Received an IRS letter? Here are some tips.

Have you received a notice from the IRS? We recognize a letter from the IRS can put an instant knot in your stomach, but before you decide to fight or pay up there are some basic facts you should look at. Here are some tips to help calm your nerves.

You Are Not Alone.

Millions of Americans owe back taxes every year. The IRS is big, faceless, and bureaucratic. They send millions of letters and notices to taxpayers.

Don’t Panic

If you get a letter from the IRS open it before you worry. Not every envelope from the IRS is a bill or bad news. Many IRS letters can be dealt with simply and quickly. Make sure you read carefully. There are many reasons the IRS sends letters and notices. It could simply request payment, notify you of a payment made, tell you of a change in your account, or request additional information for your account.

Keep Copies and Follow Instructions.

Everything the IRS sends provides specific instructions and time periods. Make sure you respond in a timely manner, but for some cases you may not even need to reply. Sometimes letters and notices don’t need a response if you agree with the IRS and sometimes they are just notices saying you will be billed. Read carefully and keep copies. Copies will be helpful to your case wherever proof is needed. Plus, if you have a power of attorney on file, the IRS will send a cope to you as well as your designated attorney. It is a good idea to have an attorney on file if you are ever worried about missing something.

You can ask for more time.

For many notices, the IRS will grant you  an extension of time if requested. If you do ask for an extension, confirm it in writing. Everything you do with the IRS needs to be confirmed in writing.

Get Some Help

Consider getting professional help. A tax lawyer, accountant, or tax consultant may do a better job with the issue than you can. These experts can help you get a better resolution with the IRS and sometimes pay less than you would have to. Here at Advocate Tax Solutions we have tax attorneys, CPAs and tax consultants on staff to help you get the best resolution possible.

For more information call 888-737-0200 or visit http://www.advocatetaxsolutions.com today! All consultations are free and of course confidential.

You Can Collect $1.28 Million From the New York Mets

Can’t play baseball? No problem. You still have a chance to get paid $1.28 million by the New York Mets.

On Jan. 20, the Internal Revenue Service will auction off the remaining annuity from the deferred compensation on Darryl Strawberry’s contract.

The former outfielder signed the six-year contract almost 30 years ago, back when he was slugging home runs for the Mets. Over the course of Strawberry’s 17-year Major League Baseball career, he took home four World Series titles, was named an All-Star for eight consecutive seasons and had 335 career home runs.

Next month when the IRS auctions off the right to collect $1.28 million paid by the Sterling Mets LP (parent company of the Mets) in 223 monthly installments. The auction was authorized by the court and will be divided by the IRS and other parties. The 19 years of monthly payments will settle Strawberry’s outstanding back tax debt in one lump sum.

The IRS filed a tax lien against Strawberry because he owes the IRS back taxes from 1989, 1990, 2003 and 2004. According to a court document, Strawberry owed the IRS nearly $543,000 in 2012.

You may be wondering why Strawberry isn’t making a claim for his annuity. He can’t. In 2006, Strawberry was forced to give a portion of the deferred money account to his wife Charisse as part of their divorce settlement.  However, he never made the payment and Charisse filed for Chapter 7 bankruptcy in 2010 and asked for the money he owed her.  Last September, the judge ruled that the money belonged to the IRS, not Charisse, because Strawberry still had not settled his tax debt from 1989, 1990, 2003 and 2004.

“Seizure and sale is the last thing we at the IRS want to do,” said Michael Devine, spokesman for the IRS’ Division of Property Appraisal and Liquidation Specialists, according to ESPN. “This happens when a person doesn’t dispute that they owe the money but can’t or won’t liquidate the property.”

While Darryl Strawberry put in the work, you too can own a piece of baseball history. The starting bid is at $550,000 and must be approved by a judge before the buyer starts collecting. The auction will take place in Illinois, but bids will also be accepted by mail.

We wish we could play baseball like Strawberry but we wouldn’t want to be in his shoes right now! If you have IRS debt it is critical to find qualified back tax representation! Millions of American’s owe back taxes, and we hope Strawberry found the representation he needed to resolve his back tax debt.  However, if we were his accountants he probably wouldn’t have had this problem in the first place!  Tax per return is usually the result of either not making estimated tax payments or improperly filing your return.  Darryl Strawberry, we are available if you are seeking new representation!

Do you owe over $10, 000 in back taxes? Call us today@: (888)737-0200 

or visit www.AdvocateTaxSolutions.com to learn more about back tax resolutions and IRS debt help.

