Preferred Tax Relief: Selecting the Perfect Tax Professionals

With the many Preferred Tax Relief Clients’ experiences, I was able to outline tips when choosing the best tax professional that will aid you in obtaining your tax goals and needs. It has been known to all that the IRS is the only government agency that almost anyone in the country would not want to deal their problems with. Al Capone was even held down by his tax problems. There are individuals and even companies that are taking advantage of people’s fear of the agency by posing as tax professionals. Preffered Tax Help

These fake tax professionals start off by offering people of tax help services at very low prices. Preferred Tax Relief clients have always known that if somebody offers them something that is too good to be true, they should avoid such person like plague. Reason behind why these fake tax professionals charge you low for their services is because they really do not have any intention of helping you out with your tax relief application but talking your money alone. For example, they would just submit your Offer in Compromise paperwork without really bothering to check if what you are doing is the right thing. Sad to say that IRS mostly  disapproves Offers in Compromise cases due to incomplete and not properly planned paperworks. Tax Advice

Offer in Compromise is not the only tax relief program that is provided for by law. You are dealing with an incompetent person if this tax professional keeps on offering this program to you even if it really does not make sense in your case. In depth-advice about various programs and possible solutions are offered at Preferred Tax Relief whatever your tax problem be. With thousands of US citizens having different tax problems,it is impossible for them to apply for just one tax relief program.

Finally, always screen the reputation of the tax advice company in your shortlist. Recommendations and referrals from your friends, family members and colleagues still are best. With Preferred Tax Relief, you will be experiencing the same benefits of approved tax reliefs like the other tax relief clients. Preferred Tax Relief

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National Taxpayer Advocate Submits Mid-Year Report to Congress

National Taxpayer Advocate Nina E. Olson today delivered a report to Congress that identifies the priority issues the Office of the Taxpayer Advocate will address in the coming fiscal year.  Among the key areas of focus will be working with the IRS to improve taxpayer services, enhancing IRS oversight of federal tax return preparers, improving the accessibility of the offer in compromise program, and working with the IRS to improve its ability to administer refundable tax credits effectively.

The report notes that FY 2010 will mark the ten-year anniversary of the Taxpayer Advocate Service, which began operations in March of 2000.  “As TAS enters its tenth year, both TAS and the IRS face a difficult environment for achieving what is, in essence, the same mission – ensuring that the IRS treats taxpayers fairly and identifying ways to increase voluntary compliance while addressing noncompliance,” Olson said.  She identified the collection of tax revenue at a time when “increasing numbers of taxpayers have difficulty paying their daily living expenses” as a principal challenge.

The Advocate’s report, which is required by law, sets out the objectives of the Office of the Taxpayer Advocate for the upcoming fiscal year and provides substantive analysis of issues and statistical information.  Among the areas the report identifies for particular emphasis in FY 2010 are the following:

1.  Taxpayer Services.  The report notes that the IRS created a five-year strategic plan for taxpayer service (known as the Taxpayer Assistance Blueprint, or “TAB”) in response to a directive from the House and Senate Appropriations Committees in FY 2006.  The directive was originally motivated by concern that IRS taxpayer services were often ad hoc and not sufficiently coordinated or research-driven.  The Advocate’s report expresses concern that the momentum to implement and refine the TAB recommendations has abated.  It recommends that the IRS reinvigorate its efforts to pursue cross-functional, research-driven service improvements.

The report also expresses concern about the impact on taxpayers of the IRS’s sharp decline in telephone service.  The “Level of Service” on IRS toll-free assistor lines (which reflects the percentage of taxpayers who speak with a telephone assister among all callers seeking to do so), peaked at 87 percent in FY 2004 and remained at a relatively high level of 82 percent as recently as FY 2007.  But it plummeted to 53 percent in FY 2008, and the IRS has now reduced its target goal for FY 2010 to 71.2 percent.  While the IRS fairly attributes much of the decline in service last year to a sharp increase in calls about Economic Stimulus Payments, Olson said, “that is small comfort to taxpayers who need assistance and it does not bode well for taxpayer compliance.”  TAS will continue to examine taxpayer service issues in the coming year.

2.  Oversight of Tax Return Preparers.  Tax return preparers complete about 62 percent of all individual income tax returns and therefore play a critical role in facilitating tax compliance.  However, “shopping visits” conducted by the Government Accountability Office, the Treasury Inspector General for Tax Administration, and others suggest that a high percentage of preparers prepare inaccurate returns, fail to perform sufficient due diligence, and even take positions that they know are not supportable.  This conduct usually results in understatements of tax (reducing federal tax revenue and potentially subjecting taxpayers to enforcement actions) and sometimes results in overstatements of tax (causing taxpayers to pay more than they owe).

The Advocate reiterates her longstanding recommendation that the government do more to protect taxpayers by regulating unenrolled federal tax return preparers, including by requiring initial testing and continuing professional education, and recommends that the IRS step up enforcement actions against preparers who fail to perform due diligence or consciously facilitate noncompliance.  She further recommends that the IRS require preparers to use a unique Preparer Tax Identification Number (PTIN) on all returns.  The use of PTINs would provide data concerning the number of return preparers, shield the Social Security numbers of return preparers from identity theft, and make it easier for the IRS to identify return preparers who submit unreasonably high numbers of inaccurate returns.  TAS looks forward to working with the IRS on an initiative it announced earlier this month to develop a revised return preparer strategy by year-end.

