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

In a truly Alice in Wonderland moment, the Unites States #TaxCourt issued an order in which the Court says that #IRS guidance "is not binding precedent and that taxpayers rely on same at their own peril." What? Okay, maybe the #TaxCourt meant that you can't rely on something a clerk tells you on the phone or at your local #IRS office. Maybe the #IRS representative was not authorized to issue the guidance, or perhaps they misconstrued the #TaxCode - you might understand how that could happen.  Not the case. The #TaxCourt Order in  Bobrow, Docket No. 7022-11 , dated ironically enough April 15, 2014, warns taxpayers that they can't rely on #IRS guidance. Looking deeper into the case, the advice was actually contained in an IRS publication, Number 590 to be precise. The #TaxCourt stated that reliance on Publication 590 "would not have served as substantial authority for the position taken on their tax returns." The American College of Tax Counse...

The #IRS recently announced two scams that will impact taxpayers and the manner in which they deal with the #IRS. The newest approach involves scammers phoning taxpayers using fake names and IRS badge numbers - brazen acts to further intimidate unsuspecting taxpayers into providing the scammers with sensitive financial data. This method is effective because the #IRS will contact you by phone and the agent will identify himself with name and badge number. Further complicating the situation is that the scammer will threaten the taxpayer with severe consequences if the tax bill is not paid. The scammer may also have stolen an #IRS notice from the taxpayers mailbox, providing the scammer with an amount, a notice number and date, and other valuable information about the taxpayer's actual tax problem. The scammer will make threats, may use rude tones and language, and demand action now. Unfortunately, some agents may use these same tactics, especially when attempting to collect lar...

Here is some information put out by the #IRS on the Affordable Care Act, and your duties under the Act.  The Individual Shared Responsibility Payment – An Overview Starting January 2014, you and your family must either have health insurance coverage throughout the year, qualify for an exemption from coverage, or make a payment when you file your 2014 federal income tax return in 2015. Many people already have qualifying health insurance coverage and do not need to do anything more than maintain that coverage in 2014. Qualifying coverage includes coverage provided by your employer, health insurance you purchase in the Health Insurance Marketplace, most government-sponsored coverage, and coverage you purchase directly from an insurance company. However, qualifying coverage does not include coverage that may provide limited benefits, such as coverage only for vision care or dental care, workers’ compensation, or coverage that only covers a specific disease or condi...

Just when all is lost, the #IRSAppeals section comes to the rescue - sort of. #IRSAppeals is a great tool to use, at the right time and under the right circumstance. It can provide taxpayers with a break to get their house in order and make a good faith attempt to pay off the tax debt, usually via an installment plan. Its not quick fix pill. It takes work to muster the documents needed to support the taxpayer's position and to give the appeals officer the foundation to make the decision you want them to make. I like because is changes the playing field, getting it off one person's desk (collections) and onto another person's desk (appeals). Maybe its a card your don't have to play, or maybe its one you save for an other day. That is where experience plays a big role. As one collection officer told me recently, there are appeals opportunities all through the process. He was right, but the taxpayer has to get involved early to take advantage of those opportunities...

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 ...

So you received the dreaded Notice of Garnishment. What do you do now? The first thing you need to understand is that by the time you received the notice, the garnishment has been acted upon. It will quickly be followed by a notice from your payroll department confirming the garnishment, the amount taken by the IRS and the amount you are left with. The amount taken reflects a mathematical calculation, leaving you a very small amount to get by with through the new payroll period.  Garnishment is the same as a slap in the face - designed to get your attention. It is the ultimate call to action.  Candidly, by the time I get involved its usually too late to get the amount taken released by the IRS. The analogy I use is that the "toothpaste is out of the tube".  At this point your goal is to establish a line of communication with the IRS. Then, you can work to  stop the garnishment by setting up a payment agreement, providing financial agreement, or somet...