Regular Post
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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Regular Post
Written by Scott Allen

stopirsaction.com — What are the IRS Collection Priorities for 2020?

stopIRSaction.com

1)      The IRS is filing IRS tax liens on all tax debts.  Revenue Officers are now required to file Federal Tax Liens as soon as they know there are taxes owed.  The number of tax liens has risen from a low of 410,220 in 2018 to 543,604 in 2019.  The IRS is making sure that they secure the tax debt before taxpayers can sell assets and use the money for other purposes.

2)      The Automated collection Service (ACS) has started issuing levies against wages and bank accounts immediately after the mandatory 30 day waiting period.  Normally the IRS would take months before issuing levies.  In the past ACS has given taxpayers 30 days to file any unfiled tax returns and another 30 days to propose a settlement.  We are now seeing ACS give as little as 3 days to file returns or make a settlement proposal.

3)      The IRS is taking more aggressive action on collecting on the trust fund recovery penalty.  Between 2012 and 2017 less than 24% of  assessments were collected.  Manny trust fund assessment penalties went several years before the IRS would try to collect.  By that time the taxpayer was less able to pay the IRS.  If you are behind on your payroll taxes, expect Revenue Officers to start immediate collection action after they assess it.

4)      If you are a non-filer or continue to owe year after year, the IRS has targeted you as a high priority.  The IRS knows that they may not be able to collect on past taxes but they will only accept this if you are staying current on this year’s tax liability.

With the huge budget deficits mounting each year and our national debt growing to dangerous proportions, congress has asked the IRS commissioner to step the timing of collection actions.  If you are struggling with any of the high priority items mentioned, contact me to discuss how you can settle your IRS matter before it reaches a point of crisis.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopIRSaction.com

 

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

scottallenea.com – AUDIT RECONSIDERATION

Audit reconsideration Mesa Arizona

If the outcome of your audit was a negative surprise, you still have an opportunity to appeal the audit results with the audit reconsideration process.  Relatively few people actually appeal their audit out of fear that the appeals process might result in a higher amount owed.  Audit reconsideration Mesa Arizona can cut out a significant portion of the tax, interest and penalties originally assessed by the Auditor.  It amazes me how many times the client has the documentation to support their deductions and expenses but it is in such a disorganized fashion that the auditor simply denies giving credit for anything.  Clients come back and say, “I showed them support for every item but they denied everything.”  The form of the documentation is as important as the substance when it comes to audits.

The Freedom of Information Act (FOIA) allows you to review the auditor’s notes and that is vital to preparing the case you want to present to the Appeals office.   IRS Auditors have less latitude to compromise on issues that are not black and white.  Appeals Officers are given more discretion than auditors.  They want to settle the case as quickly and painlessly as possible.  They do not want the matter to go tax court.

Appeals Officers usually meet with the tax payer’s representative who are more knowledgeable about tax law than the client who usually met with the Auditor without any representation.  Audit reconsideration allows negotiation and compromise whereas the audit dealt in terms that were black and white.  Anything of a grey nature is considered black to an auditor.  If you are dissatisfied with the results of your audit, bring in the audit report and your documentation for a review and an opinion how what would be the benefit of Audit Reconsideration at the IRS Appeals Office.

Scott Allen E. A. of Mesa Arizona

Tax Debt Advisors, Inc. Since 1977

www.scottallenea.com

 

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

IRS AUDITS

IRS Audits represented by Scott Allen EA

Receiving a letter from the IRS notifying that one or more tax years are being audited is unsettling to say the least.  I find that most clients fall into two categories with IRS audits.  Those that properly filed their returns with support for their deductions and those that knowingly took deductions that they knew were questionable or they lack support for deductions on the tax return.

Let’s look at the first group.  No problem here.  If one contacts the IRS as soon as possible after receiving the notice, the IRS is very agreeable to work around your schedule.  Calling right before the appointment to reschedule is considered a red flag by auditors.

Keep your appointment and being prepared will be appreciated by the IRS auditor.  Being prepared means having the support for your deductions in a format that is easy to verify.  For example if you are being audited for office rent, have all of the invoices and checks attached to one another with a machine tape of the total.  If this is done for each item under audit, your audit will be over in minutes and the auditor will have less time to ask probing questions into other areas not under review.  If the auditor sees that you are organized and that deductions on the return are supported properly, the review process will be minimized and the chances of the audit expanding into other years will be avoided.

If one is in the second group, where you either took inappropriate deductions or do not have the documents to support you deduction can be a problem.  These situations require the use of a professional to advise or represent you.  Let me share one example to illustrate.  A former client in the trucking business was being audited for his truck expenses.  He lost all of his records when the contents of his storage unit were confiscated for not paying his storage fees.  The auditor denied all of his fuel expenses amounting to an audit assessment of over $250,000 for the three years being audited.  Much of that being interest and penalties.  The auditor denied the expenses because there were no fuel receipts.

Fortunately, the client came to us for help at this point.  We requested a meeting with the IRS Appeals office.  We secured mileage logs from the companies that paid his for deliveries.  Our client was paid so much per mile.  We established support for the average miles per gallon his truck used and the average cost of fuel though out the year.  We then calculated the total cost of the fuel by backing into the number with these “other support” documents.  The figure was very close to the amount taken on the return.  Our client was given the deduction and the assessment eliminated.

Each case should be reviewed on its own facts and circumstances.  I do not charge for this initial review and recommendation.  In most cases it is obvious whether professional assistance should be considered.

Scott Allen E. A.

Tax Debt Advisors, Inc.

 

IRS Problems, IRS Tax Audits
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