The Stir Over President Donald Trump's Tax Returns Could Lead to More Agressive Actions by the IRS


President Donald Trump's Tax Returns

 The recent story in the N.Y. Times about President Donald Trump's taxes has caused a stir to say the least. Some people are asking about Net Operating Losses (NOLs), Cancellation of Debt and the tax implications, depreciation of assets, abandonment of property, refund audits, and other tax questions. But this is interesting because combined with IRS initiatives to go after non-filers and get more aggressive against tax abuses this could lead to more pressure on and funding for the IRS to pursue these initiatives. The U.S. government needs money and it would not be surprising to see the IRS becoming more aggressive about pursuing taxes that rightfully should have been paid. 

IRS initiatives

The IRS has made it known that they are pursuing high income non-filers and they even warned that if you have not filed back tax returns that they are planning to send Revenue Officers to people's homes to get those tax returns. Now there could be even more action and more funding.

It seems to me like a storm of circumstances leading to a situation where taxpayers need to make sure they have their taxes in order. I help people file back tax returns and also help them negotiate payment arrangements with the IRS. I am working on several of these right now and it looks like there may be a wave coming of more of this type of work. 

Back Tax Returns and Tax Debts

If you need to file back taxes, clean up over aggressive tax returns, or need help with your tax debts, now is the time to act. Contact me today using my email address below to setup an initial consultation.





Jeff Haywood, CPA
The CPA Superhero
jeff.jhtaxes@gmail.com





Posts:





Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

Have an Identity - Running a Business or Filing and Paying Back Taxes - Know Who You Are


 Who Are You? - Identity - Culture - Miami Heat

Just living is great but if you want to really get somewhere in an inspired way you have to have a sense of who you are or who you are going to be. For your business you have to have a sense for who you are, an identity. Knowing who you are or will be will help you make decisions and find inspiration. For example consider basketball teams. Most basketball teams are trying to win by acquiring the best talent. That's it. They have no identity, their thinking is we will get the best players and coaches. Do they win?  No, not without an identity and what they call a culture. The identity and culture can change but you have to have one to really go somewhere. For the Miami Heat basketball team this year they basically built a team that is playing for the championship not because they have the best talent, because they don't. They are succeeding because they have a defined identity and culture and they look for talent that will fit that culture. They have not just assembled the best talent they could and hoped it worked out. No. They have specifically looked for hungry, driven, and yes talented players, who would fit what they are doing. They are known for having rigorous physical requirements including body fat percentages and they test their players. They are unique and they find talent that fits their identity and is inspired by what they are. Think about that, targeting hard working, hungry, people to South Beach. Talk about different. South Beach usually attracts the partyers. But the Heat are focused on hungry and hard working and it is working.

Nike

Let me give you another example, Nike. In the book "Shoe Dog" Phil Knight came to this realization when trying to convince an attorney to become the in house lawyer for Nike. To convince him to take the job he did not sell him on position, salary, perks, he sold him by describing who Nike is.  Here is the quote:

"We were trying to create a brand, I said, but also a culture. We were fighting against conformity, against boringness, against drudgery. More than a product, we were trying to sell an idea - a spirit. I don't know if I ever fully understood who we were and what were were doing until I heard myself saying it all that day to Strasser."

Strasser accepted the position. No mention of anything but this is who we are and what we are trying to be. That is most inspirational. People trying to build teams or a business and their pitch is we want to be number one. Inspirational? Not so much. Were fighting boringness, much better. 

So find out who are and who you want to be and let that guide and inspire you.

The CPA Superhero

I started my business by studying what others do and figuring out what I wanted to be. The typical CPA firm tries to do everything and get as many clients as they can. Not the CPA Superhero. I help people succeed and overcome obstacles. I do income tax returns, IRS representation, and business consulting. I don't do bookkeeping, payroll, and I don't just do any tax returns. I do tax returns for people and businesses where I can really help them. Your normal tax return, simple tax return, no thank you. I can't really make a difference doing those. I do more complicated business returns and unique individual returns, and trust and estate tax returns. I looked to create unique niches. So I have some restaurants, programers, internet sales, crypto-currency, and expats. Most all of my clients are dynamic business owners or investors, or people who have problems with the IRS and need help. My business clients want something more than someone to just prepare their tax returns. They want me to help them with their business and their decisions. 

