What Should I Do if the IRS Calls?
 by TaxRezPro

What Should I Do if the IRS Calls?

What Should I Do if the IRS Calls?

There are a number of things you can do to help things go smoothly when dealing with the IRS and representatives:

Remain friendly

Being confrontational will make the IRS agent less likely to work with you on a tax resolution or be helpful. Remember that the IRS holds all of the power in this situation; you cannot scare or coerce them into taking your side.

Be patient

The IRS can be very repetitive and detail-oriented which can become tiresome and frustrating to many people. But, it is a necessary part of the tax resolution process; complaining will not help your case.

Change-of-address

If you have moved, notify the IRS by filling out their change-of-address form (IRS Form 8822). This will ensure that you get important notices on time and help keep you from missing deadlines.

Always respond to notices or letters from the IRS

Respond promptly but only after you are certain you understand what the letter means and what is being asked for.

Ask for the name and ID number of any IRS employee who calls you

To be safe it is best to check and make sure that you are actually dealing with a real IRS employee and not give any detailed information until you confirm that the call is legitimate.

Stay Calm

It is understandable that you might be fearful or nervous when facing the IRS even if you have done nothing wrong. However, such nervousness may give the impression that you actually do have something to hide. Proper guidance through the tax resolution process is essential.

Of course, considering the stakes involved, this is much easier said than done. No matter what you do you will always be at a disadvantage when dealing with the IRS. Most taxpayers have little or no experience in handling tax problems, tax resolution, and the IRS collection process. However, the IRS agents you will be facing are the absolute experts when it comes to dealing with taxpayers like yourself. It is their job. It is what they do every single day of their working lives. And, while most people know very little about the myriad of details and nuances of the tax code the IRS knows every rule and every tool they can use against you. The IRS literally knows every trick in the book because it is their book, they wrote it.

When you do have tax problems and are seeking a tax resolution, your odds of success will be heavily influenced by how well you communicate with the IRS and its employees or agents.

There is a solution to every IRS problem! Let us help you stop worrying and start living!

Contact Us Today

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Featured / Tax / Tax help
How to Prepare For a Tax Audit
 by TaxRezPro

How to Prepare For a Tax Audit

So, you’ve done your taxes and the IRS has sent you a letter that you are being audited. You may feel like the walls are caving in, you’re having panic attacks, and you have no idea what to do. Taking a deep breath and reading this article can help you prepare for an audit. You don’t have to be nervous. The IRS audits are just trying to figure out if your income and figures match; it simply inquires about your tax return. The IRS defines an audit as,” to determine if income, expenses, and credits are being reported accurately.” Here are a few tips on how to prepare for a tax audit.

How Do I Handle an IRS Audit?

The first step to handling an IRS audit is reading and acknowledging the notification letter. Don’t ignore the IRS letter, even though it might seem easier and tempting to ignore bad news. Read it, read slow, and read it again.

Check the letter is legitimate and notifies you of an audit. An IRS audit letter will come to you by certified mail, it will include personal information such as name, taxpayer ID, form number, and employee ID number. Just because you receive a letter from the IRS doesn’t automatically mean you’re being audited.

Read which year in question they are auditing, and what documents they are specifically asking for. Prepare all the necessary returns and explanations for the representatives.

Types of IRS Audits

There are different types of IRS tax audits. These are:

  • Correspondence Audit
  • Office Audit/In-person Audit
  • Field Audit
  • Taxpayer Compliance Measurement Program Audit

Preparing for An In-Person Audit

If you’re going for an in-person interview, there are steps you can take to prepare. There is a physical interview at the IRS office where you will speak with IRS employees. It is possible that the IRS will ask for proof of abnormally high deductions.

Gather the necessary returns and explanations that were requested in your IRS letter in preparation for this office audit.

During this audit, don’t say more than what is asked. Offer no more documents than what was requested. Saying more leads to more questions, so say less.

