Posts Tagged ‘irs help’

IRS ‘Help’ Center Gives Wrong Answers to Tax Questions

Monday, August 29th, 2011

If you’re looking for the best answers to questions regarding an IRS problem, who should you call?

1. The Local IRS Taxpayer Assistance Center 2. Your Accountant 3. A Qualified Attorney

If you answered “The Local IRS Taxpayer Assistance Center, you may be in for a rude awakening.  A qualified attorney is your very best choice in this situation.

In 2002, a study showed taxpayer assistance centers answer tax questions wrong 43% of the time. Between July and September 2002, the Department of the Treasury conducted a study where they had investigators posing as common taxpayers call IRS Taxpayer Assistance Centers for help.

Here are their eye-opening results:

Auditors were given correct answers 57% of the time. 45% of the questions were answered correctly AND completely. 12% of the questions were answered correctly, but incomplete.

Wrong answers were given 28% of the time. 12% of the time, questions were unanswered and taxpayers were told to do their own research. 3% of time, auditors could not get any assistance at all. Senate Finance Committee Chairman Charles Grassley, R-Iowa was quoted at the time saying “”The IRS’ failing grade here is unacceptable. It’s especially discouraging that the IRS is often getting wrong basic answers to questions about the Earned Income Tax Credit and the child credit, which benefit low-income taxpayers.”

You Need Professional Help Especially If You’re In Trouble With The IRS. It’s ridiculous that a taxpayer might not be able to count on getting a right answer from the IRS regarding tax questions, especially considering that the IRS is the agency that is charged with the task of enforcing tax laws.

However, you may find yourself in a position where you’re already past the point of needing help with your tax returns. Filing tax returns may not be the issue. The issue for you is: Maybe you haven’t filed at all…perhaps for 2 or 3 years or more. Maybe you’ve filed but haven’t paid the tax – and the IRS is sending you letters that are increasing in frequency and the language regarding collection is getting sterner. Maybe you know that on previous tax returns that you withheld or falsified information and you’re afraid of what will happen when you get caught. Maybe you’ve reached the point where the IRS has already placed a lien on your property, and you’re concerned that the next step is for them to garnish your wages, raid your bank account, and/or seize your property.

If you’re in any of these positions, you need to speak with a qualified attorney as soon as humanly possible. Ask yourself…if the IRS Taxpayer Assistance Center cannot correctly answer simple tax questions more than 57% of the time, do you think that they are going to be able to answer a question about a complicated matter such as a lien on your property…the Statue of Limitations…Bankruptcy…or other complicated legal matters? A qualified attorney is your very best choice in this  situation.

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Accountant…Attorney…or IRS Specialist?

Monday, August 1st, 2011

Let me ask you a question. If you had cancer, who would you want to see first?

a) Nobody. I’ll go it alone.

b) a Nurse

c) a Doctor

d) an Oncologist—

An Oncologist, right? Why? Because an Oncologist is a physician that specializes in the treatment of cancer.

Along that same line of thinking, let me ask you this. If you had a problem with the IRS, would you want to see:

a) Nobody. I’ll go it alone.

b) an Accountant

c) an Attorney

d) an Attorney who focuses solely on in solving IRS problems.

I think you can see the point I’m trying to make.

Going It Alone With Cancer…or the IRS By Yourself. If you had a serious sickness like cancer, you would realize that your time might be limited. You don’t have an idea how long it will be before the sickness takes over your body – possibly making treatment futile. Would you go it alone?

If you knew you had a deadly illness, would you take the chance that you’ll somehow get better all on your own? I doubt it. So why would you go it alone with the IRS? Don’t believe for a second that reading a couple books, a website, or a couple emails about “how to deal with the IRS” will prepare you to deal with the IRS if you owe them money.

These are people who make a career out of extracting money from people who owe taxes. They deal with it every day. They’re good at it. This is something you deal with once in a lifetime (hopefully). Face it – you’re not good at it.

These people are trained to act like your friend and make you comfortable…and then use it to get you to say something you’ll regret. You wouldn’t “go it alone” with a deadly disease – don’t go it alone with the IRS. An attorney who focuses on IRS problems is specifically trained to thoroughly research any previous tax ruling and use it to his client’s favor in a case against the IRS.

If there’s a loophole to be found in a previous tax ruling or many of the published IRS papers, a good attorney can use it to their client’s advantage and make the IRS work hard for their money.