Who I am and what I do has changed with the times or sometimes just my realizing this does or does not fit what I do. I fired a whole niche of doing tax returns and consulting because I realized the people in this market for the most part don't want to pay anything to anyone ever, and especially their share of taxes. This is not healthy. I have clients who are behind on paying their taxes and maybe filing them too but they want to change that. They actually want to change who they are and be responsible. I can work with people like that who want to become healthy and responsible. No problem. 

You - Your Business

What about you. Think about or tell someone who you or your business are or who you want to be. Does it inspire you? If not change it to something that inspires you. If you need to file and pay back taxes change who you are to be a responsible person of integrity. Create a brand and also a culture. With that identity in mind it will guide what you do and how you do it. If you want a dynamic CPA Superhero to be a part of it, contact me using my email below.




Jeff Haywood, CPA
The CPA Superhero
jeff.jhtaxes@gmail.com





Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

Filing Your Back Taxes - Whatever Comes, Just Don't Stop

 


"Whatever Comes, Just Don't Stop"

You have all these years of back taxes to file and all the fears and other negative emotions that come along with them. There are always reasons why you can't start or can't keep going, but really those are just in your mind. Well, they probably are real and they are excuses that could hold you back, but really you don't need  to stop. 

In all aspects of life things come up and your mind tries to tell you you cannot continue. There will be one thing after another. That is just life. For example, Phil Knight found one obstacle after another to making Nike what it is today. Even though at times it looked like it would fail and it felt as though he were looking over a cliff with no escape he and his team kept going because they were afraid to stop and afraid to fail because the alternative scared them to death. They were going somewhere, like runners they were going forward. 

"Whatever Comes, Just Don't Stop" is a quote from Phil Knight about his journey with Nike. Read the book and you will realize the biggest obstacle for him was getting started. Once he did he did not stop although for a while he tried to put it on the "back-burner", but because he had started, it impelled to continue forward. 

The biggest obstacle for you to get caught up on your back taxes is getting started. Once you get started it will impel you to keep going no matter what comes up or where it leads you. It is a journey that may not lead to a shoe company but it will open up your life to you and who knows what possibilities. Like everything else in your life what pleasures you find in the process you will find them from within. Each step of the way in resolving your back tax situation can be looked at as pleasures and gains. The alternative to getting starting and continuing should and will scare you so you keep going. 

Don't feel like you can't do it or that you are a failure. Consider the other things you have done. You know what, you can do this too. I am currently working with a hand full of people that need to file years of tax returns and pay the taxes. All of these people are accomplished people in one way or the other. I can only imagine what they will be able to accomplish once they have put their back taxes behind them. Like the guy on the bike in the picture they will briefly look back and say I am glad that hill his behind me. That will be you too. You just need to get started by contacting me to arrange an initial consultation about your situation. 

Initial Consultation

We will plan out the strategy to move forward given your situation and plan the next steps. You will feel better and you will be impelled to keep moving forward. To help you keep moving forward, for a limited time only - for the rest of this year, I am charging only $500 for the initial consultation. After 2020 the fee will go back to $1,000. From the initial consultation you will know what the plan is and the $500 can be applied to any work I do for you to resolve your back tax situation. So the consultation is really free because the $500 will be applied to the work I will do for you in this process. But the $500 gives you added incentive to keep going. It also tells me you are serious about doing this. 

Contact me today using my email address below to schedule an initial consultation. You will feel better that you took that first step and then even better after the initial consultation. Start now to remove that weight on your shoulders and get free to live your life.


The CPA Superhero
jeff.jhtaxes@gmail.com





Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

Owe Back Taxes - Need to File Back Tax Returns - Feel Better - Move Forward

 


Feel Better

You can feel better about yourself and your back tax situation even before you actually file your returns. This is common among my clients following an initial consultation. Typically they will tell me they feel better already.

