Written by Scott Allen

Does the IRS Offer One Time Forgiveness?

Does the IRS Offer One Time Forgiveness?

IRS One Time Forgiveness

Yes, the IRS does offers one time forgiveness, also known as an offer in compromise, the IRS’s debt relief program. Have tax debt and wondering if one time forgiveness can help? If so, this post should help! Read below about programs the IRS has to help resolve your tax debt and what Tax Debt Advisors can do to help you get it done easily.

Does The IRS Offer A Tax Debt Relief Program?

The short answer is “Yes“! At any given time, there are nearly 1 million U.S taxpayers that owe the IRS. Although the IRS attempts to collect every cent that taxpayers owe the government, the reality is that they just do not have the resources for pursuing every individual person in debt. However, IRS collections remains a very stressful situation.

The IRS has tax debt relief programs, like the Fresh Start Program, available that taxpayers can take advantage of when owing back taxes. These programs not only provide a little help towards taxpayers, but it lightens the IRS’s workload. You may not be required to pay the entire amount owed, good news right?

Tax Debt Forgiveness

There are commercials that come on late at night promising to get you out of debt with tax debt forgiveness, even when thousands are owed to the IRS. Although, the reality is there is no straight debt forgiveness program.

Although, depending on the criteria of your situation you may be able to wipe your tax debt, set up an offer in compromise or payback with an installment agreement. For instance, by law the IRS is unable to collect a debt older than 10 years. Therefore, if your tax debt is from over 10 years ago, it should be forgiven, as the government is not legally able to collect the debt.

In addition, the IRS typically does not collect a debt with a low Realistic Collection Potential (RCP). An account is stated to have low RCP if the following factors are true:

  • Low income amount
  • No way to make payments
  • No assets that can be sized or liquidated, such as real estate or bank accounts

If any of the above criteria are met, you may find that your account is marked RCP. Although this is not technically a debt forgiveness, the IRS simply does not attempt to collect the debt owed, usually.

Also, the Non-Collectable Status restricts the IRS from collecting a debt, similar to the RCP. What this means is, you do not have the assets or money available to pay the debt. This program was designed with the concept of providing taxpayers enough time to earn the money or get a higher income to pay on the debt.

Can The IRS Collect After 10 Years?

No“, once a non-collectible account reaches the 10-year mark, the debt can’t be collected. In some situations non-collectible status collides with the amount of time the IRS is able to legally collect the debt. Therefore, once a Non-Collectable account reaches the 10-year mark, the debt can no longer be demanded by the IRS.

Finally, when a taxpayer files for Chapter 7 bankruptcy, the IRS is unable to pursue a debt collection against the individual. Although rare, there are situations where bankruptcy allows for tax debt forgiveness.

The IRS cannot make contact with you or try to collect on a debt during a pending case. If a court rules a tax debt has to be forgiven, the IRS is no longer able to pursue future action against the past tax debt.

What Is The Fresh Start Program With The IRS?

The Fresh Start Program is a collection alternative that allows individuals and businesses, in most cases, to settle their tax debt for less than they owe. This makes it easier for back tax payers to settle their tax debt and get a fresh start. Although, the required criteria to get debt fully erased can be very time consuming and stringent. For those wanting to settle debts in a timelier manner, the IRS’ Fresh Start Program is an option.

Under the Fresh Start Program, the Partial Payment Installment Agreement option is the most used. With the PPIA you are allowed to setup an affordable payment plan for your account, which runs until the debt is fully paid or the debt account has reached the 10-year mark.

