Solve Tax Problems With Expert Advice

Getting a letter from the IRS can be intimidating—the government is big and seems to have endless resources to collect income taxes that are alleged to be due. Typically the best way to solve tax problems is to utilize a tax attorney and/or CPA. Even tax professionals have a challenging task keep up with the mystifying intricacies of the Internal Revenue Code, the Internal Revenue Manual, Regulations, Rulings and case law.

For each type of tax problem, there is a solution:

• Tax Liens. The IRS for federal taxes or the Franchise Tax Board for state taxes have the power to lien your assets to collect taxes owing. If a taxpayer owes back taxes, the government files a legal claim against the taxpayer’s assets. A tax lien may be placed for personal income taxes, payroll taxes not remitted or corporate income taxes. The lien stays in place until the tax liability is satisfied or the statute of limitations runs out.

• IRS Collection Action. Once the tax liability is in the IRS computer system, they will hound a taxpayer until the taxes, penalties and interest are either:
o Paid in full (government’s first choice)
o A correction reducing the tax liability is obtained. The IRS does make mistakes.
o An installment plan is negotiated
o A reduction in the taxes owing is negotiated

• Non Filers. A non filer is a person who has not filed tax returns when due. Without a resolution agreeable to the IRS, a non filer runs the risk of very serious consequences including criminal prosecution for tax evasion and even jail time. Solving this tax problem requires immediate and effective handling by a tax professional.

• Refund Disputes. The onus is on taxpayers to file their own tax returns and remit any balance owing. However, many taxpayers are eligible for a refund which may be disputed by the IRS. The IRS does respond fairly well when a tax attorney or CPA gets involved.

Taxpayers looking to solve tax problems would be wise to engage an experienced tax attorney and/or CPA. John Spurgeon is both a CPA and tax attorney in Pasadena, California servicing clients in the San Gabriel Valley and the greater Los Angeles area. John Spurgeon & Associates have the proven knowledge and skill to effectively represent taxpayers when dealing with the IRS tax or the Franchise Tax Board. Please call 626-440-9518 for a complimentary initial consultation.

How To Solve Tax Problems

How to solve tax problems is a common situation for taxpayers. Needless to say one of the most if not the most complex of all laws is income tax law. In addition to very complex statutes and ever changing regulations, we can add the administrative complexity of how the IRS or Franchise Tax Board operates. Here are some of the common problems that come up:

• Penalties

The IRS issues volumes of penalties which get added to your tax bill. However, they end up cancelling a lot of them. A reversal of the penalty can be obtained by showing that the taxpayer acted in good faith.

• Interest

In addition to penalties, the IRS will assess interest on past due taxes. It is commonly thought that getting interest cancelled is near impossible. However there are circumstances where interest can be cancelled such as delays by the IRS itself.

• Tax liens

Tax liens are a collection action taken by the IRS to enforce payment of income taxes due. These should not be ignored as the IRS has wide powers to seize assets such as bank accounts, property and investments. The IRS can also garnishee your wages which will then involve your employers as they will have to deduct tax from your wages or salary then remit it to the IRS. While an employer can’t fire you for this, it will be an embarrassment. There is relief from tax liens.

• Correction Notices

Believe it or not, the IRS makes a lot of mistakes. So if you got a correction notice and you don’t agree with it, it is likely that it was issued in error. Taxpayers must respond within the time limits to avoid even more difficulties. A tax bill whether it is correct or not remains in the IRS system until it is resolved. Doing nothing is not going to resolve it. The IRS will enforce collection in an ever more forceful manner.

• Statute of Limitations

The IRS has ten years after a tax assessment is issued to collect the tax. It is not uncommon for the IRS to attempt collection after that period. The IRS, in most circumstances, has three years to audit your tax return once filed. However, if there is a 25% error in the income reported, this period is extended to six years. Thus it is prudent to retain all accounting records for a minimum of six years.

Taxpayers looking to solve tax problems would be wise to retain an experienced tax debt attorney and/or CPA. John Spurgeon is both a CPA and tax attorney in Pasadena, California servicing clients in the San Gabriel Valley and the greater Los Angeles area. John Spurgeon & Associates have the proven knowledge and skill to effectively represent taxpayers when dealing with the IRS tax or the Franchise Tax Board. Please call 626-440-9518 for a complimentary initial consultation.

