Everyone makes mistakes. It’s just a part of life. When it comes to owing the IRS money, there is a very fine line between unintentional oversight and overt tax evasion. If you’ve made a mistake on a tax return, you may wonder how long you will need to worry about the issue. In general terms, the IRS has three years to audit you if they’ve found a mistake on your return. However, if Uncle Sam suspects that you’ve hidden more than 25% of your income (intentionally or not); they have 6 years to audit your return.
Most reasonable people would agree that 6 years is a long time to wait it out. What’s worse, the IRS may not start running the clock until after they identify the “last act of evasion.” Believe me, this is a gamble you do not want to wage. It’s time to stop worrying and do something about your tax issue. Under the cover of attorney-client privilege, you can ask the questions that you’ve needed to ask, and get the answers you seek. Hire an experienced Gulf Coast tax attorney and get this problem behind you.
Timing is everything! Act now before it’s too late! Read this Forbes article to learn more about what you might be up against if you’ve made a mistake on a tax return: http://www.forbes.com/sites/robertwood/2013/10/13/how-far-back-can-irs-claim-tax-evasion-or-fraud-timing-is-everything/
You can see it every day. It’s on the radio, TV, social media, and even talked about openly at events with friends and family. No one is immune to the current state of our economy. When it comes to stressful financial times, folks often have no choice but to get creative. You know, withdrawing from one account to cover other expenses… However, when it comes to owing Uncle Sam payroll tax, it is illegal, unethical and personally dangerous if you rob Peter to pay Paul. In fact, it can land you in jail.
With other forms of IRS tax debt, it can take the IRS years to figure it out and begin the audit or collections process. However, with regard to payroll tax debt, Uncle Sam is extremely proactive. Did you know that the IRS has the authority and the legal means to padlock your business doors, intercept payments from your clients, and hold you (and your officers) financially responsible for payroll tax debt? This means that Uncle Sam can seize your personal assets including bank accounts, homes, cars, and even commissions from your clients to satisfy payroll tax debt.
I cannot overstate the seriousness of Payroll Tax problems. And here’s why… The IRS views payroll tax as a “trust fund tax” because as an employer, you are entrusted with funds that actually belong to your employees and/or the government. If you spend withheld payroll tax funds on anything other than payroll tax, it is illegal. When you don’t pay the payroll tax, it’s considered theft. I’m sure you realize that bad things happen to people who steal from the IRS.
If you’ve found yourself saddled with an IRS payroll tax dispute, it’s important to act quickly. Jay Willis and The Willis Firm can help you negotiate with the IRS, the right way, so that you can obtain the best solution possible. Contact us today! 877-254-5254.
Remember: When it comes to payroll tax, NEVER rob Peter to pay Paul! For more information regarding this issue, visit: http://www.irsallstar.com/our-services#11
Although there isn’t really a medical term for it, I often say that my clients have “Beaten Puppy Syndrome” because they are the underdog in a vicious battle with Uncle Sam. In this regard, I find great satisfaction in advocating for those on the Gulf Coast that are under-represented with the IRS. We all have our strengths, and I enjoy sharing my IRS knowledge with people who need my help.
The first thing I want all clients to know is that they are not alone. I’ve been at this tax resolution business for a very long time. Good people often find themselves in a troubling tax battle with the IRS. Over the years, I’ve helped countless individuals throughout the Gulf Coast transform from “IRS Under Dog” to “IRS Power Dog” by assisting them to grasp the true scope of their problem, understand their options, and turn their situation around. I believe that everyone deserves to be free from IRS tax problems. Being set free is a great feeling for my clients. As their attorney, setting my clients free is a great feeling for me.
Dealing with the IRS is intimidating. I’ve invested my career in learning the complexities of the IRS tax code. Believe it or not, there is a method to the madness. With my experience, we’ll identify the best possible solution for your tax problems. If you owe more than $15,000 to the IRS (no matter how you got there), it’s time to schedule a consultation and begin the process. You’ll be glad you did!
It’s time to free your inner puppy! Call our office 877-254-4254 or visit us online:
Remember how fun it was, as a child, to eat alphabet soup? The soup was delicious and there was something magical about spooning through all the letters to find words that we’d understand with our limited vocabulary. A lot has changed since those bygone days of our youth. Somewhere between bills, career, commuting, and raising a family, things have become much more complicated. For example, when the IRS dishes up ABC soup it’s more in the form of painful notices chocked-full of confusing acronyms. If an IRS envelope works its way into your mailbox, don’t panic. Jay Willis and The Willis Firm are here to help you deal with your IRS problem the right way.
If you receive a notice from the IRS, it’s important to realize that you are not alone. Every year, the IRS sends out millions of notices. Most of the time they are sent to make taxpayers aware of common filing mistakes that result in tax bill changes. Other notices are sent to request additional information about particular returns. Each notice is intended to define a specific issue and to provide a course of action needed to resolve the matter. It’s important that you give the notice immediate attention and take care of the problem right away.
Making Sense Out of IRS ABC Soup
Each IRS notice is defined by its CP (collection process) number located in the upper right corner of the first page of the correspondence. Each also has a large, bold title near the center of page one.
To help clarify, here is a list of the most common tax notices and why are they are issued:
CP number - Reason for Contact:
CP 12 - Correction needed for a miscalculation on return.
CP 14 - More money owed on unpaid taxes.
CP 49 - Overpaid tax applied to other taxes owed.
CP-90C & CP-297C (sent simultaneously) - Final notice: notice of intent to levy and notice of your right to a hearing.
CP-91 & CP-298 (sent simultaneously) - Final notice before levy on Social Security benefits.
CP 161 - No math error, balance due.
CP 501 - Reminder notice that a balance is due.
CP 504 - Urgent notice regarding balance due, seizure of state income tax refund imminent.
CP 523 - Notice of default on installment agreement and imminent seizure of assets.
CP 2000 - Income and/or payment details on the return does not match IRS records.
For more information regarding the notices listed above, or if you’ve received a notice that isn’t listed above, you may check the special IRS.gov notices page for the document: http://www.irs.gov/Individuals/Understanding-Your-IRS-Notice-or-Letter.
You also have the option of calling the IRS directly at the number listed on your notice or at the agency’s toll-free help line at 800-829-1040. (Warning: it’s not uncommon to be placed on hold for extended periods of time when calling the IRS. We recommend checking their website first. If you aren’t able to get through, we can help.)
If this whole process is overwhelming, please call our office for a FREE consultation. We understand that this is a lot of information. Here at The Willis Firm, we’ve spent years studying the laws and representing taxpayers just like you. We will help you solve whatever IRS problems you are having.
As if small business owners didn’t already spend enough time dealing with the IRS and their complicated tax code, the agency has recently announced that they will be broadening their focus and targeting a growing number of small businesses.
As Bloomberg News reports:
The Internal Revenue Service is shifting its small-business audit focus from corporations to various types of partnerships as those entities have grown more prevalent and complex, according to an agency official.
Examining the returns from partnerships and other so-called pass-throughs will be the “top priority” of the IRS’s Small Business/Self-Employed Division over the next year and beyond, said Faris Fink, the head of the office. As part of that shift, more and better training of IRS agents is needed, Fink said at the American Institute of CPAs National Tax Conference last week in Washington, Bloomberg BNA reported.
“The Service has for a long time focused its energy on corporations,” he said. “Frankly, we’re a little bit behind the curve in getting around to developing a partnership strategy.”
Pass-throughs, which include S corporations and sole proprietorships, are businesses that don’t pay income taxes directly. Instead, their income is passed through to their owners who pay taxes on it on their individual returns. Pass-throughs comprise almost 95 percent of all U.S. business entities, according to IRS statistics.
In other words, if your business is structured as an S-corporation, a partnership, or a sole proprietorship… the IRS is coming for you.
This is certainly not news that most business owners will be excited to hear. However, there is good news. First of all, despite additional IRS attention, business owners who follow best practices when it comes to their accounting and tax reporting will have nothing to worry about. And secondly, should your business run into trouble with the IRS… we are here to help! We’ll handle the IRS so that you can focus on running your business and living your life.
If you’d like to learn more, or if you need immediate help with an IRS problem, please contact us today!
During the G-20 summit in Moscow a few months ago, governments from the world’s richest nations agreed that widely used tax avoidance loopholes by multinational corporations should cease. Such loopholes have allowed large multinationals to pay a pittance in corporate income taxes for years.
It will most likely be many years before any changes actually take place, but this is the first time so many nations agreed that new implementations are necessary. However, it is expected that large companies will bring out their best lobbyists to fight against such measures.
Even so, the government has a strong motivation to push such changes…with lack of funds being the big one. Furthermore, common citizens are more aware than ever that they are paying higher tax rates while large corporations are legally getting away scot-free. Apple, for example, being the most profitable technology company in America, avoids billions of dollars in taxes globally. Get more information in this detailed article in the New York Times: http://www.nytimes.com/2013/07/20/business/global/g-20-nations-back-plan-to-curb-corporate-tax-evasion.html?pagewanted=all&_r=0
The Internal Revenue Service Office of Professional Responsibility (OPR) has disbarred a CPA after he was convicted of misappropriating funds while serving as conservator of his daughter’s trust account. David O. Christensen’s CPA licenses in Washington and Oregon have been revoked.
Christensen requested permission to continue a limited practice in preparing tax returns. He argued that his theft conviction resulted from a family matter that had nothing to do with his ability to prepare tax returns. The Administrative Law Judge (ALJ) denied his request.
Karen L. Hawkins, Director of OPR said, “OPR strives to protect the integrity of the tax system from unscrupulous and incompetent practitioners regardless of how those traits become known. Agreeing with OPR’s proposed sanction, the ALJ held the seriousness of Christensen’s offense warranted disbarment from practicing before the IRS finding that the “Respondent has displayed a lack of integrity, including in his testimony at trial, in attempting to distinguish his professional actions from his ‘father-daughter’ relationship.”
