Written by Scott Allen

10 Things to Remember When You Owe the IRS

10 Things To Remember When You Owe The IRS

The Restructuring and Reform Bill of 1998 for the IRS was a law that really put respect for the taxpayers back into the system. It forces the IRS to actually communicate with the public and grant due process rights to the taxpayers.

Below are 10 things to remember when you owe the IRS

When the IRS comes to collect, eventually you will have to face the music. If you begin to play games with a tax collector, the system has been designed to make your life horrible. Below are some important things to remember when you owe the IRS:

1. Don’t Ignore the IRS notices.

Most people will get into more trouble than bargained for just because they ignored the notices from the IRS. Some IRS notices are sent through certified mail, if you believe that you can ignore the notices by not going to pick them up, then you are wrong. Respond to the IRS each time.

2. The IRS has to explain your rights during your IRS interview.

The IRS Collection Process that was revised in 2015 states that you have the right to be represented and you have the right to be treated in a courteous and professional manner. If you don’t like how you are being treated, then you can stop that interview and ask to talk to a supervisor.

3. Before going to the IRS, spend time with a tax expert or accountant

This may be the best time that you have spent in a while. An expert will let you know how you could prepare to meet for a tax interview, how you should act, and make you aware when a revenue officer is trying to take advantage of you. Just remember the Revenue officers job is to collect money for the government. Furthermore, hiring professional bookkeeping and accounting services can help you avoid ever having problems with the IRS in the first place.

4. Never go to the IRS alone.

Collection interviews aren’t fun and you need representation. Chances are that you will have better results if you have representation.

5. The IRS isn’t Infallible.

The IRS was actually audited by the General Accounting Office and it looks like the IRS needs a bit of cleaning up. Often times, the IRS can’t track how much you actually owe, especially if you have been making regular payments. The IRS can make mistakes, so don’t take their word for everything.

6. You have due process.

The IRS can’t just take your home, bank account, business, car, or even do wage garnishes without making sure that they have given you a notice or an opportunity to challenge the IRS. When you challenge the IRS, everything stops.

You can take the IRS to court and they can’t collect until the judge makes a decision. You can tie their hands for years. The IRS isn’t going to tell you what to do or how you can protect yourself.

7. You are a possible innocent spouse.

Are you separated, widowed or divorced? Do you have tax issues that came from any former spouse? You may state yes, then you could get relief for being an innocent spouse. This could cause your whole tax bill being wrote off.  There are states that offer this as well.

8. If you don’t pay, you won’t go to jail.

No one will go to jail for owing taxes. You can go to jail for cheating on your taxes and you can go to jail for tricking a tax collector, but you can’t go to jail because you owe the IRS and your unable to pay.

9. You have options when you owe the IRS.

People who owe taxes whether to their state or the IRS, will have options. If you owe and can pay in full, then do so. However, if you can’t pay in full, 4 options may be for you:

  • Hardship suspension. This allows the IRS to temporarily leave you alone. Your account will be reviewed over time and even though the IRS leaves you alone, interest is accruing on the account is compounded daily.
  • Installment payments. The IRS will let you may monthly payments. The IRS will want the bill paid off in 3 years. You will need to fill out a financial statement and pursue a bank loan. Interest will accrue and is compounded daily.
  • It isn’t for everyone, but sometimes you could discharge your tax bill with Chapter 7 bankruptcy. Other chapters let you pay the bill off with monthly payments with no interest or little interest. Bankruptcy rules are complicated so talk to an attorney who understands tax and bankruptcy laws.
  • Offer in compromise. The IRS will accept the payment of a smaller sum for a large tax debt. Some states have similar procedures. If you do this and its accepted, all of your tax liens will be removed and you can start over. You need to talk to an attorney who specializes in tax laws.