The anxiety and other negative emotions that go with neglecting to file your tax returns is a heavy weight. My clients typically feel better after an initial consultation because on that consultation I spend time getting to know them and their situation and I explain how the process works and what I need from them to move forward. So far all of these clients have been surprised to learn there is a strategy involved for their situation and it is not just a matter of filing all these tax returns. In addition to filing back tax returns I also help clients to arrange payment arrangements if they cannot full pay. Sometimes too I am able to negotiate a settlement for less than what the client owes. It is important to realize there are important decisions to make before you file all those back tax returns so that the amount you actually end up paying can be minimized. And ultimately my clients can see the light at the end of the tunnel that they could not see before the initial consultation. 

For a limited time, the rest of 2020, I am charging $500 for the initial consultation which I will apply to any work the client has me do for them. So the initial consultation is really free because you are paying a $500 retainer before the initial consultation for work I will do to help you resolve your back tax issues. The initial consultation fee also helps the client to move forward because they are less likely to continue to procrastinate further once they "have skin in the game" to the tune of $500. It also shows me you are serious about getting this done. After 2020 the initial consultation fee will go back to $1,000.

The information I provide is worth much more than the $500 because the client learns what strategy we will develop for their situation and they know what to expect and what I need from them to get this resolved and put it behind them so they can freely move forward in their lives. At the conclusion of the initial consultation we also schedule the next step or conversation, because, as you know, sometime is just code for never.

More than just filing back tax returns

This is about so much more than just preparing tax returns. There is a strategy that will be needed to minimize the tax paid or get favorable payment arrangements. In addition, someone who has procrastinated filing their returns and paying their taxes needs someone to help them move forward and keep moving forward. the CPA Superhero can be that person for you. So contact me at the beginning of the process to help you minimize the amount you will pay. Save yourself some time and money.

Clean Up the Past and Move Forward With a Clean Slate

Many of my new clients this year have been people who need to clean up the past to move forward. Some are starting a new business and need a clean record to apply for loans. Others are starting a new relationship or tired of worrying about their mate finding out about their back tax situation. Back taxes are past events that were not taken care of and they now live with you in present. It is time to put them in your past and move forward. 

Contact me today using my email address below to schedule an initial consultation. You will feel better that you took that first step and then even better after the initial consultation. Start now to remove that weight on your shoulders and get free to live your life.


The CPA Superhero
jeff.jhtaxes@gmail.com





Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

Before Doing All Those Back Tax Returns - Read This!!!!


Before you do all those back tax returns there are a few things to consider. There are two important issues that can cost you or save you a lot of money. One is which returns have to be filed and the other is the sequence in which they are filed. Both of these strategy issues can mean a lot of money to you.

Do You Have To File All Those Years of Returns?

When it comes to filing back tax returns there are a few things you need to know. First, is you may not need to file all those years of returns. It depends on your situation but don't file all 10 or 20 years of returns when you probably don't need to file all of those. Instead contact me and let's talk about your situation and probably save you both time and money.

Does It Matter What Sequence You File Those Returns In?

The other thing you need to know before filing all those back tax returns is it may be extremely important in what sequence you file the tax returns. If you qualify for an Offer in Compromise it may be extremely important which tax returns you file first, the state or the federal. Again this may cost you money if you file without a strategy. Before you file all those returns contact me to schedule an appointment to discuss your situation and start working on a strategy to save you money. 

There is strategy involved with filing back tax returns and knowing what strategy to pursue is worth a lot of money to you. Perhaps a lot more than you would pay me to help you deal with your situation.  Taking care of back tax returns and taxes can be stressful. Don't go it alone. Get the help of an experienced tax professional who understands the strategies involved. You will be glad you contacted me

Contact me today and let's get started with developing a strategy to address your back taxes and keep you from paying more than you have to. I help people get caught up with filing tax returns and help them make arrangements with the IRS to pay those taxes. So contact me today using my email address below to contact me about arranging an appointment for a consultation and let's get going.

The CPA Superhero
jeff.jhtaxes@gmail.com




Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

Impact of Non-Filing and Non-Payment



Impact of Non-Filing and Non-Payment 

Non-Filing and Non-Payment are growing issues that the IRS is dedicating more resources to. You may not have filed some of your tax returns and or have unpaid taxes. What do you need to know?


