How Long Can IRS Collect Tax Debts?

Source:  http://freedomtaxaccounting.com/how-long-can-irs-collect-tax-debts/



So, for how long can IRS collect tax debts? A short and simple answer is 10 years! IRS is subjected to a 10 year statute of limitations on its tax collections, limiting the time span available to recover all the debts. The statute of limitations means that IRS is legally allowed to collect all the unpaid tax debts only up to 10 years of time period from the day they were imposed. With the exception of few circumstances, once the 10 year time span is over, the IRS has to stop the tax collection. There are thousands of tax payers in the United States who know how long can IRS collect tax debts. So they breathe a sigh of relief when their statute of limitations for paying the IRS gets expired. But there's no sympathy for you before the expiration! Because IRS acts forcefully to recover as much tax debts as possible before the validity period of your 'CSED - Collection Statute Expiration Date' ends.

How does IRS track the Collection Statute Expiration Dates?

IRS encounters multiple Collection Statute Expiration Dates in a single year for numerous debt assessments done by them. It is not possible for IRS to track each and every expiration date manually, therefore they use an automated system that keeps a complete track record for every assessment done on your file. The system not only tracks the assessments but also handles the records of each account's expiration date. 

Now that you have come to know about how long can IRS collect tax debts, let's have a look at the starting time of the limitation statute.

Beginning of the statute of limitations

For how long can IRS collect tax debts? 10 years! But what is the starting time of this period? The 10 year span of the statute of limitations starts from the day your debt is evaluated by IRS, not the day IRS accepted your tax return. The limitation period begins with an application form being signed by an IRS official at any of the IRS service centers. Let's say, if you don't pay the full taxation amount while filing for your refunds, IRS will issue a written document to you, stating the money you owe, basically a bill. The ten year time span of your statute of limitations begins from the date mentioned in that written notice. Now that you know how long can IRS collect tax debts, let's look at some other details.

Mostly IRS has a time period of 3 years to conduct your audit starting from the day you filed your returns. But if you excluded more than 25% of your earnings, the audit time span will increase to 6 years. However, if you did not file for tax refunds, IRS can form an alternate return for you making a deficit assessment which will initiate the ten year time frame. Bottom line is, if you are planning to not file the tax returns and hide yourself for ten years, shove that thought right away!

Why does IRS have only 10 years of time span?

As you know for how long can IRS collect tax debts, let's look at the factor that why only 10 years? IRS is allowed to collect tax debts from taxpayers only for the time period of 10 years by the federal law. Doing this will become a hurdle in the productivity of a government agency, then why would it limit its collection? This is because it is much easier to collect tax on the current debts than older ones.  The implementation of statute of limitations compels IRS to utilize its resources on the debts it is almost certain to collect. Once the Collection Statute Expiration Date passes, the IRS has no authority to confiscate your properties and bank accounts or demand for the tax money.

The law of limitations is often mistaken with the one that administers commercial creditors like tax collection agencies. As soon as the limitation statute expires, the creditor is not allowed to sue the debtor but it can go on with other collection methods. Even if IRS chose not to seize your property, the lien imposed on your real estate will be a big hurdle in the sale or transfer of the estate. It is the duty of IRS to release all inflicted property liens as soon as the 10 year statute of limitations period gets over. If IRS still does not lift up the lien from your properties and other assets within 30 days, you must contact the IRS and appeal to get information about your property's lien status. Apart from the request, a better option will be to ask for a lien release certificate from IRS. The certificate will be a proof that the lien inflicted by IRS on your asset is now invalidated.

Want to know more on how long can IRS collect tax debts?  Go to www.freedomtaxaccounting.com or call 407-344-1012.   

Why Do We Pay Taxes in USA

Services You Receive By Paying Taxes

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According to the new list issued by the Government of the United States, many new facilitation programs have been included in different categories of tax spending. United States is a big country and an attractive destination for immigrants as well. As a social responsibility, we also provide homage and refuge to immigrants from the third world countries. Therefore, the government has introduced numerous programs not only to overcome the housing shortage but also to keep running the country in its best forms. The programs also include rehabilitation, education, medicare, and employment programs not only for the nationals but also for the immigrants.

Primarily, the US tax spending system is divided into the following categories.

Military Services

Each year, millions of American people apply for admission in the US military. The US military is not only serving to defend the nation but it has also taken the social responsibility of eradicating terrorism from the world. This is why, our military not only work in collaboration with established economies but our soldiers also fight in tough areas and unsecure countries.

