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 worse 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 113,000 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. His father and Scott Allen E.A. from Tax Debt Advisors has helped over 113,000 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 an IRS tax attorney in Phoenix 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.

5 Star Review: “Scott did an outstanding job helping my parents on their back due taxes. When I met him he was very professional and knowledgeable about how to approach the problem. Our issue took 9 months to resolve because of problems with how our taxes were filed (not his fault), but he stayed engaged and helpful the whole time even though we were very small clients for him. My parents don’t have to pay anything back to the IRS. It just amazing, it was a burden and now it’s such a relieve, such peace of mind. My dad comments that now he can sleep better without thinking about it. Thank you Scott!” Pilar L.

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 a Gilbert Tax Attorney to file an IRS Audit Reconsideration?

Gilbert Tax Attorney

No, a Gilbert Tax Attorney is not needed as this is not a legal matter.  It is an IRS procedure to correct a substitute for return prepared by the IRS or the results of an audit—usually an audit that you did not attend or have representation in attendance.  An IRS Audit Reconsideration will require the taxpayer to provide tax records to substantiate their position.  The Audit Reconsideration is for tax matters the IRS has not previously considered.

If you have a tax matter that needs to be re-evaluated by the IRS, the IRS Audit Reconsideration program is an excellent procedure to consider.  Scott Allen E.A. has expertise in providing representation on IRS Audit Reconsideration cases that will give you the best chance of eliminating or lowering the tax balance owed.  Rather than calling a Gilbert Tax Attorney call Scott Allen E.A. today at 480-926-9300 for a free consultation regarding your options to take advantage of the IRS Audit Reconsideration program.

Thad was a victim of an IRS Audit – Substitute For Return. The IRS assessed a tax year and sent him a $49,000 tax bill. Rather then consulting with a Gilbert Tax Attorney he discussed his matter with Scott Allen EA. Scott gave him the peace of mind that he could resolve the matter and reduce the tax bill to the proper amount owed. Scott Allen, a tax preparer near Gilbert AZ prepared the tax return and submitted the protest to the IRS. As you can view from the IRS notice below, the protest was accepted and $26,000 of tax, interest, and penalty was removed. Don’t pretend you can fight the IRS alone. Get it done right and right the first time with Scott Allen EA.

Gilbert Tax Attorney

Written by Scott Allen

Do I Need an IRS Tax Attorney Mesa AZ if I get an IRS CP 2000 Letter?

Scott Allen EA or an IRS Tax Attorney Mesa AZ

No, this is not a legal matter.  This letter is responding to income items not on your return that third parties have reported as paid to you.  If you agree with the amounts not reported you can simply sign the letter and mail it in.  The IRS will send a bill for the amount of tax owed on the items not reported.  If the items not reported have a cost basis such as stock sales you need to disagree with the CP 2000 letter and send in documentation showing the cost of the stock that was sold—in other words what you paid for the stock.  This will reduce the tax liability or if you had a lost on the sale of stock, it would result in a refund instead of a balance due. There are a number of other things that can cause the IRS to issue a CP2000 notice and its worth having a tax professional look into the matter.

Scott Allen E.A. is available for a free consultation if you have questions about your CP 2000 letter or need assistance in responding back to the IRS.  Scott can be reached at 480-926-9300.  He has come across many of these notices and has been successful in response to them.  I don’t believe using an IRS Tax Attorney Mesa AZ is necessary to get this type on mater resolved. These IRS notice letters have deadlines associated with them so it is important to response timely to them.

Need help with a payment plan? After you get your IRS debt as low as legally possible consult with Scott Allen EA to discuss your payment plan options. See a recent example of a taxpayer who used Scott for his representation rather than an IRS Tax Attorney Mesa AZ. View the approval notice below.

IRS Tax Attorney Mesa AZ

Written by Scott Allen

IRS audit reconsideration in Arizona: IRS help from Tax Debt Advisors, Inc

What is audit reconsideration and when should I file for one?   

