Tax Problems

Many of our callers do not understand how long it takes to resolve a tax problem. Many clients think small problems are large and many do not understand how large their project is and how much it will cost.

When it comes to Tax audit help, how long will your case takes to resolve is entirely dependent upon you and the complexity of your case. Can you provide the information needed to resolve your case, and can you pay the fees associated with being professionally represented?

If you haven’t filed your individual income tax returns, but you have all of your information gathered and organized, we will usually start on your case, the week you retain the firm’s services.

If you own a corporation or you are self employed, the length of your project is determined by you and your financial resources.

Self employed people and corporations must make a reporting of their business income and expenses. Depending upon your situation these types of projects take months, 1-2 months per year.

This type of work can involve substantial accounting and professional fees.

If you need tax audit help, tax representation or a tax consultant, call Tax Matter Solutions Today at – 877 489 8999 and speak to one of our tax consultants.

Does the IRS have payment plans is a very common question, Normally because the Tax Payer can’t full pay right now.

A skilled tax representative or tax attorney can negotiate you one of several payment arrangements.

• Short Term Deferred payment – This is a payment arrangement that can get you a window of 60 or less.  If you anticipate collecting a receivable and then making your payment, this might be an option for you.
• Streamlined payment arrangement – This is a plan where your liability is less than 50k and can be paid within 72 months.
• Complex payment arrangement – This is a plan where the liability exceeds 50k and or it will take longer than 72 months to full pay.
• Partial Payment Installment agreement.  You can’t pay the full balance owed, but you can pay something.

So as an example. A tax payer is behind on their payroll taxes.  The tax payer was in the process of collecting on his accounts receivable. Ironically, the A/R was owed by the US government.

A simple case. A tax payer owed more than 50k, paid down the balance to less than 50k, and we negotiated a streamlined installment agreements.

We have worked with a tax payer who owed over 100K, We corrected his forms and filed payroll tax forms that were accurate. The additional accuracy saved the client $60,000.

Partial Payment Installment agreement (PPIA) is for a client that owes a substantial balance and does not meet the criteria for an Offer In Compromise (OIC).

The IRS has many payment programs you can leverage. So if you feel this will help you, simply call the number at the top of our blog and we will be able to professionally advise you on your case.

As a Fort Wayne Tax Attorney office and Professional Tax Service, we are often asked “How Can I Owe That Much To The IRS?”

The scenario is. A letter arrives from the IRS, a client opens the letter and the IRS says they owe an astronomical amount of money?

When the client calls the office, what they want to know is, how this can happen as chances are this is a very high amount and hard to imagine paying back.

To understand how it got to be this much, have a professional tax service examine the components.

Base tax + penalties + Interest = Huge amount of money that you cannot repay.

If you haven’t filed your taxes in several years, and you haven’t paid the base tax that you owe, there are 2 penalties that are hitting you right away.  Failure to file (FTF) & Failure to pay (FTP).

Each of these penalties take the base tax that you owed and increase the amount by 25%.

So if you haven’t filed and you owe taxes, the IRS increases the balance by 50% right away, and then they start adding on interest.

An independent contractor that made $50,000, wonders why he owes $20,000 per year?

As a tax CPA and Fort Wayne Tax Attorney, we talk to people like this often.  The contractor has 13.3% for self employment taxes, he is in the 25% tax bracket add to that penalties and interest and bam, the client owes 20k per year.

If you are having issues with tax penalties and need either a professional tax service or Fort Wayne tax attorney. Please contact us today at 877 489 8999.

Many are concerned about the fact the IRS can take their house for not paying their taxes and may need tax representation or help with the IRS. This is a delicate topic but can easily be dealt with if done right.

The IRS can seize assets, including your primary residence.  So yes, the IRS can seize your assets, including you house.  There is a practical side of how the IRS operates and the IRS collects the money that is owed.

Just because they can doesn’t mean that they will.  The IRS will have to get several approvals in the process, the area manager and then a Federal District Judge has to sign off on the seizure of a primary residence.

Tax payers not compliant in filing or payment for over a decade, the tax payer has a seriously ill spouse.  A Revenue Officer had been assigned to the case, threatened the tax payer that he would seize the primary residence and the baby grand piano.  This house was nearly paid off.

That is when the tax payer called us.

The tax payer had some cash, we advised him to first pay Indiana Department of Revenue.  In Indiana we always pay IDOR first, because IN doesn’t have a statute of collections and they levy the quickest.

We got him compliant in his filings, we established a corporate entity to formalize his self employment income.  We then setup a partial payment IA to repay the nearly $300k.  This tax payer is still a client 5 years after he hired us.

Please comment below if you have any question on this topic or seek tax representation or help with the IRS, as we would love to help out.

How Can I Evade Tax Penalties? This may be the most common question that we get.  The penalties are typically a large amount of money and most clients say something to the effect of, “If it weren’t for the penalties I could pay them what I owe them”.

The IRS’s policy is to use penalties as a deterrence for non compliance and failure to pay.

Penalties are too numerous in this space to mention all of them.  The IRS does have statutory authority to charge tax payers with penalties.  If you are not compliant and you have not fully paid, the IRS is charging you penalties and it won’t be long into our conversation before you ask if we can get rid of some of these penalties?

Penalties are asserted by the computer and system generated, not examined by a human eye.  If you want the IRS to abate a penalty, you probably need to show a reasonable cause for your non compliance or failure to pay.

Here is the value of a highly skilled tax professional.  What was the cause of your non compliance failure to pay the IRS?  Your professional representative needs to understand the underlying cause, your professional should be able to explain this the IRS.

Everybody has a story, but that may or may not be reasonable cause.

