Call Today: 877-825-1179

La Porte Chamber of Commerce
VERIFIED Seal Success Tax Relief, LLC BBB Business Review    

IRS Audit

What NOT to Do If the IRS Claims You Owe Back Taxes

What NOT to Do If the IRS Claims You Owe Back Taxes

By on Aug 17, 2016 in IRS Audit | 0 comments

When it comes time to filing taxes, many taxpayers hope to be up to date on their finances and have them reported accurately. What people may not always expect, is to receive a letter stating that you owe back taxes. While there are some people who might not fully understand the consequences of mismanaging taxes, tax evasion can equal potential jail time. So, Success Tax Relief, a tax relief firm in LaPorte, Texas is offering some helpful advice about what NOT TO DO if you owe the Internal Revenue Service (IRS) back taxes. Do NOT Avoid Speaking to a Professional – Failing to consult with a professional about this could put you in a difficult place and can potentially put you in further debt with the IRS. Having a professional speak directly to the IRS on your behalf will help your case. And if you feel that the IRS representative is not conducting him or herself in a professional manner, you have the option to speak with another representative or superior. You can also hire representation if you choose. Do NOT Avoid Notices – When you are receiving notices through the mail by the IRS, do NOT ignore them. Remember, the IRS has the right to garnish your wages and even worse—put a lien on your property to collect what you owe them. Address these notices quickly to make things right. Do NOT Go Unrepresented – As you proceed communicating with the IRS, it is highly recommended that a tax attorney is present. There may some terms that you might not understand. Consider professional representation that is completely dedicated to you and can even assist in helping you and the IRS come to an affordable payment agreement. Do Not Avoid Filing a Return – When it comes to back taxes, some people think that because they cannot afford to pay, they should not file at all. If this happens, there is a financial penalty that comes along with this kind of thinking. This penalty can go up to 25%, and once you decide to pay the bill, it will come with additional interest until it is paid in full. Do NOT Rush to Pay the Bill – Sometimes what people...

Read More
Is an IRS Audit Ever Considered “Normal” or “Routine”?

Is an IRS Audit Ever Considered “Normal” or “Routine”?

By on Jul 5, 2016 in IRS Audit | 0 comments

Is an IRS Audit Ever Considered “Normal” or “Routine”? For the Internal Revenue Service (IRS), an audit is a normal routine for them. In fact, it could be said that they’re not doing their job right if they’re not issuing audits. For the recipient, it may not be such a normal routine for them, because let’s face it, how many people do you know have been audited? Whether it’s none, a few, or many—it doesn’t matter to the IRS. Some audits are random and others aren’t. For that lucky recipient, it’s anything but routine if he or she isn’t prepared. Intentional and Random Audits The IRS conducts random audits through a computer screening selection that is based on a statistical formula. You might say that audit screenings are somewhat like a lottery; only in this case, you probably wouldn’t want to be the selected “winner” here. So in this case, any taxpaying citizen can get audited. Intentional audits are nothing that’s personally vindictive on the IRS’ part. It’s their job to make sure that all annual filings are correctly submitted and that there’s no misinformation that would cause a miscalculation of the country’s overall budget. Looking at it from this perspective may give you a better idea of the seriousness of why the IRS must conduct audits. There are a couple of ways intentional audits are done: Document Verification Something as simple as making sure that the name, address, and especially the social security numbers in your tax filing matches what’s on the W2 or 1099 Form can make all the difference between getting your tax return on time or delaying the filing process and worse, getting audited. If the IRS finds that there’s too many inconsistencies in your tax filing, they may require a closer look at your financial records and this could date back anywhere from 3-7 years, possibly even more. Related Document Issues When you hire a tax preparer to file your annual taxes, you are entrusting that person/business to carry out a service with your private documents. If something is not 100% legit with their business, the IRS may contact you just because they’re auditing that business. Even if you happened to be in partnership...

Read More
Who Should You Hire for IRS Tax Audit Defense?

Who Should You Hire for IRS Tax Audit Defense?

By on Jun 14, 2016 in IRS Audit | 0 comments

In the same spirit of how someone arrested shouldn’t defend themselves and hire an attorney to represent them, so it should be with dealing with a tax audit. When it comes to tax issues, there are several laws that you may not know about. Reputable and experienced tax relief professionals are educated and knowledgeable in the areas of tax laws and can help you with this. So if you have been audited by the Internal Revenue Service (IRS), you have the option to manage the audit yourself and speak directly to IRS representatives. However, you’ll be much more empowered if you hire tax professionals. What Tax Professionals Can Do for You We understand that there are some people who prefer to take matters into their own hands, like maintain the oil in their car, keep your own books, and…doing their own taxes—and that’s perfectly fine. If you have the talent and skill to provide a service to yourself and save money, then that’s great! However, many people have found it much easier to outsource these tasks, and in doing so, have found that they get more valuable information this way. In a Forbes article, Kelly Phillips Erb wrote that the IRS estimated that “you’ll need 16 hours to devote to record keeping, tax planning and completion for the average federal form 1040.” This does not include entrepreneurs who must account for their business finances, and those who might need another form other than the 1040. These 16 hours are also under the assumption that everything will go smoothly. And if you’ve ever had any experience with tax filing, you know that every year, changes happen. Whether it’s the tax laws themselves, something personally, or professionally, new employment, unemployment, marriage, new family member, new home, or the opposite—it all affects your income in some kind of way and that needs to be accounted for—with supporting paperwork.  Gathering Supporting Documents Sometimes, gathering important government documents can take some time, even with access to the Internet, there are certain processes that need to be followed in order to attain sensitive documents. Having a tax representative can expedite this process significantly, but you need to make sure you hire the right one. When...

