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

In this gig economy, many of us receive 1099s documenting the amount of income earned from that gig. The #IRS uses 1099s as a tracking mechanism. Just as an employer documents wages earned by an employee via a w-2, the #IRS uses 1099s to insure that individuals and companies reported all income earned. Its a compliance tool.  So what to do if the 1099 contains an incorrect amount? A bit of background first. The #IRS compares what income and expenses items that are subject to reporting requirements  against what you report on your tax return. Any difference results in a friendly letter from the #IRS with a bill. Occasionally omission results in an #IRSAudit.  Knowing this, your first attempt should be to contact the payer and attempt to get a substitute 1099. Keep a record of your request, and keep a record of how you calculated the correct amount.  Be sure to ask them to file the correction with #IRS.  If the payer fails to correct the amount you'll...

Here are a couple of things not to do when confronted with an IRS issue: 1. Ignore all those certified letters . Certified letters are the IRS' way of slapping you in the face to get your attention. Continue to ignore those letters and you're sure to anger the IRS. If your looking for a levy or garnishment, then you're headed in the right direction.  2. My accountant/lawyer/spouse/ etc  is responsible for filing my returns . Responsibility for filing returns rests squarely on you - not your spouse, not you accountant, not your lawyer or anyone else. Blame has no role in solving your tax issue.  3. The IRS owes me money, so I won't file . Great strategy, until you realize that the limitations period will run and you will lose that refund. And you know the movie script here - you have several years of taxes due that could be wiped out by a refund you did not claim 6 years ago. Just like any 70's disaster movie you lose. You lose the refund and you owe th...

So why, Austin residents, should you worry about #unfiledtaxreturns? You've gotten by this long, so why worry? Lets run through the reasons: 1. A good nights sleep - believe it or not, so many clients tell me that they have not a good sleep as the years pass and they continue not to file returns. 2. The #IRS will address your situation - the difficult thing with the #IRS is to figure out their timeline. Sometimes its 5 years; sometimes 3; sometimes 8; either way they will catch up to you, on their schedule. 3. When they do, it will impact you like a stranger walking up to you on the street and slapping you on the face, hard - When they do catch up to you, the IRS will get your attention. #WageGarnishment is clearly the worst of the actions. It will get your attention - fast. #TaxParalysis prevents many Austin residents from getting past this issue. Call us today for a free phone consult about your situation, and what we can do to help you avoid the #IRS slap. Call Austi...

Lots of news this week about the #IRS' lean resources and what that means to customer service. Yes wait times are high - higher than most any other customer service business. Yes, their computer systems are antiquated leaving each representative to re-verify the same information over and over again. This wastes at least 25% of each phone call, if not more.  I do wish there was one way to verify your power of attorney for a client. I do wish their computer systems were faster. I do wish I could call ahead for a virtual appointment. Maybe we'll get that in the future. But I have to praise the telephone work of the IRS representatives I speak to from across the country. I find them to be helpful, understanding, and cheerful. This does not mean our conversations are "love-fests", but you have to a willingness to cooperate on both sides to reach an agreement. As an advocate for my clients, this is essential to moving their case on to resolution so they can get on ...

We're back in Austin after a 4 year hiatus! We opened our office at 7000 n. Mopac at Far West. We strive to help taxpayers dig out of their IRS tax problems - one step at a time. Please visit our new Austin website - www.austin-tax-help.com . Time after time we hear from clients about the sense of relief we provide. From our expert advice about how to stop the IRS train to our fixed fee and installment fee agreement - let us show you the difference we can make. Our main office remains in San Antonio where will continue to help San Antonians and south Texas with a higher quality of service. #Austin-Tax-Help #SATaxHelp