The average owner of a small business typically reports a loss in their first year of operation. But when the IRS steps in, many first-timers do not even stand a chance. It is important to stay one step ahead of the game when it comes to obeying Tax Laws. Small Business owners need to make sure they avoid the common problems Small Businesses run into with the IRS.The average owner of a small business typically reports a loss in their first year of operation. But when the IRS steps in, many first-timers do not even stand a chance. It is important to stay one step ahead of the game when it comes to obeying Tax Laws. Small Business owners need to make sure they avoid the common problems Small Businesses run into with the IRS.Many times, because truck drivers are on the road it is hard to become aware of IRS and State notices and letters. With your frequency on the road and time gone from home, these IRS or State notices and bills are never received or are lost in the pile of mail you have when you get home. The last thing truckers want to deal with while they’re home for a short period of time is the IRS or State. As a trucker it is difficult enough to file tax returns annually, but 1099 or self-employed truck drivers need to make quarterly estimated payments as well to avoid a large unpaid balance at the end of the year.Many times, because truck drivers are on the road it is hard to become aware of IRS and State notices and letters. With your frequency on the road and time gone from home, these IRS or State notices and bills are never received or are lost in the pile of mail you have when you get home. The last thing truckers want to deal with while they’re home for a short period of time is the IRS or State. As a trucker it is difficult enough to file tax returns annually, but 1099 or self-employed truck drivers need to make quarterly estimated payments as well to avoid a large unpaid balance at the end of the year.Frequently that taxpayers do not file tax returns for one or more years for various reasons. Missing all or a portion of their records, personal hardship and/or neglect are one of many reasons to fall behind. Fortunately there are ways to approach the problem of unfiled returns.Frequently that taxpayers do not file tax returns for one or more years for various reasons. Missing all or a portion of their records, personal hardship and/or neglect are one of many reasons to fall behind. Fortunately there are ways to approach the problem of unfiled returns.Typically, those who owe the IRS, also end up owing state tax. State tax collection authorities have tremendous reach and are generally more aggressive in their collection efforts. Most states offer similar versions of the Offer in Compromise program , and will offer payment plans and amnesty from penalties and interest if successfully approached to provide a relief in state tax problems.Typically, those who owe the IRS, also end up owing state tax. State tax collection authorities have tremendous reach and are generally more aggressive in their collection efforts. Most states offer similar versions of the Offer in Compromise program , and will offer payment plans and amnesty from penalties and interest if successfully approached to provide a relief in state tax problems.Besides the “Offer in Compromise” the IRS offers an alternative program for reducing delinquent tax debt. Clients seeking tax relief from their IRS liability can still be helped. We can work with you and make payment arrangements that the IRS will allow. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, we are able to challenge the penalties and interest ( Penalty Abatement ) that have built up.Besides the “Offer in Compromise” the IRS offers an alternative program for reducing delinquent tax debt. Clients seeking tax relief from their IRS liability can still be helped. We can work with you and make payment arrangements that the IRS will allow. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, we are able to challenge the penalties and interest ( Penalty Abatement ) that have built up.An Offer in Compromise (OIC) is an agreement filed by a taxpayer which offers a payment to the IRS that is less than the full amount of tax debts owed. Once the IRS has establishes your need for tax relief under one of the following premises they may approve your OIC. Our attorneys have the experience and knowledge to not only deal with OIC’s but to repeal OIC’s that have been revoked.An Offer in Compromise (OIC) is an agreement filed by a taxpayer which offers a payment to the IRS that is less than the full amount of tax debts owed. Once the IRS has establishes your need for tax relief under one of the following premises they may approve your OIC. Our attorneys have the experience and knowledge to not only deal with OIC’s but to repeal OIC’s that have been revoked.This is one of the common ways of repaying a tax debt. The idea is that you will have to pay back your tax debt, including penalties and interest, in small amounts, usually in the form of monthly payments. This agreement is best done between your tax professional and the IRS. Religiously paying the monthly payments will ultimately lead you to being tax debt free.This is one of the common ways of repaying a tax debt. The idea is that you will have to pay back your tax debt, including penalties and interest, in small amounts, usually in the form of monthly payments. This agreement is best done between your tax professional and the IRS. Religiously paying the monthly payments will ultimately lead you to being tax debt free.The Freedom of Information Act (FOIA), enacted in 1966, generally provides that any person has the right to request access to federal agency records or information. Federal agencies are required to disclose records upon receiving a written request for them, except for those records that are protected from disclosure by any of the nine exemptions or three exclusions of the FOIA. This right of access is enforceable in court.The Freedom of Information Act (FOIA), enacted in 1966, generally provides that any person has the right to request access to federal agency records or information. Federal agencies are required to disclose records upon receiving a written request for them, except for those records that are protected from disclosure by any of the nine exemptions or three exclusions of the FOIA. This right of access is enforceable in court.You can ask the IRS to place your tax accounts into “currently not collectible” status until you are able to make monthly payments. What is Currently Not Collectible Status? If the IRS agrees that you do not have enough income to make monthly payments towards your tax debt, it will place your accounts into “currently not collectible” status. Although the IRS will continue to add penalties and interest to the amount due, the IRS will not try to collect the unpaid tax from you. Your tax accounts can remain in currently not collectible status as long as you cannot afford monthly payments.You can ask the IRS to place your tax accounts into “currently not collectible” status until you are able to make monthly payments. What is Currently Not Collectible Status? If the IRS agrees that you do not have enough income to make monthly payments towards your tax debt, it will place your accounts into “currently not