Would you like to be prepared for your IRS audit by knowing the kinds of questions the IRS will ask you even before they arrive? Perhaps you’d like to know what areas the IRS studies for your specific business type?
Business IRS Tax Audit Techniques Guides (ATGs)
November 15th, 2011IRS Offers in Compromise Explained by Enrolled IRS Agents
November 8th, 2011
Below you’ll find a Question and Answer session produced by the IRS which explains the tax settlement process used for Offers in Compromise and gives detailed information about who qualifies, why the program was setup, and what you should expect if you need to file an OIC.
Note: The IRS conducts presentations via Phone Forums. These presentations are archived on the IRSVideos.gov website for individuals, small businesses and tax professionals. The links to all IRS phone forums are shown at the end of this phone forum transcript.
Q1. I have been asked to file returns for a taxpayer who has no assets, little income, and owes many years of taxes. After all tax returns past due are filed, can an OIC immediately submitted or should the OIC be filed after the returns are processed and notices are received by the taxpayer?
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Broken Promises: IRS Tax Problems Settled for Pennies on the Dollar
November 6th, 2011Have you seen the TV commercials where the advertiser says your IRS tax case will be resolved for ‘pennies on the dollar’?
Some of my former competitors that have had major legal and business problems with this practice include tax attorneys JK Harris, Roni Lynn Deutch and more recently TaxMasters.
In the case of JK Harris, they have a record of run-ins with State Attorney Generals in many states and most recently they settled a million dollar lawsuit in Texas for misleading sales practices. This month the JK Harris tax law firm filed for bankruptcy. Not exactly what you want in the team representing you before the IRS. The video below discusses the case, has statements from former clients, and the Texas State Attorney General.
This news is close on the heels of TV Lawyer Roni Lynn Deutch shutting down her national firm in California after continued pressure from the California State Attorney General for what amounts to poor business practices and broken promises. She surrendered her license to practice law and resigned from the state bar in May 2011
TaxMasters, another ‘big’ firm with TV advertising, is facing pressure of their own from State Attorney Generals for the same kinds of misleading advertising and sales practices where clients are promised a successful offer in compromise.
These tax firms all have something in common.
- Poor BBB Ratings (Better Business Bureau)
- News stories from reputable mainstream media citing repeated consumer issues with the company
- Large numbers of complaints to State Attorney Generals about alleged illegal business practices
You won’t find any of those things about me or my team here at tax attorney Jeff Fouts and Associates. We have an A+ BBB rating, no complaints with the State Attorney General in any state and no bad press from mainstream media.
It’s often difficult for businesses to stay true to their original vision and ethics when they grow too fast or seemingly get greedy. I take a different approach with my tax law practice. That’s probably why we’re in our 18th year of service. We work hard for our clients and we fight the IRS even harder.
I have a small but tireless staff that are very experienced. Here’s an example. Dale is my Special Assistant and he’s one of the people you’ll speak with when you first contact my office. Dale’s been with my firm a long time, he knows your issues, he’s patient and understanding. He doesn’t make promises that I can’t keep and he follows up promptly to all your issues.
Pennies on the dollar
Pennies on the dollar is possible, but not because of some legal voodoo. Basically, the IRS determines what percentage of your outstanding tax liability it can reasonably collect in the next 2 years. This is called your “reasonable collection potential” and it’s why pennies on the dollar cases happen. Think about your ability to pay if you presently have a high income vs. if you’ve been out of work for six months and haven’t found a new job.
What we do here at my firm is a proper analysis of your case facts and history. My special assistant Dale will tell you that we can’t make any promises on your case, and can’t assess your chances of a successful offer in compromise case until I’ve completely reviewed your case facts. Even then, we don’t promise success. What I can do is promise that everyone on my team will do our best. With 18 years experience and and A+ rating with the BBB I’d encourage you to call us and find out if we can help you.
Until next time,
Jeff 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’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 of tax specialists.
You can put off your tax problem, or put us to work for you.
How To Get Your Offer in Compromise Approved by the IRS
October 31st, 2011An Offer in Compromise is an agreement made with the IRS that allows you to settle your tax liability for less than you owe. It can be an option for people who are unable to pay their taxes in full, or for people whom tax payment creates financial hardship. The IRS will consider your ability to pay, income, expenses, and asset equity when determining whether or not you qualify for an Offer in Compromise. The IRS encourages an Offer in Compromise only after all other options have been exhausted.
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Chart Showing How Your Taxes Are Used for Government Services
October 24th, 2011If you ever really wondered what your taxes are paying for, this is a straightforward infographic that showcases the breakdown of taxes for government services.
Click on image to see full size - 1987 Information
IRS 2012 Inflation Adjusted Tax Tables With Updated Tax Exemptions
October 21st, 2011
The IRS released various inflation-adjusted 2012 tax tables outlining tax exemptions, income tax thresholds, and retirement plan contributions (IR-2011-103; IR-2011-104; Rev. Proc. 2011-52, 2011-45 IRS).
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IRS Failed To Properly Protect Taxpayers While Assessing Tax Liens
October 18th, 2011
The Internal Revenue Service was reprimanded by the Treasury Inspector General for Tax Administration for failing to follow statutory requirements in notifying taxpayers when it files tax liens against them. TIGTA also found that the IRS does not always follow federal regulations for notifying taxpayers’ representatives while filing of lien notices.
IRS Collection Process: Offers in Compromise
October 12th, 2011Listen 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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Tax Deductions Many People Miss on their Tax Returns
September 24th, 2011Deductions are the best part of filing taxes, and most people are missing out on them, sending more money to the federal government than required. But before I review some of the deductions people miss on their tax returns let me make a quick suggestion on how to stay away from an IRS Audit.
- Don’t file fictitious or exaggerated deductions
- Be aware that submitting higher than average deductions in frequently abused areas like automobile deductions could create an audit flag with the IRS. The cautious route for deductions is to keep this advice in mind: If in doubt, leave it out!
- NEVER send anyone your original receipts. They get lost by CPA’s Tax Preparers, Tax Attorney’s and the IRS. Keep your original receipts and send copies. This is the eighteen years of experience talking.
Now’s let’s look at some great deductions you may qualify for.
Jeff Fouts Tax Attorney – Ripoffreport.com getting ripped off?
September 19th, 2011
Do you ever wonder if the comments on Ripoffreport.com or sites like complaintsboard.com are true?
I never did until I read comments about my own business and wondered who all the anonymous comments were from that I didn’t recognize. I’m a small business and the problems that my clients have actually had with me or my staff over the years are few and far between. And when I do have a problem, I hear about it and try to resolve it.
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