Regular Post
Written by Scott Allen

Can I appeal my IRS Audit? IRS help from Tax Debt Advisors, Inc.

IRS Audit in Arizona

Yes, but first you should speak to the manager of the person who did the audit.  Many times an appeal can be avoided by speaking with the manager.  In most cases you will want to have a professional speak to the manager on your behalf.  Many times it is just explaining the facts in terms that the IRS will accept.  Before I can represent you an IRS form 2848 will need to be filed with the auditor.  If the manager is unwilling to agree with me, I will file an IRS audit appeal.  Audit appeals are more willing to make compromises as a matter of expedience to keep their workload from backing up and because they have greater latitude to make concessions.  A professional representative who has worked with the Appeals Office has a greater chance of success simply because of their relationship and credibility from past appeals.

 

 Scott Allen, E.A. – Tax Debt Advisors, Inc helping with IRS audits in Arizona

www.TaxDebtAdvisors.com

 

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Regular Post
Written by Scott Allen

Tax Preparation: Form 8839 – Qualified Adoption Expenses

Information to consider when claiming the Adoption Credit:

If you are considering adopting a child, you may qualify for the adoption tax credit, which is up to $14,890 per child.

In order to qualify, you must have adopted a child and paid out-of-pocket expenses relating to the adoption.  The amount of the tax credit is depended on the amount you spent on adoption-related expenses.  If you adopt a special needs child you are entitled to claim the full amount of the adoption credit even if you didn’t spend the full $14,890.

The adoption credit was scheduled to expire until health care legislation passed and extended it through tax year 2022.

For higher income earners, the phase out for the credit starts at $216,000.  To be eligible for the credit you must adopt a child 17 or younger.  Or a child of any age who is a US citizen or resident alien and who is physically or mentally unable to care for himself or herself.

Many argue the issues with the tax credit, is that you had to spend that money out of pocket before you can claim the credit.  If the credit is based off expenses you have already spent it is difficult for lower-income families to adopt.

Qualified adoption expenses include: adoption fees, attorney fees, court costs, travel expenses and re-adoption expenses related to the adoption of a foreign child.

Qualified adoption expenses that do not qualify include:

  • those for which you received funds under any state, local, or federal program
  • that violate state or federal law
  • for carrying out a surrogate parenting arrangement
  • for the adoption of your spouse’s child
  • paid or reimbursed by your employer or any other person or organization
  • or allowed as a credit or deduction under any other provision of federal income tax law.

For more information please contact Scott Allen, E.A. with Tax Debt Advisors, Inc  www.ScottAllenEA.com

 

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Regular Post
Written by Scott Allen

Local IRS Offices in Arizona: IRS help from Tax Debt Advisors, Inc

Local IRS Offices in Arizona

Where is the nearest IRS office from you?  Below is a list of all IRS office addresses and phone numbers here in Arizona.

Phoenix IRS Office: 4041 N Central Ave  Phoenix, AZ  85012  Phone:  844-545-5640. Major cross streets are Indian School Rd & N Central Ave, in the same building as the Maricopa County Education Service Agency. Monday-Friday – 8:30 a.m.-4:30 p.m.

Services Provided

Mesa IRS Office: 1818 E Southern Ave  Mesa, AZ  85204  Phone:  844-545-5640. Major cross streets are S Gilbert Rd and E Southern Ave, right next to Mesa High School. Monday-Friday – 8:30 a.m.-4:30 p.m.

Services Provided

Glendale IRS Office: 7350 W Camino San Xavier  Glendale, AZ  85308  Phone:  844-545-5640. Closest major cross street are W Camino San Xavier and 73rd Ave.

Services Provided

Tucson IRS Office: 300 W Congress  Tucson, AZ  85701  Phone:  844-545-5640. Closes major cross streets are N Granada Ave and W Congress St. just west of Tucson City Hall. Monday-Friday – 8:30 a.m.-4:30 p.m.

