Tax Services
Tax Planning & Preparation
Tax planning and preparation form a winning combination for my successful individual and business clients. Whether you are an individual or a multi-tiered partnership, my extensive experience can develop tax strategies that take advantage of new tax laws and legislation. Tax planning is an essential element of the tax preparation process. By making tax planning part of your overall business strategy, you can use mine and my company's experience to obtain access to the most current new developments in the tax laws to minimize both your current and future tax liabilities. I will maximize your tax refund and get you the biggest tax refund possible, insure you get the deductions you are entitled to, and provide you with the biggest tax savings. I am dedicated to getting you the biggest return on your investment and helping you keep the most money in your pocket.
I use my own skills, experience and knowledge as well as the latest technology and research programs to prepare simple and complex individual income tax returns as well as income tax returns for corporations, partnerships, multi-member LLC's,sole proprietorships, trusts and non-profit organizations.
IRS Representation
During my 17 years of experience with the Internal Revenue Service as an IRS Revenue Agent, I have audited hundreds of individual, business and employment tax returns. I have investigated abusive tax schemes, performed compliance checks and examined the Audit Reconsideration requests, Offer-In-Compromise, and the Innocent Spouse Claim. I know IRS procedure and protocol. I have developed expertise in dealing with many federal and state taxing authorities and achieved a level of competence that can ensure my clients they are being properly represented before the various federal and state taxing agencies. I can do as little as explain what the IRS is wanting if you receive a letter from them and help you get the information together and, if necessary, act as your representative and assist you in tax audits, collection and appeals matters. I can expedite resolution at the examination level of proposed assessments through fast track mediation. I can help you avoid involvement in abusive tax schemes whether domestic or off shore.
Estate & Trust Tax Preparation
Effective estate and gift planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. I can guide you through the complex process of getting your financial affairs in order.
Sales Tax Services
Many of my clients are responsible for collecting and submitting sales taxes in many different vicinities. I can assist your company in the compilation of information and preparation of sales tax returns in an efficient and timely manner using Quick Books.
Consulting Services
Business Entity Selection
Choosing the form of entity of your business (e.g. "S" corporation, sole proprietorship, partnership, "c" corporation or limited liability company…) is a crucial decision that can have longstanding tax implications, positive or negative. I can assist you in evaluating the pros and cons of each entity type to help you determine the most advantageous form of business for your company.
Don't be fooled by individuals or companies that would have you believe that the creation of an LLC will help you evade taxes. The same holds true for those promoters of trusts that seem too good to be true. Just as in any field or profession there are unscrupulous attorneys and CPAs as well as other professionals that promote abusive tax schemes.
On my website under "Client Services" I have included a section entitled On-Line Tax Preparaton that will lead you to a company called Complete Tax. Use this source for more indepth explanations on the different entities and how they work. It will provide you with a wealth of information and can be a great reference for you. It provides answers to many of the questions you may have relative to taxes and tax planning. For as little as $9.95 you can prepare your own simple federal tax return, Form 1040, and have your return filed electronically free of charge.
Business Succession Planning
Effective coordination of the transition of your business to your successors is critical to ensure its continued success once you decide to remove yourself from the company's day to day operations. With a solid background in tax and other financial matters, I am fully qualified to address the complex issues of business continuation and can assist you in developing a strategically sound plan.
Accounting Software Selection & Implementation
With the number of computerized accounting software packages available for small businesses and individuals growing every day, selecting one that is right for you has become increasingly difficult. As accounting professionals, we are exposed to most programs through trade journals and actual use. Our experienced staff can help you choose and implement the system that best fits your needs. Limited to Quick Books.
Other Services
Notary Public
Bring me your important documents to notarize or schedule an appointment to meet at your home or office for notarization. I am available at your convenience seven days a week. Please note that Notaries are authorized to administer oaths and affirmations, take acknowledgments and to attest to photocopies. A notary always requires the personal appearance and proper identification of the signer at the time the notarization takes place. A notary is NOT authorized to give advice or to explain the document to be executed and cannot determine the type of notarial certificate that belongs on the document. It is important to keep in mind that a notary is not an attorney and cannot give advice regarding legal documents. Some unscrupulous notaries will post a sign in a storefront window that will indicate Notario Publico and charge hundreds of dollars for the same notarial acts in which some notaries are allowed to only charge $1.00. Notario Publicos in hispanic countries are attorneys and have far greater duties than their American Notary counterparts.
I charge a $1.00 Notary fee for my service plus the cost of mileage to and from your location. The mileage rate is based on the rates allowed by IRS and vary from time to time. In addition to the mileage fee, I charge an hourly rate of $35.00 which includes travel time. In other words, if it takes one hour to travel to your location and process the documents needing to be notarized, this will cost $25 plus the mileage to and from your location plus $1.00 for the Notarization. If I must travel 20 miles and the IRS mileage rate is 55 cent per mile, then the cost of the mileage is $11.00. In this example, the total fee would be $47.
Expert Witness Services
Pending or existing litigation can result in the need for a qualified professional to present his/her opinion to support or oppose evidence submitted to the court. Our level of competence allows us the opportunity to function as expert witnesses in such cases.