6 Tips for Budgeting Last Minute Holiday Trips

If you’re going home or decided to take a last minute vacation for the holidays, you may be thinking it is too late or that it’s going to kill your budget. After all, doesn’t everyone always say that you have to book a trip far in advance or it will cost you? While it may be easier to find deals when you have more time, there are plenty of ways to save money on last minute planning.

1. Use Expedia or Travelocity to find flights

If you don’t already have frequent flier miles, find a cheaper airline like Spirit Airlines. These sites will also widen your search, and will include alternate airports in the search results. Most major cities have several airports or airports than can be reached within an hour or two hour drive.

2. Sign Up for Fare Alerts

Save time by letting travel sites notify you when fares drop. You can sign up for fare alerts on:

• Airfarewatchdog
• Yapta
• FareCompare
• TripAdvisor
• Kayak

3. Search one seat at a time.

If you are searching for more than one seat, airlines will only show the fares that are available for all travelers, even if some of the seats are available at lower prices. You can save money by splitting up your reservation.

4. Travel on Christmas Day

It’s probably not ideal but it most likely cheaper. If you didn’t book early enough, try looking on Christmas Day. There are fewer people traveling which will result in lower fares.

5. Be Willing to Be Bumped

If you have enough flexibility, be willing to be bumped. It won’t save you money right away but you could get a voucher for your next trip.

6. Look into buses and trains.

There are great alternatives for travel when flying is unaffordable. Taking the bus no longer means taking the Greyhound. Bus services like Megabus offer amazingly low prices and have Wifi and other amenities. Amtrak is also a viable option when flying is not.

With some creative planning, you can get to wherever you want to be during the holidays without paying too much. Have safe travels and a great holiday!

If you have any financial questions call your trusted advisers at 888-737-0200

or visit www.advocatetaxsolutions.com

Name(required)

Email(required)

Phone(required)

Amount Owed?

$0-$5,000 $5,000-$10,000 $10,000-$25,000 $25,000-$50,000 $50,000-$100,000 $100,000+

Comments

Submit

Δ

What Does the IRS Call Willful Neglect & What Does That Mean for You?

If you are filing your taxes this year, be careful! Remember that if the IRS even thinks there is an inkling of intentional fraud on your statements you could be facing jail time. Taxes are complex and can be confusing. You may assume that anything could be considered a simple mistake, but if the IRS deems it willful you would have the burden of proving that your mistake was unplanned.

How is a stupid mistake differentiated from an intentional mistake or willful neglect?

The IRS defines willful neglect is defined as “a conscious, intentional failure or reckless indifference to the filing requirement.” United States v. Boyle, 469 U.S. 241, n.3 (1985). Willful neglect is shown by your knowledge of your legal duty and report requirements. It means you made an intentional or voluntary choice to not comply.

But what does that mean for you?

“I didn’t know” won’t work for most mistakes. Willful blindness, avoiding learning about report requirements, can get you into IRS trouble. By law, you are responsible to learn filing requirements and to report exact truths when filing your taxes. A few mistakes may be inadvertent neglect but repeated mistakes can show deliberate disregard.

As the end of the year approaches, there is time to begin planning you tax preparations. After January 1099 and W-2 forms arrive and tax return preparations are right after. All Americans have to send tax returns and millions of Americans end up in IRS trouble because of not making estimated tax payments or improperly filing returns. We think it’s better to be safe than sorry! If you don’t want the stress of tax returns and determining what could or could not be willful neglect call our trusted advisers at Advocate Tax Solutions. It is quick, easy, and affordable for you!

Call 888-737-0200 or visit www.advocatetaxsolutions.com for a free consultation today!

 

Name(required)

Email(required)

Phone Number(required)

What is your biggest tax concern?(required)

Submit

Δ

Happy Cyber Monday! It Could Be the Last Tax Free Season for Online Sales

Happy Cyber Monday!

As the online holiday shopping frenzy begins today, we thought we’d share some advice for our e-commerce friends: ENJOY THE TAX FREE ONLINE MARKETPLACE WHILE YOU STILL CAN! While the National Sales Tax probably won’t happen this season, we bet you can expect to give away a good chunk of tax money to the government in the future.

The National Retail Federation expects that Cyber Week will see over $9 billion in total sales this year. While that’s a lot of online sales, e-commerce merchants are not celebrating. That’s because the government took notice of this industry’s huge success and Washington wants in. Currently the Marketplace Fairness Act has been passed by the Senate and residing in the House. This bill would allow states to collect taxes from residents who buy online purchases from out-of-state merchants. The buyers would be taxed at the point of purchase, and the retailers would remit the taxes to the eligible states and local municipalities.

