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Written by Scott Allen

IRS tax help for the Arizona Construction Industry

Arizona IRS Tax Help

There is only on germ or virus is more contagious than any other to the construction industry—that is virus of bad IRS advice pass amount your own peers.  If you want accurate information that you can rely on get it from a professional in another field that specializes in that subject.

Most construction professionals get into trouble with the IRS due to bad advice, especially in the areas of independent contractor/employee issues, the structuring of their business, and what they can take as business and personal deductions, and the lack of making no estimated tax payments towards current year tax liabilities or claiming exempt on their W-2 withholdings.

We can help Arizona construction industry professionals in the following specialties:

Electricians, Concrete Workers, Plumbers, Roofer, Dry Wall and Plaster Workers, Architects, Inspectors, Project Managers, Landscapers, Painters, Glazers, Framers, Tile and Flooring Workers. 

Why is the IRS making the construction industry a target for IRS audits?  First, is the lack of filing tax returns.  The construction industry has the lowest compliance rate among all the professions.  Second, lack of making tax payments in the form of estimated taxes or having withholdings on W-2’s wages.  Employers in the construction industry typically want to pay their workers as if there were independent contractors.  Hence, no withholdings are being paid by the employers and the workers fail to pay estimated taxes.

If you receive a notice of being audited by the IRS—take it very seriously, get professional help.  If one year has significant changes that produce additional revenue to the IRS, it is highly probably that the audit will be expanded to other years.  The IRS knows that bad practices regarding IRS matters are very contagious in the construction community.  Call me today for a free initial confidential consultation.

Scott Allen E. A. – Tax Debt Advisors, Inc

IRS tax help for the Arizona Construction Industry from Tax Debt Advisors, Inc

Mesa, Apache Junction, Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Komatke, Litchfield Park, Luke AFB, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Sun Lakes, Surprise, Tempe, Tolleson, Waddell, Whitman, Wickenburg, Youngstown, Flagstaff, Tucson, Payson, Winslow, Sierra Vista, Page, Prescott, Globe, Yuma, Lake Havasu City, Kingman

 

BACK TAX RETURNS, IRS Help By Profession, Tax Debt, Tax Levy, Tax Preparation
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Regular Post
Written by Scott Allen

How to avoid an IRS audit in Arizona? IRS help from Tax Debt Advisors, Inc

 Avoid IRS Audit for Arizona Residents

  • Use a tax program.  Manually prepared returns are pieces of paper begging for attention.
  • Don’t believe all the advice that shows up on the internet and news shows during tax filing season.  Some of the advice I have heard would actually increase the likelihood of being audited.
  • Extend the filing of your return.  I have yet to have a client come in for an audit that filed a return right before the October 15th deadline.  Of course the return has to be filed correctly.
  • Report all income that the IRS knows about.  That would include all W-2’s, 1099’s and K-1’s—especially the ones that your thought were not going to be reported to the IRS.
  • Avoid the home office deduction.  I have literally had to charge some clients more for the preparation of this tax form than the benefit they were getting.  The home office deduction is rarely worth the tax savings and the risk of an audit.  If you have a home office deduction that amount to $1,000 and you are in a 15% tax bracket the savings is only $150.

But if you do get audited, get professional help.  It will pay for itself each year you file in the future and minimize your exposure for the year or years being audited.

Scott Allen E. A. – Tax Debt Advisors, Inc.

How to avoid an IRS audit in Arizona?  IRS help from Tax Debt Advisors, Inc

Mesa, Apache Junction, Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Komatke, Litchfield Park, Luke AFB, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Sun Lakes, Surprise, Tempe, Tolleson, Waddell, Whitman, Wickenburg, Youngstown, Flagstaff, Tucson, Payson, Winslow, Sierra Vista, Page, Prescott, Globe, Yuma

 

IRS Problems, IRS Tax Audits, Tax Preparation, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

Why am I being audited by the IRS in Arizona: IRS help from Tax Debt Advisors, Inc

Why am I being audited by the IRS

The most common reasons include:

  • If you are self employed and deal in cash such as restaurants, hair salons and contractors, you are in a high risk of audit situation.  The obvious reason—it is easy to put the money in your pocket and not report it on your return.
  • If you make large cash deposits into your bank account.
  • If you claim deductions that are almost as much as your reported income.
  • If you leave off of your return income that was reported to the IRS including     W-2’s, 1099”s, and K-1’s.
  • Unusually high charitable donations, especially those that are household items that are often overvalued.
  • Math errors on your tax return.  Using a computer program will avoid the math errors that go unnoticed on a paper return filled out and mailed in on April 14.
  • If you are using a tax preparer that the IRS has discovered was overstating deductions and generating large refunds.  In most cases, clients coming to us for this reason were actually aware of the practice but chose to ignore it believing that they would not be audited and that the IRS would not hold them accountable for all the interest and penalties and additional taxes if caught.

