Internal Revenue Service

Daily Prompt: The IRS is Calling

Cute prompt for tax day. “Fret.”  Many are fretting today.  Not really sure why.  As long as you had your withholding done correctly during the year or have been paying your quarterly estimated taxes and self employment tax if you are self employed there should be no problem.  I’m not addressing business owners in this post.  Not really sure why so many wait until this deadline date to “race the clock” sending in their tax payments.

Some of the self employed get behind simply because they are not being responsible or budgeting properly and cannot really even afford to be running their own business or be self employed but try it anyway thinking they can omit expenses they are able ignore for the time being such as tax liabilities.  Some get behind because of unexpected expenses and overhead.  Make your decisions accordingly or your tax liabilities will begin to add up and accrue so many penalties and interest it will be very hard to make things right again.

Forget “pennies on the dollar” because unless you are truly in a hardship situation like dying broke or completely unable to make future payments, the IRS will never accept these offers.  Why should they?  Extenuating circumstances aside, why would anyone think that they should be the exception in paying their fair share of taxes while employed?

You can file for your 6 month extension at this time if you are still waiting for more paperwork for some reason.  There is rarely a reason anyone should file an extension since the extension is only for the filing, never for the tax due.  All payment of any tax is always due on the April 15th, 17th this year, deadline whether you file an extension or not.  If you do not send in full payment by this deadline expect additional penalties and interest to apply.

Be sure to address your various state and local income tax filing laws as well.

 

Daily Prompt: Simple Tax Information

The following is taken in part from my Finances & Taxes page. It offers simple information on filing and what to do if you ever find yourself with any Federal Tax Problem. Since most can be resolved by the taxpayer, this book will walk you through the needed steps to resolution as well as direct you to how to get help from the IRS if they are stonewalling you for any reason. You will be advised as to your rights and how to get the quick resolution you need without paying a third party thousands of dollars to do it for you.

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Taxes

It goes without saying that most of us pay various taxes.  I am going to do an overview of income tax or Federal tax.

We need to file by the same date every year, April 15th unless it falls on some half-baked holiday that DC cooked up a few years ago just to keep things interesting.  You know someone did this just to Mess With The IRS!  I will do a special post each year to advise you on the current due date.  Even if you decide to file a six month extension, you still have to have your taxes paid in full by that April 15th deadline.  This year, 2017, our tax deadline has been moved again to April 18th, a Tuesday.

Please be sure to always stay current on your filing or the IRS can file for you and they will not always be accurate, especially if you are self-employed because you will not be given credit for your expenses.  You can also receive various late filing and paying fines and penalties for being delinquent.

If you are self-employed always keep all your receipts and in an orderly fashion.  Some shove them helter skelter so that it would take forever for you or your accountant to file when you finally decide to and if it’s at the last-minute, time is of the essence.  I still know accountants who allow people to “tell” them what their expenses are without ever producing documents.  Be aware, they will file this for you, because you are paying them to do so but you are the one who will be held liable in any audit for coming up with proof of expenses.  A good accountant would not allow you to do this and would never tell you to “just say” you have a certain amount of expenses that you do not.  Some try to risk it, but you will have to pay back any refund received as well as interest and penalties due.

Filing timely and paying timely and sufficiently are the most important things to remember for everyone, wage earners as well.  Please be sure to fill out your W-4’s correctly when you hire on so that enough withholding is being taken out.  I used to purposely do less withholding to get more back at the end of the year as a “forced savings” for myself.  I got a letter from the IRS telling me not to do this.  They do not appreciate sending refunds, if they can avoid it.  You have to remember this was money they withheld on good faith trusting that the employee filled everything out accurately for their withholding.  There are some that claim way more dependents than they really have so that they can receive more of their money during the year and then play hell trying to pay everything they now owe because of it.  Most that pull this have no intention on paying it back.  They are the delusional that think they can hide from the IRS.  But as I explain in my book “Don’t Mess With The IRS” you can run, but you can’t hide!