When you get notice after notice from the IRS, it may be frightening and seem like they own you. Your situation may seem so complicated that you don’t know where to begin. It doesn’t have to be this way. We can help you make sense of your situation. You most likely have several options for dealing with the IRS and getting them off of your back for good.
Obviously, the first and easiest action to take is to pay off your IRS debt in full and as soon as possible. If you have the resources, this is your best option. This will immediately stop the IRS’s actions against you. Of course, this is easier said than done. For most people, paying the IRS in full is not possible. Even a payment plan can be extremely difficult and can stress your finances and your life. If you fall into this category, do not be alarmed. There are other options. These could include reducing the amount you owe, being declared uncollectible, or various other options.
If you are paying off your tax debt in full or if you can handle the payments the IRS sets up for you, you can potentially take care of that on your own. But if these options aren’t available to you, or you don’t feel comfortable trying to accomplish one of these options on your own, then it’s smart to have a tax professional on your side. We can put your mind at ease by finding the best option for your specific situation.
If you are having complex problems with the IRS, we can help. We can evaluate your situation, make sense of the confusion and recommend a plan of action for you to follow. Get started on the road to freedom today. Call 877-254-4254 or on the web at http://www.irsallstar.com/contact-us.
Every day, many people get notices from the IRS that their wages are about to be levied. A wage levy is when the IRS takes a portion of your paycheck to pay down the debt you owe for taxes. Other forms of levies, such as a levy against your bank account, are only enacted once. But a wage levy will affect your wages continuously until the tax debt is settled.
This usually creates a huge burden for the taxpayer because they are already struggling to pay their bills. The good news is that under certain circumstances, it is possible to get a wage levy released. This may be difficult to accomplish on your own. It usually requires specific supporting paperwork and dealing with the IRS. But if you do successfully have a wage levy release, your paychecks go back to normal.
Generally, an IRS wage levy can be released if it can be shown that the levy causes an economic hardship that makes it difficult for the taxpayer to provide the basic necessities of day-to-day living. The catch, however, is that the IRS defines “basic necessities” different from how the taxpayer defines them. Because of this, it’s important to have a good understanding of how the tax laws work. This is where we come in.
If you have a wage levy and are trying to get it released, do not do it alone. We have the experience necessary to help you. Contact our experienced tax law professionals today at 877-254-4254 and see our 100% guarantee: http://www.irsallstar.com/100-guarantee.
The holiday season is just around the corner and your mind is probably busy making plans. It’s doubtful that you are thinking about taxes or tax returns right now. However, just because you aren’t thinking about taxes or tax returns doesn’t mean that tax-related scam artists aren’t thinking about it! Unfortunately, these scammers work year round so it’s best to always be aware of their latest scams and tactics.
The most common tax scam these days is identity theft.
Identity thieves have ways of getting your personal information. They can retrieve personal data by illegally buying or stealing information from individuals, employers, hospitals, nursing homes and various other sources. Once they have your information, the scammers will file a false tax return in your name and claim a refund from the IRS. And the crime of tax identity theft is on the rise! When this happens, it’s a time consuming processes to clear the legitimate taxpayer’s name. They must endure months of proving that they are who they say they are and ridiculous amounts of time waiting for the backlogged IRS to respond. If you are a victim of tax identity theft, here is what you need to know and what you should do:
If you receive an email from the IRS…it’s not really from the IRS.
Phishing scammers may pose as the IRS and send fake emails, set up phony websites, or even call you. They are usually offering a fictitious refund, the threat of an audit, or an investigation to lure people into giving out their personal information. Phishers then use the information to steal identities, access bank accounts, or file fraudulent returns.
To protect yourself from phishers, consider the following:
1. The IRS NEVER sends email. If you receive an email from the IRS, it IS a scam.
2. Do NOT click on any links contained in such email messages.
3. Forward suspicious email messages to the IRS at firstname.lastname@example.org or submit these messages through the IRS website: http://www.irs.gov/uac/Report-Phishing.
4. Never email personal information. Email is not a secure form of communication.
Know who is preparing your tax returns if you outsource this task.
By and large most people who prepare taxes are qualified accountants or reputable tax specialists. But, as with any industry, there are some dishonest people. Sometimes they will skim a portion of your refund or charge unnecessary or unreasonably high tax preparation fees. Some fraudulent return preparers promise tax refunds that are too good to be true. Here is some advice for selecting a tax preparer:
1. Check the tax preparer’s qualifications and history. All paid tax return preparers must have a Preparer Tax Identification Number (PTIN). You can view the preparer’s history via the Better Business Bureau website.
2. Ask about service fees up front. Avoid preparers who base their fee on a percentage of your refund. You should also ensure that your refund is deposited directly into your bank account, not theirs.
3. Never sign a blank tax return.
4. Review the entire tax return before signing.
5. Report abusive tax preparers to the IRS on Form 14157, Complaint: Tax Return Preparer. You can get the form on the IRS website.
If you have been a victim of any of these scams it is important to act promptly. If you have additional questions about tax-related scams or need further advice, please call us now at 877-254-4254 or contact us online at http://www.irsallstar.com/contact-us.
As you know, the US government is currently in the midst of a partial “shutdown.” One of the many governmental agencies impacted by the shutdown is the IRS. In fact, according to CNN, over 90% of IRS employees are currently not working due to the shutdown.
So what does this mean for your tax responsibilities? A recent CNN reports addresses several common questions:
If you were thinking that the government shutdown meant you would get out of paying your taxes, think again.
While only 9% of Internal Revenue Service employees — roughly 8,750 out of nearly 95,000 workers — are currently working, the underlying tax law remains in effect.
Here are some other things you need to know about your taxes and the IRS during the shutdown:
Will I still have to meet the October 15 deadline?
Yes. Regular filing deadlines will remain in effect during the shutdown. So anyone who requested an extension on their taxes last spring should still file their returns by October 15.
The IRS is urging individuals and businesses to file their tax returns electronically because those returns are usually processed automatically. Paper returns will not be processed until full government operations resume. Yet, they still must be postmarked by October 15 to be considered filed on time.
That means I’ll get the tax refund I’ve been waiting for, right?
Wrong. While tax returns and payments are still expected to be filed during the shutdown, refunds won’t be issued until operations return to normal, the IRS said.
In other words- yes, you still owe the IRS money and are expected to pay, despite the shutdown. But if the IRS happens to owe you money… well, you’ll have to wait until the shutdown is resolved. This doesn’t come as a surprise to those of us who are familiar with the IRS, but it is another reminder of how one-sided the agency can be.
The bottom line, for tax purposes, is that nothing significantly changes during the shutdown. As much as we may wish that the shutdown was a “Get Out of Jail Free” card for taxpayers, that isn’t the case. If you’d like to learn more, or if you need help resolving an IRS dispute, please get in touch with us today!
If you owe taxes and haven’t paid, the IRS can place a lien on all personal property including real estate. But what if you have a mortgage on that property? The IRS does not get priority over other liens placed on that property at an earlier date. Therefore the mortgage, which is also considered a lien, is always the most superior lien on a property. This is because the bank granting the mortgage must use the property as collateral in case the homeowner defaults on the loan. An IRS lien never trumps the mortgage lender. This means the IRS can foreclose on a property, but they must pay the mortgage lender off first before collecting any remaining amount to cover tax debt.
Although a Forgiveness and Debt Relief Act exists to protect debtors who lose their homes to foreclosure, not all homeowners are protected. In certain cases the homeowner must pay the taxes. Learn more in this article: http://homeguides.sfgate.com/irs-liens-priority-over-mortgages-7035.html
If you are having issues with the IRS and it’s been going on for a while, you may be close to having your wages garnished. A wage garnishment is when the IRS takes money from your paycheck before you even see it. There is no limit on the amount the IRS can take out of your paycheck. There is only a limit on how much they have to leave you with. Anything over that amount will go straight from your employer to the IRS. As you can imagine this is a devastating outcome and one to be avoided when possible.
The good news is it usually IS possible to avoid wage garnishments. The IRS does provide a Wage Garnishment Release, which can stop the money from being taken out of your paycheck. This can be a viable option, but the requirements to qualify are strict.
The best way to handle tax problems is to start working with the IRS before they take a nasty action against you! Everyone’s situation is different and at The Willis Firm, we help you find the BEST option to clean up the problem. This video explains more about IRS Wage Garnishments. Take a look: http://www.youtube.com/watch?v=NyIWI8Bp1mg&feature=c4-overview&list=UUoUryOwvukxCP6VmqJ4KDAg
People feel desperate when they come into our office. Perhaps they’ve made attempts to resolve their issue with the IRS but they aren’t getting anywhere. They know they could lose their house, their car, they could lose everything. The IRS is powerful and they even fear going to jail. I believe in doing things the right way. I’m here to restore your peace of mind and when you’re being harassed by the IRS, I love helping the little guy succeed!
Once you begin working with us, we take the burden off your back and we carry it for you. We have a game plan, one that we’ve used time and again. But we don’t run off and leave you standing in the dust. We explain to you exactly what we are doing and we inform you of each step along the way in your case.
We develop relationships with our clients. We learn who they are, what they do for a living, and we truly help them reach a positive resolution with the IRS. We also form relationships with our business clients and offer them more than tax resolution. We do tax preparation, and we figure out new deductions you may qualify for. But that’s not all we do. We also help our clients through the healing process. You go through mental and emotional hardship getting tax issues fixed and there is a healing process that we help people through to get back into a good mental space.
We offer long-term management and hand-holding for businesses that have had tax problems in the past. We help you with your present problem, help you heal, and offer guidance for future planning. We help you now and in the future. With us on your team you can expect positive results and you will sleep better at night. Call us now at 877-254-4254 and learn more about our services: http://www.irsallstar.com/our-services
Whether you’ve dealt with the IRS or not you can probably imagine how tough dealing with them can be. If you say the wrong thing, for example, it can be used against you. When you call the IRS you may be on hold for long periods. When you call each time you will probably get a different person each time. It can be a headache.
