Owe Back IRS Payroll Tax – You can do jail time – Hire former IRS Agents – Payroll Tax Settlements – Miami, Ft.Lauderdale, Palm Beach

By Michael Sullivan | Published: February 22, 2012

Owe Back Payroll Taxes, better listen up!

Many people are unaware that owing IRS back payroll taxes can land you in prison. As a former IRS Agent I recommended certain business owners to Criminal Division because of back payroll taxes.

Payroll Taxes are taxes held in trust to be paid over to the IRS at prescribed periods of time. Osvaldo Martinez apparently do not know that.

A Hollywood man was sentenced Wednesday to two years in prison for failing to pay more than $1.78 million in federal income taxes that he withheld from his former employees, prosecutors said.

Osvaldo Martinez, 51, had pleaded guilty to one count of willfully failing to pay income taxes, court records show.

Prosecutors said that he withheld employee payroll taxes from employees at Clinicas Finlay, Inc., a medical services company he operated in Miami-Dade County until 2007.
U.S. District Judge Marcia Cooke ordered Martinez to turn himself in to begin serving his federal prison sentence on April 11.

If you owe back payroll taxes it is very easy to avoid this situation of prison time.

It is of utmost importance you become current immediately and make sure all your  payroll tax returns are current. If you fail to file and deposit you will get the attention of the IRS.

IRS has special programs called the FTD Alerts or Federal Tax Deposits Alerts System that triggers out to the local offices when 941 filers fail to file and pay back payroll taxes.

Should you be in this situation call us today so we can intervene, stop the IRS and work out a tax payroll settlement.

Owing back taxes, payroll taxes is the highest priority of local Collection offices simply because it is not a tax but a trust. You can expect in the future many more arrests.

We are Former IRS agents that can immediate help with these tax payroll tax situations on back taxes.

We have over 205 years of professional tax experience and over 60 years in the local offices.

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IRS Tax Attorney, IRS Tax Lawyer – Chose the right Tax Representative

By Michael Sullivan | Published: February 21, 2012

IRS – Tax Attorney / Tax Lawyer

At Fresh Start Tax L.L.C. we have on staff Board Certified Tax Attorneys, Certified Public Accountants, Enrolled Agents, Former IRS Agents, Managers and Instructors including a Former IRS Appeals Agent of 35 years with the IRS.

We have 205 years of total IRS tax experience and over 60 years of direct work experience at the local, district and regional offices of the Internal Revenue Service.

We also taught Tax Law at the Internal Revenue Service.

IRS tax problems and issues can mean a very stressful time for any taxpayer. An IRS Tax Attorney IRS Tax Lawyer, CPA or Enrolled Agent (EA) Agent can help you through any tax problem,help lower your tax debt and help settle any IRS tax debt you may currently have. The IRS is the largest and most powerful collection agency in the world and it takes an experienced and knowledgeable tax representative to help you in choosing the correct tax options. At Fresh Start tax LLC we have many years of experience in dealing with IRS issues and all other IRS tax problems in the audit and the collection area.

Fresh Start Tax LLC offers a team approach and each case worked by Fresh Start Tax has two assigned tax professionals working your case.

Getting the most out of your money – Choosing the right tax representative

There are three general levels of representation before the Internal Revenue Service.

1. Tax Attorney / Tax Lawyer

2 .Certified Public Accountants and

3. Enrolled Agents.

Each can represent you before the IRS and all are licensed to represent your very best interest. It is important to find out how the same result can be done for the lower cost. All can be good choices.

As a Former IRS Agent of 10 years, many tax representatives came into the IRS office I was assigned to. There were huge differences among the types of tax representatives. The ones that charged the most did not necessarily know what they were doing. IRS expereince is the key.

As a general rule, pick the representative who worked at the IRS. A person who worked at the IRS know all the tricks, techniques, and procedures to make your case go easily through the system.

Each particular representative brings different aspects of a  tax specialty to the table and before a taxpayer goes to hire a tax professional it is best to know how to get the most bang for your buck.

You do not want to overpay fees if you do not need to. Many times it is not necessary to hire tax attorneys or tax lawyers. Generally bills from tax attorneys, tax lawyers are between $2-400 dollars an hour and their fees are overkill. Many have little of no IRS experience. If you have an IRS problem it is always best to hire a Former IRS employee because they have the knowledge of tax procedures, settlement guidelines and audit techniques. In most cases CPA’s and Enrolled Agents are your best bet an all IRS administrative matters.

