Regular Post

Written by Scott Allen

23 August 2010

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

Tax Attorney Mesa

Regular Post

Written by Scott Allen

2 August 2010

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

Stop IRS Action in Mesa Arizona

Regular Post

Written by Scott Allen

2 June 2010

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

Tax Debt Advisors: Settle IRS Debts