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How To Avoid IRS Notices And Penalties

How To Avoid IRS Notices And Penalties

Notices and penalties are two powerful collection forces that IRS uses to get taxpayers in line with their tax obligations and that these two should be avoided. They can be a threat to taxpayers and may cause you trouble if a lot of them get into your tax payment system. IRS can penalize you with just about anything you can imagine. The best way to fight penalties is to get ahead with them and know for what reasons and when they strike. You don’t need to study all the penalties based on the Internal Revenue Code, you can consult a tax attorney who knows the way around tax laws and legalities for a better understanding on these matter.

What are IRS notices and IRS penalties?

A notice is simply the IRS’ way of informing you that there has been a change on your account for a particular tax year and most common though not always may indicate the amount of taxes you owed has increased. Penalties are imposed due to failures related to Federal or local state taxes like failure to file income tax or filing incorrect returns. Penalties can be civil or criminal or both. They can be monetary, may involve forfeiture of asset/s or you may be sent to jail. Most of the time, monetary penalties are based on the amount of taxes not paid on time and has the ability to increase during the period of nonpayment.

IRS sends millions and millions of notices every year and they can’t deny the fact that most of the notices they send out are not correct. And because an IRS notice cannot be ignored, a lot of taxpayers often respond to these notices and are paying incorrect penalties. You don’t need to pay for these unnecessary penalties if you knew within your mind that you shouldn’t be paying them, you can appeal and fight for what is right especially when you have enough documents to prove that you are compliant with you tax obligations. Penalties can tremendously increase and usually surpasses the amount of taxes that you actually owe IRS. If IRS penalties are a lot more than you can afford, you should seek help from a tax attorney immediately to know what your chances are in order to obtain a Penalty Abatement. Penalties or in IRS’ terms “additions to tax” compound as time goes by and no one can be escape from it.

The best way to avoid IRS notice and IRS penalties is to observe and follow rules in filing income tax returns in a timely manner. If you are on this track right now, then you are already winning the battle against IRS. But if you’re not and in trouble with IRS regarding a very high tax debt plus penalties and interest consult a tax professional such as a tax attorney, CPA or an IRS enrolled agent immediately. Instant Tax Solutions can better provide IRS tax relief help than any other company can. ITS has a team of brilliant and experienced tax professionals that specializes in tax relief aid.…

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Tips For Contacting the IRS For Tax Help – What You Don’t Know Might Hurt You

Tips For Contacting the IRS For Tax Help – What You Don’t Know Might Hurt You

IRS Commissioner Douglas Shulman has pledged that IRS agents will have more flexibility to reach tax settlements with taxpayers who have fallen on hard times and owe back taxes, but it is important to remember that “Revenue ” is the IRS’s middle name.

With the IRS, making things “easy” means separating taxpayers from their money with as little friction as possible. What is good for the IRS generally is not’t good for you. Additionally, while you may owe some back taxes, your tax liability may not be as much as the IRS believes.

It is important to consult with a tax attorney or Certified Tax Resolution Specialist to go over your case before you contact the IRS because everything you say to that friendly government agent “can and will be used against you.” Confiding your tax woes to the IRS is not a good idea – it would be like confessing your sins to a prosecutor without your defense attorney present.

But if you are determined to contact the IRS for tax help, you need to be smart unless you want increase your audit risk and/or tax liability. It isn’t just “what you don’t know can hurt you,” it is what the IRS agents themselves don’t know that can really hurt you.

The IRS Will Give You Bad Tax Advice 43% Of The Time

If you have collection-related matters, bank levies, tax liens, your wages are being garnished or you’re being audited, instead of calling a tax attorney or Certified Tax Resolution Specialist, your first impulse might be to call the IRS itself to seek clarification on your back tax issue. Unfortunately, while the IRS might tell you why they are going after you, they have a horrible track record for giving out tax relief advice on how to resolve back taxes and IRS problems.

The IRS offers 10 reasons you should visit its Taxpayer’s Assistance Centers “for good old-fashioned face-to-face assistance from the Internal Revenue Service. No recorded menus. No hold music.” Sounds great! But there’s one big reason not to. Without a tax attorney or Certified Tax Resolution Specialist on your side, you have an even greater chance of making your back taxes situation worse.

It’s important to keep in mind that when you work with the IRS, their agents, unlike tax attorneys or Certified Tax Resolution Specialists, often don’t have the proper training to provide you with the tax help that you need. When you make that call to the IRS 1-800 help line number, you’re essentially putting your financial fate in the hands of someone that doesn’t have the knowledge or experience to deal with your tax situation. It is the job of a tax attorney or a Certified Tax Resolution Specialist to make sure that IRS representatives adhere to their own rules.

