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

Is my spouse responsible for my LLC tax debts?

LLC Tax Debts

The answer to this question depends on the fact and circumstances of each individual situation.  There are times when a spouse would not be responsible and there are other situations where the spouse is definitely responsible.

Here are some circumstances that would be factors:

Arizona is a community property state.  That means that both the IRS and the Arizona Department of Revenue can consider the income from both spouses to be considered earned 50/50 by each spouse even if they file separate returns.

LLC’s can be taxed as sole proprietorships, partnerships, C corporations or S corporations.  The type of entity you have elected to be taxed as will have an impact of a spouse’s liability of the LLC tax debt.

The type of tax is critical.  If it is payroll taxes and the spouse was preparing the payroll and had check signing authority would make the spouse responsible even if they were not an actual owner of the business.

Ownership is also a critical factor.  If both spouses are listed as owners and/or officers, then the likelihood of both spouses being held responsible for the taxes is most likely.

Dates of marriage and/or divorce of the marriage will affect the chances of the “innocent spouse” being held responsible or not responsible for LLC tax debts.

There are many other factors that can affect the spouse’s responsibility for tax debt.  It is best to consult with a knowledgeable tax representative to get a specific answer based upon the facts and circumstances of your situation.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.taxdebtadvisors.com

 

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