collectible” status. Although the IRS will continue to add penalties and interest to the amount due, the IRS will not try to collect the unpaid tax from you. Your tax accounts can remain in currently not collectible status as long as you cannot afford monthly payments.We will provide you the experience and professionalism when dealing with your IRS or State audit. For a personal audit it is important to understand that returns are usually selected for statistical reasons. By contacting us we are able to become a buffer between you and the IRS and/or State. If you have a business audit, it is important to understand your rights. Before you allow them to take computers, records, even enter your place of business. STOP!! Understand your rights.We will provide you the experience and professionalism when dealing with your IRS or State audit. For a personal audit it is important to understand that returns are usually selected for statistical reasons. By contacting us we are able to become a buffer between you and the IRS and/or State. If you have a business audit, it is important to understand your rights. Before you allow them to take computers, records, even enter your place of business. STOP!! Understand your rights.At Anthem Tax Services we will record all your day-to-day financial transactions for your business or if you’re a self-employed individual.  We will be responsible to go through all of your bank transactions, credit card transactions, receipts and payments and categorize them to generate a profit & loss.  In doing this… we will help you forecast your financials and in doing so you will learn what needs budgeting and what to pay towards your estimated tax payments.If you got a notice from the IRS or State about an audit…don’t worry!  With 30+ years of experience in tax laws and enforcing tax codes.  Going through an audit is one of the most time consuming and mentally draining things a person or business can go through.  Our advice? Don’t do this alone…ever.  Anthem Tax Service’s is here to be with you every step of the way and until the audit is closed.  Anthem Tax Services will defend your income tax return through the highest level of appeals, schedule and attend all audit appointments on your behalf. Our priority is to minimize or possibly eliminate any financial impact the audit may have on you!Anthem Tax Services provides tax preparation services for individuals and businesses. We have experience in preparing returns for small startups to 100+ employee corporations. If you have multiple years of unfiled returns, don’t worry! We can get all your old income documents directly from the IRS to make it as easy as possible for you. This applies for business’s as well…all you need is your existing tax ID number and let us do the rest. Typically our turnaround time for tax returns are about 7-14 business days as long as you can provide us with very simple paperwork.. Whatever your tax needs are we got you covered! What are you waiting for? Call today!If you have a tax debt with the IRS or State we are here to help..  What many people and business’s don’t know is the IRS and State have created many different tax laws and tax codes that can drastically reduce and or possibly eliminate a person(s) or business(s) tax debt under many different circumstances.  At Anthem Tax Services we provide solutions to delinquent tax payers to settle their back taxes…often for pennies on the dollar.  Typically a case can take anywhere from 30-120 days (depending on the client) to submit all the necessary paperwork to the IRS or State to resolve their back taxes. Don’t let the IRS or State intimidate you when you can have a team with 30+ years of experience deal with it all!Bank levy and wage garnishment can be the most stressful and humiliating of all collection tactics.  They do this to force taxpayers into willful compliance.  Anthem Tax Services can not only prevent these from happening, but can get these lifted and stopped.  We know your rights as taxpayer and we are here to help.  If you have a current wage garnishment or bank levy we can typically get these released within 48 hours as long as all of your tax returns are filed.Bank levy and wage garnishment can be the most stressful and humiliating of all collection tactics.  They do this to force taxpayers into willful compliance.  Anthem Tax Services can not only prevent these from happening, but can get these lifted and stopped.  We know your rights as taxpayer and we are here to help.  If you have a current wage garnishment or bank levy we can typically get these released within 48 hours as long as all of your tax returns are filed.At Anthem Tax Services we will record all your day-to-day financial transactions for your business or if you’re a self-employed individual.  We will be responsible to go through all of your bank transactions, credit card transactions, receipts and payments and categorize them to generate a profit & loss.  In doing this… we will help you forecast your financials and in doing so you will learn what needs budgeting and what to pay towards your estimated tax payments.If you got a notice from the IRS or State about an audit…don’t worry!  With 30+ years of experience in tax laws and enforcing tax codes.  Going through an audit is one of the most time consuming and mentally draining things a person or business can go through.  Our advice? Don’t do this alone…ever.  Anthem Tax Service’s is here to be with you every step of the way and until the audit is closed.  Anthem Tax Services will defend your income tax return through the highest level of appeals, schedule and attend all audit appointments on your behalf. Our priority is to minimize or possibly eliminate any financial impact the audit may have on you!Anthem Tax Services provides tax preparation services for individuals and businesses. We have experience in preparing returns for small startups to 100+ employee corporations. If you have multiple years of unfiled returns, don’t worry! We can get all your old income documents directly from the IRS to make it as easy as possible for you. This applies for business’s as well…all you need is your existing tax ID number and let us do the rest. Typically our turnaround time for tax returns are about 7-14 business days as long as you can provide us with very simple paperwork.. Whatever your tax needs are we got you covered! What are you waiting for? Call today!If you have a tax debt with the IRS or State we are here to help..  What many people and business’s don’t know is the IRS and State have created many different tax laws and tax codes that can drastically reduce and or possibly eliminate a person(s) or business(s) tax debt under many different circumstances.  At Anthem Tax Services we provide solutions to delinquent tax payers to settle their back taxes…often for pennies on the dollar.  Typically a case can take anywhere from 30-120 days (depending on the client) to submit all the necessary paperwork to the IRS or State to resolve their back taxes. Don’t let the IRS or State intimidate you when you can have a team with 30+ years of experience deal with it all!
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Anthem Tax Services – Private Collection of Some Overdue Federal Taxes Starts in April; Those Affected Will Hear First From IRS; IRS Will Still Handle Most Tax Debts

