Written by Scott Allen

Why am I being audited by the IRS in Arizona: IRS help from Tax Debt Advisors, Inc

Why am I being audited by the IRS

The most common reasons include:

  • If you are self employed and deal in cash such as restaurants, hair salons and contractors, you are in a high risk of audit situation.  The obvious reason—it is easy to put the money in your pocket and not report it on your return.
  • If you make large cash deposits into your bank account.
  • If you claim deductions that are almost as much as your reported income.
  • If you leave off of your return income that was reported to the IRS including     W-2’s, 1099”s, and K-1’s.
  • Unusually high charitable donations, especially those that are household items that are often overvalued.
  • Math errors on your tax return.  Using a computer program will avoid the math errors that go unnoticed on a paper return filled out and mailed in on April 14.
  • If you are using a tax preparer that the IRS has discovered was overstating deductions and generating large refunds.  In most cases, clients coming to us for this reason were actually aware of the practice but chose to ignore it believing that they would not be audited and that the IRS would not hold them accountable for all the interest and penalties and additional taxes if caught.

Use some common sense here and consider the agony that a bad audit will cause you financially and perhaps professionally and with your marriage.  This is probably the main reason why so many taxpayers are filing for innocent spouse protection.  One spouse, usually the husband is filing joint returns that if audited are going to result in large tax debts.  Bad returns are ticking time bombs.  The danger is that when the first one is not audited the taxpayer will becomes more bold and continue the practice in the following years and takes greater and greater risks until the IRS knocks on their door.

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

Why am I being audited by the IRS 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

 

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

 

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

 

Written by Scott Allen

What you should know about the Taxpayer Advocate Service—TAS?

Taxpayer Advocate Service in Arizona

The Taxpayer Advocate Service –TAS, was set up to assist taxpayer who feel that the IRS process is not working properly.  The TAS represents you and is free to all taxpayers.  One becomes eligible to use the TAS after they have tried to resolve their tax problem through normal IRS procedures and failed.  This service is available for individuals and businesses.  Each State has at least one local taxpayer advocate office.  For more information on when to utilize the services of TAS you can contact me or call them at 1-877-777-4778.

Tax Debt Advisors, Inc     Scott Allen E.A.    Helping Taxpayers in Arizona

 

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

 

Written by Scott Allen

Beware of “IRS” Phishing and Email Scams

IRS Phishing and Email Scams

The IRS does not request personal or financial information including your social security number over Internet.  If the IRS needs information from you it will be done by letter.

Phishing is when you are given a link in an email that looks like it was from the IRS requesting financial information to be entered.  Avoid these and report anything suspicious to phising@irs.gov. 

Likewise, if you get an email from the IRS requesting a reply with your social security number or other financial information—ignore it and report it to the IRS.  These email can look official with IRS logos and letterhead.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.stopIRSaction.com

 

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

 

Written by Scott Allen

ARIZONA TAX PROBLEMS – Wage Garnishment Defenses?

Arizona Tax Problems in Mesa

The best ways to stop a wage garnishment depends on the situation.  Here are some suggestions.

If you agree with the balance owed and have the ability to pay it off or make monthly installment payments, the wage garnishment will end.

If the wage garnishment is because of a reason due to identity theft and you are being taxed for income that you didn’t earned (someone illegally used your social security number for income reporting purposes) it is best to go directly to the taxpayer advocate office and explain the situation.

If the wage garnishment will put you out on the street and create an undue hardship, file a form 911, taxpayer assistance order, to get the amount of the garnishment reduced so that your basic necessities to sustain life can continue.

If you disagree with the taxes owed or the reasons why a wage garnishment was taken, you should file for a collection due process hearing and take you case to the Appeals office.

If you have a job that is not that important to your career or support and can get another similar job, quit and take another job.  It will take several months or longer for the IRS to track you down.  However, I recommend you only do that to give you time to deal responsibly with IRS problem.  Procrastination is only make matters worse.  Facing your Arizona tax problem in Mesa and getting on with your life only make sense.

Scott Allen E. A.

Tax Debt Advisors, Inc

www.arizonataxproblems.com

 

Written by Scott Allen

TAX DEBT ADVISORS

Since 1977: Tax Debt Advisors

What should you expect in your first meeting with an IRS Relief company?

First, you should not expect to pay for your initial consultation.

Second, make sure that the person you are talking to will be the one that will represent you before the IRS should you decide to retain their services.  If you are talking with a sales person who will send your information and money to a central office outside of the state, you are working with the wrong firm.

Third, telephone interviews with companies outside of your local may sound good but you will have a very hard time getting someone to call you back except to ask you for more money.

Fourth, see if they have testimonials that are real.  The only ones that cannot be disputed are letters from the IRS to clients and their Power of Attorney representative.  You can see in black and white what was accomplished for the client.  Most if not all testimonials on Web sites were written by the company (There are plenty of Tax Debt Advisors Reviews on this website for you to view)

Fifth, after explaining your problem, you should have a good idea of the steps that your representative will take to correct your problem.

Six, only pay the cost of the next step.  If you need investigative work, pay for just the Power of Attorney work.  If you need tax returns, pay for them one at a time as they are completed.  By this time, you will know if your representative knows what they are doing and has a track record of following through.

Finally, get all of the settlement options in front of you at one time and understand the pros and cons of each one.  There is something good about each option and something not so good.  However, one option is much better than all the others.  Once your settlement agreement has been decided on and agreed to by the IRS, know what you need to do to keep that settlement valid.

Scott Allen E. A.

Tax Debt Advisors  3155 E Southern Ave #101 Mesa AZ 85204

www.taxdebtadvisors.com

Tax Debt Advisors Reviews

 

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