Offer in Compromise Accepted

The owner of a Tool & Die company hired Omni Financial after losing it’s largest customer due to Federal Tax liens. With a business liability of almost $350,000, and a personal liability of $165,000, we analyzed financial statements and advised the client to close the business and submit an Offer in Compromise personally. The personal OIC was submitted for $275 in August 2011. The initial Offer was rejected and an appeal was submitted. During this time, our client was in a car accident and his car was a total loss. Our client recieved a $10,000 insurance disbursement for the accident. Although the IRS appeals officer wanted to increase the OIC to $10,275, we were able to successfully negotiate that only $4,000 of the total disbursement be treated as a dissipated asset. After six months of negotiations with the Appeals Officer, we were able to finalize the acceptance of the Offer In Compromise for $4,275, saving our client over half a million dollars.

OMNI Financial is the leader in IRS and state back tax help services. Our tax attorneys are dedicated to finding permanent tax debt relief for you. At Omni Financial, we are proud of our track record and even more proud of the tax debt solutions we have brought to our clients. OMNI is an established, long-standing member of the Better Business Bureau, the National Association of Tax Professionals, and the National Association of Enrolled Agents. Call us today for a free tax debt consultation 1 800-540-0433.

http://www.omni-financial.com

Another Happy Client

Shannon & Sarah,

“I wanted to take a quick moment to thank you and Omni Financial for your assistance thus far with my tax problems. It is always scary when you engage a new company for anything, especially in a “pay us (X) and we’ll get started” scenario.

I could not be more pleased with the service I have received thus far. Other than being successful in getting the levy on my bank account released — you have both been very courteous and thorough when you call or e-mail me. The moment that I made payment to your company was the moment that you started working on my case. I sent you all the items you requested, and you immediately sought a temporary resolution to my case.

My initial conversation with Omni’s consultant was also very comforting; I felt like he was trying to describe all possible scenarios and not just acquire a client. After my initial 20 minute call with him, I was ready to move forward with Omni. I’m glad that progressed into my case being assigned to you. I look forward to hearing from yousoon about the next steps.”

Thanks again!

OMNI Financial is the leader in IRS and state back tax help services. Our tax attorneys are dedicated to finding permanent tax debt relief for you. At Omni Financial, we are proud of our track record and even more proud of the tax debt solutions we have brought to our clients. OMNI is an established, long-standing member of the Better Business Bureau, the National Association of Tax Professionals, and the National Association of Enrolled Agents. Call us today for a free tax debt consultation 1 800-540-0433.

http://www.omni-financial.com

IRS e-file Launches Today – Most Taxpayers Can File Immediately

WASHINGTON — The Internal Revenue Service opened the 2012 electronic tax return filing season today with a reminder to taxpayers that e-file remains the best way to get fast refunds and ensure accurate tax returns.

IRS e-file has surpassed the milestone of 1 billion returns processed. The electronic transmission system revolutionized the way the IRS processes tax returns and made speedy refunds possible. More than 112 million income tax returns were e-filed last year, or 77 percent of all individual returns filed.

“E-file is the best option for taxpayers. E-file enables taxpayers to file more accurate returns and receive their refunds quickly and safely,” said IRS Commissioner Doug Shulman.

In general, for people concerned about security, e-file has proven itself year in and year out as a safe and secure method of filing a tax return. E-file has a proven track record. Software vendors and paid tax return preparers use the latest encryption technology. Plus, within 48 hours, an electronic acknowledgement is issued that the return has been received by the IRS and either accepted or rejected.

With most people receiving a refund, the fastest way to get a refund is by e-filing and using direct deposit. Taxpayers can get their money automatically in as few as 10 days. Last year, more than 79 million refunds were electronically deposited into taxpayers’ accounts, saving them a trip to the bank.

For people who owe taxes, e-file offers payment alternatives such as filing now and scheduling payment on the April tax deadline. Taxpayers who still want to pay by check can do so by e-filing and then mailing a payment voucher.