Use some common sense here and consider the agony that a bad audit will cause you financially and perhaps professionally and with your marriage.  This is probably the main reason why so many taxpayers are filing for innocent spouse protection.  One spouse, usually the husband is filing joint returns that if audited are going to result in large tax debts.  Bad returns are ticking time bombs.  The danger is that when the first one is not audited the taxpayer will becomes more bold and continue the practice in the following years and takes greater and greater risks until the IRS knocks on their door.

Scott Allen E. A. – Tax Debt Advisors, Inc.

Why am I being audited by the IRS in Arizona:  IRS help from Tax Debt Advisors, Inc

Mesa, Apache Junction, Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Komatke, Litchfield Park, Luke AFB, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Sun Lakes, Surprise, Tempe, Tolleson, Waddell, Whitman, Wickenburg, Youngstown, Flagstaff, Tucson, Payson, Winslow, Sierra Vista, Page, Prescott, Globe, Yuma

 

IRS Appeals, IRS Problems, IRS Tax Audits, Tax Preparation
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Regular Post
Written by Scott Allen

I was audited by the IRS in Arizona months ago and have not heard from them. IRS help from Tax Debt Advisors, Inc

Audited by IRS in Arizona

I was audited by the IRS months ago and have not heard from them.  What should I do? 

  • The longer it takes the IRS to get back to you the more likely your audit assessment slipped through the cracks.  Often IRS personnel are reassigned to other duties and their case load is dropped by the person reassigned to handle your case.
  • However, sometimes just when you think you are safe the audit assessment will show up and when this happens it is almost always much worst that what you expected.  Why?  The lazy auditor has lost the paperwork and when their manager jumps on them to finalize the audit; they disallow everything that was presented just to close the audit.  If this has happened to you call me right now—there is a silver lining waiting for you when I take this case to Appeals.
  • If your audit is not completed, I suggest that you not file your next return until you are certain that the audit has been closed out.  I would not go beyond the extension period of six months however as that alone may trigger a new audit.  This is a judgment call that you should get professional advice.
  • If you know that the auditor is just sitting on your case, it is best to make a call to the manager to get the audit completed.  Sometimes this will cause the auditor to accept the grey areas of the audit as a matter of expediting the audit and moving on to other cases.

Take audits very seriously.  Use a professional in most cases.  An error in judgment on your part may cause the Auditor to open up other tax years for an audit.

Scott Allen E. A. – Tax Debt Advisors, Inc.

I was audited by the IRS in Arizona months ago and have not heard from them.  IRS help from Tax Debt Advisors, Inc

Mesa, Apache Junction, Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Komatke, Litchfield Park, Luke AFB, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Sun Lakes, Surprise, Tempe, Tolleson, Waddell, Whitman, Wickenburg, Youngstown, Flagstaff, Tucson, Payson, Winslow, Sierra Vista, Page, Prescott, Globe, Yuma

 

IRS Appeals, IRS Problems, IRS Tax Attorney, IRS Tax Audits
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Regular Post
Written by Scott Allen

IRS tax audit strategies in Arizona. IRS help from Tax Debt Advisors, Inc

 Arizona IRS Tax Audit Strategies

  • Avoid having the audit at your home.  We suggest to our clients to have the audit conducted at our office.
  • After consulting with a professional make the decision to extend the audit or not.  If an extension is requested before the dead line and you have reasonable cause, it is not a mark against you.  However, to miss an appointment that you previously extended will be a large a “red flag” as you can find.
  • Be cordial during the audit but not overly friendly.  Leave the talking to your advisor unless specifically questioned directly by the auditor.  When you answer the question do it in the fewest words that conveys the correct answer.  Look the auditor in the eyes and if you need some time before answering the question—take the time.  If you know you don’t know the answer, tell the auditor you don’t know, write down the question and ask the auditor when you can get back with the answer.
  • Allow for disagreements.  You will eventually get what you expect if you never get mad or angry.  An angry taxpayer is usually wrong.  If you cannot handle your emotions, let your representative do the talking.  Auditors know that they are creating a stressful situation and their training teaches them how to benefit from that stress taxpayers feel.
  • If you are a sole proprietor filing a schedule C on your return we recommend that you put your business in an LLC and then get IRS approval to have your LLC taxed as a Subchapter S Corporation.  I can discuss with you the tax benefits as well as the audit benefits during a consultation at my office.

Scott Allen E. A. – Tax Debt Advisors, Inc.

IRS tax audit strategies in Arizona.  IRS help from Tax Debt Advisors, Inc

Mesa, Apache Junction, Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Komatke, Litchfield Park, Luke AFB, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Sun Lakes, Surprise, Tempe, Tolleson, Waddell, Whitman, Wickenburg, Youngstown, Flagstaff, Tucson, Payson, Winslow, Sierra Vista, Page, Prescott, Globe, Yuma

 

IRS help by state, IRS Problems, IRS Tax Audits, IRS Wage Garnishment
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How long does the IRS have to collect taxes on an SFR or Substitute for Return? From Tax Debt Advisors, Inc.

