Right?

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!

Fairhope, Ala. – May 20, 2013 – Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently published an article on his website (http://www.irsallstar.com) discussing the IRS.  The article, titled “IRS and Department of Labor to Crack Down on ‘Improper’ Use of Independent Contractors” offers advice for business owners.

John Willis writes, “Many businesses today use independent contractors in addition to, or even instead of, traditional employees. There are many situations in which this arrangement makes sense and is valuable to both parties. However, lately the IRS and the Department of Labor have begun to take a closer look at these arrangements.”

John Willis is the CEO and founding attorney of JOHN P. WILLIS, IV, PC, the powerhouse firm behind IRSALLSTAR.com. His law firm focuses exclusively on helping individual taxpayers and businesses solve serious tax problems. The firm is committed to providing every client the highest possible level of professional service, legal protection, and personal attention.

Mr. Willis founded his law firm in 2002 with the vision of providing excellent, results-driven representation in a relaxed, casual environment. His championship team of experienced tax professionals strives to achieve one goal: tax resolution that produces the best possible outcome for each client. The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.

The entire article can be found at http://www.irsallstar.com/articles/irs-and-department-of-labor-to-crack-down-on-improper-use-of-independent-contractors.php

To learn more about Mr. Willis and his law firm please visit http://www.IRSALLSTAR.com or call toll-free 877-254-4254.

More about John Willis:

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 14 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

Born and raised in New Orleans, Mr. Willis currently lives in Daphne, Alabama, on the Eastern Shore of Mobile Bay with his wife, Miriam, and their daughters, Worth and Jane Perry, and considers the entire Gulf Coast his home. He is admitted to practice before the US Tax Court and can represent taxpayers from anywhere in the United States before the IRS. Mr. Willis is a member of the Alabama State Bar and the Florida Bar and he is admitted to practice before the United States Courts of Appeal for the 6th and 11th Circuits and the United States District Courts for the Middle and Northern Districts of Alabama. His law firm, JOHN P. WILLIS, IV, PC, is located in the heart of downtown Fairhope, Alabama.

Does your workforce include “contract laborers”, “freelancers”, “casual workers”, “contract employees”, or independent contractors by any other name?  If so, then you will want to pay attention to the increasing possibility of claims provoked by treating workers as non-employees under applicable wage-hour laws, particularly under the federal Fair Labor Standards Act and other, analogous federal provisions.

One of the highest priorities at the U.S. Labor Department is to identify situations in which workers are erroneously considered not to be employees or other covered individuals for purposes of complying with minimum-wage, overtime, and recordkeeping requirements and child-labor restrictions of the FLSA and similar federal wage laws it enforces.  The agency calls this its Misclassification Initiative, and these efforts have resulted in significant liability, such as:

• A consent judgment for $1.3 million against a nationwide provider of directory assistance and other information services that supplied its services through workers whom it considered to be independent contractors;
• A $105,000 overtime assessment against a Texas employer that had considered workers to be independent contractors for their first 90 days with the company;
• A $101,000 demand against a Virginia employer that had considered individuals performing work on a government-funded construction contract to be independent contractors or to be subcontractors.

Many other USDOL misclassification investigations are underway across the country.  Moreover, USDOL has entered into alliances to promote enforcement and information-sharing with the U.S. Internal Revenue Service and with officials in 14 states (so far).

As you can see, these misclassifications can be very expensive. But what does the government consider while determining the proper status of a worker? Below are several criteria:

The extent to which the person’s work is controlled by the alleged employer;

Whether and to what extent the individual has any investment in the necessary facilities, equipment, supplies, etc.;

Whether and to what extent the individual has opportunities for profit or loss in a business sense;

The extent to which the person uses any initiative, judgment, or foresight from an entrepreneurial standpoint;

Whether the relationship is permanent or indefinite, as opposed to being temporary or for a definite duration;

If you own a business and utilize independent contractors, it is important that you pay attention. Improperly classifying your workforce could be a very expensive mistake. If you’d like to learn more, or if you’d like guidance determining the best course of action for your specific situation, we would be glad to help.

And if it’s too late, and you already find yourself engaged in a dispute with the IRS, we can help resolve the matter. Give us a call today!

Fairhope, Ala. – April 26, 2013 – Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently published an article on his website (http://www.irsallstar.com) discussing the IRS audit process.  The article, titled “IRS Tax Disputes: What to do If You’re Audited” provides practical advice for taxpayers.

John Willis writes, “And while it is true that facing an IRS audit can be stressful and time-consuming, there is no reason to panic.”