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Can the IRS reach into your bank account?

Thursday, April 7th, 2011

Imagine mailing off a check for your mortgage payment and being notified by your bank that there are “insufficient funds”. In other words, your check bounced. In bewilderment you reply, “…That can’t be right. I know I had enough money in the account to cover that check…there must be some mistake…”

The IRS has seized the money in your bank account. The bank representative on the other line says “uh…hello…are you still there?” You manage to get out ”Um…yeah…I’m still here…uh…let me call you back” “What would you like us to do about the check?” they ask. “…um…I’ll take care of it…uh…just let me call you back”, you manage to get out before you hang up quickly.

Your mind starts racing, thinking about what other checks you wrote that are now going to bounce.  What else is the IRS going to do to you? Are they going to start dipping into your paycheck, too? Will they take your house, your car,…everything?

Don’t Think It Could Happen to You? Have you developed a false sense of security? Maybe the IRS placed a lien against your property as a “warning shot across the bow”, but you haven’t responded. Sure, the tax lien can ruin your credit and make it virtually impossible to sell your house, but it doesn’t necessarily put a damper on your day-to-day finances.

Besides, the fact is – a tax lien doesn’t necessarily give the IRS what they really want…the tax money you owe them. That’s when they start getting nasty…

The IRS Can Take Your Money If You Don’t Give It to Them Voluntarily. If you’ve been notified by the IRS either over the phone or by mail that you owe them, that’s all the warning you get.

If after contact, you don’t pay them completely and voluntarily – they have the right to take every penny that you owe from them…one way or another. They don’t have to take you to court or sue you to get their money. If they’ve sent the collection notices and you’ve refused to pay or haven’t paid in full – that’s all they need to do. That’s when it can get ugly.

They can dip straight into your bank account and take your money

They can garnish your wages or salary.

They can take your social security, 401(k) or IRA’s. They can take any money owed to you – like accounts receivable or sales commissions. Plus, they can seize your property: Cars / Boats / Motorcycles/ Homes / Vacation Property / Investment Property.

They’ll do it too. Consider this… from 2005 to 2006, levies increased by 36% Just ask Christopher Gronski of Rochester, New Hampshire. As the owner of a window-washing company, he sincerely does not believe that the IRS has the right to tax him.  But they still levied his bank account and took his money.

Don’t Let This Be You It’s Not Too Late – Yet. If you’ve already been contacted by the IRS, time is wasting. The countdown has begun and when the count is up…they’ll come for your money. You need serious help – it’s time to contact a professional.

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Why An Accountant Is A Bad Idea To Handle Your IRS Problem…

Friday, October 15th, 2010

What Accountants Do:  CPAs assist in tax preparation and planning, but they can also provide great tax advice and help business owners and individuals legally save thousands on their taxes……that is – if the business owner or individual actually files their taxes in the first place..

What Accountants Don’t Necessarily Do: Deal With IRS Problems. If you haven’t filed your taxes, or you’ve filed and you still owe back taxes to the IRS, you’re getting into territory that’s better handled by someone who deals with IRS problems on a regular basis.

Sure, an accountant can file late taxes for you, but even if he/she does, you’ll still have to deal with the realities of: (1)Penalties and Interest owed to the IRS for filing late, and (2)How (or if) you’re going to be able to pay the tax.

 A tax attorney is better prepared to help you in this situation. In fact, not only can our office prepare your late unfilled returns, but we may also be able to: (1) Negotiate a lessening of IRS penalties, (2)Negotiate a payment agreement, and (3)Represent you before the IRS without your presence. 

WARNING: Your Accountant May Be Forced to Testify Against You in Court. If you’re ever involved in a criminal trial with the IRS, your accountant may be forced to testify against you. If you hire an attorney instead of an accountant to take care of your tax problem, you would never have to hear those words…Only with an attorney do you have “Attorney-Client Privilege”.

 In other words, your lawyer doesn’t have to tell a criminal court anything that you’ve told them.  An accountant has no such authority.

Accountants are not qualified to advise about Bankruptcy.  One of the 6 methods available to you for getting out of debt with the IRS is Bankruptcy.  Although it’s an extreme way to alleviate the problem that certainly has its pros and cons, bankruptcy is still the best option for some people.  However, bankruptcy is a legal matter that should only be considered under the counsel of an attorney.   An accountant is not qualified to give legal advice any more than an attorney is qualified to give advice on balancing your books.