Certified Quickbooks Pro Advisor
I am a certified Quick Books Pro Advisor. I can assist you in determining the best Quickbooks version for your business and help you with setup, training and reporting.
Accounting Services
Bookkeeping/Write-Up
Meaningful, well-organized financial records ensure that your business operations will run more efficiently on a daily basis and are the foundation of a successful business. I am qualified to assist you with the day-to-day tasks associated with bookkeeping using Quick Books.
Cash Flow & Budgeting Analysis
A business can be profitable and still run into trouble due to cash flow issues. I can forecast and evaluate your company's financial condition, estimate financing requirements, and track cash-flow sources and uses.
Financial Statements
I can assist you in the preparation of your financial statements in accordance with professional standards, but express no opinion or any other form of assurance on the underlying information included in them. The financial statements produced can be a useful tool for management for making financial decisions.
Financial Forecasts & Projections
Forecasting is a necessity when trying to effectively manage and lead a business to profitability. From simple projections to complex financial modeling, our experienced staff can assist you in achieving your company's financial goals.
Miscellaneous
Online Tax Preparation
Bi-Lingual (Spanish and English)
I am fluent in Spanish and English and provide bi-lingual tax planning, tax preparation and representation services in both Spanish and English. My Spanish language skills were obtained while living in South and Central America as well as in Spain. IRS tax forms and publications are available in Spanish and I can file your tax returns in Spanish if this would be helpful to you.
Offers-In-Compromise
The IRS may legally compromise a tax liability owed based on "collectibility" and/or "liability". The Offer-In-Compromise is an agreement between you and the IRS that resolves your tax liability for less than the amount owed. The objective of the Offer-In-Compromise is to accept a compromise that is in the best interests of the government and the taxpayer. This helps promote voluntary compliance with all future payment and filing requirements. The offer is based on your particular facts and circumstances and not everyone qualifies. I can evaluate your situation and advise you as to whether or not you qualify. I know the tax law and IRS internal procedures. I will advise you on how to value your assets and liabilities, calculate your income and expenses, and advise you on what amount of Offer you should make. I will also advise you as to whether or not there is doubt that you owe the tax liability and assist you in preparing a written statement with the tax law describing in detail why you do not owe the tax liability. The IRS cannot accept a compromise where the liability has already been settled by a court. Submitting an offer does not automatically suspend collection activity. However, there are certain actions that can be taken to suspend collection if collection would result in a hardship.
As a former IRS Revenue Agent I examined the Offer-In-Compromise as to both collectibility and liability and made the determination as to whether or not to accept it. I am here to assist you in everyway possible in resolving your tax matter. Please contact me for any further assistance in this matter.
Tax Debt Relief
You can consult with me about your tax case. I can help you obtain a workable solution to resolve you or your company's liability to pay. I can provide assistance on tax levies, tax liens, wage garnishments, tax penalties and incorrectly assessed taxes.
TAX DEBT RELIEF SCAMS
Do not be fooled by practitioners who claim they can resolve your tax liability easily. Beware of claims that sound too good to be true. Beware of charges of thousands of dollars with no guarantees. Please don't fall for the scam of settling your case for "pennies on the dollar". Not everyone qualifies for a discharge of their tax debt, a small monthly installment payment or any type of settlement that is too good to be true based on the facts and circumstances of their case. I know the procedures and protocols that must be followed with the IRS.
There are, unfortunately, many cases of people being taken advantage of by practitioners and/or promoters of false claims who may not be aware of the procedures, rules and regulations that must be followed in settling tax problems or who are down right unscrupulous. I will study your case thoroughly and apply my knowledge and experience to the particular facts and circumstances of your situation. I will represent your case in an honest and direct manner. If I believe that you need to be represented by a tax attorney based on the facts and circumstances of your case, I will tell you so. There are some cases that IRS considers fradulent Non-Filing and/or fradulent tax returns. GUIDANCE FROM FORMER IRS EXPERIENCE I will provide you with guidance each step of the way and keep you informed on what is happening on your tax liability case (unless it is under criminal investigation). I will have no knowledge of any criminal investigation involved in your case. I can review your case and advise you as to whether or not it appears to be a case that might be considered to be fraud. I cannot represent you in such case. That would require representation by an experienced tax attorney who has dealt with this issue. My role and goal is to assist you in resolving your tax matters with IRS and to bring you into compliance. My fees for representing you are very reasonable and not dependent upon how much you owe. If you owe less than $10,000 and are in compliance, you can generally resolve the problem yourself with the cooperation of the IRS. However, I will be more than glad to assist you if you desire. If you owe over $10,000, I will help you for a flat fee regardless of whether you owe thousands, tens of thousands or hundreds of thousands of dollars. This flat fee varies on the complexity of your case. After reviewing your case, I will provide you with an estimate that includes an explanation of what will be required to settle your tax matter. There are no out-of-pocket or hourly fees or hidden costs. The additional charge will be incurred if in resolving your case, I must prepare Non-Filed tax returns or provide assistance out-of-the scope of my engagement agreement with you. My fee for preparation of tax returns is based on the type of return, whether individual or business, the number of schedules, workpapers and forms involved and the complexity of your case. Plus, of course, the number of returns which must be filed. The fees I charge are reasonable and ordinary. They are very competitive with other tax professionals and, in most every case, far more affordable. My flat fee includes an analysis of your case, tax law research, meetings and correspondence with IRS tax officials. INVESTMENT IN YOUR CASE I do need a small investment from you in your tax matter prior to proceeding with your case. Experience has taught me that if an individual is truly sincere about resolving their tax matter, they will make the effort to invest in their case. The person or business owner will take the time to provide the information required to work their case as well as make payments. I understand that there are many taxpayers who are experiencing a financial hardship. I offer payment by Visa, Mastercard, Discover Card and American Express. I offer monthly installment agreements. Additionally, you can pay by check, money order or cash. If we agree to an installment arrangement and you fail to pay each month as agreed, I will remove myself from your case. Unfortunately, in marriage and life, everything is not always "Happily Ever After". If that is the case, now what? In order to qualify for Spousal Relief, you must meet certain conditions. I have examined many "Innocent Spouse Claims" and been responsible for making the determination as to whether or not the spouse filing the "innocent Spouse Claim" met the criteria established by IRS. I will evaluate your case and advise you honestly as to whether or not you meet the criteria and assist you during the examination process.
