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Thursday, March 15, 2018

WHERE’S  YOUR  REFUND?
IS IT SUBJECT TO A TREASURY OFFSET?
Our Enrolled Agents Tax Experts can resolve these tax problems for you before it’s too late!

When your income tax return is prepared and filed to the tax authorities, the stated “refund” amount reflects an “anticipated refund amount”.  Generally, this is the amount determined that you may be eligible to receive from either the IRS or State Department of Revenue.

However, various circumstances can result in the tax authority paying your refund to another agency to satisfy your debt instead of paying it to you.  The U.S. Department of the Treasury collects amounts owed to other federal or state agencies. This process is effectively named a “Treasury Offset”.     

This circumstance may occur if you, your spouse or your dependents have outstanding federal or state debts that you have not voluntarily paid or are deemed in default status. 

Some common unpaid federal or state debts that could lead to a seized income tax refund as an offset are outstanding federal or state tax debts from prior tax years, unpaid child support obligations, unpaid judgments or tickets, unpaid student loans debts and many others.

“Warning” from the seizing federal or state agency to the defaulted person is generally a single mailed notice letter to the affected person informing them of a pending “Treasury Offset”.  Generally, no subsequent notice letters are mailed. 

After notification has been issued, the U.S. Department of the Treasury Offset may begin upon the taxpayer’s next filed income tax return refund.  Treasury Offsets may remain on the taxpayer’s tax account for multiple tax years rendering any eligible refunds subject to seizure.

After a U.S. Department of the Treasury Offset occurs that transfers a seized refund, the applicable federal or state agency will mail a notification letter to the affected person reflecting an updated default account balance.

If you have a notice letter don’t delay, contact us to resolve these issues today! 

Delays can compromise your taxpayer rights!

Our tax professionals are knowledgeable experts that can take the necessary steps to protect you or your spouse from U.S. Department of the Treasury Offset.


Tax Facts Resolution Representation
South Region Center
(972) 596-1296

Wednesday, February 7, 2018

The IRS Installment Agreement


South Region Center
5164 Village Creek Drive, Suite 300     Plano,  TX  75093
(972)596-1296  Office            (972)807-2778  Fax

The IRS Installment Agreement

Can't Pay Your Taxes?

Don't Stress, We Can Help!

A huge tax liability bill can be stressful and many times totally unexpected.

If you currently owe a tax liability debt that you cannot pay in full, we can help determine if you may qualify for various options including exploring options for either a streamlined or non-streamlined installment agreement with the IRS. As Tax Experts, we evaluate your eligibility for the options and help you determine the best alternative that meets your needs and the alternative that will gain approval of the Internal Revenue Service. Since Tax Controversy Resolution makes up over 80% of our services, we are experts in these procedural processes and our knowledge will help get you and your family on-track with resolution.

Other “life” circumstances may be causing you to suffer a financial hardship with a true inability to pay your tax liability debt.  Whether the financial hardship is temporary or manifests more long term for you, we are experts in Tax Controversy Resolution with the knowledge and expertise to help you navigate your options, determine the best solution and represent your case in Collections procedurally seeking the most advantageous settlement in the interest of your Taxpayer Rights and the interest of the Government in the collection of tax liabilities.

Understanding the basics of how an Installment Agreement can help you!

When taxpayers are in compliance with all tax laws and filings requirements, the Internal Revenue Service has alternative options available that allow taxpayers to pay off their tax liability debts Installment Agreement. In essence, this is a loan you take from the U.S. Government to satisfy payment of your tax liability debt over a period of time.  In addition to the amount of the tax liability debt penalties applicable to the assessment and accruing interest will apply.  Sometimes interest and penalties can equal 8% to 10% per year.  Therefore, it’s always recommended to pay-off an Installment Agreement as quickly as possible.

The IRS has four different types of Installment Agreements: guaranteed, streamlined, partial payment, and non-streamlined. 

Each Installment type requires an application filing fee payable to the IRS unless the taxpayer qualifies for a financial hardship fee waiver.

Taxpayers may restructure or reinstate a previous Installment Agreement that has been rendered in default under specific allowable facts and circumstances.  A separate fee payable to the IRS is required.


 Guaranteed Installment Agreement

To qualify for a Guaranteed Installment Agreement with the IRS, the taxpayer must meet the following conditions:
  • Taxpayer owes less than $50,000.00 tax liability debt (not including interest and penalties);
  • In the previous five years, the taxpayer has filed all required tax returns, paid taxes owed, and has not entered into a prior installment agreement;
  • The taxpayer is unable to pay the tax liability when due or within 120 days after the due date;
  • The tax liability debt will be paid off in full including interest and penalties within 36 months;
and
  • The taxpayer must pay at least the minimum monthly payment which is calculated as the tax liability debt plus interest plus penalties divided by 30.

