Avoid IRS penalties with assertive strategies

Posted Leave a commentPosted in Affordable Care Act, IRS, Taxes

Many of the penalties that IRS asserts on individual taxpayers and small businesses can be avoided with the right strategic response. Some or the penalty waiver procedures are straightforward, while some are not. Yet the strategies are not always apparent and sometimes even seasoned tax professionals are surprised by the favorable results. Tax penalties that […]

Annotated IRS Collection Statutes

Posted Leave a commentPosted in IRS, Taxes

This is an annotated copy of IRS statute controlling collection actions. 8.21.5 Collection Statutes Manual Transmittal November 17, 2015 Purpose (1) This transmits revised IRM 8.21.5, Collection Statutes. Background This IRM provides guidelines for verifying, updating, and monitoring statutes on collection cases in Appeals. Material Changes (1) Changes to this IRM are as follows: IRM Section […]

What to do if you owe money to the IRS: 4 steps to resolution

Posted Leave a commentPosted in IRS, Taxes

There is a clear and direct 4 step path to resolving IRS tax problems but you must follow this path in the proper sequence. An interesting discussion came up yesterday among tax professionals that indicates a need for us to communicate more effectively on the basic steps of resolving an income tax problem. By “income […]

Sample tax representation agreement

Posted Leave a commentPosted in Accounting, IRS, Tax Planning

I occasionally post sample current or previous engagement letters online. This one was an engagement letter/email used for tax representation services.     IF AFTER READING THIS YOU AGREE TO ALL THE TERMS, PLEASE RESPOND TO THIS EMAIL AND TYPE “AGREED“. PLEASE CALL WITH ANY QUESTIONS.   SUMMARY  OF THIS EMAIL Documents included: 1) Privacy […]

#IRSFails

Posted 1 CommentPosted in IRS, Taxes

In this blog I’ve occasionally written about the extraordinary level of difficulty I’ve experienced resolving clients’ tax matters with IRS. Most recently posts like “Fun and Games With the IRS”  and  “Today’s adventures with IRS” attempt to document serious service deficiencies in a lighthearted and almost comical blog post. Today CPA Trendines covers the same […]

IRS launches audits of bitcoin holders

Posted Leave a commentPosted in Accounting, Banking, cryptocurrency, IRS, Taxes

Bitcoin is the largest and oldest cryptocurrency so it makes sense that IRS would take enforcement action against these account owners first. Some owners may have heard incorrect information that their transactions were not taxable or that IRS could not get their account information. Both of these are false. IRS announced last year that it […]

IRS Security Upgrade for 2018

Posted Leave a commentPosted in Accounting, IRS

Beginning last month and concluding yesterday, the IRS e-services system went through a dramatic increase in security. The online security upgrade is accompanied by a telephone service security upgrade that went into effect last week. This is the system that tax professionals like me use to address client issues involving the IRS. I wrote about […]

An accountant’s telephone call to IRS

Posted 2 CommentsPosted in Accounting, IRS, Taxes

subtitle: Why IRS representation can be slow and expensive Today I called the IRS Professional Hotline, waited 25 minutes, then got disconnected by live person picking up the call. (This is a common response in peak call time). I call back to the IRS Professional hotline, wait 20 minutes, reach a live gent, confirm taxpayer […]

Legislative History as Tax Authority: an Obsolete Concept?

Posted Leave a commentPosted in IRS, Legal, Tax Planning, Taxes

Early in my professional tax career I learned about the concept of legislative history as tax authority. In fact a large part of any legal education is learning to evaluate evidence based on its qualitative characteristics, statutory consideration or local rules. In tax law this hierarchy of authority becomes the logical and legally supportable basis that […]