Generally, both you and your spouse are each responsible for paying the full amount of tax, interest, and penalties on your joint return. However, you may qualify for relief from liability for tax on a joint return if (a) there is an understatement of tax because your spouse omitted income or claimed false deductions or credits, (b) you are divorced, separated, or no longer living with your spouse, or (c) given all the facts and circumstancs, it would not be fair to hold you liable for the tax. To request relief, you must file Form 8857 no later than 2 years after the date on which the IRS first attempted to collect the tax from you. For more information, see Publication 971 and Form 971.
In my experience, it is best to have a knowledgeable and experienced person like myself to represent you in this matter. I don't recommend going it alone or hiring an attorney or CPA who may or may not know anything about IRS procedure and protocol. In addition, not all CPA and attorneys are trained in taxation and charge hourly fees that are generally unaffordable to the average person in need of assistance. I can prepare and electronically file your employment tax returns (Forms 941, 944, 940 and 945) for you. The Form 941 is filed quarterly by April 30, July 31, October 31 and January 31. Form 944 is the Employer's Annual Federal Tax Return for the previous calendar year. This form is used if the IRS has notified you in writing to file Form 944 and pay any undeposited income, social security, and Medicare taxes. The Form 940, Employer's Anual Federal Unemployment (FUTA) tax is filed annually. If you file Form 940, Form 941, or Form 944 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step. The IRS Restructuring and Reform Act of 1998 allows federally authorized practitioners (those bound by the Department of the Treasury's Circular 230 regulations) a limited client privilege. This privilege allows confidentiality between the taxpayer and the Enrolled Agent under certain conditions. The privilege applies to ssituations in which the taxpayer is being represented in cases involving audits and collection matters. File Sharing is a secure, online document sharing application via the convenience of the Internet. You have access to critical files in a convenient and secure environment. By logging into your personal folder, files such as Quickbooks data, financial statements, and prior year returns can be uploaded and shared anytime, anywhere. GainsKeeper is an investment aggregation with cost basis tracking that automatically adjusts for wash sales and corporate actions (splits, mergers, etc.) GainsKeeper produces capital gains reports and provides analytical tools to minimize taxes and maximize returns. Schedule D data can be directly imported into your tax return. What is audit shield? Audit shield is an extended warranty program for tax returns. The program protects the taxpayer against software miscalculations and certain errors, by providing reimbursement of up to a total of $2,500 for certain penalties, interest or additional taxes assessed by the IRS on a qualifying federal tax return. Audit shield is a one time fee of $24.95 that protects a qualifying federal return for up to three years. Most individual federal income tax returns qualify as long as they are filed electronically. Returns that contain Schedules C, E, or F do not qualify for Audit Shield. Audit Shield cannot be offered in the following states: Alaska, Arkansas, Connecticut, Idaho, Maine, New Hampshire, North Dakota, Puerto Rico, Rhode Island and Tennessee. If you are a foreign person there are many tax aspects that may affect you. I can determine for you whether you are a resident alien, non-resident alien or dual-status alien and assist you in identifying gross income, effectively connected income, the applicable tax rate and how tax treaties affect you Let me help determine which tax return to file and prepare it for you. Have you experienced a foreclosure on a personal residence or cancellation of debt? If so, I can help you. I can explain to you the tax effects of having received Form 1099-A or 1099-C and assist you in the proper reporting of this on your tax return and identify whether or not your situation requires the filing of Form 982 for the cancellation of the debt. Are you behind in filing your tax returns? Would you like to receive refunds you might be due from prior years? Do you plan to file for bankruptcy and to discharge old tax debts? Have you received a notice from IRS? Are you under the threat of a wage garnishment, levy or lien?