I am not going over anything for the small business at this time right here and I would prefer that anyone owning their own business with questions refer to all the information and help that is offered at irs.gov for small business self-employed.

If you ever find yourself with any Federal Tax problem or issue “Don’t Mess With The IRS” has all the information you need to resolve any and all tax problems by yourself.  In almost all cases, you seldom if ever need a tax specialist or third-party to do this for you.  They charge a lot of money and cannot do anything that you can do yourself.  In other words, they may know more than you, right now, but they do not have any special jurisdiction or immunity when it comes to tax resolution than anyone else even if they are certified or licensed in their specific occupation.  That two thousand dollars you pay them, at least because they don’t work cheap, will go to them needlessly instead of being applied to your tax due.  Believe me, it is rare to ever qualify for “pennies on the dollar” or what is known as an Offer in Compromise.

This book takes you through what to do before you call the ACS collection area of the IRS, how to secure legitimate legal representation if needed, what to expect to do to resolve the basic problems most taxpayers have with the IRS and find out all the rights you really do have as a taxpayer.  You cannot play games with them and I don’t show you anything that foolish.  I offer the legal way to resolve your tax problems to your benefit and what to do if your problems are not being resolved timely or properly by the agency.

Daily Prompt: “Rectum, Darn Near Killed ‘Um!”

When I used to work in the Automated Collection System for the Internal Revenue Service there was an email that made the rounds that someone started to make us feel better about our highly stressful position.  It claimed that there was someone who actually tested the anal thermometers so I guess that was supposed to make us feel better about the daily reamings we received dealing with the angry taxpayer calls when they found levies on their bank accounts or liens on property.  We did the dirty work for them.

According to Snopes.com, it was a joke.  Click on the site if you wish to hear the whole story.

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Tax Problems?

Shortly after leaving the Internal Revenue Service I sat down and wrote a book to help all taxpayers based on what I experienced in their collection area.  After actually being in the belly of the beast, the very heart of what the IRS exists for, I saw that they were really not as bad as people tried to make out.

In the past I had a couple of issues with them because I did not claim some early retirement withdrawal in which tax was withheld before I received it and I genuinely thought I didn’t have to declare it because they had to have already known about it.  Oh how innocent I was!  Another time I didn’t realize there was something called EIC that I qualified for because of a drop in my income.  I’m sure many people don’t know any better when they are about to file.  In fact most IRS issues are genuine failure to follow through because you think you are not liable to do something from filing to reporting things.  The IRS will give you the benefit of the doubt if this is your first time making the mistake.  If it slips your mind again, forget it and that’s only fair.  One time I owed tax the other instance, they gave me a refund because of a credit I didn’t know I had coming.

Most of the time I handled the incoming calls from those that had levies and liens issued against them.  That is the area that also issues these collection actions.  The taxpayers are sent several notices before their cases are transferred to the Automated Collection System for further collection action.  They will try to call you and send you additional notices depending how many you were previously sent.  If you don’t call within the time frame given, they will issue liens on any property you may have and levy bank accounts or your wages.  You have to respond even if you cannot pay or don’t plan to file.  It will go much better for you and the representatives will go over many options to resolve any issues you have that you probably are not even aware of.  They will actually be able to stop or prevent collection against you regardless of what you owe if you are currently in a hardship status.

My book was to let people know easiest and best ways to resolve their individual tax problems without the added expense of a third party.  It is very easy to deal with the IRS.  There are not ways they will trick you or any other such nonsense.  Make no mistake they will want you to “full pay today” as they are required to ask you, but as long as you tell them what you are able to do, they will work with you.  Many so-called tax resolution experts are not who they say they are and most are either fraudulent or incompetent at best.  In the years I was there, we talked to thousands of people that were defrauded by just such people by thousands of dollars they could have used to pay towards their tax liabilities or used towards an Offer-in-Compromise if qualified.