John Willis is the CEO and founding attorney of JOHN P. WILLIS, IV, PC, the powerhouse firm behind IRSALLSTAR.com. His law firm focuses exclusively on helping individual taxpayers and businesses solve serious tax problems. The firm is committed to providing every client the highest possible level of professional service, legal protection, and personal attention.

Mr. Willis founded his law firm in 2002 with the vision of providing excellent, results-driven representation in a relaxed, casual environment. His championship team of experienced tax professionals strives to achieve one goal: tax resolution that produces the best possible outcome for each client. The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.

The entire article can be found at http://www.irsallstar.com/articles/irs-tax-disputes-what-to-do-if-youre-audited.php

To learn more about Mr. Willis and his law firm please visit http://www.IRSALLSTAR.com or call toll-free 877-254-4254.

More about John Willis:

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 14 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

Born and raised in New Orleans, Mr. Willis currently lives in Daphne, Alabama, on the Eastern Shore of Mobile Bay with his wife, Miriam, and their daughters, Worth and Jane Perry, and considers the entire Gulf Coast his home. He is admitted to practice before the US Tax Court and can represent taxpayers from anywhere in the United States before the IRS. Mr. Willis is a member of the Alabama State Bar and the Florida Bar and he is admitted to practice before the United States Courts of Appeal for the 6th and 11th Circuits and the United States District Courts for the Middle and Northern Districts of Alabama. His law firm, JOHN P. WILLIS, IV, PC, is located in the heart of downtown Fairhope, Alabama.

But now that the returns have been filed, there is another concern that often weighs heavily on the minds of taxpayers—the fear of being selected for an IRS audit.

And while it is true that facing an IRS audit can be stressful and time-consuming, there is no reason to panic. In fact, if you’re prepared and if you have “played by the rules”, an IRS audit can be quite painless. Below are three tips to help you prepare for an audit should you be selected to do so, courtesy of a recent CNN.com article:

Know what to expect.

Envisioning a visit from a suit-clad IRS agent with a briefcase? That’s not usually how an audit plays out. The vast majority, or 76%, are correspondence audits, meaning the IRS requests information by mail instead of questioning a taxpayer in person.

These tend to focus on specific items on a return — like itemized deductions for medical expenses — and simply ask for documentation, said John Lieberman, CPA at Perelson Weiner LLP. In-person field audits are broader inquiries about a tax return and often involve verifying income, he said.

In either case, you’ll likely receive a notification by mail explaining which parts of your return the IRS has questions about.

Don’t ignore the letter.

Shoving the letter you get from the IRS in a drawer and pretending it’s not there won’t make it go away. You’re usually given 30 days to respond, so make sure to write back promptly or certain items may be disallowed or automatically corrected. The IRS will then begin collecting on any extra tax it believes you owe.

Get documentation together.

Once you find out what parts of your tax return are in question, you should start collecting any relevant paperwork.  The rule of thumb is to keep tax-related documents for three years from the date a return was filed. If you can’t find the documentation you need in your files, you can usually get another copy elsewhere. If you’re missing the bill for a medical expense you claimed, for example, you can contact your doctor’s office. If you donated money to a charity but lost your receipt, the charity will probably be able to send you a duplicate.

As you can see, the name of the game when it comes to managing an IRS audit really is documentation. If you’ve kept careful records, you usually have nothing to worry about. But even if your record keeping is less than perfect, don’t panic. In many cases, it is relatively easily to track down the necessary paperwork. The key is to be prepared, and most importantly, not to simply ignore the process. Many taxpayers become almost “paralyzed” with fear and simply ignore correspondence from the IRS. This is never the right approach. If you’re facing an IRS audit (or any other tax dispute), we would be glad to help you resolve it. Please contact us today!

Fairhope, Ala. – April 18, 2013 – Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently published a blog on his website (http://www.irsallstar.com) discussing tax strategy for business owners.  The blog, titled “Five Tax Tips for Business Owners and the Self-Employed” offers practical suggestions for his readers.

John Willis writes, “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.”

John Willis is the CEO and founding attorney of JOHN P. WILLIS, IV, PC, the powerhouse firm behind IRSALLSTAR.com. His law firm focuses exclusively on helping individual taxpayers and businesses solve serious tax problems. The firm is committed to providing every client the highest possible level of professional service, legal protection, and personal attention.

Mr. Willis founded his law firm in 2002 with the vision of providing excellent, results-driven representation in a relaxed, casual environment. His championship team of experienced tax professionals strives to achieve one goal: tax resolution that produces the best possible outcome for each client. The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.

The entire blog can be found at http://www.irsallstar.com/blog/five-tax-tips-for-business-owners-and-the-self-employed.php

To learn more about Mr. Willis and his law firm please visit http://www.IRSALLSTAR.com or call toll-free 877-254-4254.