One of the basic tenets of our tax system is the belief that all citizens must comply with the requirements to file returns and pay taxes. Taxpayers who willfully fail to file income tax returns pose a threat to tax administration and voluntary compliance. The non-filer population has been increasing throughout the decade. To address this concern, IRS has implemented a cross-functional National Non-Filer Strategy. The overall goal of this strategy is to bring taxpayers back into compliance.
IRS-CI (criminal investigation) IRS has developed resources to identify these individuals, and in the most flagrant cases, criminal prosecution has been and will continue to be recommended. Criminal Investigation will be developing. High impact investigations of non-filers in various occupations and industries, as well as those non-filers who file non-processable returns or employ frivolous arguments which the courts have repeatedly rejected are under investigation. I can help you get your non-filed returns filed and assist you in getting back into compliance. Contact me for further details on how I can be of service to you in helping to resolve your concerns and issues. I can file your individual or business returns both for the state and federal government. If you cannot pay the tax owed, I can assist you in settling your tax debt with IRS through the proper preparation and negotiation of an installment agreement or Offer In-Compromise. In some cases, collection action can be suspended until such time as you can enter into an agreement to pay the taxes owed.
Please don't wait until you are under the threat of a wage garnishment, levy or lien or being investigated for fraudulent failure to file. It is crucial that you seek honest counseling and not believe the false and misleading advertisements promoting "pennies on the dollar" and easy tax settlements. Many of my clients have already been to attorneys and companies that advertise nationally only to be scammed out of thousands of dollars with no tax debt relief. To settle your tax obligations, you must follow IRS rules and regulations as well as IRS procedures and protocol. I am dedicated to helping you and our government. A reasonable tax debt settlement can be achieved. To do so, the first step is to file your non-filed tax returns, settle your tax debts and get into compliance. Without getting into compliance, your tax debts cannot be settled or discharged.
There is no statute of limitation in cases of fradulent non-filing or on back tax returns that are fradulent. The IRS offers free tax return preparation for you by volunteers. IRS Certified Volunteers provide free tax assistance through the Volunteer Income Tax Assistance (VITA) program for persons with low-to-moderate income and through the Tax Counseling for the Elderly (TCE) program for persons age 60 and older. For details go to the IRS link I have provided to you on my website. If you qualify, you can have IRS prepare and e-file your return for free. For details please see the IRS link on my website. I require a retainer for my representation in any tax matter whether it is for audit representation or collection and appeals. Many cases take several months to resolve and often require the preparation of non-filed tax returns. My fees for the preparation of tax returns will vary depending upon the complexity of the return and the number of forms, schedules and worksheets involved. It will also depend upon how much time is involved in organizing and analyzing your records. Even after an interview with you, until I actually work on your tax return, I will not know how much is actually involved. Consequently, I require an upfront payment prior to beginning your tax return and will provide an estimate of what the final cost might be. I accept cash, check, money orders, and accept most major credit cards (Visa, Mastercard and Discover). In some hardship cases, payment can be made in three installments. Payment must be received prior to my providing you with the tax returns I have prepared for you. Please note, however, that the documents I have prepared for you will not be provided until payment is made. My fees for representing you during an audit of your return or in representing you during the Appeals process or on any debt relief action taken will vary depending upon the time needed on your case and it's complexity. In the event that I represent you before the IRS, I will require a retainer before working on your case. Whether I prepare your return or represent you before the IRS, I will require that you sign an engagement agreement as well as a "Power of Attorney" authorizing me to represent you on your tax matter. I will provide this form to you.
If you are paying me for my services and want to pay by check or money order, please make the check or money order payable to Harrison Tax, Accounting and Financial Services, Inc. I do not accept "post dated checks". Your tax returns can be prepared by telephone, fax, email or mail after reviewing your information. You can make an appointment or call and then drop off your tax information. I have found that after the initial telephone contact, a meeting is often not required and that the tax matter is resolved through email, mail and fax as well as telephone contact. However, I would like to meet with you in order to build rapport and confidence. Meetings can be scheduled for Monday, Tuesday, Wednesday or Friday and Saturday at your convenience. Thursdays the office is closed. While I prefer to meet with you at my home office, I am willing to travel to you if necessary. Plaese don't hesitate to contact me if you have any questions. Call me on 480 292-7604 or email me at colleen@harrisontaxaccounting.com. Needed from you are all your W-2s, 1099's, and income received. If you have a business, rentals, itemize deductions (long form vs taking the standard deduction) I will need these expenses as well as personal information such as SSN's and dates of birth on everyone on the return. If you are in doubt, bring it in. If you forget something generally you can fax, mail, email or call it in to me depending on the document needed. I am available Monday, Tuesday, Wednesday, Friday and Saturday and my hours are flexible. Please contact me to arrange a mutually convenient date, time and location to meet and discuss your tax needs. I charge a $75 fee for consultations which will be applied towards your case. For appointments call 480-292-7604 or email me at: colleen@harrisontaxacounting.com.
