Written by Scott Allen

taxdebtadvisors.com – IRS Myths…

Mesa AZ Help With IRS Myths

Many clients in Mesa AZ come in with strange ideas about what the IRS can and will do to them once they “catch up with them.”  Most of the information has come from  friends, family and work associates that are just passing on myths that they were told.

Two of the most common questions:

Am I going to be thrown in jail?  Over 99% of the clients we meet with are negligent not criminal.  Their tax problems are more like bad parking tickets not a hit and run.  As long as you are willing to file back tax returns and agree to a settlement on what you can pay on the back taxes and agree to pay your taxes in the future, the problem goes from a terrible crisis to something you can manage.  Close to 30% of our clients qualify to make no payment on their historical tax liability if they stay current on their filings and payments in the future.

Are they going to take my house or car?  The IRS wants money not assets.  If you are living in an expensive home, the IRS will allow you time to put the house up for sale and downsize into a reasonably priced home.  With the current housing crisis the IRS has extended the time from six months to a year and now they are agreeing to give even more time if the taxpayers are staying current on their taxes.

You cannot control what happens in life.  Most clients were faithful taxpayers until a death, divorce, illness, or a business failure put them in a situation where they could not pay their taxes.  Even the IRS understands that this happens.  The IRS is less tolerant with the failure to file tax returns.  The IRS primarily punishes because you don’t file, not because you don’t pay.  The penalty for failing to file is 5% per month, while the penalty for failing to pay is only ½% per month.  So it is initially ten times more expensive to not file than it is to not pay.

The reality is that most clients are surprised at the results we get.  Mostly because their imagination is mixed with a lot of Mesa AZ IRS myths that create a paranoid attitude towards what the government actually expects.  Why not come in and find out today what the your options are.  I have heard many clients say, “If I had know it was going to be this easy, I would have come in long ago.”

Scott Allen E. A.

www.taxdebtadvisors.com

 

Written by Scott Allen

taxdebtadvisors.com – What is a Collection Due Process Appeal?

The Collection Due Process Appeal is to provide you with a fair and impartial review of your IRS matter.  If you are unable to reach an acceptable agreement with a revenue officer on your tax debt, a Collection Due Process Appeal should be considered in every case. 

 Here is a summary of the benefits  of  a Collection Due Process Appeal: 

1)      An IRS Appeals Officer has more leeway and is easier to have a meeting of the minds with than a Collections representative.

2)      Appeals Officers are trained to get the dispute settled.  Collection representatives are basically bill collectors.

3)      Working with an Appeals Officer face to face gets better results than talking with someone on the phone from the Automated Collection System (ACS).  Frankly many ACS personnel are abused on the phone by angry taxpayers and if you call in after one has had a bad experience with someone on the phone they will take it out on you.  Most taxpayers act cordially in front of an Appeals Officer and they are inclined to give you the benefit of the doubt in most cases.

4)      You never know what someone at ACS will do.  They are not accountable since you will talk with a different person every time you call.  You are assigned to one person generally at the Appeals Office and they are much more accountable and reasonable.

5)      The Appeals Office knows that if they do not come to an agreement with you, that your next option is to take the matter to Tax Court.  The IRS wants to avoid at all costs clogging up the Tax Court by being unreasonable.  Personnel at ACS have a take it or leave it attitude and often they decide to take it.

6)      You can file a Collection Due Process Appeal after you have received an IRS Final Notice of Intent to Levy.  Your request should be filed within 30 days of the Final Notice.  If you file the Collection Due Process Appeal after 30 days, the IRS will still allow you to file an appeal, up to one year, but you lose the option of taking your case to Tax Court. 

Scott Allen E. A.

www.taxdebtadvisors.com

info@taxdebtadvisors.com