irs problems: Success Story #1 - 01/16/24 11:16 AM
A client came to me with a big IRS problem.  The Client had received letters showing an estimated $64,324 in Federal and State taxes were owed for the years 2013, 2014, 2015, 2016, 2017, 2018 & 2019.  In visiting with the client it was discovered returns were not filed because of the spouce's death.  
After obtaining Power of Attorney Forms for the IRS and the State, I pulled transcripts and discovered that Substitute for Returns was filed based on the income forms that the IRS and State government had received for those years. No additional deductions or credits were taken on the … (8 comments)

irs problems: IRS Red Flags That Can Trigger an Audit - 12/06/23 03:07 PM
The Internal Revenue Service (IRS) plays a crucial role in ensuring taxpayers' compliance with tax laws, and one way it achieves this is through audits. Understanding the red flags that may catch the IRS's attention is vital for taxpayers aiming to stay on the right side of tax regulations. In this blog, we will explore some common red flags that might trigger an IRS audit.
-Significant Fluctuations in Income: Consistency is key, and any substantial deviations from previous years may prompt further scrutiny.
 
-High Deduction-to-Income Ratios: Claiming a disproportionately high number of deductions in relation to your income could be a red flag.
 
-Incomplete … (11 comments)

irs problems: Understanding IRS Mail Audits: How to Stay Compliant - 11/29/23 02:53 PM
The dreaded IRS audit – a prospect that can send shivers down the spine of even the most diligent taxpayer. One common method employed by the IRS is the mail audit. In this blog post, we'll take a closer look at what a mail audit involves and how you can navigate this process with confidence.
Understanding Mail Audits:
A mail audit, also known as a correspondence audit, is conducted entirely through the mail. Instead of an in-person meeting at an IRS office, an auditor will send you a letter requesting additional information or clarification on specific items in your tax return. It's crucial … (31 comments)

irs problems: 7 Key Items About IRS Audits - 11/08/23 11:22 AM
An IRS audit is an examination of a taxpayer's financial records and tax returns by the Internal Revenue Service (IRS) to determine if the amount of taxes reported and paid is accurate. Some key things to know about IRS audits:
Selection Process - Tax returns are selected for audit either randomly or due to something triggering further review, like a discrepancy between income reported and income shown on W-2s. Only a small percentage of returns are audited each year. Notification - If you are being audited, the IRS will contact you by mail first. The notice will explain what items they … (6 comments)

irs problems: Exploring the Three Types of Offer in Compromise - 09/12/23 09:38 AM
There are three types of offer-in-compromise (OIC) options available to taxpayers:
Doubt as to Liability: This type of OIC is used when there is a genuine dispute about the tax liability. It is typically applicable when the taxpayer believes they do not owe the full amount claimed by the IRS.
Doubt as to Collectability: This is the most common type of OIC. It is used when there is doubt that the taxpayer can pay the full tax debt owed. To qualify, the IRS requires a comprehensive review of the taxpayer's financial situation, including assets, liabilities, income, and expenses.
Effective Tax Administration: … (0 comments)

irs problems: The Road to Offer-In-Compromise - 09/07/23 10:43 AM
In order for a taxpayer to qualify for an offer in compromise, they must file all necessary tax returns, make all necessary estimated payments, be free of open bankruptcy proceedings, and, if they are an employer, have made current and past quarterly tax deposits before applying for an offer in compromise. The IRS also takes into account a taxpayer’s income, expense, and asset balance to determine whether or not they qualify.2
Getting an OIC accepted by the IRS is not a walk in the park. While you can settle your tax debts below the full amount due, the IRS takes several factors … (1 comments)

irs problems: IRS Will Be Sending Notices Again - 06/01/23 01:03 PM
Many taxpayers owe the IRS money or haven't filed tax returns for a few years.  It has been a relief for these taxpayers as they haven't heard from the IRS.  They think the IRS forgot about them or they got away with something. 
However, the days of getting away with not paying taxes are coming to an end.  Watch my YouTube Video which explains why notices weren't sent out again and what is happening now.
https://youtu.be/6oEKGmOcXfA
We help individuals and businesses with their IRS problems. If you or someone you know is dealing with IRS problems, contact me at 702-469-9426 or candy@numbercruncherllc.tax.
 
