Written by Scott Allen

What Should I do if the IRS Knocks on my Door in Arizona?

IRS Knock on my Door in Arizona

If a Revenue Officer knocks on your door in Arizona, technically you do not have to let them in.  But you should be courteous and ask if you can have a representative contact them.  A good way to respond is to say something like, “I will provide all the information you request, but I would like to consult my representative and have them represent me.”

A Revenue Office is entitled to your financial information but it is best to request a list of all the information that they want and a reasonable deadline.  It is too easy to try to please the RO and not provide accurate or complete information.

Most Revenue Officers are please that you have representation as long as they respect the person you choose.  Many national companies have poor track records with the IRS and the RO will usually ask who you are considering using.  They cannot make suggestions on who to use but they will likely tell you if you are considering someone with a bad reputation.  The key here is to handle unannounced IRS visits with courtesy, but remember you have rights to representation before disclosure.

Scott Allen E. A.     Tax Debt Advisors, Inc     Mesa Arizona    taxdebtadvisors.com

 

Written by Scott Allen

What is the difference between Revenue Officers, Revenue Agents and Special Agents?

 IRS Revenue Officer in Phoenix AZ

A Revenue Officer in Phoenix AZ is responsible for collecting taxes.  If someone comes to your home or place of business from the IRS it is probably a Revenue Officer.  They are responsible to for collecting taxes and locating nonfliers.  Their first priority is to find out the quickest way to collect the taxes owed.  They carry badges to identify who they are.  If you ignore their requests you may soon find that your wages or bank accounts are levied.  They are graded on the number of cases they close and the amount of money they collect.

A Revenue Agent in Phoenix AZ audits tax returns filed.  They have authority to meet you at your home or place of business.  Most taxpayers are notified of an audit by mail.  They are trained to find unreported income.  If the amount of unreported income is significant your case can be turned over for a criminal investigation.

Special Agents in Phoenix AZ do criminal investigations.  Special agents make unannounced visits and have a prepared list of questions.  If you are contacted by Special Agents, you should respectfully decline to answer their questions and seek legal counsel.

I work everyday with Revenue Agents and Revenue Officers in Phoenix AZ.  If you are contacted by an IRS Special Agent, I can refer you to an attorney who specializes in IRS criminal investigations.

Scott Allen E. A. (Enrolled Agent)

Tax Debt Advisors, Inc near Phoenix AZ

taxdebtadvisors.com

 

Written by Scott Allen

What is a hardship status with the IRS?

IRS Hardship Status Tempe Arizona

The IRS will stop collection action if you can show economic hardship.  That doesn’t mean that the tax or the interest and penalties on the tax go away.  You still owe the IRS, they are just not requiring you to make any payment towards the debt owed.  Currently not collectible is referred to as status 53 at the IRS.

To qualify for IRS hardship status Tempe Arizona the IRS will collect financial information about your monthly income and expenses.  If your income and monthly expenses are close to being equal the IRS will consider you currently not collectible.  However, the IRS has certain amounts that they consider reasonable for expenses.  For example, the IRS feels that you car payment should be $588 per month or less.  If your car payment is $800, the IRS will not allow you to be put on a hardship status.  To be fair, the IRS can’t allow someone with a nice car be on a hardship status while the taxpayer with a car within their acceptable limit be required to make monthly payments on their IRS debt.

Qualifying for IRS hardship status Tempe Arizona is rather common.  If the statute of limitations is close to running out, being put on status 53 is an excellent settlement strategy.  The statute of limitation runs for 10 years from the time the taxes were assessed.  We have had many clients that have stayed on currently not collectible status for the full ten years.  To stay on this status one must file and full pay their current taxes every year.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.scottallenea.com

 

Written by Scott Allen

Phoenix IRS Offer in Compromise vs. filing tax court petition

Phoenix IRS Offer in Compromise

If you have the opportunity to file a tax court petition or a Phoenix IRS offer in compromise—always file the tax court petition.  An offer will take a long time to process and it is doubtful that you will know the amount of the offer that will ultimately be acceptable to the IRS.  The filing period for a tax court petition is only 90 days.  You will not know the results of an offer before the deadline on the tax court petition will lapse.  If you are working with a competent representative you should know what you will be expected to pay on your tax court petition.  Also, you should never or almost never expect to go to tax court.  Your advisor should get your case assigned locally to the Appeals Office at the IRS.  This is one area that you should most definitely consult with a representative to know your options under both situations before getting started.

Scott Allen E. A.

Tax Debt Advisors, Inc for Phoenix IRS Offer in Compromise

www.IRShelpblog.com

 

Written by Scott Allen

Can someone actually get out of IRS tax debt in Arizona?

IRS Tax Debt in Arizona

The answer is yes, but some ways are easier than others.  Let’s face a few facts.  Some clients spent several years getting into tax trouble and are unrealistic to think that  there is a magic pill or potion that will instantly make the problem go away without any pain or effort.

A short story may be helpful.  One day my father took me over to my grandmother’s house to pull some weeds.  I had previously asked him if I could go to the beach with some friends that day.  When I saw the half acre with weeds up to my waste, I was convinced that there was no way I was going to be able to pull those weeds and go to the beach.  My father drove away and left me there.  He was gone for about 30 minutes and had returned to see what I had accomplished.  I had not pulled any weeds—not one.