If you feel that an attorney is necessary, you have the right to have him or her present.

Preparing for a Correspondence Audit

Correspondence audits, also known as mailed-in audits, involve the IRS requesting additional information, such as receipts or canceled checks, regarding your tax return. In many cases, this audit will only ask you to correct a simple mistake that you can correct by mailing in all the correct documents. Providing the correct documents and reading your letter carefully can simplify these audits.

Preparing for a Field Audit

The last type of IRS audit is a field audit. This is where the IRS may actually come to your home or to your job. This can be scary but remember to breathe and don’t offer information if you aren’t fully prepared. Remember if you feel that you need an attorney or tax professional you can request to have the audit done in their office.

Tips for Preparing for an IRS audit

  1. Understand the Issue
    To better prepare yourself for any of these types of audits, read up on the tax laws that are specific to the problem. Knowing this information will better prepare you for questions asked by the auditor and leave them more satisfied with your answers.
  2. Be polite and honest
    When being questioned be polite and courteous and answer each question truthfully. It is not wise to lie to the IRS.
  3. Gather the right documentation
    Make sure that all the documents presented are accurate, clear, and on time. Be sure you have all the documents at the auditing. If you have all the correct information the auditing process will run much smoother.
  4. Request more time
    If you feel that you need more time to prepare for the audit you can request it. Don’t hesitate to let the IRS know. You can go on their website and request more time to prepare.

What Happens After an IRS Audit?

Once all the auditing is wrapped up you will receive an examination report, which is wise to look over carefully for anything that might confuse you. Don’t hesitate to call the IRS and ask about anything you need to clarify. If you disagree with a finding let them know, so that you and the auditor can come to a compromise.

If you follow these tips then the audit process will be a breeze, or at least a little easier to handle.

You can learn more about the different types of IRS audits and what happens in an IRS audit in our dedicated blog post.

There is a solution to every IRS problem! Let us help you stop worrying and start living!

Contact Us Today

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax / Tax help
Should You DIY? 3 Times You Need to Hire a Tax Relief Professional
 by TaxRezPro

Should You DIY? 3 Times You Need a Tax Relief Professional

Dealing with the IRS takes a very specialized skill set that most tax preparers don’t possess. Make sure you have a tax resolution specialist on your side. Before you end up in that horror story, here are 3 times you need a tax relief professional like TaxRezPro.

In the world of money, there’s only one person with your best interests at heart – and that person is you. Making your own financial decisions and handling your own finances can give you peace of mind and prevent costly mistakes. In terms of finances, the DIY approach has plenty to offer but it does have limitations especially when it comes to the IRS.

It is not uncommon for clients to attempt to handle their taxes on their own. However, this can raise red flags with the IRS, resulting in audits or getting slapped with a tax bill they cannot afford. They might set up an installment agreement on their own, but oftentimes, the DIY approach just makes the penalties and interest keep stacking up, placing you in an endless loop of compounding interest, penalties, and your tax debt growing every month despite making monthly payments. Many of our clients started out by trying to do this on their own or with their current tax preparer and didn’t get the results they were hoping for.

So let’s take a look.

1. You just received a huge windfall

No matter how well you handle your finances, a major windfall can throw your plans into a loop. Whether you have won a lottery ticket or are the recipient of a major inheritance, seeking outside advice is a wise move.

If you choose the DIY approach and make a mistake, you could end up paying more in taxes than you should, but a high tax bill is not the only danger. Handling your windfall the wrong way could throw off your asset allocation, impact financial aid for your college-bound children and create additional problems down the road.

2. You have existing IRS tax problems

You cannot afford to go it alone when you have problems with the IRS. A single slipup could leave you liable for even more if you try to resolve tax issues on your own. Imagine you were in court without a lawyer representing you. Would you go before a judge without a lawyer? Most likely not. Here, it’s the same. Representing yourself before the IRS is generally not a good idea. Don’t do it. 