Under this payment plan, the IRS will not file a federal tax lien against the taxpayer for the amount of the outstanding tax liability debt.

Streamlined Installment Agreement

In most cases, a taxpayer that qualifies for a Guaranteed Agreement will also qualify for the Streamlined Installment Agreement. A streamlined installment agreement has the following requirements:
  • Taxpayer owes a tax liability debt, interest, and penalties that do not exceed $50,000.00;
  • The full balance of the tax liability debt can be paid off within 72 months;
and
  • The proposed monthly payment amount is equal to or greater than the "minimum acceptable payment" which is determined to be the greater of the minimum acceptable payment of $25 or the minimum payment amount as calculated by the IRS to be the tax liability debt plus interest plus penalties divided by 50.

Under this payment plan, the IRS will not file a federal tax lien against the taxpayer for the amount of the outstanding tax liability debt.

Partial Payment Installment Agreement  Or  Compromise Agreements

A Partial Payment Installment Agreement permits the IRS to enter into Compromise Agreements with taxpayers for the partial payment of their tax liability debts. These provisions have strict qualifications rules and complex procedural requirements, but can often relieve either a portion or even a significant amount of the taxpayer’s tax liability debt.  We specialize in resolving these tax controversy case types when the taxpayer can demonstrate either a temporary or long-term financial hardship through an in-depth review and analysis of the taxpayer’s current and future financial position. 

Upon submission of proper documentation, the IRS will review a variety of the taxpayer’s information relating to the taxpayer’s income sources, debts, living expenses, assets owned, accounts balances to name just a few and verify the taxpayer’s financial statement information to render a determination on the extent of the taxpayer’s financial hardship.  Then a determination is made on the extent of the taxpayer’s financial hardship and a determination is made on the eligibility for the tax liability debt to be compromised in the interests of the Taxpayer’s Rights and in the interests of the Government’s necessity to collect tax debts. 
In these circumstances, if the taxpayer has certain types of assets that can be sold to pay at least a portion of the tax liability debt, the IRS may require additional information to be provided relating to those assets and may require implementation of arrangements for the sale of those assets.

Other circumstances that could impair acceptance of a proposed Partial Payment Installment Agreement if the IRS considers some of the taxpayer's living expenses to be unnecessary or above a reasonable amount.  In these circumstances, a taxpayer may be required to make living or spending adjustments that would afford them more disposable income to satisfy their tax liability debts.

These agreement types or a currently not collectible status require a financial review of the taxpayer’s financial hardship condition every two years. Depending upon the determination decision of the bi-annual review, either a decrease or increase in the taxpayer’s monthly installment payments may be warranted.  In some circumstances, a termination of the agreement may instead be warranted.

Non-Streamlined Installment Agreement Or  Compromise Agreements

When a taxpayer owes $50,000.00 or more in tax liability debt, interest and penalties and can routinely and consistently make monthly payments to the IRS in satisfaction of the tax debt, then a Non-Streamlined Agreement is a viable option.

These are more complex plans requiring negotiated settlement with the IRS to achieve acceptance of the taxpayer’s proposed installment agreement payment amount.  These provisions similarly have strict qualifications rules and complex procedural requirements, but can often relieve either a portion or even a significant amount of the taxpayer’s tax liability debt.  We specialize in resolving these tax controversy case types when the taxpayer can demonstrate long-term financial hardship through an in-depth review and analysis of the taxpayer’s current and future financial position. 

Similarly, upon submission of proper documentation, the IRS will review a variety of the taxpayer’s information about income sources, debts, living expenses, assets owned, accounts balances to name just a few and verify the taxpayer’s financial statement information to render a determination on the extent of the taxpayer’s financial hardship and a determination on the extent of the tax liability debt to be compromised in the interests of the Taxpayer’s Rights and in the interests of the Government’s necessity to collect tax debts. 

Also in similarity, when a taxpayer has certain types of assets that can be sold to pay at least a portion of the tax liability debt, the IRS may require additional information to be provided relating to those assets and may require implementation of arrangements for the sale of those assets to facilitate payment then will render a determination relating to the remaining tax liability debt, interest and penalties.

Similarly also a determination that some of the taxpayers living expenses are unnecessary or above reasonable amounts, the IRS may require living or spending adjustments that would afford the taxpayer more disposable income to satisfy their tax liability debts.

Our Tax Expert’s knowledge and experience in analyzing, navigating and negotiating these settlements is unsurpassed in the industry.  We help you achieve life changes that will help you now and in the future.

