Saturday, July 30, 2011

IRS Solutions -- IRS Payment Plans -- IRS Installment Agreements

IRS INSTALLMENT AGREEMENTS
IRS PAYMENT PLANS
WHAT YOU NEED 
TO KNOW
BEFORE YOU
AGREE
TO ANYTHING




The most widely used method for paying an old IRS debt is the monthly installment agreement, or IA. If you owe $25,000 or less, you will be able to get an installment payment plan for 60 months just by asking for it. 
BEWARE 
OF THE 
TROJAN HORSE
If you try and negotiate with the IRS on your own, the IRS will pressure you into a ridiculous Installment Agreement before you realize what you've done. Then it will be too late. Don't step on a "landmine." If you agree to a bad deal with the IRS, you are stuck with it.
The IRS is tasked with the job of collecting taxes. The job of the IRS is not to give you advice or present you with your options. That responsibility lies squarely on each individual taxpayer.

YOU MAY BE ELIGIBLE FOR:
  • A Penalty Abatement - A waiving of the penalties and interest based on reasonable cause. This will reduce your overall tax liability and your IRS Installment Agreement will be lower due to the reduction in back taxes due.
  • An IRS settlement through the Offer in Compromise program. If you are eligible and qualified for a settlement of your tax liability, you can pay this drastically reduced amount in payments. Find out if you qualify for an Offer in Compromise before you get locked into an IRS Installment Agreement.
  • If you are unable to pay anything toward your back tax debt that is owed to the IRS, you may be declared Currently not Collectible. Should you be declared Currently not Collectible, the IRS will leave you alone for a period of 18 to 24 months. At the end of this period of time, the IRS will look at your financial condition to see if it has improved enough so that you can make payments toward your tax liability. If you cannot pay your tax debt, you stay Currently not Collectible. The IRS, most likely, will file a Federal Tax Lien. That isn't "so bad", after all, there is no such thing as a "free lunch." The Statute of Limitations will be continuing and you may "run out the clock" on you back tax debt.
  • We may be able to amend your tax returns and reduce your tax liability. Once again, this will lower your Installment Agreement.

DIFFERENT AMOUNTS OWED - DIFFERENT RULES
If you owe more than $25,000, you will have to negotiate with the IRS to get an installment plan. You better have an experienced tax professional do this for you.
 RULE 1 - You must be current with your tax returns. 
If the IRS computers show that you are delinquent on your tax filings and haven't filed all past due tax returns, you will not be eligible for an Installment Agreement / IRS Payment Plan (IA). 
No matter how much you beg the IRS, if you have unfiled tax returns, the IRS will reject any offer from you to make payments and you should expect a Levy on your wages, your paycheck, your Social Security, your Social Security Disability (SSDI) and/or your bank account.
If you are self-employed, you must be current on your quarterly estimated tax payments for the current year. Finally, if you have employees, you must be current on payroll tax deposits and Form 941 filings to get an Installment Agreement (IA).
YOU KNOW THE SAYING
REGARDING
"ASS-U-ME"
Don't assume that an IRS Installment Agreement / payment plan is your best option. There are definite drawbacks. The biggest is that penalties and interest will continue to accrue while you paying on your Installment Agreement. Combined with penalties, the interest rate is often in the 20% per year category.  Your tax liability will double in less than 5 years. It's possible to pay for years and owe more than when you started.
ANYONE 
CAN AGREE
TO A 
VERY BAD
IRS INSTALLMENT AGREEMENT









PENALTIES AND INTEREST WILL HAVE
YOU FEELING LIKE YOUR
SHOVELING AGAINST THE TIDE
If you have no leftover cash after living expenses, you're not in a position to negotiate an Installment Agreement / payment plan with the IRS. At this point, your best bet is either submit an Offer in Compromise or being declared as Currently not Collectible.