IRS Fresh Start Program Qualifications

  • Must be unemployed for 30 consecutive days
  • If you are filing a joint return, you/spouse must meet 1 of the qualifications
  • Self-employed individuals with a drop in income of 25% or more
  • Tax debt must be less than $50,000

Read more about IRS Fresh Start Qualifications

Offer In Compromise Allows To Negotiate With The IRS

Another option you may also choose to pursue an Offer in Compromise, which enables you to settle a debt. The following factors are used to determine if an account qualifies:

  • Are in compliance with IRS
  • Owe new debt
  • Cannot or have no intention to file for Chapter 7 bankruptcy
  • Never turned down for OIC before

You can use the IRS website to file for an Offer In Compromise, or have a tax professional like Tax Debt Advisors assist you with the process. You can check the IRS website to see if your qualify for OIC

The IRS acknowledges that they are unable to collect every amount of a delinquent account, with nearly a million taxpayers owing a debt. You have the potential for having your debt reduced, or possibly erased with one of the several debt relief programs available.

Installment Agreements Allow You To Set Up A Payment Plan

Most of the time the IRS will allow you to set up an installment agreement in order to pay back your tax debt over time. The terms of your payback agreement are determined by your budget to pay each month, how much you own and your previous filing history. 

Before you accept any repayment plan, make sure that you can afford to pay it on time, every time. Late payments or missing payments can get your agreement canceled and you will have to start over again. You can only get installment agreement if you own less than $50,000 in 2017 and the maximum payback period is 6 years. 

IRS Fresh Start Program Reviews

Scott Allen at Tax Debt Advisors Inc. has successfully represented me for the last 5 years. He has completely held the IRS off and successfully negotiated on my behalf. He is also done my tax returns at a very reasonable price saving me even more money. I highly recommend Scott and his highly capable staff! Bob R

Scott Allen is a true professional that can work for you to resolve your tax issues with integrity, knowledge and experience. I came to Scott after working for years with other tax professionals and listening way too much to the advice of family and acquaintances. During my initial meeting with Scott we were able to establish a plan to effectively resolve the tax debt that I had. Scott treated me with respect and understanding of my situation while detailing what works versus the falsehoods so many profess. Scott also performed within the time frame that I required. I am so satisfied with Scott’s work that he now handles all of my annual tax returns going forward. Robert M

Have Your Debt Reduced Today With Tax Debt Advisors

Need help with wiping out your old tax debt? Tax Debt Advisors has helped resolve over 108,000 debts. Receive a tax debt consultation today by giving Scott a call today at 480-926-9300. Tax Debt Advisors can help negotiate an offer in compromise on your behalf to finally settle your tax debt. 

Written by Scott Allen

File back taxes Mesa AZ and save $726,680

File back taxes Mesa AZ

Can you file back taxes Mesa AZ and save $726,680? Well, maybe not. But, for this client he did. Scott Allen EA of Tax Debt Advisors represented this taxpayer and protested the IRS’s ruling. Don’t just take our word for it. View the actual IRS notices below and see the tax savings accomplished.

File Back Taxes Mesa AZ

File Back Taxes Mesa AZ

If you have to file back taxes it is important to start off on the right foot. The right representation will get a signed IRS power of attorney from you to be able to defend you before them. The right representation will all be able to prepare all unfiled tax returns for you. And lastly, the right representation will be able to negotiate an IRS settlement for you once you are in compliance. You will want to be able to accomplish all of this with the same person that you can meet with locally.

This is exactly what Scott Allen EA offers. He can handle your IRS matter from beginning to end. He is highly trained to prepare any back tax returns that you may be behind on. If the IRS has filed SFR returns in your behalf get Scott Allen EA on the case to challenge the ruling for you. He is here to get you the “Victory” you deserve before the IRS. He will not give you any false hope or promises; only the truth you need to here to get the best possible result. His office is located in Mesa AZ @ 3155 E Southern Ave #101 85204.

File Back Taxes Mesa AZ

File Back Taxes Mesa AZ

 

 

 

 

 

 

 

 

 

 

 

 

 

October 2018 Case Update

Lisa had a tax problem. She had to file back taxes Mesa and needed to settle it. As you can see from her settlement agreement notice below she settled several years taxes into one agreement. Upon a financial analysis and negotiation process Scott Allen EA settled the IRS debt into a currently non collectible status.