If you want to know what counts as reasonable cause, the IRS has a list on their website.  If you want a cogent articulate intelligent argument made on your behalf contact us immediately – (877) 489-8999

Many are concerned about the fact they may go to jail for not paying their taxes and may need tax representation or help with IRS documentation.This is a delicate topic but can easily be dealt with if done right.

Article Body: Yes, without tax representation and under certain conditions the IRS can and will send you to prison. Most of the cases that I read the sentences are 40+ months in a Federal Prison. So yes, if you haven’t found help with IRS matters, filed or if you have misrepresented your income on the tax return you filed, you may be in a lot of trouble.

The government has certain conditions that it must prove, what you don’t want to do is make any statement or perform any action that harms your defense. If the threat of a criminal charge is present, seek qualified representation immediately before you discuss your case with the IRS.

A Client came into our office to help with IRS matters and he was in tears. The IRS had found him “They Found Me!” This wasn’t the first time the tax payer had a run in with the IRS.

About a decade ago he had failed to file a bunch of tax returns and “They found him then to”. The IRS audited him, and prepared returns on his behalf. The tax payer went underground, he failed to make restitution and failed to file returns.

The seasoned revenue officer that was assigned to the case, looked at the tax payers previous record and looked at the tax payers current record and wanted to place our client in handcuffs.

Our work was to provide tax representation and keep the situation from escalating. We were hired to manage this case. Our job was to keep this case as a compliance and collection case, not a criminal case.

We filed returns and explained the following, the tax payer has a terrible financial history, he didn’t keep any of the money that he did not remit to the IRS and we explained the tax payer has a seriously ill child. These facts of the case prevailed and no charges have been filed to date.

Can I go to Jail For Not Paying My Taxes? You May Need Tax Representation Or Help With IRS

I represent many companies that owe back payroll taxes. This can be one of the most expensive engagements that we undertake. The complexity and the number of forms involved, make this type of an engagement very expensive.

After engaging our services, the first goal is to get the taxpayer compliant. Compliance involves, filing the correct forms, it does not mean that the taxpayer has paid anything yet. The taxpayer must be compliant or the IRS has no reason to work with you. If you are not willing to file the forms, why should the IRS work with you? My job is to get every client compliant. Depending on how many employees the company has, the number of years that need fixed, and the organization of the accounting records will determine how much must be spent on professional fees.

I have many clients that have paid me in excess of $50,000 to get them compliant and resolve the matter. Resolution is a different topic. I doubt any taxpayer has resolution, without compliance. But compliance does not equal resolution.

If you want to know how to resolve a very complicated payroll tax case, give my office a call. We will help you resolve your tax case, for the lowest amount allowed by the law.

If you or your company owe payroll taxes, and you have made some payments, you may be a candidate to allocate your payments.

This is an extremely complicated process. Do not undertake this on your own. You will need the help of a trained professional. This is not for the weak of heart.

If you fail to make all of the required payroll tax deposits, you may personally owe a Trust Fund Recovery Penalty. This penalty is assessed under IRC 6672. This penalty transfers the payroll taxes from a company debt, to a personal and a company debt.

If you have made deposits, the IRS may have posted the payment in their best interest. By requesting that the IRS allocate your payments, you can potentially lower the Trust Fund Recovery Penalty. What you are doing, is building a case so that the IRS will lower the amount of Civil Penalty IRC 6672 Penalty Trust Fund Recovery Penalty.

Tax Matters Solutions, has handled several of these cases with outstanding results. If you owe back payroll taxes, and the IRS Revenue Officer wants to conduct an interview, call me immediately. We can defend you, and protect your assets.

I apologize for not updating the blog, but I have been really busy.

I have settled a very very large case. I have settled a case that started in 2007. The client had not filed an income tax return, or for that matter, any tax returns in a number of years. The client owns a small business that had not filed any payroll tax forms, nor sales tax forms in a number of years. The business writes thousands of checks per year. This is the worst case scenario.

We dug into the project. The project started with a “coming to Jesus” meeting. This is the meeting where I explain to the client that there is going to be a substantial investment in accounting costs. Furthermore, there is going to be a bunch of representation hours, and that I don’t think the small business has any chance of surviving. The client owed about $1.2 million in total debt. The debt included credit cards, sales tax, payroll taxes, income taxes, penalties and interest.

The State of Indiana requires every small business to renew their retail merchant’s certificate every two years. We had to start the project by getting a trial balance for every year that the business had been open. Then we had to file the sales tax and Indiana withholding taxes. The client established an Installment Agreement with the State of Indiana, and over the course of 3+ years, he fully repaid the State of Indiana.

The client still had an IRS problem. While he may have satisfied his obligation to the State of Indiana, he had not dealt with the IRS. He was making a voluntary payment, until the IRS levied his wages. A little over a year ago, the IRS assigned his case to a local Revenue Officer. She requested financial information sufficient to complete a Form 433A. After providing the information, the IRS has granted a monthly payment of $326.

I am a small business owner. I am a CPA and I take great pride in those initials. To become a licensed CPA, I had to complete a Bachelor’s Degree of education, and pass a very difficult exam. After passing the exam, a CPA candidate must work for/under a CPA for 3 years. I completed my degree from Indiana University and passed the Uniform CPA Exam in 1998. That was a pretty busy year. I applied for and was granted my license in 2001. Since 2001 I have maintained a rigorous Continuing Professional Education CPE schedule. The current CPE reporting cycle expired 12/31/2011. For that reporting cycle I was required to have completed 120 hours of CPE. I completed over 180 hours of CPE.

I think I take my licensing and education very serious. I want to be the best professional that I can be. I want to help the greatest number of people that I can help. If you haven’t filed a tax return, or you owe back taxes, you should contact my office. We can help, taxes and your tax problem do not need to be overwhelming. The sooner you contact my office, the sooner we can get to work for you.