IRS Tax Collections Archives - Page 3 of 6

July 21, 2017 By Michael

IRS Tax Audit Questions: Before the Audit

When you hear the words IRS Audit, in any context, a chill goes up your spine. When you see those words and your name in the same sentence, that chill becomes a panic. And once you are done hyperventilating, you will have a BUNCH of questions.

Tax attorney Joseph M. Arndt and the IRS Away team would like to take a look at some of these IRS audit questions, courtesy of the IRS itself. And we would also like to remind you that, if these questions apply to you, you have somebody on your side!

IRS Tax Audit Question #1: Why Me?

Did you do something on your IRS tax return to draw their attention? Maybe, maybe not. Sometimes it’s a matter of random computer selection. The computer compares you to other people like you – they call this the Norm. If your IRS tax return differs from the Norm too much, that can be a trigger.

Other times, someone else out there in the Norm – somebody with income or deductions similar to yours – has been audited. Since you are somewhat like them, you get caught in the net. When the computer flags you, it goes to a real live person who reviews your IRS tax return and then decides whether or not to move the audit process forward.

IRS Tax Audit Question #2: What is the Process?

First of all, if the IRS goes forward with the audit process, they will notify you by mail. In this era of online and telephone phishing scams, that’s important to remember.

As we have said previously, the location of the audit is a good indication of how serious your IRS problems may be. A “by mail” audit may simply request for missing documents. A “come into the IRS office” audit may be looking for unreported income or improper deductions. An “in your home” audit is the most serious, and includes a thorough investigation of your home and belongings.

Regardless of the severity, you should take any audit seriously, and seek the professional help of Tax attorney Joseph M. Arndt and IRS Away!

IRS Tax Audit Question #3: What do I Need?

The IRS will tell you exactly which documents they require. Here is a potential list. This might include hardcopies of documents, or electronic ones. Be sure to ask the tax auditor what is acceptable. Hopefully you have kept all of your documents for (at least) the past three years, though many people prefer seven years.

IRS Audit Tax Question #4: How do I Respond?

The IRS will tell you how much time you have to respond. If you send your records by mail or other delivery service, ALWAYS request confirmation that they received it. If you need more time to pull your records together, you can send a written request for a 30-day extension (for a by-mail audit) or contact the auditor personally (for an in-person audit.) There are certain conditions that determine whether or not they will grant the extension.

IRS Tax Audit? Call IRS Away!

By now, you are staring to wade into the process. It typically will only get more complex from here. If you haven’t already done so, contact Tax attorney Joseph M. Arndt and IRS Away!

Next time: What happens now? And how will IRS Away help me navigate the tax audit process? Stay tuned!

September 22, 2016 By Tax Attorney

Tax Problems – An IRS Top 10 (Part 2)

In our last post we began to look at common tax problems, from a Forbes Magazine article called “The Top 10 Most Litigated Tax Issues.” These tax problems – and the process of dealing with them – can be very high-stakes situations that, as we say, can “destroy the life and business you have built because you do not know how to defend yourself.” And these are situations where you definitely do NOT want to stand alone. Let’s continue with the list of…

Common IRS Tax Problems

Tax Problem 5: Accuracy-Related Penalties

These are IRS penalties that result from the underpayment of taxes. In some cases, taxpayers have successfully (and some unsuccessfully) argued that the tax preparer was at fault.

Tax Problem 4: Trade or Business Expenses

Many aspects to this one, most involving the taxpayer’s inability to justify deductions. Failure to properly separate business and personal expenses. Failure to produce receipts. Improper home office expense deductions, etc.

Tax Problem 3: Summons Enforcements

The IRS has the right to examine any records and other documentation related to a civil or criminal tax case. If you refuse to cooperate, the IRS may turn to your employer or your bank, which can be inconvenient and embarrassing.

Tax Problem 2: Gross Income

As in, failing to fully report of gross income. Income from multiple sources, cancellation of debts, beneficial court settlements, inheritances, etc.

Tax Problem 1: Appeals from Collection Due Process Hearings

Less of a problem than a possible remedy. If you have been through due process with the IRS, and have a judgment against you, this is your opportunity to appeal the ruling and request an independent review.

One thing you might take away from this list (parts 1 and 2) is the sheer number of ways you could find yourself in the midst of an IRS problem. The IRS has a big toolbox and tremendous discretion in dealing with your tax problems. Shouldn’t you ALSO have tools and allies at your side when that time comes?

Contact IRS Away Today

The IRS Away team offers free consultations and peace of mind knowing that your IRS tax problems are being dealt with effectively and professionally. Contact tax attorney Joseph M. Arndt III at (803) 771-4037 for a free consultation.

April 15, 2016 By Tax Attorney

IRS Tax Debt and Your Property

A Tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service (IRS) under statutory authority, without going to court, to seize property to satisfy a tax liability. The levy “includes the power of distraint and seizure by any means”. The general rule is that no court permission is required for the IRS to execute a section 6331 levy. For taxpayers in serious debt to the IRS, the most feared weapon in the IRS arsenal is the tax levy. Using the powers granted to the IRS in the Internal Revenue Code, the IRS can levy upon wages, bank accounts, social security payments, accounts receivables, insurance proceeds, real property, and, in some cases, a personal residence. Under Internal Revenue Code section 6331, the Internal Revenue Service can “levy upon all property and rights to property” of a taxpayer who owes Federal tax. The IRS can levy upon assets that are in the possession of the taxpayer, called a seizure, or it can levy upon assets in the possession of a third party, a bank, a brokerage house, etc. All future statutory references will be to the Internal Revenue Code unless noted otherwise.

If you have tax problems and are concerned with a tax levy, contact us today.

Put Your IRS Tax Problems Behind you - NOW!