Notice how the tax resolution commercials all seem to say to contact them if you owe over $10,000.  That’s ridiculous!  Any legitimate expert will take your case regardless if you owe anything and work out a reasonable fee with you.  These companies hope that the more you owe, the more you won’t miss the $2,000 on up fees for pretending to represent you.  Yes there may be legitimate tax accountants and attornies, there has to be, but don’t just go with anyone.  Make sure who you are dealing with before you make any business deals or sign anything.  Be sure they are referred by someone you trust and respect.  There were many that were taken advantage of by relatives or relatives of friends of theirs.

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For the time being, I can no longer offer “Don’t Mess With The IRS An Unauthorized Customer Service Guide to Resolving Your ACS Collection Issues.”

I promise to post more information regarding tax information and resolution in short increments in the future.

IRS Self-Help

I apologize that I have sorely neglected information regarding IRS tax resolution, which I used to do for a living.

As an expert in IRS tax collection matters, I am recommending “Don’t Mess With The IRS” as an inexpensive way to resolve any ACS tax collection issue from non-filing to options for paying any penalties or back tax.

The book also covers very important information on how to go about resolving your issues so that you cover every base.  What to do before you call such as having a working pen and paper to write down ALL the information you are given because deadlines are very important and time frames to resolve are always given to the taxpayers.  How to get legitimate legal representation if you should need it is covered as well as what you can expect during your initial contact with the IRS.  This book is invaluable if you have any Federal tax issues or expect to have them.

For the time being, I can no longer offer “Don’t Mess With The IRS An Unauthorized Customer Service Guide to Resolving Your ACS Collection Issues.”

 

Last Minute Tax Filing Tips

April 15th is just around the corner with many people waiting until the last-minute to do their filing, especially when they owe tax.  Those of you that were expecting a refund have probably filed by now.  Times have changed and gone are the days of running off to H & R Block or various tax preparers and having to pay to get your taxes prepared.  The only exceptions are wage earners over a specific dollar amount as well as the self-employed or business owners.  Hopefully you are working with a regular accountant or preparer you can trust if you own your own business.  If not, then please refer to irs.gov for information on tips to help you choose a tax preparer.

There are filing software programs available, but most are no longer needed for the average employee.  There are so many free ways you can file online, at a local IRS office or with various volunteers that make their time available after proper training with VITA and TCE for those who qualify.  For more information regarding free filing please go to the official IRS website, irs.gov and select the type of filing that you will be doing.  Most are wage earners, Individual, but some of you are self-employed or own small businesses of some kind.

ALERT:  A very important tip that many are not aware of is if you elect to file an extension to file, which is an automatic 6 months for individuals and either 5 or 6 months for some business forms or information, there is NEVER an extension on the payment of any tax due.  Refer to irs.gov for more information.  Many people stall filling because they didn’t have proper withholding during the year or did not pay an accurate amount of self-employment or estimated taxes during the year and end up with a balance due.  If this is the only reason you are filing late, don’t even bother.  The reason being is you could end up with additional penalties and interest filing an extended balance due return.

The best way is to file your individual return timely and find a way to send the full amount of the tax, even if you might have to borrow or send your return manually with the form 9465 completed in full attached for the request to pay your tax in installments.  You will end up paying interest to them by doing this, but this prevents any collection action against you in the forms of liens on your property or levies on any wages or bank accounts.  If you owe more than $50,000 in tax then you must also include the form 433-F which is a financial information statement.  Please be sure to state the amount you are able to pay with the request.  If you owe more than $50,000 you will still state what you are able to pay, but your financial information will determine what the IRS thinks you are realistically able to pay at this time.  Sometimes it’s more than the requested amount, sometimes it’s less because they don’t want the taxpayer defaulting on the Agreement by overstating what they can pay.

If you happen to live in an area that is currently designated a Federal Disaster area you may have already received information regarding any extensions for paying or filing in your area.  If not, please refer again to irs.gov for to see if you qualify if you are not working with a tax professional that has this information.