10. Respect the tax collector power.

IRS tax collectors have more power than most in the federal government. They have very little rules. They can make life easy or miserable. Most success when dealing with a tax collector is done with communication in a prompt manner. They can do these items if you don’t pay your taxes:

  • Levy your bank account
  • Close your business
  • File a tax lien against you
  • Garnish your wages
  • Damage employment and business relationships
  • Seize and sell your home
  • Put you in a monthly payment plan that is too high
  • Assess you personally for corporate employment taxes
  • Go after third party transferees
  • Contact your friends, bankers, neighbors, and any relationship for business about tax liabilities.

Get started on your taxes with a free legal evaluation from Tax Debt Advisors

Tax Debt Advisors Mesa - Scott Allen

If you happen to owe taxes to the IRS and are unsure of how to pay it, you will want to have professional assistance. A tax debt advisor may help to find a plan that works for you and your budget, while making sure that proper procedures are followed. Start today by having your situation evaluated by a local tax expert for free. If you would like a free tax evaluation, Give Scott from Tax Debt Advisors a call today at 480-926-9300.

Our service area includes Phoenix East Valley Cities including: Mesa, Tempe, Chandler, Gilbert, Tempe and more.

Written by Scott Allen

Tax Attorney Chandler

Tax Attorney Chandler AZ

Are you searching for “Tax Attorney Chandler” while looking for someone to help you fix your tax troubles with the IRS? First of all, you don’t actually need a tax attorney to fix your tax problems with the IRS, you just need someone experienced in tax debt and tax law. Tax Debt Advisors Inc has been handling tax debts in Arizona since 1977. Help get things straight with the IRS by calling Scott Allen at Tax Debit Advisors, Inc. today at 480-926-9300 to help you get right with the IRS today!

Common Reasons To Hire A Tax Attorney

Below are the most common reasons to hire a tax attorney. Although, these are also services provided by Tax Debt Advisors Inc. Tax Debt Advisors can help with:

  • Income tax audits
  • Property tax issues
  • Offers-in-Compromise
  • Business Tax Issues
  • Installment Agreements
  • IRS Liens & Tax Levies
  • Tax Audit Defense
  • and more

When you are handling issues with the IRS, hiring a tax attorney is not actually required. However, by hiring a Tax Debt Advisor, you will get help from someone dealing with tax issues for over 41 years. If you have found yourself in trouble, Scott Allen can help guide you through any tax situation.

Why You Don’t Need A Tax Attorney

Here are the reasons and warning signs of why you don’t need a tax attorney.

Here are the warning signs:

  • If you are considering a tax attorney out of fear, and your situation is not caused by fraudulent or criminally filed returns, you’ll be greatly disappointed. Your fear allows attorneys to generate income. Many clients that began using our services after using a tax attorney often mention they were intimidated that something bad ‘could happen if…’. This ‘if’ is followed with large retainer fees, every time.
  • The IRS resolution work is easier to understand than most think, in most cases it is common sense. Having an established relationship improves the understanding with idiosyncrasies. It is common attorneys to use your fear to scare your more, while making you believe it is necessary to pay for their legal training to be successful.
  • Another common factor is clients believing they get what they pay for, and comparing the amount paid to the quality of service. In many situations, attorney’s charge between 25% and 400% or more for the same services. If you do consult a tax attorney, you should consider obtaining a second opinion by calling our office for a free consultation.

Feel Confident With Experienced Tax Representation

When looking back over the years, one of the most common factors we notice in poor decision making were those that allowed fear to influence their decision. There is a quote from a Star Wars movie that I have grown to love, as it explains how Anakin became Darth Vader – “It was fear which pushed me to the dark side.”

If you’ve already had an initial consultation with a tax attorney, the first thing you should do is ask yourself “Did they lower my fear, or use it to benefit their profits?” Good representatives leave clients feeling better about their situation, not scared. Great representatives pay attention to the 99% of positive scenarios, things that can go right. Poor representatives focus on the 1% of negative scenarios which rarely occur. When you are considering a representative, take the time to give me a call and get a second opinion, I know you will be glad.

