Tax Debt Relief: The IRS’s Best Kept Secret

Showing posts with label 5 Reasons to Hire a Tax Law Attorney. Show all posts
Showing posts with label 5 Reasons to Hire a Tax Law Attorney. Show all posts

Thursday, November 5, 2020

Trucker Tax Help

Keep your receipts – a credit card statement and bank statement is not enough to prove an IRS tax deduction. If you buy fuel at a gas station the IRS does not know if you purchase food, beer or fuel without the receipt. The fuel receipt will prove that you purchased fuel. Therefore your receipt is evidence of your purchase. The IRS requires the credit card statement or bank statement and the Keep all of your receipts. Do you owe $10,000 or more in back tax debt

Receipts fade over time make copies of your receipts. Many stores today give receipts that fade over time and once they fade they cannot be read. If you have a receipt that has faded you have lost your IRS evidence to prove your tax deduction. I strongly recommend that every few weeks you take the time to copy all of the receipts that could possible fade. Copy as many receipts as you can fit on a page and then staple the original receipts to the copy. Therefore if you original receipt fades the copy of the receipt qualifies as IRS evidence of your purchase. Make copies of your receipts. Do you owe $10,000 or more in back tax debt?


Best Evidence for a tax deduction – The best evidence for any tax deduction is a copy of a cancelled check with the bank statement and the receipt or a copy of the credit card statement and the receiptDo you owe $10,000 or more in back tax debt? Call 866-562-2800 right now!

Do not pay for business expenses in cash – Try to pay all of your expenses with a credit card or check and get a receipt because this creates a paper trail to prove your tax deduction. If you have to pay in cash get a receipt and be aware that if you lose the receipt you lose your tax deduction. Do you owe $10,000 or more in back tax debt?

File your tax return even if you do not have the money to pay the IRS tax – The IRS imposes a Failure to File penalty and a Failure to Pay penalty. Therefore everyone should file the tax return even if you do not have the money to pay the tax to avoid the Failure to file penalty which can increase your tax liability by up to 25% over time. Remember you can always set up a monthly payment play with the IRS to pay the tax. So file your tax return on time. Keep in mind that if you do not pay your tax on time you will incur interest charges and Failure to pay penalty charges. Do you owe $10,000 or more in back tax debt?

Form 1099 for contract labor – The IRS requires that form 1099 be issued to any contract labor that is paid over $600. Therefore if you pay lumpers over $600 you are required to issue a form 1099. I strongly recommend that you obtain a copy of the lumper’s driver’s license, copy of their social security card and a receipt from the lumper. Also pay lumpers with a check not cash. If you do not get this information from the lumper your tax deduction for this expense will not be allowed by the IRS. Do you owe $10,000 or more in back tax debt?

Expenses under $25 – The IRS does not require a receipt for expenses that are under $25, however you are required to keep a diary and list what was purchased, the price and the name of the store that you made the purchase. If you do not keep a diary then get the receipt.
Keep a Diary – Keeping a daily dairy is an excellent way to keep track of your expenses, locations of your overnight travel for your Per Diem and a summary of your business. Having a diary is a huge help for you to remember things during an IRS audit. You can also list purchases that are under $25 so you do not need a receipt. I strongly recommend that you maintain a daily diary for your business.

Truck Expenses – Almost anything that you purchase for your truck is a tax deduction this includes but is not limited to: TV, microwave, coffee maker, computer, printer, car vacuum, pillow, bed sheets, tools, cleaning materials, load chains, GPS unit, jumper cables, air cleaner, CB radio, heater, fan, etc. keep in mind that these expenses add up to a lot of money over the year but if you do not keep track of your expenses you lose them. Do you owe $10,000 or more in back tax debt?


Consider hiring a bookkeeping service – Want to avoid all the hassles of keeping track of your business expenses and receipts, hire a bookkeeping service. You can find a bookkeeping service for under $100 per month and this service could save you thousands of dollars in taxes. Consider buying a Fujitsu Scansnap iX500 high speed scanner for about $400 to scan all your receipts into your computer and you can email the receipts to your bookkeeper. Even if you do not have a bookkeeper this scanner is an excellent way to keep track of your receipts and business documents. 

Thursday, October 22, 2020

Failure to Pay Owed Taxes

The majority of income tax issues including unfilled returns and unpaid liabilities are best resolved using one of the following five methods: Call 855-913-0249 for tax consultation. If your debt is very large, you can apply for an Offer in Compromise with the IRS.

Tax debt relief is opted for by people who have somehow failed to file their returns, which in result have made them liable to pay a repayment of back taxes. This is no doubt a severe and frightening state of affairs. This may occur due to various reasons. Call 855-913-0249 for tax consultation.

 Preparing an Tax Installment Agreement. 
 Placement into Tax Currently Not Collectible (“CNC”) Status. 
 Preparing a Tax Partial Pay Installment Agreement (“PPIA”). 
 Preparing an Offer in Compromise (“OIC”). 
 Filing for Bankruptcy - (under the 3-year rule, 2-year rule or 240-day rule.

Wednesday, August 26, 2020

Offer in compromise

“An offer in compromise (OIC) is an agreement between a taxpayer and the government that settles a tax liability for payment of less than the full amount owed.

