I Received An Email Claiming To Be From IRS

This is called phishing and it didn't come from IRS. I have received one of these myself at my office in Texarkana, Texas and ignored it. I have never received one at my home email located in Texarkana, Arkansas. All my dealings with IRS agents is by phone, fax, or face to face meetings. In IRS Tax Tip 2013-19 the IRS offers the following advice if you receive an email claiming to be from IRS. Do not reply to the message. Do not open any attachments. Do not click on any links in a suspicious email and do not enter confidential  information. The IRS wants all taxpayers including those in Texarkana, Arkansas, Texarkana, Texas, Miller County, Arkansas and Bowie County, Texas to know the following information about phishing scams. The IRS doesn't initiate contact with taxpayers by email or social media channels to request personal or financial information. The IRS never asks for detailed personal and financial information like PIN numbers, passwords, or similar secret access information for credit card, bank or other financial accounts by email. The address of the official website is www.irs.gov. Don't be mislead by sites claiming to be the IRS but ending in .com, .net, .org or anything other than .gov. 

If you receive a phone call, fax, or letter claiming to be from IRS but suspect they aren't you can call the IRS at 1-800-829-1040, forward the suspicious email to phishing@irs.gov, or visit the IRS website and click on "Reporting Phishing" at the bottom of the page.


Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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I Didn't File Taxes This Year. What Will Happen?

Most likely nothing right away. At some point, the IRS may send you a soft letter asking for your tax return for the year you didn't file. You usually receive this in the year after the return is due (2013 notice for 2012 returns). If you ignore them, at some point they could file a tax return for you based upon the income information available to them. This return won't likely be filed in the most favorable manner for you and you will owe them money. What is more troublesome is how this ends. While you may get this taken care of,  I rarely file one year's deliquent income tax return but rather 3, 4, 5, 6 or more years. When you skip that one year and you don't hear from IRS for a while then one year can become multiple years. A smaller issue can become much larger if you don't bring your filings current. Don't let this happen to you.


Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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Deliquent Filer NO IRS Contact

You haven't filed in a few years, maybe quite a few years, but you hear nothing from the IRS. How can this be? Well there could be a number of reasons. You may have just fallen through the cracks (no kidding it happens). Maybe you don't have any reportable income like W-2s, 1099s etc., or maybe something you haven't considered, the IRS owes you money. If you don't file, you don't get a tax refund. If the IRS thinks you owe them money, they will file for you and assess the tax. This return is called a SFR (Substitute for Return). These returns use the income information available to IRS and they will either file you as single or married filing separate, assess the tax if you don't respond, and begin collection actions.  If IRS doesn't file for you then they may have determined you don't owe them money. They may owe you money! I have filed many deliquent returns that had refunds coming plus interest. Sometimes it is substantial amounts. Only problem is if your refund is over 3 years old the IRS keeps the money. You don't get it. If you are behind in your tax filings you need to get current. You might even have some money coming!

Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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Is the IRS Hard to Deal With?

Unfortunately, in this environment the answer is yes. As I write this blog, I am on hold for 30 to 40 minutes to reach the IRS on a dedicated line for people like me who represent taxpayers. If the long wait wasn't enough, that is just the beginning. 

I am trying to get some transcripts for a taxpayer who hasn't filed in several years. My first call for this taxpayer was on hold for 56 minutes only to be told by the IRS representative that the transcript delivery system is down and no transcripts are available. You must call back, which I did. This wait time was 65 minutes. Got a nice agent who gave me the information I needed and agreed to send me the transcripts, which he did. 

The only issue was that I needed 7 documents but the transcript delivery system only sent me two documents and part of another one. So, I was back to square one. Current call is answered in 33 minutes this time with another nice agent. She is faxing me the documents I requested again so we shall see. 

One thing I can guarantee you is that I am determined to see this to the end and will not give up. 

Wish me luck maybe I will receive the documents this time and we can proceed.

Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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Your Retirement Account Is Not A Savings Account

Taking distributions from your retirement accounts before age 59 1/2 can have harsh tax consequences. If the distribution is a premature withdrawal, then you owe regular income tax and a 10% penalty. State income taxes and additional penalties can be piled on top of this. If you are in the 25% regular income tax bracket plus the 10% penalty then add 7% Arkansas income tax plus a 1% penalty. That's 43% of your retirement funds going to taxes. Quite a price to pay! You may be in a lower or higher bracket or not pay state income tax but I think you can see you need to get the facts before you request the money. There are 12 exceptions to the 10% penalty so you may qualify to avoid the penalty. What I see on a regular basis is that the money is withdrawn and we start to prepare the tax return. The taxpayer says they held the tax out so I should be ok. Well the tax withheld is normally 10% or 20%. Neither amount is sufficient to cover the tax due and you get much lower refund or owe the IRS money. If you leave a job consider rolling over the retirement account to an IRA instead of just cashing it in or if you need money at least give us a chance to determine the tax cost before you request the funds. The tax cost is often far higher than you expect and makes a premature retirement withdrawal a bad financial move.

Robby 
Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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Will IRS Withdraw My Federal Tax Lien?

Yes, if you qualify. You can get your federal tax lien withdrawn after the lien has been released if your tax liability has been satisfied, your lien has been released, and you are in compliance for the past three years in filing all individual and business returns and all information returns. You must also be current on your estimated tax payments and federal tax deposits, as applicable. You can also get a lien withdrawn by entering into a direct debit installment agreement. Eligible taxpayers are individuals, businesses with income tax liability only, and out of business entities with any type of tax debt. The tax debt must be less than $25,000, you installment agreement must full pay the amount you owe the earlier of  60 months or before the collection statue expires, you must be in full compliance with other filing and payment requirements, have made 3 consecutive direct debit payments, not received a lien withdrawal for the same taxes unless the original lien was in error, and you haven't defaulted on your current, or any previous direct debit installment agreement. This is an excellent option if you qualify as it will withdraw the federal tax lien as though it was never filed. IRS form 12277, Application for Withdrawal is the form you use to apply to have a federal tax lien withdrawn.

Robby
Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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IRS Tax Lien On My Credit Report!

The IRS can and does file federal tax liens for tax debts over $10,000. We all know that federal or state tax liens on your credit report are not good for your credit score. Loan rates, insurance premiums, and probably more stuff than you can imagine are based upon your credit score. Nothing raises your banker's blood pressure like a tax lien. Federal tax liens are public information. In Miller County, Arkansas you can get a copy of your tax lien from the Miller County Circuit Clerk's office. In Bowie County, Texas a copy can be obtained from the Bowie County County Clerk's office. If the collection statue has expired, the federal tax lien is no longer enforceable and the debt is forgiven. This date is in column (e) on your federal tax lien unless you have extended the collection statue. Common ways to do this are by filing bankruptcy, timely filed collection due process requests (CDP), or offer in compromise. The federal tax lien can still appear on your credit report since it is what the IRS calls a self releasing lien as explained in Important Release Information on your federal tax lien. The way to show this lien is no longer valid is to get a manual release from the IRS lien release unit and file it at the county courthouse. Then forward a copy of the release to the credit reporting agencies. This will show the federal tax lien as no longer valid and should have positive financial consequences for you.  

Robby
Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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What Is A Federal Tax Lien?

A  federal tax lien is the government's legal claim against your property. It applies to all property, including real estate, personal property, and financial assets. This is a public document filed at the Miller County, Arkansas circuit clerk or Bowie County, Texas county clerk's office. This lien also attaches to future assets acquired during the duration of the lien. The IRS form is 668(Y)(c) and is a public record for all to see. The lien has columns (a) through (f) on it. These columns provide information as follows:

(a) Kind of tax - Form number tells you what kind of tax. Payroll, income tax, excise tax, civil penalty etc.
(b) Tax period ending - Period tax is owed generally quarter or year end dates.
(c) Id number - Social security number for income taxes and federal id number for business taxes.
(d) Date of Assessment - Date tax owed was assessed.
(e) Last day for refiling - Collection statue date. If this date has passed you may no longer owe the money.
(f) Unpaid Balance of Assessment - Amount due to IRS at time of filing not what you owe at a later date as the penalty and interest continue.

If you have a federal tax lien, go get a copy. We use this information to order documents from IRS related to these periods as we assess solutions to your IRS issues.

Robby
Selph & Friday CPA
Phone: 903-792-0281www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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IRS Problem 911 For Taxpayers?