Free Tax Consultations | Do You Really Need A Tax Attorney?

“Tax Debt Advisors handled my tax issues, which included several years of tax returns with IRS issues. The back tax returns were processed quickly with no additional problems or delays. Scott managed every aspect of the IRS problem with ease. Thanks again Scott!” Stacy P

If you are worried about your IRS tax problems and think you need a tax attorney to represent you, give us a call first. This is an important decision to make that requires the experience and knowledge of a highly skilled Enrolled Agent. Scott Allen EA can be that choice for you. There is a great chance that you don’t need legal representation for your tax problems. Our tax debt advisors can help you solve those same tax problems for less money. To schedule you free tax consultation in Chandler to find out if you actually need a Phoenix tax attorney or not, give us a call today at 480-926-9300.

Written by Scott Allen

IRS Audit Tempe AZ: Find help here

IRS Audit Tempe AZ help: Don’t delay the process

Being an American citizen we all will get audited at least once during our working years. If you are prepared; you should not have any fear. Dealing with an IRS audit Tempe should be more of an inconvenience then it is fearful.  Scott Allen EA can help with that “fear factor” by making the audit process as convenient as possible for you. What is meant by the word convenient? By giving him an IRS power of attorney he can represent you by speaking and negotiating to the IRS directly for you.  By allowing him this authority your fear level will drop.

Below is just a small example of how Scott Allen EA of Tax Debt Advisors helped in a IRS audit Tempe for a current client.  About a year after Liz filed and received her refund for tax year 2013 she received a proposed bill in the mail from the IRS for just over $1,000. This proposed bill came from information reported to the IRS that was not reported on her original filing.  In 2013 she was forgiven of some debt by a creditor.  This is a taxable event in most cases.  Upon discussion Scott determined that Liz should not have to pay taxes on the debt forgiveness because she qualified to exclude it from income based upon an insolvency test. If a taxpayer is insolvent they are not required to pay taxes on forgiven debt up to that amount. It still has to be reported on her taxes; just as non taxable. Scott protested the IRS’s assessment of the tax with proper explanation and tax forms to justify it and got the proposed tax bill completely reduced to zero.

IRS Audit Tempe AZ

IRS Audit Tempe AZ

Don’t go at an IRS audit Tempe alone. Meet with Scott Allen EA for a free evaluation of your tax matter whether it be an audit, unfiled tax returns, or settling back IRS debt.

Written by Scott Allen

Tax Attorney Phoenix

Tax Attorney Phoenix | Tax Debt Advisors

Looking for tax attorney services in Phoenix? Believe it or not, you don’t actually need a tax attorney to represent you before the IRS. Instead, why not hire a Tax Debt Advisor who has been helping customers dealing with tax issues since 1977, and has helped solve over 108,000 tax debts.

Scott Allen is a tax debt advisor that can help you solve multiple tax issues without ever needing to contact a tax lawyer. Scott is a enrolled agent (EA), that is licensed by the federal government to represent you as a tax payer before the IRS.

If you are facing an IRS bank levy or wage garnishment, an Enrolled Agent can help you solve these tax issues the same way a Phoenix tax attorney can.

Tax Attorney Services Provided By Our Enrolled Agents

Scott helps Phoenix residents solve a variety of tax issues including, but not limited to:

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

View our most recent blog post “When is a Phoenix AZ IRS tax attorney necessary and when isn’t it?“

Your tax issues may not be as bad as you think – It doesn’t take a rocket scientist or tax lawyer to work with the IRS. Legal training is not necessary to handle most tax problems. Although, tax attorney will scare you into thinking the representation is necessary. Let Tax Debt Advisors help you solve your tax problems without the fear or the huge retainer fees.