This is another reason to work with a tax attorney. We develop professional relationships with the IRS caseworkers. We can get your case assigned to a single caseworker and then deal one-on-one with that caseworker. The ability to create this relationship allows us to speak with one agent about your case, and work to save your retirement while helping you maintain the lifestyle you want to live and STILL resolve your tax issues. When you work with an expert you can get the best resolution to your problem. Call us today to get started on the path to freedom and the comfort of letting an expert deal with the IRS on your behalf and represent your best interests. Call us at 877-254-4254 and learn how to get started here: http://www.irsallstar.com/pre-game
The last thing any taxpayer wants to experience is an IRS audit. But it happens to millions of unfortunate taxpayers every year. And as you know, if you’ve been paying attention to these blog entries and articles, small business owners are somewhat more likely to be audited than individual taxpayers.
So what should you do if you receive a notification from the IRS that you’re being audited?
First and foremost – get professional help! It’s a bad idea to face the IRS on your own. A recent Huffington Post article offers a number of additional suggestions:
These tips are helpful, and sticking to them will help avoid further trouble with the IRS. But we can’t stress enough how important it is to be represented by an attorney who focuses exclusively on IRS or tax matters when you face the agency. IRS agents rely on intimidation and other threatening tactics in order to get what they want. And unfortunately, most taxpayers simply aren’t familiar enough with the law to know their own rights and properly defend themselves against the IRS. That’s why you are always better off having an experienced lawyer on your team!
Contact us today if you’d like to learn more.
The Florida Gulf Coast is known as a great place to retire. You may be retired already or getting close, or even in the earlier planning stages. But what happens when you fall into trouble with the IRS? Can the IRS seize your retirement accounts? Even though retirement plans are protected from creditors, unfortunately, the IRS is an exception.
The general rule is if you can get access to it so can the IRS. The IRS can seize retirement accounts, including 401k plans, IRAs, and self-employed plans like SEP-IRAs and Keogh plans. There are no prohibitions in the Internal Revenue Code against it.
How might a person end up in this situation? Imagine someone who has been laid off and has difficulty finding another job. He is forced to live off of his retirement account. Then he gets hit with the tax bill for taking early distribution plus the 10% early distribution penalty, he has no way to pay the amount owed. If your only source of money is continuing to take distributions from your retirement accounts, the IRS will expect you to liquidate the account to pay off the taxes and penalties due.
However, many retirement plans deny you access to your funds unless you retire at the pre-designated age, separate from service, or experience a disability. Also, if you take a job with another company you cannot access the funds. This is good news for you. The IRS cannot force you to end your employment, and as long as you continue working the IRS cannot access your retirement account. The bad news is the IRS will still hunt for its money. They will look towards your wages and other personal assets in order to claim the taxes owed.
What happens if you do have rights to the money in your retirement account and the IRS can get to it? There are a couple of aspects to consider. First, what was your conduct leading to the liability. Was it flagrant? Examples of “flagrant conduct” would be tax evasion, fraud, or making contributions to the account while the unpaid taxes were becoming due. The second consideration is whether you depend on the money in the retirement account, or will in the near future. If it can be determined that your conduct was not flagrant or that you need to depend on the retirement money the IRS CANNOT levy your retirement account.
The IRS must stop trying to claim money that it has no rights to. Occasionally an aggressive IRS Revenue Officer will agree to not touch the retirement account but will instead place a levy on wages if the retirement money is not voluntarily withdrawn. But as you can see there are ways to protect your retirement account.
Any way you look at it though, once you are out of compliance with the IRS they can go to extreme lengths to collect the taxes. Don’t let it get to the point of retirement accounts and wage levies. If you’re in the Gulf Coast area we can help. Come in and meet us and let us show you some better options to get the IRS off your back for good. Call now at 877-254-4254, http://www.irsallstar.com/
You don’t have to feel bad if you do not know how to face a tax audit. Most people do not have experience dealing with this situation until it is unexpectedly put in their lap. It’s no wonder that it conjures up stress and extreme feelings of fear and dread. If you find that you are facing an audit and you are confused or overwhelmed by the process then you should remember that you have rights. Talking with a qualified tax resolution professional will help you better understand what you should do to protect those rights.
You should also be aware that there are different types of IRS audits and that not all audits are full audits. Sometimes the IRS contacts you for clarification on a specific item that they may be unsure of on your tax return. Other times they may only be challenging a portion of what was included on your tax return. These partial audits can often be taken care of by simply supplying the receipts or needed items that pertain to the section of your return that is under question.
Again, if you feel the IRS has made mistakes or is being unfair towards you then contact us today at 877-254-4254. To read Smart Money Resources description of the different types of tax audits go here. http://www.smartmoneyresources.com/86/what-to-do-when-you-are-facing-a-tax-audit/
With all of the scandals that the IRS has recently been facing they can’t really afford to be hit with more bad press. However, that is exactly what is happening. A recent evaluation by the Treasury Inspector General for Tax Administration revealed that many IRS seizures are actually illegal.
So what does this mean for a taxpayer? Well, it means that if you have tax problems you should make sure that you verify all claims against you and scrutinize how they are handled. It should also encourage you to seek professional advice when facing the IRS. Read more about the Government report in this article by Forbes. http://www.forbes.com/sites/robertwood/2013/07/05/many-irs-seizures-are-illegal-government-report-reveals/
The subject of government spying has been discussed at length recently, particularly as it relates to former National Security Agency (NSA) employee Edward Snowden and his publication of classified information.
Not surprisingly, information has recently become available which indicates that the IRS may have partnered with agencies such as the NSA and the Drug Enforcement Administration (DEA) to gather information on unsuspecting taxpayers.
The Internal Revenue Service reportedly received incriminating information on US citizens from the Drug Enforcement Agency, with the assistance of the National Security Agency, before concealing the paper trail from defendants.
Details of a Drug Enforcement Administration (DEA) program that provides tips to the Internal Revenue Service (IRS) and then advises them to “recreate the investigative trail” were published in a manual used by IRS agents for two years, Reuters revealed.
The practice of concealing the source of information has attracted the scrutiny of legal experts and is now under review by the US Justice Department.
A brief entry in the Internal Revenue Manual instructed agents of the US tax agency to omit any reference to information provided by the DEA’s Special Operations Division, especially with regard to “affidavits, court proceedings or investigative files.”
The entry was published and posted online in 2005 and 2006, and removed in early 2007. An IRS spokesman had no comment on the entry or on why it was removed from the manual, Reuters reported.
The brutal collection efforts that the IRS employs are no surprise to anyone at this point – but it is troubling to learn that the IRS may be leveraging illegal sources of information in their investigations of taxpayers.
Many Americans are uncomfortable with the idea of the government spying on Americans in any context, including national security. How much more uncomfortable should we be knowing that the IRS may be, in effect, spying on Americans in order to collect more taxes? And that they are then trying to “cover their tracks” to prevent the public from knowing about it?
The bottom line is that the IRS will do whatever they can to collect from taxpayers. That’s why it is so critical to work with a tax attorney in the event of an IRS dispute – because an attorney can force the agency to play by the rules. Please contact us today if you’d like to learn more!
You’re in trouble with the IRS. You feel overwhelmed, scared and confused. Now is the time that you need to find and speak with a qualified tax resolution professional. However, even though you may feel desperate, you need to take a bit of time to make sure that the representative you choose is qualified, capable and motivated to find the right solution for your specific case. You need to make sure that they have your best interests in mind. So how do you do that? Well, you can start by asking them a few questions.
You should ask:
Starting with these questions will give you a better idea of the representatives experience and qualifications. Remember, many questionable tax resolution companies have very few adequately trained employees. Your initial consultation should be directly with a licensed attorney, CPA or an enrolled agent. Only someone with those qualifications can adequately help you. That first consultation SHOULD NOT BE WITH A SALESPERSON. If you find that the company you are talking to is using high pressure sales tactics, trying to get you to pay ridiculous upfront fees or making promises of unbelievable results then keep looking. A qualified representative will be straightforward and honest with you and will be looking out for your best interests not their personal sales commission. http://www.irsallstar.com/about-us
An IRS Bank Levy or Wage Garnishment can be detrimental to an individual’s financial well being. You should know that it is possible to get your money back or have the garnishment removed. An IRS levy or garnishment can be reversed or released if it is causing you and your family significant economic hardship.
We believe in helping our clients face their tax problems the right way and to help rid them of the economic devastation that the IRS can cause. You can look at these extreme collection tactics by the IRS as a “wake up” call that is meant to get your attention. If you have a severe economic hardship that has been caused by a bank levy or wage garnishment then contact us today. We can schedule a free confidential consultation with you to discuss your options and start finding the right way to help you face your tax problems. http://www.irsallstar.com/contact-us
You have tax problems. That is a serious issue and one that should lead you to look for help. Perhaps you are hesitating because you do not know how to find help or who to go to. It is normal for you to feel anxiety and stress when faced with tax problems but this is no reason to jump onto the first “quick fix” that you are offered. Your very first step should be to schedule a consultation with a licensed attorney, a CPA or an enrolled agent. Whoever you choose should have an A+ rating with the Better Business Bureau. Avoid large tax resolution firms that use strong sales pitches, offer extreme promises of success and ask for large upfront fees before they have even done anything.
So, you may ask, “Alright, I’ll look for a reputable tax resolution professional but what exactly will they do for me?”
Well, quite simply, an experienced tax resolution professional will perform specific actions to successfully engage the IRS on your behalf. They will start by doing some serious research and fact-finding on your case. An initial consultation can take an hour or longer so that they can collect all of the information on your existing tax issues. At this stage it is very important that you are honest with them so that they can select the best available options for solving your case. Hiding information from them may lead to certain factors about your case being looked over, factors that could be game changers in the success of your resolution.
A few things they may want to know about include:
Taking the information from the consultation the tax resolution professional will also conduct research into your case to try to fully understand what you are facing. They may conduct an investigation of their own into what the IRS has on file about you and what charges you are facing exactly.
