If you have received an IRS tax audit notice, do not panic, this is not the end of the world. Fresh Start Tax has a combined 205 years of professional tax experience and over 60 years of working directly for the IRS in the local, district and regional offices of the IRS.

Persons receiving these tax audit notices are usually freaked out when calling our office. Just relax and take a deep breath, it is not going to be as bad as you think as long as a true tax professional is handling your case.

There are generally two types of IRS tax audits, office or field audits and mail correspondence audits.

Last year’s results from IRS tax audits nationwide:

1. Total field audits comprised of over 391,000 tax audits

2. IRS mail correspondence comprised of 1,173,069

3. Bearing this in mind your odds of a tax audit are 1.11%

IRS field and tax audits are usually done in large parts by office auditors that work in IRS field offices. These are conducted at the IRS office in your town or area. These are usually small dollar audits.

Large dollar cases are audited by Revenue Agents highly trained and seasoned IRS Agents. If you have a Field Agent requesting a tax audit it is always best interested to be professionally represented. These types of audits and last two days up to several weeks. We have had agents work several days in our office. You should never have the Agent conduct the audit at your home or place of business.

If you are having a mail correspondence tax audit you likely got a notice from either the IRS’s Automated Underreporter or the Correspondence Examination (Exam) Unit.

For an Automated Underreporter or AUR a notice is sent when differences are detected between information you report on your tax return and information a third party, such as an employer or bank — reported on a Form W-2 or 1099. AUR will issue Notice CP-2501 or Notice CP-2000.You’ll see this on the upper right corner of the notice.

This type of mail exam will often ask for proof of items you’ve taken as a deduction or claimed as a credit on your return. An exam uses several different letters to contact taxpayers about such differences, but the most common are the CP-75 and a 566 Letter. You’ll see this on the upper right corner of the notice.

Some important insight that may be helpful to you: If your tax return is very clean, do the tax audit yourself. If you feel you fudged on your tax return do not dare represent yourself.

Tax professionals have ways and methods to get the IRS to accept some issues because they understand the settlement techniques of IRS. A key point to remember is that the Agent reviewing your tax return may feel they want to pick up other tax years besides the year that is actually open for the tax audit. This is something you do not want to happen. Once again a good tax professional can help avoid this type of situation.

Once you receive the tax audit notice it is prudent to bring your notice to tax professional along with a copy of your tax return and your tax records supporting the years in question. Let the tax professional conduct a mini audit to determine the strength and weakness of the case. From there you can develop a strategy to best handle the case.

Lastly, if you are going to owe monies to the IRS, a good tax professional can work out a tax settlement to pay the IRS back taxes without disturbing your life style.

In looking for your tax professional always check the credibility, the credentials, the experience and whether the person has worked with the IRS.

If the person is a seasoned veteran and a former IRS Agent your chance of success is high and it will take the worry out of your life.

You can always appeal any findings that IRS may send your way so never get caught up with the first go round. If you are in need of a seasoned veteran and former IRS Agent to assist you in your IRS Audit, contact Fresh Start Tax today. We can reduce the impact of your Tax problem on your personal and financial life. 

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Are Social Security Benefits Taxable?

If you retired last year, and started receiving social security payments. Do I have to pay taxes on my social security benefits?

Social Security benefits include monthly retirement, survivor, and disability benefits.

They do not include supplemental security income (SSI) payments, which are not taxable.

The amount of social security benefits that must be included on your income tax return and used to calculate your income tax liability depends on the total amount of your income and benefits for the taxable year.

To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of:

One-half of your benefits.
All of your other income, including tax-exempt interest.

The base amount for your filing status is shown next:

$25,000 if you are single, head of household, qualifying widow(er) or married filing separately living apart from your spouse at any time during the tax year.

$32,000 if you are married filing jointly.

$-0- if you are married filing separately living with your spouse at any time during the tax year.

The taxable amount of the benefits can be figured on a worksheet in the Form 1040 Instructions or Form 1040A Instructions , or in Publication 915, Social Security and Equivalent Railroad Retirement Benefits.