To Get a Second Opinion – Most tax clients think they will get a higher quality service if they pay more money. However, that is not true. Tax attorney can charge up to 400% more money for the same service a tax debt advisor can perform. If you are already speaking with a tax attorney, get a second option as well. We offer free tax issue consultations.

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.

Free Tax Issue Consultations | Do You Really Need A Tax Attorney?

“Tax Debt Advisors handled my tax issues, which included several years of tax returns with IRS issues. The back tax returns were processed quickly with no additional problems or delays. Scott managed every aspect of the IRS problem with ease. Thanks again Scott!” Stacy P

If you are worried about your tax problems and think you need a tax attorney, give us a call first. This is an important decision that requires the opinion of a highly skilled Enrolled Agent. Scott Allen EA can be that choice for you. You may not need legal representation for problems our tax debt advisors can help you solve for less money. To schedule you free tax consultation to find out if you actually need a Phoenix tax attorney or not, give us a call today at 480-926-9300.

Written by Scott Allen

Tax Debt Advisors Reviews: Innocent Spouse Relief

“Proof is in the pudding”: More Tax Debt Advisors Reviews

Below is an actual notice of success accomplish by Scott Allen EA of Tax Debt Advisors. You can view other Tax Debt Advisors Reviews by clicking here.  April was caught up in a messy relationship with her now ex-spouse. He was not an ethical man and lied and hide finances from her. He controlled everything she could or couldnt do.  Upon evaluating her situation within her family life and also her current financial situation it was determined that she was a prime candidate for innocent spouse relief. Because everyone isn’t, its important to find out before applying for relief. The process can take up to 12 months so you don’t want to go down that road only to have it denied. For April is was about 10 months before it was approved.  Don’t just take our word for it. Click and view the image below.

Tax Debt Advisors Reviews

Tax Debt Advisors Reviews

Scott Allen EA will only take on your case if it is in your best interest to do so.  He will meet with you for a free consultation to analyze your case.  He will represent you before the IRS, or if not needed, he will tell you how to fix the case on your own.  If you are not a strong candidate for an innocent spouse claim Scott will go over the other settlement options with you.

Along with helping with innocent spouse relief Scott Allen EA also assist taxpayers with yearly tax preparation, unfiled back tax returns, and settling IRS debts. Speak with him today!

Written by Scott Allen

Why did I get an IRS CP11 Notice?

IRS CP11 Notice

A CP11 Notice gets sent to you when they make changes to your tax return because they believe there is a miscalculation of some sort.  The amount of tax has increased because of these changes.


Call Tax Debt Advisors at 480-926-9300 to get help with your CP11 notice.


Having an accountant contact the IRS for you? Allow someone else to contact the IRS for you by using Form 2848.

What can you do about your CP11 notice? What options are available to you?

Looking for information for CP11A Notice or CP11M Notice?

  • First, read the notice carefully.  Don’t be afraid to read it 2 or 3 times to be sure you are understanding it correctly and not overlooking something.
  • If you agree, pay the amount in full by the notice date.
  • If you agree but cannot pay in full. A payment arrangement can be worked out.
  • If you disagree, contact the IRS within 60 days either with the phone number on the notice or by mail.  Always follow up 2-4 weeks later if you dont hear back from the IRS after responding to them.
  • If you don’t respond the IRS will asses the changes to your account and after 60 days have gone by the only option to protest the changes at that point is to file an amended tax return or audit reconsideration.

Most common materials needed for CP11 notices:

Printable CP11 (PDF) Downloads

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How do I find out why my I am getting a CP11 notice?

Contact the IRS to find out why you got this notice.

What if I feel the changes aren’t correct?

If you do not agree with the changes the IRS made to your tax return, you need to contact them in writing within 60 days of receiving your notice and they will reverse the changes as long as you can justify the reversal. If you cannot provide information that confirms your reversal the IRS will submit your case for an audit. This seems scary but will give you formal appeal rights, which included rights to appeal the IRS’s decision in court before you pay the tax. After the case is forwarded, the audit division will contact you in 5 to 6 weeks to give you a full explanation of your rights and the audit process. If you do not contact the IRS within 6 weeks of receiving your CP11 notice, you lose all of your rights to appeal the IRS’s decision.