Various Ways to Make Installment Agreement Payments!
Taxpayers can make IRS Installment Agreement monthly payments using a variety of methods:
  • Payroll deductions;
  • Direct debits from a checking or savings account;
  • Mailed Checks or Money Orders;
  • Electronic Federal Tax Payment System (EFTPS) checking or savings account debits;
  • Credit cards payments;
  • Online Payments Agreement (OPA);
When Will the IRS Revoke an Installment Agreement?
The IRS has the ability to revoke an Installment Agreement under many different circumstances, here are a few of the most common circumstances that will provoke revocation:
  • The taxpayer misses a scheduled payment;
  • The taxpayer does not file a tax return or pay taxes for a subsequent tax year after an Installment Agreement is entered into relating to a prior year tax liability debt;
  • The taxpayer provided inaccurate information on a financial statement submitted to instate the Installment Agreement;
or

  • The taxpayer is making monthly payments under an approved Partial Payment Installment Agreement and a review indicates a change in the taxpayer’s financial position.

Wednesday, January 31, 2018

Does your business owe back payroll taxes?

Does your business owe back payroll taxes?

If so, these are serious tax compliance issues we can assist you in resolving before this happens to you! When business owners fail to timely and properly make the payroll tax liability payments it’s much more of a problem than just the fact that the payroll taxes have not been paid.

The IRS can assess Trust Fund Recovery Penalties on the business owners, officers, shareholders, partners, employees, spouses or anyone else who had knowledge of the outstanding payroll taxes and the capability to have made those payments but didn’t do so. Anyone who has accounts and payments authority or ability is at risk for a Trust Fund Recovery penalty assessment that is 100% of the outstanding payroll taxes! That’s not a misprint folks, TFRP is a 100% civil penalty.

That means that the TFRP is assessed to the responsible parties as a personal liability and when it is not paid by those responsible parties personally, then the IRS can pursue collection by a levy which is an assignment for collection.  Keep in mind a TFRP 100% penalty is in addition to the outstanding payroll taxes due.

Click on the link below to read a Tax Court case this week of a business owner who failed to pay the payroll taxes, was assessed TFRP penalty and although he claimed he suffered a “financial” hardship neither the IRS nor the Court sees his claims of financial hardship quite the same way he does.

Folks, please read this so you understand what can and will happen. Let us help you resolve any outstanding payroll tax liability issues before there’s a TFRP penalty assessment.

Share this information if you know of any business owner’s in these circumstances!


Tax Facts Resolution Representation
South Region Center
(972)596-1296

Monday, January 29, 2018

Business Losses Disallowed

If you own a business, this one’s for you!

Businesses claiming losses year after year with NOLs and carrybacks is a significant problem.
We provide professional advisement for business owners of the substantiation requirements for their business income, expenses as well as requirements to prove what actions they have taken to improve business operations to minimize losses under the mandatory tax laws that a business is engaged with a profit motive.

Some business owners “heed” the advisement to improve performance, records substantiation and the credible ability to justify the losses more than just by the fact that it was claimed on the filed tax returns. Other business owners don’t heed the advisement and subsequently fail to be able to establish that the business was operating with a true profit motive as is required by the IRS.

At least once a week we hear from business owners who say “my accountant says claiming losses is fine”! Poor advice.

Continually claiming business losses with the intent to offset other taxable income, therefore, reducing overall tax liability is a substantial problem. It’s not just us as Professional Tax Experts saying so. It’s the tax law and we encourage every business owner to read this linked recent U.S. Tax Court case.

Joy Ford had an operating business establishment as a music club venue featuring live country music. As with many “cash-intensive” businesses, Joy obviously failed to properly report the business activity’s “actual” income revenues which ultimately serves to bite-her-in-the-butt. Joy claimed huge business operating expenses, kept little viable receipts or statements of the business’s true expenses.  Joy had other issues lurking for her too!

Joy’s lack of provable profit motive, lack of listening to business advisement and “elements” of her own personal enjoyment in operating the country music venue resulted in the business activity being deemed by the court as a hobby activity not engaged for profit.
Huge issue! Hobby activities cannot report a loss. Hobby activities can only deduct certain types of expenses to the extent of “income generated and reported”.

If you’re a business owner, grab a cup of coffee, tea or your fave beverage then click on the link below to read this tax case. It’s a “short” 7 pages in comparison to most cases that are usually much longer.  We believe you will learn a lot.

These are not just our words as Tax Experts!
This is how the tax laws are and how the courts will rule on the case. 
    
https://www.ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11564

Sunday, January 28, 2018

Enrolled Agents Tax Experts Video

To learn more about what we can do for you visit our website.
https://www.taxfacts.co/

Saturday, January 20, 2018

GOVERNMENT SHUTDOWN; WHAT IT MEANS FOR YOU!