After the research is conducted the tax resolution professional will have a pretty good idea of what options are available to you. They will present you with your options and should explain in detail what each option will do for your specific situation. They will build a strategy to face your IRS problem using viable options and then take you through a step-by-step process to implement that strategy. They will shield you from the IRS and help relieve the pressure that may be being placed on you through liens, levies and garnishments. Finally, they will help you finalize a solution with the IRS that works in your best interest and help pull you out of financial hardship.
If you are facing tax problems make sure you schedule a consultation with a qualified tax resolution professional today. Don’t wait. Every day you ignore the problem is another day that the IRS will use to increase their collection pressure tactics. http://www.irsallstar.com/
A group of Montgomery Alabama Residents were recently indicted by a federal grand jury for involvement in tax fraud. The group faces charges that include conspiracy and theft of government money. One of the individuals charged, Tarrish Tellis, was also indicted on 5 counts of aggravated identity theft. The groups is accused of using the identities to file false federal income tax returns. If convicted each of the defendants faces a maximum potential sentence of five years for conspiracy . They also face 10 years in prison for each theft of government funds and Tarrish faces a mandatory 2 years sentence for aggravated identity theft.
Identity theft has been shown to be on the rise in the last few years. You can do a few things to protect yourself. One way to avoid having someone target your tax refund is to file your taxes early.
Doing these few things will help you avoid being a target for identity thieves. To read about the individuals being accused in Alabama read this. http://www.wtvy.com/home/headlines/Alabama-Residents-Indicted-on–204899041.html
Recently the news has been reporting regularly about Mary J. Blige facing a 3.4 Million IRS Tax Lien for her unpaid taxes. The Grammy award winning singer and her husband owe back taxes for 2009, 2010 and 2011. This all comes shortly after it was reported that Lauryn Hill, another Grammy award artist, will start a three month jail sentence beginning in July for tax evasion
However, the truth is Mary J. Blige and Lauryn Hill are not the only people being faced with strict IRS collection tactic. According to tax statistics the IRS has increased the amount of tax liens they are placing on properties in the last few years. Often a lien is the very first collection tactic the taxman pursues if you have failed to pay an IRS Notice and Demand of Payment. If you’re facing this situation make sure that you get help as soon as possible. Don’t let the tax problems build. To read more about the case of Mary J. Blige and Lauryn Hill you can read these articles.
Does your Alabama home already have a tax lien on it? Do you feel trapped and unable to move forward? Are you afraid to try to sell your home for fear of the tax lien holding back the sale? Are you hiding from taking action because you don’t feel you have any options? You need to know that there are options, there is a way out.
If you have received an IRS Notice & Demand of Payment and you have chosen not to pay then you have 10 days before the IRS can begin the process of placing a lien on your property. However, this is not the only problem you face if you do not take action. The IRS can also garnish your wages and seize property if you don’t act. Again, you do have options and your first step to facing your problem and beginning the process of taking care of it starts with getting help. Learn more about facing tax liens and receiving relief. http://taxhelpmobile.com/
None of us like the IRS. As taxpayers, it is natural that we want to keep as much of our hard earned money in our own pockets each year. At the same time, most of us understand that the government does need revenue in order to function, and recognize that some level of taxation is necessary, even if we don’t enjoy it.
But last month we learned that the agency in charge of collecting these revenues, the IRS, was inappropriately targeting conservative political organizations for additional scrutiny. And while most of us don’t run political organizations, we do deal with the IRS. And if we can’t trust the agency to operate ethically with regards to political groups, how can we trust them to operate fairly in our own affairs?
A recent article posted on FOXNEWS.com points out just how troubling these developments are:
If the question is “can we trust the IRS to operate legally and responsibly?” the answer is clearly “no.” For the future of our democracy, let’s all hope that the agency can make the changes necessary to ensure that each and every taxpayers is treated fairly.
In the meantime, if you’re involved in an IRS dispute, we can help. Please contact us today to learn more!
You have decided to face your tax problem and are ready to talk with someone. Why then would you want to use our pre-game checklist before you call? After all, you want to take care of your tax issues right now! Well, there are two main reasons why we provide a Pre-Game Checklist.
First, it helps get the information in order. Having the correct information available when you call us will help us better assess your situation and determine what next steps to take. It allows us to make sure your case starts off the right way, with the right facts and helps us address your needs correctly.
The second reason we like the Pre-game checklist is that it changes the way that YOU think about your tax problem. When you gather the facts together you start the path towards empowering yourself through conscious action. The few small steps you take to pull together the basic information helps you begin taking control and finding the courage to move forward. Then, when you call, we can help you look at that information and find the right solutions. To see the Pre-Game Checklist go here. http://www.irsallstar.com/pre-game
When you have tax problems the fear you feel can overwhelm your thoughts. When this happens you may try to hide or ignore what is happening. However, this is not the best tactic for your situation or for yourself. Ignoring your tax problem will only make the stress build, your anxiety grow, and will eventually lead to an increase in the IRS’s pressure on you. In order to avoid this increase of stress and IRS pressure you need to face the problem and take the correct steps to care for your specific tax issue.
The first step to facing the IRS is finding help. Often clients we help are not only fearful but confused and unsure of the options available to them. We believe in doing things the right way and finding the best options for our clients. We stand between you and the IRS and defend you against them. We help you face the fear and the anxiety and work towards empowering you with the correct steps and knowledge to take care of your tax problems. http://www.irsallstar.com/about-us
None of us wants to face a tax audit. The IRS is an intimidating organization and often the idea of facing them can strike fear in anyone. However, there are some things that you can do that will help make a tax audit go a bit smoother.
Maintain accurate records now.
Ultimately the IRS makes it your responsibility to keep accurate records to prove your deductions and income in the event of an audit. When you collect and organize your records throughout the year it will make it easier to prepare your return and it will help you ensure your filed tax return will be accurate. The other plus side of maintaining records is that having them will allow you to build a solid defense if the IRS audits you.
Records you should get in the habit of maintaining are: At least three years of tax returns and all related tax return materials. Accurate records of your checking and savings accounts, including checkbook stubs. Categorized receipts from all purchases and copies of your regular bills. Records of all costs to maintain property and any investments that are taxable. A journal of your deductible items that you write in at the time you pay for each item. If for any reason you do not feel capable of organizing these records yourself then you could benefit greatly by hiring a qualified tax professional to help you.
So what if you have already been picked for a tax audit? Well, you need to get yourself prepared to face it immediately. Don’t try to hide from this event. Trying to avoid the IRS will only make the situation worse.
First - Take a look at the details of your return and make sure you have a good understanding of the contents. If you did not file your return then get help immediately and start filing as soon as you can.
Make sure you organize your return so that you can support any items being questioned by the IRS. Again, getting help at this time from a tax attorney who knows how the IRS works and how to take care of these situations the right way can be very helpful. This is especially true if you are confused or you feel that the situation being brought to you by the IRS is over your head. Don’t feel ashamed to get help, it is your right to seek council and taxes can be very confusing.
Second - Understand what penalties you are facing
These are some of the common penalties the IRS may be threatening you with.
Prison – Serious cases of tax evasion and other tax crimes can result in severe fines, the forfeiture of assets and incarceration. Avoid this at all cost. Seek help from legal counsel immediately if you are facing this type of IRS investigation.
Finally, If you have unfiled tax returns, are facing severe penalties, are being audited for business or unpaid payroll taxes or find yourself overwhelmed in anyway seek help now. Talking with a tax attorney will help you be sure of the correct steps to take in order to handle your case. Having someone on your side at a time like this will ease the stress and confusion. Call us today at. 877-254-4254 or email us at email@example.com. Or you can fill out our online form here. http://www.irsallstar.com/contact-us
Many of us have heard of, if aren’t entirely familiar with, the Fiscal Cliff Deal that Obama passed this past January, but many of us seem to have forgotten about the Bush Tax Cuts. We know that this year, our taxes went up 2%, but while many individuals think of it as a tax hike, it is actually the end of an era of tax cuts. See, back in 2001, President George W. Bush began to slowly phase in reduced income tax rates in order to bolster an economic recession that had its roots in Clinton’s presidency. The goal of the tax breaks was to create a stronger foundation for future growth.
By 2003, it was clear that the slow-going way in which Bush was trying to introduce the tax cuts wasn’t helping the economy any. So, not one to give up, President Bush, with Congressional Approval, decided to speed up those rate reductions, to lower rates on capital gains and to get rid of the estate tax altogether. It was at about the time that he made these changes that the economy began to show significant signs of growth.
The Bush-era tax breaks were supposed to be permanent improvements to the tax system, but even though they were granted a two-year extension, they were forced to an abrupt end by the approval of 2013’s Fiscal Cliff Deal. When the Fiscal Cliff Deal was proposed by the Obama administration last year, it was met with so much resistance that there was talk of it not even going through – which, even though that’s what many people wanted, wouldn’t have helped our economy any. However, during the final hours of 2012, it was approved, and Americans across the nation began to prepare for the worst – the worst namely being the 2% tax increase.
But now, it’s actually looking as if the Fiscal Cliff Deal wasn’t all-bad. With our country boasting over $700 billion of debt, experts are starting to weigh in, with some being so bold as to say that the extra 2% can really help to turn this economy around. Read on to find out what the experts are saying: http://bit.ly/14sW0x8
Plenty of taxpayers have dealt with IRS scrutiny, particularly in the form of an audit or tax controversy. We have personally worked with hundreds of taxpayers in their battles with the agency. And while these disputes are unpleasant, at least we can take solace in the fact that the IRS is staffed with agents who will consistently uphold the law and deal fairly with each person.
Not really. As you probably already know, it was revealed this month that IRS agents spent more than a year singling out specific organizations for extra scrutiny. As the LA Times reports:
Congressional investigators are broadening their inquiry into the Internal Revenue Service’s mishandling of groups seeking tax-exempt status, indicating that they plan to examine how the agency dealt with a wide swath of nonprofit applications during the last three years.