Normally if you call 911 you are going to get law enforcement who asks what is your emergency? If you can't resolve your issues with IRS through normal channels, you can use IRS form 911 to receive assistance from the Taxpayer Advocate Service. The title of the form is Request for Taxpayer Advocate Service Assistance Form 911. Taxpayer Assistance Service is an independent organization within the IRS that helps taxpayers resolve problems with the IRS. They are a tremendous organization that I have used many times to help with my cases when the IRS is a bit stubborn. You do have to meet their case criteria to get their assistance. Of particular interest to the TAS are cases where IRS creates hardship for taxpayers that can't pay their  basic living expenses. There are other issues the TAS can help you with and they can cut through the government red tape to get results.

Robby
Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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Will My IRS Debt Last Forever?

NO! There is a collection statue expiration date for an IRS debt. Generally that date is 10 years from the date the tax is assessed.  I meet with people who say, "I have been trying to pay on this but I don't think I am ever going to get it paid off with IRS adding penalty and interest every month." We get the transcripts or call IRS to determine where are you in the collection process and how long will this debt last? It is not uncommon for IRS debts to be approaching the expiration date and the taxpayer have no idea their debt is about to be forgiven. In 27 years I have never had an IRS agent tell me when a collection status is about to expire. You have to ask. A bankruptcy filing, a timely filed collection due process request, or an offer in compromise are common ways the statue is extended beyond the 10 years. If you take these actions, the clock stops and isn't running while these actions are pending. Don't file bankruptcy a month before the statue expires to extend the collection statues unless you have too. If your debt expires, then the transcript of your account will say statue expiration debt forgiven. Your balance will be zero. We always want to know how much time is on the clock as we determine how to help you deal with an IRS debt.

Robby
Selph & Friday CPA
Phone: 903-792-0281www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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Monthly payment for my IRS debt?

The answer is generally yes but before you move ahead with a payment proposal for IRS we like to get more information. First, we would like to determine your ability to make a monthly payment to the IRS. If you don't have any ability to pay that presents some options. If you don't have assets that disqualify you why not submit an offer in compromise to settle your tax debt for less that you owe? This would be a great option. If your offer is accepted then you can just get the matter settled and put it behind you as long as you stay in compliance for the next five years. Second option is if you have no ability to pay then your account can be placed in non collect status. You have no ability to pay IRS so you don't have to make a monthly payment. This has to be submitted to the IRS on their financial statement with attachments to prove your inability to pay. The penalty and interest do continue to be added to your debt but you and your family don't have to do without just to pay on an IRS debt if you have no ability to do so. The next information I would like to know is the statue of limitations expiration date. An IRS debt doesn't last forever and we want to know when the statue expires. Yes, the time for IRS to collect can expire and your account transcript will say statue expiration debt forgiven and the balance will be zero. You have to ask when the statue will expire IRS doesn't just volunteer this information. I see people try to deal with a revenue officer and get a payment amount that is much higher than they can  pay. This leads to a defaulted agreement. Collection action will ultimately follow and you will be right back where you started. There is often more than a monthly payment involved when you look at your IRS debt and how to deal with it.

Robby

IRS Can I appeal that?

Yes, but there is a set time limit for you to submit the appeal. Some of the more typical IRS actions you would appeal include proposed audit changes by revenue agents, proposed wage and bank levy actions by revenue officers, denial of penalty abatement requests, and offers in compromise when you can't agree with the offer specialist. You can have 15 days, 30 days, and some even have 60 days to appeal the proposed action. It is so very important to read the IRS letters and see what the deadline for appealing a proposed action is.  While we would like to represent taxpayers from the beginning of an IRS inquiry in realty we often get involved after the taxpayer's initial attempt has failed. Often the time allowed to submit the appeal has already expired or is quickly approaching. While we can still generally find a effective avenue to get your case heard by an appeals officer the normal appeal within the time alloted is easier and happens when a timely request is submitted. Don't ignore IRS letters they could contain dates that are important to your case!

Robby

Does the IRS mistreat taxpayers?

Generally no but in 27 years of representing taxpayers I have seen it happen. Correspondence audits or mail audit as I call them is a likely spot for this to happen. You aren't dealing with a person. You generally have no name or ID number for a revenue agent. Recently I had a case where the taxpayer was notified of a correspondence exam and was sent a document request. We sent in the information, the IRS requested more and gave us ten days to send in the information. Only problem was the postmark on their letter was after the 10 days had expired. There was no way to comply. The IRS then doesn't provide a 30 day letter with appeal rights and the 90 day letter was never issued but the taxpayer was given one day to petition tax court or the tax was assessed. Obviously, the taxpayer's rights were just trampled in this matter. Well,  I will just dig in my heels and get the taxpayer his opportunity to present his documents and facts in the case.  If you think you have been mistreated by IRS don't just give up there are often alternative ways to get an opportunity to present your information and get a fair shake. 