My best advice, if you do end up on the phone with the IRS, is to take down the rep’s name and their extension number so you have a record of who you’re talking to. A lot of them don’t give you their name, and they don’t want to give you their badge number. Those are the people you’ll really have to watch out for.

How to Ensure You Don’t Pay A Penny More to the IRS Than What You Owe

Fortunately, there is a way to greatly increase your odds of a favorable resolution. Tax attorneys or Certified Tax Resolution Specialists are dedicated to fighting for you when they go to battle with the IRS. And the money you spend on tax attorney or Certified Tax Resolution Specialist fees will be saved many times over in the taxes and penalties that you do not have to pay.

So if you get that scary letter from the IRS, you don’t have to feel alone because a tax attorney or Certified Tax Resolution Specialist can help you and go to bat with the IRS on your behalf! Know that if you try to represent yourself before the IRS, you will end up in a losing battle. Plus expert tax help from a tax attorney or Certified Tax Resolution Specialist can help you ensure you don’t pay a penny more to the IRS than what you owe.

For any back taxes under $10,000, you can pick up the phone and give the IRS a quick call and they’ll set you up on a small monthly payment plan for $100-$115/month. You will not have to fully disclose your financial information (where you work, how much is in your .) to be able to be set up with a reasonable payment plan unless you owe more than $10,000.

Negotiating Your Back Taxes and IRS Debt

Most tax attorneys and Certified Tax …

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The Top 2 Commandments To Handling Any IRS Tax Controversy

The Top 2 Commandments To Handling Any IRS Tax Controversy

Yes, I realize there are already thousands of articles published on handling IRS controversies relating to a whole host of matters. Most focus on particular tax topics, such as how to handle an audit or representing oneself pro se in the U.S. Tax Court. So long as the information is accurate, then great, I hope you, the taxpayer, find whatever you are looking for.

One problem that I see, however, is that very few articles focus on the absolute fundamentals of dealing with any IRS controversy. And when I say “tax controversy,” let me just clarify by saying that for me the term “tax controversy” entails many things, but for purposes of this article, a “tax controversy” is when the IRS takes issue with one of your previously submitted tax returns or failure to file a tax return.

When dealing with the IRS, it is essential that you understand some very fundamental things. So essential, in fact, I refer to them as the 5 Commandments.

Commandment I: Do Not Ignore the IRS!

Seems simple enough, but even cynics would be surprised at the number of people who simply ignore the IRS in the hopes they will just lose interest and go away. Unfortunately, the IRS does not go away. As a matter of fact, it is quite the opposite. Failure to respond to IRS inquiries will eventually give the IRS the right to impose its will on you. That amount in controversy is no longer in controversy – it is now assessed and owed. Let me provide an example.

Example 1 – Taxpayer John purchased his first set of stock in the beginning of 2008. The total amount purchased was $10,000. John quickly realizes 2008 is a terrible year to start buying stocks so manages to sell all his stock by the end of 2008 for $8,000. As you can see, John lost $2,000 in this process. Now, let us say the IRS sends taxpayer John a letter stating that it disagrees with how John treated his capital gains with respect to the stocks bought and sold in 2008 and would like him to submit additional paperwork in order to substantiate his claims of the stock’s basis. Instead of responding, however, John ignores the letter from the IRS. In fact, John ignores all subsequent letters as well. As a result, the IRS disallows the $2,000 loss and instead assesses an $8,000 gain.

As you can see, this $10,000 swing will greatly affect his tax liability, and thus the amount he will owe to the IRS. But wait! What about John’s basis? Shouldn’t the IRS know John had to have some basis in the stock?

Yes, the IRS does know John has some basis in the stock, but the point to remember here is that the IRS is not responsible for determining the stock’s basis, John is responsible. When John does not respond to the IRS letters, the IRS is left with no choice but to treat the stock as if it had a basis of zero.

Trust me when I say this – if you try to work pro-actively with the IRS, you will be treated fairly. If you decide to ignore the IRS, they simply cannot give you the benefit of the doubt.

Commandment II: Do Not Panic

People make irrational decisions when panicked. My advice – remain calm. Personally, the IRS reminds me of a turtle. A turtle is smart, but slow. Garnishing wages and levying on property are actions of last resort and take a long time to come about. The IRS simply does not want to have to take your case that far. Also, the IRS rarely hands cases over to the Department of Justice in order to bring criminal charges against you. Honestly, the IRS does not think you are worth it, so do not give them a reason to make it worth their time. Remain calm and you will make good decisions.…

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How FHA Loans Help You Buy A House

How FHA Loans Help You Buy A House

Federal Housing Administration (FHA) has been a homebuyer’s favorite since it was created by the Department of Housing and Urban Development. It was started with the purpose of helping first time buyers. FHA does not provide loans; it insures loans given by any private lenders. It helps the buyers, especially low income buyers, in buying affordable houses.

