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Tax Problems

The IRS Is Threatening A Wage Or Bank Levy
Tax Payment OverdueThis requires a fast handling before your wage check shrinks or your bank accounts disappear. What to do? Contact GuardDog Tax for a free consultation. This consultation is usually followed by a GuardDog Tax Analysis where you sign certain legal documents, including an IRS Power of Attorney, and we contact the IRS, get your full tax files, and request adequate time to review these and propose a resolution. There are different gradients of threatened levy. All have an underlying tax situation and all require time to handle this situation. The first step is to find out exactly why the IRS is threatening. There are many different situations in which the IRS uses levy threats. After all, the levy or its threat is how the IRS enforces collection. So a threatened levy is a common denominator to many IRS actions. There are many different gradient levels of levy threats, and different levels or urgency. Each has a specific response indicated. They all indicate AN UNHANDLED TAX SITUATION. I won’t even say debt, as maybe the debt is based on faulty data! Whatever the situation is, there is an appropriate (1) response and (2) remedy. The appropriate response may be for your duly authorized representative to contact the IRS and request all your IRS transcripts and time to evaluate them and propose a remedy.

Remedy

There IS a remedy for any tax situation, but first we find out what the actual situation is. Usually, the taxpayer does not really know. Nor does the IRS employee who answers the phone. To handle a threatened levy requires fast effective action. Notice the words fast and effective, not slow or panicked. So, we have you sign various forms with GuardDog Tax, including an IRS Power of Attorney. We contact the IRS and get all your tax files. Now we see exactly why the IRS is threatening and can handle it. It usually is not that difficult and need not take long. We contact the IRS within 24 hours. Often we can get the IRS to put a hold on any threatened levy action while we review these documents. There are many possible remedies for the underlying tax situations, such as filing un-filed returns, installment agreements (full-pay and partial-pay), offers-in-compromise,  currently not collectible status and penalty abatement. To see if you qualify for these remedies, you may need to submit financial data to GuardDog Tax. Our Tax Analysis will take all these things into account, and recommend a solution.

Analysis

We usually do the reasonably-priced tax analysis as a first step, so you do not spend large sums of money on an Offer-In-Compromise or some other desirable remedy THAT THE TAX ANALYSIS WOULD SHOW TO BE UNAPPROVABLE.  The important thing to know is there is a remedy that IS approvable.  The GuardDog Tax Analysis,  utilizing advanced software and the experience and acumen  of a tax expert, will direct you toward the best resolution for your tax situation. At GuardDog Tax, we intend to win. We do not fight battles doomed to failure. When we go into battle with the IRS on behalf of our clients, we are prepared. We have your IRS transcripts and your financial details. Our computer software, based on IRS Codes and Regulations, interpreted by an EA, CPA or tax attorney,  tells us what the IRS should accept. There is still a battle to be fought and won. IRS employees may seek to violate their own guidelines. Your financial situation may change in the midst of negotiations (e.g. a a windfall inheritance). Maybe you missed reporting assets to us or they are undervalued and the IRS catches it. These all can be barriers to victory. BUT that is far different from going into battle with the IRS knowing your position is doomed and accepting fees to lose the battle. We do not do the latter at GuardDog Tax. We cannot guarantee victory every time we battle the IRS. But we can guarantee that when we go into battle, we expect to win. This is why we do a tax analysis as as first service when major IRS debt is involved. If you have received a levy threat from the IRS, call GuardDog tax for a free consultation 1-877-758-7797.
Unfiled Tax Returns
Tax ReturnsOne of the most common tax problems is unfiled tax returns. This is usually the first problem to handle, because most of the other problems cannot be solved until this is resolved. If you have an imminent tax levy, this levy might require a quick call to the IRS to  get time to file. Generally, unfiled tax returns are priority, as other solutions such as the Offer-In-Compromise, Currently Not Collectible Status, and the Installment Agreement are blocked by unfiled tax returns. But what do you do if you haven’t filed your taxes for years and you don’t have the records or bookkeeping necessary to file those taxes? The first step is a GuardDog Tax Analysis. You sign a power of attorney with us and we procure all your IRS records. This shows us immediately what years have been filed and what have not. As a practical matter, taxpayers with unfiled tax returns often do not know for sure what years were filed and what years were not. Maybe they went to a tax preparer and he was supposed to file, but they never got word that he did. Or maybe the taxpayer  had to get some data together or pay a fee, and he dropped it.

