Does your firm offer a free consultation to people who have tax problems?

Absolutely. Call us to discuss any tax matter.

 

Are IRS and FTB audits conducted randomly?

Only a very small percentage of audits are conducted randomly. See: IRS and FTB Audit Targets and Why You Should Fear the IRS, FTB, and Federal Government.

 

What happens if the IRS or FTB detect possible fraud?

First, they may conduct a full audit. In addition, they may decide to audit prior tax returns submitted by the same taxpayer. There is no substitute for hiring an experienced, qualified tax return preparer.

 

How long will it take to get my tax problem resolved?

It depends on the number of government agencies or departments involved, how far your case has progressed, which government agencies are involved, and other factors. The majority of tax problems are resolved within two to six months. You can be certain that we will get started immediately after being authorized by you in writing and that we will keep you fully informed as we make progress.

 

Who has the burden of proof when dealing with an IRS claim?

When dealing with the IRS, most taxpayers think the IRS has the burden of proof to show that they have a valid claim. In the United States, we are used to the idea that we are innocent until proven guilty and the government must prove its case beyond a reasonable doubt. This is not the case with the IRS. The burden of proof is on the taxpayer to prove they did everything according to the law.

 

How much money can we save by using the tax resolution services of your accounting firm?

Even after a free consultation, we cannot be absolutely certain because many factors affect the outcome of each case. We will provide you with our best estimate, keep you fully informed, and provide you with excellent representation at every stage of the process. Unlike some "tax resolution specialists" that advertise on the radio, we do not make false promises or suggest unrealistic results. We do promise that every effort will be made to save you as much money as possible and that we will attempt to resolve your tax problem as soon as possible, consistent with obtaining a good result.

 

How do you keep your fees as low as possible?

We do not spend money on expensive radio and television advertising and we do not pay celebrity spokespeople for their endorsements. Almost all of our clients are generated from referrals or this website.

 

How are you compensated?

We are generally compensated on a flat fee basis which we quote after your free initial consultation. The fee will be based upon a number of factors including the number and identity of the government agencies and/or departments involved in the matter.

 

Are IRS and FTS agents more likely to audit someone with a high income, middle income, or low income?

No one is safe. Some agents prefer to audit lower income taxpayers because they often don't have the money to challenge the government and pay whatever is demanded.

 

What is an IRS letter and what is its significance?

An IRS letter is an official notice sent by the Internal Revenue Service via U.S. mail regarding a taxpayer's federal tax return, account, or a compliance issue. If a taxpayer fails to respond to an IRS letter, the IRS can levy bank accounts, garnish wages, and/or seize other property without further notice. IRS letters may include final deadlines.

 

The IRS keeps showing up at my business to talk to me. My employees are starting to ask questions and are getting very uncomfortable. What can be done?

Once you sign a power of attorney making us your agent, the surprise appearances will stop because the IRS will be required to deal with us.

 

Can the IRS or Franchise Tax Board close down a profitable business if it gets behind in the payment of payroll taxes?

The IRS and FTB consider the non-payment of payroll taxes to be a form of theft which makes the non-payment a very serious matter. Consequently, the payment of payroll taxes should be the first priority of every business. The use of these funds by the business, even on a temporary basis, is a major mistake. It is important to understand that all employees, officers, and directors who have the responsibility of directing the collection and payment of payroll taxes can be held personally liable to the IRS and/or FTB for any payroll taxes, penalties, and interest not paid by the business.

 

I am being investigated by the IRS because they have determined that my savings account balance is very high given my monthly income. My high cash balance is not the result of not reporting income. It is the result of selling some of my personal property. Can the IRS investigate a taxpayer simply based on their belief that the person's savings is high?

Yes. Sadly this is true. Having substantial cash in a bank will sometimes draw the attention of the IRS which routinely monitors personal bank records. See: Taxpayers Right to Retain Representation When Dealing With the IRS and IRS and FTB Audit Targets.

