Listen to an audio transcript of an IRS Enrolled Agent explaining the process of filing an offer in compromise, and who may file for an OIC.
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Archive for the ‘IRS’ Category
IRS Collection Process: Offers in Compromise
Wednesday, October 12th, 2011When National Debt Goes Up Watch Out For The IRS
Monday, July 18th, 2011What happens when you lose your job? You madly look for a new one. You look anywhere and everywhere for money. What about business? Your company loses a major client. What happens? Your company puts out an an All Points Bulletin on finding new customers. It’s not complicated. You must replace lost revenue with new revenue. What happens if you don’t?
You go into debt. Assuming you have access to credit you start charging living or business expenses on your credit cards or lines of credit. Cutting expense will lessen the amount you go in debt but it won’t prevent it all together. Only new revenue will fix the problem. If nothing works then you file bankruptcy or go out of business. You’re done.
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Tax Attorney Jeff Fouts Responds to Complaints, Negative Reviews – Part One
Tuesday, July 5th, 2011
Jeff Fouts Tax Attorney: Far less than 1 percent of our clients make any kind of complaint with us.
A handful of people have posted negative anonymous comments about my tax law practice on the Internet (sites include ripoffreport dot com, complaintsboard dot com and scam dot com). At last count there were eight reviews.
Since we’re talking about eight online reviews it might seem like it’s not worth mentioning, especially when taken in context of the thousands of cases I’ve handled over 18 years. But when people say things anonymously that simply aren’t true, or greatly exaggerate a claim, I have to respond. This is my side of the story and I hope you’ll listen.
My name is Jeff Fouts and I’m a tax lawyer located in a small town called Ellijay north of Atlanta, Georgia. I help individuals and business owners with IRS Tax problems across the U.S. (and those in Georgia with state tax issues). I’ve helped clients in all 50 states and 21 foreign countries. I represent tax clients because I love solving tax problems and I’m not a fan of the IRS. I am proud of each victory I obtain for my clients.
Here are some facts about my firm:
- I have scores of positive client reviews, a few of which I feature on my website.
- I have an A+ Better Business Bureau (BBB) rating.
- I’m admitted to, and in ‘good standing’ of all applicable courts, including the United States Supreme Court, the United States Tax Court and the United States District Court (NDGA) (see this page for full court memberships).
- You can check with the Attorney General’s office in all 50 states and you won’t find any case or judgements against me.
- Far less than 1% of my clients have ever complained about my services
- We bill honestly for our time
- We offer low cost retainers (as little as $500) to make it easy for folks to start working with us (and get the protection offered by attorney-client privilege)
- Since we ask for much lower retainers than most tax attorneys with my experience level, this also requires us to follow up with payment requests more frequently than other tax attorneys who charge $2,000 or $5,000 retainers
- We offer fixed fees (also called capped fees) for as many clients as we can qualify so our clients know the full potential cost of their legal fees ahead of time.
- This helps clients budget their legal fees and also removes the fear of unknown, or perceived ‘skyrocketing’ of legal fees.
- Regardless of your background, race, sex, religion, legal or financial situation I treat people with respect and consideration.
Many of these things cannot be said for some of the firms you’ll find in Google search results alongside my practice. Don’t be misled into thinking I’m one of the splashy national firms that have given my law specialty of tax attorney’s a bad reputation, notably TV Lawyer Roni Lynn Deutch who was recently shut down, or nationwide tax firm JK Harris that recently settled with the Attorney General in the State of Texas for $1.2MM in fines and legal fees. The only stories you’ll read about me in the newspaper are where USA Today and ABC News quotes me on tax stories due to my tax expertise.
I know it’s impossible to satisfy everyone all of the time, but I still try. My goal is to get the very best solution I can for each client’s case. We’re not a big firm and we don’t lie or exaggerate the chances of your case’s success to earn or keep your business, and we only charge you for the work we do on your behalf.
Tomorrow I’ll post part two of my response, where I’ll talk about why I think people have made complaints against my firm.
Until next time,
Jeffrey I. Fouts, Tax Attorney
You can put off your tax problem, or put us to work.
Here’s a bio of sorts. I’m happily married with two kids. I’m a real small town tax lawyer (Ellijay, pop. 1,584) not some fictional marketing character. I represent tax payers before the IRS in all 50 states. I have 18 years experience, thousands of satisfied clients, about 8 critics at last count, and an A+ BBB Rating.
I’m a member in good standing of the bar and have active memberships in courts from Georgia to Washington D.C. My competitors covet my Google ranking but my clients covet my sound legal counsel. I deal directly with my clients and have a small, tireless staff. You can put off your tax problem, or put us to work.