Negotiating a Monthly Payment





If you owe more than $25,000 or can't pay the amount you owe in three years or less, your request for an Installment Agreement (IA) begins with an IRS collector's analyzing your Collection Information Statement on Form 433-A. The IRS collector uses the information on the form to determine the amount you can pay. Payment amounts are at the discretion of the IRS. If you deal with eight different collectors, you might end up with eight different Installment Agreements (IA).
All of our clients, at Flat Fee Tax Service, Inc., fill out our confidential financial questionnaire before anything is presented to the IRS.
Strategies for negotiating an IRS Installment Agreement:
  1. Offer to pay at least the amount of your income minus your necessary living expenses. This is the cash you have left over every month after paying for the necessities of life. Never, Never, Never promise to pay more than you can afford just to get your plan approved. Promising the IRS more than you can deliver is a serious mistake; once an Installment Agreement (IA) is approved, the IRS makes it next to impossible for you to renegotiate it. If you end up defaulting on an Installment Agreement, expect to have a levy against your wages, paycheck, etc.
  2. Give a first payment when you propose the agreement. Keep making monthly payments even if the IRS hasn't yet approved your Installment Agreement (IA). Making voluntary payments demonstrates your good faith and creates a track record. For example, if you pay $200 a month for three months before your Installment Agreement (IA) is approved, the collector may be inclined (it's a long shot) to believe that this is an appropriate amount.
If the IRS grants an installment plan, it may take several months to notify you in writing.

Making Monthly Payments

Until you receive written notice of approval, send payments to your local service center using the payment slips and bar-coded envelopes provided. If you don't want the IRS to know where you bank, use a money order or cashier's check from another bank.
You have two other options for making payments once your IRS Installment Agreement (IA) is approved:
  • Use a direct payroll deduction. Request a payroll deduction on Form 2159,Payroll Deduction Agreement. Your employer must agree to send payments to the IRS each month using the IRS's payment slips.

  • Use a direct debit. Have your bank automatically debit your checking account each month and send a payment to the IRS. As long as you keep the account open, this is the most foolproof way to make sure you don't miss a payment and risk having the Installment Agreement revoked.

Reasons Why the IRS Will Reject Your Installment Agreement:







  1. Your living expenses are not all considered necessary The IRS may deem your expenses "extravagant." For example, if you have hefty credit card payments, make any charitable contributions, or send your kids to private school, expect the IRS to say "no way." Although reasonable people would disagree on what is necessary and what is extravagant, the IRS is really stingy here. If you try and negotiate your expenses on your own, you will be disappointed at the results.
  • Information you provided on your Collection Information Statement, Form 433-A, is incomplete or untruthful. The IRS may think you are hiding property or income. For example, if public records show your name on real estate or motor vehicles that you didn't list, or the IRS received W-2 or 1099 forms showing more income than you listed, be prepared to explain. The IRS may be slow in many ways but what they are not is stupid. They have heard, seen and dealt with every conceivable situation. If you get caught in a lie or fabrication, you will be penalized.
  • You defaulted on a prior Installment Agreement (IA). While this doesn't automatically disqualify you from a new Installment Agreement with the IRS, it will cause your new proposal to be met with skepticism. Once again, having a 3rd party who has extensive experience with the Collection Division of the IRS will be a benefit to you.

If your initial Installment Agreement (IA) proposal is first rejected, you can keep negotiating. Of course, the Collection Division of the IRS can be executing a Levy on your assets during this period of time. 