More about John Willis:

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 14 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

Born and raised in New Orleans, Mr. Willis currently lives in Daphne, Alabama, on the Eastern Shore of Mobile Bay with his wife, Miriam, and their daughters, Worth and Jane Perry, and considers the entire Gulf Coast his home. He is admitted to practice before the US Tax Court and can represent taxpayers from anywhere in the United States before the IRS. Mr. Willis is a member of the Alabama State Bar and the Florida Bar and he is admitted to practice before the United States Courts of Appeal for the 6th and 11th Circuits and the United States District Courts for the Middle and Northern Districts of Alabama. His law firm, JOHN P. WILLIS, IV, PC, is located in the heart of downtown Fairhope, Alabama.

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!

Fairhope, Ala. – March 28, 2013 – Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently published a blog on his website (http://www.irsallstar.com) discussing tax preparation.  The blog, titled “Filing Your Taxes Soon? These IRS Tips Will Help” offers three practical tips for taxpayers.

John Willis writes, “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.”

John Willis is the CEO and founding attorney of JOHN P. WILLIS, IV, PC, the powerhouse firm behind IRSALLSTAR.com. His law firm focuses exclusively on helping individual taxpayers and businesses solve serious tax problems. The firm is committed to providing every client the highest possible level of professional service, legal protection, and personal attention.

Mr. Willis founded his law firm in 2002 with the vision of providing excellent, results-driven representation in a relaxed, casual environment. His championship team of experienced tax professionals strives to achieve one goal: tax resolution that produces the best possible outcome for each client. The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.

The entire blog can be found at http://www.irsallstar.com/blog/filing-your-taxes-soon-these-irs-tips-will-help.php

To learn more about Mr. Willis and his law firm please visit http://www.IRSALLSTAR.com or call toll-free 877-254-4254.

More about John Willis:

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 14 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

Born and raised in New Orleans, Mr. Willis currently lives in Daphne, Alabama, on the Eastern Shore of Mobile Bay with his wife, Miriam, and their daughters, Worth and Jane Perry, and considers the entire Gulf Coast his home. He is admitted to practice before the US Tax Court and can represent taxpayers from anywhere in the United States before the IRS. Mr. Willis is a member of the Alabama State Bar and the Florida Bar and he is admitted to practice before the United States Courts of Appeal for the 6th and 11th Circuits and the United States District Courts for the Middle and Northern Districts of Alabama. His law firm, JOHN P. WILLIS, IV, PC, is located in the heart of downtown Fairhope, Alabama.

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!

Fairhope, Ala. – March 20, 2013 – Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently published an article on his website (http://www.irsallstar.com) discussing IRS disputes.  The article, titled “IRS Tax Controversy: ‘World Series of Poker’ Champion Faces Tax Dispute” highlights poker champion Jerry Yang’s run-in with the agency.

John Willis writes, “Mr. Yang was the winner of the 2007 World Series of Poker main event. But despite that massive payday, he ran into trouble over the past couple of years and has now seen his Main Event bracelet seized by the IRS.”

John Willis is the CEO and founding attorney of JOHN P. WILLIS, IV, PC, the powerhouse firm behind IRSALLSTAR.com. His law firm focuses exclusively on helping individual taxpayers and businesses solve serious tax problems. The firm is committed to providing every client the highest possible level of professional service, legal protection, and personal attention.

Mr. Willis founded his law firm in 2002 with the vision of providing excellent, results-driven representation in a relaxed, casual environment. His championship team of experienced tax professionals strives to achieve one goal: tax resolution that produces the best possible outcome for each client. The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.

The entire article can be found at http://www.irsallstar.com/articles/irs-tax-controversy-world-series-of-poker-champion-faces-tax-dispute.php

To learn more about Mr. Willis and his law firm please visit http://www.IRSALLSTAR.com or call toll-free 877-254-4254.

More about John Willis:

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 14 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

Born and raised in New Orleans, Mr. Willis currently lives in Daphne, Alabama, on the Eastern Shore of Mobile Bay with his wife, Miriam, and their daughters, Worth and Jane Perry, and considers the entire Gulf Coast his home. He is admitted to practice before the US Tax Court and can represent taxpayers from anywhere in the United States before the IRS. Mr. Willis is a member of the Alabama State Bar and the Florida Bar and he is admitted to practice before the United States Courts of Appeal for the 6th and 11th Circuits and the United States District Courts for the Middle and Northern Districts of Alabama. His law firm, JOHN P. WILLIS, IV, PC, is located in the heart of downtown Fairhope, Alabama.