As an estimate, almost 43% of the tax budget is used for fulfilling the military services. these include border protection, fuel and ammunition expenses, salaries and benefits to veterans, war expenses, and other military expenses.

Answering why do we pay taxes, it is quite understandable that a huge portion of your paid taxes is used for protecting the citizens of America.

Healthcare Services

America is one of the first countries to introduce healthcare services for her citizens. Apart from healthcare services, the government also spends money on research institutions working days and nights to find cure of fatal diseases. Almost 22.5% of your federal income tax is used for fulfilling the healthcare services. Currently, Medicare and Medicaid are two primary programs entitled under mandatory spending for providing health services to Americans.

The healthcare programs also include food safety programs and the salaries of FDA. You may be wondering that why do we pay taxes for healthcare when some portion is already deducted from your salaries. Here is the explanation. The amount deducted from your salary is solely used for your personal and your family's medical services whereas the amount consumed from the taxes is used for national healthcare services in order to provide equal healthcare services to all American citizens. These also include the homeless people and less privileged people. Again, you are doing a social service by paying taxes and abiding by the law.

National Debt

The American government takes out debt at times to serve the needs of American citizens. Fulfilling the responsibility of paying back debt, the government takes out almost 10% of mandatory spending for returning the national debt and reducing the interest.

Social and Income Securities

You might be already aware of the concept of social or income securities. In simpler terms, income and social securities refer to national financial assistance plans for the American citizens. These include retirement plans, housing plans, old age nutrition and nursing plans, securities to the family after death of the head, and many such programs.

For example, if you already have stored your savings in IRA accounts and you want to invest after retirement but the savings are insufficient then you can take help from any of the business assistance programs designed by the US government. It is like a loan which you pay off after earning from your business. Almost 17% of the budget is used for social and income securities.

Tax relief, childcare programs, and tax returns are also included in social and income securities. For further understanding that why do we pay taxes, we will have a look at the following categories and sub-categories as well.

Law Enforcement

The crime rate is increasing in many American states. The phenomenon has made people move from unsecure states to securer ones, creating an imbalance in housing, education, and employment. The Government of United States is striving hard to establish peace inside and outside the nation. This is why, the government spends almost 10% of its budget on law enforcement including on police, law establishment, law committees, purchasing ammunition and fuel, courts, salaries of judges, and other law enforcement services, and exactly why we pay taxes.

Education

Apart from free education and awareness programs all over the US, the government of United States has also defined sub-categories in the education category for budget spending. These include science, space and technology, free workshops and education programs, international scholarship programs for students from third world countries, research and studies about energy, environment and natural resources, and establishment of research institutions all over the country. In space and technology sub-category, around 50% of the budget of this category is assigned to NASA. Now you would have a better idea about why do we pay taxes.

Construction

This category includes programs for constructing highways, roads, amusement parks, theme parks, houses, and important national buildings. Construction budget also includes budget for restoring and maintaining the heritage and tourist sites. After housing bubble, the government has increased construction budget individually for different states.

Apart from these, there are many sub-categories and main categories included in the budget. The President of America is responsible for announcing the major categories and new programs in the budget after every fiscal year.

It is completely understandable to ask about the money you earn that where does it go. Now if someone ask you why do we pay taxes, you can safely tell them that we pay taxes to keep ourselves, our families, our properties, our earnings, and our country safe, more powerful, and prospering.



Original source: http://freedomtaxaccounting.com/why-do-we-pay-taxes/ 





 

What Is A Real Estate Withholding Certificate

California's real estate withholding certificate is quite similar to Foreign Investment in Real Property Tax Act (FIRPTA) withholding. The difference is in the nature of the 'disposition' which includes not only sale but also transference, exchange, liquidation, etc. Another difference is the value of withholding. FIRPTA requires a withholding of 15% from foreigners on the total amount of the disposition.

Just as in California's Real Estate Withholding Certificate, FIRPTA gives the buyer the withholding power. In case the buyer does not know that the seller is a foreign person and does not withhold taxes on the sale, the liability falls on him mostly. 



For information on how to get at Tax Withholding Certificate visit www.freedomtaxaccounting.com or call 407-344-1012.

Tax Value

The tax value of Real Estate Withholding is 3 1/3% of the total sale. Another way to find out the withholding tax amount is to calculate the 9.8% of the profit from the sale. The amount of taxation that you will be resulting with will be very high for sure. Generally many sales are exempted from this certification and those that are subjected to it, can be got around. In case you find some discrepancy in the calculated taxes, you can write to the authorities regarding this. They may issue a re-check but the whole process will be time consuming.