First, there is a statue of limitations for the IRS to collect the taxes that you owe. That statute runs for 10 years from the date you file and the tax is assessed. So if you fail to file a tax return that statute for that tax year never begins to run and so the IRS can come after the taxes at any time. There is also no time limit for the IRS to collect if you file a fraudulent return. There is a lot more to this issue, but I have simplified to make the point that it is in your interest to file your returns and get that 10 year collection statute running. 


IRS Notices

It also helps you to be proactive and file before the IRS starts sending you notices. All kinds of clocks start running against you when the IRS starts sending you notices. Your rights to appeal an IRS decision or your right to go to tax court are limited in their duration and those time periods start running when the IRS sends you certain notices. You also get closer to the IRS sending a notice of intent to levy or file a lien on your property. Many taxpayers who have not filed wait until they get the intent to levy or file a lien notices. Others wait until their accounts have been frozen by the IRS to call for help. That is really a worse case scenario and a difficult one to deal with quickly. So act before the IRS even sends the first notice or if you have started receiving notices already act now

Penalties and Interest

In the seminar they mentioned it is also important to file because it can limit penalties and interest. Click here to go to IRS.gov post on penalties and interest

Options to Negotiate Payment Arrangements

One of the more important reasons for filing is so that you can apply for an Installment Agreement or an Offer-in-Compromise. In order take advantage of these provisions you must be in compliance. That means you must be current with filing your returns and making your tax payments to qualify for one of these relief programs. When helping clients negotiate payments with the IRS this is always the first thing we need to deal with, getting the client into compliance

Substitute For Return (SFR)

If you do not file a return, at some point the IRS will use the information it has received to file a Substitute For Return (SFR). When this happens there are several things that you won't like. One is there will not be credits available to you for this return. Second, your SFR will be filed with a filing status of Single or Married Filing Separately so you would lose the benefit of favorable statuses like Married Filing Joint, or Head of Household. Also, the ten year statute mentioned above does not begin to run. Any subsequent returns filed that show you are due a refund, those refunds will be held due to the unfiled return. Finally once a SFR has been filed the taxes from this tax year can never be included in a bankruptcy filing

The SFRs I have seen have been for taxpayers who came in because they could believe they owed that much money. One situation is with self-employment income. The SFR is calculated without regard to any expenses because the IRS only gets notice of your self-employment income. The other scenario I have seen is with stock sales reported to the IRS. I have seen these where the IRS did not have the basis reported so that the SFR showed the tax calculated just on the proceeds and not taking into account what you paid for the stock. In both of these scenarios I have helped taxpayers greatly reduce the amount of tax that they owed.

Act Now

There are many reasons you need to file a tax return. These are a few of them. Additionally many rushed to file tax returns this year in order to get a stimulus check. So don't waste time. Act now to get these returns filed. The IRS will pursue collecting taxes, penalties, and interest. Also, it is a legal requirement to file tax returns so this can become a criminal issue. Often times people have had some tragic event that has kept them from filing or they have just procrastinated and now the anxiety has built up. Stop carrying that weight, file those tax returns, and move on with your life. I help taxpayers to both file back tax returns and negotiate payment arrangements with the IRS. If you are afraid of what you might owe, then you first need to file your returns and second know that you may have options to help you satisfy your tax debts like an Offer-In-Compromise or an Installment Agreement.

Contact me today and let's get started in alleviating the weight on your shoulders from your tax burden. I help people get caught up with filing tax returns and help them make arrangements with the IRS to pay those taxes. So contact me today using my email address below to arrange an appointment for a consultation and let's get going.



The CPA Superhero
jeff.jhtaxes@gmail.com
2




Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

Can I Get An Offer-in-Compromise?

Offer-in-Compromise

I help taxpayers settle debts with the IRS and often they are interested in an Offer-in-Compromise or at times a taxpayer is unaware they can benefit from this provision. An Offer-in-Compromise aka an offer or OIC is where the IRS accepts less than the total amount owed by a taxpayer to settle the outstanding debt. Yes the IRS may consider this option but many don't really understand how the process works and they fail to obtain OICs much more often than they succeed. However, understanding the process, the options available, and the resulting strategies increase the likelihood of success. 

