overton nv: 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)
overton nv: 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 … (10 comments)
overton nv: 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)
overton nv: 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)
overton nv: 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)
overton nv: Pennies on the Dollar
- 05/23/23 04:01 PM
We have all heard the ads stating how you can settle your tax debt with the IRS for pennies on the dollar. Sounds amazing doesn't it? It is amazing but it is a long process and not everyone qualifies for the program. The program the ads are referring to is called Offer-in-Compromise (OIC). This program allows eligible taxpayers to settle their tax debt for less than the full amount owed. It's important to understand that the Offer-in-Compromise program is not a guaranteed solution, and the IRS evaluates each application on a case-by-case basis. To qualify for an Offer-in-Compromise a taxpayer must: Be … (9 comments)
overton nv: The Facts about Voluntary Disclosure
- 04/05/23 12:14 PM
There are 3 ways to clear up your tax situation with the IRS: Quiet Disclosure: This is where you submit past year's tax returns in a way that will not raise red flags with the IRS. You are hoping that you are able to file the returns quietly to become compliant with the IRS and continue to stay compliant. You will still be hit with failure to file, failure to pay penalties as well as interest. Correct Going Forward: This is where you make sure you file all your tax returns timely going forward. The Past stays in the Past. The hope is … (6 comments)
overton nv: Understanding the IRS Voluntary Disclosure Program
- 03/29/23 11:21 AM
Voluntary Disclosure is going to the IRS and telling them you have things that need to be cleared up and will they work with you. Why in the world would someone want to do that? Let's take a look at a few situations it is better to go to the IRS first before the IRS comes after you: Divorce Business partners turning on each other. Someone you work with is being audited and you fear the IRS will find you didn't report the money you earned from that client on your tax return. You hire undocumented workers. The first step is … (6 comments)
overton nv: Story Time: Client Receives Levy Notice.
- 03/14/23 12:13 PM
A client comes to me with her IRS problem. The IRS is stating that she is responsible for unpaid payroll taxes. I look over the notices and start giving her the different options that are available for her to pay off the tax debt. During our conversation she makes a statement, "I don't know why I am even responsible for these taxes. I didn't own the company." Whoa, stop the train. This comment changes the direction of the meeting. I asked her to explain. She informs me she was working for this construction company as a manager. The company went bankrupt. Now the … (6 comments)
overton nv: What to Do When You Receive an IRS Notice: A Step-by-Step Guide
- 03/14/23 11:27 AM
When you receive a notice from the IRS, I know you want to throw it away and pretend you never saw it. However, that can cause you much stress in the future. So, if you can't ignore the IRS, what should you do when you receive a notice from them? DON'T Panic Open the envelope and pull out the notice Carefully read the letter Review the information Do any required action, including making a payment Only reply if the letter tells you to Let the IRS know if you dispute the letter Keep the notice for your records Watch out for … (8 comments)
overton nv: Why Am I Receving a Notice From the IRS?
- 03/08/23 10:34 AM
2 / 2 IRS Notices are official documents that the Internal Revenue Service (IRS) sends to taxpayers to communicate important information about their tax return or tax account. The IRS issues a variety of notices to taxpayers to notify them about a range of issues, including: Changes to tax returns Tax balances due You are due a larger or smaller refund Verify your identity Missing or incomplete tax returns Requests for additional information Audits There is a delay in processing your tax return IRS Notices typically contain specific details about the issue at hand, including the amount owed (if applicable), the … (2 comments)
overton nv: What Happens to Tax Debt in a Bankruptcy?
- 03/01/23 03:22 PM
When an individual files for bankruptcy, their tax debt may be handled differently depending on the type of bankruptcy filing and the specific circumstances of the case. Here are the general guidelines: Chapter 7 Bankruptcy:In Chapter 7 bankruptcy, most unsecured debts are discharged, meaning they are wiped out entirely. However, certain tax debts may not be dischargeable, such as those for which a tax return was not filed or those resulting from fraud or willful evasion of taxes. If a credit card is used to pay off a nondischargeable tax debt, the credit card balance will also be nondischargeable debt if a … (10 comments)
overton nv: 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)
overton nv: 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)
overton nv: What Assets Can the IRS Levy?