IRS Substitute for Return

The normal period of time for the IRS to collect on a tax debt is 10 years.  However, the time does not start until an assessment has been made.  For example, if the IRS did a substitute for return for the year 2013 in 2018, the 10 year period would end in 2028, not 2023.  The date of assessment is not when you signed or mailed in the return, it is when the IRS posts the tax liability which can be several weeks or months later.  There are actions you can take that will extend the time period know as the Statute of Limitations.  These include filing a bankruptcy, Offer in Compromise, signing a waver, etc.  Taxpayers are allowed to file back tax returns any time after the IRS files an SFR tax return to lower the tax liability but the process can take up to a year to get it accepted.  If you file a return that is over three years past the due date including extensions, and no payments have been made within two years, the IRS will not pay a refund.  Call today for a free confidential consultation.

Scott Allen, E.A. – Tax Debt Advisors, Inc helping with back tax return problems

www.TaxDebtAdvisors.com

 

BACK TAX RETURNS, IRS Problems, Offer In Compromise
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Regular Post
Written by Scott Allen

How does the IRS file substitute tax returns? From Tax Debt Advisors, Inc.

IRS File Substitute Tax Returns (SFR)

The IRS SFR (Substitute For Return) unit will match all income reported to your social security number including W-2’s, K-1’s, 1099’s, etc.  If you last return filed was a joint return, the IRS will file an SFR as married filing separate which will put you in a higher tax bracket.  You will not be given credit for any dependents, or deductions.  Many clients avoid filing back tax returns because they have lost or never received due to a move records needed to file a return.  I am able to retrieve all the records that were report to the IRS.  Once those are available, you will be better able to locate records that will reduce your tax liability along with interest and penalties.  The hardest part is making the decision to get started.  Call me today for a free confidential initial consultation. I will be your IRS Power of Attorney representation from beginning to end.

Scott Allen, E.A. – Tax Debt Advisors, Inc helping Arizona taxpayers with SFR representation

www.TaxDebtAdvisors.com

 

BACK TAX RETURNS, IRS Appeals, IRS Problems, Tax Debt
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Regular Post
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How long before the IRS discovers I have unfiled tax returns? From Tax Debt Advisors, Inc.

“I have unfiled tax returns…”

It may take several years before the IRS will contact you regarding unfiled tax returns.  However this works against you.  The interest and penalties on unfiled returns can double the amount you owe in just a few years.  As time goes by many records that can reduce your liability have been lost.  Your memory of what happened several years ago will fade and you will likely pay much more on your taxes if you had filed returns sooner.  Many clients miss one year and when nothing happens another year goes by and then another.  Before you know it six or seven years has passed and your tax problem will be getting more difficult to deal with each deadline missed.  There is also a serious psychological burden carried when you have unfiled tax returns.  You know that a day of reckoning will come and decisions that can be made are postponed and opportunities will be permanently lost.  Time is never on your side when you have unfiled tax returns.  By filing returns on time even if you do not have the money to pay taxes owed is far better than not filing and taking on additional penalties and interest.  Call me today for a free confidential initial consultation to get started.

 Scott Allen, E.A. – Tax Debt Advisors, Inc for unfiled tax returns in Arizona

www.TaxDebtAdvisors.com

 

BACK TAX RETURNS, IRS Problems, Tax Preparation, Unfiled Tax Returns
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What will IRS do when they find out I have not filed back tax returns? From Tax Debt Advisors, Inc.

Back Tax Returns in Phoenix AZ

Eventually, the IRS will compare income reported by 3rd party payers and match them against your social security number and prepare substitute tax returns if you have unfiled back tax returns in Phoenix AZ.  These returns allow the IRS to take action against you like liens, levies and garnishments.  Substitute returns give no credit for any deductions or cost basis which will greatly overstate the tax as well as the interest and penalties for late filing.  The IRS doesn’t punish for non-payment (1/2% per month) as much as for non-filing (5% per month).   Consider not filing back tax returns in Phoenix AZ like ignoring dealing with cancer—time will only make it worse.  The time to face non filing is now.  You will have more time to gather important tax information if you file on your own before the IRS knocks on your door.  Recently the IRS has demanded tax returns to be filed in as little as three days to avoid levies on bank accounts or garnishment of wages.   Call me for a free confidential initial consultation to determine the best way to get your back tax returns in Phoenix AZ filed and settled.

Scott Allen, E.A. – Tax Debt Advisors, Inc always helping with back tax returns in Phoenix AZ

www.ScottAllenEA.com

 

 

BACK TAX RETURNS, IRS Problems, Tax Levy, Unfiled Tax Returns
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Written by Scott Allen

How many years do I need to file delinquent returns? From Tax Debt Advisors, Inc.

File Delinquent Tax Returns Tempe AZ

This period has varied over the last 44 years.  It has been as many as 10 years and as short as 6 years plus the current year.  We will determine though discussions with the IRS how many years they requesting if we are working with an Agent.  If we are dealing with the Automated Collection System and you have income that has been reported to the IRS, this information is kept on their computers for 10 years and they may require you to file back tax returns for all of them.

Scott Allen, E.A. – Tax Debt Advisors, Inc helps file delinquent tax returns Tempe AZ

www.TaxDebtAdvisors.com

 

 

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