If you wish to fax information to me, please do so. My fax number is (480) 203-2963. I am an authorized IRS E-File originator and provide E-Filing services free of charge with your tax return preparation. This free e-filing includes federal and state tax returns as well as individual and business returns. Please note that I e-file current year taxes and not prior year taxes. I can prepare prior year taxes for you but these returns are mailed to the appropriate IRS address. I no longer offer bank products. PLEASE NOTE: I no longer offer RALS. Many tax refund options are available to you. You have the OPTION to obtain your tax refund for FREE through the IRS. IRS's DIRECT DEPOSIT generally takes 8-15 days as opposed to 3-6 weeks by paper check.
There are many tax refund disbursement methods available to you. Your refund can be deposited directly into your savings or checking account, by check, and cash card, if available. Another option available to you for a small FEE is the RAL which is offered to you by my company through Santa Barbara Bank & Trust. Using a RAL, you can receive your refund within 48 hours from the time I file your return. What are RALS? RALS are refund anticipation LOANS. These are short-term loans that are granted based on a taxpayer's anticipated federal income tax refund. The LOAN disbursement is made to YOU via a cashier's check. Before the cashier's check can be issued, you must present a valid picture identification and W-2s to the tax preparer and there must be an acknowledgement from the IRS that confirms your social security number and your last name. You must be at least 18 years old. The return must be eligible to e-file. The refund must be at least $300 and greater than the fees to be deducted. The income must not be all from a business. Additionally, there must be a tax refund anticipated by the taxpayer on his tax return. If after filing the return the Internal Revenue Service denies the refund, the loan must be repaid by the taxpayer. If for any reason, you are not entitled to a tax refund (possibly because you owe back taxes or for other reasons which include, but are not limited to, other government debts, child support, that have not been paid), you will then be responsible for paying back the loan granted to you by the bank. Many people have good credit but need a loan and wish to get their refund immediately upon filing their return and not having to wait the two to six weeks it generally takes for a refund of their overpaid taxes from the Internal Revenue Service. Many people expecting an earned income credit (EIC) may wish to get their refund right away. This RAL service is provided to you by my firm through the Santa Barbara Bank & Trust SBBT refund programs available from the middle of January through to the end of April. If you are facing a hardship due to the garnishment or proposed garnishment of your wages or faced with a bank levy or lien, help is available. With the proper documentation from you, I can stop any collection action on your case. You don't need an attorney or CPA to prevent these actions from occuring. However, you must respond timely to notices sent to you in this regard from IRS and you must follow proper IRS procedure. Ignoring these notices or moving to another address will not stop collection action. IRS can send the notice to your last known address and has no further responsibility in trying to track you down and hand deliver the notice of intent to levy or to enforce collection action. In some cases, property seized (cash, etc) can be returned to you. Your hardship must be supported by documented evidence. After collection action is temporarily suspended, there is much more work to do on your case. Proper procedure and protocol must be followed in order to settle your tax matter with IRS. This could take several months. An audit reconsideration is generally requested if you disagree with the tax examination report and tax assessment and have additional information to support your case that wasn't available at the time of the audit of your return. As an example, in some cases, IRS has prepared a tax return for you because you have failed to file your own individual or business tax return. The tax assessments made by IRS in such cases are prepared based on information provided to IRS from third parties such as W-2's, 1099's, 1098's and so forth. The substitute for return (SFR) that the IRS has prepared has a much higher tax liabiity than a tax return you file. This is because you can file your return and include all the deductions and credits you are entitled to. You could have dependants, itemized deductions and credits the IRS is not aware of. If you haven't filed and to do so would lower your tax assessment, consider the audit reconsideration which can lead to a reduction in your taxes, penalties and interest. I can prepare the appropriate tax return or returns for you and handle the audit reconsideration on your behalf. In general, tax debts in excess of $10,000 require the preparation of Collection Information Statements for Wage Earners and Self-Employed Individuals and if you are a business, the same basic income and expense, assets and liability reporting is the same. I am an expert and quite experienced in this regard and can assist you in preparing your financial information in a manner that accurately reflects your financial facts and circumstances and will result in an equitable, reasonable installment agreement or debt settlement. Frivolous requests for installment arrangements are not accepted by IRS. I know what is acceptable and what is not. Additionally, I know how IRS determines your actual net worth, assets, liabilities and financial position. IRS has access to your credit report and public records. IRS will know whether your statements are factual or frivolous. There are no tricks or short cuts and the advertisements which are common place about pennies on the dollar are more fiction than fact. They are misleading, confusing and in some cases fradulent. In order to settle your debts, you must first get into compliance. Part of that compliance is filing your delinquent tax returns. No matter if you hire an attorney or CPA, there are no short cuts or "deals" on frivolous arguments that will settle your case. IRS requires certain procedures to be followed and certain information to be provided to substantiate your financial hardship and circumstances. I am a taxation expert and know IRS procedure and protocol. I am also an expert in financial analysis and will save you a considerable amount of time and money in this regard. In certain cases, I can request a Collection Due Process for your tax matter and work with the Appeals Settlement Officer to resolve your case. I will represent you directly with the Internal Revenue Service relieving you of the stress and pressure that you might experience in representing yourself. MISLEADING TAX DEBT RELIEF ON TV AND RADIO ADVERTISING
With the flood of ads on television, radio, internet and other media, knowing who to trust or what's involved can be as difficult as the tax debt itself. Tax attorneys and certified public accountants (CPAs) are often the first thought of. But there is a third, better option for tax resolution, the ENROLLED AGENT.