3.  Offers in Compromise.  For the past nine years, the Advocate has expressed concern about the effectiveness of the IRS’s offer in compromise (OIC) program, a program designed to enable financially struggling taxpayers to pay what they can afford and make a fresh start.  The Advocate believes the IRS requires taxpayers to provide too much information with the initial application, thereby deterring taxpayers who legitimately qualify for the program from applying for it.  IRS data show that the number of accepted offers has declined by 72 percent over the past seven years, from 38,643 in FY 2001 to 10,677 in FY 2008.

In response to these concerns, the IRS recently announced the formation of an OIC Project Team, which includes TAS representation.  As part of this project, the IRS has retained two contractors to take a closer look at the characteristics of applicants who submit acceptable offers and to increase the number of qualifying applicants within the existing process.  During the coming year, TAS will continue to devote priority attention to improving the accessibility of the offer program for appropriate taxpayers.

4.  Refundable Tax Credits.  The American Recovery and Reinvestment Act of 2009 temporarily increased the refundable portions of the Earned Income Tax Credit (EITC) and the child tax credit and authorized several new refundable credits, including the “Making Work Pay” credit, the “American Opportunity” education tax credit (40 percent is refundable), the first-time home buyer credit (up to $8,000), and a credit for certain federal and state pensioners.   While the decision to expand refundable credits is entirely reasonable from a policy standpoint, refundable credits present significant administrative challenges for the IRS.

For example, the report notes that refundable credits may present an increased risk of fraud and that the IRS therefore will need to balance fraud prevention with the timely delivery of refunds.  “Refundable credits require the IRS to perform a delicate balancing act,” Olson said.  “On the one hand, if the IRS does not do enough to detect and prevent fraud, it may pay out billions of dollars as a result of false and fraudulent claims.  On the other hand, if the IRS clamps down too tightly, hundreds of thousands and potentially millions of predominantly low income taxpayers will not receive timely refunds.”

During FY 2010, TAS intends to study this and other issues the IRS will have to address in order to administer refundable tax credits effectively and without undermining its ability to perform its core tax-collection function.

*    *    *    *    *    *    *

The National Taxpayer Advocate is required by statute to submit two annual reports to the House Committee on Ways and Means and the Senate Committee on Finance.  The statute requires these reports to be submitted directly to the Committees without any prior review or comment from the Commissioner of Internal Revenue, the Secretary of the Treasury, the IRS Oversight Board, any other officer or employee of the Department of the Treasury, or the Office of Management and Budget.  The first report is submitted mid-year and must identify the objectives of the Office of the Taxpayer Advocate for the fiscal year beginning in that calendar year.  The second report, due on December 31 of each year, must identify at least 20 of the most serious problems encountered by taxpayers, discuss the 10 tax issues most frequently litigated in the courts, and make administrative and legislative recommendations to resolve taxpayer problems.

About the Taxpayer Advocate Service:

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.  If you believe you are eligible for TAS assistance, you can reach TAS by calling the TAS toll-free case intake line at 1–877–777–4778 or TTY/TDD 1-800-829-4059.  For more information, go to www.irs.gov/advocate.

Related Items:

National Taxpayer Advocate’s FY 2010 Objectives Report to Congress

More TAS News and Information: http://www.taspresskit.irs.gov

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Compromising With The IRS

Few things threaten your well-being like the harassment and anxiety of persistent tax problems. Most people make 3 mistakes that get them in trouble with the IRS. They procrastinate. They attempt to represent themselves. They hire sub-par representation and now are in MORE need of help than ever before.

These are the kind of services a Tax Attorney can provide: Offer in Compromise Cases, Penalty Abatement Petitions, Full Audit Representations Business Strategy Sessions. Preparation and Filing of Tax Returns.

Settle taxes for Pennies on the Dollar owed, Stop IRS wage and bank levies (garnishments), Have property liens lifted, get affordable installment agreements, File bankruptcy against the IRS, Have penalties and interest forgiven, Reduce taxes by running out the IRS’ time to collect.

Offer in Compromise: Settle your taxes for Pennies on the Dollar owed Professional law offices can help get you a favorable settlement with an experienced IRS tax attorney. The IRS’ Offer in Compromise program allows taxpayers to settle their tax debt.

What is an IRS offer in compromise?

It settles your tax liability for less than the full amount owed, providing you can prove you don’t have the ability to pay. Depending on how much you can afford, you really can pay “Pennies on the Dollar Owed” in taxes.

If it is done correctly – this option could save you an enormous amount of money, and is the best strategy for most taxpayers. You should take extreme caution. You should hire a professional with knowledge of the IRS’ procedures.

This professional should determine the least amount that the IRS will accept from you. If the Offer is not submitted correctly it will be rejected, or you may be required to pay more than is necessary.