The Broad View

At GuardDog Tax, we take the broad view and cover all possibilities. If the taxpayer tells us he did not file 2015 and 16, we have him sign an IRS Power of Attorney going back to 2010. And when we get the data we need for 15 and 16, we also request the earlier records. That way if the IRS shows earlier unfiled return or returns, we catch it at the beginning and handle it then. It also allows us to view the Wage and Income Transcripts the IRS has on you. In some cases we can file your taxes directly from these transcripts. This would be possible, for example, if all your income was W-2 income and you were taking the standard deduction. On the plus side, the IRS will find no fault with these filings  as they are based on the IRS’s own records. Sometimes these records will be incomplete, and they may miss many expenses that would give you a tax break. These you may have, or we may be able to reconstruct them from your bank or other records. Also, you may not have to file ALL prior year taxes. There are limits on how many back years the IRS will require. If you have unfiled tax returns contact GuardDog Tax at 1-877-758-7797 for a free consultation.
Un-confrontable Tax Debt
Unconfrontable tax returnsThis is a common situation. For whatever reason, your IRS debt has spiraled out of control.  There seems no possible way to pay it.  You keep dreaming of  a fantastic income year to handle it, and it does not happen.  Each year the debt increases, the IRS Notices and Letters flood the mail box, and IRS tax liens, bank levies and wage garnishments trash any hope of financial recovery. Many Americans do not realize that there are legal provisions to protect the taxpayer who is actually unable to pay his tax debt. Indeed, from an IRS negotiation standpoint, a huge IRS debt that you cannot possibly pay is the Ideal situation to get IRS tax debts cancelled! It is a mistake to apply standard business logic to IRS tax situations.  Setting aside money so you can cut  a deal with the IRS and get them to accept a lower payment is fruitless. They will simply levy your bank account, take the set-asides, and demand the full balance, plus accruing interest. There is special action needed to deal  with the IRS. You either study up and get it, or hire someone who has it to  represent you. If your tax debt seems un-confrontable, contact GuardDog Tax at 1-877-758-7797 for a free consultation.
IRS Notices

IRS FormsReceiving a letter from the IRS can be a traumatic experience even if there is nothing wrong. I have had a client arrive to my office trembling because she received an IRS letter asking to verify her address! Read More…

The IRS Is Threatening A Wage Or Bank Levy
Tax Payment OverdueThis requires a fast handling before your wage check shrinks or your bank accounts disappear. What to do? Contact GuardDog Tax for a free consultation. This consultation is usually followed by a GuardDog Tax Analysis where you sign certain legal documents, including an IRS Power of Attorney, and we contact the IRS, get your full tax files, and request adequate time to review these and propose a resolution. [expand title=”Read more…”]There are different gradients of threatened levy. All have an underlying tax situation and all require time to handle this situation. The first step is to find out exactly why the IRS is threatening. There are many different situations in which the IRS uses levy threats. After all, the levy or its threat is how the IRS enforces collection. So a threatened levy is a common denominator to many IRS actions. There are many different gradient levels of levy threats, and different levels or urgency. Each has a specific response indicated. They all indicate AN UNHANDLED TAX SITUATION. I won’t even say debt, as maybe the debt is based on faulty data! Whatever the situation is, there is an appropriate (1) response and (2) remedy. The appropriate response may be for your duly authorized representative to contact the IRS and request all your IRS transcripts and time to evaluate them and propose a remedy.

Remedy

There IS a remedy for any tax situation, but first we find out what the actual situation is. Usually, the taxpayer does not really know. Nor does the IRS employee who answers the phone. To handle a threatened levy requires fast effective action. Notice the words fast and effective, not slow or panicked. So, we have you sign various forms with GuardDog Tax, including an IRS Power of Attorney. We contact the IRS and get all your tax files. Now we see exactly why the IRS is threatening and can handle it. It usually is not that difficult and need not take long. We contact the IRS within 24 hours. Often we can get the IRS to put a hold on any threatened levy action while we review these documents. There are many possible remedies for the underlying tax situations, such as filing un-filed returns, installment agreements (full-pay and partial-pay), offers-in-compromise,  currently not collectible status and penalty abatement. To see if you qualify for these remedies, you may need to submit financial data to GuardDog Tax. Our Tax Analysis will take all these things into account, and recommend a solution.