Fixing IRS problems: It's more than numbers

Most people who come to my office with tax issues are normally anxious and confused about whats filed or what they owe. Having done this for 27 years, I can tell you that it is almost never as bad as you think. I will meet with you, and in most cases, I will call the government while you are here so we can get a handle on your situation.  After I get the documents from the IRS, I can tell you the likely course of action for you, what actions the government will be taking, and how we are going to respond to them. Most folks feel better just knowing what is going to happen and what they need to do. As your power of attorney, we are with you the entire process.  We receive copies of all notices from the IRS and we will contact them on your behalf when the need arises. I file current 1040s for many people every year who originally came to see me with tax issues. I enjoy solving tax problems for people as well as keeping them from happening again. It makes for happy customers!

Robby Selph
Selph & Friday CPA
Phone: 903-792-0281www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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Does the IRS Audit By Mail?

Yes they do. Most IRS audits are actually conducted through the mail instead of face to face meetings with revenue agents. These are called correspondence audits. It is like being audited by a computer. There is not a name assigned to your case, you can't generally call anyone, and you send your responses to an address from the IRS notice. It takes extra effort to get the documents to IRS so you can get the exam completed and your story told. We send all documents on corresponding audits by certified mail. I have had document requests from IRS have a postmark later than the deadline for response. Hard to meet a deadline if you are notified after the fact. Correspondence audits can be effectively handled but it often requires a healthy dose of tenacity and a bulldog approach. As always, if we don't agree we will appeal the findings.


Selph & Friday CPA
Phone: 903-792-0281www.selphandfridaycpa.com

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The IRS Is Auditing My Tax Return

When this happens you will get a letter from IRS. It will either be a correspondence audit or an audit with a revenue agent. Correspondence audits are difficult because you are dealing with an address and not a person. If it is an audit with a revenue agent, your letter will ask you to call for an appointment or they will tell you a time to appear at the IRS office. At this point you are going to make a decision whether to represent yourself or hire a qualified representative. If you hire us to represent you, we will get a power of attorney (IRS form 2848) and you generally have no contact with IRS. If it is a local agent, we will likely know the agent and have had previous audits with them. If you represent yourself, we often enter the audit after you have met with the agent and don't feel comfortable with them or their proposed changes to your tax return. Our experience is that the best results are achieved when we deal exclusively with the Internal Revenue Service and you only provide us the necessary documents they are requesting. If we believe the agent takes a position we don't agree with you still have options and we will request a manager's conference or file an appeal for a hearing with an appeal's officer on any outstanding issues.

Selph & Friday CPA
Phone: 903-792-0281
www.selphandfridaycpa.com

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Can My Tax Preparer Represent Me Before the IRS?

Attorneys, Enrolled Agents, and Certified Public Accountants can practice before the IRS provided a written authorization is signed by the taxpayer. Form 2848 Power of Attorney is the most common authorization furnished to the IRS. I have several clients whose tax preparer couldn't or wouldn't represent them and they had to do it themselves. Since they found it an unpleasant experience, they hired our firm because we do represent taxpayers who have tax issues. We don't turn red in the face when you tell us you are being examined, have unpaid balances to IRS, unfiled returns or other issues with the federal or state taxing entities. While the vast majority of our clients don't ever have any contact with the IRS if there is an inquiry from IRS then we know how to respond. With the written authorization form 2848, we deal with the revenue agents or revenue officers of the IRS and you have no contact with them in nearly all circumstances.