Taxpayers: Watch Out for Scam Calls

 

IR-2017-74, April 4, 2017                                                                                 Español

WASHINGTON — Starting this month, the Internal Revenue Service will begin sending letters to a relatively small group of taxpayers whose overdue federal tax accounts are being assigned to one of four private-sector collection agencies.

The new program, authorized under a federal law enacted by Congress in December 2015, enables these designated contractors to collect, on the government’s behalf, unpaid tax debts. Usually, these are unpaid individual tax obligations that are not currently being worked by IRS collection employees and often were assessed by the tax agency several years ago.

Taxpayers being assigned to a private firm would have had multiple contacts from the IRS in previous years and still have an unpaid tax bill.

“The IRS is taking steps throughout this effort to ensure that the private collection firms work responsibly and respect taxpayer rights,” said IRS Commissioner John Koskinen. “The IRS also urges taxpayers to be on the lookout for scammers who might use this program as a cover to trick people. In reality, those taxpayers whose accounts are assigned as part of the private collection effort know they have a tax debt.”

The program will begin this week with a few hundred taxpayers receiving mailings and subsequent phone calls, with the program growing to thousands a week later in the spring and summer. Taxpayers with overdue taxes will always receive multiple contacts, letters and phone calls, first from the IRS, not private debt collectors.

How the New Program Works

The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA). First, the IRS will send a letter to the taxpayer and their tax representative informing them that their account is being assigned to a PCA and giving the name and contact information for the PCA. This mailing will include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.