Taxpayers can e-file their tax returns one of three ways: through a tax return preparer, through self-preparation software or through IRS Free File. The IRS does not charge for e-file. Many tax return preparers and software products also offer free e-filing with their services. Free File offers free tax preparation and free electronic filing.

Starting this filing season, any paid preparer who prepares and files more than 10 returns for clients generally must file the returns electronically. Taxpayers are encouraged to use tax return preparers who offer IRS e-file.

Taxpayers should also only use paid preparers who sign the returns they prepare and enter their Preparer Tax Identification Numbers (PTINs). Preparers are required to sign the returns they prepare and include their PTINs. Although paid preparers sign returns, taxpayers are legally responsible for the accuracy of every item on their return. Preparers are also required to give taxpayers a copy of their returns.

When using e-file, you also use an e-signature and an electronic filing PIN. If you prepare your own return using software you must use the self-select PIN method on the return. When using a paid preparer, you can still use the self-select PIN method or the practitioner PIN method. The Electronic Filing PIN is a temporary PIN used by the IRS to verify your identity when you e-file.

IRS Free File, which has been making taxes a little less taxing for a decade, also begins today, Jan. 17. Everyone can use Free File, either the brand-name software offered by IRS’ commercial partners or the online fillable forms. Individuals or families with 2011 adjusted gross incomes of $57,000 or less can use Free File software. Free File Fillable Forms, the electronic version of IRS paper forms, has no income restrictions.

What to Do if You Owe Back Taxes

The biggest thing to remember if you owe back taxes to the IRS is that tax problems will not resolve themselves. The longer back taxes linger the more aggressive IRS and state collection tactics become. If you ignore your back taxes long enough, the IRS will issue a lien, wage garnishment or levy to collect their money. Therefore, the best thing to do if you owe money to the IRS is to get professional tax help ASAP. Call Omni Financial at 800-540-0433 for a free back tax consultation to find out how we can resolve your tax liability.

The easiest way to negotiate back taxes is to simply pay your tax debt. However, if you have not paid taxes for several years the penalty and interest from missed payments might make your debt insurmountable.

If you are unable to pay your back tax debt in full, Omni has options available to help resolve your back tax debt. Don’t panic, you are not alone. The tax resolution professionals at Omni Financial may be able to negotiate an affordable long-term payment plan to suite any cash flow situation, or even a settlement.

An Offer in Compromise is a settlement offered by the taxpayer to facilitate a minimal payment on the back taxes. The Offer in Compromise is a useful tool in settling a back tax debt, however the program requires professional tax help to secure success – only about 25% of all Offers in Compromise submitted in 2008 were accepted. Through this agreement, you only pay a portion of your back tax debt, while the IRS agrees to forgive the rest of your tax debt. The IRS only accepts an Offer in Compromise if they believe it would be impossible for you to pay back the debt or if the debt was unfairly assessed in the first place. IRS and state tax settlements are difficult, but they are possible. Get the negotiation help for your back taxes from the tax professionals at Omni Financial: call 800-540-0433 for a free consultation today.

Finally, if your financial situation is so bad that even an Offer in Compromise is not an option, you may qualify for currently non-collectible status. The IRS does not actively pursue collection from individuals once they are placed in uncollectable status. Once in uncollectible status, the IRS will evaluate your financial situation every year or so, to decide whether or not to collect for your back taxes. Call Omni today to speak with one of our tax consultants to find out which tax strategy will best service your tax liability: 800-540-0433.