File Back Taxes Mesa

To learn more about what a currently non collectible status is and how you may or may not qualify for it speak with Scott Allen EA today. He is available to take your call.

 

Written by Scott Allen

IRS Tax Attorney in Arizona: When should I NOT use an attorney?

IRS Tax Attorney in Arizona: When should I NOT use an attorney?

Tax Attorney Phoenix | Mesa, Tempe, Chandler Scottsdale

If you are searching for “tax attorney“, “tax lawyer“, “IRS tax lawyer“, “IRS attorney“, “tax attorneys“, “IRS tax attorney“, “tax attorney near me” or “best tax attorney” in PhoenixMesaChandlerGilbert, Tempe or Scottsdale, Arizona, Scott Allen E. A. from Tax Debt Advisors can help!

Even the best tax lawyers & attorneys can’t compare to what Scott Allen E. A. can offer to help settle your problems with the IRS. First of all, lets take a look at what a tax attorney does.

What Is A Tax Attorney?

A tax attorney is a layer who specializes in tax law. They can help solve legal, technical and complex problems with the IRS.

What Does A Tax Attorney Do?

A tax attorney solves legal, technical and complex problems with the IRS. Tax attorneys can also help with:

  • Filing appeals of tax court decisions
  • Communication with the IRS
  • Help businesses save money
  • Help people take advantage of tax credits

However, these are all things a tax debt advisor could do for less money! Read more about why you need a tax debt advisor instead of hiring a tax attorney.

Can A Tax Attorney Really Help?

Yes, a tax attorney can really help if you want to pay more money for the same services a tax debt advisor can do for cheaper.

Why You Should I Tax Debt Advisor Vs. Hiring a Tax Attorney?

Tax Debt Advisors have great experience in settling debts with the IRS. Choosing a tax debt advisor instead of a tax attorney offers many benefits including:

  • More affordable services
  • Tax attorney typically charge 100-400% more for the same services a tax debt advisor could do
  • Tax debt advisors don’t use fear tactics to make you think the situation is wose than it is
  • Settle debt faster with simple tax debt solutions

We are not a tax attorney firm, rather, a tax debt specialist with expert knowledge in tax law that can help you solve complicated IRS problems & tax debt issues that would normally require a tax lawyer.  Contact Scott Allen with Tax Debt Advisors, Inc. 480-926-9300 to help you get right with the IRS today! Don’t hire a tax attorney! Instead, why not hire an affordable Tax Debt Advisor who has been helping customers dealing with tax issues since 1977, and has helped solve over 108,000 tax debts.

Why Hire A Tax Attorney In Arizona?

Believe it or not, you actually don’t have to hire a tax attorney in Arizona when dealing with the IRS. Instead why not hire a Tax Debt Advisor who can do the same thing as a tax lawyer and who has been helping customers dealing with tax issues since 1977. Scott Allen E.A. from Tax Debt Advisors has helped over 108,000 people settle their problems with the IRS and can help guide you through any tax situation you may be dealing with, including:

Why You Don’t Need A Tax Attorney

Here are the reasons of why you don’t need a tax attorney:

  • If you are making a decision full of fear and think you need a tax attorney for other than criminal or fraudulently filed returns, you will be seriously disappointed.  Attorneys are able to generate income by perpetuating fear.  Most of our clients who started with an attorney and switched to us mentioned always being intimidated with fear that something bad would happen if… and that if always is followed by another big retainer fee.
  • IRS resolution work is not rocket science.  It is common sense work that improves over time because of relationships established with the IRS and understanding their idiosyncrasies.  Attorneys will often scare clients into thinking that their legal training is necessary for a successful resolution.
  • Many clients think that they will get what they pay for and base the quality of the work on the amount they pay.  In most cases, an attorney will charge anywhere from 25% to over 400% more for the same exact service.  If you go for a consultation with an attorney consider getting a second opinion by calling me for a free initial consultation.  I love these appointments.