Robby Selph
Selph & Friday CPA
Phone: 903-792-0281www.selphandfridaycpa.com
Email: rselphcpa@cableone.net

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My bank account has been levied by IRS

Normally you will get a letter or phone call from your financial institution informing you that the Internal Revenue Service has levied your bank account and the amount in the account that day has been frozen. This isn't exactly the news you were hoping for but all is not lost. The money isn't sent to the IRS for 21 days. During this period of time an opportunity may exist to get a full or partial release of the levy from IRS. Wage levies are continuous while bank levies are one time events. Just the amount of money in the account that day is frozen. You can use your bank account the next day unless IRS levies again which is unlikely and I have never seen in 27 years of representing taxpayers. A word of caution not all financial institutions understand the one time bank levy process. I have sent the Internal Revenue Manual section on bank levies to financial institutions to help them understand that future bank deposits aren't subject to the levy. If IRS timing is bad and the bank balance is low then only a small amount is frozen. As always to get IRS to release levies you must be in compliance. Don't ignore IRS notices and let your bank account be levied. There are many options to prevent this from happening if you act on your tax issues.

I can't pay IRS my past due taxes.

While this may sound like a big problem it may not be as bad as you think. If you complete the IRS financial statement and can document that you have no ability to pay then I would suggest you consider these two options. If you have limited net worth and no ability to pay we can submit an offer in compromise to try to settle your tax debt. If an offer isn't suitable for you then your balance due can be placed in non collect status. No payments will be required unless IRS contacts you for updated financial information and determines you have ability to pay them. You could receive this inquiry if you have a significant increase in income. If your account is placed in non collect status you will receive an annual notice titled reminder of balance due. The IRS won't pursue collection action from this notice. The penalty and interest do continue to be added to your balance. However, the IRS only has a certain period of time to collect the taxes you owe. As always we are with you throughout the entire process of dealing with the Internal Revenue Service. There are options if you can document that you have no ability to pay IRS. If you ignore their notices and don't contact them then you risk IRS collection action on your wages and bank accounts.

Can I settle my tax debt with IRS?

Yes, if you qualify you can settle your tax debt for less than the full amount owed. This program is called OIC offer in compromise. I am often asked what will the IRS take to settle my tax debt? There is extensive documentation required that determines your ability to pay, income, expenses, and equity in assets. The amount to offer comes from this information. The IRS determines the most they can expect to collect from you and see if your offer is adequate. Your offer won't be considered by IRS unless you are current with all filing and payment requirements or if you are in an open bankruptcy proceeding. While your offer is being evaluated collection activities are suspended  and the period of time IRS has to collect your tax debt is extended. If your offer is accepted your federal tax refund for the year the offer is accepted will be retained by IRS and applied to your tax debt. There is an application fee and down payment requirement for submitting an offer unless you meet the low income qualifications.You must file and pay your taxes for five years after an accepted offer or the offer will be revoked and the tax liability will be reinstated by IRS. These are some of the OIC provisions but certainly not all. Submitting an OIC isn't the simpliest of tasks but well worth the effort if you can settle you tax debt. The recent fresh start program from IRS to help taxpayers has raised the OIC acceptance rate and offers hope for taxpayers who can qualify to satisfy their tax debts for less than the full amount.

Why don't people act on their tax problem?

Taxpayers often wait until their bank account or wages are levied before they seek help with tax issues. None of these are pleasant. If you have read any of my posts a common theme has been that waiting reduces your options and makes it harder to resolve. I know many people are just plain scared to find out what is going to happen. They are afraid of the IRS and if they haven't heard anything in a while no news is good news. There are a few instances where the statue can expire and it can go away but waiting is likely to worsen the problem.. When you come to my office and meet with me I will listen to your story, contact the IRS on your behalf, gather the necessary documents, and tell you the likely path we are going to take to get something done about this. Many people tell me I feel better knowing what the issues are and what we need to do to get them fixed. The IRS sends plenty of notices before they take action don't ignore them!

Robby

Why do I owe Arkansas income tax when I didn't file?

The IRS and State of Arkansas share information. If you file a federal tax return with an Arkansas address then the State of Arkansas will look for an Arkansas tax return. If you haven't filed then they take the federal income information and prepare you an Arkansas income tax return. You won't be given credit for Arkansas taxes paid since the federal income information doesn't include this. Pretty harsh result especially if you have some Arkansas income tax paid in. I represent residents of Texarkana Arkansas who think since they are border city exempt they don't have to file an Arkansas Income Tax return. You must file an Arkansas Income Tax return to claim the border city exemption if not you will be getting a bill from the Arkansas Department of Finance and Administration. If you are a resident of Arkansas and find yourself in this situation you need to file an original return. Prompt action to correct this is a good idea because the State of Arkansas will file tax liens for small amounts at the county courthouse. This impacts your credit rating. They will proceed with collection efforts which in Arkansas can include being served by a member of the County Sheriff's department in an effort to collect the tax.