A taxpayer can file for audit reconsideration in Arizona when you want the IRS to examine your return again.  The reasons you may want the IRS to open your return for a second time include: information that would have reduced your tax liability on the original return is now available, the IRS did not process the return you sent in to replace an IRS SFR return, or there were errors by the IRS in the original assessment of tax.

You should not file for audit reconsideration if you signed an audit report, if you agreed to an Offer in Compromise for the year(s) in question, if you signed an agreement with IRS Appeals or had a determination from Tax Court regarding the assessed liability.

Audit reconsideration requires a written request along with any documentation that was not previously taken into consideration with the original assessment.  Once the IRS is “reconsidering” your return, you must: continue making payments on your installment arrangement.  If the audit reconsideration fails, you still can file an appeal.  We have found that the longer you pursue your efforts, the closer you get to “Santa Claus.”  But you must be a “good boy” and have reasonable proof of your position.

Below is a recent audit reconsideration in Arizona that was handled by Scott Allen EA. It was for a 2012 tax return. As you can see it originally have a balance due of $43,871. Upon submitted proper information provided by the taxpayer he was able to get $20,000 of the IRS debt reduced.  Don’t go about audit reconsideration on your own. For these type of cases representation is usually in your best interest.

IRS Audit Reconsideration in Arizona

If you want a professional opinion on whether you should file for audit reconsideration, call me today.

Scott Allen E. A. – Tax Debt Advisors, Inc.  480-926-9300

IRS audit reconsideration 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

 

Written by Scott Allen

Do I need an Arizona IRS Tax Attorney for IRS Tax Relief Programs?

No, IRS tax relief programs are not a legal matter.  Your Arizona IRS Problem can be resolved without going through an Arizona IRS Tax Attorney.  The most common tax relief programs are:

  • Installment Arrangements
  • Current Not Collectible Status (CNC)
  • Offer in Compromise
  • Filing Delinquent returns
  • Protesting Substitute for Returns
  • Penalty Abatement
  • Qualifying Taxes for Discharge in Bankruptcy.

Scott Allen E.A. has expertise in helping you choose the best option and getting the IRS to accept that option.  Before speaking with an Arizona IRS tax attorney call Scott Allen E.A for a free consultation at 480-926-9300.  Scott will make today a great day for you.

www.stopIRSaction.com

Below is an example of a settlement option that was successfully negotiated by Scott Allen E.A. Don had ten years of back IRS taxes owed. He needed an aggressive settlement and needed it done quickly. Scott was able to wrap up all that IRS tax debt into one low monthly payment plan of $161 per month.

Arizona IRS Tax Attorney

Written by Scott Allen

How can Scott Allen E.A. help you with your Mesa AZ IRS Payment Plan?

Need a Mesa AZ IRS Payment plan?

  • Tax Debt Advisors, Inc. of Mesa AZ is a family business providing IRS resolution services since 1977.  Scott has been working in the family business since he was eight years old.  Scott knows from working in the family IRS help service business in Mesa AZ every aspect of operating a tax resolution business and how to get the right settlement of each new client.
  • Services provided include but are not limited to IRS payment plans, Offer in Compromises, IRS audits, Bank and wage levies, IRS tax liens, Currently not collectible status, Discharging IRS taxes in a bankruptcy, etc.
  • Using an E.A. is your best value for negotiating IRS payment plans, stopping IRS collection action, reviewing letters from the IRS, stopping the IRS from taking your pay check or money from your bank account, IRS property seizures, and working with IRS Auditors, Revenue Officers, and Agents.
  • You will understand what Scott is talking about—no intimidating legalese.  Scott stays up to date on the latest changes at the IRS.  Many of these blogs detail those changes.

Call Scott Allen E.A. today for a free consultation about a Mesa AZ IRS payment plan.  He can be reached at 480-926-9300.  You will be glad you did.

View the image below to see a recent success he had with one of his clients. 13 years worth of taxes were put into one low monthly payment plan. The taxpayer needed to get it revised due to the recent down turn in the economy and that is what Scott got done!