OMNI Financial is the leader in IRS and state back tax help services. Our tax attorneys are dedicated to finding permanent tax debt relief for you. At Omni Financial, we are proud of our track record and even more proud of the tax debt solutions we have brought to our clients. OMNI is an established, long-standing member of the Better Business Bureau, the National Association of Tax Professionals, and the National Association of Enrolled Agents. Call us today for a free tax debt consultation 1 800-540-0433.

http://www.omni-financial.com

Growing IRS workload causing problems

WASHINGTON (AP) — The Internal Revenue Service can’t keep up with surging tax cheating and isn’t sufficiently collecting revenue or helping confused taxpayers because Congress isn’t giving it enough money to do its job, a government watchdog said Wednesday.
To cope with its growing and increasingly complex tasks, the agency is relying more on computer software designed to weed out fraud, Nina E. Olson, the national taxpayer advocate, said in her annual report to lawmakers.
But errors are abundant, creating even more work for the agency when taxpayers dispute its findings, the report said. In addition, it said the agency is increasingly relying on computer systems to evaluate tax returns that sometimes end up eroding taxpayers’ rights, and people are having a harder time getting through to the IRS by telephone or letter, she said.
“The overriding challenge facing the IRS is that its workload has grown significantly in recent years while its funding is being cut,” said Olson, an independent watchdog within the IRS. “This is causing the IRS to resort to shortcuts that undermine fundamental taxpayer rights and harm taxpayers — and at the same time reduces the IRS’ ability to deliver on its core mission of raising revenue.”
IRS spokeswoman Michelle Eldridge said linking tight agency budgets to supposed infringements of taxpayers’ rights “is inaccurate and without basis in fact.” She said the IRS has been using congressionally approved compliance programs to curb fraud and which are constantly audited to make sure people’s rights are protected.
“While fewer dollars in a tight budget environment impacts elements of taxpayer service, it does nothing to erode our protection of taxpayers,” she said.
By pointing her finger at the IRS budget, Olson was highlighting a politically sensitive issue. Especially in times of huge federal deficits and tight budgets, many lawmakers have shown little interest in being generous to the widely unpopular agency, which processes 141 million individual tax returns annually, including almost 120 million requests for refunds.
Congress cut the IRS budget to $11.8 billion this year. That is $300 million less than last year and $1.5 billion below the request by President Barack Obama, who argued that boosting the agency’s spending would fatten tax collections and provide better service to taxpayers.
Those arguments did little to win over lawmakers.
“Like families across the country, the IRS will have to do more with less,” Rep. Jo Ann Emerson, R-Mo., who heads the House Appropriations subcommittee that controls the agency’s budget, said last fall.
Olson’s report came just days after the IRS estimated that people and companies underpaid their taxes by a huge $385 billion last year after audits and other enforcement efforts, compared with around $2.3 trillion that the agency collected.
Olson noted that these tax collections are what make government programs possible and that the underpayment comes as lawmakers hunt for ways to pare federal deficits exceeding $1 trillion yearly.
“Yet obtaining a little extra money to bring in a lot of extra money remains an intractable challenge for the IRS, and that is unfortunate,” the report said.
Underscoring the IRS’ volume of work, the report said the agency contacted taxpayers 15 million times in 2010 to change their claimed tax liability. Only 1 in 10 of those contacts was considered an audit, which gives taxpayers additional rights such as the ability to go to tax court.
To cope with its growing burden, the agency is relying more frequently on computers and having less personal contact with taxpayers. As a result, the IRS is increasingly using “practices and procedures that harm taxpayers by acting on assumptions of noncompliance arrived at by automated processes that do not solicit, encourage or allow taxpayer response.”
The report said the number of returns seeking refunds that the agency computer program set aside for screening for possible fraud grew by 72 percent, to 1.1 million, from 2010 to 2011.
The report said the number of bogus refund claims is growing as people submit multiple false returns via electronic filing. The growth of refundable tax credits for purchases of first homes, college costs and other expenses is also contributing to the rising number of bogus claims. Refundable credits can produce cash payments to people who owe no taxes, making them enticing targets for fraud.
Olson’s report said the IRS handled more than 226,000 cases claiming identity fraud in 2011, a 20 percent increase over 2010. Thieves often request refunds by using the Social Security number of a person they falsely claim as a relative, frequently early in the filing season before the actual taxpayer files his or her return.
Though the overall rate of fraud remains relatively low, Olson said in an interview, “you want to make sure you’re not abusing the taxpayers by letting dollars go out the door.” Otherwise, she said, “taxpayers are going to get disgusted” and lose faith in the tax system.
In one measure of errors the agency is making, Olson’s bureau received 21,000 complaints from taxpayers last year after the IRS blocked requested refunds because it suspected fraud. Three in four of them eventually qualified for the money. Those refunds averaged $5,600 and it typically took six months for taxpayers to receive them.
In addition, the IRS corrected 10.6 million discrepancies in taxpayers’ returns in 2010 that it considered mathematical errors, more than double the 4 million corrected discrepancies in 2005, the report said. But the IRS itself made some errors. On 300,000 returns on which it disallowed exemptions for dependent children, it later had to restore the exemption just over half the time.
The report said that at the end of last year, it took the agency more than six weeks to answer nearly half of taxpayers’ letters and faxes dealing with adjustments to their returns. The agency does not accept emails from taxpayers, Olson said. The report also said that between 2004 and last year, the portion of phone calls from taxpayers the IRS answered fell from 87 percent to 70 percent.
“Few government agencies or businesses would be satisfied if their customer service departments were unable to answer three out of every 10 calls,” the report said.
Further complicating the IRS’ task are constant changes to the 3.8 million-word tax code. Over the previous decade, 4,428 changes have been made to it, including an estimated 579 changes in 2010.

