Tax Relief Blog

Unpaid back taxes can attract serious penalty from the IRS, and getting professional tax help is the best option to resolve this issue. Individual and business taxpayers in San Diego, CA metro area of greater San Diego, Carlsbad, San Marcos and National City with back taxes accumulate when you have not paid your federal or state taxes for a variety of reasons. You may not have been sure of your tax liability or could not afford to pay the tax or simply just did not get around to filing your tax return. Whatever the reason, the IRS is sure to catch up with you soon and enforce their aggressive tax collection techniques.

Businesses and individuals in New York metro such as Manhattan, The Bronx, Brooklyn, Queens, and Staten Island often require professional IRS help to resolve tax related issues. The tax laws, state and or federal tend to be complicated and you rarely have a very good understanding of the laws as they pertain to you or your tax matters. Unfortunately, the IRS has no sympathy for your lack of knowledge and will not accept that as a valid excuse.

What is an IRS Tax Settlement?

An IRS tax settlement is an agreement between you and the IRS regarding what you owe them. It is a negotiation where you pay an amount that is less than you originally owed. The IRS is often willing to take a deal rather than to have to continue to fight to get funds owed to them. This is especially true if it isn't possible for the person or business to pay what is owed.

An IRS tax settlement also involves various penalties, interest, and fines being removed from what is owed. When all of that is added on, it can increase the overall debt dramatically. Many people don't realize that they can offer an IRS tax settlement and get out from under that stressful situation.

While they do prefer to get the full amount of money that is due to them, they are realistic about it. They don't want to be hassling people or businesses for money. They also know that you can't get blood out of a turnip. Don't ignore the IRS when they tell you that you owe them money. Instead, see what you can do through a tax settlement offer.

Want to reduce your unpaid IRS debt with an Offer in Compromise?

Many taxpayers with back taxes contact us on a daily basis to see if qualifying for an offer in compromise settlement can save them thousands of dollars in taxes, penalties and interest. The widely known offer in compromise settlement is an agreement between the taxpayer and the IRS to settle the taxpayer's full tax liabilities for possibly less than the full amount owed. Each taxpayer's, RCP, reasonable collection potential, is different and an offer will not be accepted if the IRS believes that the full unpaid tax liability can be paid in full as a lump sum or through a payment agreement.

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service (IRS) that settles the taxpayer's tax liabilities for less than the full amount owed. Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through an installment agreement.

In most cases, the IRS will not accept an OIC offer in compromise unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer's ability to pay and includes the value that can be realized from the taxpayer's assets, such as real property, automobiles, bank accounts, and other property. The RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.

The IRS may compromise the taxpayer's back tax liability in most civil or criminal cases before referral to the Department of Justice for prosecution or defense. The Attorney General or a delegate may compromise any tax case after the referral. However, the IRS may not compromise certain criminal liabilities arising under internal revenue laws relating to narcotics, opium, or marijuana. Interest and penalties, as well as tax, may be compromised (Code Sec. 7122; Reg. §301.7122-1). IRS Offers-in-compromise are submitted on Form 656 accompanied by a financial statement on Form 433-A for an individual taxpayer or Form 433-B for a business taxpayer (if based on inability to pay) (Reg. §601.203(b)). A taxpayer who faces severe or unusual economic hardship may also apply for an offer-in-compromise by submitting Form 656. If the IRS accepts an offer-in-compromise, the payment is allocated among tax, penalties, and interest as stated in the collateral agreement with the IRS. If no allocation is specified in the agreement and the amounts paid exceed the total tax and penalties owed, the payments will be applied to tax, penalties, and interest, in that order, beginning with the earliest year. If the IRS agrees to an amount that does not exceed the combined tax and penalties, and there is no agreement regarding allocation of the payment, no amount will be allocated to interest.

You recently asked what will happen and what you should do in the event that you cannot pay your taxes on time. First and most importantly, don't let your inability to pay your tax liability in full keep you from filing your tax return properly and on time. It is also important to remember that an extension of time to file your tax return doesn't also extend the time to pay your tax bill. Get tax resolution services at 1-877-788-2937.

Even if you can't make full payment of your liabilities, timely filing your return and making the largest partial payment you can will save you substantial amounts in interest and penalties. Additionally, there are procedures for requesting payment extensions and installment payment arrangements which will keep the IRS from instituting its collection process (liens, property seizures, etc.) against you. Get tax resolution services at 1-877-788-2937.

Overview of the most common penalties. The "failure to file" penalty accrues at the rate of 5% per month or part of a month (to a maximum of 25%, reached after five months) on the amount of tax your return should show you owe. The "failure to pay" penalty is gentler, accruing at the rate of only 0.5% per month or part of a month (to a maximum of 25% reached after fifty months) on the amount actually shown as due on the return. If both apply, the failure to file penalty drops to 4.5% per month, so the total combined penalty remains at 5%--thus, the maximum combined penalty for the first five months is 25%. Thereafter, the failure to pay penalty can continue at 0.5% per month for 45 more months, yielding an additional 22.5%. In total, these combined penalties can reach 47.5% of your unpaid liability in less than five years.

Both of these penalties are in addition to interest you will be charged for your late payment. If you also missed estimated tax payments, an additional penalty is tacked on for the period running from each payment's due date until the tax return due date, normally April 15th. This penalty is computed at 3% above the fluctuating federal short-term interest rate for the period. Get tax resolution services at 1-877-788-2937.

Borrowing money to pay taxes. Given the rate at which the above-mentioned penalties and interest accrues, it might be a good idea to borrow money to pay the taxes. In many situations, the rate of interest that you would pay to a family member, or even to a bank, is less overall than that which you would have to pay the IRS.

Loans from relatives or friends are often the simplest method to pay the bill. One advantage of such loans is that the interest rate will probably be low, but you must also consider that loans over $10,000 at below-market interest rates may trigger tax consequences. When loans from individuals are not available, a loan from a bank or other commercial source could be sought, but such loans are not likely to be made on favorable terms to a hard-pressed taxpayer. Moreover, interest on a loan to pay taxes is nondeductible personal interest. In contrast, if you can take out a home equity loan and use the proceeds to pay off your tax debts, you will probably be paying at a lower rate than with other types of loans, and the interest payments will be deductible even if the loan proceeds aren't used in connection with the house. Get tax resolution services at 1-877-788-2937.

Credit cards. It is relatively quick and easy to use credit cards to pay the income tax bill, whether you file your income tax return by mailing a paper copy or by computer. In addition, three companies (Official Payments Corporation at 888-872-9829, Link2Gov Corporation at 888-729-1040, and RBS WorldPay, Inc. at 888-972-9829) are authorized service providers for purposes of accepting credit card charges from both electronic and paper filers. However, credit card loans are likely to be at relatively high interest rates and the interest is not deductible. Moreover, the service providers typically charge an additional fee based on the amount you are paying.

Installment agreement request. If you cannot or prefer not to take out a loan, you might be able to defer your tax payments by requesting that the IRS enter into an installment payment agreement with you. This request is made on Form 9465 or by applying for a payment agreement online. There are various options for making your monthly installment agreement payments, including the direct debit and payroll deduction methods, both of which are made automatically and thus reduce the risk of default. Get tax resolution services at 1-877-788-2937.

If you file and request a payment agreement online, there are three available payment options: (1) payment in full within 10 days (which saves on interest and penalties); (2) short-term extension of up to 120 days (for which no fee is charged, but additional penalties and interest accrue); or (3) monthly payment plan (which carries an additional user fee, and interest and penalties continue to accrue on the unpaid balance).
You can also request an installment agreement on Form 9465, which can be filed along with either an e-filed or paper return. Form 9465 requires less information than the hardship extension application (described below). If the liability is under $25,000, you will not be required to submit financial statements. Even if your request to pay in installments is granted, you will be charged interest on any tax not paid by its due date. However, the late payment penalty will be half the usual rate (0.25% instead of 0.5%) if you file your return by the due date (including extensions).

The IRS charges a fee for installment agreements, which will be deducted from your first payment after your request is approved. The fee for entering into an installment agreement is regularly $105, but it is reduced to $52 when the taxpayer pays by way of a direct debit from the taxpayer's bank account. Notwithstanding the method of payment, the fee is $43 if the taxpayer is a low-income taxpayer--i.e., an individual who falls at or below 250% of the dollar criteria established by the poverty guidelines updated annually in the Federal Register by the U.S. Department of Health and Human Services. There is a $45 fee to restructure or reinstate an established installment agreement that applies regardless of income levels or method of payment.

