Tax Relief Blog

First and foremost, you must respond to any IRS Notice.

If you receive a letter or notice from the IRS, it will explain the reason for the correspondence and provide specific instructions. Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office.

The notice you receive covers a very specific issue about your account or tax return. Generally, the IRS will send a notice if it believes you owe additional tax, are due a larger refund, if there is a question about your tax return or a need for additional information.

The following is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please contact us for more information about any of these tax relief developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable.

Standard mileage rates increase for last half of 2011. The IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) is increased 4.5¢ from 51¢ to 55.5¢ per mile for business travel from July 1, 2011 to Dec. 31, 2011 to better reflect the real cost of operating an auto in this period of rapidly rising gas prices. This rate can also be used by employers to reimburse tax-free under an accountable plan employees who supply their own autos for business use, and to value personal use of certain low-cost employer-provided vehicles. The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense also increases 4.5¢ for the last half of 2011 from 19¢ to 23.5¢ per mile.

IR-2011-73, July 11, 2011

The Internal Revenue Service today encouraged taxpayers to guard against being misled by unscrupulous individuals trying to persuade them to file false claims for tax credits or rebates.

The IRS has noted an increase in tax-return-related scams, frequently involving unsuspecting taxpayers who normally do not have a filing requirement in the first place. These taxpayers are led to believe they should file a return with the IRS for tax credits, refunds or rebates for which they are not really entitled. Many of these recent scams have been targeted in the South and Midwest.

We provide IRS tax help, tax relief, tax resolution and IRS audit representation in the Inland Empire area of Riverside County, Cathedral city, Corona, Hemet, Indio, Jurupa Valley, Menifee, Moreno Valley, Murrieta, Palm Springs, Riverside, Temecula. We also serve clients in San Bernardino County, Apple Valley, Chino, Chino Hills, Colton, Fontana, Hesperia, Highland, Ontario, Rancho Cucamonga, Redlands, Rialto, San Bernardino, Upland, Victorville and Yucaipa.

The IRS has identified many individual and business taxpayers who fail to file income tax returns (1040 for individuals and 1120 for corporations) and employment tax returns (940 and 941) and effectively stop paying federal taxes as a serious concern to the US tax administration and the American economy as a whole. The IRS is actively pursuing non-filers owing back taxes with aggressive enforcement of the tax laws by issuing record numbers of tax levies and tax liens.