 
 
… (2 comments)

irs problems: Understand Doubt as to Liability - 03/27/23 11:33 AM
"Doubt as to liability" is a term used in tax law to refer to a situation where a taxpayer has good reason to dispute whether they actually owe a tax liability. In other words, the taxpayer is sure they are not liable for paying certain taxes.
In such cases, the taxpayer can request relief through the IRS's Doubt as to Liability (DAL) process. This process allows the taxpayer to provide evidence or arguments to the IRS to demonstrate why they are not liable for the taxes in question.
If the IRS agrees with the taxpayer's arguments, it may reduce or eliminate the amount … (9 comments)

irs problems: When to Consider Bankruptcy for Tax Debt Relief - 02/28/23 02:04 PM
Tax debt can be discharged through bankruptcy under certain circumstances. However, it's important to understand that not all tax debts can be discharged through bankruptcy. The rules regarding the discharge of tax debt in bankruptcy are complex and depend on several factors.
Because it is a quicker process and does not require debt repayment, Chapter 7 bankruptcy is probably the better option if you need to discharge tax debts. But not everyone has access to Chapter 7. Your tax debt must qualify for a Chapter 7 bankruptcy discharge, and you must be eligible for Chapter 7 bankruptcy.
In general, tax debts may be … (11 comments)

irs problems: What to Do When IRS Problems Can’t Be Resolved - 02/21/23 11:27 AM
There are times when a taxpayer is unable to resolve their IRS problem.  When this happens, contact TAS, the Taxpayer Advocate Service. Taxpayers who are in financial trouble, seeking assistance in resolving tax issues that have not been resolved through normal channels, or who believe that an IRS system or procedure is not functioning as it should are assisted by TAS, an independent organization within the IRS.
To find out if you are qualified for assistance, you can get in touch with TAS by calling the toll-free case intake line at 877-777-4778 or the TTY/TDD 800-829-4059. You can also write or call … (5 comments)

irs problems: An Introduction to IRS Payment Plan Application Fees - 01/30/23 10:15 AM
IRS installment agreement application fees refer to the fees charged by the IRS for setting up a payment plan to pay off taxes owed. The fees are determined based on the type of agreement, the amount owed, how you apply, and if you pay by Direct Debit or Check.
If you are able to pay the amount you owe the IRS in 180 days or less, you can apply for a Short-Term Payment Plan. (This payment plan is only available to Individuals, not businesses.) The good news is that there are NO application fees for this payment plan, no matter how you … (4 comments)

irs problems: I Owe the IRS but Cannot Pay. - 01/23/23 12:56 PM
If you find yourself in the situation of owing the IRS and not being able to pay, the most important thing to do is, FILE YOUR TAX RETURN EVEN IF YOU CANNOT PAY THE TAXES OWED. This will eliminate the failure-to-file penalty and interest that would be charged if you do not file your tax return.
If you owe the IRS and cannot pay, there are several options available to you. One option is to set up a payment plan with the IRS, also known as an installment agreement. This will allow you to make smaller payments over time to pay off … (0 comments)

irs problems: How To Apply for Resonable Cause - 01/23/23 12:13 PM
There are two ways to request penalty relief for Reasonable Cause:  
Ask for it by a phone call Apply for it with Form 843 Over the phone, the IRS agent may reduce or eliminate some penalties. To request penalty relief for reasonable cause, call the toll-free number in the upper right corner of your notice with supporting documentation.
When you call, have this information ready:
The notice we sent you The penalty you want removed The reasons you think we should remove it During the call if you apply for reasonable cause but we "determined" you qualify for First Time Abate we … (4 comments)