The Service will accept an offer in compromise when it is unlikely that the tax liability can be collected in full and the amount offered reasonably reflects collection potential.Call (877) 541-6901 for tax consultation. If your debt is very large, you can apply for an Offer in Compromise with the IRS.

The offer in compromise process is really the heart of accounting. There are almost always extenuating circumstances surrounding the need to submit an OIC, but at its core, preparing an excellent OIC is a numbers game. Of course, there are ways of making an offer more convincing and negotiating is still important, but it is your job as a tax professional to make sure the numbers tell a compelling story. Tax Resolution clients, especially those who qualify for offer in compromise, are often desperate for a manageable solution to their tax problem.  We cover three types of OIC: • Doubt as to Liability • Doubt as to Conductibility • Effective Tax Administration We also cover the two OIC payment plans available and provide a handy guide at the end of the book comprised of relevant excerpts from the Internal Revenue Manual for quick reference. Call 866-562-2800 for free tax consultation

Doubt as to liability (DATL) comes into play when a taxpayer doesn’t actually owe the tax the IRS claims they do. This isn’t a question of amount or inability to pay the requisite tax, but rather a claim that a certain portion of the tax isn’t owed at all. Because doubt as to liability isn’t a question of finances, you won’t need to provide any of your client’s financial information to qualify for the offer. Doubt as to liability can be applied in numerous circumstances, some of which may include: • The tax was discharged fully in bankruptcy. • The statute of limitations ran out on collections. • The tax has been incorrectly or erroneously assessed. • The tax has been assessed to the wrong taxpayer. • The IRS misplaced an amended return. Call 866-562-2800 for free tax consultation

Doubt as to conductibility (DATC) is what most people associate with offer in compromise. This offer comes into play when the taxpayer doesn’t dispute that the tax is owed, but has no way of paying the full amount owed. A doubt as to conductibility offer will be based on what the IRS calls reasonable collection potential, or RCP. There are three components when calculating reasonable collection potential: equity, income, and allowed expenses. 

Disposable Monthly Income The IRS wants to collect as much tax as possible, but not at the expense of the basic well-being of the taxpayer. With that in mind, the IRS allows certain expenses to be subtracted from the taxpayer’s monthly income before claiming the rest. A taxpayer’s monthly disposable income can be calculated simply by subtracting IRS allowed expenses from their monthly income. IRS allowed expenses include: • Food, Clothing, and Misc. • Out-of-Pocket Health Care • Housing and Utilities • Travel and Transportation Coming up with the right allowed expense amount can require some finesse on your part. The allowances associated with the first two categories food, clothing, and misc., and out-of-pocket health care have fixed national standards you can claim without having to provide documentation. The second two categories housing and utilities, and travel and transportation have fixed maximums attached to them based on region and size of household. For these two categories, you are allowed to claim the amount actually spent or the local standard, whichever is less1 . When consulting with your clients to prepare a doubt as to collectible offer, consider expenses such as: • Child Care • Taxes • Health Care • Insurance • Court-ordered Payments • Union Dues • Legal Representation Fees (including your fees!). Call 866-562-2800 for free tax consultation

Friday, July 17, 2020

5 Reasons to Hire a Tax Law Attorney

Tax Law Attorney

5 Reasons to Hire a Tax Law Attorney

Tax Law Attorney

1. Why should you hire a tax law attorney? First, facing the IRS means that you either haven't hired an accountant, or your current accountant has done a pretty bad job of managing your finances. This means that it is already too late to hire another CPA to fix your problem. The IRS has already done the math, so you will be wasting resources if you hire another person to do it all over again. You need to focus on areas that you still need to prepare for. What you need is a competent tax attorney to help you with the legalities that you will be facing.

Tax Law Attorney

2. Another advantage that tax attorneys have over CPAs is a deep understanding of the ambiguity of tax law. CPAs are trained to recognize something as either black or white. They are trained to categorize things very specifically and may not recognize the various gray areas of tax law. A good tax attorney knows that the law can have a thousand different interpretations and uses this fact to your advantage. 

Tax Law Attorney

3. A tax law attorney can also help you by giving you truly complete advice. This is because they are experienced in matters involving tax laws. A tax attorney will be able to give you advice on different legal measures that you can take to solve your Tax problems. A CPA can only help you in terms of fixing your budget or computing your taxes but can offer very little help regarding how to fix your tax problems.

Tax Law Attorney

4. The IRS can use different techniques to intimidate you into paying the amount that they will insist you owe. People who are unfamiliar with the methods of the IRS often pay this amount without taking the time to question why. A good tax law attorney can help you get over your fear of the IRS and meet them on the legal battleground. A good tax attorney will have the resources necessary to help you overcome any intimidation tactics that the IRS may use to force you to pay
Tax Law Attorney

5. The best reason that you can have to hire a tax law attorney is the fact that taxes are based on laws. This means that taxes are the natural stomping grounds of tax attorneys. They know their ways around it and they know how to survive it. A tax attorney, on the other hand, can show you a lot of things you can do to legally get the IRS off your back. A good tax law attorney can help you by giving you various tips on how to compromise with the IRS and end up paying much less than what you might think is your due.

Tax Law Attorney