In the event that you receive a notice from the IRS, time is of the essence. However, you should not let the desire for fast action be at the expense of professional guidance and help. If you want to resolve your issues fairly without going broke, do yourself a favor and find the right tax resolution firm. Hiring an enrolled agent, CPA or an attorney that is trained in tax relief is the best way to preserve your rights, and you do not want to go it alone.

3. Protecting your assets

Whenever you owe taxes, the IRS is only interested in getting paid what they believe you owe.

You’ll have everything you have in your bank account seized. If you run a business, that means you won’t be able to pay your employees, pay your office rent or keep your lights on, ultimately putting you out of business. They’ll also garnish your paycheck leaving you about 10% to 25% of your net pay to live on. Good luck with that.

In addition, they can attach liens to your real estate, personal property, and financial assets. In other words, everything you have worked so hard for is at stake.

Hiring the right tax relief professional can help you avoid such extreme measures taken by the IRS. They’ll communicate with the IRS on your behalf and can often remove a lien or levy. If you have assets you can’t afford to lose, then hiring a tax relief pro is the only way to go.

Here’s the bottom line

Even if you are confident in your Do It Yourself (DIY) approach or feel your tax problem isn’t so serious, it never hurts to get a second opinion. If you are doing everything right, that tax resolution specialist’s advice will give you peace of mind. If there are deficiencies in your actions, the advice you get could stop you from making a devastating, and possibly irreversible, mistake. Plus, you may find out that you can settle your back tax liabilities for less than what you owe. Oftentimes, for a fraction of what’s owed!

Contact Us Today

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax / Tax help
 by TaxRezPro

Do You Owe Back Taxes? Why You Should Stop Panicking & Start Planning

Do you owe back taxes?

If you owe back taxes to the IRS, some amount of panic is understandable. After all, the Internal Revenue Service has the power of the federal government in its corner, something no other debt collector can claim. They are considered the most brutal collection agency on the planet.

It is easy to freeze up and just do nothing when you owe the IRS, but hiding from, or doing nothing about your tax debt will not make it go away. In fact, ignoring the taxes you owe will only make the situation worse, as interest and penalties can really add up. You also risk having your paycheck garnished (the IRS does not need a court order to do this) or your bank account levied. The IRS can also file a Notice of Federal Tax Lien making it all but impossible to obtain financing for a car or home.

So instead of panicking about your tax debt and hoping the problem will go away, you need to take some proactive steps. Now is not the time to panic and hide – now is the time to start taking action.

What can you do?

Some of these steps you can do on your own if you’d like, while others will likely require the intervention of an experienced tax resolution expert. Here are some proactive steps you can take to get a handle on your tax debt. If you need help resolving your IRS tax problem, contact us here. We help people with IRS problems every day.

Confirm the Amount Owed

When you owe back taxes, one of the first things you should do is make sure you really owe the money. The IRS has been known to make mistakes, a lot of mistakes, and the agency is far from foolproof. Contact the IRS or have us do an IRS transcript analysis to determine the amount the IRS claims you owe.

Seek Out Deductions You May Have Missed

At the very least, you may not owe as much as you think you do, and every dollar you can remove from the bill is one more dollar in your favor. Now is the time to scour your past and current tax returns, looking for deductions and tax credits you might have missed.

Unless you are a seasoned tax expert, you will probably need some professional assistance to make this happen. If you are already working with a CPA or tax expert, you can ask them to look at your past tax returns but only a tax resolution expert, who helps people like you for a living, can protect your income and assets as you go through the process.

If you missed a few deductions and tax credits along the way, your tax professional can file amended returns on your behalf, lowering the amount of tax debt you owe – and possibly eliminating it altogether. However, you usually can’t go back more than 3 years to amend returns.

Look for Special Programs You May Qualify For

The bad news is the IRS wants its money and has the power to collect it.

The good news is the tax agency also offers several programs tax filers can use to make the repayment process easier. In some cases, the IRS may even be willing to settle for less, possibly much less, than the total amount of back taxes you owe.