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We can close and settle your IRS Case!  We taught Tax Law at the IRS.

We are IRS Tax Experts. We are Former IRS Agents, Managers and Instructors that have over 60 years with the IRS.

We know all the formulas and tax strategies to get your case in the Hardship file if you qualify for it.

Call us for a free tax consult.

5.16.1.2.9 (04-29-2011)
Hardship

Follow the procedures in IRM 5.15.1, Financial Analysis Handbook, to determine the correct resolution of the case based on the taxpayer’s assets and equity, income and expenses:

A hardship exists if a taxpayer is unable to pay reasonable basic living expenses.

The basis for a hardship determination is from information about the taxpayer’s financial condition provided on Form 433–A, Collection Information Statement for Wage Earners and Self-Employed Individuals or Form 433–B, Collection Information Statement for Businesses.

Generally, these cases involve no income or assets, no equity in assets or insufficient income to make any payment without causing hardship.

An account should not be reported as CNC if the taxpayer has income or equity in assets, and enforced collection of the income or assets would not cause hardship.

Reminder:

Hardship closing codes can only be used for individual or joint IMF assessments, sole proprietorships, general partnerships, and LLCs, where an individual owner is identified as the liable taxpayer. See IRM 5.16.1.2.4 for decedent cases.

Verification of a CIS is not required if the aggregate unpaid balance of assessments is less than ≡ ≡ ≡ ≡ ≡ and the information on the CIS appears reasonable.

Under certain conditions, a CIS is not required before reporting an account CNC. The aggregate unpaid balance of assessments, including any prior CNC’s, must be less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and at least one of the following conditions must exist:

The taxpayer has a terminal illness or excessive medical bills.

The taxpayer is incarcerated.

The taxpayer’s only source of income is social security, welfare, or unemployment.

The taxpayer is unemployed with no source of income. Consider a mandatory follow-up or Manually Monitored Installment Agreement (MMIA) for seasonal workers.

Note:

Employees are required to secure documentation from the taxpayer prior to declaring the account uncollectible if internal documents such as IRPTR and RTVUE do not confirm the taxpayers’ circumstance.

RTVUE/TRDBV is required only if the last filed return was for one of the immediate two preceding years. If RTVUE reveals new income or asset information secure a copy of the return(s) for the purpose of identifying income or assets.

For accounts where the aggregate unpaid balance of assessments is above ≡ ≡ ≡ ≡ ≡ the following additional verification is required:

Full credit report on IMF and sole proprietor taxpayers and LLCs (where an individual owner is identified as the liable taxpayer)

Motor vehicle records

Real and personal property courthouse records, see IRM 5.1.18.4, Real Property Records

On-line locator services, such as Accurint, follow security guidelines when using public internet search engines

Credit reports are optional for accounts with an aggregate balance below ≡ ≡ ≡ ≡ ≡ ≡ .

IMF accounts and BMF accounts of sole proprietorships, partnership and LLCs, (where an individual owner is identified as the liable taxpayer) that cannot be collected due to bankruptcy, will be closed using hardship closing codes.

IRC 6343(e) requires the immediate release of a levy on salary or wages due a taxpayer upon agreement with the taxpayer that the tax is not collectible. See IRM 5.11.2, Serving Levies, Releasing Levies and Returning Property. Case histories must be reviewed to ensure that wage levies are released prior to declaring an account uncollectible under hardship closing codes. The case history must be documented.
Reminder:

A compliance check will be made and the results documented in the case history for all hardship determinations per IRM 5.16.1.1(5). All open filing requirements or Del Ret modules must generally be resolved and closed appropriately when reporting an account CNC.

If a hardship determination is verified, a levy cannot be issued or left in place to persuade a taxpayer to file.

Accounts may be reported CNC hardship if a CIS can be verified, even if there are unfiled returns. If the unfiled return is needed to confirm the hardship determination (i.e., income, expenses and/or assets reported on the CIS), the Bal Dues should be held until the return is secured and the CIS can be verified, but levies cannot be issued to collect the Bal Dues if all other income/asset checks appear to confirm hardship.

