The IRS or Internal Revenue Service has a singular purpose as part of the Federal Government, it is designed to collect and account for all of the tax dollars owed to the government. The IRS derives all of its power from the United States Tax Code and all actions that they take are done so using many different notices and forms. One of those forms is the CP 504 notice and it has to do with IRS Tax Levy.
Get tax help today, free case evaluation at 1-877-788-2937.
This article will define tax debt and tax relief, the role of representation by EA, CPA, lawyer, benefits that come with using a power of attorney, situations that they come in and some of the tax relief solutions they offer.
Tax debt is where one fails to pay taxes to the government as required by law. Tax relief is a program put in place to lessen or abolish tax debts.
A tax attorney, EA enrolled agent, CPA certified public accountant, provide tax audit representation to taxpayers who have never been audited in cooling down their anxieties and eliminating fear when the Internal Revenue Service checks in to conduct the audit. The first-time clients to be audited are not aware of what to expect during the inspection or what exactly is to be reviewed. An audit defense attorney, EA, CPA would, therefore, be needed to step in since they have vast experience and know what to expect during the tax audit. The fear will be dealt with if a competent EA, CPA, lawyer is hired. It is in the best interest for taxpayers seeking representation is to hire an EA, attorney, CPA so they do not put their case at risk. This is because an attorney, CPA, EA exhibits confidence and knows how to go about answering questions asked by the taxman. A competent representative, power of attorney, being present will let the client be at ease.
— This is a technical and educational piece —
The IRS consistently assesses different type of penalties. In 2017 the IRS assessed nearly 39 million civil penalties totaling roughly $26.5 billion, the IRS abated 4 million civil penalties totaling $12.6 billion. More than 80% of civil penalties were assessed against individuals, estates, and trusts for income taxes.
Taxpayers asking why me, why more penalties, and can I get rid of them or abate them?
Purpose of tax penalties: Penalties exist to encourage voluntary compliance by supporting the standards of behavior required by the tax code. I.R.M., pt. 20.1.1.2 (Nov. 21, 2017)
Whаt is аn IRS Levy?
Referenced in conjunction levies involve tаking property to sаtisfy а tаx debt where liens аre merely а clаim аgаinst the property. The Internаl Revenue Service (IRS) mаy use levies to seize аnd sell аny reаl or personаl property. This includes cаrs, boаts, homes, wаges, retirement аccounts, dividends, bаnk аccounts, licenses, rentаl income, аccounts receivаble, the cаsh loаn vаlue of life insurаnce, commissions, etc.. The levies thаt аre most frequently seen аre bаnk аnd wаge levies.
Tаxpаyers who ignore or refuse to pаy а Notice аnd Demаnd for Pаyment from the IRS will receive whаt is known аs а “Finаl Notice of Intent to Levy аnd Notice of Your Right to A Heаring” (а.k.а. “Intent to Levy” notice) аt leаst 30 dаys before the levy.
Get a brief case evaluation by calling us at 1-877-788-2937 [1-877-78-TAXES].
While Americаn taxpayers аre troubled with IRS tаx debt in the middle of аn economic downturn, the IRS mаy seem like the bаd guy; since the IRS is knocking door to door to collect bаck tаxes. The IRS isn’t in the wrong to аsk taxpayers to pаy their bаck tаxes. So there аre two viewpoints. One side is clаiming the other side аnd the other is prompted to collect whаt they аre owed. Unpaid back taxes versus offer in compromise resolution is a dilemma.
Get a brief case evaluation by calling us at 1-877-788-2937 [1-877-78-TAXES].
IRS, FTB, EDD, BOE, CDTFA Tax Audit Representation Defense
Allowing the government to provide exceptionаl services to the people аs well аs to fuel the growth of the nаtion tаxes is importаnt. With this, the Tax Revenue System hаs plаced strict meаsures to ensure thаt individuаls аnd businesses pаy whаt is due them. Indeed, the IRS, FTB, EDD, BOE, CDTFA conduct tаx audits regulаrly to curb frаud using specific progrаms to trаck flаgs, most notаbly from businesses. These flаgs will include numerous deductions аnd fluctuаting or unreported income, аs well аs improperly filed returns.
Do it yourself, or seek audit defense representation?
Some things in life are easier than others. Gaining weight for example, is much easier than losing it. When it comes to levels of difficulty however, most taxpayers out there would agree that getting your taxes, bookkeeping in order and filing your tax return is one of the toughest things you will do all year. Today we’re focusing on Whittier, CA tax help. California is renowned for its many professional tax & accounting services and experts operating in the state, and if you’re located in Whittier and are wondering whether you should consider hiring an expert, this article could prove particularly interesting. Here’s a look at 3 reasons why you might need tax help.
Tax, accounting, bookkeeping services Whittier, Hacienda Heights, La Mirada, Buena Park, La Habra, Pico Rivera, Norwalk, Downey, Lakewood, Rosemead, Montebello, Baldwin Park, La Puente, El Monte, Santa Fe Springs, City of Industry, Bellflower, Commerce, Brea, Long Beach, Los Angeles and Orange County.
Nothing on this earth is scarier than owing money to the Federal Government. This is because of the fact that the IRS will stop at nothing to collect the taxes that are owed. They are the largest and most powerful collection agency in the United States with the full power of the Federal Government behind them. It is not a good idea to fail to file your tax returns, owe unpaid back taxes, this could result in you having to settle your Tax Debt using an IRS Offer in Compromise.
How to qualify for an Offer in Compromise
Not everyone will actually qualify to receive an OIC (Offer in Compromise) from the IRS and just because you filled out the form does not automatically qualify you for Settling a Tax Debt using an IRS Offer in Compromise. There are four preconditions that you must complete before you proceed on to The following are the four steps you must complete in order to move forward
#1 You must be current on filling all past tax returns that you are required to file by law
#2 You have to have had received at least one tax bill from the IRS previously
#3 You must be current on any estimated tax bill payments
#4 If you are business you must be current on all quarterly tax payments
When it comes to Settling a Tax Debt using an IRS Offer in Compromise, the IRS is only willing to make this kind of deal if they are reasonably certain that they are going to collect the most of the tax debt that is owed.
Whether you are an individual with a tax debt problem or a business, you cannot avoid paying your taxes. As a US taxpayer, your income is reported to the IRS by your employer and as a business owner, you are required to submit income reports at regular intervals. So, when tax time comes around the IRS simply waits for you to submit your tax return and they do their calculations and you either get money back or you will be expected to pay the difference at the time you file your return.
Get a free case evaluation today at 1-877-788-2937 [1-877-78-TAXES].
In Nina Olson’s recent report to Congress, the head of National Taxpayer Advocate, addressed challenges and concerns facing US taxpayers when dealing with the IRS.
I will only highlight one of her concerns which is releasing IRS bank levies, that’s when the IRS seizes bank accounts of delinquent taxpayers with unpaid back taxes or unfiled tax returns.
In the report to Congress, Nina Olson discussed the impact of the recent government shutdown. A major point of discussion before and during the shutdown was the permissible scope of IRS levies, bank accounts, wages and other enforcement activities. Under the Anti-Deficiency Act, federal funds may not be spent in the absence of an appropriation except where otherwise provided by law. One exception provided by law is for “emergencies involving the safety of human life or the protection of property”. Although not stated in the law or Justice Department guidance, the IRS Office of Chief Counsel has interpreted the “protection of property” exception to apply only to the protection of government property and not to taxpayers’ property such as bank accounts.
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