CPAs and attorneys both have their strengths and are viable sources of assistance. However, they are often very expensive and rarely specialize in taxation and often do not understand IRS procedure and protocol. In many, if not most cases dealing with tax matters, the Enrolled Agent, particularly one with extensive prior IRS examination experience is the ideal choice. It is the ideal choice for many reasons. The tax attorney, sometimes called a tax debt lawyer, is skilled in legal matters that deal with taxes. If you are going through the courts to handle a tax matter, this may be your primary option. However, the vast majority of tax matters can be easily settled out of court even after the 90-Day Notice of Deficiency is Issued and/or tax assessments made. IRS prefers to settle out of court and usually does. Attorneys may have you believing otherwise. Sometimes the cost of the attorney far outweighs the actual tax debt. An attorney is not needed for tax debt relief, hardship, the offer-in-compromise, collection, examination or Appeals representation or to negotiate an installment agreement. The attorney is not needed for Innocent or Injured Spouse protection. Some forms of legal investigations, criminal investigations and major arbitration can only be handled by tax debt attorneys. However, in the majoriy of cases an attorney is not necessary and much too costly to consider. You don't need a tax attorney just because your tax debt is in the hundreds or thousands of dollars and/or you are a Non-filer and have failed to remain in compliance.
The CPA (Certified Public Accountant) is a master in financial records and in some cases tax returns. They are useful for financial advise and financial planning. They are sometimes skilled in dealing with audits and can be a good alternative to a tax attorney for matters outside of court. Despite the CPAs knowledge of finances and ability to prepare tax returns (usually using professional tax software), CPAs are often less savy with IRS procedure when it comes to collections. They are legally able to represent tax payers, but most CPAs do not base their careers around negotiaion with the IRS. Most do not want to handle the day-to-day client service involved in having a situation rectified with the IRS. Like attorneys, they typically bill by the hour costing you thousands of dollars. Most CPAs have bookkeepers prepare their client's books and records and use the information prepared by these bookkeepers to prepare your tax returns.
The tax attorney often uses the services of both a paralegal and the services of a CPA. Due to all the assistance hired or contracted out, the hourly fees can be outrageously costly and unnecessary. Plus, there is the added overhead cost that both attorneys and CPAs incur promoting an "image" that includes expensive furnishings, equipment, office space, staff and marketing. The person who is already experiencing a major financial hardship is often driven by the misleading advertising to spend a small fortune on the services of an attorney or CPA. Often, the services provided are not cost effective and little is accomplished on behalf of the person who is desperately seeking help.
Many of my clients come to me after having been extremely disappointed and taken advantage of by misleading advertisements and unscrupulous professionals.
Due to my experience, education and dedication, I have been totally successful in every case. I have succeeded in negotiating reasonable installment agreements, offers-in-compromise, stopped wage garnishments, bank levies and liens, reduced tax assessments, penalties and interest, brought individuals and businesses into compliance and relieved individuals of their tax concerns and fears as well as settled their tax problems. I accomplished this when other professionals could not or did not. I handled all correspondence directly with the IRS on my client's behalf. They did not have to deal with the IRS. CPAs and attorneys are qualified by the IRS by their designations. They don't have to take an exam beyond that of the CPA or the bar exam. They are not tested on taxation or IRS procedure and Protocol. CPAs and attorneys receive their license to practice from the state and often cannot practice in any other state without having passed that particular state examination.
ONLY Enrolled Agents are granted the right to practice by the U. S. government; attorneys and CPAs are licensed by states. While all tax representatives fall under the same Circular 230 IRS code of ethics, rules for CPAs vary by the state from which their license comes.
No one understands IRS collection better than the one whose job it was to enforce it. While forms and laws are fairly common to all tax professionals, gaging how the IRS will perceive requests and knowing the time spans involved is a plus in negotiation. As a former IRS Revenue Agent in the Examination and Compliance Division of IRS, I have held a position interpreting and enforcing the U. S. tax code in a direct manner and on a daily basis. No one understands IRS procedure and protocol better than the one whose job it was to enforce the tax laws. I have worked 24/7 on behalf of my clients in order to bring them into compliance in a timely manner so that their tax matters can be resolved quickly and cost effectively. I work with tax resolution day-to-day and provide upfront quotes and fixed rates. There are no surprises relative to my fees and my fixed rates include meetings and correspondence with IRS, counseling, tax research, analysis and preparation of installment areements, innocent spouse claims, the offer-in-compromise and relief of debts owed to IRS through hardship and suspension of collection action. My fees for the preparation of Non-filed returns vary depending upon the type of return, the number of forms and schedules and the complexity of the case. Let me handle your small business's payroll using Quick Books. Contact me for details. There are a large number of abusive tax schemes. The following are just a few:
Foreign & Domestic Trusts Abuse in this area involves foreign and domestic schemes that are promoted as a means to "protect assets", to evade the payment of income taxes, or to utilize fraudulent trusts as a primary means to evade tax. The promoters of these schemes target professionals such as physicians and dentists, small business owners and high-end wage earners. Abusive Return Preparers Many people shop around for a tax preparer that will provide them with the most "deductions". They often believe that the preparer is more knowledgeable because more deductions are found and placed on the tax return resulting in far less taxes and in some cases even a refund. Unfortunately, some preparers are unscrupulous or incompetent. The IRS is using numerous techniques to identify preparers engaged in fradulent activity.