When To Hire A Tax Attorney?

A Tax debt advisor can help with almost everything a tax attorney can except criminal charges. If the IRS is pursuing criminal charges against you, you will need to hire a tax attorney.  Tax fraud and tax evasion are 2 of the most common reasons for an IRS investigation. IRS investigations are serious: 80% of defendants that go through a criminal investigation are sentenced to prison. This is one situation where a tax debt advisor cannot help you, you will have to hire a tax attorney.

Why You Should Hire An Enrolled Agent Vs. Hiring A Tax Attorney

View our recent blog postWhen is a IRS tax attorney in Phoeonix necessary and when isn’t it?

1. Your tax problems might not be that bad – It doesn’t take a tax lawyer or rocket scientist to work with the IRS. Furthermore, legal training isn’t a necessity to handle most tax issues. Also, tax attorney’s will try to scare you into thinking that legal representation is necessary. That is not true! Let Tax Debt Advisors help solve your tax problems without instilling fear or requesting huge retainer fees for our services.

2. Get a 2nd Opinion – Some tax customers think that paying a higher fee will give them a higher quality services. That is false! Tax attorney commonly charge 400% more for the same services a tax debt expert can handle. There is literally no difference in the process besides you paying more money. We are not saying it is a bad idea to talk to a tax attorney but you should get a second opinion as well. At Tax Debt Advisors we offer free tax consultations.

3. Don’t Make A Decision Based On Fear – Do you think you need a tax attorney because you filed fraudulent tax returns, you might be disappointed. Tax lawyers generate income based off of fear. Most of our tax clients started with a tax attorney, only to find out that they try to intimidate you into thinking you have a bigger tax problem than you do. And, that’s almost always followed by a big retainer fee.

Feel Confident With Experienced Tax Representation

When I have looked back over the years, the one common factor in bad decision making on my part, is when I was overly influence due to fear.  I love the quote from one of the Star Wars movies that explains how Anakin became the evil Darth Vader—the quote, “It was fear that pushed me to the dark side.”  If you have already had a consultation with an attorney ask yourself one question, “Did he reduce my level of fear or just use it to get what he or she wanted?”  A good representative will always leave you feeling better, not fearful.  A great representative will focus on the 99% that can go right and the wrong ones will focus on the 1% that almost never happens.  When you are trying to decide if you need representation from an attorney consider taking the time to get a second opinion from me.  I know you will be glad you did!

Schedule A Free Tax Consultation In Arizona

Schedule your free tax consultation with Tax Debt Advisors today by giving us a call today at 480-926-9300

5 Star Review: “Scott is professional and real. He looks out for me and is so thorough. He waived an IRS penalty for me that a different accountant said couldn’t be waived. And it was so simple. He is so kind and really works with you. I now have multiple family members who use him and each of us all love him!” Rebecca O.

Our Service area includes: 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, Arizona. 

Written by Scott Allen

Do I Need To File Taxes in 2017-2018?

Do I Need To File Taxes in 2018-2018

If you are searching for “do i need to file taxes 2017” or “do i need to file taxes 2018“, this post should help! Everyone is not required to file their taxes every year. Generally, one’s total income for the entire year has not exceeded the amount of their standard deduction, with one exemption, and they are not a dependent of another tax payer. So, if you can claim yourself under the above requirements you may not have to file a tax return every year. It depends on the yearly income that one’s has earned, the type of that income, their age, and their filing status, as to whether or not they would have to file any taxes for that year.

The gross income thresholds

Anyone who pays taxes and files a return can claim the standard deduction and they can also claim one other person as an exemption, as long as that person is not being claimed by someone else. The amounts of the standard tax and the exempt get fixed by the government every year by the time the tax season comes around and it is also taken care of for any increases due to inflation every year as well.