Use the hardship closing code that most closely corresponds to the taxpayer’s total living expenses allowed. See Form 433A, Collection Information Statement for Wage Earners and Self-Employed Individuals; Section 4, Monthly Income and Expense Analysis; Line 45, Total Living Expenses. If the closing code chosen does not correspond to the taxpayer’s allowed expenses, document the reason for the deviation in the summarizing statement for the CNC decision. Generally, do not select a code below the taxpayer’s total living expenses allowed. Do not use a higher code simply to prevent re-issuance of the account.
Example:

Monthly living expenses allowed x 12 (months) = Annual living expense amount. Select the hardship closing code with the closest dollar amount above the annual living expense amount.

If the closest closing code amount is only $300.00 more than the annual living expense amount, the next higher closing code would be selected. The history would be documented that an increase in Total Positive Income (TPI) of only $300.00 above total living expenses allowed annually would not enable the taxpayer to make monthly payments.

The systemic process for reactivating hardship CNC accounts relies on an increase in TPI above a predetermined amount based on the hardship closing code when the case is closed as CNC:

The TPI is reviewed annually when a taxpayer files an income tax return.

For BMF accounts on sole proprietorships, partnerships and LLCs (where the owner is identified as the liable taxpayer), TPI is determined by the annual income of the individual, general partner or member of the LLC.

The Social Security Number (SSN) of the individual, general partner or member of an LLC (where the owner is identified as the liable taxpayer) must be cross-referenced on IDRS.

Evaluate BMF entities to determine if a TC 130 should be input on the SSN of an individual, general partner or member of an LLC ( where the owner is identified as the liable taxpayer). Forward Part 3 of Form 53 to CCP for input.

Taxpayers must be advised that interest and penalties will continue to accrue on the account even though the collection action is suspended. In addition, before reporting an account CNC, other collection options such as Offer in Compromise should be discussed with the taxpayer.

Case Closing Letter 4223, Case Closed – Currently Not Collectible, will be issued to the taxpayer and/or Power of Attorney (POA) when a case is closed as CNC – hardship. The case closing letter will only be used when the collection investigation on the taxpayer entity is concluded. Letter 4223 is available on the publishing web site located at http://publish.no.irs.gov/.

Exhibit 5.16.1-2 
Report of Currently Not Collectible Taxes — Part 1 (Reverse)

Cannot Pay IRS Taxes – Qualify for Hardship – IRS Tax Experts – Fresh Start Tax LLC- Highest Rated is a post from: Fresh Start Tax Blog

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We are one of the oldest, most trusted and experienced professional tax firms.

We are comprised of Board Certified Tax Attorney, IRS Tax Lawyer, CPAs and Former IRS Agents, Managers and Instructors

Areas of Tax Practice:

• Immediate  IRS Tax Representation
• Offers in Compromise/ IRS Tax Debt Settlement
• Immediate Release of Bank Garnishments or Wage Levies
• IRS Bill/Notice of “Intent to Levy” or Final Notices
• IRS Tax Audits Small and Large Dollar
• Hardships Cases / Unable to Pay
• Payment Plans, Installment Agreements
• Innocent Spouse Relief
• Abatement of Penalties and Interest
• State Sales Tax Cases
• Payroll/ Trust Fund Penalty Cases

Our Company Resume: ( Since 1982 )

• Our staff has over 205 years of professional IRS tax representation experience collectively
  
• On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
  
• Former IRS Managers, Instructors and Trainers
• Highest Rating by the Better Business Bureau “A”
  
• Fast, affordable, and economical
• Licensed to practice in all 50 States
• Certified by the Internal Revenue Service
  
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• Nationally Recognized Published Tax Expert
• As heard on 90.3 FM Monthly Radio Show-Business Weekly

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With over 100 years of experience, the tax professionals at Fresh Start Tax can help and guide you through the process of the State of Florida, Department of Revenue audit, warrant or other sales tax issues. We have a team of Board Certified Tax Attorneys, CPAs, Enrolled agents and former IRS employees who were supervisors and audit managers with the Department of Revenue. We can help you get the results you need on the over 33 different tax issues the State of Florida imposes.