Myths about Offer-in-Compromise

There are many myths about OICs that you need to be aware of:

  1. You have to Offer at least 25% or the IRS will not consider it. Debts have been settled for much less in the right circumstances.
  2. You have to file the OIC when the IRS is really busy, during the tax season, to have a better chance of success. In reality, knowing how the process works it then does not matter when you submit the OIC.
  3. It is not worth it because the IRS never accepts OICs. I have successfully helped clients obtain Offers so this is not true. It again is probably someone who never learned the process and failed many times and has not resigned to never successfully filing an offer. 

The Process

The key in the process is understanding the IRS's Reasonable Collection Potential (RCP) calculation. The second key is understanding strategies available to reduce the Reasonable Collection Potential and hence the offer amount. As long as the offer amount meets or exceeds the RCP then the offer should be accepted. 


There are also two forms of offers, a lump sum and a periodic payment or Short-Term Deferred Offer. It is also important to understand these two options and the strategies associated with each one.

Qualifications

In addition to the RCP there are other requirements to get OICs accepted. According to IRS Topic 204 the following are also required to get an OIC accepted.

"To qualify for an OIC, the taxpayer must have filed all tax returns, made all required estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees."

Move Forward

The first step in filing an OIC is to file back tax returns and get current with your tax payments. This may seem daunting if you have not filed returns for years but I can help you with this. Believe me, you have been carrying around the weight of responsibility for this for too long. The time to get in compliance is now and then we can work on the payments with the IRS. In addition, penalties and interest can continue to accumulate. The sooner you get into compliance the sooner we can work out those debts and work at putting this behind you so you can move forward. 

An Offer-in-Compromise can be a financial lifesaver for a taxpayer. But OICs are complicated and involve a lot of strategy and a lot of work. In addition, there may be other options available to the taxpayer to help them with there tax debt, like an installment agreement. To know which option is best will require an evaluation of the taxpayers circumstances. Regardless of the time of year, it is always best to act quickly as the longer it is put off the more anxiety will be involved in moving forward. So to act now by contacting me to arrange a consultation to discuss your circumstances. I charge a small fee for the consultation which can be applied to my fees to represent you in negotiations with the IRS. The time to act is now so use my email before to contact me about scheduling a consultation.

These can be stressful times for taxpayers and negotiating with the IRS can add to anxiety. For me it is what I do and I can help you to try to get a resolution with the IRS for your tax debts. So contact me today using my email address below to arrange a consultation via a phone, Zoom, or Skype call.



The CPA Superhero
jeff.jhtaxes@gmail.com





Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

I Can't Pay The Taxes I Owe By The Due Date - What Should I Do?



Real quick, with the deadline for 2019 taxes coming up on the 15th. What should you do if you can't pay what you owe? If you can you should still file your return. Filing an extension is an option for filing but not paying. If you are going to owe taxes and you file an extension the taxes due are still due on the 15th for 2019 returns. So you should pay those with your extension if you file an extension.

Now if you can't pay the taxes due by the 15th, whether you file a return or an extension you still have choices. I would recommend that you pay what you can by the 15th and have a plan to pay the remainder. Typically the IRS will send you a billing notice based on the return filed. When you receive that notice you can call the IRS and ask for more time. Typically they will give you 120 days. Then before that 120 days end you need to be able to resolve what you owe. If you can't pay all of it by then then you need to work something out with the IRS. 

You may be able to file an installment agreement and pay it over time. With this COVID-19 pandemic many will not be able to pay their taxes due because of job losses. In that case other arrangements need to be made. Perhaps an Offer in Compromise can be made to settle for less than what you oweThere are different options that can be explored. 

Don't just ignore the problem as it will result in anxiety that you will carry with you until you get it resolved. Contact me to arrange a consultation for a date time after the 15th. We can discuss your situation and work on a plan to get your taxes paid or compromised. I will typically charge  you $500 for the consultation which can be applied to any work you have me do to help you resolve your tax debts. The $500 fee is for your benefit. When you make that payment you are committing to resolve the issue and you are putting money on it. Too many people to do not address the issue and they let it fester for years. When you have paid me for the consultation it will give you extra motivation to get this done and take action toward getting your tax debts resolved. So let's get going to resolve your situation.