Beware of the promoter who claims that the new deduction is so new that your tax professional doesn't even know about it. Some unscrupulous promoters use this phrase to discourage you from seeking professional advice about new tax laws. However, if there is a new law that could reduce your taxes, a legitimate promoter should encourage you to seek a second opinion. You should even ask for a reference just in case your tax professional really doesn't know about it yet. If the investment cannot stand the scrutiny or the review of an unbiased third party, it is probably one you should avoid.
Never Pay Any Taxes Again Don't withhold taxes from your wages. Promoters may suggest that you, as an employer, NOT withhold federal income tax or employment taxes from wages paid to your employees. This scheme is based on an incorrect interpretation of the tax law, the courts have rejected all variations of this scheme. Deduct the Cost of your Personal Residence, or Deduct the Cost of Your Child's Education Participants in this scheme incorrectly claim that non-deductible personal living expenses can be claimed as deductible business expenses by transferring ownership of assets or income to a trust, partnership, or other entity. Any investment scheme that claims you can deduct these types of expenses should be considered highly questionable. The IRS Doesn't Want you to Know About This If there are legal deductions that can reduce your taxes, the IRS wants you to know about them and use them. The mission of the IRS is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.
IS IT TOO GOOD TO BE TRUE? Is the tax promotion asking you to - .Underreport my income? .Intentionally omit income? .Overstate the amount of my deductions? .Keep two sets of books? .Make false entries in my books and records? .Claim personal expenses as business expenses? .Claim false deductions? .Hide or transfer assets or income?
If you answered YES to any of these questions, then you are probably involved with "AN ILLEGAL TAX AVOIDANCE SCHEME". The IRS prosecutes the preparers of fraudulent claims, and participating taxpayers could be subject to civil and/or criminal tax penalties. Promotors of abusive tax schemes will often have you create multiple entities to disguise, divert and dilute income. Be wary of schemes that use multiple levels of entities with no apparent business purpose other than concealing the true ownership of assets and income. There might be valid reasons for multiple entities. In my experience, however, there usually is not a valid reason. The reason has often turned out to be a means to disguise income and evade taxes. Abusive Trusts Trust schemes may charge a fee for "trust" packages. The fee enables taxpayers to have trust documents prepared, to use foreign and/or domestic trustees as offered by promoters or to use foreign bank accounts and corporations. If a trust is legitimate, ownership of the trust assets is completely separate from your control and benefit. If you have questions on abusive tax schemes contact the IRS at 1-800-829-1040. To report possible tax avoidance schemes, call 1-800-829-0433. I am a Certified Quick Books Pro Advisor and can assist you in determining the best version of Quick Books for your business. Please contact me for additional services provided using Quick Books. If you are worried about the contractors you hire and must provide to them the Form 1099-Misc and are not sure how to handle the issue of matching their tax identification numbers (TINS) to their names and addresses, I can help. I can assist you by doing the TIN Matching for you. You must provide the social security number or employee identification number along with the contractor's name and address. I will then check for TIN Matching. The IRS does not provide anyone's or any company's TIN. The IRS only advises as to whether the TIN and name provided to them match. The social security number (SSN) or the employer identification number (EIN) are not given to anyone due to disclosure laws. However, the TIN Matching process can alert you to whether the name and number provided to you matches. If it does not, you must send the contractor a Form W-9 which is known as a "b" notice. If this request for the TIN does not result in your obtaining the correct TIN of the contractor, then you are required to "back up withhold" approximately 28% of the payment you would otherwise have given to the contractor. If you do not comply with this regulation, you could be subject to penalties. Please contact me for further details. It is a myth that tax debts cannot be discharged in bankruptcy. Old tax debts can be discharged. The tax debts that cannot be discharged are recent debts, trust fund taxes, debts from unfiled tax returns (the IRS filed on your behalf but you did not file.) If you are qualified to file for bankruptcy protection, I can work with your attorney and directly with the IRS to bring you into compliance on your tax matter so that certain prior year tax debts can be discharged in bankruptcy. Please contact me for further details. Many self-employed individuals as well as contractors (Form-1099 Misc recipients) need assistance in determining their self-employment taxes. These taxes are your social security and medicare taxes. They are in addition to your federal and state taxes. Diiferent rules and procedures apply in determining self-employment taxes as compared to your federal and state taxes. Let me assist you in the determination of what you should be paying in taxes on a quarterly basis. These quarterly estimated tax payments can be made online directly with the Internal Revenue Service. Compliance covers many different areas of tax law. Please contact me for details. The settlement of tax matters depends upon the facts and circumstances of each case. Not everyone qualifies for a reduced settlement on their tax debt. Many inividuals and businesses can only settle their tax debt based on an installment arrangement that is reasonable and acceptable to IRS based on the