We want to give you some very basic information to help you with some of the most commonly asked questions by taxpayers and owners of businesses regarding the audit process.

Why you want to hire Fresh Start Tax:

* Over 100 years of tax experience
* Former tax audit manager with the State of Florida Department of Revenue
* Never have to speak with a State Agent
* The best possible settlement because of their experience

Why Taxpayers in the state of Florida are audited

Taxpayers are audited to:

* Enforce Florida tax laws uniformly
* Deter tax evasion and fraud
* Promote voluntary compliance for the taxpayer
* Educate the taxpayer of their responsibilities

While the State accepts most tax returns as filed, the State audits some returns to verify accuracy and evaluate compliance. Audits do not always result in the taxpayer owing additional tax, penalty or interest. The auditor may adjust a credit carryover or correct distribution without assessing additional tax. The auditor may even determine that a refund is due.
How taxpayers are selected for an audit

The methods for selecting a business or individual to audit vary from tax to tax. Here are some examples of sources used to identify a potential audit candidate:

* Internal Revenue Service provides information to the State
* Information sharing programs with other states and state agencies
* Computer-based random selection
* Analysis of Florida tax return information
* Business publications, periodicals, journals, and directories

What types of records I will need to provide

The State will notify you of it’s intent to audit and will also tell you what records you will need to provide. The types of records may include, but are not limited to:

* General ledgers and journals
* Cash receipt and disbursement journals
* Purchase and sales journals
* Sales tax exemption or resale certificates
* Florida tax returns
* Federal tax returns
* Depreciation schedules
* Property records
* Other documentation to verify amounts entered on tax returns

You must keep your records for three years since an audit can extend back that far. The Department (DOR) may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment.
What my rights are doing an audit

The Florida Bill of Rights provides protection for taxpayers? privacy and property during their interactions with Revenue employees. Your rights include:

* The right to fair treatment
* The right to get available information and prompt, accurate responses to your questions
* The right to have the Department begin and complete its audit in a timely manner after we notify you of our intent to audit
* The right to get simple, nontechnical statements which explain the reason for audit selection and the procedures, remedies, and rights available during audit, appeals, and collection proceedings.

Communicating and Meeting Deadlines

Throughout the audit process, communication is vital. After you are sent a Notice of Intent to Audit Books and Records, the auditor will work with you to set a date to begin the audit. The auditor will give you deadlines for providing information or documentation. If you need additional time to prepare, or need to request a delay for other reasons, contact the auditor. The auditor will make every effort to accommodate your requests. If you fail to respond or provide the requested information, an assessment may be issued and warrant filed based on the best available information.

What Happens When the Audit is Complete

After your audit is complete, you can review the audit findings and proposed changes to your tax liability. The auditor will give you a copy of the work papers and explain your rights, including deadlines for filing protests. If you agree with the audit findings, you are expected to pay the amount due in full. You have the right to protest the proposed changes if you disagree with them. “How to Pay” has more details.
Self-Audit/Self-Analysis

The Department uses self-audit or self-analysis projects to educate taxpayers on issues related to a particular compliance problem or industry. Selected taxpayers information is sent about a specific tax or issue, user-friendly instructions, and simple worksheets. They are asked to review the materials, complete the worksheets, calculate any additional tax due, and return the paperwork with payment. The auditor has limited contact with the taxpayer and does not visit the taxpayer?s location. The Department usually accepts the taxpayer?s responses. However, participation in a self-audit/self-analysis does not exempt the taxpayer from further audit review of the same time period.

Should you ever run into the problem of a tax audit from any State, call the professional team at Fresh Start Tax.

www.freshstarttax.com

1-866-700-1040

skype password FRESHSTARTTAX

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Are you are having problems and for various reasons have not filed Sales Tax returns? You should call Fresh Start Tax today. We have experienced tax professional that can help you through this situation.
The Florida Department of Revenue (DOR) has been recently cracking down on those businesses in the State of Florida that for whatever reason failed to file sales tax returns. The State has been aggressively filing tax warrants and freezing back accounts until the business comes up with a workable plan to satisfy the State of Florida.
Now is the very best time to resolve these issues because there is a general amnesty period going on in the State of Florida right now.
Fresh Start Tax is located in Ft.Lauderdale Florida and represents all individuals and business in the State of Florida. Fresh Start Tax and its officers have been serving taxpayers in the State of Florida for over 28 years.