Note that an installment agreement request can be made after the expiration of a hardship extension period (described below). Additionally, the IRS has the authority to enter into an installment agreement calling for less than full payment of the tax liability over the term of the agreement. It may do so if it determines such an agreement will facilitate partial collection of the liability.

The installment agreement may terminate, and all your taxes become due immediately, under certain circumstances (for example, if you stop making payments).

The IRS is required to enter into an installment agreement at your request (a "guaranteed installment agreement") if the following apply:
• the tax liability is $10,000 or less (not counting interest and penalties);
• within the prior 5 years you have not (i) failed to file returns or pay taxes, or (ii) entered into a previous installment agreement;
• the IRS determines the tax liability cannot be paid in full;
• the installment agreement provides for full payment within 3 years; and
• you agree to comply with the tax laws during the agreement period.
As a matter of policy, the IRS often grants guaranteed installment agreements even if taxpayers are able to fully pay their accounts.

Undue hardship extensions. You may also qualify for an extension of time to pay if you can show that payment would cause "undue hardship." Form 1127 is used to apply for an undue hardship extension, and you must attach a statement of assets and liabilities as well as an itemized list of receipts and disbursements for the 3 months preceding the tax due date. Get tax resolution services at 1-877-788-2937.

If you qualify for an undue hardship extension, you will be given an extra six months to pay the tax shown as due on your tax return. You will avoid the failure to pay penalty, but you will still be charged interest. If the IRS determines a "deficiency," i.e., that you owe taxes in excess of the amount shown on your return, the undue hardship extension can be as long as 18 months and, in exceptional cases, another 12 months can be tacked on. However, no extension will be granted if the deficiency was the result of negligence, intentional disregard of the tax rules, or fraud.

To establish undue hardship, it is not enough to show that it would just be inconvenient to pay your tax when due. For example, if you would have to sell property at a "sacrifice" price, you may qualify for an undue hardship extension. However, if a market exists, having to sell property at the current market price is not viewed as resulting in an undue hardship.

To qualify for an extension, you would have to: (i) show that you do not have enough cash and assets convertible into cash in excess of current working capital to meet your tax obligations; (ii) show you cannot borrow the amount needed except on terms that would inflict serious loss and hardship; and (iii) provide security for the tax debt. The determination of the kind of security--such as a bond, filing a notice of lien, mortgage, pledge, deed of trust, personal surety, or other form of security--will depend on the particular circumstances involved. However, no collateral is required if you have no assets.

Offer-in-compromise. Another potential way to deal with unpaid taxes is by using an offer in compromise, which is a technique that may allow you to settle your tax debt for a fraction of its face value. This option is available only if you have already filed your return but are unable to pay your taxes--in other words, it can't be requested prospectively. Get tax resolution services at 1-877-788-2937.

Like any creditor, the IRS prefers a partial payment to no payment at all. Thus, the IRS might be willing to settle your liability for less than the full amount if: (a) you aren't able to pay the full amount, (b) there is doubt as to how much the tax liability is, (c) collection of the liability would create economic hardship for you (for instance, if you are out of work due to health problems, or if sale of your assets to pay the tax would leave you without enough money to meet basic living expenses), or (d) compelling public policy or equity considerations exist, and due to the exceptional circumstances (such as a medical condition that prevents proper management of financial affairs, or reliance on erroneous advice from the IRS), the IRS's collection of the full liability would undermine public confidence in the fair and equitable administration of tax laws. Learn more about Tax Relief Options HERE.

The process is started by actually making an offer-in-compromise. If the offer is based on any reason other than doubt as to how much the tax liability is, you must submit your financial information along with the offer. If it is grounded on doubt as to the liability, the IRS is not permitted to request a financial statement. Partial payments must be made to the IRS while a periodic payment offer is being considered. For lump-sum offers, or offers involving five or fewer installments, a 20% down payment (of the total offer amount) must be made with the application.

In order to obtain an offer-in-compromise based on any of the above-mentioned grounds except doubt as to liability, you must agree to comply with all tax law rules on filing returns and paying taxes for the longer of five years or until the offered amount is paid. If you don't comply with these rules, the compromise will terminate and the IRS can seek collection of the original liability amount.

Innocent spouse relief. If you are unable to pay liabilities that are attributable to your spouse, it might be worth exploring whether you are eligible for relief under the "innocent spouse" provisions. Under limited circumstances, a taxpayer can be relieved from liabilities shown on a joint return filed with a spouse. In general, relief is potentially available for: erroneous items attributable to the other spouse of which you had no knowledge or reason to know; the separate liabilities of a spouse to whom you are no longer married or with whom you no longer reside (including deceased spouses); and liabilities for which it would otherwise be inequitable to hold you liable. This is a very specialized type of relief that carries many procedural and substantive requirements that are beyond the scope of this letter, but it's important that you're aware of it because there are strict time restrictions associated with claiming innocent spouse relief. Get tax resolution services at 1-877-788-2937.

Avoiding more serious consequences. Many taxpayers ignore their tax liabilities when they run into financial difficulties--for example, by failing to file their tax returns. However, tax liabilities do not go away if left unaddressed, and failing to deal with the problem often exacerbates it. It is very important that you timely file a properly prepared return, even if full payment cannot be made. Include as large a partial payment as you can with the return, and start working with the IRS on one (or more) of the options discussed above as soon as possible. Otherwise, you may face escalating penalties, the risk of having liens assessed against your assets and income, or even seizure and sale of your property. In many cases, these tax nightmares can be avoided by taking advantage of the arrangements offered by the IRS. Get tax resolution services at 1-877-788-2937.

Of course, I am available to discuss all of these matters with you on a strictly confidential basis and to offer advice and assistance. Please don't hesitate to call me at 1-877-788-2937.

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We offer reliable tax relief and tax resolution services in all 50 states including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

Mike Habib is an IRS licensed Enrolled Agent who focuses his tax practice on helping his clients resolve their tax controversy matters. His tax relief firm is rated "A" by the better business bureau, which is quite rare for this industry as many are rated "F" or already ceased business operations like American Tax Relief and Nationwide Tax Relief and possibly many more to come.

Do you have IRS tax problems?

Don't procrastinate anymore; call Mike Habib at 1-877-788-2937 for a free analysis of your tax situation. There are solutions to your tax problems.

Tax relief services provided are:

 Stopping wage garnishments and tax levies,
 Stopping and releasing bank levies,
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IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start; Major Changes Made to IRS Tax Lien Process

IR-2011-20

IRS WASHINGTON -- In its latest effort to help struggling taxpayers, the Internal Revenue Service today announced a series of new steps to help people get a fresh start with their tax liabilities.

The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.

"We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start," IRS Commissioner Doug Shulman said. "These steps are good for people facing tough times, and they reflect a responsible approach for the tax system."

Today's announcement centers on the IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include:

• Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
• Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
• Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
• Creating easier access to Installment Agreements for more struggling small businesses.
• Expanding a streamlined Offer in Compromise program to cover more taxpayers.
"These steps are in the best interest of both taxpayers and the tax system," Shulman said. "People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens."

This is another in a series of steps to help struggling taxpayers. In 2008, the IRS announced lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems. And last year, the IRS held about 1,000 special open houses to help small businesses and individuals resolve tax issues with the Agency.

Today's announcement comes after a review of collection operations which Shulman launched last year, as well as input from the Internal Revenue Service Advisory Council and the National Taxpayer Advocate.

Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances.

The IRS plans to review the results and impact of the lien threshold change in about a year.

A federal tax lien gives the IRS a legal claim to a taxpayer's property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.

A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer's credit rating, so it is critical to arrange the payment of taxes as quickly as possible.

"Raising the lien threshold keeps pace with inflation and makes sense for the tax system," Shulman said. "These changes mean tens of thousands of people won't be burdened by liens, and this step will take place without significantly increasing the financial risk to the government."

Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.

Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.

Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
• Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
• The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
• The IRS will also withdraw liens on existing Direct Debit Installment greements upon taxpayer request.

Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.

In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.

"We are trying to minimize burden on taxpayers while collecting the proper amount of tax," Shulman said. "We believe taking away taxpayer burden makes sense when a taxpayer has taken the proactive step of entering a direct debit agreement."

Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.

Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.

The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.

Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.

"Small businesses are an important part of the nation's economy, and the IRS should help them when we can," Shulman said. "By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations."

Offers in Compromise
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.

This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.

OICs are subject to acceptance based on legal requirements. 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. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer's income and assets to make a determination regarding the taxpayer's ability to pay.

Our firm specializes in tax problem resolution and could be of help. Call for a free confidential analysis of your tax situation at 1-877-788-2937.