Only four private groups are participating in this program: CBE Group of Cedar Falls, Iowa; Conserve of Fairport, N.Y.; Performant of Livermore, Calif.; and Pioneer of Horseheads, N.Y. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private group is authorized to represent the IRS.

Once the IRS letter is sent, the designated private firm will send its own letter to the taxpayer and their representative confirming the account transfer. To protect the taxpayer’s privacy and security, both the IRS letter and the collection firm’s letter will contain information that will help taxpayers identify the tax amount owed and assure taxpayers that future collection agency calls they may receive are legitimate.

The private collectors will be able to identify themselves as contractors of the IRS collecting taxes. Employees of these collection agencies must follow the provisions of the Fair Debt Collection Practices Act, and like IRS employees, must be courteous and must respect taxpayer rights.

The private firms are authorized to discuss payment options, including setting up payment agreements with taxpayers. But as with cases assigned to IRS employees, any tax payment must be made, either electronically or by check, to the IRS. A payment should never be sent to the private firm or anyone besides the IRS or the U.S. Treasury. Checks should only be made payable to the United States Treasury. To find out more about available payment options, visit IRS.gov/Payments.

Private firms are not authorized to take enforcement actions against taxpayers. Only IRS employees can take these actions, such as filing a notice of Federal Tax Lien or issuing a levy. To learn more about the new private debt collection program, visit the Private Debt Collection page on IRS.gov.

Watch out for Phone Scams

The IRS reminds taxpayers to be on the lookout for scammers posing as private collection firms. The IRS will be watching for these schemes as the collection program begins, and this effort will include working with partners in the tax community and law enforcement about emerging scams.

People should remember that these private collection firms will only be calling about a tax debt the person has had – and has been aware of – for years and had been contacted about previously in the past by the IRS.

“Here’s a simple rule to keep in mind. You won’t get a call from a private collection firm unless you have unpaid tax debts going back several years and you’ve already heard from the IRS multiple times,” Koskinen said. “The people included in the private collection program typically already know they have a tax issue. If you get a call from someone saying they’re from one of these groups and you’ve paid your taxes, that’s a sure sign of a scam.”

If taxpayers are unsure if they have an unpaid tax debt from a previous year – which is what the private collection firms will handle – they can go to IRS.gov and check their account balance: www.irs.gov/balancedue. If the account balance says zero, that means nothing is due, and you typically wouldn’t be getting a contact from the IRS or the private firm.

Whether or not a taxpayer’s account is assigned to a private collection agency, the IRS warns taxpayers to beware of scammers pretending to be from the IRS or an IRS contractor. Here are some things the scammers often do but the IRS and its contractors will never do.

  • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes, and if a case is assigned to a PCA, both the IRS and the authorized collection agency will send the taxpayer a letter. Payment will always be to the United States Treasury.
  • Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
  • Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
  • Ask for credit or debit card numbers over the phone.

“Unexpected and threatening calls out of the blue from someone saying they’re representing the IRS to collect a tax debt is a warning sign people should watch out for,” Koskinen said.

For more information, visit the “Tax Scams and Consumer Alerts” page on IRS.gov.

Don’t Wait to Hear from the IRS or a Contractor

As always, the IRS encourages taxpayers behind on their tax obligations to come forward and either pay what they owe or set up a suitable payment plan. This means there’s no need to wait for a phone call or letter from the IRS or any of its contractors.

Frequently, taxpayers qualify for one of several payment options, and taking advantage of them is often easier than many people think. These include the following:

  • Most people can set up a payment agreement with the IRS online in a matter of minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use theOnline Payment Agreement to set up a monthly payment agreement for up to 72 months. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS. With the Online Payment Agreement, no paperwork is required, there is no need to call, write or visit the IRS and qualified taxpayers can avoid the filing of a Notice of Federal Tax Lien if one was not previously filed. Alternatively, taxpayers can request a payment agreement by filing Form 9465. This form can be downloaded from IRS.gov and mailed along with a tax return, bill or notice.
  • Some struggling taxpayers may qualify for anoffer-in-compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay. To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov.

“If people have a problem paying their tax bill, we encourage them to reach out to us,” Koskinen said. “We have many programs designed to help people who are having trouble meeting their tax obligations. It’s better to reach out to us sooner rather than later for help, because interest and penalties on unpaid taxes can add up quickly.”

Thank you,

 

Josh Kahn

Tax Consultant