What do I do if I can’t afford to pay the full amount?

The IRS will allow you to make an installment agreement. However, it does cost to set up an agreement and totally depends on your income but is no higher than $200.

Is interest involved with the agreement?
You do not have to pay interest of your installment agreement as long as you pay the amount you owe by the date on the payment coupon. Although, interest will start to accrue after the payment coupon date.

Are there any penalties for not paying the full amount?

Yes, there are late penalties if you can’t pay the full amount specified in your CP11 notice. Although, if you contact the IRS soon enough they may be able to remove the penalty.

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If you are unsure on what to do or feel you need IRS representation feel free to give Tax Debt Advisors Inc a call at 480-926-9300 to schedule a free consultation.

– – info@taxdebtadvisors.com

Written by Scott Allen

IRS Penalty Abatement

If at first you don’t succeed, at least try one more time: IRS Penalty Abatement

Scott Allen EA will be the first to admit that IRS penalty abatement isn’t for everyone.  If the IRS did not issue penalties then no one would file or pay timely. With that being said if Scott Allen EA determines are are a viable candidate he will fight for you.  This is what he did for a recent client on a large tax bill on the 2013 tax return.  The penalty for filing your taxes late is 5% a month up to five month or 25%.  This becomes a rather large number especially when you tax bill is over $350,000.

These taxpayers were under the assumption that a tax extension had been prepared and filed by their CPA, and that the taxes were filed within the extension deadline of Oct 15, 2014.  Long story short it become known to the taxpayers later on that the ball was dropped and a 25% (or $77,710.27) penalty was assessed.  Scott felt a success could be had with this case and that there was a viable shot at getting the $77,710.27 late filing penalty removed.  Worst case scenario is they deny us; which they did actually back in February 2016.  Scott applied again using form 843 and this time was successful.  About two years past the deadline and five hours of work was worth about $$77,710.27.  By viewing the IRS account transcript below you can see the IRS removed the late filing penalty April 2016.  There is still a large debt to be paid but today its a little bit lighter.  Scott Allen EA was also able to negotiate that debt into a reasonable payment plan for the taxpayers.  Mission accomplished.

IRS Penalty Abatement

IRS Penalty Abatement

Scott Allen EA’s office is located in Mesa AZ at 3155 E Southern Ave #101 Mesa AZ 85204 and can be reached at 480-926-9300

Written by Scott Allen

Need Scottsdale AZ IRS Penalty Abatement

Might you qualify for Scottsdale AZ IRS penalty abatement?

As we all know the IRS issues penalties and they do so often.  Most the time we have to accept those charges due to are own wrongdoing.  However, there are legitimate reason of why you might qualify for all or some Scottsdale AZ IRS penalty abatement.  Consult with Scott Allen EA today to see if you are a candidate. By clicking on the document below you will find a recent success of his in regards to abatement of penalties.

Scottsdale AZ IRS Penalty Abatement

Scottsdale AZ IRS Penalty Abatement

This IRS will issue penalties for a few reasons but the most common are for failure to file on time and failure to pay on time.  The penalty for filing your 1040 taxes late is 5% a month up to five months.  The penalty for paying your taxes late is only 0.5% a month.  Scott Allen EA always reminds his clients the best way to prevent your tax burden from multiplying is to always file your tax returns on time even if you do not have the money.  You will be 90% better off.

The proper way to protest IRS penalties is to apply by using IRS form 843.  This is the best way to “plead your case” for relief.  If you apply without the form the IRS may never respond back to you.  Scott Allen EA has heard this many times from clients who have tried to write the IRS a letter on their own.  Always abate IRS penalties with form 843.  Scott Allen EA has years of experience of protesting IRS penalties.  Meet with him for a consultation to see if you case is worth applying for.  He will gladly represent you.