- 02/21/23 10:59 AM
An IRS Levy can be issued against various types of property, including bank accounts, wages, vehicles, real estate, and other personal property. Once the IRS issues a levy, it will typically freeze the assets or property, and then seize or sell them to satisfy the debt. It's important to note that the IRS must follow specific procedures and provide proper notice before issuing a levy. Taxpayers have the right to appeal the levy and may be able to negotiate a payment plan or settlement with the IRS to avoid the levy. If the IRS determines that the levy is causing an immediate financial … (12 comments)
overton nv: 13 Assets the IRS Cannot Seize
- 02/13/23 07:24 PM
IRS Levy. These words evoke fear. Fear of losing money in your bank account, wages, your house, your car, and other assets. However, the IRS cannot seize any asset they want. I.R.C. § 6334(a) lists assets that the IRS is not allowed to levy. Wearing Apparel And School Books Fuel, Provisions, Furniture, And Personal Effects Books And Tools Of A Trade, Business, Or Profession Unemployment Benefits Undelivered Mail Certain Annuity And Pension Payments Workmen's Compensation Judgments For Support Of Minor Children Minimum Exemption For Wages, Salary, And Other Income Certain Service-Connected Disability Payments Certain Public Assistance Payments Assistance Under Job Training Partnership … (8 comments)
overton nv: 18 Types of Income the IRS can't Touch
- 02/13/23 06:53 PM
We are taxed on almost every type of income we receive. Believe it or not, if you were to embezzle funds, it is taxable. But I come bearing good news. Below are 18 types of income that are not taxable. Life Insurance Death Benefits Vacation Rental Income (If you rent your home for 14 days or less during the year) Combat Pay Gifts of $17,000 or less Gambling Income (If your winnings are offset by losses) Compensatory Damages Awarded for Physical Injury or Sickness Interest on Municipal Bonds Supplemental Security Income Black Lung Disease Benefits Disaster Relief Grants Inheritances Payments from State … (7 comments)
overton nv: Surprising Truth about Being Deemed Not Collectable by the IRS
- 02/07/23 06:50 PM
There are times when you acknowledge that you owe the IRS money but are unable to pay due to your financial circumstances. Your account may be placed in the status of Currently Not Collectible (CNC) if the IRS agrees that you are unable to pay both your taxes and basic living expenses. The IRS will typically not attempt to collect from you while your account is in CNC status. However, the IRS may keep your refunds and apply them to your debt, as well as continue to charge interest and penalties to your account. In accordance with the law, you will also … (4 comments)
overton nv: What You Need to Know About Updating Your Payment Plan with Ease
- 02/07/23 06:09 PM
Logging into the Online Payment Agreement tool is the first step in making any desired modifications. You can change your current plan's type, payment date, and amount on the first page. Then submit your modifications. You will be asked to adjust the amount of your monthly payment if it does not meet the requirements. You will be given instructions on how to fill out and submit a Form 433-F or a Form 433-B, if you are unable to make the minimum payment amount that is required of you. Enter your bank routing and account number to convert your current agreement to a Direct … (9 comments)
overton nv: A Beginner's Guide to Revising An IRS Payment Plan
- 01/31/23 09:06 AM
After you have been in an Installment Agreement for a while, you may find you can pay more each month or you are unable to pay as much each month as you thought you could. When this happens, you can revise the payment plan. After you click on the Apply/Revise button on the following page: https://www.irs.gov/payments/online-payment-agreement-application you will need to sign in to the Online Payment Agreement tool. You can change your current plan's type, payment date, and amount on the first page. Then submit your modifications. You will be asked to adjust the amount of your monthly payment if it does not meet the … (6 comments)
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. 
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