Analysis

We usually do the reasonably-priced tax analysis as a first step, so you do not spend large sums of money on an Offer-In-Compromise or some other desirable remedy THAT THE TAX ANALYSIS WOULD SHOW TO BE UNAPPROVABLE.  The important thing to know is there is a remedy that IS approvable.  The GuardDog Tax Analysis,  utilizing advanced software and the experience and acumen  of a tax expert, will direct you toward the best resolution for your tax situation. At GuardDog Tax, we intend to win. We do not fight battles doomed to failure. When we go into battle with the IRS on behalf of our clients, we are prepared. We have your IRS transcripts and your financial details. Our computer software, based on IRS Codes and Regulations, interpreted by an EA, CPA or tax attorney,  tells us what the IRS should accept. There is still a battle to be fought and won. IRS employees may seek to violate their own guidelines. Your financial situation may change in the midst of negotiations (e.g. a a windfall inheritance). Maybe you missed reporting assets to us or they are undervalued and the IRS catches it. These all can be barriers to victory. BUT that is far different from going into battle with the IRS knowing your position is doomed and accepting fees to lose the battle. We do not do the latter at GuardDog Tax. We cannot guarantee victory every time we battle the IRS. But we can guarantee that when we go into battle, we expect to win. This is why we do a tax analysis as as first service when major IRS debt is involved. If you have received a levy threat from the IRS, call GuardDog tax for a free consultation 1-877-758-7797.[/expand]

Unfiled Tax Returns
Tax ReturnsOne of the most common tax problems is unfiled tax returns. This is usually the first problem to handle, because most of the other problems cannot be solved until this is resolved. If you have an imminent tax levy, this levy might require a quick call to the IRS to  get time to file. Generally, unfiled tax returns are priority, as other solutions such as the Offer-In-Compromise, Currently Not Collectible Status, and the Installment Agreement are blocked by unfiled tax returns. But what do you do if you haven’t filed your taxes for years and you don’t have the records or bookkeeping necessary to file those taxes? The first step is a GuardDog Tax Analysis. [expand title=”Read more…” class=”readm”]You sign a power of attorney with us and we procure all your IRS records. This shows us immediately what years have been filed and what have not. As a practical matter, taxpayers with unfiled tax returns often do not know for sure what years were filed and what years were not. Maybe they went to a tax preparer and he was supposed to file, but they never got word that he did. Or maybe the taxpayer  had to get some data together or pay a fee, and he dropped it.

The Broad View

At GuardDog Tax, we take the broad view and cover all possibilities. If the taxpayer tells us he did not file 2015 and 16, we have him sign an IRS Power of Attorney going back to 2010. And when we get the data we need for 15 and 16, we also request the earlier records. That way if the IRS shows earlier unfiled return or returns, we catch it at the beginning and handle it then. It also allows us to view the Wage and Income Transcripts the IRS has on you. In some cases we can file your taxes directly from these transcripts. This would be possible, for example, if all your income was W-2 income and you were taking the standard deduction. On the plus side, the IRS will find no fault with these filings  as they are based on the IRS’s own records. Sometimes these records will be incomplete, and they may miss many expenses that would give you a tax break. These you may have, or we may be able to reconstruct them from your bank or other records. Also, you may not have to file ALL prior year taxes. There are limits on how many back years the IRS will require. If you have unfiled tax returns contact GuardDog Tax at 1-877-758-7797 for a free consultation.[/expand]

Un-confrontable Tax Debt
Unconfrontable tax returnsThis is a common situation. For whatever reason, your IRS debt has spiraled out of control.  There seems no possible way to pay it.  You keep dreaming of  a fantastic income year to handle it, and it does not happen.  Each year the debt increases, the IRS Notices and Letters flood the mail box, and IRS tax liens, bank levies and wage garnishments trash any hope of financial recovery. [expand title=”Read more…” class=”readm”]Many Americans do not realize that there are legal provisions to protect the taxpayer who is actually unable to pay his tax debt. Indeed, from an IRS negotiation standpoint, a huge IRS debt that you cannot possibly pay is the Ideal situation to get IRS tax debts cancelled! It is a mistake to apply standard business logic to IRS tax situations.  Setting aside money so you can cut  a deal with the IRS and get them to accept a lower payment is fruitless. They will simply levy your bank account, take the set-asides, and demand the full balance, plus accruing interest. There is special action needed to deal  with the IRS. You either study up and get it, or hire someone who has it to  represent you. If your tax debt seems un-confrontable, contact GuardDog Tax at 1-877-758-7797 for a free consultation.[/expand]
IRS Notices