 

The IRS agent that came to my office told me he wanted to help me. Is there any truth to this statement?

No. The IRS is not there to help you. The agent's mission is to collect every dollar possible as fast as possible using every method possible. The agent is not your friend. He or she represents the IRS which is a collection agency. If given the opportunity, the government will seize the last $20.00 from your bank account. If you have broken the law, they can accuse you of criminal conduct and can even attempt to put you in prison. They do not care about your family.

 

Is the IRS required to obtain a court judgment before they can seize a taxpayer's bank account or other assets?

Unfortunately, the federal courts and Congress have given the IRS and the State Franchise Tax Board the power to seize a citizen's property without a court trial when it involves a tax bill. The burden is then on the taxpayer to prove that the government seized assets that exceed the amount owing.

 

What is an Offer in Compromise?

It is an agreement between a taxpayer and the IRS that resolves the taxpayer's debt for less than the full amount owing. Our firm can assist you in getting an Offer in Compromise approved by the IRS if you qualify.

 

Will an Offer in Compromise damage my credit standing?

No. It may help your credit standing if it results in the release of a lien.

 

Is there any reason I shouldn't represent myself at an audit?

Yes. If you represent yourself in person, the agent will have an opportunity to question you about anything outside the original scope of the audit. In addition, the agent may take advantage of you unless you are knowledgeable about the law and your legal rights.

 

What is most likely to result in an audit?

• Self-Employment
• Home Office Deductions
• High Income
• Unresolved Taxable Income
• High Percentage of Itemized Deductions
• Errors on the Return
• You are a Political target

 

Is there a limitation on audits?

Yes. There is a three-year statute of limitations on IRS audits. The three-year period starts upon the filing of each tax return.

 

Is there a limitation on the IRS collecting a debt?

Yes. There is a ten year statute of limitations on the collection of a debt by the IRS.

 

What can the IRS or FTB seize and sell for unpaid taxes?

Your home, bank accounts, stock, automobiles, wages, retirement accounts, rental income, dividends, the cash value of your life insurance, and accounts receivable are some of the assets that can be seized by the IRS or FTB to pay taxes.

 

In what areas do you represent clients?

Our firm represents clients throughout California.

 

What happens if I have unfiled tax returns and unpaid taxes?

Filing your tax returns is a top priority and is required to resolve your tax problems. We can prepare any unfiled tax returns for you.

 

We are behind in paying the IRS both payroll and income taxes. The interest and penalties have been so severe that we can't possibly get caught up. Their collection actions have nearly destroyed our small business. Will a bankruptcy help? We don't have much time before we lose our business which is our only source of income. We also have five employees at risk of losing their jobs?

The IRS and Franchise Tax Board (FTB) have been the "final straw" that has closed thousands of businesses causing hundreds of thousands of job losses. A bankruptcy may help. Since some, but not all taxes are dischargeable, it is necessary for an experienced business bankruptcy attorney to evaluate your individual situation.

 

What is the penalty for not filling federal income tax returns?

Any person required to pay any estimated federal income tax, or tax, or required to file a tax rectum, keep records willfully fails to pay such estimated tax or tax, file such return, keep such records, or supply such information, regulations, shall supply any intonation, who at the time or times required by law or in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation). than 1 year, or both, together with or imprisoned need not more costs of prosecution.

As you can see, the government has incredible power over the people. Based on the current law, there could easily be more people in prison than outside.

 

What is the crime of tax evasion and what is the penalty?

To establish the elements of tax evasion, the government must prove the following elements, each beyond a reasonable doubt:

• An affirmative act constituting an attempt to evade or defeat a tax payment thereof:
• An additional tax is due and owing; and
• The act is willful.

Any person who willfully attempts, in any matter, to evade or defeat any federal income tax shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.

 

What is the Taxpayers Bill of Rights?

The Taxpayers Bill of Right is a publication (Publication 1) of the IRS that starts with a misrepresentation in its first paragraph, "IRS employees will explain and protect your rights as a taxpayer throughout your contact with us". Only a fool believes the IRS and FTB will protect your rights.