You Do Not Need To File Taxes If Your Income Doesn’t Exceed Your Standard Deduction

The IRS does not require anyone to file a tax return in the years that their income does not exceed their standard deduction, including any exemptions that they might be able to take. In other words, if their income is equal to or less than their standard deduction plus exemptions they do not have to file for that year. Tax exempt income is not included when trying to determine if you need to file or not. For instance, in the year of 2017, those who were under the age of 65 and they were single, would have to file their tax return if they made over $10,400 and over, that is how much the standard deduction was for that year for a single taxpayer, including one exemption.

The income thresholds for those 65 and over

Anyone who is at least 65 years of age and is receiving Social Security income must go by the filing requirements the same as those who are still working. Although, those on Social Security can usually receive more income than working tax payers before they having to file a return. With the exception of those who are married and file separate returns. If this is the case, they would have included their Social Security income to evaluate their gross income will exceed the standard deduction, including one exemption. Additionally, should the IRS require someone to pay taxes on a portion of their Social Security income on account of their other income be too much, they would have to calculate that taxable amount, no matter what their filing status or marital status is.

Tax filings for dependent filers

Taxpayers that are claimed as a dependent on another taxpayer’s return will be subject to a different set of IRS filing requirements, whether they be a child or an adult. Dependent taxpayers are unable to claim themselves as an exemption, it makes it necessary for them to file a tax return when their income is equal to or more than their standard deduction (for single filers), which in the year of 2017 the standard deduction was $6,350 dollars. The dependents threshold on their income decreases over $1,050 for unearned income, like dividends and interest.

Claiming your tax refunds

Even on the years that a person would not have to file a return they might want to think again. The only way to receive a refund is to file a tax return for those who have federal taxes withheld out of their paychecks. For instance, a single taxpayer that earned $2,500 throughout the year, and they had $300 of that withheld for their federal tax, they would be entitled a refund for all of the $300 because their earnings were less than their standard deduction and an exemption. The IRS will not just automatically send anyone a refund, they would first have to file a tax return.

You Need To File A Back Tax Return If You Haven’t Filed Already

If you are reading this article, you have already missed the date to file your taxes on time. You can always file a back tax return with the IRS. If you are not sure how to do this, Tax Debt Advisors can help! We help tax payers file back tax returns in Phoenix, Gilbert, Scottsdale, Mesa and other areas in the Valley.

Tax Debt Advisors Can Help With Back Tax Returns & More


If you need to file back tax returns, having problems with the IRS or just need a great tax advisor, schedule your free tax consultation with Tax Debt Advisors today by giving us a call today at 480-926-9300.

Written by Scott Allen

2017 Arizona Tax Credits: Qualifying Charities

2017 Arizona Tax Credits for qualifying charities

Are you interested in making a charitable donation to lower your Arizona and IRS tax bills? There are many 2017 Arizona tax credits available for you. Remember to qualify for the credits you have to file an Arizona tax return and have an Arizona tax liability. A taxpayer can only receive a credit up to the amount of their total state tax liability.

There are two Arizona tax credits that will be mentioned in this blog.

  1. Qualifying Charitable Organization ($400 max credit for single or head of household taxpayers, $800 for married filing joint taxpayers). Click here to view the entire list of available organizations to contribute to.
  2. Qualifying Foster Care Organization ($500 max credit for single or head of household taxpayers, $1,000 for married filing joint taxpayers). Click here to view the entire list of available organizations to contribute to.

Don’t forget you can also contribute to public and private schools and receive an Arizona tax credit as well. Talk with a local tax professional and make sure you take advantage of these opportunities to lower your tax bill along with helping out the local community. It also gets better: the amount you contribute to these charitable organizations can also be an itemized deduction on your IRS tax return.

Scott Allen EA is a local tax professional who specializes in tax preparation for individuals. If you are looking for a new tax preparer meet with Scott Allen EA today to discuss you tax situation and get ready for the upcoming tax season.

Tax Debt Advisors Mesa - Scott Allen

Written by Scott Allen

Tax Preparation in Phoenix AZ

Where to go for Tax Preparation in Phoenix AZ ?