Good news for American taxpayers who have an outstanding IRS Tax Debt: IRS is still accepting a large number of requests for settlements of delinquent back taxes from taxpayers who are in financial distress and cannot pay their back taxes in full. However, it is a pity that even a huge number of American citizens are possibly qualified for IRS tax relief programs, yet only a small percentage has managed to settle and benefit from these programs. This article not only explores the mistakes made by the individuals who owe IRS back taxes but also explains the best line of attack to resolve your IRS problems.

Although the Internal Revenue Service is offering the taxpayers having back tax problems a solitary opportunity to say goodbye to their tax debt for good, it neither advertises nor suggests that taxpayers should make the use of their offerings. This clearly depicts that the IRS is more eager to recover its full amount instead of providing you the relief. Therefore, most of the taxpayers in financial hardship are not aware of this golden opportunity.

On the other hand, the major reason for taxpayers not being able to enjoy the tax debt settlement offer by IRS is not awareness. In fact majority of taxpayers shamble their case themselves by taking wrong steps, incorrect paperwork and various other mistakes. At the end of the day, these taxpayers have to pay much more than the actual amount owed or end up doing nothing at all.

Offer in Compromise (OIC) is obviously the best way out of IRS back taxes as you have to pay a reduced percentage of the total tax debt. In the current prevalent gloomy fiscal conditions, most of the taxpayers with unpaid back taxes and who are in financial distress and special circumstances due to different hardships, could qualify for an OIC. But as said earlier, many individuals try to negotiate with the IRS on their own and due to lack of tax knowledge and specialized skill set, their OIC request is rejected.

If you want to end your IRS back tax nightmare, you should contact a qualified and reliable tax relief expert. Mike Habib focuses his tax practice on representing his clients before all administrative levels of the IRS. Hire a reliable tax relief professional today, start a tax debt-free life tomorrow!

IRS tax debt relief offered in areas such as: Los Angeles, Whittier, Pasadena, Glendale, Burbank, Orange County, Riverside, Palm Springs, San Bernardino, Palmdale, Bakersfield, New York, New Jersey, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Fort Worth, Baltimore, Charlotte, El Paso, Boston, Seattle, Washington DC, Milwaukee, Denver, Louisville, Jefferson, Las Vegas, Reno, Hempstead, Tucson, Nashville, Davidson, Portland, Tucson, Albuquerque, Santa Fe, Anchorage, Atlanta, Long Beach, Fresno, Sacramento, Mesa, Kansas City, Cleveland, Virginia Beach, Omaha, Miami, Oakland, Tulsa, Honolulu, Minneapolis, Pittsburgh, Colorado Springs, Arlington, Wichita, Birmingham, Montgomery, Tampa, Orlando

IRS tax problems can make your life a complete mess. Tax debt can cause never-ending strain and may also break marriages or even break families. Individuals facing IRS troubles should instantly seek tax help from a qualified tax relief professional to avoid drastic circumstances.

The IRS website is obviously the most comprehensive resource available. You can find all the tax forms, publications, instructions, frequently asked questions as well as resources for individuals, organizations, non-profits and all the other entities subject to tax under the United States laws. If you need any sort of help, documentation or information, the IRS webpage is the place to go.

Download any form from the webpage and you will immediately have the idea how exhausting it can be to fill a form without making even a minor mistake. Unfortunately, the smallest of mistakes can ruin your case and your request will be rejected no matter if you qualify for the IRS tax relief. This clearly illustrates you should seek professional help to get the best possible resolution for your tax problems.

The foremost thing you need to understand is that every individual faces a unique tax problem thus needs a unique solution and there is no one-size-fits-all formula to get rid of IRS tax issues. Furthermore, you must start taking steps to solve the problem as soon as you recognize it because delays will only infuriate the issues.

To get the best outcome, the plan is simple: identify your problem, choose an appropriate solution, complete the necessary paperwork and keep communicating with the IRS until you get all your problems solved. However, each step involved in the process, from pinpointing your issue to getting results, needs technical knowledge and specialized expertise.

IRS revenue agents and officers are pretty punitive because of the nature of their job. For many people this reason alone is enough to hire a tax relief professional instead of facing bullying demands by the IRS employees. When you hire a tax professional i.e. enrolled agent, CPA or tax attorney, you will be represented by your tax expert before the IRS. The expertise and experience of the tax resolution expert not only mean you should sit relaxed but also you can expect the best possible results.

National Taxpayer Advocate Submits Mid-Year Report to Congress; Identifies Priority Challenges and Issues for Upcoming Year

WASHINGTON -- National Taxpayer Advocate Nina E. Olson today released a report to Congress that identifies the priority issues the Taxpayer Advocate Service (TAS) will address during the coming fiscal year. The report expresses concern about the adequacy of IRS taxpayer service, particularly as the IRS begins to implement health care reform, about new information reporting burdens facing small businesses and others, and about certain IRS collection practices.Among the areas the report identifies for particular emphasis in FY 2011 are the following:1. Taxpayer Services.

Spending for IRS taxpayer service programs has been declining in recent years. At the same time, more taxpayers have been contacting the IRS for assistance as the IRS has been tasked with administering an increasing number of social benefit programs, including Economic Stimulus Payments, Making Work Pay credits, and First-Time Homebuyer credits. The report says that as a result of the imbalance between taxpayer demand and IRS resources, the IRS has fallen short of providing adequate taxpayer service in important areas. Most notably, after answering a high of 87 percent of its calls from taxpayers seeking to reach a telephone assistor in FY 2004, the IRS answered only 53 percent of its calls in FY 2008 and has set of goal of answering only 71 percent in the current fiscal year.

The report attributes much of the problem to inadequate funding for taxpayer services. While funding for the IRS overall has been increasing in recent years, the additional funding has been earmarked for enforcement programs. An analysis of IRS budget trends conducted by TAS shows that since FY 2004, inflation-adjusted funding for IRS enforcement activities has risen by 17.9 percent while spending for taxpayer service programs has declined by 6.8 percent, as shown in the following chart:

Taxpayer Services vs. Enforcement Spending Since FY 2004, Adjusted to 2010 Dollars (May 2010)

Moreover, a substantial portion of the budget for taxpayer service includes the costs of processing tax returns, which is essentially an overhead function. Funding for core taxpayer service (known as "Pre-filing Taxpayer Assistance and Education") now stands at only $685 million, or six percent of the IRS budget. The report notes further that the Administration's FY 2011 budget proposal projects that funding for taxpayer services will decline by another 7.2 percent over the next two years (FY 2012 and FY 2013), while funding for enforcement will increase by an additional 13.7 percent.

The report asserts the cuts in taxpayer service spending are harmful both because they undermine tax compliance and because they undermine the IRS's ability to successfully deliver social benefit programs. First, with respect to tax compliance, Ms. Olson states:

There appears to be an implicit assumption built into existing budget procedures and projections that raising tax compliance requires ramping up enforcement and that taxpayer service is less important - perhaps even unimportant - for compliance. We think this implicit assumption is wrong. . . . Consider an individual without a college degree who becomes a successful plumber or electrician with a growing customer base. If he hires employees, he will face a host of employment, immigration verification, and state and federal tax requirements, including the need to withhold and pay over payroll taxes and to file employment tax and income tax returns on behalf of his business. For most taxpayers, these requirements would seem daunting or even impenetrable, and some taxpayers inevitably do not comply simply because they have no idea where to begin.

The report states that many noncompliant taxpayers are baffled by complex rules and states that additional taxpayer service, particularly outreach and education, could improve tax compliance.

Second, with respect to the IRS's ability to deliver social programs, the report expresses concern that the IRS currently is neither structured nor funded to do the job effectively. "I have no doubt the IRS is capable of administering social programs, including health care," Ms. Olson said. "But Congress must provide sufficient funding and the IRS itself must recognize that the skills and training required to administer social benefit programs are very different from the skills and training that employees of an enforcement agency typically possess. While some enforcement measures are required to prevent inappropriate claims, the overriding objective of agencies that administer social benefit programs is to help as many eligible persons qualify for the benefits as possible. That requires outreach and working one-on-one with potentially eligible individuals. If the IRS continues to ramp up enforcement while reducing taxpayer service programs, I would be concerned about its ability to administer the new health care credits and penalty taxes in a fair and compassionate way."

Ms. Olson suggests that the IRS mission statement be revised to explicitly acknowledge the agency's dual role as part tax collector and part benefits administrator. Such a revision would require the IRS to develop a strategic plan that gives sufficient attention to both roles and would underscore that the IRS requires sufficient funding to perform both functions effectively.

During FY 2011, TAS will continue to advocate for improved taxpayer services and will continue to make the case that taxpayer service is important not only as a courtesy but as a driver of tax compliance as well.