As sales skyrocket this week, we expect the National Internet Sales Tax debate to heat up. Key lawmakers and major online retailers, such as the National Governors Association, Footlocker, and Amazon are eager to use the next few weeks of this Congress to push the long stalled bill.

Amazon, the country’s largest online retailer, is already collecting online sales tax and has made a deal with Massachusetts to collect sales taxes. This agreement only applies in the state and solely for purchase made on Amazon.

Because of companies like Amazon, we, at Advocate Tax Solutions, believe that The Marketplace Fairness Act will pass this next season, even if not in the exact form it is currently. The bill will be advertised as a way to even out the playing field for all online merchants.

Whether you are an online retailer or an avid online shopper, the impact of this bill could be huge. So get your Cyber Monday on and take advantage of this holiday’s tax free online market! We know we will.

 

Along with cyber week, tax season is coming up. Don’t forget to get your taxes in order. Call Advocate Tax Solutions at 888-737-0200 for any tax concerns and for tax preparation. Enjoy the holidays and get the tax relief you need!

Visit http://www.advocatetaxsolutions.com to learn more.

Name(required)

Amount Owed?(required)

$0-$10,000 $10,000-$25,000 $25,000-$50,000 $50,000-$100,000 $100,000+ I don't know n/a

Phone Number(required)

Email(required)

Submit

Δ

 

 

Bad News Saleen Fans: Automotive Company Out of Money and Owes Millions

       Saleen Automotive recently unveiled a modified Tesla Model S and announced plans to tune the 2015 For Mustang, but information contained in the company’s latest quarterly report has some wondering if Saleen will soon fall to the same fate as Hummer and Saab.

 

Jalopnik reported that as of September 30, “Saleen owed $583,900 in unpaid payroll taxes; $1,148,574 of accounts payable was greater than 90 days past due; $352,795 of outstanding notes payable were in default; and $398,176 is owed to a bank as of November 2014, which the Company has not paid and expects to be in default unless the bank agrees to another extension.”

Saleen’s cash assets were listed at $7,261 at the end of the quarter; definitely not enough to run a car company. The situation is so bad that Saleen is counting on another bank extension so the company can continue operating and hopefully turn things around.
This news casts doubt for Saleen enthusiasts and buyers. Saleen’s recently modified Tesla Model S, the Saleen FourSixteen, and the new Saleen 302 Black Label, that just started coming to the market, could be quickly put on hold.
It’s a sad day when ingenious companies come to a struggle due to financial issues and tax debts. We hope Saleen has the turnaround it hopes for and gets the representation it needs. Saleen if you need new accountants, we’re here for you!

 

Do you owe over $10, 000 in back taxes? Call us today@: (888)737-0200 

or visit www.AdvocateTaxSolutions.com to learn more about back tax resolutions and IRS debt help.

 

Name(required)

Email(required)

Phone Number

Amount Owed?

$0-$5,000 $5,000-$10,000 $10,000-$25,000 $25,000-$50,000 $50,000-$100,000 $100,000+ I don't know n/a

Comment

Submit

Δ

Tax Solutions for the Family Caregiver

This year you could claim your loved one as a dependent. Advocate Tax Solutions gets you the help you deserve with tax preparation services and back tax relief.

Being a family caregiver isn’t just time-consuming, it can be expensive. Most caregivers donate to provide quality care for the ones they love.

This tax season, you may be able to claim your adult family member or friend as a dependent on your income taxes. This would allow you to get a tax exemption on his or her medical costs including prescription drugs, doctor and hospital visits, dental and eye care, transportation to get to medical appointments, health insurance programs, and nursing care.
To claim your loved one as a dependent:
• You, the caregiver, cannot be claimed as a dependent by another taxpayer.

• Residency: They must be a resident of the U.S., Canada or Mexico.

• Relationship: They must be a spouse, dependent child or step-child, a parent or stepparent, father-in-law, mother-in-law, OR they must have lived with you all year.

• Elder’s income: Your loved one’s gross income for the year must be less than $3,900 and they cannot file a joint tax return with their spouse. (Social Security is usually excludable)

• Amount of support you provide: You must provide more than 50% of you loved ones financial support. This can include food, housing, medical transportation. If they live with you, you can include a reasonable percentage of your mortgage and utilities. Those who are in assisted living or remain in their own homes can qualify if the correct support levels are still met.

• Records: In order to claim a loved one as a dependent you must keep proof of payments and receipts.

