IRS/FTB Frequently Asked Questions

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.

 

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.

 

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. rue that the top 1% taxes and the top These are 10% of 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.

 

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 progressive government agencies, love involved, two to six and other factors. The majority of will get started am fully after being authorized by tax problems are resolved within you in writing and that we will keep you fully informed as we make progress

 

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.

Nationwide Accounting Services
818-991-9019