Private Collection of Taxes Owed

Pursuant to the Fast Act passed in December 2015, The IRS is once again allowing private collection companies to pursue collection of taxes owed. These companies must follow provisions of the Fair Debt Collection Practices act. If you don’t want to work with these collection companies, you must submit a request in writing to the assigned agency.
Beware of scammers pretending to collect on behalf of the IRS. To make a complaint about the agency or its employee, call the TIGTA hotline 800-366-4484.

Typical Profile – The Serial Defaulter

Taxpayer enters into installment agreement with the IRS. In order to stay in the program, taxpayer must be compliant in all future tax years. Compliant means that all future returns have to be filed and all taxes due for that year must be paid no later than the extended due date for filing the return. If taxpayer does not do this, then the installment agreement is void and all deferred taxes are due immediately. I help clients remain compliant and avoid getting on this painful treadmill.

Typical profile – An audit of Schedule C

Taxpayer is self employed and the business is unincorporated. All the net income flows to Schedule C on Form 1040. Taxpayer owes income tax and also owes social security tax and medicare tax times two. Schedule C is one of the most frequently audited tax forms. I help taxpayers being audited and those who are yet to file returns that include Schedule C.

Denson Pepper CPA Acworth GA 678-797-5241

Typical profile

Taxpayers have filed income tax returns but they were prepared incorrectly and the IRS sends notices asking for more information. I see more of this as people pay for off the shelf software and prepare and submit returns themselves. The taxpayers believe that they are correct and don’t respond to the notices. The notices accumulate and involve more than one year.
Soon liens are recorded and levies threatened. Taxpayers call the IRS to discuss and then become more frustrated.
Sometimes the IRS will allow a corrected tax return to be filed.
We can help.

Typical profile:

Husband and wife are both employees and are each issued a w-2.Together they earn in excess of $100,000 a year.They jointly own a home and the mortgage is in both their names. There is little equity in the home. One or both are repaying school loans. Both participate in their employer’s retirement plan. They have two children. Every year they owe taxes when they file their return. One or both receive year end bonuses with inadequate income tax withheld. Taxes owed begin to rise year after year. Though solidly middle class, they live on a tight budget with little cash to spare at month’s end. Sometimes they don’t file their income tax return because then the amount owed only grows. The IRS might not be currently pursuing the taxpayers. They hope that they can stay under the radar until they are able to repay everything at once. I help negotiate a repayment plan with the IRS that helps end this cycle. There is no magic bullet solution. You have to actively engage the IRS to work out a repayment plan. The uncertainty is often the worse part.

How To File A Tax Return After A Long Hiatus?

A lot of taxpayers have not filed income tax returns for many years.
As they near retirement, they have to calculate funds needed to retire.
What a financial planner can not tell them is the impact of a federal levy
for unpaid taxes. The IRS can go after your net worth, social security
and pensions.
It is always wiser to address the problem when there are more options.
I listen first. If I can help you and you want to be helped, I can.

Denson Pepper CPA Acworth GA 678-797-5241