IRS Tax Attorney /Tax Lawyer

Generally taxpayers want to hire tax attorneys / tax lawyers if there are criminal or court actions that will be taking place. Tax Attorneys / Tax Lawyers are trained to interpret the law and codes and become your advocate in tax court or district court.Tax Attorneys /Tax Lawyers also keep up with the ever changing rules, regulations and codes that govern our tax system. Tax Attorneys also give you the advantage of having an attorney client privilege in all matters. It really becomes helpful in all criminal tax matters. If you receive a letter from criminal investigation your only option should be a tax attorney or tax lawyer. You want to make sure that Tax Attorney or Tax Lawyer has IRS experience and has worked several hundred cases before IRS and D.O.J. Tax Attorneys are the only place to go on any Offshore Account situations.

Certified Public Accountants

Hiring a Certified Public Accountant is extremely important when dealing with complicated tax issues on individual, partnership or corporate tax issues. With the tax codes changing every year it is always best to hiring true tax professionals in dealing with the accounting and tax filing of tax returns. Certified Public Accountants are generally used in tax return preparation and tax defense of a tax return under tax audit. it is always best to make sure they have years of tax experience under their belt in tax preparation. You can retained Accountant/client privilege on all civil matters.

Enrolled Agents

An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. They must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients.

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Unemployment Compensation Benefits – Expert Tips – Former IRS – Tax Experts

By Michael Sullivan | Published: February 16, 2012

 Tips on Unemployment Benefits from Former IRS Agents. Call us should you have further questions.

Taxable or Non-Taxable, find out up front from the payer.

Unemployment compensation.

Generally unemployment compensation includes among other forms, state unemployment compensation benefits, but the tax implications depend on the type of program paying the benefits. you should check and find out whether the benefit is taxable from the start so you do not have a tax problem at a later time.

You must report unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ.

Here are some great tips from the IRS about Unemployment Benefits.

1. You must include all unemployment compensation you receive in your total income for the year. You should receive a Form 1099-G, with the total unemployment compensation paid to you shown in box 1.

2. Other types of unemployment benefits include:

a. Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund
b. Railroad unemployment compensation benefits
c. Disability payments from a government program paid as a substitute for unemployment compensation
d. Trade readjustment allowances under the Trade Act of 1974
e. Unemployment assistance under the Disaster Relief and Emergency Assistance Act
f. For complete information on each of the benefits listed, see chapter 12 in IRS Publication 17, Your Federal Income Tax, or Publication 525, Taxable and Nontaxable Income.

3. You must report  the unemployment compensation benefits paid to you as an unemployed member of a union from regular union dues.

However, if you contribute to a special union fund and your payments to the fund are not deductible, you only need to include in your income the unemployment benefits that exceed the amount of your contributions.

4. You may choose to have federal income tax withheld from your unemployment compensation. We would highly recommend this.

To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. Taxes will be withheld at 10 percent of your payment. If you choose not to have tax withheld, you may have to make estimated tax payments throughout the year.

5. Should need you need a professional tax preparer call us today, we can audit proof your tax return.

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Tax Return Deductions Quilifications – Medical & Dental Tax Deductions – Former IRS Agents/Experts

By Michael Sullivan | Published: February 16, 2012

Medical and Dental Expenses allowed by the Internal Revenue Service that qualify for tax deductions. Make sure you keep your receipts!

This list includes both Medical and Dental.

If you or your spouse or dependents had significant medical or dental costs in 2011, you may be able to deduct those expenses when you file your tax return

What you should know about the TAX LAW:

1. You must itemize to qualify for medical and dental expenses.This is done on a  Form 1040, Schedule A.

2. The deduction is limited.

You can deduct total medical care expenses that exceed 7.5 percent of your adjusted gross income for the year. You figure this on Form 1040, Schedule A. on your tax return.

3. Expenses must have been paid in 2011.

You can include the medical and dental expenses you paid during the year, regardless of when the services were provided. You will need to have good receipts or records to substantiate your expenses if your tax return is audited by the IRS.

4. You cannot deduct reimbursed expenses.

Your total medical expenses for the year must be reduced by any reimbursement. Normally, it makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital. You receive the money back no deduction, it is that simple.

5. Whose expenses  may qualify.

You may include qualified medical expenses you pay for yourself, your spouse and your dependents. Some exceptions and special rules apply to divorced or separated parents, taxpayers with a multiple support agreement or those with a qualifying relative who is not your child.

6. Types of expenses that qualify for the medical or dental deductions.

You can deduct expenses primarily paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting any structure or function of the body. For drugs, you can only deduct prescription medication and insulin.

You can also include premiums for medical, dental and some long-term care insurance in your expenses. Starting in 2011, you can also include lactation supplies.

7. Transportation costs may qualify for a tax deduction.

You may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses. You can also deduct the actual fare for a taxi, bus, train, plane or ambulance as well as tolls and parking fees.

If you use your car or other vehicle for medical transportation, you can deduct actual out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses, which is 19 cents per mile for 2011.