These can be stressful times for taxpayers and negotiating with the IRS can add to anxiety. For me it is what I do and I can help you to try to get a resolution with the IRS for your tax debts. So contact me today using my email address below to arrange a consultation via a phone, Zoom, or Skype call.



The CPA Superhero
jeff.jhtaxes@gmail.com






Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

What Will the IRS Do If I Don't File My Returns


I am getting multiple calls a week now from taxpayers who have not filed back tax returns and they are worried about what the IRS will do. So what can they do? First, they want you to file your returns so they will send you notices as a reminder. But if after some time you don't file they have a couple of choices. The first is to file a Substitute for Return or they can summon you or your records.

A Substitute for Return

If the IRS has enough information about your income they can file a Substitute for Return (SFR) based on that information and send you a notice of the tax due. You can accept that SFR or you can file your actual return. In the case of stock sales or business income since the IRS does not have your cost basis or your expenses typically you will want to file your own return to get a lower amount of tax assessed. The third thing that happen is the taxpayer can not respond to the SFR. In that case it will go final and the tax on that return will never be dischargeable in a bankruptcy. In addition once the SFR is final the IRS can levy your accounts and file tax liens. 

Summons

The other option can be summons. The IRS can summons the taxpayer to appear with all their records at a set date and time. At that meeting the IRS will use your records to file a return for you. The IRS can also summons others like your bank(s) for your records so they can create a return. 

Basically what I have outlined here in a very simple way are a couple ways the IRS can proceed against you if you don't file a return or multiple returns. The IRS can get nasty but what they really want are the tax returns. Even if you get summons there are things to do so you don't have to appear based on the summons. But if you don't deal with it it can escalate to the Department of Justice who will order you to appear in Federal District Court with your records. The way you deal with it is get them what they want and I can help with that. 

As I have mentioned in other posts, often taxpayers don't file because they are afraid they are going to owe and won't be able to afford to pay what they owe. That anxiety can paralyze people but it does not relieve the anxiety. My experience has demonstrated that taxpayers often owe less in taxes than what they anticipated. 

What you need to do is file and the sooner the better for you financially and emotionally. In addition to the taxes you have penalties and interest that can add up. The other reason you need to file is for the ability to negotiate with the IRS to pay your tax debts. Typically something can be worked via an Offer in Compromise or an Installment Agreement, or other available avenues with the IRS. But no matter which resolution will work for you you need to first get in compliance by filing your tax returns. 

These can be stressful times for taxpayers and negotiating with the IRS can add to anxiety. For me it is what I do and I can help you to try to get a resolution with the IRS for your tax debts. So contact me today using my email address below to arrange a consultation via a phone, Zoom, or Skype call.



The CPA Superhero
jeff.jhtaxes@gmail.com






Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

Need to Renegotiate That Installment Agreement With the IRS?



Renegotiating Installment Agreements

With the current economic conditions taxpayers in installment agreements with the IRS may be wondering if their installment agreements can be renegotiated. In the current environment it is certainly possible that installment agreements can be redone with the IRS if you have had a significant change in your circumstances. A call to the IRS might be able to get this done but it also could and probably will get complicated. In some cases the IRS may call for financial information to redo the installment agreement. In other cases where you don't have income at this time there may be other options to be explored to either settle your debt for less or negotiate a lower monthly payment for now that will be reviewed later by the IRS to see if you can begin paying more when your income improves. 

Compromising an Offer in Compromise

Also, if you have an Offer in Compromise with the IRS a compromise of that compromise is allowed and specifically stated as a provision in the Internal Revenue Manual. 

Arrange an Appointment for a Consultation

The times we are living in are very unusual and in many cases negotiations with the IRS will require creativity and exploring new avenues to settle tax debts. These can be stressful times for taxpayers and negotiating with the IRS can add to anxiety. For me it is what I do and I can help you to try to get a different settlement with the IRS. So contact me today using my email address below to arrange a consultation via a phone, Zoom, or Skype call.



The CPA Superhero
jeff.jhtaxes@gmail.com






Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

The Stir Over President Donald Trump's Tax Returns Could Lead to More Agressive Actions by the IRS

President Donald Trump's Tax Returns   The recent story in the N.Y. Times about President Donald Trump's taxes has caused a stir to...