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Written by Scott Allen

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

Audited by IRS in Arizona

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

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

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

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

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

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

 

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

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

 Arizona IRS Tax Audit Strategies

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

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

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

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

 

IRS help by state, IRS Problems, IRS Tax Audits, IRS Wage Garnishment
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Regular Post
Written by Scott Allen

Are taxes discharged in bankruptcy taxable as forgiveness of debt? From Tax Debt Advisors, Inc.

Discharge IRS taxes in bankruptcy

No tax debt discharged in bankruptcy is considered cancellation of debt and will not be considered income to be reported on your tax return.  However, creditors who elect to cancel their debt can cause it to be taxable by filing IRS Form 1099-C.  Usually the full amount cancelled is taxable income unless you can prove that you were insolvent when the debt was cancelled.

If you decide to file a bankruptcy, I will prepare current documentation that will allow you to avoid paying taxes on forgiveness of debt, IF YOU ARE INSOLVENT.

Almost every client who files a bankruptcy is insolvent but to wait until the following year will make the process of proving insolvency more difficult.

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

www.TaxDebtAdvisors.com

 

 

IRS Problems, IRS Tax Audits, Tax Bankruptcy
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Regular Post
Written by Scott Allen

IRS Tax Examination Letters Scottsdale AZ

IRS Tax Examination Letters

There are at least four different types of IRS examination letters Scottsdale AZ used by the IRS.  The most common include:

Letter 525—General 30 Day Letter.  This letter gives you the results of a proposed adjustment to your tax return.  If you do not agree you can file an appeal within 30 days from the date of the letter.

Letter 1153—Trust Funds Recovery Penalty Letter.  This letter is the IRS’s attempt to collect the federal employment or excise taxes due from your business.  You have 60 days to appeal this decision from the date of the letter with the IRS Appeals Office.

Letter 3219—Notice of Deficiency.  This is notice of by the IRS Commissioner that you owe additional tax.  You have 90 days from the date of the notice to file a petition with the Tax Court.

Letter 3391—30 Day Non-filer letter.  This is notice that the IRS believe you have not filed returns for the period(s) mentioned in the letter.  It includes the amount of proposed adjusts to your tax return.  You can protest this assessment within 30 days of the date of this letter.  If you neglect to appeal this decision, the proposed assessments become a Substitute for Return (SFR).

Need help with any of these notices? Give Scott Allen EA a call today. He specializes in helping Scottsdale AZ taxpayers with IRS tax examination letters.

 

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

IRS Notices

IRS Notices on Arizona Taxpayers

Here are the three most common IRS notices:

CP 2000—Proposed Changes to Your Return/Notice of Unreported Income.  If income has been reported to the IRS that is not on your return you will get this notice.  If you disagree with this notice you have 30 days from the date of this letter to file an appeal with the IRS Appeals Office.

CP 22E—Examination Adjustment Notice, Balance Due.  This notice explains the amount due from an audit.  You can either pay the amount due or set up an installment arrangement.  If you qualify you can also file for an Offer in Compromise.

CP 523—IMF Installment Agreement Default Notice.  This letter informs you that the IRS intends to terminate your installment agreement.  You have 30 days to file an appeal if you do not agree that your installment agreement should have been put in default status.

Scott Allen, EA

Tax Debt Advisors, Inc helping Arizona Taxpayers

taxdebtadvisors.com

 

IRS help by city, IRS help by state, IRS Problems, IRS Tax Audits
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Regular Post
Written by Scott Allen

Can I stop an IRS audit by filing bankruptcy?

IRS Audit and Bankruptcy

Even though filing a bankruptcy can stop all collection action, it doesn’t prevent the IRS from doing an audit.  An audit also extends the time that you can file a bankruptcy.  A bankruptcy can only be filed on a tax year 240 days from the time the audit was completed and any additional taxes assessed.

If you are going to file a bankruptcy to discharge your IRS taxes, then an audit is really only going to cause a temporary delay.  If you owe more taxes, the silver lining in an audit is that you will also get those taxes settled.  The only issue is what to do for the additional 240 days before filing a bankruptcy.  In most cases, we put our clients in a non collectible status or an installment arrangement.  If you qualify for a non collectible you do not have to make any payments to the IRS.  If you are put on a monthly payment plan, most clients make an average of 4 or 5 payments before they can file their bankruptcy.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopIRSaction.com

 

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

What is an SFR return and the purpose of the SFR Unit?

IRS SFR Return help near Gilbert Arizona

SFR stands for substitute for return.  When a tax return has not been file for an extended period of time, the IRS will eventually file a substitute return that calculates the tax based on income reported with no deductions.  If a person was filing jointly before, the IRS will file the SFR return as married filing separate.  The purpose of the SFR unit is to prepare the substitute return and process any returns that are later filed as a “protest” against the SFR return by the taxpayer.  When filing a return in response to an SFR, it is best to send it to the SFR unit that is responsible for making any adjustments to the SFR amount owed.  The turn around time to get a tax balance lowered after filing a correct return can take several months.  SFR returns are not dischargeable in a bankruptcy since they are not considered filed returns.  However the SFR does have the same 10 statute of limitations for collection as a return filed by a taxpayer.

Before making any decisions on how to handle an IRS SFR return near Gilbert Arizona it is critical to first discuss your situation with a tax professional.

Scott Allen E. A. at 480-926-9300

Tax Debt Advisors, Inc near Gilbert Arizona

taxdebtadvisors.com

 

BACK TAX RETURNS, IRS Problems, IRS Tax Audits
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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

 

BACK TAX RETURNS, IRS Levy, IRS Problems, IRS Tax Audits
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Regular Post
Written by Scott Allen

Is the Appeals Office any easier to work with than an auditor or collections?

IRS Appeals Office Phoenix AZ

Yes, because the IRS Appeals office Phoenix AZ generally has more authority to compromise when the matter in dispute is in a “grey area.”  Auditors and collections are pretty much black and white on their decisions.  If there is any question, they will deny what might be approved of by the Appeals office.  Also, the Appeals office will do all that they can to prevent the matter going to tax court.  Tax court is an expensive and time consuming procedure that the IRS would prefer to avoid.

Scott Allen E.A.

Tax Debt Advisors, Inc

www.arizonataxproblems.com

 

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

STOPIRSACTION.COM – Can the IRS take my money if my spouse is the one who owes the IRS?

stopIRSaction.com Mesa Arizona Help

The IRS will never take money from a spouse who is not liable for the taxes owed.  However, if you are married and your spouse has income, more of your money will be considered available for payment to the IRS.

Many clients come in who find out that their spouse owes on taxes prior to their marriage.  The IRS will not hold the new spouse responsible for any taxes due prior to the marriage.  The IRS will not take any separate assets like real estate or vehicles.  If you owe the IRS and the innocent spouse puts your name on the title of any property, the IRS can pursue the property for taxes owed.

Sometimes the spouse owing taxes will quickly change title into the name of the new spouse or some other family member.  The IRS will be able to void out the transfer unless the asset was transferred for fair market value.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopirsaction.com

 

IRS Problems, IRS Tax Audits, IRS Tax lien problems
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