8. Tax-favored saving for medical expenses Distributions from Health Savings Accounts and withdrawals from Flexible Spending Arrangements may be tax free if used to pay qualified medical expenses including prescription medication and insulin.

9. Should you have any questions call us today and get the answers from Former IRS Agents.

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Child Tax Credit – Tax Credits and Deductions – Former IRS Tax Preparation

By Michael Sullivan | Published: February 15, 2012

One of the great tax deductions are for those with taxpayers having children. The Federal Government allows credits for those who met certain test requirements. Below find the key points and take advantage and the credits offered.

The  Internal Revenue Service – Child Tax Credit

The Child Tax Credit is available to eligible to those taxpayers with qualifying children under age 17.

The IRS would like you to know these facts about the child tax credit. Take full use of these tax credits.

1. Amount With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under age 17.

2. Qualifications.

A qualifying child for this credit is someone who meets the qualifying criteria of seven tests:

Age, Relationship, Support, Dependent, Joint Return, Citizenship and  lastly Residence.

3. Age.

Test- To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011.

4. Relationship.

Test- To claim a child for purposes of the Child Tax Credit, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

5. Support.

Test-  In order to claim a child for this credit, the child must not have provided more than half of his/her own support.

6. Dependent.

Test – You must claim the child as a dependent on your federal tax return.

7. Joint return.

Test  – The qualifying child can not file a joint return for the year (or files it only as a claim for refund).

8. Citizenship test To meet the citizenship test, the child must be a U.S. citizen, U.S. national or U.S. resident alien.

9. Residence.

Test  – The child must have lived with you for more than half of 2011. There are some exceptions to the residence test, found in IRS Publication 972, Child Tax Credit.

10. Limitations.

The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies by filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax and any alternative minimum tax you owe.

11. Additional Child Tax Credit If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.

Should you have any questions regarding these credits  and are need of former IRS Agents to prepare and audit proof your return call us today.

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Tax Law Changes for 2011 – Summary Tax Guide for Easy Reading – Tax Prep by Former IRS Agents

By Michael Sullivan | Published: February 9, 2012

Each year Tax Law changes are made and in many cases help the taxpayers. Before filing your tax return check on any and all changes that may effect your tax return.

Stay out of a  IRS tax audit and by all means take advantage of all tax credits.

Should you have any questions, call us today. As former IRS Agents we can help navigate you through this process

Tax Law Changes for 2011 Federal Tax Returns

Due date of return.

You can file your federal tax return by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia. Thanks DC!

New forms.

In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.

Standard mileage rates.

The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.

Standard deduction and exemptions increased, finally!!!

The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status.

The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.
Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.

Alternative minimum tax (AMT) 

This years exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).

Health savings accounts (HSAs) and Archer MSAs.

The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.

Roth IRAs.

If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.

Alternative motor vehicle credit.

This year you can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.

First-time homebuyer credit.

The credit expired for most taxpayers for 2011. Sadly!

Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.

Health coverage tax credit.

Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.

Should you need tax help or tax preparation by Former IRS agents call us today.

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Are Social Security Benfits Taxable – Your Answer – Former IRS Agents

By Michael Sullivan | Published: February 8, 2012

This is one of the common questions we are asked at our Tax Firm. There is much misunderstanding about this issue. I hope these answers may help you.

By the way, if you are looking for former IRS Agents to prepare your tax returns call us today.

Top Tax Tips to Help You Determine if Your Social Security Benefits are Taxable

Many people may not realize the Social Security Benefits they received in 2011 may be taxable.

All Social Security recipients should receive a Form SSA-1099 from the Social Security Administration which shows the total amount of their benefits. You can use this information to help you determine if your benefits are taxable.

Top tips:

1. How much , if any ,of your Social Security Benefits are taxable depends on your total income and marital status.

2. Generally, if Social Security benefits were your only income for 2011, your benefits are not taxable and you probably do not need to file a federal income tax return.

3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status (see below).

4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet. Your tax software program will also figure this for you.

5. You can do the following quick computation to determine whether some of your benefits may be taxable:

a. First, add one-half of the total Social Security benefits you received to all your other income, including any tax-exempt interest and other exclusions from income.
b. Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.

6. The 2011 base amounts are:

$32,000 for married couples filing jointly.
$25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouse at any time during the year.
$0 for married persons filing separately who lived together during the year.

Hope this helps. Call us for the finest tax prep services.

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IRS Earned Income Tax Credit – 4 out of 5 taxpayers Eligibile – IRS Tax Experts – Former IRS

By Michael Sullivan | Published: February 6, 2012

Are you Eligible for the Earned Income Tax Credit?

Find out right now by reading the information below or calling our firm today.