The truth: The IRS is a collection agency for the federal government. Its job is to collect every dollar they can from each taxpayer. The IRS does not represent your interest.

The Taxpayers Bill of Rights publication can be found on the IRS website.

 

Is it true that the bottom 47% on the income scale pay absolutely no federal income taxes?

Yes. It is also true that the top 1 % of earners pay 40% of all federal income taxes and the top 10% of earners pay 73% of all federal income taxes. These are statistics from our own federal government.

 

What is the effect of having a tax lien filed against me my spouse?

The IRS will file a Notice: office in your county according to the IRS taxpayer of Federal Tax Lien. The lien IRS on all lien is a public notice. The notice states: property and rights or for the taxes, penalties, interest. FTB will file their own lien. Such liens with the County Recorders notice that you owe taxes. There is a lien in favor to property belonging to this credit. We can help you by getting both IRS and FTB liens removed.

 

What is the power of attorney?

In order for our firm to represent you before the IRS and FTB we for you to sign two separate power  of attorney forms. The forms require the will need IRS and FTB to communicate only with us which means they are no longer able to harass you. Both forms can be found on this website.

The National Treasury Employee Union is very powerful. Union dues are mandatory with 956% of all political contributions being used to elect.

 

To whom does the IRS report?

The Commissioner of Internal Revenue. (or IRS Commission) is head of the IRS and is appointed by the President Commissioner reports to the of the United States. The to the Secretary of the Treasury, who reports President of the United States. The Commissioner also provides direct advice to the President.

 

Does the IRS presume a taxpayer is innocent when attempting to collect taxes?

No. The IRS does not need a court judgment before seizing a taxpayer's assets such as bank accounts, stocks, and bonds. They simply seize the property of the taxpayer who must then attempt to challenge the action of the government.

 

Who can the IRS contact about the fact that l owe taxes?

A standard IRS notice that is sent to citizens for the purpose of intimidating them reads as follows:

Notice of Potential Third Party Contact We are attempting to collect unpaid taxes from you, Generally,  our practice is to deal directly with a taxpayer or a taxpayer's duty authorized representative. However, we sometimes talk with other persons when we need information that the taxpayer has been unable to provide, or to verify information we have received. This notice is provided to tell you that we may contact other persons, such as a neighbor, bank, employer or employees, and will generally need to tell them limited information, such as your name. The law prohibits us from disclosing any more information than is necessary to obtain or verify the information we are seeking. Our need to contact other persons may continue as long as there is activity on this matter. If we contact other persons, you have the right to request a list of those contacted.

 

Wrongful Tax Deductions - Caution

One of the most obvious ways that some tax filers attempt to deceive the Internal Revenue Service (IRS) is when they try to claim additional, last minute deductions. When they see their tax bill or refund amount after the tax payer has finished the initial interview, they will have them put their return on hold because they suddenly remembered some "additional expenses" that they forgot to include earlier. Then they return with a list of these items (without any receipts or supporting documentation) and ask the preparer to add them into the return. Another way to lower any tax bill is to claim a dependent or two since it can give the filer "Head of Household" status. With dependents, taxpayers are also able to add exemptions and tax credits for dependents under age 17. This can be a major point of contention for divorced couples, especially those who share custody of one or more children. For many in this situation, it becomes a race each year to see who can file first and "win" by claiming the kids. Of course, when one spouse claims one or more dependents unjustly, the other spouse can notify the IRS of the violation and have the undeserved refund disallowed. However, this process can take months and can be difficult for the spouse who should have claimed the children.

 

Can HOA fees be deducted by homeowners on federal or state tax returns?

Generally, no, but there are two exceptions: (1) If your home is used for business, you may be able to deduct a portion of your HOA fees, and (2) If your home is being used as a rental property, you can deduct your HOA fees as a business expense. Always check with your tax adviser to find ways to maximize your tax deductions.