An inspector general’s report found that some 501(c)4 applications by conservative groups were singled out for extra review and that the groups were sent intrusive requests for additional information.
“Targeting applicants for tax-exempt status using political labels threatens to undermine the public’s trust in the IRS,” the senators wrote. “Lack of candor in advising the Senate of this practice is equally troubling.”
This case is alarming for a variety of reasons. It makes one wonder how much more of this type of behavior exists but simply goes undetected.
More practically, it erodes confidence in the IRS. A taxpayer that is engaged in an audit or a tax dispute already feels like he or she is in an impossible situation—but the knowledge that IRS agents have been known to violate the law makes it seem even worse.
And then there is the hypocrisy—an agency that expects taxpayers to account for every penny they spend and follow every obscure regulation doesn’t hold themselves to the same standard. It’s disappointing to say the least.
All of this underscores the need to work with an attorney who understands tax law. You clearly can’t expect the IRS to play by the rules—so if you’re facing an IRS dispute, give us a call and let us keep them honest. Please feel free to contact us today to learn more!
Tax-day has come and gone, and while many taxpayers can breathe a sigh of relief, there are just as many more individuals who will be receiving collection notices from the IRS any day now—not because they didn’t file on time, but because they simply can’t afford to pay all the money owed up front. If you are in this situation, I understand that instinct says to hide from the IRS, or “play dead,” until the storm has passed, but this is the worst thing you can do. Yes, the IRS is powerful, and yes, they can be scary, but if you just talk to them, chances are, they’ll work out an agreement with you.
For many Americans, making a deal with the IRS is comparative to striking a deal with the devil – It’s foolish! Dangerous! It’s just asking for trouble! But you would be surprised that, even if they aren’t the most warm and fuzzy American institution, the IRS is reasonable. There are real-life people working behind the green curtain, and each of them has their own bills to pay and stomachs to feed – if you just explain to them that your budget is tight and you need to make monthly payments instead of one mass one, they won’t deny you.
But if it’s that easy, many people wonder, why don’t more people do it? Well, for starters, you have to have a legitimate reason for needing an installment plan. Coming to an agreement with the IRS involves much more than a traditional handshake – it involves full financial disclosure on your part and much analysis on theirs. Not only will they determine whether or not you’re really strapped for cash, but they’ll want to get a good estimate of just how much you can afford to pay them each month. They will let you set the monthly amount, but if it’s too low, they’ll demand more, so you want to be sure to come up with an amount that works for the both of you.
Lastly, most people would prefer to clean out their bank accounts on April 15th and be done with the IRS for the next year than to have to deal with them every month for the foreseeable future. If you choose to do monthly installments, there is no telling how long you’ll have the IRS knocking at your door for. Just know that if you opt for an installment agreement, you’re opting to live with Uncle Sam until your taxes are paid off in full.
I understand that dealing with the IRS alone can be scary, even if you are trying to work with them, which is why I make it my job to help you. I don’t want taxes to be your undoing, and I don’t want you to play dead for a year – for support, and advice on how to apply for an installment agreement, contact my office today. http://www.irsallstar.com/our-services#5
Welcome to the Wild, Wild West, where honest, tax-paying citizens are hoodwinked for a quick buck and then hung-out to dry. This tax-season, an estimated 60% of the 140 million tax-filers will employ the help of a professional preparer, according to the Internal Revenue Service. While for many, this may seem like the best way to get the most from their return, recent investigations are discovering that paid preparers are responsible for a vast majority of the IRS’s headaches. In fact, Tax Preparer Fraud ranked third on the IRS’s list of top 12 scams this year. This is due to the many professionals who are entrusted with millions of returns each year, and who don’t feel any qualms about short-changing their customers on refunds or preparing fraudulent returns—just to gain some extra pocket change.
Unfortunately, though the IRS is doing everything in their power to protect the taxpayer, the only ones who will be protected this tax-season—and who will remain unscathed from the backlash of the scams—are the preparers themselves. As it stands now, taxes are an individual’s responsibility, and if fraud occurs at the hands of somebody else, the taxpayer is still liable, which means that the innocent will be the ones to pay.
So, how do you know if you’re the victim of tax-fraud? And if you are, what can you do about it?
For starters, be weary of a too-big refund. I know many of you don’t want to hear this, but if a refund is too big, it generally indicates that something went awry during filing. Oftentimes, deductions were too large, dependents were unjustified or incomes falsified. Though your preparer could have made these errors in innocence, more often than not, mistakes such as these are made intentionally. Many preparers demand a generous portion of the filer’s refund, and the larger the refund, the bigger the paycheck. This is illegal, but with no one to regulate their actions, tax-preparers get away with it time and time again.
If you suspect that your refund is much more than you paid in taxes last year, seek the second opinion of another professional. Though it might take them years to get to your case, chances are good that the IRS will come after you for their money, and what it might cost you to get a second opinion won’t be near as much as what you will owe the IRS should they determine you’re worth an investigation.
Too little a refund is also a sign of tax-preparer fraud. Private investigators have been turning up evidence of professional preparers shorting filers on their refunds and keeping the remaining balance for themselves. The tax-preparer is ultimately responsible for what information is entered on the return, and the tax formula is so complicated that the normal, everyday person wouldn’t know what to look for on an ill-prepared return even if they wanted to double check it—which they don’t, because most people trust their tax-preparer.
Unfortunately, trusting your tax-preparer can be a mistake. Because they have so much control – and because many individuals are blissfully ignorant of the way the tax-system works – preparers have worked out a seemingly foul-proof way to scam the average worker out of their hard earned cash.
The tax-preparer gets the client to sign a fake or incomplete return, one that shows a refund amount of only a few hundred dollars. Though the amount is a lot smaller than they expected, the disheartened filer shrugs his or her shoulders, signs on the dotted line and pays the preparer a small fee for their services. The preparer tells the filer they’ll call when the refund is in, and the filer leaves feeling duped—not by the preparer, but by the government.
Meanwhile, the preparer completes the real return—which shows a refund of a couple thousand—sends it in to the IRS and receives the full refund, which they keep. To keep up appearances, they send a couple hundred to the filer, who is none the wiser, and everybody is happy.
There are a few ways you can keep a situation like this from happening to you. First of all, don’t ever sign an incomplete return. If you notice that some lines are empty, or that the numbers don’t match the numbers you gave the preparer, question them. These are you taxes, and this is your money – you have a right to ask as many questions and demand as many answers as you please. Secondly, don’t ever agree to have the return sent to your preparer. Doing so is not a common custom, and any preparer that says so is hiding something. Lastly, just be smart. If a tax-preparer seems unprofessional, is quick to get you in and out of the door, demands a fee, or can’t seem to answer any of your questions—walk away. The headache of trying to find a legitimate tax-preparer is nothing when compared to the headache of having to deal with the IRS after an ill-prepared return.
What the IRS is doing to prevent tax-preparer fraud:
Last year, the IRS was pushing for a law that would crack down on professional preparers, and therefore, eradicate fraud and abuse in tax return filing. They proposed the following:
However, the case was shot down at the beginning of this year; but with rising fraud, it looks like something will need to be done here in the very near future.
If you suspect you’ve been a victim of tax fraud, or if you want to avoid the possibility altogether, visit me at IRS All-Star, where we value nothing more than our relationship with you, and where we pride ourselves on being ethical through and through. http://www.irsallstar.com
Tax season is winding down, and I hope that all of you made it through without too much trauma!
In all seriousness, this is a great time to review your strategy in order to determine whether you need to change things moving forward. Perhaps your current strategy increases the chances that you will face an audit or an IRS dispute—or maybe it’s leading to overpayment of taxes.
Whatever the case may be, it makes sense to review your strategy as we move into 2013. This is particularly true for business owners and self-employed individuals because their tax filing requirements can be particularly complicated. In that spirit, today I’d like to share five critical steps that every business owner should keep in mind as they consider their tax strategy.
1) Withhold, withhold, withhold. The most common reason that the self-employed get into trouble with the IRS is because they haven’t been withholding money for taxes. Because you don’t have an employer to withhold taxes from each paycheck, it’s up to you to withhold on your own. Twenty percent is usually a good place to start.
2) Keep business expenses and personal expenses separate. Mixing up your business transactions and personal transactions can be an accounting nightmare—but worse, it’s a giant red flag to the IRS. Separate bank accounts and credit cards are highly recommended.
3) Keep accurate records of income. If the IRS audits you and finds that you didn’t report all of your income, you will face substantial penalties. Record your income and report it accurately. It’s not worth trying to hide income from the IRS.
4) Record your expenses and deductions. As a business owner, you are entitled to a variety of tax deductions—everything from vehicle mileage to a home-office deduction. But if you don’t record it, you can’t claim it. So keep ALL necessary records! This is vital in the event that you are audited by the IRS.
5) Don’t stress yourself out. Sure, dealing with the IRS isn’t pleasant. But if you are disciplined and keep careful records all year long, tax season doesn’t have to be a painful and stressful experience.
Questions or comments? Would you like to learn more? Or perhaps you need assistance resolving an IRS dispute? We can help- please feel free to contact us today!
As the month of April rolls around, millions of taxpayers across the country will be filing their taxes in order to meet the IRS deadline of April 15. If you’re one of these people, an article recently posted on BizJournals.com has some suggestions that may be helpful. Below are three of them:
1. E-file your taxes. It’s a fast, easy and accurate way to file, and for most people it’s free. The IRS’s Free File partnership with several tax software companies allows most filers to prepare and e-file their returns free online. It’s only available at www.irs.gov . Extensions are free, too, through IRS Free File, but must be filed by April 15.
2. Don’t miss the earned income tax credit. Many lower-income workers, including some grandparents raising grandchildren and rural residents, miss out on EITC each year. Even if you couldn’t claim EITC on previous tax returns, changes in your income or marital status or having a child may allow you claim it for 2012. If you worked some part of last year and your household income was below $50,270, you may qualify for EITC. Use the EITC Assistant at IRS.gov to find out.
