Are you a victim of identity theft?

money worriesIdentity theft has become an major issue for many taxpayers. Everything from your social security number to your birthdate may be easily stolen, from anything from a job application to an unscrupulous website.

This video from the IRS explains what to do if you are a victim of identity theft.

In the event that you suspect that your identity has been compromised, contact the IRS directly.If you have major tax issues, give us a call to see how we can help you get the good night’s sleep you deserve.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

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More than 89,000 IRS Employees Furloughed

The Obama Administration’s sequester has trickled down to the IRS. The sequester is affecting more than 89,000 IRS employees that are being furloughed. All IRS employees are included from the Acting Commissioner, Steven T. Miller to agents, officers and clerks. The furlough days are: May 24, June 14 (interesting that they chose Flag Day), July 5 (nice extra 4-day weekend), August 30 (another 4-day weekend for Labor Day) and there may be other days in August or September.

How the furloughs may affect you

Do expect a no-response from IRS personnel on these sequester dates especially the toll-free helpline and other operations for public assistance including their local offices.

However, do not expect any reduction in audit or enforced collection matters. You are still required to meet your filing and correspondence requirements regardless of the sequester.

IRS, like a business will find a way to compensate for this sequestered time and meet its required deadlines.

Internal Revenue Service

Internal Revenue Service (Photo credit: functoruser)

If you have major tax issues, give us a call to see how we can help you get the good night’s sleep you deserve.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

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What if I get an audit letter from the IRS?

Logo of the Internal Revenue Service

Logo of the Internal Revenue Service (Photo credit: Wikipedia)

April 15, 2013 will be a tax day that will live in infamy with the bombings at the Boston Marathon. Our thoughts and prayers are with the survivors, the families of those who perished, the investigators and all the people of Boston. It was thoughtful of the IRS to extend the tax deadline for 3 months for Boston area residents and U.S. participants of the marathon. It’s automatic for residents of Suffolk County, Mass. Those who participated in the marathon, but don’t live in that county may call the IRS at: 866-562-5227 and request an extension.

Many of you who have filed already may think, “Ah, it’s over! My tax return is done and I don’t have anything to worry about.” Yes, until that dreaded certified letter comes in the mail notifying you that you’re being audited by the IRS. (They can also call you, but they’ll follow-up with a letter afterward.)

Why in the world would they be auditing me?

You’re probably self-employed. If you don’t get a W2 form from an employer which shows that taxes were deducted automatically, you’re on the honor system when it comes to reporting your true earnings and the deductions you took were valid ones. If you’re a 1099 contractor and all your income was reported on 1099s, you shouldn’t have a problem. Depending on how many “red flags” appear on your return, they may want you to show proof of certain expenses or require an full audit. This is not to say that only self-employed people get audited. You may be selected totally at random. Or you may be connected to an investor or partner who’s being audited. It’s also possible that documents don’t match – like W2s or 1099s from the payor don’t match what you put in your tax return. This may occur when an employer, especially with 1099s, didn’t send out the forms by Jan. 31, which may have left you “guessing” the amount.

What is an income tax audit?

An IRS audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate. (IRS)

If you accurately reported your income and expenses and kept careful records of everything, you shouldn’t have much of problem.

But if you do get an audit letter from the IRS, here are steps you should take immediately:

  1. Open it. You cannot ignore it and the problem won’t go away.
  2. It may be that they just want additional copies of records or information. Send what they are asking for by the date designated.
  3. If it’s a face-to-face audit, get representation immediately. Don’t go it alone. You may say something that will make things worse.
  4. If you cheated on your taxes and they caught you, again, get representation immediately.

Your rights as a taxpayer during an Audit:

  • A right to professional and courteous treatment by IRS employees.
  • A right to privacy and confidentiality about tax matters.
  • A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
  • A right to representation, by oneself or an authorized representative.
  • A right to appeal disagreements, both within the IRS and before the courts. (IRS)

In any rate, don’t lose sleep over it — give us a call.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

 

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Related articles

Paying income taxes on April 15 – What to do if you can’t pay the IRS

taxes due April 15One of the biggest fears many American taxpayers have is not being able to pay their income taxes due on April 15.

