Happy New Year!

We hope you are getting off to an exciting, happy new start this January. Every year seems to show great promise and 2019 feels like it could be a good one. Every year, however, also has its challenges and changes. As most of you probably know, the federal government has been partly shut down for over three weeks. This shutdown has affected the IRS, which has not been able to fully function. Although it may be a nice break not hearing from the IRS, our politicians cannot shut down the government forever. Recently, the IRS has promised that it will begin sending refunds to tax filers soon. The bureau also announced that tax season would start on January 28. But many accountants and taxpayers worry that the shutdown could spell trouble later in the year. Not only has the IRS fallen behind in answering questions, ithasn’t provided final regulations about [...]

By |January 18th, 2019|IRS|0 Comments

What Happens When the IRS Sends a Letter?

Every year, the Internal Revenue Service (IRS) audits thousands of American taxpayers and businesses. When that happens, it becomes stressful. If the government determines that money is owed, it will attempt to collect by adding penalties, filing tax liens against property and taking a percentage of wages. Most taxpayers are unprepared to meet such demands, even when if they feel that their mistakes are honest ones. Delinquent taxpayers who try to work with the IRS directly, oftentimes dig a deeper hole for themselves – despite their best intentions not to. Although the IRS agent auditing them may be courteous and even helpful, the auditor’s job is to make sure the government gets paid at the taxpayer’s expense. If the auditor suspects that the taxpayer is trying to hide important information or is not being truthful, the case could be assigned to the IRS’ Criminal Investigation Division. In fact, over half [...]

By |September 4th, 2018|IRS|0 Comments

The Danger of the Three-Year Tax Filing Rule

How long should you keep your tax returns? A lot of people are told that they should keep their tax returns for three years just in case the IRS decides to audit. After all, the IRS has a three-year window in which it can call for an audit after taxes are filed. Taxpayers also have a three-year deadline for filing an amended return to correct any errors that they had submitted earlier. However, there is a loophole to the three-year tax filing rule. If the IRS suspects that over 25% of reported income was not declared in a tax filing year, it can investigate the past six years of a person or company’s tax filings. If the IRS can prove that a taxpayer or business has filed a fraudulent return, the IRS can go even further back. The three-year rule has another catch. If a taxpayer doesn’t file an income [...]

By |July 27th, 2018|irs tax consultant|0 Comments

New Tax Provision Creates Passport Problems

Did you know that the Internal Revenue Service (IRS) now has the legal authority to revoke passports to those who want to travel outside of the United States? According to the “Fixing America’s Surface Transportation Act” (passed in 2015), the IRS has the power to instructthe State Department to refuse and revoke passports to Americans owing back taxes amounting to over $51,000 (including interest and penalties). In 2018, the IRSannounced that it will be enforcing that law. According to the IRS, an estimated 362,000 Americans will either be denied passports or their passports will be revoked this year due to delinquent taxes. For those already traveling outside the United States, the State Department will issue “a limited passport good for a direct return to the United States.” Here’s how it works: once the IRS has determined that a taxpayer has fallen behind on money owed the government, it will inform [...]

By |July 20th, 2018|Uncategorized|0 Comments

The IRS Can Now Revoke Your Passport If You’re Behind on Your Taxes

Taxes can be a complicated ordeal. Whether you file yourself or use a professional service, it’s important to be educated on the rules of the game. This year especially, thinking about the tax code causes stress and a whole lot of confusion. One piece of the incredibly long code is jumping up on people that didn’t know it existed. Section 7345 of the tax code is generally referenced for the criminal tax cases. There is however a new section that involves your passport. While the IRS can’t exactly swipe your passport from you, they do have the ability to send a certification to the State Department declaring you unfit for passport renewal. This can only happen if you owe a serious amount of back taxes to the IRS. Usually defined as $50,000 or more, being seriously tax delinquent can put a real damper on your travel plans. Now, being this [...]

By |December 13th, 2017|IRS|0 Comments

Do I Quаlіfу for the IRS Frеѕh Start Prоgrаm?

The IRS аnnоunсеd a nеw "Frеѕh Stаrt" рrоgrаm, dеѕіgnеd to аllоw tаxрауеrѕ to rеgrоuр financially, getting a nеw ѕtаrt оn thеіr fіnаnсеѕ. Thіѕ program provides tаxрауеrѕ an opportunity to lіmіt thе damage IRS tаx collection асtіvіtу mау have hаd on thеіr credit rероrt аnd сrеdіt ѕсоrе, thus іmраіrіng their аbіlіtу tо оbtаіn nеw сrеdіt or сrеdіt аt a fаіr mаrkеt rate. Thе IRS set uр thе Frеѕh Stаrt Program іn 2011 tо hеlр tаxрауеrѕ рау bасk tаxеѕ and avoid tаx lіеnѕ. Sіnсе іt was fіrѕt launched, thе IRS hаѕ mаdе ѕеvеrаl additions tо іtѕ tаx rеlіеf рrоgrаmѕ. Fоr mаnу уеаrѕ, thе IRS hаѕ оffеrеd ѕtrugglіng tаxрауеrѕ аltеrnаtіvе options tо pay thеіr tax liabilities. The Fresh Stаrt рrоgrаm rерrеѕеntѕ a compilation of ѕеvеrаl оf thеѕе alternative орtіоnѕ. Thе орtіоnѕ are nоt еxасtlу new, but thеу rерrеѕеnt some changes іn thе wау the IRS evaluates аnd рrосеѕѕеѕ payment аgrееmеntѕ and орtіоnѕ. Many [...]

By |November 21st, 2017|Tax Settlement Programs|0 Comments

Can I Settle My Back Taxes with the IRS For a Lower Amount?

There can be a lot of conflicting information on whether or not you can settle your back taxes for a lower amount with the IRS. With so much information to shift through on the web, we have compiled all the necessary information about what your options are, if you can really settle for a lower amount, and what it will take to get to that point. Firstly, the simple answer is yes, you can settle your back taxes for a lower amount with the IRS. However, there are many stipulations and rules you will face before you are able to achieve that goal. You can file a form with the IRS called an “Offer in Compromise.” On the most basic level, an Offer in Compromise technically allows you to erase most of the back taxes you owe by making an “offer” to the IRS of an amount of money you [...]

By |November 14th, 2017|IRS|0 Comments