Additional Information

The answer to the question what a real estate withholding certificate is, is also evident in the additional information given in its forms. It has a detailed guideline for computing the basis first and then finding out if the selling price at current had any loss or gain. The third section has the same requirements to be filled in as in Form 593-C. The entire form is more in the shape of an instruction manual. It has proper explanation about what each section requires to be answered and how to go about it. This helps you while  filling the form so that you know what is required of you. The form also includes the contact information of relevant authorities. 



source: http://freedomtaxaccounting.com/what-is-a-real-estate-withholding-certificate/

¿Cómo Solicitar Un Número ITIN?

Fuente: ​http://www.itinnumberonline.com/sp/como-solicitar-un-numero-itin-3/



Qué es un ITIN y cómo aplicar para un número ITIN? Antes de que realmente solicite un número de identificación de los contribuyentes o ITIN, hay ciertos documentos que necesita. Usted necesita estos documentos para probar su identidad como inmigrante y solicitar un ITIN. Completar el formulario W-7 es la primera y más importante tarea que tiene que hacer con el fin de solicitar un número de identificación de los contribuyentes individuales. Completando el Formulario W-7 es un requisito obligatorio para obtener un ITIN. Si usted es un extranjero y no es elegible para un número de seguridad social, entonces debe llenar el formulario W-7 y obtener un ITIN para que pueda cumplir con sus obligaciones tributarias.

Hay dos maneras de obtener el formulario W-7:

• Conseguirlo en una de las oficinas regionales del IRS

• Puedes descargarlo desde el sitio web del IRS

Una vez que tenga el formulario W-7 con usted, usted necesita llenarlo con la siguiente información:

• Identificación de Estado

• Prueba de ser un votante registrado en su país

• Documentos de identificación con foto de Ciudadanía y Servicios de Inmigración

• Un documento nacional de identidad válido que tenga su nombre, fecha de nacimiento, dirección, fotografía y su fecha de caducidad en él

• Pasaporte o cualquier otro documento de identificación válido

• Todos los documentos que había que someter para obtener su Visa

• Los registros escolares y certificados médicos tienen que ser presentados

• La copia de la declaración de impuestos de EE.UU.

• Acta de nacimiento de las personas dependientes que son incapaces de presentar su pasaporte

Ahora sabemos lo que es un ITIN y el proceso / documentos involucrados en la aplicación de la misma. Ahora vamos a echar un vistazo al mejor momento para solicitar un ITIN.



www.itinnumberonline.com

How to Get FIRPTA Real Estate Withholding Back

Origianl Source:  http://freedomtaxaccounting.com/how-to-get-firpta-withholding-back/



Before looking for ways to get your FIRPTA withholding back as a foreign seller in the US, it is important to understand why it is taken. Every resident as well as non-resident alien is subject to taxation as per the US laws. If a non-resident alien is involved in trade and business, such as selling a property in this case, he is required to file tax returns the following year to report his income and how much he has earned. Similarly, a resident alien engaged in business or trade inside the US is also required to do the same.

This act of withholding 15% of the sale price, subject to the non-resident aliens, is done by the IRS to compel those businesses to file proper returns the following year in order to get that money back. It is not the actual tax amount due on them; it is the money that is held back from them as an assurance that their taxes will be paid on time.

As a general rule, the withholding amount is compared with the tax that is due from the respective seller. If that amount is greater than the tax due on him, he is refunded the extra. On the contrary, if the amount is lesser than the due tax, he is given a notice to pay the outstanding to the IRS. The basic idea is to keep the tax liability of the foreign sellers in check so that any discrepancies can be adjusted in the following tax year.

Some other ways you can get back all or part of your withholding from the IRS are discussed in detail below.

We can also help you get a withholding certificate so you do not have to pay the FIRPTA 10% tax, or if you already paid the FIRPTA tax, and don't wish to wait to file your tax return to get your money back,  please call us at 407-344-1012, or email us at info@freedomtaxfl.com for more information. 

Get a Withholding Certificate from the IRS

Withholding certificate is the most structured way to get back the money held back from you as part of the transaction. The certificate is issued by the IRS only after you file an application with all the details required by the IRS. The application is supposed to be filed on the day of the transaction or a day before the final transaction is made. Additionally, the buyer must also be notified of the fact that you are applying for a withholding certificate. This is inevitable because application requirements include buyer information as well.