2. New Business and Tax-Exempt Organization Reporting Requirements.

The report expresses concern that a new reporting requirement contained in the Patient Protection and Affordable Care Act may impose significant compliance burdens on businesses, charities, and government agencies. Beginning in 2012, all businesses, tax-exempt organizations, and federal, state and local government entities will be required to issue Forms 1099 to vendors from whom they purchase goods totaling $600 or more during a calendar year. To meet this requirement, these businesses and entities will have to keep track of all purchases they make by vendor. For example, if a self-employed individual makes numerous small purchases from an office supply store during a calendar year that total at least $600, the individual must issue a Form 1099 to the vendor and the IRS showing the exact amount of total purchases. The provision will have broad reach. According to a TAS analysis of 2009 IRS data, about 40 million businesses and other entities will be subject to the new requirement, including roughly 26 million non-farm sole proprietorships, four million S corporations, two million C corporations, three million partnerships, two million farming businesses, one million charities and other tax-exempt organizations, and more than 100,000 government entities. All of these nearly 40 million businesses and other entities are subject to the new reporting requirement.

TAS has not yet reached any conclusions regarding the benefits and burdens of the requirement, but the report expresses concern that the burdens "may turn out to be disproportionate as compared with any resulting improvement in tax compliance." During FY 2011, TAS will study the impact of the new reporting requirement more closely and, depending on what its study finds, may propose administrative or legislative recommendations to modify the provision or suggest that Congress consider less burdensome tax gap proposals, including a TAS proposal to require reporting of non-interest bearing bank accounts, to replace it.

3. IRS Collection Practices.

The report expresses continuing concern that IRS collection practices emphasize collection of past-due liabilities even where doing so inflicts unnecessary or disproportionate harm on taxpayers and jeopardizes future tax collection. "The conventional wisdom seems to be that more hard-core enforcement actions like liens and levies mean more revenue," Ms. Olson said. "But the data don't bear that out. Since FY 1999, the IRS has increased tax lien filings by about 475 percent and levies by about 600 percent, yet inflation-adjusted revenue raised by the IRS Collection function has actually declined by about seven percent over that period."

Lien filings can badly damage a taxpayer's financial viability because lien filings appear on credit reports, causing the taxpayer's credit score to drop an average of about 100 points immediately and causing lasting harm because they typically remain on the taxpayer's credit record for at least seven years. Many employers, mortgage companies, landlords, car dealerships, and credit card issuers check credit reports, so the filing of a tax lien can adversely affect the taxpayer's ability to obtain and retain a job, purchase a home, rent an apartment, or obtain credit generally. Accordingly, a lien filing may reduce the taxpayer's income or increase his expenses, thereby impairing his ability to pay tax in the future. Last year, the IRS filed nearly one million liens against taxpayers.

The report also notes that the IRS has issued at least four public statements over the past year-and-a-half pledging to assist financially struggling taxpayers who are having difficulty paying their tax bills. Yet the number of liens and levies has continued to rise, the number of offers-in-compromise the IRS is accepting is near an all-time low, and there is little evidence the IRS is changing its collection practices.

After publication of her 2009 Annual Report to Congress, Ms. Olson issued several Taxpayer Advocate Directives to the IRS on lien issues, including directives (i) to discontinue its policy of automatically filing tax liens in cases where the IRS has determined that the taxpayer's account should be placed into "currently not collectible" status based on financial hardship and (ii) to require managerial approval for the filing of liens in cases where the taxpayer owns no assets. She has also urged the IRS to expand the availability of the offer-in-compromise program for financially struggling taxpayers who cannot reasonably pay their tax debts in full.

In response to these concerns, the IRS has convened a senior-level task force to conduct a comprehensive review of collection practices. Ms. Olson writes that she appreciates the IRS's willingness to examine the issue. However, she remains concerned that it will take years to conduct the comprehensive review, and that in the interim, the IRS will continue both to damage taxpayers' credit ratings and to undermine long-term tax compliance without any significant revenue gains to show for their actions. Accordingly, IRS collection practices will remain a key area of focus for TAS in FY 2011.

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 ten tax issues most frequently litigated in the courts, and make administrative and legislative recommendations to resolve taxpayer problems.

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If you are facing tax problems and in need of professional representation to get tax relief for unpaid back taxes, or unfiled returns, or if you are a business facing 941 tax problems, call us today at 1-877-78-TAXES. We are a professional tax representation firm that offers tax relief services, visit us online at myirstaxrelief.com

Tax Relief - Get tax debt relief today

Reasonable Cause/Good Faith Defense: Even if the taxpayer did not have substantial authority for a position and failed to make adequate disclosure, the substantial understatement penalty does not apply if the taxpayer had reasonable cause for the tax underpayment and acted in good faith [IRC Sec. 6664(c); Reg. 1.6664-4]. This defense is applied on a "facts and circumstances" basis [Reg. 1.6664-4(b)]. However, the key factor seems to be whether the taxpayer made a reasonably energetic attempt to determine the correct tax liability. For example, an honest misunderstanding of fact or law, an isolated computational error, reliance on professional tax advice, or reliance on information returns all indicate reasonable cause/good faith. However, if the taxpayer should have known better, the defense will not apply.
Observation: According to IRM 20.1.5.6, the most important factor in determining whether the taxpayer has reasonable cause and acted in good faith is the extent of the taxpayer's effort to report the proper tax liability. For example, reliance on erroneous information reported on an information return indicates reasonable cause and good faith, provided the taxpayer did not know or have reason to know that the information was incorrect. Similarly, an isolated computational or transcription error may indicate reasonable cause and good faith. Other factors to consider are the taxpayer's experience, knowledge, sophistication, education, mental and physical condition, and reliance on the advice of a tax advisor.

Reg. 1.6664-4(c) discusses when a taxpayer is considered to have reasonably relied in good faith upon someone else's advice (including that of a professional tax advisor). According to the regulation, meeting the following requirements, while not guaranteeing that the accuracy-related penalty will be avoided, tends to indicate that the "reasonable reliance" and "good faith" aspects have been met:
a. The advice must be based on all pertinent facts and circumstances and the law as it relates to those facts and circumstances. For example, the advice must take into account the taxpayer's purposes (and the relative weight of such purposes) for entering into a transaction and for structuring a transaction in a particular manner.
b. The taxpayer must inform the adviser of all facts that are known, or should be known, to be relevant to the proper tax treatment of an item.
c. The advice must not be based on unreasonable factual or legal assumptions (including assumptions about future events) and must not unreasonably rely on the representations, statements, findings, or agreements of the taxpayer or any other person. For example, the advice must not be based upon a representation or assumption that the taxpayer knows, or has reason to know, is unlikely to be true, such as the taxpayer's purposes for entering into a transaction.
d. Reliance on the adviser may not be reasonable or in good faith if the taxpayer knew, or should have known, that the adviser lacked knowledge in the relevant aspects of federal tax law.

When taxpayers reasonably relied on the advice of an expert concerning a sham investment, the 5th Circuit Court held that the reasonable cause defense applied and stated that the taxpayers were not required to challenge the expert, seek a second opinion, or try to monitor the expert on the provisions of the Code. To require otherwise would nullify the purpose of seeking expert advice (Chamberlain).

Our firm represents taxpayers before all administrative levels of the IRS in all 50 states, get tax relief today by calling 1-877-78-TAXES (877-788-2937). Also online at http://www.myirstaxrelief.com

We provide tax relief services in all 50 states including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

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IRS Examples of Tax Nonfiler Investigations - Fiscal Year 2010

Mike Habib, EA 1-877-788-2937

The following examples of Nonfiler investigations are excerpts from public record documents on file in the court records in the judicial district in which the cases were prosecuted.

Back taxes, unfiled tax returns, tax debt settlement, tax problem, tax help, payment plans, wage garnishment, tax levy, tax lien

West Virginia Attorney Sentenced for Failing to Pay Over $405,000 in Taxes

On April 14, 2010, in Charleston, W.Va., Richard A. Hayhurst, of Parkersburg, was sentenced to 21 months in prison and ordered to pay over $400,000 in restitution for failure to pay employment taxes for employees. According to court documents, Hayhurst practiced law in Parkersburg and operated his firm as a sole proprietorship. From early 2000 through late 2006, Hayhurst withheld federal income and FICA taxes from his four employees' paychecks in the amount of $216,767. However, Hayhurst failed to pay over taxes as reflected on the IRS Form 941. Further, Hayhurst failed to pay the employer portion of his employees' Social Security and Medicare taxes totaling $44,557 from the second quarter of 2003 through the third quarter of 2006. Finally, Hayhurst failed to pay his own personal income taxes for the years 2003, 2004, and 2005 totaling $134,965 in unpaid tax liability. In total, the charged tax liability and relevant conduct attributed to Hayhurst is $405,082.