GOVERNMENT SHUTDOWN; WHAT IT MEANS FOR YOU!
We have received an extensive amount of calls and concerns regarding the impact of the current U.S. Government Shutdown and want to share with you the immediate impact information we have received.

Numerous government agencies will be impaired since Congress failed to pass an operating spending bill.

There will be a mandatory furlough of non-essential governmental employees, so many government offices and services operations will be impacted.  Many federal agencies and departments will be reduced to essential services only including the IRS.

Currently certain agencies will continue to operate, this includes the U.S. Postal Service, Social Security Administration, Veterans Administration, Medicare and Medicaid programs.  This means that mail will continue delivery, Social Security checks will be disbursed, medical services will be provided for veterans and those receiving benefits of Medicare and Medicaid. The Transportation Security Administration will continue to operate but due to the mandatory furlough of non-essential government employees TSA may incur staff reductions that will impact air travel.

What this means for you and your taxes!
All prevailing tax law remains in affect and all taxpayers remain obligated to meet all tax obligations as normal.

The IRS will need to continue processing activities to the extent necessary to protect government property and assets which includes the collection of tax revenue which maintains the integrity of the Federal tax collection process and will continue certain other authorized activities under the Anti-Deficiency Act.

Both individuals taxpayers and business taxpayers remain responsible for timely filing and timely payment of tax obligations including estimated tax payments, payroll taxes payments etc.  No extensions apply due to the Federal Government Shutdown.

If you are subject to a Direct Debit Installment Agreement, know that the U.S. Department of the Treasury will continue those withdrawals on the specified dates of the prior agreement.

If you are subject to an Agreed Estimated Tax Payments Direct Debit, know also that the U.S. Department of the Treasury will continue those withdrawals on the specified dates.

Some significant delays you can expect due to IRS furlough of non-essential employees includes:

IRS tax refunds issuing will be delayed!

Scheduled IRS examinations, audits and appeals functions will recognize delays, but this does not mean that they will not transpire.  Taxpayers subject to examination, audit or appeals actions remain obligated to stated compliance dates.  If you have received an IRS Notice of pending action, please contact us immediately to resolve these issues.  IRS offices, service centers and call centers will be shut down and not responding to taxpayer questions.

U.S. Tax Court has informed us that trials sessions currently scheduled for the week of January 22, 2018 will proceed at the scheduled trial locations.  The Court expects that all trial locations will be accessible for use during the week of January 22nd.  U.S. Tax Court anticipates continuing normal operations for as long as funding permits.  They will provide us further guidance on the status of future scheduled trial dates.

The filing of your 2017 income tax returns remains subject to the current filing deadlines for all returns types.  There will be no extension to the current filing deadlines.  However, the IRS service centers will currently only be processing returns to the point of batching whether the returns are electronically filed or paper filed.

The filing of amended Form 1040X returns will be delayed.

If the Government Shutdown extends beyond five business days, the IRS will be reassessing mandatory activities and the impact of diminishment to non-essential activities and will provide us with further guidance we will share with you as soon as possible.

We specialize in the tax matters that affect you, your family and your businesses everyday.
Experience the difference we can do for you! 

TAX FACTS RR FINANCIAL CONSULTING
South Region Center
(982)596-1296 

Monday, November 3, 2014

AFFORDABLE CARE ACT Health Care Tax Tips



Report Changes in Circumstances that May Affect Your Premium Tax Credit

If you enrolled in health care insurance coverage through the Health Insurance Marketplace , you are required to report changes to the Marketplace when they occur. This includes changes to your household income or family size, because these amounts may affect your eligibility for advance payments of the premium tax credit that is utilized to reduce your monthly health insurance premiums costs.

There is still time left this year to report changes. 

Reporting changes will help you avoid getting too much or too little advance payment of the premium tax credit.  The result of getting too much premium tax credit is that you may owe additional taxes when your income tax returns are filed or you may qualify for less federal refund.  The result of getting too little premium tax credit is that you may be missing out on valuable health care insurance premium assistance that reduces monthly premiums you personally pay. Therefore, it is important that you report changes in circumstances that may have occurred since you initially signed up for your health care insurance plan.  


Here are some common changes that require immediate reporting:
Any increase or decrease in your income 
Marriage or divorce 
The birth or adoption of a child 
Starting a job that provides health insurance benefits for their employees 
Gaining or losing your eligibility for other health care coverage 
Changing your residence
For the full list of changes you should report, visit


To find out more about the premium tax credit and other tax-related information about the health care law, visit IRS.gov/aca.


The Internal Revenue Service has videos explaining the premium tax credit available on the