In order to apply the correct way and make sure that your application is accepted and worked upon, the following attachments must be there;

• Legal name and contact numbers of the buyer


• Legal name and contact numbers of the seller


• Taxpayer Identification Number (TIN) of the buyer


• Taxpayer Identification number (TIN) of the seller

Generally, it takes a period of about 3 months for the IRS to process and work on the application after which it issues the Withholding Certificate. The ownership of that certificate by the seller then implies that the buyer entity will have to release the due amount and give it back to the seller.

This application is only for the purpose of getting the withheld amount back. It in no way frees you of the responsibility to file tax returns the following year, which is an absolute requirement no matter what other applications you might be filing.

The issuance of the withholding certificate can be due to any of the reasons given below, aptly justified by the seller:

• The IRS is convinced that releasing the withheld amount is appropriate because either the amount is exceeding the maximum tax applicable on the seller or the tax collection process would not be negatively affected from the reduced amount of withholding.


• The seller is justifiably exempted from the tax under the US tax laws.

Can I Work With an ITIN Number

Original source:  http://www.itinnumberonline.com/can-i-work-with-an-itin-number/



Moving on and emphasizing more on the term 'work' here, we can come up with two types of concepts. A foreigner trying to work in the United States either wants to work as an employee or work as a business owner there. The case can be any, but a foreign investor has to obtain a visa. However, those who are asking can I work with an ITIN number must keep in mind that if want to work as an employee they have to obtain an SSN number while if they want to pursue their career as a business owner in the United States, they should acquire an EIN number. 



ITIN is not a smart choice and better one over SSN numbers and EIN numbers. Well, there are some reasons to it. Let's have a look at them below.

• First of all, an ITIN cannot replace the SSN and EIN number. These two numbers are standard numbers which all individuals require to either form a business or work in a firm in US.


• Secondly, ITIN was merely created for tax purposes and not any other which is why it is not authorized for work.


• Lastly, an ITIN is for dependents and not for foreign investors. Though it is granted to them temporarily. If dependents also wish to start a business or getting employed in US, they need to obtain an E2 visa instead of H4 visa. This is basically the requirement to change their immigration status which is a lengthy process.  

How to Get A Tax Id

We will discuss how to get an EIN Tax ID Number.

For more info visit www.itinnumberonline.com

EIN

Employer ID number or federal tax ID number is also referred to as business tax ID number. Just as the name suggests, this is the ID number which is issued to business entities for identification for their particular tax obligations. An important thing to note before you quiz over how to get a tax ID number for employer identification is that you do not really need one if you are operating a sole proprietorship company (unless, of course, you are filing excise tax returns or pension) or a limited liability company that does not have employees as your SSN number will be equally valid in this case.

There are four separate ways in which you can apply for an EIN. Amongst the four procedures, two of those will permit your business to get employer tax identification number immediately. To begin the application process, download the SS-4 form from the here: https://www.irs.gov/pub/irs-pdf/fss4.pdf.

1.Applying Online

Applying online on the IRS website is a preferable method which is accessible to all the businesses that are recognized legally in USA. It would hardly take twenty minutes and the approval, too, is immediate and you get you EIN number after completion. You can save and print the confirmation notice. So if you are wondering how to get a tax ID number, this is the easiest of methods. However, you must complete the application form in one sitting as you cannot save and work on it later. The current session expires if you remain inactive for more than 15 minutes and you will have to start all over again if this happens.

2.Through Telephone

Businesses can also get the EIN number through a telephonic call. The person, who is making the call, must have the authorization to receive the federal tax ID number.  At this point, you will need to answer all the questions asked by the representative related to the SS-4 form. The toll free number on which you can make the call is 800-829-4933.  The calls can be made in between 7:00 AM till 10:00 PM of the local time. You will receive the EIN number at the end of the telephonic conversation with the IRS representative.

3.By Mail

If there is no urgency in acquiring tax ID number and you are wondering how to get a tax ID number for your business, then you can apply for it through mail. You will get a response within four weeks. You must ascertain that the SS-4 form has all the necessary information. The EIN number will be mailed to you. The mailing address is mentioned in this link https://www.irs.gov/uac/Where-to-File-Your-Taxes--(for-Form-SS-4).