West Virginia Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Ohio Man Failed to File Tax Returns for Three Years

On April 13, 2010, in Toledo, Ohio, Mark J. Zokle, of Sandusky, Ohio, was sentenced to 15 months in prison for failing to file income tax returns for three years. Zokle pleaded guilty in May 2009 to willfully failing to file his federal individual income tax returns for 2001, 2002, and 2003. According to court documents, Zokle admitted he worked as an independent sales representative for TEMO Sunrooms, Inc., of Clinton Township, Michigan. He earned commission income of $862,463, $756,980, and $794,067, respectively, in those three. Zokle further admitted he failed to pay the Internal Revenue Service (IRS) $425,652 in individual income taxes for these three years combined.

Ohio Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

California Man Sentenced for His Participation in Mortgage Fraud Scheme

On April 5, 2010, in Los Angeles, Calif., Lorenzo Espinoza, a Newport Coast man, was sentenced to 60 months in prison for defrauding the Department of Housing and Urban Development (HUD) by fraudulently obtaining mortgage loans that went into default. Espinoza was ordered to pay more than $614,000 in restitution to HUD. In December 2006, Espinoza pleaded guilty to conspiracy to defraud HUD, bankruptcy fraud, money laundering, and willful failure to pay tax to the Internal Revenue Service (IRS). In pleading guilty, Espinoza admitted that he engaged in a scheme that ran from April 1995 until approximately May 2001 and caused HUD to suffer losses when he and his associates fraudulently purchased nearly 100 residential properties. The properties were sold at inflated market values to "straw buyers" who were unable to make payments on the homes. Espinoza and his associates supplied the down payments for the straw buyers and in some cases obtained bogus tax forms and paycheck stubs that were submitted with the loan applications. The lenders relied on the false documents when they approved the loans, and HUD relied on the false documents in insuring the home loans. When the straw buyers defaulted on the home loans and the lenders foreclosed on the properties, HUD reimbursed the lenders for their costs and took possession of the properties. HUD ultimately suffered losses of more than $2 million when it sold the properties for far less than the fraudulent purchase prices of the homes. In addition to defrauding lenders and HUD, Espinoza committed bankruptcy fraud in 1999 when he filed for bankruptcy and failed to tell the United States Trustee that he owned a Rolex Daytona watch, two Ferraris and a Lamborghini. In late 2002, Espinoza laundered the proceeds of his bankruptcy fraud when he sold the Ferrari automobiles for $127,500. Espinoza also pleaded guilty to willfully failing to pay income tax, admitting that he did not pay $199,053 due for the 1996 tax year. In court papers filed in relation to the sentencing, prosecutors pointed out that Espinoza had not filed tax returns for well over 10 years and owes the Internal Revenue Service more than $5 million in taxes, interest and penalties.

California Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Utah Man Sentenced for Mortgage Fraud

On March 30, 2010, in Salt Lake City, Utah, Jerry Huff was sentenced to 12 months and one day in federal prison, to be followed by five years of supervised release, and ordered to pay $264,050 in restitution. In June 2009, Huff was convicted by a jury on charges of wire fraud, money laundering, and failure to file a federal income tax return. According to the indictment, Huff, the owner of a construction business known as High Caliber Construction Company, fraudulently obtained $250,000 from First Greensboro Home Equity (FGHE), a mortgage bank headquartered in Greensboro, North Carolina, by making false statements to obtain a second mortgage on his house in Moab, Utah. Huff's loan application package reflected false statements of personal income and ability to repay the second mortgage, while at the same time omitting mentions of financial problems and non-payment of taxes. Huff also submitted a fictitious appraisal of the property and altered photos that gave the impression the house was completed both inside; fully landscaped; inhabited; and well appointed inside. Huff also provided personal tax return forms for the years 2001 and 2002 when in fact, the defendant did not file tax returns for those years. Once Huff obtained the second mortgage in the approximate amount of $250,000, he failed to make loan payments to FGHE.

Utah Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Ohio Man Sentenced for Income Tax Evasion

On March 19, 2010, in Columbus, Ohio, Rudolph Joseph Fox, Jr. was sentenced to 12 months in prison, followed by three years of supervised release, ordered to pay $23,765 in restitution to the Internal Revenue Service (IRS), and fined $3,000. Fox was convicted by a jury in November 2009, of three counts of income tax evasion and one count of willful failure to file a federal income tax return with the IRS. According to court documents, during 2002 and 2003, Fox demanded that his employer not withhold federal income taxes from his salary or wages. During 2005, Fox stated his taxable income was zero even though he received a salary or wages as an employee of a medical company. As a result of the unreported income for tax years 2002, 2003, and 2005, the tax loss was $23,765. In addition, Fox willfully failed to file a 2004 federal income tax return, even though he received income for the year.

Ohio Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Owners of East St. Louis Day Care Center Sentenced on Fraud Schemes

On March 18, 2010, in East St. Louis, Ill., Monica M. Owens and Robby L. Owens, both of Clayton, Missouri, and formerly of Fairview Heights, Illinois, and Great Kids, Inc., an East St. Louis Day Care Center, were sentenced on charges relating to evasion of taxes, theft of federal program funds, and food stamp benefit fraud. Monica Owens was sentenced to 25 months in prison, three years of supervised release, and ordered to pay a special assessment of $300. Robby Owens was sentenced to 25 months in prison, three years of supervised release, and ordered to pay a special assessment of $100. The defendants were also ordered to pay $203,057 in restitution to the Illinois Department of Human Services (DHS) and $249,197 in restitution to the Internal Revenue Service (IRS). In addition, Great Kids, Inc. was sentenced to five years probation and ordered it to pay criminal restitution to the DHS on its conviction for theft of federal program funds. According to court documents, Monica and Robby Owens solely owned and operated Great Kids, Inc. The couple controlled all the business accounts and received all profits earned through Great Kids, Inc. Monica and Robby Owens, however, attempted to evade or defeat the assessment of income taxes and failed to file a tax return for 2005 and failed to pay income taxes. Monica Owens and Great Kids, Inc. further obtained payments by fraud by submitting false child care claims to the DHS, claims for child care of children who did not attend or were not present in the child care center. Monica Owens also falsely applied for food stamp benefits by denying that she was receiving a monthly household income from employment.

Illinois Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Chicago Businessman Sentenced to Five Years for Cheating on Federal Taxes Over Ten Years

On March 4, 2010, in Chicago, Ill, Jon Darmstadter was sentenced to 60 months in prison and ordered to pay nearly $2.3 million in restitution for tax evasion. According to court documents, in the late 1990s and early 2000s Darmstadter was an executive of the Children's Beverage Group, Inc. (CBG), a publicly-traded company in Northbrook, Ill. He admitted using brokerage accounts in Canada to hold stocks and execute trades and then hiding the income from those stock sales in off-shore bank accounts in the Turks and Caicos Islands. He also admitted failing to report income from the sale of stock and capital gains from stock sales involving both CBG and another company he operated, Zkid Network Company, a media content company that developed and marketed software to protect children using the internet. Darmstadter also admitted that he made false statements on multiple occasions in U.S. Securities and Exchange Commission filings relating to Zkid, where he illegally generated more than $427,000 in over-the-counter sales of Zkid stock in 2003. Darmstadter filed false tax returns for all six years from 1998 through 2003, and that he failed to file tax returns for the years 2004 through 2007.

Illinois Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Former Corporate Executive Sentenced for Failing to File Tax Returns

On February 24, 2010, in Springfield, Mo, Ronald Kirkland was sentenced to 24 months in prison for failing to file income tax returns on millions of dollars of income. According to court documents, Kirkland was a sales representative and independent contractor for American Family Life Assurance Company (AFLAC) serving as AFLAC's Missouri sales manager. During that time he was paid as an independent contractor rather than an employee. In 2004, Kirkland was promoted to senior vice-president and director of sales, which was a salaried position at the company's headquarters in Columbus, Ga. Kirkland admitted that he failed to file tax returns for the years 2002 thru 2005. During that four-year period, Kirkland received total gross income of approximately $6,326,000. In each of those years, Kirkland filed for extensions of his deadline, but never filed returns.