When Can the IRS Revoke an Installment Agreement

Once you receive approval of your Installment Agreement (IA), you and the IRS are bound by the terms of the agreement, unless any of the following are true:
  • You fail to file your tax returns or pay taxes that arose after the Installment Agreement (IA) was entered into. Although IRS computers do not continue to review your finances, they do monitor you for filing future tax returns and keeping up with your promised payments.
  • You miss a payment. Under the terms of all Installment Agreements (IA), payments not made in full, and on time, will cause the your Installment Agreement to be revoked immediately. In practice, the IRS usually waits 30 to 60 days before revocation. After 60 days, you should expect a Levy against your assets. If you have been making payments by check or debit card, the IRS has your banking information which makes asset seizure very easy for them.  
  • Your financial condition changes significantly -- either for the better or worse.The IRS usually won't find out about this unless you tell them. If your financial situation has worsened, you really should look at an Offer in Compromise. Once again, it is the taxpayers responsibility to initiate any action for tax relief. The IRS will not be doing any "hand holding."
  • The IRS discovers that you provided inaccurate or incomplete information as part of the negotiation. For example, you may have omitted to mention certain valuable assets. That would be a major "NO NO."

  •  
  • I am Dave Rosa, the V. P. of Client Relations at Flat Fee Tax Service, Inc. I will be conducting your confidential consultation. It is my duty to you, as well as Flat Fee Tax Service, Inc., to provide you with an honest and straightforward evaluation of your IRS problem. Before you enter into an Installment Agreement with the IRS, find out what your options are. Find out if your tax liability can be dramatically reduced either by Penalty Abatement or through the Offer in Compromise program. Do not agree the IRS to pay more than you need to. 

WHY FLAT FEE FOR YOUR IRS SOLUTIONS: 
  • Experienced IRS Tax Attorneys
  • Experienced IRS Negotiators
  • Lower Fees - Higher Value
  • Credibility - Integrity
  • Personal Attention
  • Our Clients Become Our Friends


FLAT FEE TAX SERVICE FEES ARE:
  • Fixed - No Hidden Charges
  • Low Initial Retainer
  • Affordable - Monthly Payments
  • Always Competitive
  • Always Reasonable

FLAT FEE IRS SOLUTIONS - Christian Values

FLAT FEE IRS SOLUTIONS - Good people - Doing Great Work

FLAT FEE IRS SOLUTIONS - Affordable IRS Representation

FLAT FEE IRS SOLUTIONS - No Complaints

FLAT FEE TAX SERVICE, INC.

IRS TAX RELIEF HELP - LINE

1 - 8 0 0 - 5 8 9 - 3 0 7 8

Click:

http://www.flatfeetaxservice.us

http://www.thebestirshelp.com

follow us on Twitter:

http://twitter.com/flatfeetaxsvc

Like us on Facebook:








Thursday, July 28, 2011

IRS Solutions -- IRS Makes Changes to Innocent Spouse -- IRS Help -- Innocent Spouse or Offer in Compromise


INNOCENT SPOUSE
or
OFFER in COMPROMISE

There is a "Good News" announcement regarding the Innocent Spouse program by the IRS.