IRS Employee Tax Problems Include Failing To File Tax Returns
Saturday, July 2nd, 2011IRS employees have their own tax problems.
According to the Treasury Inspector General for Tax Administration Audit Report, between 2004 and 2008, the IRS tracked more than 8,000 potential noncompliance issues among their employees and found that action was warranted one-third of the time. The most common suspected offense was failing to file at all, which is hard to imagine for an IRS employee.
The TIGTA report also identified 133 additional employees in tax years 2006 and 2007 who were noncompliant with their tax obligations but weren’t identified by the computer match.
You have to wonder what the most powerful collection agency in the world is doing when they aren’t obeying the same rules they’re forcing the rest of us to live by. It would be galling to know that the Revenue Agent auditing you was not filing their own tax return or paying their tax liabilities. This finding has implications that extend beyond tax fraud.
“The IRS risks an erosion of public confidence in the American voluntary tax system if it does not appropriately address employees who are not complying with their tax obligations,” – Treasury Inspector General for Tax Administration audit report
There are additional facts and related links you may want to read here on Ashlea Ebeling’s Forbes article – IRS Employees In Tax Trouble.
Until next time,
Jeff Fouts, Tax Attorney
You can put off your tax problem, or put us to work.
Here’s a bio of sorts. I’m happily married with two kids. I’m a real small town tax lawyer, (Ellijay, pop. 1,584) not some fictional marketing character. I’ve represented tax clients against the IRS in all 50 states, and in 21 foreign countries. I have 18 years experience, thousands of satisfied clients, about 8 critics at last count, and an A+ BBB Rating.
I’m a member in good standing of the bar and have active memberships in courts from Georgia to Washington D.C., including the U.S. Supreme Court. My competitors covet my Google ranking but my clients covet my sound legal counsel. I deal directly with my clients and have a small, tireless staff. You can put off your tax problem, or put us to work.
Tax Protesters – It Doesn’t Work
Monday, June 13th, 2011
Many people feel like they pay more than their fair share in federal income taxes, but it is important to correctly file your taxes on time and pay the amount you owe the IRS to avoid tax problems. As a Tax Attorney I deal with tax protest cases on a fairly regular basis.
Here’s the thing, this defense against paying taxes doesn’t work. It didn’t work for actor Wesley Snipes and it hasn’t worked for the most dedicated of tax protestors over the years, despite being tested in our courts since the 1950′s.
Back in 2006, USA Today pubished an article on tax protestors that they interviewed me for, and subsequently quoted me in as a tax expert. Here’s an excerpt of the story to illustrate a fairly common tax protestor scenario:
“SOUTH BEND, Ind. — Like most Americans, Peter Smith and his wife, Ellyn Stecker, sit down each year to fill out a federal tax form. Then they write a check to the U.S. Treasury for half the sum in the “amount you owe” box.
They are among thousands of Americans who refuse to pay part or all of their federal taxes as a protest against war and military spending. “It takes two things to fight a war: people and money,” says Smith, 67, a retired math and computer science teacher. “I can’t refuse anymore to go, but I certainly can refuse to send the money.”
No one likes to pay taxes, but in the long run when you protest your taxes by not paying the IRS (regardless of the reason) the Federal Government ends up with its share or you end up in trouble.
I’ll sum up this post today by reprinting my quote from the USA Today Article:
“Jeff Fouts, a tax attorney in the Atlanta area, says, “No matter what argument you raise as to the legitimacy of the tax system, you’re going to lose.” – USA Today War on Tax Waged Against Costs of War
Save your protest for a sharply worded letter to your elected officials, or one of many other forms of protected avenues of protest we enjoy in America such as free speech. It has a lot more chance of helping achieve your ends with none of the dire consequences.
Until next time,
Jeffrey I. Fouts, Tax Attorney
You can put off your tax problem, or put us to work.
Here’s a bio of sorts. I’m happily married with two kids. I’m a real small town tax lawyer (Ellijay, pop. 1,584) not some fictional marketing character. I represent tax payers before the IRS in all 50 states. I have 18 years experience, thousands of satisfied clients, about 8 critics at last count, and an A+ BBB Rating.
I’m a member in good standing of the bar and have active memberships in courts from Georgia to Washington D.C. My competitors covet my Google ranking but my clients covet my sound counsel. I deal directly with my clients and have a small, tireless staff. You can put off your tax problem, or put us to work.
Innocent Spouse Relief Resources
Tuesday, June 7th, 2011
Women are the most common victims of tax fraud committed by their spouse. Many don't know they can file with the IRS for 'innocent spouse' relief.