Missouri Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Chicago Area Man Sentenced in Scheme that Utilized Defunct Business to Evade Taxes

On January 7, 2010, in Chicago, Ill., Rudy Fratto was sentenced to 12 months and a day in prison, to be followed by three years of supervised release, and ordered to pay more than $141,000 in restitution. According to court documents, Fratto was charged, in September 2009, with one count of income tax evasion for failing to file a 2005 tax return reporting $199,595 in gross income. Fratto admitted to the same offense for tax years 2001, 2002, 2003, 2004, 2006 and 2007. According to the Information, from January 1, 2005 and continuing through about April 17, 2006, Fratto utilized a bank account in the name of J.J.F. Inc, a corporation that was dissolved in November 1997, in order to conceal and avoid reporting his income to the IRS. Fratto instructed businesses and others to issue checks in payment of wages, compensation and other income to J.J.F. Inc. Fratto used the J.J.F. Inc. account to pay personal expenses and to withdraw cash. Fratto made his mortgage payments in cash and paid other bills with money orders, in order to conceal and avoid reporting his income to the IRS. The total unreported gross income for the seven year period was nearly $836,000.

Illinois Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Professional Golfer Sentenced for Failing to Pay More Than $2 Million in Taxes

On January 22, 2010, in Orlando, Fla., Jimmy L. Thorpe, aka Jim Thorpe, was sentenced to 12 months in prison, to be followed by two years of supervised release and 200 hours of community service for failing to pay more than $2 million in income taxes. Thorpe was also ordered to repay all taxes due and owing. According to court documents, Thorpe is a professional golfer on the Professional Golf Association (PGA) Champions Tour, formerly known as the PGA Senior Tour. During the years 2002, 2003, and 2004, Thorpe earned income playing in PGA events and from various endorsements, including Foxwoods Casino. JLT, Inc. (Foxwoods). Foxwoods was a Florida corporation incorporated in September 1998, in which Thorpe was the sole officer and director. Although he filed with the Internal Revenue Service extensions of time in which to file his personal income tax returns and corporate income tax returns for the tax years 2002, 2003, and 2004, Thorpe did not make any payments for personal income taxes with the extensions. In addition, Thorpe did not make any estimated tax payments for those tax years and had approximately $2,991 taxes withheld. For the calendar years 2002, 2003, and 2004, Thorpe received approximately $5,365,154 in gross income with an estimated tax due of over $2 million.

Florida Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

South Carolina Couple Sentenced on Failure to File Tax Returns

On January 19, 2010, in Greenville, S.C., Robert M. "Mark" Ledford, and Cheryl H. Ledford, of the Glenn Springs area were sentenced for income tax evasion. Robert Ledford was sentenced to 30 months in prison to be followed by three years of supervised release. Cheryl Ledford received a sentence of three years probation, including a requirement that she serve five months of house arrest. Both Ledfords were ordered to cooperate with the Internal Revenue Service (IRS) in filing tax returns and payment of back taxes estimated in excess of $875,000, as well as penalties and interest. According to court documents, the Ledfords had not filed U.S. individual income tax returns since 1991. Between 1992 and 1995, Robert Ledford owned and operated a nursery business in Spartanburg from which he derived substantial income upon which no income taxes were paid. In 1997, the IRS assessed him federal taxes, exclusive of penalties and interest, in the amount of $822,065. Robert Ledford, aided by Cheryl Ledford, took steps to avoid the payment of those taxes by, among other things, placing income, funds, and property into the names of nominee organizations, some of which were controlled by the Ledfords and by converting assets into cash. In 2005, Robert Ledford purchased and operated a garden center from which taxable income was derived. Again, no taxes were paid and nominee organizations were utilized to receive money from the garden center. Money from the nominee organizations was deposited into Cheryl Ledford's personal bank account, which she used to pay personal expenses.

South Carolina Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Former San Francisco Investment Fund Manager Sentenced

On January 15, 2010, in San Francisco, Calif., Edward S. Ehee, of Walnut Creek, Calif., was sentenced to 51 months in prison, to be followed by three years of supervised release, and ordered to pay restitution for committing wire fraud, tax evasion and making and subscribing a false partnership return. In his guilty plea on March 13, 2009, Ehee admitted that between 2001 and 2006 he defrauded investors in investment funds of more than $4 million. Ehee represented to investors that he would invest their funds in the securities markets and employ complex trading strategies to earn high returns with less risk than is ordinarily associated with such returns. Instead of investing the funds as promised, he diverted most of the funds for improper purposes, including the payment of existing investor distribution obligations using new contributions from other investors, and payments for the benefit of himself and his family. Ehee also admitted that although he had approximately $240,500 in taxable income in 2005, he did not file a tax return or pay any income tax for 2005. Ehee also admitted that he made and subscribed, under the penalties of perjury, a false partnership return for the tax year 2005 for one of his investment funds. Ehee intentionally inflated the assets reported on the balance sheet of the return to match the amount of money that he was supposed to have invested on behalf of his clients, when he knew that he had not invested any of their money in that fund in 2005.

California Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Arizona Asphalt Paver Sentenced to Prison for Tax Evasion

On January 7, 2010, in Phoenix, Ariz., John Stacey was sentenced to 77 months in prison and ordered to pay $1.5 million in restitution for tax evasion. According to court documents, Stacey was convicted on charges of income tax evasion, corrupt interference with the due administration of the IRS, and multiple counts of fraudulent use of a social security number. According to the evidence presented at trial, Stacey operated a sole proprietorship asphalt paving company that did business under various names, including A to Z Paving, Triple A Paving, Texas Paving, Pave Your Way Construction and A to Z Paving Engineering, among others. Stacey earned gross income in excess of $4 million from his business during the years 2000 to 2003, but he has never filed an individual income tax return with the IRS. Since at least February 2002, Stacey knew that he owed taxes, penalties and interest for tax years 1995, 1996 and 1997. Stacey has made no payments to the IRS towards this tax debt. In addition to not paying his outstanding tax debt, Stacey took numerous steps to frustrate the IRS's efforts to both investigate the case and collect tax that he owed.

Arizona Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Texas Couple Sentenced on Tax Evasion Charges

On December 11, 2009, in Sherman, Texas, Phillip G. Kellar and Michelle G. Kellar were each sentenced to 41 months in prison to be followed by three years of supervised release, and ordered to pay $312,825 in restitution to the Internal Revenue Service (IRS). According to court documents, from 2001 to 2008, the Kellars willfully attempted to evade payment of their income taxes by filing false Forms W-4 and attachments and filing false "Withholding Exemption Certificates." Additionally, during that time period they failed to file a tax return for tax year 2000 and filed returns for tax years 2001, 2002, and 2003 in January 2006. They submitted correspondence intended to obstruct the collection of taxes to the IRS, and also submitted checks designated for payment of taxes to the IRS that were drawn on accounts that contained insufficient funds.

Texas Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Ohio Man Sentenced for Role in Mortgage Fraud Scheme

On December 10, 2009, in Cincinnati, Ohio, Julian M. Hickman was sentenced to 33 months in prison, to be followed by three years of supervised release, and ordered to pay a $12,500 fine. Hickman pleaded guilty in December 2008 to two counts of conspiracy and three counts of willful failure to file income tax returns. In a statement of facts filed with his plea, Hickman admitted that, between March 2002 and June 2008, he and others recruited unsuspecting individuals to buy residential properties, the majority of which were low income, dilapidated and otherwise depressed residential properties, at prices artificially inflated above legitimate fair-market values. Hickman admitted that he participated in 107 separate fraudulent real estate closings between March 2002 and June 2006. Hickman and his co-conspirators netted more than $3.8 million from the deals. Although he received in over $1.7 million in gross income in 2003, 2004, and 2005, he failed to file federal income tax returns. According to court documents, scheme led to foreclosure against owners of more than 90 percent of the properties.

Ohio Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Pennsylvania Man Sentenced to Four Years on Fraud and Tax Evasion Charges

On December 11, 2009, in Philadelphia, Pa., Lawrence Paul Cowan, of Boothwyn, Pa., was sentenced to 48 months in prison and ordered to pay a $5,000 fine and to pay $308,000 in restitution to the Internal Revenue Service (IRS), which includes back taxes and interest. According to court documents, Cowan worked under his deceased father's social security number as an insurance agent from 1998 through 2004, making hundreds of thousands of dollars, yet he filed no federal tax returns during that period. Between 2002 and 2004, Cowan evaded more than $73,000 in federal income tax.

