Martin Cantu, EA - Tax Consultant - Tax Relief Services Blog

  Fairly soon taxpayers will begin receiving IRS collection notices after several years of hiatus during the COVID outbreak. For more information of this development check out this link.      This will trigger the flood of national Offer-in-Compromise mills to put out their “settle your tax debt for pennies on the dollar” and “The IRS writes off millions of tax debt each year”. Both true statements but read the fine print. You must qualify. Ahh, and therein lies the rub. How do I qualify and keep my country club membership, my Tesla lease and shopping at Whole Foods? The short answer is you can’t. Pro Tip - For more information on What is an Offer in Compromise, check out my web page on this subject.   But what about those taxpayers in the middle – who have legitimate, OIC worthy tax situations? How do they communicate that to the OIC processor? Enter the tax artist.   Form 433A is a complete, in your face, disclosure of your entire financial situation. The IRS will evaluate y

  Tax season is upon us once again, and for many, it can be a daunting and confusing time. Between gathering documents, understanding deductions, and ensuring accuracy, the process can feel overwhelming. But fear not! This guide will help you navigate the maze of tax preparation and filing with confidence.   Step 1 - Gathering Your Documents:   The first step to successful tax preparation is gathering all necessary documents. This includes:   W-2 forms: These forms report your wages and salaries earned from employers. 1099 forms: These forms report income received from non-employee sources, such as self-employment, freelance work, or investments. 1098 forms: These forms report mortgage interest paid. 1095 forms:   These forms report health insurance information. Receipts and documentation: Keep track of any receipts or documentation for deductions and credits, such as charitable donations, medical expenses, or business expenses. Bank Statements – For you entrepren

  Tax season is right around the corner, but the complexities and controversies surrounding the US income tax system remain a constant source of discussion. From concerns about fairness and inequality to the challenges of navigating a labyrinthine code, the issues at hand are multifaceted and warrant careful consideration. Tax issues are complex and multifaceted. Ask your AI engine of choice and this is the response you’ll receive to the question – “What are the top income tax issues in the US today?”.   Here are some of the more popular responses: The Fairness Debate : One of the most prominent issues revolves around the perceived unfairness of the current system. Critics argue that the tax code favors the wealthy, with lower effective rates for high-income earners due to loopholes and deductions. This disparity raises concerns about the system's ability to ensure equitable contributions from all citizens. Specifically, the treatment of capital gains and dividends has sp

  What to Expect During Your IRS Appointment: A Step-by-Step Guide Dealing with the Internal Revenue Service (IRS) can be an intimidating experience for many people, especially if it's your first time. Whether you're facing an audit or simply need to resolve a tax issue, it's natural to feel nervous and unsure about what to expect. Fortunately, with a bit of preparation and a clear understanding of the process, you can approach your IRS appointment with confidence. In this step-by-step guide, we'll walk you through what to expect during your IRS appointment, from the initial scheduling to the final resolution of your tax issue. We'll cover everything from what documents to bring with you to how to handle difficult questions from the IRS agent. So if you're feeling anxious about your upcoming IRS appointment, take a deep breath and read on – we've got you covered. Types of IRS appointments The IRS offers different types of appointments depending on the

  How to Expedite Your IRS Amended Return and Get Your Refund Faster Have you recently discovered an error on your tax return that could potentially affect your refund? Filing an amended return with the IRS can seem like a daunting task, but fear not! With a few simple tips and tricks, you can expedite the process and receive your refund faster than you may have thought possible. In this article, we will guide you through the steps to take to ensure your amended return is processed quickly and efficiently. From gathering the necessary documentation to understanding the IRS processing times, we have you covered. Don't let the thought of filing an amended return stress you out any longer - read on to learn how to expedite the process and get your refund in your hands as soon as possible. Reasons for Amending Your Tax Return There are several reasons you might need to amend your tax return. Here are a few common ones: - You received a corrected W-2 or 1099 after you filed your

  Preface – COVID changed many things for many people – working from home and staffing shortages among them. Now, as employers are living in a post-COVID world, things are getting back to normal. Workers are returning to their offices and staffing levels are back at normal levels.  This also holds true for the IRS. Their staffing levels are back at pre-COVID numbers, and they are finished processing the incredible back-log of returns they’ve had for the last couple of years. This means that Collection letters are back, as well as stepped-up compliance enforcement levels.  Be proactive and contact me today to get in front of your IRS issues.  As the old adage goes, there are only two things certain in life: death and taxes. For many taxpayers, however, the latter can be a source of significant stress and anxiety. This is particularly true for those who find themselves with delinquent tax accounts, facing the prospect of penalties and interest charges that can quickly add up and create

  The Internal Revenue Service (IRS) Fresh Start Program is a program that is designed to help taxpayers who are struggling to pay their taxes. This program provides relief to individuals and businesses who are facing financial hardship and cannot pay their taxes in full. The Fresh Start Program offers various options to taxpayers, such as installment agreements, penalty abatement, and offers in compromise. Installment agreements are payment plans that allow taxpayers to pay their tax debt in smaller, more manageable amounts. Under this program, taxpayers can make monthly payments to the IRS until their tax debt is paid in full. The IRS offers different types of installment agreements, including guaranteed, streamlined, and regular installment agreements. Guaranteed installment agreements are available to taxpayers who owe $10,000 or less in taxes and have filed all of their tax returns. Streamlined installment agreements are available to taxpayers who owe $50,000 or less in taxes and

  OFFER IN COMPROMISE: THE PROCESS FOR MAKING AN OFFER   “… (the IRS) OIC program that is itself full of compromises, as the needs of the tax system as a whole are balanced against the needs of the individual taxpayers.” Professor Bryan Camp, Lessons From the Tax Court: The Concept of Reasonable Collection Potential, August 16, 2021.       General Overview Prior to getting too far into the weeds here, you as the taxpayer should keep in mind that an Offer in Compromise is not the only way to resolve your tax debt. An Enrolled Agent, taking all the factors into account, can assist you with alternatives. Going through the OIC, even if the offer is not accepted, can identify other potential avenues for resolution. An Enrolled Agent specializes in this role. The process of submitting an Offer in Compromise (OIC) to the IRS can be complex and time-consuming. Here is a general overview of the process: ·          Gather required documentation : Before submitting your OIC, you

An IRS Offer in Compromise is a great tool available to some taxpayers, allowing them to pay the IRS back less than the full amount they owe. Sounds great.   You heard the commercials on the radio and on TV - XXX National Tax Relief Firm can reduce your taxes! Call now and take advantage of the IRS Fresh Star Initiative! (Author's note here - I probable hear more commercials for IRS tax relief on my satellite radio since I specialize in IRS Offers in Compromise and Audit Representation and many of my internet searches is on these tax related topics. I now fully appreciate the phrase "app would like to share your information to make your experience more enjoyable").   The Fresh Start Initiative is approaching middle age and the IRS financial standards are just not keeping up with our current national financial situation, or even that here in the Austin/Round Rock area where rents are up, and home prices are falling.   By way of background, please visit my deepe