3. Watch out for tax scams. Emails that appear to be from the IRS probably are not. Scammers may go phishing for your private information by alerting you to a nonexistent refund or threatening you with an audit if you don’t respond. The IRS never uses email, texts or any social media to initiate contact with taxpayers. Never.
At this point, you’ve still got time to complete your taxes—but remember that if you fail to have your return completed and postmarked by April 15, your return is late and you are subject to IRS penalties. In addition, waiting until the last moment often causes increased stress—and increases the likelihood of mistakes as you rush to beat the deadline. So don’t put it off much longer!
If you’d like help preparing your tax returns, we would be glad to assist. In addition, if you’re facing an IRS dispute or other complications, we can help. Our team is standing by… please get in touch with us today!
The article “Should I Pay My Taxes With Plastic?” posted on Smartmoney.com gives us a bit of insight into the issues with paying your taxes with your credit card. While you may dread the idea of owing the IRS money and find that charging you taxes to the plastic is convenient you may be overlooking the overall cost of extra charges. The “convenience fee” charge may not be overwhelming when you owe a small amount but it can get hefty when paying larger bills.
Also, by paying with a credit card you may be overlooking options to pay your debt that will charge you less interest over the long run. There is the possibility that you may qualify to set up an installment-payment plan with the IRS directly. While the interest rate the IRS charges is subject to change there is a good chance it is cheaper than the interest rate that you will get from your credit card company.
Keep in mind if your tax debt is extreme, delinquent and/or you are facing IRS collection actions make sure you contact a reliable tax attorney to find out the best options available for your situation. To read the SmartMoney article about paying your taxes with your credit card see http://www.smartmoney.com/taxes/income/tax-tips-should-i-pay-my-taxes-with-plastic/
Many tax resolution companies do not talk about your option to file for bankruptcy to relieve yourself from your tax debt. It is a common myth that bankruptcy can not be used to discharge tax debt. However, bankruptcy, while frequently a last resort, is the best option for certain clients. Don’t let other resolution companies automatically take this option out of your tax resolution strategy. The reason many of them avoid this possibility is because they are not attorneys and therefore can not help you with the bankruptcy process.
If you are dealing with tax debt, IRS collection, or are afraid that you will be in the future it will serve you well to speak with a tax attorney who knows how to handle your case the right way. A reliable tax attorney will know all of the options that are available to you and will be able to advise you on the best options available for your specific situation. Bankruptcy may be a good option for you but hesitating to take care of your tax problem is not. Learn more about your options. See http://www.irsallstar.com/our-services
Legal problems can happen to anyone but not many of us are prepared for them. Wouldn’t it be nice to know that you had professional advice from some of Americas leading attorneys at your side? Introducing “Protect and Defend” a book that brings together the practical advice of America’s Leading Attorneys on their specific area of expertise.
Included in this helpful book is a chapter written by tax attorney John P. Willis who gives us advice on how to select an allstar tax resolution team. This chapter walks you through the process of finding a reputable tax resolution professional and what qualifications that representative should have. He also touches on the tax resolution fee structure and why guaranteed results should raise concerns when dealing with a tax resolution professional.
Click here to learn more about the book and Tax Resolution Attorney John P. Willis. http://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-iv-signs-publishing-deal-with-celebritypress-to-release-protect-and-defend.php
Whether you are currently dealing with tax problems, just cleared yourself and are starting fresh or have never had an issue with the IRS you can benefit from taking steps that will help you avoid problems with the IRS in the future. Below you will find a few simple reminders and steps that will help keep you out of tax trouble.
File Your Tax Returns on Time
Making sure you file your taxes correctly every year for yourself as well as your business will help you avoid the slippery slope to larger IRS problems. Filing on time helps you avoid penalties and fees. Also if the IRS ever audits your returns the fact that you filed on time will be in your favor.
Pay Future Taxes
The number one reason taxpayers have IRS problems is due to the fact that they didn’t pay taxes they owed. If you want to avoid tax problems you must make sure you “Pay As You Go”. This means that if you are employed make sure that your current tax withholding is enough to pay this years taxes! If you do not know how to figure this out then you must find a competent professional who can help you.
If you are self-employed you can really hurt yourself with the IRS. Since no one is taking out tax withholdings from your checks you can make the mistake of not setting aside and paying the correct amount of taxes needed for you to be safe at tax time. In order to avoid problems with self-employment pay you need to pay Estimated Taxes. By doing this you will also be showing the IRS that you have good intentions to pay and this may work in your favor if there are any problems.
There is an easy way to pay the IRS during the year. Basically, whenever you get a check or cash from a customer as payment you should immediately take 20% of the check or cash and send it to the IRS for this year’s taxes. The percentage may be a little high or low but it is a starting place and can be adjusted later. By sending in an estimated tax to the IRS you can avoid owing more at the end of the year then you can afford. Make sure you send the check or money order with you name, social security number and the words “1040ES Tax Year 20XX”(“XX” is the year in question) written in the memo area. Make sure you keep a clear record and copies of the checks or money orders that you do send.
If you follow these simple tips you can avoid a lot of future problems with the IRS. If tax issues do arise the IRS is more likely to look kindly on your case since you showed a certain amount of good intention in regards to your tax responsibilities.
Again, if you are confused by your taxes make sure that you get competent help from a professional. If you find that you have not done so well with your taxes in the past, owe tax debt, have not filed in awhile or have the IRS pursuing you for unpaid taxes make sure you find a reliable tax attorney to help you take care of your tax problems the right way. http://www.irsallstar.com/
If you’re a parent, you know that kids are expensive. They’re fun, they’re fulfilling… but they’re expensive! However, when it comes to paying your taxes, your kids can actually save you money. Patch.com identifies several specific ways that parents can reduce their tax burden:
Dependents. In most cases, you can claim a child as a dependent even if your child was born anytime in 2012. For more information, see IRS Publication 501, Exemptions, Standard Deduction and Filing Information.
Child Tax Credit. You may be able to claim the Child Tax Credit for each of your children that were under age 17 at the end of 2012. If you do not benefit from the full amount of the credit, you may be eligible for the Additional Child Tax Credit. For more information, see the instructions for Schedule 8812, Child Tax Credit, and Publication 972, Child Tax Credit.
Child and Dependent Care Credit. You may be able to claim this credit if you paid someone to care for your child or children under age 13, so that you could work or look for work. See IRS Publication 503, Child and Dependent Care Expenses.
Earned Income Tax Credit. If you worked but earned less than $50,270 last year, you may qualify for EITC. If you have qualifying children, you may get up to $5,891 dollars extra back when you file a return and claim it. Use the EITC Assistant to find out if you qualify. See Publication 596, Earned Income Tax Credit.
Adoption Credit. You may be able to take a tax credit for certain expenses you incurred to adopt a child. For details about this credit, see the instructions for IRS Form 8839, Qualified Adoption Expenses.
You’ve worked hard for your money all year long—so don’t pay the IRS a penny more than you must. As a parent, there are a number of opportunities to save money on your taxes. If you’d like to learn more, or if you’d like help maximizing deducting and credits when you file your taxes, please get in touch with us today!
IRS revenue officers are among the most powerful people on the government payroll. Ten days after the IRS demands payment, they can seize a taxpayer’s possessions. They can serve a levy on a third party such as a bank or employer. If they suspect you may try to skip town they can seize your possessions right away. And all of this can be done without a court order!
I want to direct you to a fascinating article written by a former IRS Revenue Officer. He admits that the motive of IRS tactics is not so much about collecting the money, as it is about instilling fear and creating a vision of massive IRS power in the eyes of the public. In reality, there are not enough IRS Revenue Officers to handle all of their collection cases. It is much easier to create the illusion of fear in order to scare people into compliance. This former IRS employee was encouraged to seize property and create a big ruckus in the media when he knew full well that these taxpayers would be eligible for installment agreements and other collection alternatives to help them deal with their tax debts. This former employee talks about one administrator he knew who earned a promotion by refusing every offer in compromise brought before him.
As a taxpayer who may be in trouble, this is what you are up against. This is why having an experienced and knowledgeable tax attorney is critical to your success. Eliminating this “fear-factor” and removing the “drama” is one of the reasons why I love doing what I do. Together we can figure out your issues and get your life back! I encourage you to call us today: http://www.irsallstar.com/
Also, to read the full story from the former IRS agent, check the article here: http://www.unclefed.com/TxprBoR/JWWade.html
One of the biggest misconceptions I see is the belief that bankruptcy is not a realistic option for eliminating back taxes. I want to clarify this misunderstanding. Bankruptcy is a good option for some people. There are some big exceptions when it comes to bankruptcy as a method of tax relief because not all taxes are dischargeable in bankruptcy, and it’s often considered a last resort. Bankruptcy laws have recently become more restricted, so if you file for bankruptcy it doesn’t necessarily mean your tax debt will be discharged. There is a lot of bad information out there about this. Rest assured we can help you decide what the best option is for you. Don’t assume something isn’t possible. We can help you see what IS possible. Call us today for an initial consultation: http://www.irsallstar.com/
When that knock comes on your door and you want to hide because you know it’s the IRS here’s what you should and shouldn’t do…
You’ve probably heard the saying “don’t make a mountain out of a molehill.” It’s common sense, something most of us heard from our parents or our teachers—the idea that we shouldn’t take a small problem and blow it up into something huge. Well, somebody needs to explain this concept to the IRS. It’s amazing how often a minor error or a perfectly innocent mistake balloons into a huge problem. IRS penalties and interest add up and quickly become unrealistic.
And then, before you know it, the IRS is coming after your home or other assets. A recent article published in South Carolina’s Aiken Standard reports one such story:
An Aiken man who owes more than $1.7 million in taxes, interest and penalties could lose his home and the 150-acre property on which the Internal Revenue Service has a tax lien.