Services Provided

Yuma IRS Office: 2285 S 4th Ave  Yuma, AZ  85364  Phone:  844-545-5640. Closest major cross streets are S 4th Ave and W 23rd St. right next to Safelight Auto Glass. Monday-Friday – 8:30 a.m.- 4:30 p.m. (Closed for lunch 12:30 p.m.-1:30 p.m.)

Services Provided

Bullhead City IRS Office: Virtual Assistance Only  Phone:  844-545-5640.

Services Provided

If you are in need of Arizona IRS Representation, call and talk with me today –  Scott Allen, E.A.

3155 E Southern Ave  Ste 101  Mesa, AZ  85204  Phone:  480-926-9300

 

Local IRS Office Locations, Tax Advisor, Tax Preparation, Unfiled Tax Returns
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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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Independent Contractor or Employee?

Are you an Independent Contractor or Employee?

This is a big issue that can have a drastic impact on how you are taxed.  If you are getting a 1099-Misc you are an independent contractor—you are considered self employed the same as if you had your own business.  You will have to file a Schedule C and pay Self-Employment taxes of 15.3% of your net income in addition to income taxes.

If you really are an employee, there is no Self-Employment tax, but you will have Social Security and Medicare taxes taken out which amount to 7.65% of your gross income.  In most cases you are better off being treated as an employee.  Employers reduce their taxes by paying you as an independent contractor as well as avoid paying benefits such as health insurance.

If you are being classified incorrectly as an independent contractor, you can correct the problem by filing a relatively new form with the IRS—Form 8919, Uncollected Social Security and Medicare Taxes on Wages.  By filing Form 8919, so you avoid paying Self-Employment taxes.  This form can be filed when you file your individual tax return.  In addition you will need to send in a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding separately.  You will be required to pay your share of Social Security and Medicare taxes.

Many clients do not do this out of fear that their employer will terminate their employment.  By filing a Form 8919, your employer will have to pay their share of payroll taxes and will be fined for filing and paying late.  Employers will also be fined and pay a late fee on Unemployment taxes.

If you are terminated as an employee because of this, you do qualify for unemployment compensation based on the rules of your state that you reside.  Ultimately the IRS will make a determination of your employment or independent contractor status.  Your employer has the right to contest your status.  If your employer appeals and you are considered an independent contractor, you will have to amend your return and pay the additional taxes associated with being self employed.

Tax Debt Advisors, Inc

Scott Allen, EA

 

 

IRS Problems, Tax Preparation, Unfiled Tax Returns
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Why should I consider discharging taxes in bankruptcy?

Discharging Tax in Bankruptcy Chandler AZ

1)      Filing a bankruptcy will immediately stop all levy and seizure action.  Levies against wages and bank accounts are released.

2)      The IRS has no decision power on bankruptcy matters.  If you can file a bankruptcy and the taxes are qualified for discharge, the bankruptcy option will work every time.

3)      Bankruptcy takes care of not only the tax due but also interest and penalties.

4)      Offers are becoming increasingly difficult to get IRS acceptance.

5)      Discharging tax in bankruptcy Chandler AZ can solve both your tax and not tax debt.  If you have significant credit card debt, a judgment against you or large medical bills, filing a bankruptcy can resolve all of your debt issues.

6)      An offer in compromise will only take care of your IRS debt.  If you owe state taxes, the option of filing bankruptcy to discharge federal and state taxes is a major advantage over filing an offer in compromise.

Scott Allen E. A.

Tax Debt Advisors, Inc

taxdebtadvisors.com

 

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

Are You Losing Your IRS Refunds Every Year?

Losing IRS Refunds

Are you getting tired of having refunds every year applied towards your unpaid taxes?  The solution is rather simple.  If you are an employee, change your withholdings so that you are having less withheld.  I always tell clients in this situation that the best you can do is own $1 on future tax returns.  When you have refunds you are in essence making an interest free loan on the money to the government.