Robby

I haven't filed in years Why do I owe the IRS?

The IRS has taken the income information they received and filed a tax return for you. The filing status is likely married filing separate (highest tax rates available) or single. No dependents and no deductions will be on this tax filing. It is called an SFR. Substitute for Return. You will have a balance due. They don't file for you if you have a refund coming. If you ignore the balance due notice the IRS will begin to collect the tax and you will be subject to their collection actions. This can be solved by filing an original return for the year in question. If you don't have any records we can retrieve them from IRS with a valid power of attorney and get an original return filed. Getting the return processed by IRS can create some challenges so we monitor the status of the IRS collection efforts so we can file any collection appeals if needed or contact the IRS directly to intervene before collection actions are taken.

Can a wage levy be released?

Certainly it's not easy. First thing that really helps is if you have filed all your tax returns. If you aren't compliant your options diminish. If are current on your filings then time is of the essence. Depending on when the next payday is you may have time to take action before the levy is enforced. If not you can still take action after a levy has been enforced. You can enter into an installment agreement based upon your ability to pay or if you have no ability to pay then your account is placed in currently not collectible. You will have to provide the IRS with the necessary financial information on their forms for them to make this determination. Either of these cases IRS will release the levy. If you aren't current on your filings and enforcement of the levy is creating a hardship you can ask for a taxpayer assistance order to stop enforcement of the levy from the Taxpayer Advocate Service by filing form 911. The Advocate Service has lots of cases so you need excellent documentation to get them to take your case. There are some collection appeals that you can use to at least get a hearing but this may take some time and a consulation with a bankruptcy attorney may be needed as well. The best advice I can provide is don't ignore the IRS notices. The sooner we can intervene in a potential levy situation the better the chances of resolving it favorably.

Robby

IRS levied my paycheck

A wage levy is one of the strongest enforcement actions the Internal Revenue Service will take. They take money out of your paycheck to pay a tax debt. Well how much?  Wage levies are sent to levy sources typically your employer on form 668-W. When your employer furnishs you a copy of this wage levy complete the part listing your filing status and your exemptions and sign it. The IRS uses a table to determine how much of your take home pay is exempt from levy. In other words how much you get to keep. On a bi-weekly payroll (every two weeks 26 pay periods) single one dependent $384.62 is exempt from IRS levy and is your take home pay. On the other hand if you are married filing joint with a total of four dependents $1069.23 is exempt from IRS levy. A substantial difference so get the paperwork and fill it out if you have dependents. If $1,069.23 is exempt from levy and you make less than that every two weeks no money would be taken from your paycheck. Wage levies continue every pay period and if your wages aren't exempt from levy the IRS will hold money from your paycheck as long as you owe them
money for the tax period levied. Next post I will discuss some strategies on how to get your wage levy removed from your paycheck.  

I haven't filed my income taxes in years and have no records

This could be a little tricky. However, with your written authorization we can get the wage and income documents from IRS that detail your income earned. Some expenses may be on the IRS transcripts. Mortgage interest would be an example of this. If you have business expenses and no records these can be reasonably estimated and if the method of determining them is properly disclosed to the IRS you can get these returns processed. It may require us to appeal your case or otherwise have some discussions with IRS managers but it can be done. Helping taxpayers catch up their tax filings and get them back into the system is something I really enjoy and makes for happy customers who no longer have this on their mind. After this is accomplished just let us prepare and file your tax returns every year and this problem won't happen again.  

IRS tax notice CP-2000

This is a matching notice that compares your filed tax return to the income documents that the IRS receives. If they find differences they just send you a proposed adjustment often with penalties and always interest. These notices come one to two years after your tax returns are filed. Don't pay the balance due without a clear understanding of why you owe it. Many times the missing items are on your tax return but IRS can't find them. Often the IRS only gets one side of the transaction. The IRS gets the amount of securities sold but not what you paid for them. There may be income the IRS has but not the deductions that go with it. Gambling income and losses would be an example of this. We represent taxpayers to explain these differences and resolve these issues. You might be surprised to know that just because IRS proposes a balance due doesn't mean you owe it.

Representing taxpayers with tax problems what does that mean?