Contrary to the conventional mortgage companies which often ask for 20% of the purchase price as down payment, FHA requires only 3.5% as down payment, which includes the processing fee of the loan. If you wish to know the amount of mortgage credit you are eligible for, go through the HUD website and check your credit limit. If the price of the house that you are planning to buy is within this limit, FHA can insure the loan.

Additionally, lending institutions generally will not give you a loan for repairing the house that you are buying. Under FHA rules, repairing and restructuring of the house may also be financed. Amounts provided for repair is put in escrow account so that it can be used as per the requirement.

Another popular benefit of FHA is the reverse mortgage. A citizen above 62 years of age without any major source of income other than social security can do a reverse mortgage his house through the FHA if he has clear title. The citizen can stay in the house and get money during his lifetime to pay his medical bills etc. He would not be required to repay the loan as long as he stays there.

It is wise to make house energy efficient. FHA helps home owners in adding energy efficient features to the house. In this case too, a borrower needs a 3.5% down payment upfront and gets the rest 96.5% financed by a mortgage company.

Mobile or manufactured homes are increasingly popular. In a state like Florida, one third of the houses are mobile homes as the cost of living has made it more desirable. FHA loans are available to people who own the land to place their mobile homes on, or those who will place their mobile homes in mobile home parks.

A person may be eligible for an FHA insured loan even if he has a bad credit history or is in financial problems. It can also help an individual in buying a house after a discharge from bankruptcy. The FHA rates are most competitive and the mortgage terms are usually as straightforward as any basic mortgage, although there is always extra paperwork which must be signed at closing.

FHA insured loans are available to everyone, however, they are primarily used by the first time house buyers, buyers in lower and middle income groups and the buyers with poor credit ratings. The only drawback is the extensive paperwork that you have to do. For that, you might need to consult a real estate attorney to understand the terms and conditions properly before you buy the desired house.

* This article does not constitute legal advice and does not establish an attorney-client relationship.…

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IRS Tax Attorneys – Can They Solve Your IRS Tax Issues?

IRS Tax Attorneys – Can They Solve Your IRS Tax Issues?

IRS tax attorneys are experts in such laws and can provide assistance to those who are facing liability penalties issued by Internal Revenue Service. They can help you to get Offers in Compromise s well as in abatement of penalties. In addition, these legal representatives are able to help in removal of federal tax liens, bankruptcy discharge analysis and appeals representation.

There are several different firms that specialize in such resolution. They hire the best lawyers in order to help their clients. But before appointing a particular lawyer, it is advisable to have a thorough knowledge about the various tax law attorneys. This will help you to determine whether or not their skills and expertise will help in your case. Moreover, it is your lawyer who will negotiate on your behalf with the IRS officials. Thereby, it is crucial that choose the right kind of lawyer to save your money and reputation. The following are the different types of legal representatives that deal with tax related issues.

There are some lawyers that are experts in property related issues and help the defaulters to renegotiate with the IRS. They help you to form a proper case so as to present for the court proceeding. In addition, they help the defaulter to survive audits as well as to file the right deductions.

The IRS attorneys who specialize in tax planning are able to review and structure your financial affairs so that you can avoid such problems. They must be well acquainted with the latest tax laws. This kind of legal representative are able to help both the civilian and corporate clients.

There are some attorneys who have proficiency in handling bankruptcy cases. They will assist you to file for bankruptcy. They ensure the IRS officials on your behalf that all the finance related information is valid and accurate. In case of repayment, they will also negotiate with the officials.

The legal representatives who are expert in managing such controversies are ideal if you have pending cases filed in the court. They are experienced in courtroom procedures as well as in working with the IRS officials. Thereby, they can conveniently prove your innocence if you can provide proper documents.

The fees of these legal representatives are generally higher than the regular attorneys. But they are the best person to consult with while facing trouble with the IRS. Always keep in mind that the auditor is not there to solve your problem, they are being paid by the government and their sole purpose is to ensure the latter’s benefit.…

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Tax Relief Attorneys and the IRS

Tax Relief Attorneys and the IRS

When you have tax problems, the anxiety brought on can cause even the most levelheaded tax payer in an incomprehensible situation. A tax relief attorney is often the solution to these urgent issues. Specializing in audits, assessments, liens, and penalties, tax relief attorneys can help you with IRS queries, official procedure, correspondence with the tax administrative center.

Tax relief attorneys’ responsibility to their customer is to take the fear and confusion from your hands and leave it with a skilled qualified professional who is well versed in IRS commandment. Speaking your issues, intent, and willingness to comply within the legal guidelines, a taxation attorney is able to relay these issues in the way adequate and understood by the Tax office.