In addition to Scottsdale AZ IRS penalty abatement, Scott Allen EA also help taxpayers with unfiled back tax returns and negotiating IRS settlements.  You can read further information by viewing his complete website.

 

Written by Scott Allen

Phoenix AZ IRS penalty abatement

Do taxpayers ever get Phoenix AZ IRS penalty abatement?

Yes, penalty abatement does happen but not as often as you hear advertised.  By all the advertisements you hear via radio, TV, and internet you would think anyone and everyone qualifies.  To received consideration you have to have an unusual set of circumstances that prevented you from filing or paying on time.  Below you can view a Phoenix AZ IRS penalty abatement acceptance for a client of Tax Debt Advisors, Inc.

Phoenix AZ IRS Penalty Abatement

Phoenix AZ IRS Penalty Abatement

 

There is no harm in applying to Phoenix AZ IRS penalty abatement.  Scott Allen EA often tells his clients, “the worst they will say is no”.  Even after a no you can always appeal or apply again.  Upon meeting with Scott Allen EA he will want to do a simple evaluation to determine if you are a good candidate in having success with a penalty abatement application.  If there is only $300 of penalties it may no be worth your time or money in applying.  However, if you have $3,000 of penalties on the account then its obviously worth while.  It is a separate application process for each tax year or period and each case is unique unto its own.  The best chance for success (other then having a reasonable cause) is to be organized and have supporting documentation to provide.

Call Scott Allen EA today to see if you are a candidate for IRS penalty abatement. In addition to penalty abatement Scott Allen EA offers tax preparation services for current and delinquent tax years.  Once his clients are in compliance with their tax filings and a total debt amount has been established he is experienced in negotiating IRS settlements.  Put his experience to work for you.

Written by Scott Allen

Who can settle IRS debt in Gilbert AZ ?

Tax Debt Advisors can and does settle IRS debt in Gilbert AZ

The hardest part of getting an IRS issue resolved in most cases is just finding the right help.  Delinquent taxpayers are bombarded with advertisements, websites, and phone calls all claiming to be the best in the industry.  But are they really?

Anyone can put up a website and get a phone number.  I would like to give you just a couple pieces of advice when searching for IRS help.  Are they local or out of state?  Most the companies that are advertising “IRS relief” are just that, out of state with a 1-800 number and an address that is hard to locate.  If this is the case the chance of being represented aggressively is slim to none.  Scott Allen EA meets with clients and hears weekly about taxpayers who paid one of theses out of state companies and received nothing in return.  Don’t become one of their victims.  Work locally with someone like Scott Allen EA.  His office is in Mesa Arizona.  He specializes in settling IRS debts for Arizona residents.

Second, only pay for services as they are accomplished.  Don’t pay any company a large upfront retainer with unrealistic expectations.  How can someone know what to charge you for services after a 10 minute conversations?  Chances are you may just be talking with a sales person.  Don’t ever talk with a sales person. Only work and talk with the actual person who will be representing you.  When you call Tax Debt Advisors to settle IRS debt in Gilbert AZ you will only speak with Scott Allen EA.  He will converse with you over the phone and meet with you for a free consultation.  He will prepare and file your unfiled tax returns and negotiate your IRS debt.  Scott Allen EA does not take large upfront retainer fees.  His services are “pay as you go”.  He will give you a fixed fee for each step of the way as it needs to be accomplished.  This is the best and surest way of being represented honestly and aggressively.

Click on the image below to view an actual settlement negotiated by Scott Allen EA.  Tax Debt Advisors was able to help James with his unfiled tax returns and get a favorable agreement worked out for him.  All results may vary but James received proper representation and was very satisfied with what was negotiated on his behalf.

Settle IRS Debt in GIlbert AZ

Settle IRS Debt in GIlbert AZ

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