The Internal Revenue Service (IRS) is giving some relief to an "innocent spouse" who otherwise may have been liable for a partner's back tax debt.
Effective immediately, the IRS has eliminated a rule that disqualifies taxpayers from innocent-spouse status if the "innocent spouse" has failed to file for relief within two years. This had been a provision that snagged people who otherwise qualified, including abused women.
"Today's change will help an innocent spouse victimized in the past, present and future," said IRS Commissioner Doug Shulman.
The agency's shift was welcomed by others who pushed for it, including National Taxpayer Advocate Nina Olson. Recently, the IRS had won federal appeals court cases involving the two-year deadline.
The change by the IRS affects taxpayers applying for so-called equitable relief, a category open to taxpayers who don't meet strict requirements of other provisions in the innocent spouse law.
An Internal Revenue  spokesman said the IRS receives about 50,000 requests under the innocent spouse provision a year, although the number of actual taxpayers is smaller because a taxpayer often requests relief for more than one year. Many of these petitioners are women who are under financial pressure, and some have been abused.
Until the change, the IRS denied applicants who missed its deadline of two years after the first collection notices sent by the agency. But most taxpayers didn't know about the notices or the possible tax relief, and others feared a spouse's reaction.
An example of a past innocent spouse relief petition is the Cathy Marie Lantz case. Last summer, a federal appeals court upheld an IRS argument for the two-year deadline in the case of Cathy Marie Lantz, the former wife of an Indiana dentist. In 2000, her husband, Dr. Richard Chentnik, was arrested and convicted of Medicaid fraud, resulting in a $900,000 bill from the IRS. Ms. Lantz didn't file for innocent spouse relief because Dr. Chentnik told his former wife he had taken care of the back tax debt. He did not take care of the tax liability and he died shortly afterward. 
IRS officials said the change to their innocent spouse policy will apply to past as well as current cases. In its announcement, the Internal Revenue Service (IRS) invited all taxpayers who were denied tax relief, solely because of the two-year limit, to reapply for innocent spouse protection. IRS officials also said they wouldn't apply the two-year rule to pending litigation and might suspend collections in cases the IRS has won in court.
Experts say the elimination of the two-year deadline may be the first of more IRS revisions to the innocent-spouse rules.
“In recent months, it became clear to me that we need to make significant changes involving innocent spouse relief,” said IRS Commissioner Doug Shulman. “This change is a dramatic step to improve our process to make it fairer for an important group of taxpayers. We know these are difficult situations for people to face, and today’s change will help innocent spouses victimized in the past, present and the future.”
The IRS launched a thorough review of the equitable relief provisions of the innocent spouse program earlier this year. Policy and program changes with respect to that review will become fully operational in the fall and additional guidance will be forthcoming. However, with respect to expanding the availability of equitable relief:

  1. The IRS will no longer apply the two-year limit to new equitable relief requests or requests currently being considered by the agency.
  2. A taxpayer whose equitable relief request was previously denied solely due to the two-year limit may reapply using IRS Form 8857, Request for Innocent Spouse Relief, if the collection statute of limitations for the tax years involved has not expired. Taxpayers with cases currently in suspense will be automatically afforded the new rule and should not reapply.
  3. 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.
  4. The change to the two-year limit is effective immediately, and details are in Notice 2011-70, posted today on IRS.gov.
Existing regulations, adopted in 2002, require that innocent spouse requests seeking equitable relief be filed within two years after the IRS first takes collection action against the requesting spouse. The time limit, adopted after a public hearing and public comment, was designed to encourage prompt resolution while evidence remained available. The Internal Revenue Service (IRS) plans to issue regulations formally removing this time limit.
By law, the two-year election period for seeking innocent spouse relief under the other provisions of section 6015 of the Internal Revenue Code, continues to apply. The normal refund statute of limitations also continues to apply to tax years covered by any innocent spouse request.
Innocent Spouse Relief is available only to someone who files a joint return, innocent spouse relief is designed to help a taxpayer who did not know and did not have reason to know that his or her spouse understated or underpaid an income tax liability. Publication 971, Innocent Spouse Relief, has more information about the program.

BEFORE YOU GET 

TOO EXCITED


BE AWARE

The IRS did not become "warm and fuzzy" overnight. Until we, at Flat Fee Tax Service, Inc., see if these rule changes actually result in any meaningful rulings that will help a spouse with their tax liability, we have reservations. At this time, Flat Fee Tax Service, Inc. will continue to recommend that the Offer in Compromise program be the choice for your Tax Relief for everyone who is struggling financially.

You should know that just because the IRS has succumbed to pressure and has changed the filing requirement for a Innocent Spouse relief, doesn't mean it will be any easier to obtain a favorable innocent spouse ruling.

An Innocent Spouse petition has always been the hardest to get approved. If you are struggling financially, it is our opinion, at Flat Fee Tax Service, Inc., that you may be better off by applying for an IRS settlement through the Offer in Compromise program.


An Offer in Compromise is based on a formula that takes into account a taxpayers ability to pay back a tax debt. If you cannot pay the IRS and it doesn't appear that your financial position is going to change "any time soon", the fastest way to a fresh start most likely will be through an Offer in Compromise.