More Innocent Spouses Qualify for Relief Under New IRS Guidelines

The Internal Revenue Service today released new proposed guidelines designed to provide relief to more innocent spouses requesting equitable relief from income tax liability.

A Notice proposing a new revenue procedure, posted today on IRS.gov, revises the threshold requirements for requesting equitable relief and revises the factors used by the IRS in evaluating these requests. The factors have been revised to ensure that requests for innocent spouse relief are granted under section 6015(f) when the facts and circumstances warrant and that, when appropriate, requests are granted in the initial stage of the administrative process. The new guidelines are available immediately and will remain available until the finalized revenue procedure is published. The IRS will immediately begin using these new guidelines when evaluating equitable relief requests.

“The IRS is significantly changing the way we determine innocent spouse relief,” said IRS Commissioner Doug Shulman. “These improvements should dramatically enhance our process to make it fairer for victimized taxpayers facing difficult situations.”

This is the second major change made to the innocent spouse program. In July, the IRS extended help to more innocent spouses by eliminating the two-year time limit that previously applied to requests seeking equitable relief.

What can I do if the IRS has garnished my paycheck?

The IRS can collect money you owe them by issuing a garnishment on your paycheck. A garnishment is basically a levy that requires your employer to collect a large portion of your paycheck and pay it straight to the IRS until your tax debt is paid off. Garnishments usually collect between 30 and 70 percent of each paycheck.

Your best chance of avoiding garnishment is to respond immediately when the IRS contacts you. Before they can garnish any wages, the IRS can send a Final Notice 45 days before taking action. Also, it is important to know that the IRS can garnish your wages months or years after sending you the Final Notice. The best thing you can do when you get a Final Notice is act immediately.

If the IRS does issue a garnishment on your paycheck, you can find out if you qualify for tax relief through an Offer in Compromise, Installment Agreement or Currently Not Collectible status. Act as quickly as possible, because even you get a garnishment released, the IRS will not give back money that they have already collected.

OMNI Financial is the leader in IRS and state back tax help services. Our tax attorneys are dedicated to finding permanent tax debt relief for you. At Omni Financial, we are proud of our track record and even more proud of the tax debt solutions we have brought to our clients. OMNI is an established, long-standing member of the Better Business Bureau, the National Association of Tax Professionals, and the National Association of Enrolled Agents. Call us today for a free tax debt consultation 1 800-540-0433.

http://www.omni-financial.com

Payroll Tax Cut Temporarily Extended into 2012

Dec. 23, 2011

WASHINGTON — Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.