irs problems: IRS Penalties - 01/06/23 12:23 PM
There are many penalties the IRS can assess.  Below are some of the penalties that pertain to individuals:
     -Failure to File
     -Failure to Pay
     -Failure to Deposit
     -Accuracy Related
     -Erroneous Claim for Refund or Credit
     -Dishonored Check
     -Underpayment of Estimated Tax by Individuals
There are a few ways you can avoid paying some IRS penalties:
    • File tax returns on time
    • Pay your taxes in full
    • Apply for an Extension of time to file a tax return
    • Set up a payment plan with the IRS
Like this post if … (4 comments)

irs problems: Right to Quality Service - 12/05/22 05:51 PM
Are you surprised to find out that you have the right to receive prompt, courteous, and professional service from IRS employees?  If an employee is not treating you in this manner, you also have the right to visit with their supervisor.   It's true. I promise!
What this right means for you:
Spoken to in a way that is clear and easy to understand Receive clear and easily understood communications  Most answers to your questions can be found on IRS.gov The employee should give you their supervisor's name and contact info if you ask Treated with courtesy If the IRS calls, they do … (4 comments)

irs problems: Right to be Informed - 11/28/22 02:20 PM
The Right to Be Informed. 
Taxpayers have the right to:
Know what they need to know to comply with the tax laws Clear explanations for all tax laws as well as tax forms, publications, publications, notices, and correspondences. Be informed of IRS decisions and their tax accounts Clear explanations of any outcomes This Means:
Certain notices must break out the amount you owe the IRS into tax, interest, and penalties Notices must also explain why you owe what the IRS claims you owe The IRS must clearly explain why they disallowed or partially disallowed a claim for a refund IRS.gov has a … (4 comments)

irs problems: Tax Payers Have Rights - 11/28/22 01:54 PM
IRS Publication 1, Your Rights as a Taxpayer, lists the 10 fundamental rights taxpayers have when they are dealing with the IRS.  As a taxpayer, you should be aware of these rights.  In fact, the IRS wants you to know these rights.  
The IRS does expect their employees to know these rights and apply these rights in every encounter they have with taxpayers.
These rights are:
The Right to be Informed The Right to Quality Service The Right to Pay No More than the Correct Amount of Tax The Right to Challenge the IRS's Decision in an Independent Forum The Right to Finality … (2 comments)

irs problems: Gift Card Scam - 11/26/22 08:43 AM
It is the holiday season and scammers are out in full force.
Watch the following video from the IRS concerning the Gift Card Scam:
https://youtu.be/Z9yRuyXt9vQ
If a call doesn't seem legit, it probably isn't.
The focus of our practice is helping individuals and businesses resolve their IRS tax problems in the Las Vegas, Nevada, St. George, Utah areas, and elsewhere. 
If you or someone you know is dealing with IRS problems, contact me at 702-469-9426 or candy@numbercruncherllc.tax.
… (6 comments)

irs problems: Pizza and Sales Tax Part 3 - 11/08/22 09:53 AM
In Parts 1 and 2, I introduced you to a pizza place that was not reporting its sales tax correctly.  This caused an audit and began a horrible nightmare with the state claiming the restaurant owed $87,000 in back sales tax as well as having their sales tax exemption taken away.  
Let's see how this problem was resolved.
After trying to work with the state auditor and manager and realizing they were not going to budge, we came up with a totally different plan.
It was suggested that the owner do a bit of research about moving to another state.  After he had some facts, … (9 comments)

irs problems: What is a Levy? - 10/13/22 10:59 AM
We can see from Tom's story that a Levy can cause many problems:   Financial Stress Loss of Sleep Contention in relationships Fear Just to name a few.  But exactly what is a levy?A levy is an actual seizure of taxpayers' property to pay a tax debt.  Don't worry, the IRS cannot just levy a taxpayer's property at a whim.  A levy can only be issued after the IRS has sent notices and the taxpayer has not contacted the IRS or has not set up or stopped making payments on an installment agreement. The focus of our practice is helping individuals and businesses … (9 comments)