These programs are not available to everyone, and if you have the resources needed to pay your back taxes, the IRS is unlikely to give you much of a break. But if your resources are limited, the tax agency may decide that a small amount of tax repayment is better than none at all.

The first step in the process is finding the programs for which you might qualify, and that will probably require the help of an experienced tax resolution expert. Most CPAs do not have this experience. Negotiating with the IRS is not an easy thing to do, and you may need help to drive the best bargain and reduce your back taxes. In the end, it may be well worth paying a tax relief expert to negotiate on your behalf, especially if you end up with a much lower tax bill.

Don’t Panic, Contact Us Today

It is easy to panic when you owe back taxes, but you should not let fear get in your way. The longer you ignore the problem, the worse it is likely to get, and the sooner you act, the better off you, and your finances, will be. There is a solution to every IRS problem!

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax / Tax help
 by TaxRezPro

Do You Owe Money to the IRS?


Possible Tax Resolution Strategies to Set Your Mind at Ease

Even for honest taxpayers, the IRS can be extremely frightening. Unlike most other government agencies, the IRS has unbridled power to attach your wages, freeze your bank account(s) and even confiscate your property, which is enough to send a chill up the spine of any taxpayer.

If you receive a letter from the IRS saying that you owe additional taxes, it is important not to panic. It may be a frightening situation, but there are things you can do to settle your tax debt and get back on the good side of the IRS.

Taxpayers do have options when resolving tax disputes and paying additional taxes due, and simply knowing what those options are can set your mind at ease.

As an expert Tax Resolution Firm, we encourage all readers facing a tax problem, whether it’s the feds or the state, to call us today 1.888.4TAXREZ for a free consultation.

Here are three strategies you can use to resolve your tax debt and get on with the rest of your life. Not all of these options will be right for everyone, but it is important to be an informed taxpayer.

Review the Amount Owed and Your Tax Return in Question

If the IRS says you owe money, you should not simply assume they are right. The tax agency does make mistakes (a lot), as do tax preparers and ordinary taxpayers.

Whether you filed your taxes on your own or hired someone else to do it for you, it is important to examine your return and compare what you find with what the IRS is claiming. It pays to seek professional help for this tax review, even if you originally filed your own taxes. A professional with IRS experience may be able to uncover errors and inconsistencies you would have missed on your own, and that could end up saving you money.

There is no guarantee this review will eliminate the extra taxes the IRS says you owe, but it never hurts to be sure. There have been many cases in which taxpayers who thought they owed money to the IRS ended up owing nothing – or even being due a refund from the IRS.

Set Up a Payment Plan

Getting a notice of additional tax due from the IRS is frightening, especially if you cannot afford to pay what the agency says you owe. Keep in mind, however, that you do not necessarily have to pay the bill all at once.

The IRS is often willing to set up payment plans with taxpayers, and those payment plans could make paying what you owe easier and less stressful. Once again, it is a good idea to seek professional help and guidance here – the IRS can drive a hard bargain, and you do not want to end up with a payment plan you cannot afford and wind up defaulting on it.

If you fall behind on the payment plan you agreed to, you could be subject to additional enforcement action, including the tax agency garnering your paycheck or seizing funds from your bank accounts. Getting the help of a tax resolution professional upfront can help you avoid these serious consequences.

Explore an Offer in Compromise Settlement

If you are genuinely unable to pay the money the IRS claims you owe, you may be able to work out a (much) smaller lump sum payment. The IRS may not advertise this program, but they are often willing to work with taxpayers by accepting lesser amounts, especially if those taxpayers have little in the way of equity in assets and a limited income. Sometimes these settlements can be for a fraction of what’s owed if you qualify. We offer a free no-obligation consultation to find out if you qualify.

