Not my problem, Santa!
Check out the linked video. It's a humorous look at a very serious situation which many of my clients are currently facing. Santa needed to acquire the services of a reputable tax consultant before it got this far.
Thursday, December 20, 2007
Tuesday, December 18, 2007
You say you haven't filed in a while?
Well, in my role as a tax consultant, I speak with people every day who have gone years without filing income tax returns. I have clients who've gone for as many as 17 years without filing, but IRS policy (in most cases) only requires that a taxpayer file their past six returns in order to be considered compliant.
This post from the tax consultant at www.irsmind.com explains the reason for this particular policy. What's going to happen when the IRS upgrades their system and they can keep eight or ten years on file? Will "compliance" mean that a taxpayer has to file additional late returns (and, therefore, significantly increase their tax debt)? If so, the price of compliance will rise dramatically, making effective representation more vital than ever.
This post from the tax consultant at www.irsmind.com explains the reason for this particular policy. What's going to happen when the IRS upgrades their system and they can keep eight or ten years on file? Will "compliance" mean that a taxpayer has to file additional late returns (and, therefore, significantly increase their tax debt)? If so, the price of compliance will rise dramatically, making effective representation more vital than ever.
Wednesday, December 12, 2007
Kinder, Gentler IRS No More
Recently, the IRS has begun rolling out new policies and new standards for dealing with delinquent taxpayers. It seems that the kindler, gentler approach that came to exist following the 1998 IRS Restructuring and Reform Act failed to produce increased compliance.
So, "treat 'em nice and they'll comply" has failed, so the IRS seems to be reverting to the "carry a big stick...and use it and then they'll comply" methodology that ran rampant prior to 1998. One particularly painful example of this phenomenon is the IRS' insistence on leaving wage levies in place until an agreement can be reached (for taxpayers owing more than $25,000), a process that can take months before IRS collections managers grant their final stamp of approval to the agreement.
If you're a delinquent taxpayer, deal with the problem before it reaches the point of a levy. You'll find the IRS much easier to deal with if you'll be responsive and proactive before they go to all the trouble of taking money from your bank account and/or paycheck. If you need a tax consultant to help you with this process, then find a reputable representative to assist you, but in either case, be sure to work with the IRS early in the process and you'll be glad you did.
So, "treat 'em nice and they'll comply" has failed, so the IRS seems to be reverting to the "carry a big stick...and use it and then they'll comply" methodology that ran rampant prior to 1998. One particularly painful example of this phenomenon is the IRS' insistence on leaving wage levies in place until an agreement can be reached (for taxpayers owing more than $25,000), a process that can take months before IRS collections managers grant their final stamp of approval to the agreement.
If you're a delinquent taxpayer, deal with the problem before it reaches the point of a levy. You'll find the IRS much easier to deal with if you'll be responsive and proactive before they go to all the trouble of taking money from your bank account and/or paycheck. If you need a tax consultant to help you with this process, then find a reputable representative to assist you, but in either case, be sure to work with the IRS early in the process and you'll be glad you did.
Subscribe to:
Posts (Atom)