There are hundreds of options for tax preparation in Phoenix AZ; but only a small fraction of those are options for back tax preparation.  Scott Allen EA of Tax Debt Advisors is a premier choice when it comes to back tax preparation.  His company, that he purchased from his father 10 years ago has been specializing in just that for 41 years now. If you are behind on your tax filings whether you have your records or not, meet with Scott Allen EA today. He can guide you step by step during the entire process. View the image below to see a recent success he had for his client Frank. Some might not even bother to try and fix an issue dating back to 2004 but upon proper research within the IRS it was determined that we could in fact prepare the back tax return and actually have the IRS refund money back to the taxpayer. What could you do with over $6,000 of your own money that the IRS owed you?

 

Tax Preparation in Phoenix AZ

Tax Preparation in Phoenix AZ

With Tax Debt Advisors you will explore all available option when it comes to tax preparation in Phoenix AZ. Don’t delay as options can become limited the more time that passes.

Written by Scott Allen

Tax Refund Less Than Expected In Mesa, AZ

Tax Refund Less Than Expected In Mesa, AZ

Are you searching the internet for “Tax Refund Less Than Expected” in Mesa, AZ or in any of the sourounding Phoenix Valley? If so, your probably wondering why your tax refund is less than you though it was going to be. The information on this page should help provide you with some understanding. Furthermore, if after reading you think that you are still entitled to the full refund, do not hesitate to give Scott at Tax Debt Advisors a call today 480-926-9300.

It is very frustrating to think you are receiving a certain number of dollars back in your refund just to be let down when it comes. This does not account for the amount you wish you were getting back, but the amount you were planning on after filing your taxes. However, there are many different reasons that this might happen, and it does happen to a lot of tax payer’s every year, creating confusing and making them frustrated.

Why The Government Takes Portions Of Tax Refunds

The government will take money from your refund for certain debts owed, such as Student loans, HUD loans, Child Support, delinquent taxes, debts to federal agencies (non-taxed), and many other obligated debts, which will reduce the amount of your refund.  They will even take out any monies you may owe for fraudulent compensation from unemployment. So, if you have a refund coming from the federal government be warned that they will take what you owe out.

The Financial Management Service (FMS) of the Treasury Department are the ones who issue the tax refunds from your federal income, however, Congress has given authorization for a Treasury offset Program, this allows the Financial Management Service the right to take out any of your refund needed for paying these delinquent debts.

Reasons Your Tax Refund Might Be Less Than Expected:

  • All types of federal taxes you may owe.
  • Child support that is past due.
  • Non-tax debts to federal agencies, such as Student loans.
  • States taxes past due, local taxes past due, and even library fines that are past due.

You will receive a letter explaining the offset whenever your federal refund has been reduced or use up completely. Anytime that run into your refund being delayed or reduced, you may contact the FMS at (800) 304-3107 to get additional information. If your delinquent debts do not take all of your refund due you will still receive the balance of it in the matter in which you requested originally, either via deposit or by mail.

Married Filing Jointly

If you are married filing jointly and only one of you are actually responsible for the debt of the FMS collection, the IRS has special process that will allow part of the refund to still be processed for the one that isn’t responsible for the debt. In order to get a share of a refund which has been reported to the FMS for collection, you will need to complete the IRS Form 8379 (Injured Spouse Allocation), it lets the tax payer that is not responsible for the debt a chance to provide the needed information to the IRS and they will determine what step to take next with the tax refund.

The form can either be filed when the taxes are initially filed (if you know in advance that there will be an offset for a debt) on Form 8379, or it can be filed after the refund has been reduced by the offset or completely eliminated by the Offset Program. If you have an Installment Agreement request with the Internal Revenue Service, the FMS is going to intercept your refund and apply it to the principal balance owed on your tax debt. Unless this offset pays off the entire debt, you will still be responsible to continue your agreed on monthly payments to the IRS.