 
Don’t worry about figuring out what deductions you are eligible for, Advocate Tax Solutions can give you the expert tax preparation services you need to receive the tax deductions and credits you’re eligible for.

Do you care for a loved one and have tax preparation questions? Call us today@: (888)737-0200 

or visit www.AdvocateTaxSolutions.com to learn more about back tax resolutions and tax preparations. 

 

 

Name(required)

Email(required)

Phone Number(required)

Amount Owed?

0-$10,000 $10,000-$25,000 $25,000-$50,000 $50,000-$100,000 $100,000+ I don't know

Submit

Δ

SIMPLE BACK TAX LESSONS FROM AL SHARPTON

Advocate Tax Solutions gives their views on the recent back tax problems of the rich and famous

 

“If we owed $4.5 million in ’08 then how could we owe this now, unless you’re saying that everybody just went to sleep on this and just gave us a pass, which is ridiculous,” Sharpton said in the CNN article.

This week Civil Rights Leader Al Sharpton blasted the extensive New York Times Report saying he owed $4.5 million in back taxes. Sharpton argued that it wasn’t  possible for him to owe that much. “The MSNBC host said in a press conference Wednesday that the $4.5 million was the original figure he was ordered to pay back in 2008, but that he has been making regular payments since then and the amount is now less,” reports CNN.

“If we owed $4.5 million in ’08 then how could we owe this now, unless you’re saying that everybody just went to sleep on this and just gave us a pass, which is ridiculous,” Sharpton said in the CNN article.

The Times articles describes poor planning, with Mr. Sharpton’s entities paying for and owning everything. This could include his personal items. If Sharpton is trying to merge personal and business expenses he is not adhering to the fundamental tax law that separates them.  While you can write off many things with a dual motive, your tax life will be easier if you avoid them and keep records.

The IRS keeps good records and so should you. Keeping records will help you in a tax dispute and can help you keep out of tax trouble.  The IRS audits may reject your tax deductions unless you have records to validate them.

Despite the great amount Mr. Sharpton owes in tax liens, he is not alone in his problems and went through the same process as everyone with back tax problems.  The process starts with notices. The IRS can only file a Notice of Federal Tax Lien after the IRS assesses the liability and sends a Notice and Demand for Payment, which states how much you owe. The IRS automatically has a tax lien if you don’t send the full payment within 10 days.

An IRS tax lien covers all of your property before and after the lien filing. IRS tax liens last 10 years, but it is better to remove them immediately. This involves paying the tax, interests, and penalties; or posting a bond guaranteeing payment.

Mr. Sharpton says he has been compliant to this process and is doing his best to pay his back taxes.  The IRS still has not revealed how much Mr. Sharpton owes and Sharpton believes his name is being dragged through IRS-ruin because of politics. He told Business Insider the negative story by the New York Times comes just as a grand jury is about to release its findings in the shooting of Michael Brown by a white Ferguson, Mo., police officer.

“Every time there’s a Sean Bell or a Ferguson or a Trayvon Martin, we go through my taxes. It’s the same agreement y’all. It’s the same thing we announced in ’09. It is the same thing we’ve been paying every month,” he said.

That could be possible, but either way it is evident that the best way to get out of IRS debt is to keep records and be compliant and active with your payment agreement.  Millions of American’s owe back taxes, and we hope Rev. Sharpton found the representation he needed to resolve his back tax debt.  However, if we were his accountants he probably wouldn’t have had this problem in the first place!  Tax per return is usually the result of either not making estimated tax payments or improperly filing your return.  Al Sharpton, we are available if you are seeking new representation!

Do you owe over $10, 000 in back taxes? Call us today@: (888)737-0200 

or visit www.AdvocateTaxSolutions.com to learn more about back tax resolutions and IRS debt help.

Name(required)

Email(required)

Phone Number(required)

How Much Do You Owe In Back Taxes?

0-$10,000 $10,000-$25,000 $25,000-$50,000 $50,000+ I Don't Know

Submit

Δ

Back Tax Help Blog| How a Back Tax Lien Can Affect Your Financial Profile and Credit!