Pennsylvania Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Mississippi Businessman Sentenced for Failing to File Tax Returns and Criminal Contempt

On November 30, 2009, in Jackson, Miss., Wiley Randolph "Randy" Kuyrkendall of Pearl, Mississippi, was sentenced to 46 months in prison, followed by one year of supervised release, for failure to file federal income tax returns and fleeing from his criminal trial. Kuyrkendall was also ordered to pay $443,806 in restitution to the Internal Revenue Service (IRS) and $3,113 to the U.S. District Court. According to court documents, Kuyrkendall, formerly a State Farm insurance salesman, was found guilty by a jury in August 2009 of failing to file income tax returns for the years 2002 through 2005, although he received almost $800,000 in gross income during those four years. The evidence during trial disclosed that Kuyrkendall had filed a federal civil lawsuit against the IRS seeking $1.1 billion and claiming that Congress did not have authority to tax. The court scheduled a pre-trial conference in the case for August 14, 2009, and the trial was set to begin on August 17, 2009. Kuyrkendall failed to appear on both dates and was arrested shortly thereafter by the U.S. Marshal Service. Based on these actions, the court charged Kuyrkendall with two counts of criminal contempt for fleeing and failing to appear for those two court-scheduled events.

Mississippi Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Detroit Area Businessman Goes to Jail for Tax Evasion

On November 25, 2009, in Detroit, Mich., Marc Bruce was sentenced to 16 months imprisonment, followed by three years of supervised release, and ordered to pay $328,085 in restitution to the Internal Revenue Service (IRS) and to file accurate back tax returns. According to court records, during the 2001 through 2004 tax years, Bruce received over $890,000 in taxable income from his business M&C Trucking, Inc., and willfully failed to file tax returns with the IRS. Bruce also attempted to conceal his true and correct income from the IRS and failed to pay over $244,000 in tax due and owing. He also conducted business in cash and transferred his assets to nominees.

Michigan Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Florida Man Sentenced on Tax Evasion Charges

On November 23, 2009, in West Palm Beach, Fla., Carl Libertino, of Sebastian, Florida, was sentenced to 30 months in prison, to be followed by three years of supervised release, and ordered to pay $202,160 in restitution for unpaid taxes. Libertino pleaded guilty in July 2009 to tax evasion charges. According to stipulated facts read in open court at the guilty plea, Libertino did not file personal income tax returns from 2004 through 2007. During these years, Libertino received substantial income, in large part, from persons who believed they were investing their money through Libertino. To further conceal his income and evade taxes, Libertino operated mostly in cash, withdrawing amounts small enough to evade federal currency transaction reporting (CTR) requirements.

Florida Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Rhode Island Couple Sentenced for Tax Evasion

On November 18, 2009, in Providence, R.I., Albert Martin and his wife, Lorraine Martin, were sentenced for committing tax evasion and conspiring to defraud the United States. Albert Martin was sentenced to 51 months in prison and three years of supervised release. Lorraine Martin was sentenced to 12 months and a day in prison and three years of supervised release. In addition to the prison terms, Albert and Lorraine Martin were ordered to pay $463,988 in restitution to the U.S. Treasury. According to the indictment and evidence introduced during their trial, Albert Martin and co-conspirator, Bruce Lapierre owned and operated a Woonsocket-based machine shop from which they earned substantial income. From 1997 to 2004, the defendants engaged in an elaborate scheme to conceal from the Internal Revenue Service (IRS) income that they earned through Classic Machine, and thus avoid paying taxes on that income. Rather than open business accounts for depositing business receipts and income, they allegedly used Lorraine Martin's personal account to conceal business receipts, as well as an anonymous "private" banking service designed to conceal income from the IRS. The evidence also showed that the defendants, in order to further conceal their assets and income from the IRS, used multiple business names, such as Banner Technologies, Circle Machine, Preferred Enterprises and Royal Enterprises. The defendants also made extensive use of cash and money orders. In October 2009, Lapierre was sentenced to 51 months in prison for his role in the scheme.

Rhode Island Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Las Vegas Business Owner Sentenced To 15 Years in Prison for Tax Fraud Scheme

On November 16, 2009, in Las Vegas, Nev., Robert Kahre and his sister, Lori Kahre, were sentenced to 190 months and 72 months in prison, respectively. Both were found guilty in August 2009 of conspiring to defraud the federal government for the purpose of impeding the Internal Revenue Service (IRS) in its collection of income and employment taxes. According to information presented in court, between 1997 and 2003, Robert Kahre owned and operated six construction-related businesses in Las Vegas and paid employees over $100 million in cash wages. Additionally, Kahre provided a payroll service to approximately 35 other construction contractors who employed thousands of employees. Robert and Lori Kahre devised and used a payroll scheme that concealed and disguised the true amount of income received by his employees and the employees of the companies for which he provided payroll services. Robert Kahre claimed to pay employees in gold or silver coins, but which were actually immediately exchanged for pre-determined envelopes of cash. The face amount of the coins was one-eighth the amount of pay that the employee actually earned and received in the cash envelope. The defendants told the employees that the income was either not taxable or that they should falsely report their income to the IRS at the face amount of the gold and silver coins. During the course of the scheme, cash wage payments of at least $25 million were paid to Robert Kahre's employees and cash payments of approximately $95 million were paid to the employees of the other contractors. No federal tax withholdings were made from the paychecks, and the wages were not reported to the IRS. The defendants took steps to hide the correct amount of income paid to the employees by using false invoices, keeping two sets of books, using false names on payroll records, making false statements on mortgage applications, and using nominees to conceal assets. In addition to the payroll scheme, Robert Kahre was convicted of evading personal income tax on approximately $12 million in income for the years 1999 through 2002; Lori Kahre was convicted of evading personal income tax on approximately $242,882 in income for the years 1998 and 2000 through 2005.

Nevada Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Maine Man Sentenced on Federal Tax Evasion Charges

On November 16, 2009, in Bangor, Maine, Richard J. Thomas was sentenced to 24 months in prison, three years of supervised release, and ordered to pay $15,082 in restitution and a $100 special assessment. The supervised release conditions required, among other things, that Thomas report to the Internal Revenue Service (IRS) true and accurate tax returns for the years 1995 through 2008. On January 11, 2006, Richard Thomas, a local chiropractor, was indicted on six counts of tax evasion from 1995 through 2001 (excluding 1997). Thomas pleaded guilty on February 2, 2009 to tax evasion for tax year 2001. According to court documents, Thomas owed substantial income tax for the year in question, but he willfully attempted to evade tax assessment for that year. Prior to 1995, Thomas had filed tax returns, which indicated he was aware of his duty to file tax returns.

Maine Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Former Connecticut Resident Sentenced to Prison for Evading Taxes; Structuring Cash Deposits

On October 23, 2009, in Hartford, Conn., Eugene Cappello was sentenced to 24 months in prison, to be followed by two years of supervised release, for failing to pay more than $237,000 in federal taxes and structuring cash deposits. Cappello was also ordered to pay a $5,000 fine and to pay approximately $403,000 in back taxes, penalties and interest. In addition, Cappello was ordered to forfeit $39,500. According to court documents and statements made in court, in August 2000, Cappello was contacted by the Collection Division of the Internal Revenue Service (IRS) for non-payment of taxes related to his 1997, 1998 and 1999 individual income tax returns. After that Cappello made only nominal payments toward his total balance due and, in May 2004, he submitted a signed document to the IRS documenting his purported inability to pay the more than $237,000 in taxes and interest that he owed for his 1997 through 2003 tax returns. During this period, Cappello hid cash from the IRS and made significant personal expenditures, including $34,781 for a country club membership and $91,000 for a yacht. In addition, Cappello had a house built by making more than $350,000 in cash payments to building contractors. To help hide his assets from the IRS, Cappello had his paychecks issued in the name of another individual. Further, he directed this person to structure cash deposits into two different bank accounts.

Connecticut Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

South Carolina Man Gets Prison for Income Tax Evasion

On October 22, 2009 in Columbia, S.C., Barry Lusk was sentenced to 33 months in prison and three years supervised release for failing to pay income tax. According to court documents, Lusk was the sole operator of two businesses that he sold for nearly $1.5 million in 2000. Lusk used the proceeds to buy houses, real estate and purchase an airplane instead of paying the taxes due on the sale of the businesses. Lusk was part of a movement advocating income tax was not applicable to him and sent a letter to the Internal Revenue Service (IRS) detailing his beliefs. In 2002 the IRS began a civil audit of Lusk and an IRS representative attempted to contact Lusk regarding his responsibility to file an individual tax return for the year 2000. In 2003, Lusk filed a joint 1040 return for 2000 and claimed that he and his spouse had no income and that there was no tax due or owed. However, he asked for a refund of an estimated tax which had been paid in 2000. Lusk also filed amended tax returns for two prior tax years attempting to get refunds claiming the original returns were filed in error. Luck's income was estimated at more than $843,000, with a tax debt of more than $183,000.

