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.
Thursday, November 15, 2007
Need Help in Dealing With the IRS? Act Quickly!
In my role as a tax consultant, I encounter people every day who need help in dealing with the IRS. Far too often, these individuals wait until the situation has reached a critical stage before they seek assistance.
If you are hearing from the IRS, whatever you do, get help soon! The earlier you take action, the more options you have available to you and the more favorably the IRS will view you. I know it sounds simple, but you'd be amazed how many people ignore the problem and hope it will go away. 98% of the time, it won't!
The IRS has recently changed its policy. Now, if you wait until the IRS levies your wages (if you owe a significant sum), they will not release the levy until you have submitted your financial information and it has gone all the way through the approval process with a collections manager. This process can easily take 8 to 12 weeks! Don't wait, get IRS help now!
If you are hearing from the IRS, whatever you do, get help soon! The earlier you take action, the more options you have available to you and the more favorably the IRS will view you. I know it sounds simple, but you'd be amazed how many people ignore the problem and hope it will go away. 98% of the time, it won't!
The IRS has recently changed its policy. Now, if you wait until the IRS levies your wages (if you owe a significant sum), they will not release the levy until you have submitted your financial information and it has gone all the way through the approval process with a collections manager. This process can easily take 8 to 12 weeks! Don't wait, get IRS help now!
Wednesday, November 7, 2007
Pay As You Go
In my occupation, I work with taxpayers who have run afoul of the IRS for various reasons and are now, wisely, seeking to deal with their tax issues. Many of these taxpayers are self-employed individuals who get themselves in trouble by failing to make their quarterly estimated tax payments (1040ES). Then, they file their return with a large balance due and, guess what? That's right, they just don't have the cash in the bank to pay the balance due.
I used to be in the same situation as many of my clients. No, I never had a tax debt which I couldn't pay in full at filing, but I was self-employed and was required to make estimated tax payments. However, I rarely made these payments, partially because I was never aware that the US tax system isn't designed to "settle up" at the end of the year. It's actually a "pay as you go" system. Those of us who earn wages and whose employers withhold our taxes from our checks, actually pay as we go by having these withholdings taken and passed along to the IRS throughout the year. When you're self-employed, it's your responsibility to save enough of your income to send to the IRS each quarter. If you fail to do so, the IRS will assess penalties in order to recover the interest they lost by failing to receive your taxes on time.
Of course, if you make your quarterly estimated tax payments, there's much less chance that you'll end up owing at the end of the year and really making life difficult for yourself. If you've already got a tax problem and need help, talk to a tax consultant at Effectur, Inc. Remember, a small problem with the IRS today can become a huge problem down the road if you fail to deal with it!
I used to be in the same situation as many of my clients. No, I never had a tax debt which I couldn't pay in full at filing, but I was self-employed and was required to make estimated tax payments. However, I rarely made these payments, partially because I was never aware that the US tax system isn't designed to "settle up" at the end of the year. It's actually a "pay as you go" system. Those of us who earn wages and whose employers withhold our taxes from our checks, actually pay as we go by having these withholdings taken and passed along to the IRS throughout the year. When you're self-employed, it's your responsibility to save enough of your income to send to the IRS each quarter. If you fail to do so, the IRS will assess penalties in order to recover the interest they lost by failing to receive your taxes on time.
Of course, if you make your quarterly estimated tax payments, there's much less chance that you'll end up owing at the end of the year and really making life difficult for yourself. If you've already got a tax problem and need help, talk to a tax consultant at Effectur, Inc. Remember, a small problem with the IRS today can become a huge problem down the road if you fail to deal with it!
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