merits of the case. While your neighbor or friend or someone you've heard about my have had their taxes settled for pennies on the dollar, this is very unusual and not typical of the way IRS settles tax debts. It does not matter whether the person representing you is a savy attorney or experienced CPA. All tax matters must be handled in a reasonable and non frivolus manner, supported by documentation and according to the facts and circumstances of each case. IRS procedure and protocol must be followed. I will assist you in preparing financial statements that accurately reflect your financial circumstances. As an Enrolled Agent, I am authorized by the federal government and the state governments to represent you on your tax matter. Before the tax is assessed and after the audit process, many tax settlements are made in Appeals. This is true because the IRS wants to settle the tax matter in the best interests of the government and the taxpayer. There are many factors leading to why you should consider an Appeal should you disagree with the Examiner's findings. If the audit determination is based on a tax law issue, it can be elevated to Appeals and the Appeals Officer will take a fresh new approach to the issue. If the assessment is based on the fact that the Examiner disallowed expenses because no substantiation or insufficient substantiation was provided, it is unlikely that Appeals will accept the case. If you have new information that was not presented earlier, the case may go back to the Examiner for review and be rejected by Appeals. Certain audit findings merit going to Appeals, others do not. To have your tax matter sent to Appeals, you generally must go through the Examining Agent that conducted the examination. That Agent will then forward your case to Appeals. If you do not Appeal the Examiner's findings, the case may be forwarded by the Examining Agent for issuance of the 90-Day Statutory Notice of Deficiency. At this point, you can still resolve certain tax law disputes or issues. Prior to going to court, you have an opportunity to settle your case. Expensive representation is generally not warranted. Certain exceptions, of course, may apply, such as if fraud is suspected. In most cases, effective and skilled representation is needed and an Enrolled Agent is definitely qualified in this regard. If you are an employer and fail to pay over to the IRS the employment taxes owed, you may be subject to a penalty known as the Trust Fund Recovery Penalty. I have been very successful in having penalty assessments abated for reasonable cause. IRS return information exists for every tax paying entity. Depending upon your situation, you may need to review your IRS tax transcripts. There are various transcripts available from IRS that will reveal the information IRS has on you as an individual and also on your business. There is the Individual Master File (IMF), the Business Master File (BMF) and the Information Report Program (IRP Report) that the IRS uses to calculate a substitute for return. IRS legal information is also used to compute your liability. I am an expert in interpreting and analzying these account transcripts and can additionally order them for you. Depending upon your financial hardship which must be supported by documentation, I can recommend that your tax matter be placed into "Currently Not Collectible status". This means that collection activity is suspended temporarily. At a later date when your financial circumstances change, other arrangements can be made to settle your tax debt. This status is not for all and the taxing authorities require proof of your financial hardship to substantiate such a claim. If after going through your current monthly income and expenses and applying these figures to the national and local standards, the net income is zero or negative, you might qualify for a currently "not collectible status". While your case is in "Currently Not Collectible status", interest and penalties continue to accrue. A lien will also be filed against you in order to protect the government's interest. The taxing authorities will check on your financial status on an ongoing basis to determine if anything has changed. You are still required to file your tax returns if you have a filing requirement and are still obligated to pay taxes on your current income as applicable. You may have to reapply for "Currently Not Collectible Status" after a three year period. This means you must again provide proof of your income and expenses and be evaluated by the taxing authorities on your hardship. In some cases, if your financial situation has not changed, the statute of limitations on collection may expire. In such case, the debt will be wiped out. The taxing authorities can check your financial status during this period of not being collectible on a yearly or bi-yearly basis. Innocent Spouse Claims
Employment Taxes
Client Confidentiality
File Sharing
GainsKeeper
Audit Shield
International Tax Issues
Foreclosures-Tax Reporting for Financially-Stressed Individuals
Non-Filers (Getting into Compliance)
VITA - Free Tax Preparation by Volunteers
Free tax preparation and e-filing
Payment Options
How Your Return is Prepared
Information Needed From You
Appointments at Your Convenience
Free E-Filing
Bank Products Offered
Refund Anticipation Loans (RALS)
Wage Garnishments, Levies and Liens
Audit Reconsideration
IRS Installment Agreements
Collection Due Process
Differences Between Attorneys, CPA's and Enrolled Agents
Payroll
Abusive Tax Schemes
Reporting Fraud
Quick Books Pro Advisor
TIN Matching Form 1099-Misc for Small Businesses
Old Taxes Discharged in Bankruptcy
Self Employment Taxes
Estimated Taxes - Quarterly Payments
Compliance
Negotiation of the Installment Agreement
Collection Information Statements for both Individuals and Businesses
Federal and State Audit, Collection and Appeals Representation
Appeals
Trust Fund Recovery Penalty
Penalty Abatements
IRS Tax Account Analysis
Currently Not Collectible Status (Status 53) IRS Relief