On Wednesday, the IRS and the U.S. Attorney General’s Office filed a civil lawsuit in federal court against Edward “Ed” F. Scanlon, his wife Debra J. Scanlon and the First Citizens Bank and Trust Company hoping to foreclose on that lien.
The suit alleges that the Scanlons failed jointly to fully pay federal income tax in 2002, 2003 and 2004; and that Ed Scanlon failed to pay individually in 1999 and 2000. The total debt, according to court documents, is $1,709,654.90.
First Citizens is named in the suit as it holds the mortgage on the Kitchings Mill area property which the IRS wishes to foreclose on.
“This is an ongoing, longstanding problem between me and the IRS, having to do with income I generated years ago,” Ed Scanlon said Thursday, who was unaware of the suit until contacted by the Aiken Standard. “I’m in the middle of changing my legal (and financial) representation. I hoped, I had hoped, they would defer any action for a month so I could get this worked out.”
Without knowing the details of the case, it’s impossible to comment on it specifically. But there are countless taxpayers and business owners in this country who could share similar stories of IRS over-aggression. And many times, it was simple mistakes that caused the problem to begin with.
If you’re in a similar situation, it’s important that you take steps to resolve it quickly while it is still manageable. If you’d like to learn more, or if you
When I meet with a new client for the first time I understand they are afraid. They are scared of losing their property. Maybe they have not filed their tax returns for a few years, or they simply don’t have the funds to pay what they owe. The biggest question on their mind is “Will I go to jail?” My answer is: Take a deep breath and know that many options are available.
It is not a crime to owe the IRS money. However, failing to file is a crime. The law states that one year of jail time can be required for each year taxes aren’t filed. Tax evasion is a federal offense. Therefore, sentencing on such cases can be influenced by the Guidelines established by the U.S. Sentencing Commission. These “Guidelines” list every possible federal violation and rank them in a way in which the larger offenses are more heavily penalized than the smaller offenses. So owing the IRS $5,000 would not be punished as harshly as owing them $250,000. However, this manual is only a guideline and judges are allowed to take liberties with what the text suggests.
Each case is different. A person may be sentenced to community service, probation, or home confinement rather than jail. Probation is when the offender is ordered to follow certain rules and conditions established by the court and the offender is often supervised by a probation officer. These conditions may include providing the probation officer open access to computer files, state and federal tax returns, bank accounts and any other investments or financial transactions. “Home confinement” refers to being forced to stay in one’s home or specified location instead of jail. The offender may only leave the location under strict circumstances such as a medical emergency.
You may feel like the “underdog” when up against the powerful force of the IRS. That’s understandable. But this is what I love doing the most- taking on the IRS and helping the little guy win! Together we can devise a plan that results in a positive outcome for you, a way to clean up past regrets and give you a clean slate for the future. The best way to ensure staying out of jail is to be cooperative and honest with the IRS. If a person can demonstrate he is taking responsibility for his situation and working towards a solution, the IRS and the courts will tend to be more understanding. I work with people to create this kind of practical path.
Sometimes, this path may include filing past due tax returns and/or amended tax returns. However, it is important to consult with a competent tax attorney because submitting these returns is an “admission” of the amount owed to the IRS. Another potential option is to file a Voluntary Disclosure. Under this program, the IRS offers people with undisclosed income in offshore accounts a chance to “come clean” and get current with their taxes.
The courts consider many aspects of each case when deciding an outcome. They will take into consideration the details and the nature of the situation and the history of the defendant. The judge may consider the guidelines of the sentencing commission and will compare the case to other similar cases.
There are many options available to avoid jail. But in any case it is critical to seek the advice of a knowledgeable and experienced tax attorney. Call our office today to learn how we can help with your specific case. 877-254-4254
Unless you’ve spent the last two months living under a rock, you are well aware of the “fiscal cliff” that our nation is facing. And not surprisingly, politicians in Washington have yet to reach a deal. But what you may NOT have realized is exactly how significantly your tax bill may be impacted. It would be a very, very big deal, as Politico reports:
Doug Shulman, the former IRS commissioner, said the IRS and the 2012 tax filing season will be thrown into “chaos” if lawmakers do not fix the so-called alternative minimum tax by the end of the year.
“If those aren’t fixed, it’s going to be real chaos with the American people trying to interact with the IRS,” Shulman said at POLITICO Pro’s P2012 Policy and Politics Tax Luncheon. “People won’t get refunds.”
The last AMT patch actually expired Dec. 31, 2011. The tax is intended to ensure people above a certain income thresholds pay a minimum amount each year to Uncle Sam, but it was never indexed for inflation.
Without the quick fix, Shulman said more than 30 million people will see their taxes skyrocket. Some, he said, are “going to have a new bill of $5,000-$6,000.”
The IRS has already programmed its software to include a patch for the alternative minimum tax, but that’s based on an assumption that lawmakers will actually pass the patch. Without it, Shulman said, tax filing will be severely delayed for those who are subject to the tax.
“Most of those people are not going to be able to file around March,” he said, and most American usually file as early as January.
The Congressional Budget Office estimated it will cost taxpayers $103 billion in 2013 and $864 billion dollars over 10 years.
So if you’ve got an extra $5,000 or $6,000 that you’d like to give to the government, you’re in luck. The rest of us are facing the unpleasant fact that we may have to watch the drama in Washington DC unfold, and hope that politicians in both parties can find a way to work together. If you have questions or concerns about how these developments will impact your tax situation, please don’t hesitate to get in touch with us today!
As if the tax code wasn’t already complicated enough, millions of Americans are currently facing the threat of a major tax increase in 2013. Notice that we said “threat.” This is because, as crazy as this may sound, we still don’t know. The partisan gridlock that has taken over Washington DC means we don’t know what to expect from the tax code mere months from now.
What we DO know is that, as of right now, millions of Americans are in line for a tax hike. Bloomberg reports:
Taxpayers would face “serious repercussions” if Congress doesn’t act by Dec. 31 to prevent the alternative minimum tax from expanding, according to the Internal Revenue Service.
About 28 million taxpayers would face an unexpected liability for tax year 2012 that has been estimated at $92 billion. Furthermore, the IRS would also need to reprogram its computer systems, delaying tax filing for 60 million taxpayers from January 2013 until “late March 2013, if not even later,” Steven Miller, the acting IRS commissioner, wrote in a letter today to Senator Max Baucus, a Montana Democrat who’s chairman of the Senate Finance Committee.
“Tens of millions of these taxpayers would unexpectedly have to pay additional income tax for 2012, leaving them with a balance due return or a much smaller refund than expected,” he wrote. “For millions of other taxpayers, refunds would be delayed.”
He sent identical letters to the other top tax writers on Capitol Hill, Senator Orrin Hatch of Utah, the top Republican on the Senate Finance Committee, and Michigan Representatives Dave Camp and Sander Levin, the Republican chairman and the top Democrat, respectively, on the House Ways and Means Committee.
The expansion of the AMT is part of the $607 billion fiscal cliff of tax increases and spending cuts that Congress is trying to avert.
As if it wasn’t hard enough to stay on top of IRS regulations already, now taxpayers and business owners have to watch while elected officials play with the tax code. This complication is not helpful for the economy, for businesses, or for taxpayers. And it will almost certainly result in further confusion and therefore more IRS disputes than ever before. Don’t be caught off guard—make sure you speak to a tax professional to stay on top of these ever-changing regulations!
Does the idea of an even bigger, better funded IRS sound good to you? If so… you’re in luck. Earlier this year AccountingToday.com reported that the IRS has requested an even larger budget for 2013:
The Obama administration has increased its budget request for the Internal Revenue Service for fiscal year 2013 to approximately $12.8 billion to make up for recent budget cuts.
The $12.8 billion represents an 8 percent increase of approximately $944.5 million over the level enacted in fiscal year 2012, but only a 5.3 percent, or $639.3 million, increase from the level enacted for fiscal year 2011.
A significant part of the increase from fiscal 2012 stems from the administration’s request to restore lost revenue resulting from reductions in IRS funding made over the past two years. The request is designed to provide the resources necessary to administer and enforce the current Tax Code, implement recent changes to the law to update the Code, and serve American taxpayers in a timely manner.
In fiscal 2011, the IRS collected $2.415 trillion in taxes, representing 92 percent of federal government receipts. The IRS processed more than 144.7 million individual returns during the 2011 filing season and issued almost 110 million refunds totaling $345 billion, the agency pointed out.
In fiscal year 2013, the IRS expects to identify nearly $71 million in cost savings from increased use of electronic return filing, reductions in non-case related travel, and the streamlining of operations.
The fiscal 2013 budget includes $403 million for new IRS enforcement activities, which are expected to raise $1.48 billion in revenue annually at full performance, once new hires are fully trained and develop broader experience by fiscal 2015, representing a 4.3-to-1 return on investment.
“The return on investment is even greater when factoring in the deterrence value of these investments and other IRS enforcement programs, which is conservatively estimated to be at least three times the direct revenue impact,” said the IRS.
This might not sound like a bad thing until you realize that increased “enforcement” means more audits and more onerous paperwork, and that when the agency speaks of a “revenue increase” they are talking about taking more of our tax dollars.
In short, the IRS is going to be bigger than ever in 2013, and more aggressive. This is clearly bad news for business owners and taxpayers who are working hard to earn a living in this troubled economy.
However, should you run into trouble with the IRS, keep in mind that you DON’T have to fight your battle alone. We can help. We’ll get the IRS off your back so you can get back to enjoying your life!
Over my years in this business, I’ve observed an interesting phenomenon: most taxpayers view IRS problems as something that could never happen to them. They often think that getting into IRS trouble requires dishonesty or incompetence.
Nothing could be farther from the truth. The reality is that a simple oversight or honest misunderstanding can be enough to trigger an IRS nightmare. And it can happen to anyone—rich, poor, or middle class. As if to reinforce this point, celebrity singer R. Kelly has been in the news recently for his personal tax issues. Complex.com reports:
R.Kelly’s tax problems keep getting worse. Last June, we found out that he owed about $4.8 million to the IRS in back taxes from 2005 to 2010. Now, his tax bill has increased to another one million.
