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What happens if the IRS finds me before I file? Hire a professional, we can Help you.

by | Oct 2, 2009 | Tax Help, Uncategorized

What happens if the IRS finds me before I file?
This is one of the top ten questions we are asked. If the IRS finds you before you file, find a representative that knows their way through and around the system. Most of the time the IRS wants you current to get back into their system. They will immediately check to make sure you are current so the problem is stopped. Next thing that the IRS will do is determine how many back years they want filed.  At the same time, they will secure a current financial statement to determine how fast they can collect the money and find out where your assets are. It is critical you hire a professional to  become involved with this process to help navigate you through the process. There is some financial planning that can be done to limit your damage.

If I have never filed, how many returns do I need to file to keep the IRS happy?

by | Oct 2, 2009 | Tax Help, Uncategorized

How many tax returns should I file if I have not filed in years?  This varies on a case by case basis and the majority of time you will get different answers depending on who you ask. The type of case you have has a lot to do with the answer. In some cases, the IRS will ask for 7 years because they keep their income sources for 7 years on their own internal systems. It is easy to pull up and they can send their source report to you within days. In other cases they may ask for 3 to 6 years. A lot of this also has to do with the asset base of the taxpayer.  The IRS is trying to determine how much they can collect based on the assets you have. So if it behooves the IRS to go back 7 years because of collection potential, they will go back that far.
So, it is a case by case basis.  A professional should be involved with helping you make these decisions.  It should be known that if there is criminal activity, these rules do not apply.

Taxpayer’s advocate, when you disagree with the IRS

by | Oct 2, 2009 | Tax Help, Uncategorized

The Taxpayer Advocate Service is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving problems with the IRS, or who believe that an IRS system or procedure is not working as it should. Here are seven things every taxpayer should know about TAS and it does work, sometimes.

1. TAS is your voice at the IRS.

2. The service is free, confidential, and tailored to meet your need, so says the IRS.

3.  You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn’t working as it should be. Be careful to rile the troops. Make sure you have a case first.

4.  TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals. You need to know what you are doing to have a chance because generally only a professional can help you when you are at this point.

5.  TAS employees know the IRS and how to navigate it. But the employees still work for IRS. That is why an experienced professional is needed to help. They will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved.

6.  TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico.  You can call your local advocate, whose number is in your phone book, in Publication 1546, Taxpayer Advocate Service.

7.  You can learn about your rights and responsibilities as a taxpayer by visiting the online tax toolkit at www.taxtoolkit.irs.gov.

Most of the time, a matter of fact, almost all times, if the case is in the local IRS office and a decision is made prior to going to taxpayer advocate, IRS advocate office will uphold the decision of the local agent.

Taxpayer's advocate, when you disagree with the IRS

by | Oct 2, 2009 | Tax Help, Uncategorized

The Taxpayer Advocate Service is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving problems with the IRS, or who believe that an IRS system or procedure is not working as it should. Here are seven things every taxpayer should know about TAS and it does work, sometimes.
1. TAS is your voice at the IRS.
2. The service is free, confidential, and tailored to meet your need, so says the IRS.
3.  You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn’t working as it should be. Be careful to rile the troops. Make sure you have a case first.
4.  TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals. You need to know what you are doing to have a chance because generally only a professional can help you when you are at this point.
5.  TAS employees know the IRS and how to navigate it. But the employees still work for IRS. That is why an experienced professional is needed to help. They will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved.
6.  TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico.  You can call your local advocate, whose number is in your phone book, in Publication 1546, Taxpayer Advocate Service.
7.  You can learn about your rights and responsibilities as a taxpayer by visiting the online tax toolkit at www.taxtoolkit.irs.gov.
Most of the time, a matter of fact, almost all times, if the case is in the local IRS office and a decision is made prior to going to taxpayer advocate, IRS advocate office will uphold the decision of the local agent.

How does the IRS phone system work?

by | Oct 2, 2009 | Tax Help, Uncategorized

This information is taken directly from the IRS site so you can understand their system.

Predictive Dialing System – Aspect Automated Call Distributor (PDS)

PDS System Overview
Each evening, an extract of the Automated Collection System (ACS) databases is downloaded to the Predictive Dialing System.  The systems administrator generates predefined campaign types (types of cases to be called based on the extract from the ACS system) to be worked that day.  The predictive dialer dials the taxpayers phone number.  If the taxpayer answers the phone, the call is sent to an ACS employee to work that case.  At the same time the call is delivered, the ACS employee is sent a screen with the extract data so that they can identify that the correct individual or business has been contacted.  The predictive dialer marks that record to indicate that the taxpayer has been contacted so the PDS will not call the taxpayer again during that campaign.  The employee works that case in the ACS System real time just as he/she would any other ACS call.
If there is a no answer, or if there is a busy signal, answering machine, bad telephone number/signal, or the taxpayer hangs up, the predictive dialer records that information and schedules the case for a follow-up call.  At the end of the day, the predictive dialer uploads all of these nonproductive calls to ACS.
Section 1.0 Data in the System

I want to file, but do not have the money to pay the IRS. I am afraid.

by | Oct 2, 2009 | Tax Help, Uncategorized

Many people truly want to pay the IRS and get back into the system, but do not know what to do next.
I want to file but I do not have the money to pay IRS, what should I do?
Believe it or not, IRS wants you back into the system. Most of the time, everyone who wants back into the system stays out because they do not have the money. You need to be prepared to get back into the system because at some point in time, they, the IRS will find you. Be prepared to know what action the IRS will take. Most of the time the IRS is very consistent in their behavior and a good plan can be set up to defend what offense they will take. The IRS will accept the last 3 to 6 years of tax returns and want a current financial statement. A good professional firm knows how to handle these situations and  prepares you accordingly. Do not be afraid,  just take the next step. We have done this thousands of times with great success.