Read More
Why You Shouldn’t Panic if You Get an Audit Notification Letter

Why You Shouldn’t Panic if You Get an Audit Notification Letter

By on Apr 12, 2016 in IRS Audit, Tax Problems, Tax Tips | 0 comments

Getting an audit notification letter from the Internal Revenue Service (IRS) doesn’t necessarily mean that you are in trouble. At best, you’re put at an inconvenience. At any rate, you definitely shouldn’t panic. People have survived IRS audits and so can you!  What’s the Reason? No matter what the reason is for getting audited, as long as you keep your tax records organized, you shouldn’t have any reason to worry, or take it personal for that manner. Of course, money matters may feel like a personal thing, but it’s important to distinguish the difference between complying to your tax responsibilities and dealing with the consequences when you don’t. Your Duty as a United States (US) Citizen As a US citizen, you are obligated by law to pay your taxes. If you don’t, you will have to pay a penalty. What most people don’t always take into consideration is that in addition to paying money, you’ll also have to pay the price of time, which can be just as valuable. The best way to prepare for an audit letter, should you ever get one, is to have all of your tax filings and supporting documents available for the IRS to review. Doesn’t the IRS Already Have My Tax Information? The answer is ‘yes’. They have all of your tax information on file, but they need to be able to verify that it’s legit. What they have on file is what you’ve given them. So, the only way that they can verify that it’s all accurate is to compare their records with yours. When the tax filing season rolls around, all the IRS wants are the forms that report your earnings and expenses. The only supporting documents they generally need are the W2’s, 1099, and any other official IRS documents that summarizes the amount of earnings that were issued to you that tax year. It is your responsibility to make sure that what you are reporting is true and accurate. This is easy to prove by just keeping a record of all the supporting documents used when filing your annual taxes. For instance, keeping your receipts, invoices, legal identification, and any record that justifies the information in your tax filing needs...

Read More
How to Avoid Triggering an IRS Audit

How to Avoid Triggering an IRS Audit

By on Jan 21, 2016 in Debt Relief, IRS Audit | 0 comments

The holidays are officially over and the occasional procrastination, dread, and fear of being audited by the Internal Revenue Service (IRS) is upon us now! You may already be receiving 1099 forms and other type of documents that instruct you to save for tax purposes only. For some, the only tax document that people are waiting for is the W2.  What is a W2?  The W2 form is document that notes the amount of money that has been dispersed to you or on your behalf from a person or company during a full calendar year. The purpose of this form is to help the IRS not only keep track of how much income a household brings in, but to also oversee how much money a business is writing off as an expense.  The amount of money that a household is declaring as income must be equivalent to the amount that the business or businesses are recording as capital expenses. If the amount does not exceed $300, then the business is not required to issue a 1099. However, the recipient of the funds is still required by law to report the income. When Things Don’t Add Up  When these amounts don’t add up, that serves as a red flag to the IRS indicating that something is wrong and possibly illegal. Whether you as a United States (US) taxpayer receive multiple W2s and/or 1099s from different employers, it is the IRS’s job to find out if it’s accurate. It might take anywhere from one month to possibly even years from the original date of filing for them to verify it, but when they do, it gives them a reason to be suspicious of other tax filings. This is why it is always recommended to keep annual filings on record from anywhere between 5-7 years. All Income Must Be Reported. No Exceptions!  At any rate, making sure that you report all of your income, even it you haven’t received a 1099 is crucial. There are some businesses that prefer to pay “under the table,” meaning issuing wages in cash. The misplaced logic here can often be that cash is not as easy to track as writing a check or transferring electronic funds....

Read More
How to Appeal an IRS Decision Letter

How to Appeal an IRS Decision Letter

By on Dec 10, 2015 in IRS, IRS Audit, Tax Problems | 0 comments

In most cases, when a taxpayer gets audited, the process can last anywhere from months to years. It all depends on the case as each taxpayer’s situation is different, some being more complicated than the others. At any rate, it is safe to say that anyone who has or is going through an auditing process just wants the entire ordeal done and over with, including the Internal Revenue Service (IRS)! Contrary to popular belief, the IRS is not interested in engaging in drawn-out auditing processes. They are just as interested as the taxpayer in resolving each person’s case as quickly as possible. The IRS is in the business of making sure that the nation’s finances are accounted for. This means assessing every United States (US) taxpayer’s annual filings and making sure that they are correct. If for any reason it isn’t, that taxpayer can be subject to getting audited.  What Does Being Audited Mean?  Receiving an audit letter can mean several things and not all of them are necessarily bad. A person can receive an audit letter just because information was entered on his or her annual tax filings incorrectly. There is also a computerized selection with an algorithm programmed to randomly select taxpayers to undergo the auditing process. There are the more obvious reasons why one might receive an audit letter: Not filing his or her annual taxes and even worse, neglecting to pay his or her annual taxes. These two offenses are issues that will only complicate a case resulting in paying more money to the IRS due to additional interests and penalty fees if the matter continues to be ignored. The Auditing Process  If ever one were to receive an IRS audit letter, it is best to understand that the auditing process depends on how organized that taxpayer is. It is always recommended to keep at least 3 years of tax filings along with the related documents on record. Additionally, one should communicate with the IRS as often as possible to keep them abreast of any changes and to verify what they have on file is accurate.  What to Do if You Disagree with the IRS’s Decision  If for some reason, you disagree with the outcome...

Read More