Tax Audits and Collections

Personal Tax Collections

• Help with Past Due Taxes The IRS is rapidly increasing collection of past due taxes. New tax collectors, known as "Revenue Officers," are being hired and trained with the sole purpose of getting as much money for the IRS as possible
• Confronting the IRS Most people are surprised when the IRS comes knocking at the door. Typically, the Revenue Officer starts asking questions and demands to enter the house. That is where the taxpayer makes crucial errors.
• Fighting the IRS IRS Revenue Agents - auditors, and Revenue Officers- collectors are your adversary. They are from the government and they are not here to help! First, if the IRS comes knocking at the door, do not let them in!
• Stopping IRS Bank Levies The IRS frequently attacks by filing a levy with your bank. This attack wipes out all of your bank accounts, even jointly owned accounts, held in that bank. Without immediate action, you are left unable to pay your bills, including your rent or mortgage, your electric, telephone, your car payment and the money needed to feed your family.
• Pay IRS in Installments Tax Installment Agreements allow you to pay taxes owed to the Internal Revenue Service monthly. Individuals and business taxpayers can qualify for installment payment plans.
• What is an IRS Offer in Compromise Tax settlements with the IRS can help avoid an unnecessary bankruptcy and can end the nightmare of bank levies, asset seizures, and wage executions. An effective Offer can provide a reasonable tax settlement that will eliminate excessive and burdensome tax payments
• Details of the IRS Offer in Compromise A compromise is a particular type of settlement of a tax controversy. Compromises usually take place at the collection stage. They are agreements between the Internal Revenue Service and a taxpayer allowing the taxpayer to pay the government less in taxes than the asserted tax liability.
• Handling a Notice of Levy If you have received a Notice of Levy from the IRS of an employee's wages or for monies owed to a creditor, you have obligations as well as rights. First, remember that the Notice of Levy is not for taxes that you owe, but rather is for taxes that may be owed by the person levied upon. Under Federal and State Law, a wage execution cannot be cause for terminating an employee.
• IRS Summons Power. The Internal Revenue Service use its summons authority to intimidate taxpayers. There is always the threat that  "if you do not give me what I want I will force it out of you and embarrass you by issuing third-party summons." It is critical to have your tax attorney representing you and being your first line of defense to prevent government abuse

Audits

• Audits Fear of tax increases, tax penalties such as negligence penalties, late filing penalties and late payment penalties as well as interest on the tax increase and penalties, is real. Big increases in tax dollars owed and even claims of civil tax fraud are the potential result of a mishandled tax audit.
• Bar and Restaurant Audits The Audit process starts with a Notice from the Division of Taxation scheduling an audit. Unlike a normal audit where there is an attempt to find the correct income and deductions, this audit is designed to "prove" that the business is understating income.
• Sales and Use Tax Audits Sales and use taxes are collected by many state and local taxing jurisdictions. Each state, and sometimes the local municipalities and counties have conflicting laws determining whether a particular sale is subject to sales tax. Slight factual differences may result in dramatic tax effects.

Employment - 941 Taxes

• Past due 941, 943 Employment Taxes  Here's a business rule you don't ever want to break: Don't borrow from payroll taxes withheld from employees. The IRS views this money as sacred. That's why the penalties involving these funds are severe. You need to know who will be considered liable if payroll taxes go unpaid.
• Fighting 941 Tax Collections The IRS shuts down businesses that cannot pay employment taxes.All the IRS wants is money! The Internal Revenue Service does not care if closing down your business will throw your employees out if work.  This argument will get you nowhere fast! In fact, by shutting-down your business the Revenue Officer gets credit for being an aggressive employee of the IRS.