It means getting authorization from the taxpayer and talking to the IRS or State for them. You generally don't have any contact with the agents after I become your power of attorney. It means if you are being audited by the State or Federal government I go for you to meet with the agent. You don't have to go. If you owe the IRS or state government money and need resolution to that matter I deal with the revenue officer for you. It means I get a copy of all IRS notices that you receive so the status of your case can be monitored as we move towards a resolution. My customers tell me it provides piece of mind to know that I will be dealing with the revenue agents and officers and they don't have to deal with something that makes them uncomfortable.


Robby

How the Texarkana, Arkansas border city exemption works.

Since this Arkansas income tax provision is so misunderstood here is how it works. If your residence is inside the city limits of Texarkana, Ar you are exempt from Arkansas income tax regardless of where you work. If you live inside the city limts of Texarkana, Tx you must work inside the city limits of Texarkana, Ar to be exempt from Arkansas income tax. Everybody else who has Arkansas income is subject to the Arkansas income tax. You must file an Arkansas income tax return if you have Arkansas income to claim the border city exemption. The State of Arkansas is actively looking for taxpayers who either didn't file when required or claimed the border city exemption in error. Every year I represent numerous taxpayers who have these issues and I can help you resolve them.

Robby      

You aren't a bad person if you have tax problems.

I enjoy helping people get their tax issues resolved. The cause of these problems often are divorce, death of a loved one, sickness, bankruptcy, and drug, alcohol, or gambling addicitions. We listen to your issues and have compassion to understand the burden tax problems can cause you. One of my customers told me that he couldn't hardly rest at night until this was taken care of. Fixing tax issues is challenging, interesting, and rewarding work. After your tax issues are resolved  we can prepare your tax returns and make sure you stay straight with the government year after year.

Robby  

Can IRS penalties be abated?

The answer is yes if you qualify. IRS penalties can be be abated if reasonable cause exists for the filing or tax deposit issue that created the penalty. Reasonable cause is defined in the Internal Revenue Manual. Some examples include death, serious illness, or unavoidable absence, fire, casualty, natural disaster, or other disturbance, unable to obtain records, and mistake was made. The IRS also has a first time penalty abatement policy for certain types of penalties if you qualify.  I'll evaluate your penalties and if a favorable opportunity exists to abate them we will craft you a penalty abatement request for submission to the IRS.

Robby

I have tax problems. How much does it cost for you to help me?

We get this question on a regular basis. Usually it is the second sentence in the phone calls we receive. Since we have no idea how large your tax issues are and what is required to resolve them, we ask "What do you need done"? The typical answer is, "I don't know". Well, since you don't know and we don't know how about you signing the IRS power of attorney that we prepare and lets find out.

We will contact the IRS normally on your first visit and retrieve the necessary documents to determine what needs to be done to get you in compliance. At that point, we will tell you what your situation is and what documents need preparing. If an IRS collection action is imminent we can discuss your options to get some additional time to bring you into compliance. We don't charge for the initial visit as you are deciding if you want us to help you and we are evaluating whether we can reasonably expect to help you. After we get the documents and determine a course of action we will discuss fees. If you have state tax issues we approach them in the same manner.

www.selphandfridaycpa.com

I received an IRS notice. What should I do?

Read it. If it is certified mail, go to the post office, get it and read it. This sounds simplistic but I have represented many people who just ignored the notice. It's not likely to go away. It will continue on until you respond. It may be a minor issue that can be resolved with a written response or a phone call. If it is more serious, then you can limit your options or make the issue harder to resolve by not responding. Many notices will have a notice number and tax period in the top right hand corner. If this is the case, we can tell you what the notice means with that information. If it has an amount due, don't just pay it in hopes you will be left alone. You may not owe it. Let's get a thorough understanding of what the notice is and whether the amount due is valid before you open up the checkbook.

Robby
www.selphandfridaycpa.com

National conference

As Fellows of the National Tax Practice Institute, Robby and I just completed 24 hours of intensive graduate studies in the area of taxpayer IRS representation at Las Vegas, NV.

The course of study was led by some of the nation's leading attorneys and tax practitioners in the field.  The topics included, offers in compromise, appeals, collections, and tax court proceedings.  We devote substantial time and resources each year to network and study with such experts.  We believe this investment helps us to bring our customers a high level of quality service.

If you have an IRS problem, let us put our training and experience to work for you. 
Call us at 903-792-0281.

Joey
www.selphandfridaycpa.com