If your current or ex-spouse owes money to the IRS and you filed a joint return you may need innocent spouse tax relief. Innocent spouses need to know how to fight back against the IRS. This post will give you an example of innocent spouse relief and five resources to help you save yourself.
You know something is wrong with our system when an innocent spouse is saddled with a crushing tax debt created by an ex-husband without her knowledge while white collar criminals associated with our banking crisis live like kings.
Some 50,000 tax payers file for innocent spouse relief each year with the IRS but there are many more victims that either don’t know about their rights or file after the IRS’s two year deadline. But relief may be on the way in the summer of 2011 as the IRS is reviewing innocent spouse relief after pressure from congress.
Here’s an example of tax fraud committed by a husband that injured his innocent wife as reported recently by Laura Saunders in the Wall Street Journal – A New Push to Protect Spouses.
“In 1999, Cathy Marie Lantz’s husband, Indiana dentist Richard Chentnik, earned $112,000—or so she thought when she signed their joint tax return. In 2000, Dr. Chentnik was arrested for Medicare fraud, convicted and imprisoned. In connection with the case, the Internal Revenue Service sent the couple a bill for $900,000 of tax, penalties and interest.
Does Ms. Lantz owe the tax debt her husband incurred? The IRS said yes, the Tax Court said no, and last summer the Seventh Circuit Court of Appeals said yes again, siding with the IRS.
The court’s reasoning: To be absolved of responsibility for the couple’s tax debts, Ms. Lantz would have had to ask the IRS for “innocent spouse” relief within two years of the agency’s sending a levy notice.
According to testimony, she said she didn’t do so because her husband told her he had taken care of the request. Dr. Chentnik did get the IRS form, according to testimony, but didn’t file it before dying in a halfway house in 2004—so the court held Ms. Lantz liable for the entire tax bill. ” – Wall Street Journal
IRS Innocent Spouse Relief Resources
- IRS.gov section on Innocent Spouse Relief » Visit
- File IRS Form 8857 (download here) – You must show the tax was due to your spouse and that you didn’t know of any problem
- My own short and simple overview of your innocent spouse relief options
- Tax articles and Podcasts from Tax Mama on Innocent Spouse Relief » Visit
- For someone who wants to perform deep research you can buy the guide from the American Bar Association intended for practitioner Attorney’s like me that walks through the entire innocent spouse relief process (cost is about $100). A Practitioner’s Guide to Innocent Spouse Relief:
Until next time,
Jeffrey I. Fouts, Tax Attorney
Here’s a bio of sorts. I’m happily married with two kids. I’m a real small town tax lawyer (Ellijay, pop. 1,584) not some fictional marketing character. I represent tax payers before the IRS in all 50 states. I have 18 years experience, thousands of satisfied clients, about 8 critics at last count, and an A+ BBB Rating.
I’m a member in good standing of the bar and have active memberships in courts from Georgia to Washington D.C. My competitors covet my Google ranking but my clients covet my sound counsel. I deal directly with my clients and have a small, tireless staff. You can put off your tax problem, or put us to work.
U.S. Tax Rate Up to 87% For Some Taxpayers
Wednesday, May 25th, 2011
From 1940 to 1963, the top marginal income tax rate in America was between 81% and 91%. Today’s federal rates on even the highest earners are much lower. However, with the help of state and local governments, high-income investors can end up forfeiting 60%, 70% or even more than 80% of their profits from the time they’re generated through the moment they’re spent.
- Jack Hough, Smartmoney
Through a combination of living in a highly taxed state, such as New York, receiving corporate dividend profits, and purchasing specially taxed items such as cigarettes and cellphones, your average tax may be up to 87%.
Usually my clients need my services as a tax attorney because they haven’t paid their taxes at all, but as the Smartmoney article makes clear, you can make the mistake of paying too much tax. The solution is to stay informed, keep clear of tax ripoffs (I published a tax ripoff report just the other day), and find an experienced tax advisor and avoid tax scams and ripoffs.
Until next time,
Jeffrey I. Fouts, Tax Attorney
Tax Ripoff Report & Scams – Jeff Fouts
Thursday, May 19th, 2011
Are you concerned with someone trying to scam you while pretending to lower your taxes? There’s good reason to be worried. This is a report on five common kinds of tax ripoff I’ve seen while defending my clients against the IRS.
No one likes to pay taxes and that’s why there are so many tax ripoffs. The crooks know that you ‘want to believe.’ But this isn’t Disneyland, a tax scam you unknowingly participate in can turn in to IRS fines or even land you in jail.