Here are some solutions if you can’t pay your taxes on time:

  1. File on time. The penalty for not filing is worse than if you file, yet don’t pay your tax bill in full. It will cost you 5%/month on any unpaid tax if you haven’t filed a 1040 form. If you send the return, but no money, you’ll be charged only .5% of the tax owed for each month.
  2. Make arrangements to pay. You’ll avoid taking the brunt of the penalties that can reach to a 25% maximum.
  3. If you can’t afford to pay your tax bill in full, send the IRS at least a down payment. The IRS has payment plans at lower interests that credit cards. Using a credit card may cost you more in the long run.
  4. File form 1127. Not many people know about this form. Form 1127 is an application for an extension of time for payment of tax due to undue hardship. Be prepared to write your story of why you can’t pay. Include unemployment, business loss, divorce, natural disasters, and anything else that has led you to financial hardship.
    Undue hardship. The term “undue hardship” means more than an inconvenience. You must show you will have a substantial financial loss (such as selling property at a sacrifice price) if you pay your tax on the date it is due.
    When To File Form 1127: File Form 1127 and its supporting documentation as soon as you are aware of a tax liability or a tax deficiency (you owe more than what was stated on your return), you cannot pay without causing undue hardship.
    If you are requesting an extension of time to pay the tax due on an upcoming return, Form 1127 must be received on or before the due date of that return, not including extensions. If you are requesting an extension of time to pay an amount determined as a deficiency, Form 1127 must be received on or before the due date for payment indicated in the tax bill.

Face it, folks, you can’t avoid paying your income taxes. And it’s not worth losing sleep over it.

If you owe more than $15,000 to the IRS, give us a call to see how we can help you get the good night’s sleep they deserve.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

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#IRS Revenue Officer vs a #CPA – They have more in common than you think

George S. Boutwell was the first Commissioner ...

George S. Boutwell was the first Commissioner of Internal Revenue under President Abraham Lincoln. (Photo credit: Wikipedia)

CPAs often view IRS revenue officers as “the enemy.” But they actually have many things in common.

The IRS Revenue Officer vs a CPA:

  1. They both have a hard time getting taxpayers/clients to provide the necessary, requested information promptly.
  2. They both feel the pressure to obtain unjustified and unqualified results. The CPA has clients who wish to pay way less than what they really owe and the revenue officer has a supervisor who wants the taxpayer to pay exceedingly more than the law requires.
  3. Niether takes interactions personally. The CPA always tries to do what’s best for the client and the revenue officer is just doing their job.
  4. What each does for a living is contingent on people not doing what they are required to do. The revenue officer realizes he has job security as long as there is a large “tax gap”. As long as the IRS is tough on taxpayers, the more clients the CPA will get.
  5. They both agree that over 99% of accountants and attorneys know very little about IRS collections.

Where they differ is the how they each approach a case. The CPA acquires the information directly from the client, trusting that the client is being straight forward. The IRS officer first looks at the taxpayer’s credit report and finds that in about half of his cases, the taxpayer doesn’t pay his or her bills – ever.

The CPA sees people who have problems that they want to solve. All the people the IRS officer deals with have problems.

If you or your clients have major tax issues, give us a call to see how we can help your client get the good night’s sleep they deserve.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

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The 7 Mistakes Tax Pros make when Dealing with IRS Collections #7

Here is the 7th of 7 most common mistakes CPAs, tax preparers and attorneys make when dealing with IRS Collections:

Mistake #7:

Do you know the difference between an IRS revenue agent & an officer?Not knowing the difference between revenue agent and revenue officer.

This is what separates real pros from wannabes. A Revenue Agent (RA) audits tax returns to determine liability. A Revenue Officer (RO) is a collection agent.
For reasons unknown these RA’s and RO’s do not communicate easily with each other.

So using the wrong title may not only be insulting but it shows you’re not too well-versed in the in the arenas that they work.

Key Tip for #7: Acknowledge the IRS person’s position and title, especially in any written documents. Address them accordingly when appropriate. Respect and courtesy goes a long way to effective communication with RA’s and RO’s who rarely get either.

In closing, please don’t make these mistakes when dealing with the IRS. If you find yourself in a situation and are not sure what to do, give me a call. You have enough going on and you don’t need a disgruntled client and an aggressive revenue agent or revenue officer on your back.

If you or your clients have major tax issues, give us a call to see how we can help your client get the good night’s sleep they deserve.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

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The 7 Mistakes Tax Pros make when Dealing with IRS Collections #6

Here is the 6th of 7 most common mistakes CPAs, tax preparers and attorneys make dealing with IRS Collections:

Mistake #6:

Tolling of the collection statute of limitations in certain situations.