A Tax Debt Attorney Is Skilled At Solving Tax Problems

IRS tax problems do not go away on their own. In fact, they only become more of a situation as time goes on. Uncle Sam is basically a bill collector. Taxpayers compute their tax liability and then file the tax return. If full payment is not made at the time of the tax filing, the IRS for federal taxes and the Franchise Tax Board for California state income taxes sends a bill and pursues collection. Here is where a tax debt attorney is needed to deal with the IRS and solve the tax problem.

If there are any late payments the IRS adds penalties and interest until the tax debt is fully paid. Taxpayers or their legal representative must move quickly to avoid harsh collection actions. The longer the matter is dragged out the more aggressive the IRS collections actions will be. The IRS has a great deal of power given to get the taxes owed collected.

The IRS will firstly go for assets that can be easily grabbed and converted into cash. This includes:

• Bank account levies – one notice is served to the bank, the funds are taken out without further notice or your permission and paid to the IRS.
• Wage garnishment – the IRS sends notices to the taxpayer’s employer who is then obligated to deduct tax from the pay check and remit it to the government. While an employee can’ be fired for this, it is certainly an embarrassment to the taxpayer.
• Asset seizure and sale at auction – this could include automobiles and other assets
• Attack a taxpayers retirement funds, social security or pension

There are a number of solutions available to taxpayers to get the IRS off their back. First and foremost is to determine if the tax liability is correct. If not, this would be addressed resulting in an agreed tax liability. Once the tax debt is agreed with the IRS, a number of different payment options are available.

Don’t sit and wait for your IRS problems to go away—they won’t.

Taxpayers looking to solve their tax problems should consider engaging an experienced tax debt attorney and/or CPA. John Spurgeon is both a CPA and tax attorney in Pasadena, California servicing clients in the San Gabriel Valley and the greater Los Angeles area. John Spurgeon & Associates have the proven knowledge and skill to effectively represent taxpayers when dealing with the IRS tax or the Franchise Tax Board. Please call 626-440-9518 for a complimentary initial consultation.

Tax Debts Solutions By Veteran Tax Attorney & CPA

There are a number of tax debts solutions available to taxpayers. These options provide relief from an IRS tax problem or Franchise Tax Board situation. If you are struggling with burdensome tax debt with no relief in sight, you should consider one or more of these strategies:

1. Communication. The taxpayer or a tax professional representing the taxpayer must be in good communication with IRS otherwise collection actions just get more aggressive including asset seizure, bank account liens and wage garnishments.

2. Amount Due. First and foremost the amount of the tax liability needs to be determined and agreed with the IRS and/or the Franchise Tax Board for California taxes. The IRS depends on the taxpayer for filing tax returns and paying the tax due. As a tax attorney and CPA I can tell you that the IRS does make mistakes so the tax bills you are getting are not necessarily correct. Also the original tax return could be incorrect.

3. Installment Agreement. This is a negotiated payment plan based on the amount of tax owing. Essentially a good faith payment plan over time will generally be accepted. If the tax debt to the IRS is greater than $25,000, then additional documentation will need to be provided to the IRS before they will agree to a payment plan. Once the plan is agreed to, the taxpayer will be required to keep all current tax return filings and payments up-to-date.

4. Offer In Compromise. (OIC) This a negotiated settlement whereby the tax debts are settled for less than the taxpayer owes. Normally this requires extenuating circumstances such a job loss, divorce or death of a family member. Once the settlement is agreed to with the IRS, the tax debt is paid off in a lump sum or short term payment program.

5. Bankruptcy Filing. Your tax debts can be discharged under a bankruptcy petition to the court. This option should be carefully considered as it has severe implications including ruining your credit rating.

6. Not Currently Collectible. This is a program whereby the IRS agrees to suspend collections at this time as the taxpayer is unable to pay even an installment plan. However, if the financial circumstances of the taxpayer change, the IRS can resume normal collection action.

7. Statute Of Limitations. Generally the IRS has 10 years to collect from the date of assessment. If collection is not made in that time, the tax debt could vanish.

Taxpayers looking for effective tax debts solutions should consider engaging an experienced tax debt attorney and/or CPA to solve the tax problem. John Spurgeon is both a CPA and tax attorney in Pasadena, California servicing clients in the San Gabriel Valley and the greater Los Angeles area. John Spurgeon & Associates have the proven knowledge and skill to effectively represent taxpayers when dealing with the IRS tax or the Franchise Tax Board. Please call 626-440-9518 for a complimentary initial consultation.