South Carolina Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Anchorage Man And Wife Sentenced for Conspiracy to Defraud the IRS

On October 16, 2009, in Anchorage, Alaska, Eugene and Lorna Warner, of Anchorage, were sentenced in federal court for their convictions of conspiracy to defraud the Internal Revenue Service (IRS). Eugene Warner was sentenced to 37 months in prison, three years of supervised release and fined $15,000. Lorna Warner was sentenced to five years probation, including ten months of home confinement, and fined $8,000. Both defendants were ordered to file accurate tax returns from 1991, through present, make a good faith attempt to pay all back taxes, interest, and penalties to IRS, and comply with the tax laws. According to information presented to the court, the defendants were charged in a 37-count indictment with conspiracy to defraud the IRS, obstruction of the IRS, filing false tax returns, mail fraud, and making false claims against the United States. Eugene Warner was also charged with bankruptcy fraud. On July 30, 2009, both defendants entered guilty pleas to the charge of conspiring to defraud the United States. Both defendants were previously convicted in 1997 of obstructing the IRS and sentenced to 18-month prison terms. According to the indictment, the defendants engaged in a course of conduct intended to evade the payment of lawful debts, conceal assets from creditors, and obstruct collection activities by those creditors. The defendants attempted to evade these debts by concealing assets in nominee entities, so that their names did not appear as the owners of the property. They then failed to disclose his ownership of the property in documents filed with the United States District Court, the United States Bankruptcy Court, and the IRS. They were also accused of mailing worthless "International Bills of Exchange" to the IRS and other creditors in an unsuccessful attempt to pay off their debts. In their plea agreement and in open court, the Warners admitted that, as a part of the conspiracy, they both made false statements to the IRS about his assets, omitting real property and bank accounts held in the name of bogus nominee "trusts." They also admitted sending to the IRS a sworn "commercial affidavit" that falsely claimed that the IRS owed them $1.5 million. Eugene Warner further admitted that he testified falsely before the U.S. Bankruptcy Court about his assets in a 2003 hearing.

Alaska Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Washington State Man Sentenced in Fraudulent $3.2 Million Consumer Debt Discharge Program

On October 15, 2009, in Spokane, Wash., Jason Paul Christensen, formerly of Pasco, Washington, was sentenced to 109 months of imprisonment, to be followed by three years of supervised release. Christensen was ordered to pay $3,238,997 in restitution to the victims of his scheme. According to court documents, Christensen fraudulently obtained $3.2 million from over 1,300 victims across the country through a Ponzi-type scheme advertised as a debt elimination program. Christensen pleaded guilty on April 16, 2008, to mail fraud and money laundering charges relating to the scheme he engaged in over a period of about three years through the Internet and a post office box business address in Richland, Washington. In his plea agreement, Christensen admitted that between approximately October 15, 2003, and December 31, 2005, he solicited his victims via websites on which he advertised that his company employed a team of federal attorneys who used loopholes in the law to discharge consumer debts. When in fact, he did not employ any team of attorneys and no such legal loopholes existed. Christensen promised his customers that his company would fully discharge their debts, his program was 100 percent successful, and customers were guaranteed success or would receive their money back. Customers, however, were required to pay Christensen's companies amounts of at least $2,500 and as much as $20,970 in advance. He obtained the large number of victims by paying off the loans of some of his "clients" with other victims' money and then recruiting his satisfied "clients" to become his "consultants" to whom commissions were paid for recruiting their family and friends into the program. After paying his "consultants" their commissions to promote the scheme, Christensen pocketed the rest of the proceeds for his personal use. In total, the scheme netted over $3.2 million from victims seeking debt elimination and located all over the United States.

Washington Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Rhode Island Machine Shop Owner Sentenced to 51 Months for Tax Crimes

On October 7, 2009, in Providence, R.I., Bruce Lapierre of Pascoag, R.I., was sentenced to 51 months in prison and ordered to pay $463,988 in restitution. In March 2009, Lapierre and his co-defendants, Albert and Lorraine Martin, were convicted of conspiracy to defraud the United States and tax evasion. According to the indictment and evidence introduced at trial, Lapierre and Albert Martin owned and operated Classic Machine, machine shop based in Woonsocket, R.I. From 1997 to 2004, the defendants engaged in an elaborate scheme to conceal income from the Internal Revenue Service (IRS). Rather than open business accounts for depositing business receipts and income, they used Lorraine Martin's personal account to conceal business receipts, as well as an anonymous "private" banking service. Trial evidence showed that the defendants, in order to further conceal their assets and income from the IRS, used multiple business names, such as Banner Technologies, Circle Machine, Preferred Enterprises and Royal Enterprises. The defendants also made extensive use of cash and money orders. Additionally, evidence presented at trial showed that Lapierre tried to obstruct an IRS investigation of the machine shop's income by renaming business assets, by sending false and frivolous letters to the IRS claiming he was not required to file tax returns or pay taxes, and by directing a financial institution not to comply with an IRS summons for records. Sentencing for Albert and Lorraine Martin is scheduled for a later date.

Rhode Island Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

Kentucky Chiropractor Sentenced to 21 Months for Failing to File Tax Returns

On October 1, 2009 in Paducah, Ky., Charles Boulton was sentenced to 21 months in prison, one year of supervised release, and ordered to pay nearly $95,000 in restitution for failing to file personal income tax from 2001 to 2006. According to court documents, Boulton, a provider of drug and alcohol tests to truck driving schools and transportation companies in Western Kentucky, earned nearly $496,000 from 2001 to 2006 and did not file tax returns.

Kentucky Tax Relief, IRS Tax Help, IRS Tax Audit, Tax Settlements, and Tax Resolution call 1-877-78-TAXES

IRS Problem Solver - Solutions to tax problems

Tax relief expert and IRS Problem Solver, Mike Habib, states that taxation doesn't have to be taxing! Your right to deal with the IRS by yourself carries the right to hire and solicit assistance and representation on your behalf. This is what is usually and commonly done, especially because dealing with the IRS is frustrating and intimidating for the normal taxpayer which is the essence of retaining an experienced IRS Problem Solver. The IRS Problem Solver can either be an Enrolled Agent, CPA or Tax Attorney. These tax professionals are commonly known IRS Problem Solvers, Tax Resolution Specialists, or Tax Relief Specialist.

Before knowing what an IRS problem solver is, we must first know what an IRS Problem is. Yes, these are matters relating to problems on taxes or problems encountered with the IRS either because you have back taxes, discovered deficiency in tax payment or Tax Debt, conflicting records of income and expenses when compared to IRS records discovered from other sources such as employers payroll record or other financial institution.

IRS Problem Solver is the remedy, resolution or relief available to you as a taxpayer. This principally involves a special assistance from a tax relief professional to help you in dealing with your tax problem arising from economic needs or plain system problem. IRS problems may also be due to the late or delinquent filing of your tax return or payment of taxes or back taxes discrepancy in the accounting of your return and many more.

Hiring an IRS Problem Solver allows you proper representation before the IRS Collections, IRS Audit and the IRS Appeals are allowed to deal with your representative and adjust, settle and resolve your IRS problems with them instead of you dealing with the tax problem on your own. Going DIY, do it yourself, is not advisable as this is like the case of Goliath vs. David. The IRS personnel are very knowledgeable in their field and usually reach arrangements with the taxpayer directly that are not favourable to the taxpayer as the taxpayer is unaware of their options and rights under the complex tax laws. IRS employees are more schooled and skilled in the art of taxation and tax enforcement is their business which ends up trapping and destroying the weaker taxpayer instead of helping them out on a win-win basis. An experienced IRS Problem Solver would represent you before the IRS, analyze your financial situation and negotiate a reasonable settlement with the IRS on your behalf.

IRS Problem Solvers are tax professionals who are individually licensed by the Federal Government, or by your home State and act as Tax Resolution Specialists. They assist and help in various IRS problems by availing and qualifying taxpayers for the IRS Offer in Compromise program, arranging Installment Plans, removing you from active collections to CNC status (Currently Non Collectible), have the IRS release your wage levy and get your bank levy released and much more. Importantly, IRS Problem Solvers are and can help in the resolution of tax problems not resolved through normal channel or IRS system and procedures.

Thus from the term IRS Problem Solver, there is already a problem and it pinpoints to a fact there is a need to get someone other than yourself to do the problem solving and the problem solver must be well versed in IRS problems and equipped in handling your case for a successful resolution.

Lastly, a word of caution, make sure that you ALWAYS speak with the IRS Problem Solver you hire, make sure he or she is licensed, and experienced in representing taxpayers before the IRS, do not speak with a sales representative, or a tax consultant . Finally, the representative you hire must have an excellent standing with the BBB, Better Business Bureau. Get tax resolution today, call Mike Habib, EA at 1-877-78-TAXES (877-788-2937).