Because of this, it’s important to know about these scams so you can avoid them. There’s a second reason you need to defend yourself against these people which I’ll get to in a minute.
First let’s look at the kinds of ripoffs and scams my clients experience most often:
Top 5 Tax Ripoff or Scam Reports
- Improper Home-Based Business Expense
- Identity Theft
- Off Shore Tax Haven Ripoff
- Tax Avoidance Ripoffs such as ‘Frivolous Arguments’
- Tax Savings Scheme like the ‘Share/Borrow Dependents’
You can read more about these tax ripoffs and scams (plus some others) here on my article called The IRS Dirty Dozen.
Let’s look at one popular tax ripoff from the list above that’s been driving a lot of complaints with the IRS lately.
Improper Home-Based Business Expenses
This scheme purports to offer tax ‘relief’ but in reality is illegal tax avoidance. The promoters of this scheme claim that individual taxpayers can deduct most, or all, of their personal expenses as business expenses by setting up a bogus home-based business. But the tax code firmly establishes that a clear business purpose and profit motive must exist in order to generate and claim allowable business expenses. Even when you have a legitimate home-based business high deductions in this area are a known audit trigger.
Spotting a Ripoff
Are there common denominators for a tax ripoff?
Thief’s like to use legitimate tax and financial advice that’s in the news. Like the small business tax breaks you might have heard about for a home-based business. Home-based businesses are a great legitimate tax break so naturally the media highlight it. Ripoff artists play on this media coverage to give their tax scam an air of legitimacy.
Which leads me to the second point about why it’s important to know about these ripoffs. The thief’s know you are much less likely to report them out of fear you’ll get in trouble with the IRS yourself. Fear is a strong lever that they’re only too happy to exploit.
Many advice columns point out that if something sounds too good to be true, it probably is. Then again, if people could follow this advice reliably then people would never fall victim to scams…
My advice is easier to get right. I recommend you visit the IRS web site to search their latest Tax Fraud Alerts. If you’re still not sure, consult an experienced tax preparer or tax lawyer like yours truly. If you prefer the phone, give me a call at 1-800-509-2770.
Until next time,
Jeffrey I. Fouts, Tax Attorney
Here’s a bio of sorts. I’m happily married with two kids. I’m a real small town tax lawyer (Ellijay, pop. 1,584) not some fictional marketing character. I represent tax payers before the IRS in all 50 states. I have 18 years experience, thousands of satisfied clients, about 8 critics at last count, and an A+ BBB Rating. I’m a member in good standing of the bar and have active memberships in courts from Georgia to Washington D.C. My competitors may covet my Google ranking but my clients covet my sound counsel. I deal directly with my clients and have a small, tireless staff. You can put off your tax problem, or put us to work.
Offshore Tax Shelters in India Investigated by IRS
Wednesday, May 18th, 2011The IRS is Dramatically expanding its efforts to unearth unreported offshore income, and prosecute offenders who try to hide money in international bank accounts in order to avoid paying income taxes.
Federal tax authorities are looking to force HSBC India to reveal the names of 9,000 U.S. taxpayers of Indian descent. They have reason to believe that there are thousands of bank accounts with unreported income of $100,000 or more generated by U.S. residents. This income is taxable under the current IRS codes.
The IRS is in a multi-year campaign against undeclared offshore accounts held by U.S. taxpayers, previously focused on accounts held by banks in Switzerland, including UBS AG.
UBS admitted two years ago it had plotted to defraud the U.S. government by helping wealthy Americans hide their assets in swiss bank accounts. UBS paid $780 million to avoid criminal prosecution and turned over 4,000 names.
If you are considering depositing money in an offshore bank account, check with your attorney or CPA first to make sure you aren’t breaking federal law. We see many cases involving hidden bank accounts, and can help you if the IRS is auditing your complex financial transactions.
The Top Marginal Tax Rate Was 94% In 1944
Wednesday, April 13th, 2011We think we have it bad when it comes to paying taxes…
After the depression the tax rate for married couples skyrocketed and at the end of World War II the tax assessed by the IRS was nearly all of your income*. There are lots of caveats to the 94% tax rate but even with these considerations the relative amount of tax is still a fair comparison to modern tax rates.
*See the link here at TruthandPolitics.org for full definitions.
How did this effect people?
Joe Louis emerged from being the heavyweight champion of the world deeply indebted to the IRS.
If you find yourself in a bind with the IRS where you’d like a tax attorney on your side I can help. For a confidential consultation call me today on 1-800-509-2770 or send me an email here.