Call The IRS

In any case, if you do not receive the amount of tax refund you expected or it did not come at all, by all means, you should call and check on it. However, there will probably be a good reason for this, and the reduced amount may be correct, but, it is also possible that it was an error of some sort, something else could have happen to it and it ended up in the wrong hands, or misused, and could have even been stolen.

It is important that you act quickly and find out, to ensure that the amounts that were removed or offset will get settled and everything is accurate. The best place to begin this process would be with whoever prepared your tax return, as they will be able to work with you throughout the process to make sure you get back what is due you.

Make An Appointment With Tax Debt Advisors

If you still think that you are entitled to the full tax refund or don’t want to contact the IRS yourself, do not hesitate to give Scott at Tax Debt Advisors a call today 480-926-9300.

Written by Scott Allen

How To Make Unfiled Tax Returns Okay with IRS

help-with-filing-back-unfiled-tax-returns-in-mesa

When you get backed up on filing taxes, it can be a scary journey of doubt and questions regarding how to make things right again with the IRS. Luckily there are some steps that you can take to make sure the IRS is satisfied and you get back in the system.

10 ways to correct unfiled returns and get back on track:

  1. In many cases, it is required by the IRS for the past six years of tax returns be filed to indicate that you are compliant and current. To reference, Internal Revenue Manual 4.12.1.3. and the IRS Policy Statement 5-133. Making sure the previous six years of tax returns are filed is the starting point.
  2. Collect your records. It is significant that you do your best to gather all of your records for the years that were not filed. The records may include W2’s or 1099s that was received for work, interest, mortgage interest paid, stock sales or dividends. If you are missing records, don’t stress over it, you are just starting.
  3. You will supplement your records by securing internal IRS transcripts which indicate what was reported to the IRS. This is going to offer you a comprehensive list of all W2’s and 1099s that you received. This will be used for cross-checking with your records to discover anything that may be missing.
  4. IRS transcripts are simply the checking point. If there are amounts of income earned that does not appear on these transcripts, you should do your best to figure out the income and add it to the return.
  5. If you’re self-employed, business income as well as expenses should be figured out. There are several methods available for putting together the income, including total bank deposits or 1099s that report to the IRS (supplemented using income that was not reported). By going backwards, you can discover what was spent on living costs (housing, food, auto expense, utilities, etc.) and you can cross reference that with your income records using the presumption you earned at least the amount you spent and saved.
  6. Prior to preparing returns, you should conduct a financial review to discover how any taxes may or may not be repaid to the IRS. Dealing with unfiled tax returns is a twostep process. First, you must get everything prepared and filed. Second, you must negotiate solutions for balances due to the IRS collections. Doing this involves conducting a review of your current income, property, debts and living expenses. Once doing this, it is commonly found the amount owed for unfiled returns simply cannot be repaid, which may result in being qualified for a compromise offer, or you could be considered to be in financial hardship. In these cases, the debt amount owed to the IRS collection is put on forbearance (also called uncollectible). Bankruptcy may eventually wipe out tax debt as well.If you are unable to pay either way, taking the time to collect every possible business expense for your returns could be a useful effort if you are going to owe more than you can pay with or without receipts. If this is the case, you may be best off to file “gross” return, where you list the income amount and leave out the expenses, simply focus on solutions for collections.
  7. In the event that you are married, and only one spouse brought in an income, you should strongly consider having the spouse that developed the liability to file separately. By filing separately, it can put limitations on who the IRS is able to collect from, which can protect the innocent spouse.
  8. If you had been employed and received wages that had taxes withheld, you may find that you do not owe anything to the IRS. The amount withheld from your wages, along with other types of deductions (such as mortgage interest) will factor into this.Only balances due will incur penalties and interest charges by the IRS. Therefore, if you do not owe them, there are no penalties. Also, if you were due a refund, you may even receive those for the past three years of tax returns. However, if you have any balances rom other years, the refund will first be applied to those balances.
  9. There are times that the IRS will actually file a return for you in the event you do not file. In IRS terms, this is referred to as a Substitute for Return or an SFR. However, it is common for the IRS SFR’s to get things wrong, which can end up charging you for reported income on 1099s and W2s, but not providing any exemptions or deductions. You might have even received a bill due to the IRS substitute for Return. If this is the case, the estimated returns can also be corrected to lower the taxes, you just have to file an original tax return.
  10. If you have the option, you should hand file the unfiled returns using an IRS walk-in center. You will need to have an extra copy for the IRS to stamp as proof that you filed. If you’re working through an IRS Revenue Officer, you need to file directly through that person. The process can take several months once filed with the IRS, you should keep an eye out for billing notices in the mail which show the returns were processed by the IRS and that you’re now in the system again. If any balance is owed, the following step will be finding solutions to the balance due, which often consists of an installment agreement, compromise, uncollectible or bankruptcy.

