHAT IS YOUR OBJECTIVE
If you are "hell bent" on proving that your former partner "did you wrong" and want to prove up an Innocent Spousal filing, then you may end up frustrated, angry and continuing to have the IRS all over you for the past tax debt.
THE OBJECT SHOULD BE
OBTAINING THE
BEST
RESULT
WHY FLAT FEE TAX RELIEF FOR YOUR IRS SETTLEMENT
• Experienced Tax Attorneys
• Lower fees - higher value
• Integrity, credibility, personal service & results
• No Salesman - No Pressure - No Client Complaints

FLAT FEE TAX RELIEF IRS SETTLEMENT FEES ARE:
• Fixed with no hidden charges
• Payable in monthly installments
• Low initial payment to begin work
• Always competitive and affordable 



If you qualify for an IRS Settlement through the IRS Offer in Compromise (OIC) program, you can "get your life back", you can save thousands of dollars in taxes, penalties and interest. Taxpayers can have IRS Tax Debt on all types of taxes, including most payroll taxes, penalties, and interest. It is the closest thing to amnesty that the federal government offers in connection with back tax debt.

Taxpayers should bear in mind however, that the IRS Offer in Compromise program or IRS Penalty Abatement program is a privilege, not a right such as bankruptcy. That being said, it is a very subjective process. The IRS has the final word. The IRS Offer in Compromise (OIC) process is a very complicated drawn out process that can take upwards of nine months to a year and even longer. There are IRS guidelines, rules and protocols established by operation of law, under IRC Section 7122. However, most IRS Offer Examiners (former Revenue Officers) use the Internal Revenue Manual (IRM) as their guide.
CALL 
FLAT FEE TAX SERVICE
for a 
COMPREHENSIVE - FREE CONSULTATION

I am Dave Rosa, V.P. at Flat Fee Tax Service, Inc. and author of this Blog. Give us a call at Flat Fee Tax Service and we will provide you with an honest, straightforward consultation and present you with the solutions that are best for your particular situation.
FLAT FEE TAX SERVICE - Good people - Doing Great Work


FLAT FEE TAX SERVICE - Christian Values

FLAT FEE TAX SERVICE - No Client Complaints

FLAT FEE TAX SERVICE - No Salesman

The Flat Fee Tax Service, Inc.

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