Buying and owning your home can be a dream. It can be used to raise a family, or can be used to rent out the rooms and live of the rental payments. But a big enough tax debt can lead to your home being targeted by the IRS through an IRS tax lien. The IRS uses tax liens as one of many tools to get back tax debt paid. They’re used selectively, but are a powerful tool used to get taxpayers current with their tax bills. While a tax lien may seem complicated and scary, they’re quite simple. It’s essentially a security interest in your property. If your home has some equity to it, tax liens prevent you from enjoying it. But how does a tax lien affect you? Some homeowners who let the back tax debt linger think a tax lien won’t have an impact, but the truth is that a federal tax lien dings your financial future. An IRS tax lien can even affect more than just a home; it can attach to vehicles, securities, and business assets. If it attaches to your business then your rights to your business property will be compromised, including any accounts receivable. But the biggest effect of an IRS tax lien is on your credit. A tax lien is up there with not paying your bills when it comes to credit reports. If the lien is not released, it’ll damage your credit report for seven years. That’s because tax liens are formal documents filed in court. A Notice of Federal Tax Lien filed in a courthouse is a public document that everyone, including credit reporting agencies, will be able to see. You may have some time after the lien is filed where no one will notice, as tax liens aren’t reported to the credit reporting agencies (the IRS can’t do that). But after the credit reporting agencies (or inquisitive people) notice the public filing, it inflicts major damage to your credit score and can prevent you from getting credit. Another effect of a tax lien on your home is that any sale proceeds are reduced by the lien amount (which is generally the amount of unpaid back tax debt). The IRS can also show some mercy to tax debtors. It can remove a tax lien if the home is sold for less than the lien amount, and it can also make the tax lien secondary to a lender’s lien if the back tax debtor wants to refinance or restructure his or her mortgage. But if you want to keep your credit score top-notch, avoiding a federal tax lien is more important than you think. – See more at: www.advocatetaxsolutions.com

Advocate Tax Solutions Understands how to negotiate with the IRS and our team of experienced Tax Professionals have negotiated thousands of Offers in Compromise all over the country ridding and saving tax payers thousands in their Back Tax Debt.

Call 888-737-0200 today for a free back tax consultation and analysis!

ATS | Advocate Tax Solutions | Back Tax Help & IRS Forms

PLEASE ASK a professional if you are still unsure before discussing with an IRS Revenue Officer or filling the form out and sending to the IRS.  Below is a list of the most commonly used forms and a brief description of each:

 

 

–         2848 Power of Attorney – This form allows ATS to represent a client before the IRS.  It allows the attorney, enrolled agent, or CPA listed on the POA to contact the IRS and negotiate directly on the client’s behalf, request a stay of enforcement, and pull any relevant information needed for the resolution.

 

–         433A Collection Information Statement – This form is the centerpiece of all client resolutions.  This form lists all of the Taxpayer’s assets, liabilities, income and expenses.  This is what the IRS uses when determining whether or not to accept a proposed resolution plan

 

–         433B Business Collection Information Statement – This is essentially the same as the 433A except it is used for taxpayer’s with a corporation, LLC, or partnership.  It lists all of the business assets, liabilities, income, and expenses.

 

–         656 Offer in Compromise Application – This form is the IRS application for an offer in compromise.  This form lists the taxpayer’s contact information; balances owed, terms of compromise, reasons for requesting an offer and where they will get the money for the offer.  This form must accompany all OICs and it must list ALL tax liabilities of the taxpayer

 

–         656A Waiver of Offer in Compromise Fees – This form is used to waive the $150.00 processing fee and 20% down payment fee for an offer in compromise if the taxpayer has less than a certain amount of household income for their family size.

 

–         911 Taxpayer Assistance Request – This form is used to request assistance by the taxpayer advocate’s office located within the IRS.  We use this form when our client has suffered or is about to suffer a significant hardship at the hands of the IRS and we have done all that we can to prevent such hardship. 

 

–         9423 CAP Appeal Request – We use this form to request an immediate appeal within 48 hours to request immediate review for levies and or rejection of an IRS proposal.  ALWAYS review with an Advocate Tax Solutions professional prior to using this form or discussing with an IRS Agent.

 

–         12153 CDP Hearing Request – This form is used to request an appeal of a rejection of an installment agreement or currently-non-collectible status request because the taxpayer advocate or IRS representative will not approve an installment agreement or CNC request

 

–         843 Penalty Abatement Request – This form is used to request abatement of a taxpayer’s penalties that have accrued after the IRS has initially assessed a tax liability.

This Message was brought to you by Advocate Tax Solutions, LLC:  A professional Tax Corporation

 

Please visit our website or Social Media pages to view client recommendations and a plethora of literature detailing the available options with the IRS and State taxing authorities. Advocate Tax Solutions’ “A” rating and accreditation, licensing and flawless consumer report is listed with the BBB.

ATS | Advocate Tax Solutions

Main Phone: 888.737.0200 EXT 242 | Main Fax:  847.737.1556