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 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!