If you plan to explore this last option, it is critical that you work with a tax resolution expert. An offer in compromise can be extremely complicated, with legalese and language that can be difficult to understand. You do not want to make a misstep here, and you want to ensure that you only pay the lowest amount allowed by law in settling your tax bill.

Few things are as frightening as getting a letter from the IRS. That official-looking letterhead is bad enough, but what the letter says is even worse. If you receive such a letter, you need to take positive steps right away. Ignoring the situation will make it worse, and it won’t go away. The sooner you start exploring your tax resolution options, the better off you will be.

If you want the help of an expert tax resolution professional who knows how to navigate the IRS maze, CALL US TODAY at 1.888.4TAXREZ (1.888.482.9739), and we’ll schedule a no-obligation confidential consultation to explain all your options to permanently resolve your tax problem.

Your Tax Resolution Professionals

Our experienced and certified tax experts can assist with a variety of tax-related issues, including IRS payment plans, collection appeals, and more. We also offer representation before the IRS, so you can rest assured that your case is in good hands. If you’re facing a tax problem, don’t hesitate to reach out to our team at TaxRezPro. We are here to help provide you with a tax resolution and get back on track. Call 1.888.4TAXREZ (1.888.482.9739) today.

in Tax help
 by TaxRezPro

7 Reasons to Work with a Tax Resolution Professional to Resolve Your Back Taxes

7 Reasons to Work with a Tax Resolution Professional to Resolve Your Back Taxes

When you owe money to the IRS, it is hard to think about anything else. While being in debt is never fun, no matter who the debtor is, the IRS enjoys almost unlimited power to collect the money they are due.

Unlike your mortgage lender or credit card company, the Internal Revenue Service has the power to attach your wages, raid your bank account and even take your freedom. No other creditor even comes close in terms of its power and influence. Taking on the agency, on your own, could be asking for trouble.

If you have received a notice from the IRS, you need to act fast, and you need the right assistance in your corner. Taking on the IRS requires specific expertise, and that is why it is so important to work with a quality tax resolution company. Here are seven reasons why working with a tax resolution specialist could save your good name – and your bank account.

1. You gain specific expertise. The IRS is a specialized agency, and you need expert advice and guidance to get the most positive resolution.

2. It will give you peace of mind. Being contacted by the IRS can make your heart beat a bit faster but working with a tax resolution expert can set your mind at ease, especially once you hire a tax resolution specialist. Once you hire a tax resolution expert you won’t have to meet or speak with the IRS. They will handle all communications and correspondence with the IRS.

3. The tax resolution process could save you a lot of money. Tax resolution professionals are experts at settlements and working with one could save you a ton of money.

4. Timely action could save your home and property. If you wait too long, you could put your home, business, bank accounts and personal property at risk. Time is of the essence when it comes to resolving tax issues, and timely assistance could make a world of difference.

5. You will feel less alone. Few things feel as lonely as fighting the IRS on your own. When you work with a tax resolution expert, not only do you not have to go it alone, but they actually step into your shoes to represent your best interests.

6. You will have a chance to file missing returns. When faced with a big tax bill, it is easy to do nothing, but failing to file legally required tax returns could have serious consequences down the line. If you have years of unfiled returns, a tax resolution expert can help you catch up.

7. You could save your credit score. Unresolved issues with the IRS will reflect badly on your credit report, lowering your credit score and making it harder to borrow money or qualify for a mortgage. Timely tax resolution could preserve your stellar credit score and help you avoid those serious consequences.

Owing money to the IRS can be pretty frightening. There is a reason those three letters strike so much fear into the hearts of ordinary citizens, even those who have done nothing wrong.

If you are in trouble with the IRS, you cannot afford to ignore the issue, so act fast and get the help you need today. Working with a tax resolution expert carries a host of benefits, starting with the seven outlined above.

Most likely, you wouldn’t go to court without a lawyer. Similarly, it’s best not to deal with the IRS without expert representation which can be provided by a tax resolution expert.

Contact us today and we’ll schedule a no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

in Tax / Tax help