Now I was told in no uncertain terms that I need to start the project and he would come back in 30 minutes to see how I was doing.  I reluctantly started the process.  I pulled one weed and it came out pretty easily.  The next pull I was able to get two weeds with just one hand.  Eventually I was able to get about ten weeds in one hand, then I figured out how to get both hands working and was pulling out twenty weeds with two hands.  When my father came back in 30 minutes, I was half done.  I was shocked at how much I had accomplished.  My father had taught me a very valuable lesson that day.  “One weed at a time.”  The project was completed in less than an hour.  If you had asked me how long it would have taken me to do that job, I would have guessed three days.

It is the same with IRS tax debt in Arizona.  I ask my clients to do one task at a time and to keep moving forward and before they know it, their IRS problem will be done.  The vast majority of clients say, “If I knew it was going to be that easy, I would have started this process a long time ago.”  I remind them that it wasn’t an easy process.  It became easier once they started.  That is the hard part—getting started and staying committed to the task.  Goethe said it best when he stated, “Are you in earnest?  Seize this very minute—Boldness has genius, power and magic in it.  Only engage, and then the mind is strengthened.  Begin it, and then the work will be completed.” 

This is true with your IRS tax debt in Arizona.  Do you earnestly want to get it resolved?  If so then engage in the process, begin the task, and as soon as you begin it you are half completed.  The second half will be easier to complete once you realize you are half done already.  A tax problem and a half acre of weeds had a lot in common.  With a one hour free initial consultation I can tell you what it will take to get your IRS “weeds” out of your life.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopIRSaction.com

 

Written by Scott Allen

IRS Form 2848

Internal Revenue Service Form 2848

This IRS form is used to give permission for someone else to represent you before the IRS.  It is referred to as an IRS Power of Attorney.  It is limited to the items described on the form and those areas of representation are limited to IRS matters.  Typically the form will state what type of tax—individual income tax, form number—1040, and tax years covered—2002-2022.  If there is a problem with any years outside of those mentioned, the IRS will not allow your representative to work on those years.  If you have a payroll tax problem in addition to an individual income tax problem, it too must be separately mentioned.  Before we begin any work on resolving a tax problem, we require a power of attorney.  A power of attorney allows us to get information needed to resolve successfully your current IRS problem.  It is time to stop IRS action against you and hire Scott Allen EA to be your IRS power of attorney. He will put your mind at ease.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopIRSaction.com

IRS FORM 2848

Written by Scott Allen

taxdebtadvisors.com in Mesa Arizona – Can Interest and Penalties on IRS debt really be reduced?

TaxDebtAdvisors.com

The short answer is: rarely.

It is common to hear IRS Relief ads claim that they can reduce interest and penalties on your IRS debt.  It is easy for clients to believe this claim since interest and penalties often exceed the amount of the actual tax debt.

But because it is possible in very limited situations, unscrupulous companies will give the impression that they know how to do something that no one else knows about or is able to do.  This is probably the most common myth that clients, seeking a second opinion, share with us.  When we point out the situations that do apply to penalty and interest abatement, it is obvious that the prospective client is not a candidate for that type of tax relief.

In simple terms, unless it was a mistake by the IRS against you that was incorrect, or you were prevented from filing or paying because of something beyond your control, such as your house being blown off it’s foundation, along with your tax records from Hurricane Katrina, or being called up for combat in the military or some similar situation you will not be a candidate for penalty or interest abatement.  In the situations mentioned you would only be considered for penalty abatement but not interest abatement.  In other words, every penalty abatement case is unique and is handled case by case for the IRS to consider.

Scott Allen E. A.

Tax Debt Advisors, Inc in Mesa Arizona

www.taxdebtadvisors.com

 

Written by Scott Allen

STOP IRS ACTION – Can the IRS take my social security check?

The IRS took my Social Security check

Many retired people in recent years have called my office to ask if the IRS could levy their social security check?  The answer is yes; up to 15%.  Before this occurs the IRS will send you a CP 91 letter—Final Notice Before Levy on Social Security Benefits.  You have 30 days from the date of the notice to reach a settlement with the IRS or the levy will begin.

If we can show the IRS that the garnishment creates a hardship, your account will be considered not collectible as long as you file and full pay any taxes due in the future.   The IRS allows you a reasonable amount for rent, food, utilities medical care and automobile expenses.

Once a levy on social security has started, it can take a month or two to get it stopped.  If you receive a CP 91 letter in the mail, call my office immediately to see what can be done before the levy begins.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopIRSaction.com

 

Written by Scott Allen

stopIRSaction.com – Can the IRS Show Up One Day and Take My Property?

stopIRSaction.com

The Fourth Amendment protects you against unreasonable search and seizure.  Before the IRS can invade your private space they must either have your permission or a writ of entry from a federal judge.

The IRS could seize your vehicle from your place of employment or your driveway, but not if your car was parked in your garage, without your permission or a writ of entry from a federal judge.

If you have a “reasonable expectation of privacy”, your consent or a court order is required before the IRS can enter and seize your personal property.   You are not required to let the IRS take your property if it is not in your best interest without your permission or a court order.

Even though I am frequently asked this question, I don’t know of a single instance this has occurred against a client.  The IRS is not interested in taking your possessions.  They want you to file and pay your taxes currently and if you have liquid assets available to pay towards your back taxes, a settlement can be reached that will allow you to make payments and still maintain a reasonably comfortable life style.

If you need help to stop IRS action near Mesa Arizona call and speak with Scott today. He offers a free consultation.

Scott Allen E.A.

Tax Debt Advisors, Inc.

www.stopIRSaction.com

 

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