Employers and payroll companies will handle the withholding changes, so workers should not need to take any additional action.

Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount). This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).

This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year. With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision.

The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision. For most employers, the quarterly employment tax return for the quarter ending March 31, 2012, is due April 30, 2012

Surprising Tax Bill: Fan who caught Jeter’s 3000th hit may be facing tax liability

When doing the right thing can cost you thousands in taxes

Christian Lopez, the Yankee’s fan who caught Derek Jeter’s 3,000th hit, could be facing a five-figure tax bill thanks to the reward the New York Yankees gave him for returning the ball to Jeter.

The 23-year-old Lopez received tickets to the game as a birthday gift from his girlfriend. The Yankees fan said he suspected something big was going to happen at the game but didn’t realize he’d become part of history. After catching the record-breaking ball, Lopez announced that he intended to return the ball to Jeter, sending the crowd wild with cheers.

To show their gratitude, the Yankees presented Lopez with luxury suite tickets for every remaining home game and any postseason games the Yankees may play, along with three bats, three balls and two jerseys, all signed by Jeter.
When the IRS caught wind of the compensation the Yankee fan received, they estimated that Lopez would be responsible for $5,000 to $13,000 in prize taxes.

Lopez says he does not intend to return the season tickets and was quoted saying, “The IRS has a job to do, so I’m not going to hold it against them, but it would be cool if they helped me out a little on this.”

It’s up for debate whether the Yankees gave Lopez the items as an act of generosity or as an exchange for goods. What do you think about the situation? Is the IRS being unreasonable?

OMNI Financial is the leader in IRS and state back tax help services. Our tax attorneys are dedicated to finding permanent tax debt relief for you. At Omni Financial, we are proud of our track record and even more proud of the tax debt solutions we have brought to our clients. OMNI is an established, long-standing member of the Better Business Bureau, the National Association of Tax Professionals, and the National Association of Enrolled Agents. Call us today for a free tax debt consultation 1 800-540-0433.

http://www.omni-financial.com

Volunteer Income Tax Assistance Program

The Volunteer Income Tax Assistance Program from the IRS

Every year, more than 12,000 volunteer staffed tax assistance locations are sponsored by the IRS and opened by community and non-profit groups. These volunteer staffers are able to provide basic tax preparation services for the members and beneficiaries of their non-profit organizations. 

Volunteer Income Tax Assistance Program for the Elderly

Elderly taxpayers are assisted by the AARP and its Tax-Aide volunteer program. It is geared toward lower and middle income taxpayers, especially those who are 60 years of age and older. Tax-Aide provides each beneficiary with a volunteer tax preparer, whose work is then checked by a second volunteer before the final return is e-filed for maximum efficiency. It is available at 6,000 locations nationwide and is a part of the Tax Counseling for the Elderly program.

Volunteer Income Tax Assistance Program for Military Personnel

Active military personnel benefit from IRS assistance through the Armed Forces Tax Council, which includes volunteers who assist members of the armed forces with their special tax needs. Each branch of the armed forces is represented and assisted by the council, and its volunteers are specially trained to deal with military related tax relief.

Volunteer Income Tax Assistance Program Resources

More information about the volunteer programs is available at the irs.gov website. The IRS recommends that eligible taxpayers locate and take advantage of this authorized volunteer service, so that they can be assured of obtaining all pertinent IRS tax relief.

OMNI Financial is the leader in IRS and state back tax help services. Our tax attorneys are dedicated to finding permanent tax debt relief for you. At Omni Financial, we are proud of our track record and even more proud of the tax debt solutions we have brought to our clients. OMNI is an established, long-standing member of the Better Business Bureau, the National Association of Tax Professionals, and the National Association of Enrolled Agents. Call us today for a free tax debt consultation 1 800-540-0433.

www.omni-financial.com