You are able to become current on unfiled tax returns and get yourself back into the system using these steps. You should have the same goal the IRS has, getting your returns filed and providing financial disclosures so you reach a solution for any owed balances.

Tax Return Problems Solved

Tax Debt Advisors is here to help with any tax return problem you may be experiencing with the IRS. We have helped settle over 108,000 tax debt to date. Call us today at 480-926-9300 to get professional help in dealing with tax return issues and the IRS.

Written by Scott Allen

IRS problem work in Mesa Arizona

IRS problem work in Mesa AZ at its best.  Click here for more info.

Last week I got a call from a potential new client here in the Phoenix AZ area.  His question to me was: “I have my refund check from 1984 for $1500 and I need to get in contact with the IRS to cash it.  Where do I go to get that done? Can you help me?”

I didn’t know how to answer the question at first.  I thought maybe he meant to say 2014 or 2004 IRS refund check.  The IRS has a statute of limitations on refunds and payments made to the IRS.  They have at least since I started doing tax return work here in Mesa Arizona.  Refunds are only good from 3 years past the due date of the tax return.  If a tax extension was filed then the 3 year rules would start from that due date.  There isn’t must that can be protested or challenged on this rule unless you can determine or prove that the IRS did something wrong on their end.  Lets say you make a payment to the IRS but do not get around to filing the tax return 5 years later.  That payment will offset any tax liability owed but if a refund is due you will not see the net difference as that payment is held to a 2 year statute on that.  The best advice I can give my new and current IRS problem and tax preparation clients in Mesa AZ is to always file by the deadlines even if you do not have the money to pay the taxes.  90% of the penalties come from not filing; not from not paying.  Payment arrangements and other options are available to pay back the tax debt owed.  To see the different settlement option below please visit my website at www.taxdebtadvisors.com.  My office is here in Mesa AZ and we are a local family company that files back taxes and settle IRS debts.  Call Scott Allen EA today at 480-926-9300 for a free consultation.

Written by Scott Allen

1040x Amended Tax Return filing in Mesa AZ

Scott Allen EA gets frequent phone calls every years of taxpayers in Mesa AZ who prepared or filed their tax return but left off information by mistake.  The only option to correct that issue is to prepare and file a Mesa AZ amended tax return.  Scott Allen EA has experience preparing IRS and AZ amended tax returns by using IRS form 1040x and 140x for Arizona.

What does he need to accurately get your IRS amended tax return prepared:  A complete copy of your federal and state that was originally filed along with the new information to add (or take away) to the return.  If you no longer have a copy of the original filing, with a Power of Attorney authorization we could get that copy directly from the IRS for you.  Amended tax returns cannot be e-filed.  The IRS and state requires them to be mailed in.  With preparing your amended tax return in Mesa AZ Scott Allen EA will give you self addressed envelopes to mail your new tax returns.  Amended tax returns typically take anywhere from 6-10 weeks to get processed so you do have to exercise some patience in the matter.

If you think you may need to get an amended tax return prepared and are in Mesa AZ give Scott Allen EA a call for a free evaluation.

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