Representation Issues offered by Fresh Start Tax include all 36 taxes imposed by the State of Florida

State of Florida sales tax representation includes the following matters with the Florida Department of Revenue:

* Tax audits on any and all sales tax issues and matters
* Non-filing matters
* Criminal investigations
* Department of Revenue enforcement action or warrant proceedings
* Stipulated time payments
* Requests for settlements or Compromise

Fresh Start Tax is compromised of Board Certified Tax Attorney’s, CPA”S, enrolled agents, former IRS Agents, Former Department of Revenue Tax Audit Manager. The firm has extensive experience for all tax issues and are one of the most regarded firms in the area of tax controversy. With one simple call, let one of our professionals contact the State of Florida and begin to resolve your case today. You will never have to speak to the State of Florida or any government agents. We do it all

Let today be the very last day of your tax problem. Get a Fresh Start by calling 1-866-700-1040. See our home page www.freshstarttax.com

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Call 1.866.700.1040

The Streamline payment agreement from the Internal Revenue Service is a payment agreement option that is the very best opportunity for some taxpayers to get an accepted payment agreement without a lot of hassle.

A Streamlined Installment Agreement is when $25,000 is owed to the IRS, including all penalties and interest. The reason they are termed “streamlined agreements” is because it does not require verification of financial assets, expenses and income, and other documentation like Form 433-A or 433-F (Collection Information Statement). This repayment payment plan period is usually over 5 years, or 60 months. Again, to calculate your minimum payment plan, take the total taxes you owe plus penalties and interest, and divide that by 50 months. This will give you your monthly minimum payment. The calculation uses 50 months to make way for interest to be paid off in the last 10 months. Interest incurred is the reason why you want to pay off your balance in the shortest amount of months. The faster you pay it off, the less interest is charged.
The Internal Revenue Service has some General Requirements

The requirements for a Streamline Payment Agreement are as follows:

1. A $52 application fee. This fee is normally taken from your first monthly payment, so you need to make sure your first payment covers the application fee. If you pay by check or money order, then the application fee is $105. It costs $45 to reinstate or modify an existing installment agreement.
2. All tax returns must be filed before an installment agreement will be accepted.
3. You must owe less than $25,000, including assessed penalties and interest.
4. You must be willing to make monthly payments over a period of no more than 5 years or 60 months.
5. You must not have entered into any previous Installment Agreements over the last 5 years (including your spouse if filing jointly). The IRS will do a thorough check on this issue.

Let our team of Board Certified Tax Attorneys, CPAs, enrolled agents and former IRS instructors get your nightmare resolved right now. These Streamline Installment Agreements are flat fee billed and are some of the most economical in the industry.

Contact Information 1-866-700-1040
www.freshstarttax.com
Skype us at; freshstarttax

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Has the State of Florida, Department of Revenue seized or frozen your business or your bank account? This problem will never go away until you deal with it straight up. The Department of Revenue (DOR) will keep this case in their open inventory until they put enough pressure on you to make you scream. They must find a closing procedure to close this case in their inventory. Here is where the Fresh Start Tax Team can significantly change the outcome of your case. Our team of tax experts include former Department of Revenue Tax Audit Managers who were also former IRS Group Managers in the Tax Audit Division. Together, we have over 100 years of both Sales and Use Tax and IRS experience.

Florida’s Delinquent Taxpayers General Information

The Florida Department of Revenue received authority from the 2010 Legislature to publish a list of the names of people who have not paid their taxes. These taxpayers have failed to pay or arrange to pay their debt, despite repeated attempts by the Department to collect the amount due. Now is the time to save and get your penalties waived!

Taxpayers on this list can take advantage of Florida’s Tax Amnesty Program. Under amnesty, you will pay no penalties and receive a 25% reduction in the amount of interest owed. But don?t delay, tax amnesty ends September 30.