FLAT FEE TAX SERVICE, INC.

WILL LEAVE

NO 

STONE UNTURNED

In our effort to get you the best tax resolution deal possible, Flat Fee Tax Service, Inc. will look at every possible angle and rule available to you. We will leave "no stone unturned" in our effort to help you. 


I am Dave Rosa, the V. P. of Client Relations at Flat Fee Tax Service, Inc. I will be conducting your confidential consultation. It is my duty to you, as well as Flat Fee Tax Service, Inc., to provide you with an honest and straightforward evaluation of your IRS problem. You, most likely, are struggling financially. All of our clients are struggling. Our clients come to us because they need a fresh start and want  tax professionals who are empathetic to their situation. It is our job to help you get back on your feet. We, at Flat Fee Tax Service, Inc., will work diligently to get you you the best tax solution deal possible.


FLAT FEE TAX SOLUTIONS FEES ARE:

  • Low and Fixed
  • No Hidden Charges
  • Low Initial Retainer to Get You Going
  • Low Monthly Installments to Fit Your Budget
  • Always Reasonable 
  • Always Competitive
WHY CHOOSE FLAT FEE IRS SOLUTIONS FOR YOUR IRS REPRESENTATION
  • Experienced Tax Attorneys
  • Great Value
  • Integrity and Credibility
  • Personal Service
  • No Pressure
  • No Salespeople
  • No Complaints

FLAT FEE IRS SOLUTIONS - Christian Values

FLAT FEE IRS SOLUTIONS - Great People - Doing Great Work

FLAT FEE IRS SOLUTIONS - Experienced Problem Solvers

FLAT FEE IRS SOLUTIONS - No Complaints

FLAT FEE TAX SERVICE

IRS SOLUTIONS HELP - LINE

1 - 8 0 0 - 5 8 9 - 3 0 7 8

Click:


follow us on Twitter:



Like Us on Facebook:



Wednesday, July 27, 2011

IRS Levy -- Employers Don't Need to Lose a Valuable Employee Due to an IRS Wage Levy

EMPLOYERS
DON'T LOSE
A
VALUABLE EMPLOYEE
BECAUSE OF AN
IRS WAGE LEVY

The only thing worse than having your business or personal assets levied by the IRS is having to levy the wages of one of your valuable employees. Administering an IRS Wage Levy is a burden for which you are not reimbursed. If you operate a small business, an IRS Wage Levy can make things a little awkward between you and your employee. Like it or not, an IRS wage levy on one of your employees is something that cannot be overlooked as the Internal Revenue Service (IRS) and tax law compels you to seize your employees money and send it to the IRS.
Many times an employee, who is facing the prospect of having nearly all of his/her wages going to the IRS, will simply quit their job and move on. As an employer you are then faced with the expense of finding a new employee and also having to train that new employee.
DON'T LOSE A VALUABLE EMPLOYEE
FLAT FEE TAX SERVICE, INC.
WILL STOP AND RELEASE
AN 
IRS WAGE LEVY (GARNISHMENT)
IN
1 DAY / 24 HOURS


Overview

An IRS levy is legal seizure of a taxpayer's property (real or intellectual) to be applied to their delinquent tax debt. An IRS levy (garnishment) will be issued against any assets including, but not limited to: wages, Social Security, Social Security Disability (SSDI), bank accounts, homes, cars, boats and intellectual property. Before the IRS can issue a levy, it must mail a Notice of Intent to Levy and Your Right to a Hearing (CP-90, CP-91, LT 11, etc.). If your employee, the taxpayer, does not respond to the Notice of Intent to Levy by paying the debt, has made arrangements to pay it or has filed an Offer in Compromise, the IRS has the right to issue a levy against an employee's wages.