TMZ reports that documents filed in Illinois show that the R&B singer owes the IRS $1,379,695.11 in unpaid taxes for 2011. Adding his already owed amount of $4,848,072.71, the grand total is over 6 million to the IRS.
Here’s what a rep told TMZ: “He takes this very seriously and is already communicating with the IRS about the payment process to quickly resolve the issue.”
Now, R. Kelly is FAR from the only celebrity to run afoul of the IRS. At first glance, most people consider it outrageous that any celebrity would get into tax trouble. After all, they have more than enough money to pay their tax bill, right? Maybe so—but given the complexity of today’s tax code, it’s incredibly easy to make a mistake. And once that happens, and penalties and interest begin to accrue, it becomes a vicious cycle that results in an impossibly large bill from the IRS.
So here’s the point: if you’re currently free of any IRS problems, consider yourself fortunate. Continue to work with trusted professionals to prepare your tax returns each year so that you stay out of trouble. On the other hand, if you’re in the midst of a dispute, don’t despair! I’ve personally worked with many taxpayers and business owners just like you to resolve their IRS disputes. Contact us today to learn more!
Dealing with the IRS is stressful, challenging, and potentially very expensive. Yet, many Americans each year find themselves in the midst of an IRS dispute—and choose NOT to enlist the help of an expert. Unfortunately, this is almost always a serious mistake. Below are four reasons that it is essential to enlist the help of an IRS expert if you’re in the midst of a tax dispute:
1) Innocent mistakes will be held against you. The IRS is not known for its sense of compassion—as anyone who has made a mistake on their tax return can attest. If you make a mistake, even if it is completely innocent, the IRS will still come after you for every penny you owe—including penalties and interest. You simply can’t afford mistakes!
2) It’s impossible to be a tax-law expert without spending years learning the law. The tax code is incredibly confusing—and growing more confusing every year as more regulations are handed down. No matter how smart you are, there’s no way that you can learn all of the pertinent information you need without devoting years to the quest. Take advantage of the expertise of others!
3) The IRS specializes in intimidating taxpayers. The IRS is known as the “world’s most brutal collection agency”—and they’ll do whatever it takes to collect. Threatening phone calls, garnishing wages, even showing up at your home… you name it, the IRS does it. And if you don’t have professional representation that apprises you of your rights and the reality of the situation, it is easy to be overwhelmed and end up giving the IRS everything they want.
4) The cost of hiring a tax professional is dwarfed by the money that could be saved. In many cases, we have saved clients tens of thousands of dollars in IRS debt. Do you think they are glad that they invested in our services? Of course, every situation is different—but in almost every case, hiring a professional is worth it many times over when you consider the money, the time, and the stress that you are spared!
Contact us today to learn more!
Here’s a bit of good news for anyone who LOVES the IRS and just wants to have more of it in their lives: the IRS is hiring agents, and is expected to conduct more audits than ever in 2013. Small business owners are at particular risk, according to an article published by OnWallStreet.com:
The IRS is beefing up its ranks of auditors, and doing more audits, according to a leading accountant addressing the Financial Planning Association of New York’s spring forum.
“With everybody losing jobs, the biggest hire is the taxing authorities. They are hiring left and right to do audits,” said Mark Josephson, partner at New York City-based Murray & Josephson. “Contrary to what you might be reading in the press, when I speak to an auditor, and they say, ‘Yeah we just hired 31 people in our department,’” he said.
He added that as the IRS is auditing more taxpayers, including small business owners, the audits are taking longer because the agents are demanding more details. He said on every audit he’s seen recently, agents have demanded every brokerage statement, every bank statement, and any other type of financial statement. He noted that they always had a right to demand this documentation, but only asked for it occasionally in the past. “One of the main reasons is they want to add up all the deposits and make sure you’re picking up all your income. The audits are becoming more and more tedious,” he said.
At a recent financial forum Martin Murray, Josephson’s business partner, highlighted one particular new disclosure requirement that is getting extra scrutiny: small businesses must disclose if they were required to issue 1099 forms to outside contractors, and then disclose whether they did or not. He said many do not want to bother with the extra chore and expense of issuing these forms, and skip it. If the small business owner then declares on her taxes that she was not required to issue 1099 forms, and she should have, it’s perjury, he said. At that point, the client is facing both penalties and possible criminal charges.
Got all that? In 2013, taxpayers and business owners can look forward to more IRS agents, more audits, and possibly criminal charges. If you’d like to learn more or if you are currently dealing with an IRS dispute and need help getting the IRS off your back, please get in touch with us today!
There are lots of great doctors in this country. But if you or a loved one is diagnosed with cancer, God forbid, you’re not going to visit just any doctor… are you?
Of course not. You’ll consult a specialist—specifically, an Oncologist. Because he or she is specially trained in treating cancer, and has years of experience doing exactly that. There’s nothing wrong with any of the other doctors around the country—it’s just that they don’t specialize in the service that you need.
The same is true when it comes to IRS problems.
There are thousands of fantastic lawyers and accountants across this country. However, very few of them specialize in representing clients who are facing IRS disputes, tax problems, or penalties. If you are facing IRS problems, it is essential that you contact an attorney who specializes in resolving your issue.
Unfortunately, too many taxpayers don’t realize that there is help available. And so they end up facing the IRS all alone. As you can imagine, this often leads to disaster. IRS agents are specifically trained and focused on one goal: extracting every penny that they claim is owed to them, as quickly as possible. If you have to close your business, sell your home, or declare bankruptcy in the process, tough luck for you.
But the truth is that you don’t have to face the IRS all alone. At IRSALLSTAR, our experienced tax professionals will personally work directly with you, and you’ll work with the same professionals throughout the process. We’re NOT a national chain of “tax resolution” offices. We’re a local, Gulf Coast law firm focusing exclusively on tax matters. We protect and defend our clients from tax collection efforts while developing and implementing their game plan for successful resolution. And when the other so-called tax specialists have fumbled the ball on your case, we’re especially glad to pick it up and run with it!
So if you are facing IRS problems don’t ignore the issue—and don’t choose a non-specialist to help you address it. Instead, pick up the phone and give us a call today. We’ll work hard to put your tax problems in the rear-view mirror… as quickly and painlessly as possible.
As if dealing with the IRS wasn’t enough of a headache, here’s something else that taxpayers and business owners must now consider: the IRS is willing to pay “whistleblowers” who report improper tax filings. That’s right—it could be your neighbor, a family member, or even an employee that contacts the IRS to report suspected fraud. If the IRS finds that they were correct, they’ll receive a reward. Forbes reports:
You’ve probably read about IRS whistleblowers cashing in for reporting suspected tax fraud. It may seem to be a new development, but IRS whistleblowing incentives started in 1867! Still, big changes in 2006 raised the stakes materially, adding new Section 7623(b).
Under it, awards to whistleblowers are no longer discretionary. Now, the whistleblower “shall” receive 15 to 30 percent of the collected proceeds. That’s shall, not may. But getting the money has proven nearly impossible.
There are many whistleblowers but few are getting money out of the process. The IRS created a Whistleblower Office reporting to the IRS Commissioner to implement the law. But progress is slow.
Senate Finance Committee Ranking Member Charles Grassley (R-Iowa) can’t understand why the IRS Whistleblower Office has been slow to process cases and make rewards. In this press release, he expresses disappointment. He’s not the only one. Claims aren’t the problem, says the feisty Senator from Iowa. But unpaid whistleblowers are demoralized and might stop coming forward, he asserts.
It’s ironic – our government is worried about “demoralizing” whistleblowers, but doesn’t seem to be concerned about demoralizing the business owners and private citizens that provide the revenue necessary to keep this company running. While everyone would agree that tax fraud is a problem, the reality is that a huge percentage of filing mistakes are due to complex and ever-changing tax laws—not intentional fraud. Perhaps the IRS would be better served simplifying and clarifying their requirements—rather than paying whistle-blowers and cracking down on taxpayers who have made innocent mistakes.
If you’re dealing with an IRS nightmare, you have probably learned by now that the Service isn’t particularly interested in your well being. But there’s good news—you aren’t helpless. Contact us today and let us help you take the first step towards freedom from your IRS problems!
As anyone who has been involved in an IRS dispute will tell you, the IRS has a huge number of “tools” at its disposal when it comes to collecting from taxpayers. Their efforts often cause extreme financial duress on the part of the taxpayer—often leading to emotional and physical stress as well.
In short, the IRS doesn’t just ask for your money—they’ll make your life miserable until they get it. If you are in the midst of an IRS dispute, it is essential that you are represented by a professional with experience dealing with the IRS
IRS Revenue Officers love it when they are assigned a taxpayer’s file and that taxpayer is unrepresented. Their “playbook” consists of much more intimidating and deceptive maneuvers when they are dealing with unrepresented taxpayers than when they are dealing with experienced tax professionals. Here at IRSALLSTAR we deal with the IRS and state departments of revenue every single day. We know what the law is and what a Revenue Officer can and can’t do when it comes to taxpayer collections. If a Revenue Officer or any other tax collection agent has you stressed-out, contact us to discuss all the benefits of being represented by an experienced tax professional.
It is important that you understand that the IRS won’t leave you alone—ignoring the problem will only make it worse. If you’re facing IRS problems, bring in a professional today.
Among the first thing that we do for our clients is to determine whether the IRS has the correct record of all your tax returns. Many taxpayers forget that the IRS makes mistakes just like everybody else. Don’t assume that just because you “filed” your tax return it was received and processed by the IRS. Each and every year tax returns are lost, not processed or even stolen! We’ll make sure that the data they have on you is correct.
If you owe money to the IRS, make no mistake—they’ll make your life miserable until they get it. But we can help. Contact us today and let us get the IRS off your back so that you can get back to enjoying your life!