Blog

How to Prepare for Tax Season

Tax season is fast approaching, and so is the dread that goes along with it. While the tax code may seem like an endless collection of complicated regulations, lengthy forms, and confusing deadline, getting through tax season can actually be quite easy. All you need to do is carefully and methodically tackle each step of the process before moving on to the next step.

Gather Your Documents

While you can start planning for tax season in December or January, you won’t be able to come up with more than a rough estimate until February. This is because employers have until January 31st to issue the forms that state your final income — W-2s for salaried employees and 1099s for independent contractors. Until then, you may want to start gathering your receipts for charitable donations, business expenses, and any other deductions you plan to claim.

Read more

The IRS has 10 Years to Collect, But …

When I obtain transcripts from the IRS for my clients I always look for the day the tax was assessed because the IRS only has 10 years to collect the debt. However, there are some events that can occur over that period of time that stops the Statute of Limitations temporarily. They include offers in compromise, collection due process hearings, requests for installment agreements, and bankruptcies.

Read more

A Quick Guide to IRS Form 843

Understanding the opportune moment to file for a refund or request an abatement holds significant importance for individuals looking to enhance their financial position. Whether rectifying errors, responding to changes … Read more

IRS Myth 1 People Who Do Not Pay Their Taxes Are Bad People

IRS Myth 1: People Who Do Not Pay Their Taxes Are Bad People

I talk to taxpayers, clients, and prospective clients either on the telephone or in person every day. People who do not have tax problems do not realize that just because you owe the IRS money, are getting audited, or have not filed tax returns does not mean that you are a bad or evil person. Most taxpayers cannot identify with these problems, but I can tell you that usually a situation beyond the person’s control is what gets them into trouble.

Read more

The IRS Is Impossible To Deal With

IRS Myth 3: The IRS Is Impossible To Deal With

The IRS has rules that they must follow. There is the Internal Revenue Code. That is the law and whether they like it or not, they must follow it. They also have the Internal Revenue Manual which they follow 100% of the time as long as they like what it says. When they do not like what it says, they follow it 0% of the time. The Manual contains their rules and guidelines, but it is this not the law, meaning taxpayers are not bound by it. It is my job as a Tax Attorney to hold their feet to the fire and make sure that they comply with the law and follow their own procedures.

Read more

IRS Myth 4

IRS Myth 4: This Is America. You Are Innocent Until Proven Guilty.

With the IRS, it is the other way around. The burden of proof is usually on the taxpayer. If a Revenue Agent auditing your tax return thinks you under reported your income or over reported your expenses, it is up to you to prove you did not. It can be difficult to prove a negative, such as trying to prove you did not have as much income as they say you did.

Read more

Ⓒ 2024 Steven N. Klitzner. All rights reserved. | Privacy Policy | Terms of Service | Website by Vocational Media