Again, if you find yourself in the ACS Collection area of the IRS or know someone who is.  Please go to Amazon.com to purchase my self-help book that will walk you through the fastest and smoothest way to resolve whatever problems you are having as well as suggestions to prevent future problems and prevent collection action such as liens and levies.  It was written to help the average taxpayer from having to give thousands of dollars to a Tax Specialist that cannot do anything more that they can do with a little knowledge.  And this is not even taking into consideration the number of so-called tax specialists that are either incompetent or down-right frauds.  In the past I have worked with thousands of taxpayers that were taken to the cleaners by so-called tax experts.

For the time being, I can no longer offer “Don’t Mess With The IRS An Unauthorized Customer Service Guide to Resolving Your ACS Collection Issues.”

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I will be posting additional Federal Tax information soon because there is too much to cover for one blog post.

Federal Income Tax Tips

I wanted to devote this post to general Federal income tax information of a nature that many may not be aware of.

  1. First of all you need to verify if you are even liable to file this year.  Find out.
  2. If you are liable, you need to know that the IRS has links from its website for many that qualify for free filing.  Verify if you qualify.
  3. You need to know if you are in an area the Federal Government has deemed an official Disaster Area.  This may effect your filing requirements.  To verify.
  4. You need to be VERY careful in selecting and working with any tax preparer if you go that route.  Many are not who they claim to be.  For more information.
  5. Never work with someone claiming they can get you a larger tax refund unless they can fully explain how they plan to do this.  YOU will answer to anything fraudulent your preparer does.  For more information.
  6. Don’t even dream of trying to pull one over on the IRS because there is nothing you can do they won’t catch you at.  I used to work for them.
  7. Self employed individuals, don’t allow any tax preparer to write things off that you don’t have receipts for because they have started auditing small business / self-employed regularly and if you don’t have documentation, you will end up having to pay back taxes with additional penalties and interest.  Small business & self-employed information.
  8. Also be aware that if you currently owe back taxes or are in arrears with child support or other payments, any refund will be typically offset to pay these debts.  For more information.
  9. If you are planning on filing for an extension, please remember that the extension is for the forms only.  All tax due must be paid no later than April 15th or risk penalties.

If you already find yourself in the ACS Collection area of the IRS there is something you can do to help resolve your current or future tax problems.

“Don’t Mess With The IRS An Unauthorized Customer Service Guide to Resolving Your ACS Collection Issues” was written to walk any taxpayer through the most common IRS tax problems from first contact to final resolution. DntMsWIRS5

You do not need to hire a professional that will charge you thousands of dollars that you could be applying to the tax you have due.  They are not able to do anything legally that you cannot do for yourself with a little knowledge.

This self-help book walks you through your initial contact with ACS, if and how you should select legal representation if you should want or need it, how to resolve the basic problems of Failure to File, any Balance Due situations and what your rights are as a taxpayer.

For the time being, I can no longer offer “Don’t Mess With The IRS An Unauthorized Customer Service Guide to Resolving Your ACS Collection Issues.”

Don’t Mess With The IRS

Don’t Mess With The IRS An Unauthorized Customer Service Guide to Resolving Your ACS Collection Issues is an overview of much-needed information on what to expect when you contact the IRS for tax resolution after your case has been sent to Collections for Individuals, the self-employed and small businesses.  It covers various topics including unfiled returns, various tax deficiencies and the  penalties and interest involved.  Explains how to resolve most issues and what to expect when you are not compliant and how to address any collection actions such as liens on property and levies (ganishments) on your banks or your wages. 

This book tells you what your options are when you feel your back is up against the wall with your Federal taxes and what your rights are as a taxpayer.  You will be coached and warned how you can legally resolve most issues without the help of any costly tax resolution company, that will sometimes cause you more harm than good.  Shows you how you can prevent collection action as well as how to get your levies released and depending on the issue, a lien withdrawn, not released.  The book explains how important it is to know the difference between the two.  The ever promised “Offer in Compromise” (pennies on the dollar) will be explained so you can verify in advance if you even qualify for it.  Few do, but most tax companies will lead you to believe otherwise.

This book is currently unavailable.

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