Check your Eligibility for Earned Income Tax Credit

The Earned Income Tax Credit is a financial boost for workers earning $49,078 or less in 2011.

Four of five eligible taxpayers filed for and received their EITC last year. The IRS wants you to get what you earned also, if you are eligible.

Here are the top things the IRS wants you to know about this valuable credit EITC, which has been making the lives of working people a little easier since 1975.

1. Always check the new tax law changes each year. As your financial, marital or parental situations change from year to year, you should review the EITC eligibility rules to determine whether you qualify. Just because you did not qualify last year does not mean you won’t this year.

2. If you qualify, this credit could be worth up to $5,751.

EITC not only reduces the federal tax you owe, but could result in a large refund.

The amount of your EITC is based on your earned income and whether or not there are qualifying children in your household. The average credit was around $2,240 last year.

3. If you are eligible for EITC, you must file a federal income tax return and specifically claim the credit – even if you are not otherwise required to file. Remember to include Schedule EIC, Earned Income Credit when you file your Form 1040 or, if you file Form 1040A, use and retain the EIC worksheet.

4. You do not qualify for EITC if your filing status is Married Filing Separately.

5. You must have a valid Social Security number for yourself, your spouse – if filing a joint return – and any qualifying child listed on Schedule EIC.

6. You must have earned income.

You have earned income if you work for someone who pays you wages, you are self-employed, you have income from farming, or – in some cases – you receive disability income.

7. Married couples and single people without children may qualify. If you do not have qualifying children, you must also meet the age and residency requirements, as well as dependency rules.

8. Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.

9. It’s easy to determine whether you qualify. The EITC Assistant, an interactive tool available on the IRS website, removes the guesswork from eligibility rules.

Just answer a few simple questions to find out if you qualify and estimate the amount of your EITC.

10. Free help is available at Volunteer Income Tax Assistance sites to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software will figure the credit for you. To find a VITA site near you, visit the IRS.gov website.

Contact our tax firm today for immediate tax help or tax preparation.

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IRS Tax Representation – Miami, Ft.Lauderdale, Palm Beaches – Former IRS Agents – IRS Attorneys, IRS Lawyers

By Michael Sullivan | Published: February 6, 2012

We are a specialty tax firm specifically equipped for IRS Tax Representation.  We are comprised of:

1. Board Certified Tax Attorneys / IRS Tax Lawyers,

2. Certified Public Accountants,

3. Former IRS Managers / Agents,

4. Enrolled Agents,

5. Former IRS Employees

We have a combined 205 years of professional tax experience and over 60 years of direct IRS experience in the local South Florida district and regional offices of the Internal Revenue Service.

If you are dealing with the IRS there are certain internal procedures, policies and internal manuals that the public and other practitioners are completely unaware of. Because of our 60 years of IRS experience we know all of these internal procedures and settlement policies.

Many of these procedures deal with IRS tax settlements, IRS audit procedures, IRS levies and liens. Because of vast amount of tax direct tax experience with the IRS we can completely and permanently resolve these issues.

How to chose a tax firm for IRS Tax Representation.

Before choosing any professional tax firm check out the FIRM experience on their website. Do not be fooled by website advertisement. Make an appointment and have a face to face meeting with the tax professional,

Make sure you can speak directly to the person that will be working your case,

How long has the firm been in practice,

Lastly, check the BBB rating of the tax firm.

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Name change – What to do for tax purposes – IRS Tax Help

By Michael Sullivan | Published: February 6, 2012

Did you recently change your name?

Here are some tax tips to help you through the process.

Tips for Recently Married, Divorced Taxpayers  or others who recently had a Name Change

If you changed your name after a recent marriage or divorce, the IRS reminds you to take the necessary steps to ensure the name on your tax return matches the name registered with the Social Security Administration. A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your refund.

Here are tips from the IRS for recently married, divorced taxpayers or other individuals who have a name change.

1. Hyphenated Names – If you took your spouse’s last name — or if you hyphenated your last names, you may run into complications if you don’t notify the SSA.

When newlyweds file a tax return using their new last names, IRS computers cannot match the new name with their Social Security number.

2. If you recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.

3. Informing the SSA of a name change is easy. Simply file a Form SS-5, Application for a Social Security Card, at your local SSA office or by mail and provide a recently issued document as proof of your legal name change.

4. Form SS-5 is available on SSA’s website at http://www.socialsecurity.gov/, by calling 800-772-1213 or at local offices.

Your new card will have the same number as your previous card, but will show your new name.

5. If you adopted your spouse’s children after getting married and their names changed, you’ll need to update their names with SSA too. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS.

The ATIN is a temporary number used in place of an SSN on the tax return. Form W-7A is available on the IRS.gov website or by calling 800-TAX-FORM (800-829-3676).

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