 

 

4.By Fax

If you want to know how to get a tax ID number, then you will be glad to know that you may also file for the EIN number via fax machine. The taxpayers have to complete the SS-4 form and fax it to the relevant fax numbers.  The numbers are mentioned here https://www.irs.gov/uac/Where-to-File-Your-Taxes--(for-Form-SS-4). If you have provided your fax number, then you will obtain the federal tax ID number in the duration of four business days through fax.

You can obtain more information on how to get a tax ID number for employer identification on the official IRS website. 



Source:  http://www.itinnumberonline.com/how-to-get-a-tax-id-number/

Como Obtener un Tax Id

Articulo original: ​http://www.itinnumberonline.com/sp/como-obtener-un-itin/

 

Como usted tiene una idea clara acerca de la naturaleza de un ITIN, sus beneficios, las personas que tienen derecho a la misma y su necesidad, pues ahora usted debe saber acerca de cómo obtener un ITIN. Lea los siguientes pasos importantes para saber más acerca de cómo obtenerlo:

Primer paso:

Cualquier persona que quiera obtener un número ITIN, en primer lugar debe encontrar la versión más reciente del formulario W-7, con los cambios realizados en la legislación fiscal estadounidense por el IRS – Servicio de Impuestos Internos. Una vez encuentre la versión más reciente de la forma, la siguiente cosa que usted tiene que hacer es llenar el formulario.

Segundo paso:

El siguiente paso que usted necesita saber acerca de cómo obtener un ITIN es llenar la solicitud. Usted necesita la asistencia de un abogado para este propósito porque el llenado de la aplicación es un proceso muy importante y dificil. Se pueden encontrar muchos términos complejos en la aplicación, por lo que es mejor para llenarlo con la guía de un abogado cualificado y competente.

Tercer paso:

Una vez que complete la aplicación W-7 con la ayuda de un abogado, el tercer paso para obtener un ITIN es la unión de una prueba de su declaración de impuestos de ingresos, que cumpla con las condiciones para la exención.

Cuarto paso:

Después de conocer acerca de cómo adjuntar la prueba de declaración de impuestos, la próxima cosa que necesita saber acerca de cómo obtener un ITIN es la unión de su documento original, que muestra el estado en el extranjero, y su identificación de la prueba propuesta por el organismo emisor.

Quinto paso:

Una vez que llene el formulario W-7 y adjunte todos los documentos originales requeridos, la última cosa que tienes que hacer es enviar la solicitud al departamento de ITIN en la oficina del IRS. Envíe su solicitud a través de correo electrónico u otras formas alternativas indicadas por ello.



Para mas informacion entre a www.numeroitin.com

Cómo Abrir Una LLC Sin Un Número ITIN

Articulo original: ​http://www.itinnumberonline.com/sp/como-abrir-una-llc-sin-un-numero-itin/



Pasos A Seguir En La Apertura De Una LLC Sin Un Número De ITIN

La adquisición de un EIN consume mucho tiempo. Los extranjeros interesados ​​en obtener un EIN necesitan conocer el proceso de solicitud para la obtención de la misma. Puede encontrar más información sobre cómo obtener un EIN sin un número de ITIN aquí (INSERT LINK PARA EL BLOG COMO OBTENER UN NÚMERO EIN sin un número ITIN).

1. Tener un Contador de Negocio digno de confianza

Todos los extranjeros que desean establecer una LLC en EE.UU. deben tener un contador de confianza. El contador debe ser capaz de representar a la empresa como una tercera persona designada por las partes.

2. Preparación de la Aplicación

El contador también tendrá que ayudar a preparar la solicitud del EIN. Todos los documentos necesarios necesitan ser ensamblados para la aplicación del EIN.

3. Ponerse en contacto con el Servicio de Impuestos Internos

Después de que toda la documentación está completa, y el contador la haya preparado para el proceso de solicitud, se le requerirá acercarse al IRS en el centro de los inversores extranjeros y que luego envie por fax un formulario firmado al IRS.

4. La obtención del EIN

Cuando su solicitud es aceptada, su contador de negocio tendrá que recoger el número de identificación del empleado si se menciona el nombre de la tercera parte designada por parte del formulario de solicitud.

Al ir conociendo el procedimiento de cómo abrir una LLC sin un número de ITIN, se han dado cuenta que el papel de un contador es crucial. Es a causa de los servicios de un buen contador, que personas son capaces de obtener un EIN sin un ITIN y SSN.

Si necesita ayuda en abrir una LLC sin un numero ITIN, se puede comunicar con nosotros al 407-344-1012, o escribirnos a info@freedomtaxfl.com . 



www.itinnumberonline.com