Imagine this situation:

Are your payments to the IRS past due? Taxpayer owes $100,000 in 1040 taxes from 2002 and has managed to fly under the IRS radar. One day he goes to his mailbox and sees that the final notice of intent to levy.

He comes to you and you say, “no sweat, we will request the CDP appeal and stop the IRS dead in their tracks”.

Here’s the problem: The IRS has 10 years to collect the tax which would expire April 15, 2013 under normal filing circumstances. Except that by filing the CDP, the clock is no longer ticking and you are extending the statute of limitations for collection.

There are other tolling events such as:

  • Offer in Compromise request
  • Installment agreement request
  • Request for taxpayer assistance order

The solution is to always review the current transcript and determine when the collection statute will expire and then decide on the appropriate course of action.

Key Tip: Confirm your statute expiration deadline date with IRS.

If you or your clients have major tax issues, give us a call to see how we can help your client get the good night’s sleep they deserve.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

7204 N 16th St. #110
Phoenix, AZ 85020
(602) 445-6908

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The 7 Mistakes Tax Pros make when Dealing with IRS Collections #5

Here is the 5th of 7 most common mistakes CPAs, tax preparers and attorneys make when Dealing with IRS Collections:

Mistake #5:

Keeping proper documentation is keyLack of written documentation on your part. Be assured the IRS will document any verbal and/or written communications with you. To avoid this working against you, document in writing your return call as well as any other conversations and written communications with the IRS. Such can be entered directly into your time and billing program or stored electronically.

Additionally, timely mail via USPS, certified return receipt, the discussion points back to the IRS representative. This also gives you another opportunity to state what resolution you are looking to obtain.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

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The 7 Mistakes Tax Pros make when Dealing with IRS Collections #4

Here is the 4th of 7 most common mistakes CPAs, tax preparers and attorneys make when Dealing with IRS Collections:

Mistake #4:

Are you worried over IRS debt?Failing to appropriately respond in a timely manner to the final notice of intent to levy. This may sound similar to mistake #3 but this warning has some serious teeth:

The final notice of intent to Levy notice (1058 letter) is the IRS final step before the Levy. This letter gives a taxpayer 30 days to pay the tax or request a collection due-process hearing. The collection due process hearing gives you the opportunity to discuss alternatives with appeals officer. A timely request prevents enforced collection until the hearing is held.

Key Tip: The IRS often tries to get you to withdraw your hearing request. Warning, do not give up your clients appeal rights until you have a settlement.

The IRS rep can hold the appeal request to give you more time to resolve this case yet keep the clients rights in place with the appeal request.

If you or your clients have major tax issues, give us a call to see how we can help your client get the good night’s sleep they deserve.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

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The 7 Common Mistakes Tax Pros make when Dealing with IRS Collections #3

Here is the 3rd of 7 most common mistakes CPAs,tax preparers and attorneys make when dealing with IRS Collections:

Mistake #3:

Ignoring IRS phone calls:

  • Most likely it’s a call from a revenue officer/agent looking for information like:
  • Tax returns not filed
  • A collection information statement
  • Response to you

Nothing good happens by not returning their phone calls in a timely manner. Some examples are:

  • IRS can file liens
  • IRS can initiate a levy action
  • IRS can bypass your power of attorney.

Certified Mail Form USPSCure for mistake #3:

Clear and timely communication back to IRS is your best defense against additional IRS surprise enforced collection issues.

What if you are having difficulty with your IRS representative contacting you back?

Key Tip: Use USPS certified return receipt (CRR) to the agent AND their manager. CRR is somewhat old fashioned, yet effective, as you have protected your client with written evidence. Usually it only takes one CRR to the agent and the manager to get immediate and ongoing future timely actions from the IRS representative.

If you or your clients have major tax issues, give us a call to see how we can help your client get the good night’s sleep they deserve.

IRS Remedy

The go-to guys in Phoenix for IRS Tax Problem Resolution!
Edward M. Osinski, Jr., CPA, PC
Two Phoenix locations to serve you:

717 W. Dunlap Ave., Suite #110,
Phoenix, AZ 85021
Local (602) 944-5458
Toll Free 1 (888) 275-2272

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