IRS FormsReceiving a letter from the IRS can be a traumatic experience even if there is nothing wrong. I have had a client arrive to my office trembling because she received an IRS letter asking to verify her address! Read More…

The IRS Audit

In this scenario, the IRS sends you a letter and is asking questions about your tax return. What do you do? The first step to do is read the notice and see if you understand it. If you do, you may be able to resolve it yourself. Maybe you or your return preparer failed to include W-2 Income from one employer. Well, if you know what you are doing, that can be simple enough to handle. The most basic rules on handling a tax audit is don’t guess and don’t lie. If you are confused and cannot figure out what is wrong, get assistance. Now, if you have total confidence and trust in your tax professional, and he is an Enrolled Agent (the highest federal tax credential) or a CPA (the highest state credential), then this could be the person you contact.

If your return was prepared by a “licensed tax professional” you might want to think twice. The minimal requirement to be a licensed tax professional is the ability to fill out an application. There is no training, experience, or educational requirement to be a licensed tax preparer. Many large tax preparation firms use tax preparers who are not Enrolled Agents or CPAs and who call themselves Licensed Tax Preparers. Now, any EA or CPA will call himself by his designation, and will not call himself a “Licensed Tax Preparer”. If you do not see EA or CPA on the letterhead or on a certificate on the wall, you are likely dealing with a “licensed tax preparer.” And now you have questions from the IRS. If you, upon reviewing the IRS Correspondence and your experience with your tax preparer, wonder if your tax return was done right, now would be a good time to contact an Enrolled Agent  or at least a tax-specialized CPA.

Contact GuardDog Tax for a free consultation at 1-877-758-7797. 

If you have been summoned for an audit down at the IRS office, the IRS believes there is an issue with your tax return big enough to assign to an IRS Revenue Agent. Of course if your return was properly prepared and you know what you are doing, you should have nothing to fear, right?

No. Not right.  This is analogous to being summoned to a police interrogation down at the station house and read your Miranda rights. Even if innocent, it would be wise to have a lawyer present. And what if your bookkeeping is poor or there WERE mistakes on your tax return. It would be prudent to have all these points already corrected, and attend the audit with your Enrolled Agent. He will know enough to protect your rights, make any needful corrections, and limit any damage. Because he has reviewed the return, corrected it if needed, and knows it is correct, he can make sure the Revenue Agent stays on track. Maybe the RA has some confusion and says a valid deduction or expense is invalid. You need an EA who will not be rattled and who can politely correct the Revenue Agent.

In many cases, it is wise to have the EA representing you go alone.  That way, if the IRS drops a bomb, he EA can get back with you.  “What is this $50,000 dollar deposit on  your account that is not reported as income?”  EA “Gosh. I don’t know. I  will have to get with my client and get back with you.” Then the EA can either fess up for you or put the data in its best light. e.g.  “That is money that his Mom gave him as a loan/gift.  Whereas. if you had said  to IRS “That is money my  Mom gave  me for taking care of her sister for a year when she was ill.”  this might become care-giver income to the IRS.  This is a marginal area, and I am not proposing to lie before the IRS.  But if there are two ways an event can be honestly described, and one way gets you out of IRS trouble and the other gets you into it,  you might want to use the first description.   You do not want an off-the-cuff answer to become the stable truth the IRS operates off of.  It is easier to say it right the first time.  And If you are not at the audit,  then you and your Representative can review the facts and present it honestly in the most favorable light.

If you have been directed to an audit at the IRS Office,  contact GuardDog Tax at 1-877-758-7797 for a free consultation.

We highly recommend that you get proper IRS Representation for this type of audit. Your return was selected because the IRS believes there are MAJOR issues with your tax return and they have assigned your case to an experienced IRS Revenue Agent to discover all issues with your tax return. The IRS plans an audit at your home or place of business. The IRS will review your home or business environment to determine if you have reported all your income. It is your right to have a professional represent you. This has many advantages. The interview can be held in the professional’s office. Moreover, the RA may ask a question that is potentially incriminating or opens Pandora’s box. The EA can say “OK. I do not know the answer. Let me get with my client and get back to you.” He can then get with you and get the answer to the question and present it properly. A taxpayer, confronting the IRS|, worried and confused, can say the wrong thing and look really bad. But, a cool-headed EA, can get with the client, find out all the details in a systematic fashion, answer the RA’s question correctly, and provide substantiating documentation.

