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

  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: ·          ...

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...

The IRS recommends these three steps: 1. Contact the employer first.  Make sure your employer has your correct address. 2. After February 14, you may call the IRS at 800-829-1040 if you have not yet received your W-2. Be prepared to provide your name, address, Social Security number and phone number. Also have the following information when you call: • Your employer’s name, address and phone number; • Your employment dates; and • An estimate of your wages and federal income tax withheld in 2012, based upon your final pay stub or leave-and-earnings statement, if available. 3. File your return on time. You should still file your tax return on or before April 15, 2013, even if you have not yet received your W-2. File Form 4852, Substitute for Form W-2, Wage and Tax Statement, in place of the W-2.  If you need more time to file you can get a six-month extension of time. File Form 4868, Application for Automatic Extension of Time to File US Individu...

We call it IRS Tax Relief . Others call it IRS Tax Resolution. Large law firms call it Tax Controversy. In any case, you're looking for help. No matter the label, the problem is still the same. You owe money to the IRS and you haven't made any arrangement to pay that debt. Each individual situation may be a little different, with some more urgent than others, but the facts are basically the same. As you conduct your search, be aware of a couple of things: 1. I've yet to see a taxpayer satisfied with the performance of a national tax service. Plain and simple, they're just marketing machines interested in taking your money instead of providing you service. 2. IRS Tax Relief, IRS Tax Resolution and Tax Controversy are specialized areas of the law. Retain someone who provides these services on a routine basis. The IRS has a very specific set of rules. You can accomplish a lot by knowing the rules, and you'll flounder if you don't. 3. IRS Tax Relief is not...