Contact our firm or the IRS to find out if your business is eligible. Interested employers can apply for the program by filing Form 8952, Application for Voluntary Classification Settlement Program, at least 60 days before they want to begin treating the workers as employees.
Employers accepted into the program will pay an amount effectively equaling just over one percent of the wages paid to the reclassified workers for the past year.
No interest or penalties will be due, and the employers will not be audited on payroll taxes related to these workers for prior years. Participating employers will, for the first three years under the program, be subject to a special six-year statute of limitations, rather than the usual three years that generally applies to payroll taxes.

It might be in your best interest to research this program to make sure you fully understand the benefits and potential pittfalls before contacting the IRS on your own.

The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
“This year’s increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices,” said IRS

Love the mention about the advice from attorney from Maryland about the 10-tax rules, nice re-write of our Tax Relief Do’s and Don’ts , let’s compare blog posting dates, hmmm, but at least he is promoting the truth.

Another reminder about the BBB, make sure the company has been in business for more than one year and with the BBB for at least a year. They bad guys appear to have 12 month business plan, open doors, get BBB rating, promote A rating, get clients, rip them off, get bad BBB rating, shut doors, repeat.

The simple rule is if it sounds too good to be true, it is

http://redtape.msnbc.com/2010/04/april-15-can-be-a-day-of-fear-loathing-or-even-downright-panic-and-that-can-work-to-great-advantage-for-companies-anxiou.html#posts

Taxpayer ID: They use your email address or business name here-00000103460456US
Tax Type: INCOME TAX
Issue: Unreported/Underreported Income (Fraud Application)
Please review your tax statement on Internal Revenue Service (IRS) website (click on the link below

The IRS has more information on other scams on their website.

http://www.irs.gov/newsroom/article/0,,id=170894,00.html

IRS has directed IRS employees to consider a taxpayer’s current income and potential for future income when negotiating an offer in compromise. Normally, the standard practice is to judge an offer amount on a taxpayer’s earnings in prior years. This new step provides greater flexibility for the unemployed when filing an OIC. There is one potential catch, the IRS may also require that a taxpayer entering into such an offer in compromise agree to pay more if the taxpayer’s financial situation improves significantly. What, when, and how the improvement will be evaluated will be important to learn before moving ahead with an OIC.

If she had hired a firm to represent her when she first got the audit letter the story would not have been as compelling to read, but the same outcome could have occurred without the drama.

It is something to consider when hiring a firm to prepare tax returns. Will they or can they help if you ever get audited (random audit, or triggered by claims made by ex-spouse, disgruntled ex-employee)?

I recall in a meeting a few years back, where a CPA (medium sized firm) bragged that none of the clients in all their years had been audited. Two things struck me as he talked: First, I hoped that he would be wise enough to never consider representing one of his clients in audit, given his obvious fear of the IRS and lack of experience. Second, was his firm preparing returns with such fear and for their own goals, that their clients were being short changed in the tax preparation?

http://finance.yahoo.com/taxes/article/108550/nurse-outduels-irs-over-mba-tuition?mod=taxes-advice_strategy

http://articles.moneycentral.msn.com/Investing/top-stocks/blog.aspx?post=1563557&_blg=1,1563557

The IRS in an effort to streamline the OIC process or as some claim to cloud the process further made some small changes to the OIC process.  The doubt to liability option will not be included be on the new form nor we dual OIC’s be accepted.  Nothing earth shattering about the changes, the $150 filing fee and OIC offer amount options still exist.  The offer mill firms, firms who crank out bogus and doomed for rejection OIC’s and charge clients in advance for them may have a few more hurdles to overcome convincing the naïve client to sign with them. 

What about the claims about “pennies on the dollar” I see on TV?
Consider this, these firms overspend in advertising to attract new clients so they must sell to more and more clients and cut corners in order to make a profit, the corners they cut will impact the success of your case. We frequently get calls from former clients or people that have just met with one of these “We spend big $ on TV and everyone qualifies” for an Offer-In-Compromise firms, we find that many of the Offers were either mishandled to begin with or should have never been filed in the first place because of the clients income and assets. As you might suspect an Offer-In-Compromise isn’t just a matter of asking the IRS, it must be proven and supported and the IRS or State isn’t rubber-stamping the approvals.

Can an Offer-In-Compromise be guaranteed?
No, it is illegal and completely unethical for any firm to do so. The IRS has published warnings about these types of firms. Avoid them at all costs! The guarantee is usually a murky (A client showed us a copy on one contract that had 57 different places the client had to initial and sign) contact by the firm that guarantees they will file an Offer-In-Compromise provide you do X by certain dates and pay their fees in advance. They do not guarantee the result, just their fees.

Can you tell me if I qualify for an Offer-In-Compromise?
Yes, be certain we will give you our best evaluation of your situation. We find that about three out every 10 people who call should consider moving forward with an Offer-In-Compromise, the other taxpayers should consider other solutions. Your qualification is determined by a number of factors that requires complete evaluation of your individual/business assets, income, and monthly expenditures. A few moments on phone will enable us to determine if further evaluation of your case is warranted. Avoid falling prey to be told and sold “what you want to hear.”

How much will the Offer be for?
Each case is unique and based upon your individual income and assets. Some clients can offer a very small percentage of their debt and others a much higher percentage. The claims that all debts are settled for 8-cents is pure advertising nonsense, each client is unique. Avoid “boiler room, take your money and run” firms that will tell you in one call how much your OIC will be for without a complete written evaluation of your financial information.

What and how long is the process?
Upon the determination that an Offer-In-Compromise negotiation is in your best interest, you determine the speed in which the process moves. Once we have all the required paper work we can complete the Offer-In-Compromise very quickly and get it you for your signature. Once it is filed the IRS cannot put a Levy on you. The IRS will respond to the filed OIC and may ask for additional substantiation of expenses or income/assets. The average time for an accepted Offer-In-Compromise is eight months.

What if the IRS rejects the Offer-In-Compromise?
We will appeal at no additional fee, provided that you have supplied all the required information and were accurate about your income, expenses, and assets. It is not uncommon for the IRS to reject an OIC and to accept it upon appeal. The “boiler room, take your money and run” firms do not include appeals in their fees so they can either dismiss you as a client or charge you again for the same work.

It is understandable to be afraid when after receiving Levy notice. But don’t let fear be the driving force in deciding how to help solve the problem. The collection agents of IRS and State love it when the taxpayer who has just received the Levy notice calls, they can hear the fear in their voice and they know the taxpayer will tell them more than they should and agree to terms that are to their detriment. The tax collection agent doesn’t care about your financial problems or the reason why you have them! It is their job to collect from you and get onto the next taxpayer.

At the same time, “fast talking sales people from boiler room firms” will tell the caller what they want to hear as long as the agreement is signed and check has clears the bank and often the tax problem isn’t resolved.

Levies can be released quickly provided the taxpayer is in compliance with tax returns. What information is needed to get the Levy Released is dependent on the amount and type of tax liability. Most taxpayers tax liabilities can placed in an affordable Installment Agreement or in Non-Collectable status as a precursor to filing an Offer-In-Compromise. It is important that the taxpayer understand why a tax solution is being negotiated on their behalf and what is the up and downside of the solution.

A common trick by the “boiler room firms” is to file an Offer-In-Compromise or place a taxpayer in an Installment Agreement knowing the taxpayer will be either default or be rejected because the coming year tax liability. These firms do this in order to charge their client’s more for the same service down the road.

When you call us we will provide you a plan on how we will get the Levy Released and put into motion a plan to resolve your tax liability that is in your best interest that is based upon your unique financial circumstances.