Contact GuardDog Tax at 1-877-758-7797 for a free consultation

In this scenario, the IRS sends you a letter and is asking questions about your tax return. What do you do? The first step to do is read the notice and see if you understand it. If you do, you may be able to resolve it yourself. Maybe you or your return preparer failed to include W-2 Income from one employer. Well, if you know what you are doing, that can be simple enough to handle. The most basic rules on handling a tax audit is don’t guess and don’t lie. If you are confused and cannot figure out what is wrong, get assistance. Now, if you have total confidence and trust in your tax professional, and he is an Enrolled Agent (the highest federal tax credential) or a CPA (the highest state credential), then this could be the person you contact.

[expand title=”Read more…”]If your return was prepared by a “licensed tax professional” you might want to think twice. The minimal requirement to be a licensed tax professional is the ability to fill out an application. There is no training, experience, or educational requirement to be a licensed tax preparer. Many large tax preparation firms use tax preparers who are not Enrolled Agents or CPAs and who call themselves Licensed Tax Preparers. Now, any EA or CPA will call himself by his designation, and will not call himself a “Licensed Tax Preparer”. If you do not see EA or CPA on the letterhead or on a certificate on the wall, you are likely dealing with a “licensed tax preparer.” And now you have questions from the IRS. If you, upon reviewing the IRS Correspondence and your experience with your tax preparer, wonder if your tax return was done right, now would be a good time to contact an Enrolled Agent  or at least a tax-specialized CPA.

Contact GuardDog Tax for a free consultation at 1-877-758-7797. [/expand]

If you have been summoned for an audit down at the IRS office, the IRS believes there is an issue with your tax return big enough to assign to an IRS Revenue Agent. Of course if your return was properly prepared and you know what you are doing, you should have nothing to fear, right?

[expand title=”Read more…”]No. Not right.  This is analogous to being summoned to a police interrogation down at the station house and read your Miranda rights. Even if innocent, it would be wise to have a lawyer present. And what if your bookkeeping is poor or there WERE mistakes on your tax return. It would be prudent to have all these points already corrected, and attend the audit with your Enrolled Agent. He will know enough to protect your rights, make any needful corrections, and limit any damage. Because he has reviewed the return, corrected it if needed, and knows it is correct, he can make sure the Revenue Agent stays on track. Maybe the RA has some confusion and says a valid deduction or expense is invalid. You need an EA who will not be rattled and who can politely correct the Revenue Agent.

In many cases, it is wise to have the EA representing you go alone.  That way, if the IRS drops a bomb, he EA can get back with you.  “What is this $50,000 dollar deposit on  your account that is not reported as income?”  EA “Gosh. I don’t know. I  will have to get with my client and get back with you.” Then the EA can either fess up for you or put the data in its best light. e.g.  “That is money that his Mom gave him as a loan/gift.  Whereas. if you had said  to IRS “That is money my  Mom gave  me for taking care of her sister for a year when she was ill.”  this might become care-giver income to the IRS.  This is a marginal area, and I am not proposing to lie before the IRS.  But if there are two ways an event can be honestly described, and one way gets you out of IRS trouble and the other gets you into it,  you might want to use the first description.   You do not want an off-the-cuff answer to become the stable truth the IRS operates off of.  It is easier to say it right the first time.  And If you are not at the audit,  then you and your Representative can review the facts and present it honestly in the most favorable light.

If you have been directed to an audit at the IRS Office,  contact GuardDog Tax at 1-877-758-7797 for a free consultation.[/expand]

We highly recommend that you get proper IRS Representation for this type of audit. Your return was selected because the IRS believes there are MAJOR issues with your tax return and they have assigned your case to an experienced IRS Revenue Agent to discover all issues with your tax return. The IRS plans an audit at your home or place of business. The IRS will review your home or business environment to determine if you have reported all your income. [expand title=”Read more…”]It is your right to have a professional represent you. This has many advantages. The interview can be held in the professional’s office. Moreover, the RA may ask a question that is potentially incriminating or opens Pandora’s box. The EA can say “OK. I do not know the answer. Let me get with my client and get back to you.” He can then get with you and get the answer to the question and present it properly. A taxpayer, confronting the IRS|, worried and confused, can say the wrong thing and look really bad. But, a cool-headed EA, can get with the client, find out all the details in a systematic fashion, answer the RA’s question correctly, and provide substantiating documentation.

Contact GuardDog Tax at 1-877-758-7797 for a free consultation[/expand]