Secondly, if you are married and filing jointly, you can protect your refund by filing an Injured Spouse Allocation—form 8379.  This will allow you to calculate how much of the refund was generated by you and you can have it paid to you rather than have it applied to a debt that is not yours.  Too many taxpayers are filing married filing separate to protect the injured spouse’s refund.  This is a very expensive way to protect a refund.  Many deductions and credits are lost by filing married filing separately and the taxpayer would get more of a refund filing a joint return with the Injured Spouse Allocation.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.taxdebtadvisors.com

 

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

Arizona State tax debt

Arizona State Tax Debt

Debts owe to the State of Arizona are handled by the Arizona Department of Revenue.  Settlements and are handled very much the same way as they are with the IRS.  There are some important differences.  I advise clients to first file and settle with the IRS and then file and settle with the Arizona Dept. of Revenue (AZDOR) in most cases.  If you are filing old returns from prior years, Arizona will often wait until the IRS accepts the federal return before accepting a return filed with them for the same year.  Also, the State of Arizona is much more aggressive on collecting taxes on smaller amounts owed than the IRS is on larger amounts owed.

It is best to make your decisions on settlement once you know what you will owe to both the IRS and AZDOR and your ability to make payments on your combined tax debt.  There are some situations when settling up with the State before settling with the IRS makes more sense.  A consultation with a professional representative will help avoid painting yourself in a corner on one tax debt and leave you vulnerable to serious financial troubles in dealing with the other.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopIRSaction.com

 

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

Phoenix IRS Offer in Compromise vs. filing tax court petition

Phoenix IRS Offer in Compromise

If you have the opportunity to file a tax court petition or a Phoenix IRS offer in compromise—always file the tax court petition.  An offer will take a long time to process and it is doubtful that you will know the amount of the offer that will ultimately be acceptable to the IRS.  The filing period for a tax court petition is only 90 days.  You will not know the results of an offer before the deadline on the tax court petition will lapse.  If you are working with a competent representative you should know what you will be expected to pay on your tax court petition.  Also, you should never or almost never expect to go to tax court.  Your advisor should get your case assigned locally to the Appeals Office at the IRS.  This is one area that you should most definitely consult with a representative to know your options under both situations before getting started.

Scott Allen E. A.

Tax Debt Advisors, Inc for Phoenix IRS Offer in Compromise

www.IRShelpblog.com

 

IRS Levy, IRS Problems, Unfiled Tax Returns
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Regular Post
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IRS Trust Fund Recovery Penalty

IRS Trust Fund Recovery Penalty

Internal Revenue Code Section 6672 (a) covers the IRS Trust Fund Recovery Penalty.  This is often referred to as the 100% penalty which indicates how serious the IRS is to punish taxpayers who fail to turn over trust funds.  Trust funds are withholdings that the employer holds back from employee pay checks.  They would include Federal withholdings, Social Security and Medicare taxes.  The term trust means that the employer is holding these funds from a position of trust and is responsible to collect and turn them over to the IRS on a regular basis.

The person or persons responsible for paying these taxes would include but are not limited to the Chief Executive Officer, and any other person authorized to pay the funds and have check signing authority.  The IRS can assess this penalty against anyone who they consider financially responsible.

Many businesses that get in financial trouble and no longer can borrow from legitimate sources such as banks, issuing stock or bonds “borrow” from the IRS by not paying funds held in trust.  The intent is to catch up when business gets better.  With 100% penalties, it would be better to visit the local loan shark—you would get better rates.

If the IRS has determines that you are responsible for paying back trust funds, get professional help immediately.  The IRS will often try to justify going after many individuals without knowing for sure who is really responsible.  This shot gun approach can be devastating financially and the longer you go without contesting the position of the IRS on your responsibility, lowers your chances of being relieved of this tax debt.  Trust funds and the related IRS trust fund recovery penalty cannot be discharged in a bankruptcy.

Scott Allen E. A.

Tax Debt Advisors, Inc.

www.taxdebtadvisors.com

 

IRS Appeals, IRS Problems, Tax Debt, Unfiled Tax Returns
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