The names were selected according to the following criteria:

* Taxpayers who have unsatisfied tax warrants or liens totaling $100,000 or more, and
* In counties where no taxpayer has warrants or liens totaling $100,000, the two taxpayers with the highest amount of warrants or liens are included.

Taxpayers who are in bankruptcy, who have entered into and are current on a stipulated payment agreement, or who have in place a payment agreement with the Department, are excluded.

The warrant or lien is a public record filed with the Clerk of Court or other government office in the county where the taxpayer is located. The list is published according to Chapter 2010-138, Laws of Florida.

How to close your Department of Revenue Sales Tax and Use Tax Cases

* Pay the amount in full.

* Enter a stipulated payment agreement.
* Provide information to prove the amount on the warrant is not due.
* Hire a tax professional

Fresh Start Tax is a true professional Tax Resolution Company. Please contact us by email, telephone or Skype. We are simply the very best in the business.

1.866.700.1040
www.freshstarttax.com
skype password : freshstarttax

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Yes the Internal Revenue Service can seize your  Home,  Cars , Business and Bank Accounts This is always the last choice of last resort and is not usually not  done unless there is a fairly serious problem that has gone unresolved for quite some time. If you owe on a continual basis your odds go up that a seizure may be coming forth. For the most part, the IRS can take any asset it chose too.IRS enforcement actions have increased in the last several years. The IRS has hired more Revenue Officers so expect enforcement action to set up even more in the upcoming season.See the Fresh Start Tax news release on this matter and subject.Go on our site into the press release tab.

Before the IRS conducts a seizure, they will normally perform an investigation to determine the equity in the item to be seized. In almost all cases, the IRS will not seize the asset unless there is sufficient equity in property that would warrant the seizure and be in the best interest of the federal government.

IRS must have sent you a final notice, with appeal rights that warrant a hearing officer for a seizure to take place.

Over the past years, Congress has made it much more difficult for the Internal Revenue Service to seize personal residences. Except in very special cases, it is unlikely that the IRS Collection Division will consider seizing your home. Rental properties or vacation homes, RV or boats are a different story and if there is sufficient equity can be seized without great difficulty.All these cases can usually be resolved with a solid representative working along with you the taxpayer. Most all of these situations can be avoided.

Businesses may be seized as well, but again, it is the exception, not the rule. The IRS must get a writ from a Federal judge. The IRS also must investigate to determine if there are any lien holders,mortgages or UCC’s against property in the business. Then, if the IRS has to go to sale, it must conduct an auction of every item in the business. I have personally seized over 300 businesses or homes as a former Revenue Officer. It is not something I wanted to do but in most cases the taxpayer gave you no choice. In today?s economic environment, it is very rare to see a home or business seized. The IRS may try to force the business owner to shut down by continually levying receivables or seizing bank accounts or making legal threats but a seizure today is pretty unlikely. The Service looks for other solutions first. the key is to stay current so you at least are making a solid effort. If you cannot be current, you should ask yourself, is it time to close the doors.

Cutting to the chase.  When you receive certified mail of a Notice of Intent to Levy, you had better react fast by contacting IRS or hiring a LICENSED tax professional like the staff at Fresh Start Tax to represent you or your company and your best interest. Do not wait to the IRS to act first, be pro-active. If you owe delinquent taxes, the IRS is going after your bank accounts, your wages and your assets.  They are the worlds most powerful collection agency located in your backyard. . By contacting Fresh Start Tax today we can work out a deal or settlement to fits your needs and your budget needs. If you wait, IRS wins. Make a call to us today so you never have to speak with the IRS ever again. We are former IRS agents that know our way around the block. As a side note, IRS can seize your whole pension plan and IRA as well.

We can set you up with a settlement, business installment agreements, Offer in Compromise, installment agreements, abatement of penalties and interest, or place you in a hardship if you qualify for the programs. We simply are the best.

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1.

Before the Federal Government files a federal tax lien on an estate tax case, the IRS gives careful thought to the advantages and limitations of each type of estate tax lien.
2.