IRS Wage Levy Process

Once the IRS issues a wage levy, your first requirement is to confirm that the taxpayer is still employed with your company. Then, you are required to submit information regarding your employee, the taxpayer, salary and pay periods. Within 10 days of receipt of the notice, you are required to begin withholding from the employee's payments. Enclosed in the wage levy notice is a table for configuring your employee's levy amount. You have an obligation to adhere to the IRS levy issuance and take corresponding action within a reasonable time. 
If you do not comply with the IRS notice, the IRS will assess you fines and penalties for the collection cost as well as up to 50 percent of the total tax due. If you receive a wage levy notice for an employee who no longer works for you, attach a letter to the notice explaining the person is no longer employed with your company and send it back to the IRS.

IRS Wage Levy Considerations

Do not confuse an IRS wage levy with a voluntary payroll deduction. A voluntary payroll deduction is a method for paying an employee's monthly IRS installment agreement and an IRS Levy is a involuntary seizure of an asset. Other methods of payment include mailing in a check, making an online payment or having the payment direct debited from your account. You are under no obligation to add this administrative burden to your costs as it is 100 percent voluntary.

Warning Regarding an IRS Wage Levy

It is illegal to threaten to fire your employee over an IRS wage levy. An employer who threatens to fire an employee over an IRS levy may be subject to a $1,000 fine or imprisonment. Your employee has an IRS problem that can be resolved and possibly settled.
What Can Be Done To Help Your Employee And You, The Employer
You have an employee who you have invested time in and has become a valuable asset you you and your business. Your employee is facing a situation that may have him/her losing nearly all of their money from each paycheck. What can be done?
  1. The IRS Wage Levy can be stopped and released in 1 Day / 24 Hours.
  2. An IRS Release Form will be faxed to your business which will relieve you of any further involvement in your employee's IRS problem.
  3. Your employee can have all of their past delinquent / unfiled tax returns completed and filed.
  4. An Installment Agreement with the IRS can be implemented that will be reasonable.
  5. Your employee, if eligible, can settle with the IRS through the Offer in Compromise program.
  6. You have an employee, who is no longer distracted by the pressure that the IRS can apply, who will once again be a productive team member for your company.
FLAT FEE TAX SERVICE, INC.

IS THE 

NATIONWIDE LEADER

IN 

HAVING AN IRS WAGE LEVY (GARNISHMENT)

STOPPED AND RELEASED



I am Dave Rosa, the V.P. of Client Relations for Flat Fee Tax Service, Inc. I will conduct your employees confidential consultation. It will be my duty to your employee as well as Flat fee Tax Service, Inc., to provide an honest and straightforward evaluation of their IRS problem. Flat Fee Tax Service, Inc. has been successful in stopping and releasing an IRS Wage Levy in situations were a taxpayer has as many as 5 years of delinquent / unfiled tax returns. Make no mistake about it, if your employee has unfiled tax returns, it will be difficult to remove the wage levy. If your employee is compliant and has all of his/her tax returns filed, Flat Fee Tax Service, Inc. will have a release of your employee's Wage Levy in the hands of your payroll department within 24 hours of their becoming our client. 
WHY FLAT FEE TAX RELIEF TO STOP YOUR IRS WAGE LEVY
Experienced Tax Attorneys Work Directly with You.
Lower fees - Higher Value
Integrity, credibility, personal service & results
• IRS Wage Levy Stopped and Released in 1 Day / 24 Hours

FLAT FEE IRS RELIEF FEES ARE:
Fixed with no hidden charges
Payable in affordable monthly installments
Low initial payment to begin work
Always Competitive - Always Reasonable 
FLAT FEE IRS SOLUTIONS - Christian Values
FLAT FEE IRS SOLUTIONS - Good People - Doing Great Work
FLAT FEE IRS SOLUTIONS - No Complaints
FLAT FEE IRS SOLUTIONS - Affordable Fees
FLAT FEE TAX SERVICE, INC.
IRS WAGE LEVY RELEASE HELP - LINE
1 - 8 0 0 - 5 8 9 - 3 0 7 8
Click:
follow us on Twitter:
"like" us on facebook