An Offer in Compromise may save you a LARGE amount of money. Do you know that the IRS only has a limited time to collect your back taxes?

Let a Professional Tax Attorney determine when the IRS’ time limit to collect taxes runs out.

In most cases the IRS has only a limited time to collect the unpaid taxes. You must CAREFULLY evaluate exactly when that time period will run out.

Your troubles may be solved. and moreover: If the IRS’ time has run out, or if it will run out soon, your troubles may be over.

Delaying tactics may be used to stall the IRS while their time runs out. Once the IRS is out of time, they MUST stop ALL collection action against you.

The IRS MUST release all property liens

TAX RETURNS – FAILURE TO FILE

Many people fail to file Individual Income Tax Returns for a variety of reasons. Some reasons are innocent, although the most common is the fact that people can’t afford to pay the taxes.

When this happens it becomes difficult to get back into the system. “I filed for 1998. I couldn’t pay for 2000, so I did not file. Then I was afraid to file for 2001. I haven’t filed since then. What can I do now?”

If you do not file Income Tax Returns you commit a criminal offense. However, no one who has voluntarily filed back returns before being caught has ever been criminally prosecuted. That is the first key: filing BEFORE they catch you.

IRS Penalties

Some IRS penalties can be as high as 100% to 150% of the original taxes owed. Even if you could pay the taxes owed, the extra penalties will make it impossible to pay off the entire balance.

The IRS imposes penalties to punish taxpayers and keep them in line. The IRS does forgive penalties. Before you pay the IRS any penalty amounts, you may want to consider requesting the IRS to not punish you because it wasn’t your fault.

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IRS Suspends Tax Practitioner for Failing To Provide Service Related to Offers in Compromise

04-17-2009

IRS Suspends Tax Practitioner for Failing To Provide Service Related to Offers in Compromise

WASHINGTON — An enrolled agent was suspended from practice before the Internal Revenue Service by the Office of Professional Responsibility on April 6 for not performing services related to offers in compromise (OIC) paid for by taxpayers.

Enrolled Agent Richard Hargus worked in California for two separate, now defunct companies that specialized in tax resolution services, which included submitting OICs to the IRS.

Multiple taxpayers paid the companies for Hargus to resolve their income tax liabilities through the OIC program.  In many instances, the taxpayers either did not receive the services for which they paid or received very little assistance with resolving their tax issues.

An offer in compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.  Absent special circumstances, if a taxpayer has the ability to fully pay the tax liability in a lump sum or through installment agreement payments, an offer in compromise generally will not be accepted.

Tax practitioners are subject to the regulations issued under Treasury Department Circular 230.  Specifically Circular 230 provides that a practitioner must exercise due diligence in preparing or assisting in the preparation of, approving, and filing of tax returns, documents, affidavits, and other papers relating to Internal Revenue Service matters.

Following an investigation by the IRS, Hargus admitted a lack of due diligence in these taxpayers’ situations.  The IRS suspended Hargus from practice for a period of time lasting at least 18 months.

The IRS is taking a closer look at tax resolution companies, and is also litigating known OIC abuses to ensure that tax professionals fulfill their legal and ethical obligations to their clients in dealing with IRS tax matters.

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Five Tips to Avoid Tax Time Stress

03-13-2009

Five Tips to Avoid Tax Time Stress

Are you looking for ways to avoid the last-minute rush for doing your taxes? Here are some stress-relieving tips to help you.

1. Don’t Procrastinate – Resist the temptation to put off your taxes until the very last minute. Your haste to meet the filing deadline may cause you to overlook potential sources of tax savings and will likely increase your risk of making an error.
2. Visit the IRS Online – In 2008, there were more than 330 million visits to IRS.gov. Anyone with Internet access can find tax law information and answers to frequently asked tax questions.
3. File Your Return Electronically – Nearly 90 million taxpayers filed their returns electronically in 2008. Aside from ease of filing, IRS e-file is the fastest and most accurate way to file a tax return. If you’re due a refund, the waiting time for e-filers is half that of paper filers.
4. Don’t Panic if You Can’t Pay – If you cannot pay the full amount of taxes you owe by the April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. You also should contact the IRS to discuss your payment options at 1-800-829-1040. The agency may be able to provide some relief such as a short-term extension to pay, an installment agreement or an offer in compromise. More than 75 percent of taxpayers eligible for an Installment Agreement can apply using the Web-based Online Payment Agreement application available on IRS.gov.  To find out more about this simple and convenient process type “Online Payment Agreement” in the search box on the IRS.gov homepage.
5. Request an Extension of Time to File – But Pay on Time If the clock runs out, you can get an automatic six month extension of time to file to October 15. However, this extension of time to file does not give you more time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late payment penalty if you have not paid at least 90 percent of your total tax by that date. See IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return for a variety of easy ways to apply for an extension. Form 4868 is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).  Taxpayers needing Form 4868 should act soon to be sure they have the item in time to meet the April deadline.

Links:

• Official Payments Corporation
• Link2Gov Corporation
• Electronic filing
• Free File
• Electronic payment options
• Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return (PDF)

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