In many cases, the general lien is the best tool to protect the federal government’s interest. The Federal Estate Tax Lien is automatically created when any resident of the United States dies. No recorded notice is required for it to become effective. It attaches to all of the assets that are part of the decedent’s gross estate and are required to be reported on Form 706, United States Estate Tax Return, and is security for any estate taxes that may be determined to be due. If a probate asset is transferred or liquidated without payment of the tax, but for the exceptions detailed at IRM of the Internal Revenue Manual, the federal estate tax lien continues to attach to the asset. If a non-probate asset is transferred or liquidated without payment of the tax, a liability equal to the value of the asset at the time of the decedent’s death becomes due from the transferee. A separate assessment against the transferee is not needed. Assets of the gross estate can be sold or encumbered free of lien if the proceeds from the sale or loan are used for the payment of charges against the estate or expenses of its administration that are allowed by any court having jurisdiction.
3.

A limitation of the general federal estate tax lien is that it has an absolute life of 10 years. It cannot be extended. Estate tax attributable to an estate’s interest in a closely held business may be paid over a 14-year period if an extension of time to pay under IRC is in effect which could potentially leave the Service without lien protection for four years if a notice of lien is not recorded before the 10 years have elapsed.
4.

The filing of Form 668-J will secure the deferred taxes for the duration of the extension. The collection statute of limitations is suspended during the period of the extension.
1.

The federal estate tax lien attaches only the property specified on the recorded lien. A lien on property with equivalent value can be substituted for the actual property upon agreement between the Internal Revenue Service and all parties with an interest in the property.
2.

When estate property is listed on the recorded IRS Form 668-J, it is automatically released from the effects of the general estate tax lien.
3. Find the closest Estate and gift Unit of the Internal Revenue Service and they should be able to help you with these issues.

Requesting a Release, Discharge of Property From, or Subordination of Unrecorded Federal Estate Tax Lien

1.

Releasing the Estate Tax Lien Occasionally, the IRS office receives requests for release of the unrecorded estate tax lien. However, just as there is no provision for recording a notice of the unrecorded estate tax lien, there is no provision for recording a release. Individuals are instructed to provide documentation to potential purchasers of the decedent’s property that either there was no Form 706 filing requirement, or, if Form 706 was filed and a closing letter has been provided to the estate by Estate & Gift Tax and a copy of the return, the Estate Tax Closing Letter 627 , and verification of payment, are evidence that the federal estate tax lien has been satisfied.
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Discharge of the Estate Tax Lien
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Those individuals looking for discharge under are usually submitted on Form 4422, Application for Certificate Discharging Property Subject to Estate Tax Lien. These applications will be processed by Estate and Gift division of IRS. If Form 706 has not been filed or if a closing letter has not been issued. If Form 706 has been filed and a closing letter has been issued, applications for discharge will be processed by Advisory Unit of IRS , United States Certificate Discharging Property Subject to Estate Tax Lien, is used to discharge the property.
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Applications for discharge will be processed by Advisory Unit in the local office. If Form 706 has not been filed or if a closing letter has not been issued, Advisory will consult with Estate and Gift division in order to determine the government’s lien interest.
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Subordination of the Estate Tax Lien Individuals looking for a subordination will be processed by the Local Advisory Unit. If Form 706 has not been filed or if a closing letter has not been issued, Advisory Unit will consult with the Estate and Gift Division in order to determine the government’s lien interest.

The Federal Gift Tax Lien

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The provisions of the federal gift tax lien are also delineated in IRC and parallel those for the general estate tax lien. ( Same as above )
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The special gift tax lien imposed attaches to all gifts made during the calendar year for the amount of the gift tax imposed upon the gifts made during such year. If the gift tax is not paid by the donor when due, the donee of any gift becomes personally liable for the tax to the extent of the value of the gift. The gift tax lien extends for a period of ten years from the time the gifts were made or until or the tax is paid, whichever date is sooner.

Should you have any questions about any of these issues, call the Fresh Start Tax professionals at 1.866.700.1040

Federal Estate Tax Lien is a post from: Fresh Start Tax Blog

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