Mesa AZ IRS payment plan

www.ScottAllenEA.com

 

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

Reduce IRS Debt in Mesa AZ by Scott Allen EA

Mark was able to reduce IRS debt in Mesa AZ through audit reconsideration

Check out the notice below to see the work accomplished by Scott Allen EA of Tax Debt Advisors.  Scott was hired by the taxpayer to be his IRS power of attorney.  You will find Scott’s name listed right under the taxpayers name that is blacked out.  See what he was able to accomplish for Mark to reduce IRS debt in Mesa AZ.

Reduce IRS Debt in Mesa AZ

Reduce IRS Debt in Mesa AZ

There may be multiple ways to lower your tax burden to the IRS.  Most of the taxpayers who meet with Scott Allen EA have back tax returns that need to be filed.  His average clients has not filed in about 4-7 years.  The surest and most effective way to keep your tax debt as low as possible is to prepare and file your back tax returns aggressively and accurately.  The lower your overall tax bill is the less interest and penalties the IRS can charge you.

Before filing any back tax returns Scott Allen EA will be getting an IRS power of attorney to represent you from beginning to end.  With this authorization he will immediately get in contact with the IRS in your behalf.  Doing so will get him on board to put a stop to all collection activity and to gather up all the necessary information to aggressively and accurately file the missing tax returns.

Typically with unfiled tax returns you will begin with the earliest year first.  Start there and make your way up through 2015.  Once you are in compliance with your tax filings you can begin to work out an IRS agreement or settlement.  click here to see the different settlement options available to you.

If you are considering to hire a representative or firm that is out of state I caution you against that.  Don’t put your money and finances in the hands of an out of touch person who you cannot meet with face to face.  Local is always better…every time.

Thank you.

 

January 2019 Case Resolution:

Ever get a tax assessment from the IRS and have no clue how they can claim you owe more in tax then you had in income? If you have lost sleep over this you are not alone. The IRS has the ability to file tax returns if you fail to do so. They file these SFR returns if a return becomes delinquent beyond two years of the due date. Mike was a struggling taxpayer in this situation. He didn’t just have one delinquent but had over ten years of delinquent returns and the IRS filed SFR returns on him for seven of those years. Scott Allen EA had his work cut out for him on this case but was able to represent him as his IRS power of attorney and Reduce IRS debt Mesa AZ for him. Check out the amazing IRS notice below. This is just one crazy reduction of IRS debt, interest and penalty for one of his tax returns.

Reduce IRS Debt Mesa AZ

If you have a large IRS debt consider speaking with Scott Allen EA of Tax Debt Advisors for a consultation.

 

Written by Scott Allen

Arizona Tax Return Amendment

Arizona Tax Return Amendment: 2017

Often times taxpayers will find themselves in need of an Arizona tax return amendment filing. This can occur for reasons such as, a simple mistake, lost records, forgetting to report income, or identity theft. If the IRS catches the error before you they can notify you in a couple different ways. One way is by selecting your tax return for an audit. When this happens you are given a deadline to provide the requested information to them to support your deductions (or whatever is being challenged). Another avenue the IRS can question what your filed is by mailing you a CP2000 notice. This is a bit different then an audit. This letter is to inform you that different information was reported to them then what was claimed on the tax return filing.  You are given a lengthy period of time to address this issue.  Your options are to agree to the IRS’s findings or to challenge it. One form of challenging it is to prepare an amended tax return. This is what Tax Debt Advisors did for Josh. View the notice below and you can see that by protesting the IRS CP2000 notice we reduced their findings by over $11,000.

Arizona Tax Return Amendment

Arizona Tax Return Amendment

When faced with a challenge before the IRS its important to hire something is experience in dealing with a similar issue. Meet with Scott Allen EA of Tax Debt Advisors to determine if he is the right fit to handle your case. He will meet with you for a free consultation.

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.

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