There are certain times where an individual will should appoint an taxation attorney. When a person has a debt with the IRS, and is unable to pay, it is feasible to enter negotiations and that is where a respectable IRS tax attorney is desirable. No one is entirely skilled at running their money and they could enlist the services of a tax expert to help them in the course of a predicament. Here’s a few other situations to contact a tax lawyer

1. You might need to hire a tax lawyer when you have to file a instance versus the Internal Revenue Service or arguments or any connected circumstances.

2. You may be someone or a corporation wanting to compromise with the tax office authorities and chances are you’ll would like to stop paying your taxes in full because your business is small.

3. When you’re organized to file your tax papers and you realize they are misplaced

4. For anyone who is in need of legal consultations concerning a crucial income tax difficulty.

5. In the event you have need of a expert who has a profound comprehension about taxpayer’s negotiations on your part.

6. If the Tax office speculates any taxpayer’s problems on your assets or property.

7. If you’re on the low-income individual list and where unable to pay income tax. You could possibly still get a return that is a type of tax relief.

During the experience of the most terrible circumstances to a tax payer, the audit, an IRS tax attorney is invaluable.

Defending your rights as a tax payer or business is foremost of great matter an IRS attorney that has your best interest at heart. A further dilemma a tax relief attorney can assist you with wage garnishments. A wage garnishment can take a significant chunk out of your paycheck, leaving barely sufficient income to survive on. An income tax attorney can find a resolution to the wage garnishment that will be satisfactory to the Tax office and easier on your checkbook.

If you solicit the services of an Tax attorney be certain that they are actually an expert and accustom with your financial matters. An business tax lawyer can give advice you on all the preceding judgments and will familiarize you with all the areas of income tax. Although the IRS legal guidelines are written in English, they will still be incomprehensible to the normal individual due to all the technicalities and jargon involved. The IRS tax attorney can read the laws with you, explain them to you and make it easy for you to comprehend.

Before interviewing a tax relief attorney, be certain that you are dealing with the lawyer who will manage your case to be able to determine if the income tax attorney you are dealing with is the right one to hire. Ensure it is a point to meet them personally. During your interview, focus more on their track records and a preliminary view of your situation when you ask questions. This can help you decide if the IRS tax lawyers on behalf of you is good enough to ensure success. Additionally, tax attorneys possess the capability to help with most wage tax and banking garnishment matters that you might have. Tax attorneys are capable of rendering criminal and civil additional examination.

Again, recommendations from family and friends are great when you find yourself looking for a tax IRS attorney. You may also decide to check out the internet to point you to some reliable firms.…

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Why You Shouldn’t Deal With Tax-Related Legal Matters Yourself

Why You Shouldn’t Deal With Tax-Related Legal Matters Yourself

Do you think that you are competent enough to represent yourself at the court of law in tax-related cases? Well, it might seem to be an economic option but, do you know that if you represent yourself at the court you will have to face strong oppositions? And in most of the cases it is the IRS (Internal Revenue Service, a government agency responsible for tax collection and law enforcements) that is opposite you. Nevertheless, there are thousands of aspects of tax related laws that you are ignorant about. You should also remember that different individuals have their own unique case that needs to be dealt with differently. You case might be entirely different in multiple aspects from your fellow colleagues – you might have made mistakes while filling the returns forms, while your friend might have done a tax fraud! So, it is advised that you seek professional help as the tax law is complicated. Only a professional tax attorney is well trained and aware of laws and its clauses. S/he also has the required knowhow to use these laws appropriately. If a tax attorney is called for once the case gets complicated, it would take a lot of time in undoing the damage that has already been done. By hiring a tax attorney on time you could be benefitted from the following:

* Protection against IRS mistakes

If you are wrongfully convicted in a tax related crime, a tax attorney would be able to guide you in the best possible way to get out of the situation. Not only this, a professional would be able to guide you through the right procedures for filing returns and managing your finances. Moreover, by hiring professionals, you could avoid mistakes in the paperwork and complexities in the entire procedure.

* Full protection of the law

An experienced tax attorney would be able to provide you the best protection under the law. He can bring your case under the right legal clauses and is well trained to deal with such cases efficiently. Nevertheless, you should know that it is not possible for an untrained person to fathom out from the complexities that tax related legal procedures generally have. S/he is well aware of the things you are entitled to and your rights and duties; so, s/he can be your best guide.

So, you can see that you could literally avoid a list of complexities and hassles by hiring a tax attorney. Connecticut based IRS Medic is a reputed law firm to approach in case you need specialized attorneys to help you with the tax related problems at the lowest expenditure.…