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

  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...

  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 ...

  If you're an independent consultant, you know how important it is to keep your tax obligations and deductions in order. Navigating the complex world of taxes can be overwhelming, but fortunately, there are steps you can take to minimize your tax liability and maximize your earnings.   Our comprehensive guide " Mastering Consultant Tax" is designed to help you do just that. In this guide, we cover everything you need to know to stay compliant with IRS regulations while minimizing your tax burden. Here are some of the highlights:   Defining Independent Consultants   We begin by defining what we mean by independent consultants. We explain the difference between independent contractors and employees, and discuss the IRS standards for determining which category you fall into.   Tax Obligations   We then dive into your tax obligations as an independent consultant. We explain the different types of taxes you may be responsible for, includi...

  If you're struggling with IRS debt, it can feel overwhelming and stressful. However, there are options available to help you resolve your tax debt and move forward with your financial future. One of these options is an IRS offer, which comes in five different types. Learn more about these offers and how they can help you get back on track.   Offer in Compromise. An Offer in Compromise (OIC) is one of the most well-known types of IRS offers. It allows taxpayers to settle their tax debt for less than the full amount owed. To qualify for an OIC, taxpayers must demonstrate that they are unable to pay their full tax debt, either through a lump sum payment or through a payment plan. The IRS will consider factors such as income, expenses, and asset equity when evaluating an OIC. It's important to note that not all taxpayers will qualify for an OIC, and it should only be pursued after consulting with a tax professional.   Installment Agreement. An Installment Agreem...

 The Internal Revenue Service (IRS) recently issued a warning to taxpayers to watch out for so-called "Offer in Compromise mills," which are companies or promoters that claim to be able to help taxpayers settle their IRS debts through an Offer in Compromise (OIC) but often engage in unethical and illegal practices. In a news release, the IRS included OIC mills in its annual "Dirty Dozen" list of tax scams, which highlights the most common and dangerous tax-related scams that taxpayers should watch out for. Here's what you need to know about OIC mills and how to protect yourself. What is an Offer in Compromise? An Offer in Compromise is a program offered by the IRS that allows taxpayers to settle their tax debts for less than the full amount owed. To qualify for an OIC, the taxpayer must demonstrate that they are unable to pay the full amount of their tax debt, either through a lump sum payment or a payment plan. The IRS will consider the taxpayer's income, ...

  The rise of social media has opened doors for countless individuals to gain popularity, influence, and even financial success. However, with great opportunities come great responsibilities, including paying taxes on the income earned. The recent New York Times article Lora Kelley, " They Went Viral and Made Money. Now They Owe Taxes," sheds light on a growing problem for many social media influencers who are struggling to keep up with their tax obligations.   According to the article, many social media influencers have found themselves in a precarious situation where they have earned significant income from brand partnerships, sponsorships, and ad revenue, but have failed to properly report or pay taxes on that income. Some influencers have even admitted to intentionally avoiding taxes, thinking they were too small for the IRS to notice or that they could get away with it.   However, as the article notes, the IRS is now cracking down on influencers who are not ...

 Chapter 5 How to appeal the IRS when your offer in Compromise is Rejected.   Take One Last Chance at the Offer Specialist Level   Don't Fall For the Misleading Commercials! Lately I’ve seen a commercial on various social media outlets touting IRS Debt Relief, The Fresh Start Initiative and an Offer in Compromise. The commercial illustrates a taxpayer settling a large tax debt for $100. For the record, the only way to accomplish this is to be out of a job, with not job prospects, and living on the edge of homelessness – it’s all a fiction and does a real disservice to educate taxpayers as to how this process work. Set reasonable expectations for yourself – if you live in an expensive house, send the kids to private school, have late model cars, season tickets to local sports team and vacation two or three times a year – it isn’t going to happen for you.   An IRS Settlement Officer (SO) is a trained professional who is responsible for evaluating and negoti...