 You Wouldn’t Use a Hammer to Do The Job Of a Screwdriver…Would You?  IRS problems and “tax advice” are two different things.  If you have questions about how you should balance your books or interpret your company’s financial records, and a whole host of other financial questions – a CPA is your best bet.

 But when you’re talking about owing the IRS money and potentially getting hauled into court because of it – you’re dealing in legal territory…you need the help of an attorney.

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Who Would You Rather Owe… The IRS… Or a Credit Card Company?

Monday, July 19th, 2010

I don’t know your financial situation personally, but I would venture a guess that if you have problems paying the IRS…that you may have credit card debt problems as well.

So I certainly don’t mean to throw “fuel on the fire” of a debt problem by making the following suggestion, but I’ll throw it out there as an option and only you’ll know if it is a legitimate option for you.

Did you know that the IRS accepts Visa, Mastercard, & American Express?

With credit cards, according to the IRS website “you can pay current and past due Form 1040 balances along with current year Form 940 balances and current quarter plus the three prior quarters Form 941 balances.”

You may be thinking “isn’t paying the IRS with a credit card like robbing Peter to pay Paul?”

Not exactly.  First, you’re not “robbing Peter” in this scenario.  If you’ve been extended enough credit by your credit card company to pay off your IRS bill, it’s apparently because you have a good enough credit rating to justify the credit card company’s risk that you’ll pay the money back.

Now this is assuming that you tell the truth on your credit card application.  Remember…lying on a credit application is a criminal offense…don’t do it.

Now I’m not suggesting that you don’t pay your credit card bill.  But, if you’re unable to make your credit card payments, there are legal limits to what the credit card companies can do to get you to pay the money.  And “Paul” in this scenario (the IRS) has much more power than “Peter” (the credit card companies) does to get “his” money.

Think of it this way…a credit card company has nowhere near the power of the IRS to collect their money.  Not only can the IRS take your wages, but they can also take things like your real estate, Social Security, 401(k)’s, IRA’s, car, boat, house, accounts receivable, cash loan value of your life insurance, or commissions…to name just a few.

The IRS can also put a lien on your personal and investment properties, making it difficult to sell your house, destroy your credit rating and make it difficult to refinance or get a home equity loan.  Of course, the “big hammer” of the IRS is that they can actually send you to prison for not paying your taxes.

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Will I be Held Liable for my Spouse’s Misrepresentation?

Wednesday, July 14th, 2010

If a spouse (or ex-spouse) improperly reported joint taxes, will both parties be held liable for the tax, interest and penalties?

Thankfully, the IRS has a solution for this scenario.  It’s called the “Innocent Spouse Doctrine”.  The IRS website states that: “By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return.  Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse (or former spouse).  You must meet all of the following conditions to qualify for innocent spouse relief:

1.      You filed a joint return which has an understatement of tax due to erroneous items (defined below) of your spouse (or former spouse).

2.      You establish that at the time you signed the joint return you did not know, and had no reason to know, that there was an understatement of tax (See Actual Knowledge or Reason To Know, defined below).

3.      Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax.

Erroneous items are either of the following: 1) Unreported income.  This is any gross income item received by your spouse (or former spouse) that is not reported.  2) Incorrect deduction, credit, or basis.  This is any improper deduction, credit, or property basis claimed by your spouse (or former spouse).”

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Can The Local IRS Taxpayer Assistance Center Help Me with my IRS Problem?

Tuesday, June 15th, 2010

Between July and September 2002, the Department of the Treasury conducted a study where they had investigators posing as common taxpayers call the IRS Taxpayer Assistance Centers for help.

* Auditors were given correct answers 57% of the time

* 45% of the questions were answered correctly AND completely

* 12% of the questions were answered correctly, but incomplete

* Wrong answers were given 28% of the time

* 12% of the time, questions were unanswered and taxpayers were told to do their own research

* 3% of time, auditors could not get any assistance at all

It’s ridiculous that a taxpayer might not be able to count on getting a right answer from the IRS regarding tax questions, especially considering that the IRS is the agency that is charged with the task of enforcing tax laws.  Ask yourself … if the IRS Taxpayer Assistance Center cannot correctly answer simple tax questions more than 57% of the time, do you think that they are going to be able to answer a question about a complicated matter such as a lien on your property … the Statue of Limitations … bankruptcy … or other complicated legal matters?

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