Saturday, February 24, 2018

STRUGGLING WITH UNPAID BUSINESS AND PAYROLL FORM 941 TAX DEBTS?

STEPS TO GET OUT OF IRS TAX DEBT

Unpaid Business Taxes: Steps to Getting Out of Debt If your business has accrued tax debt over time, you may be worried about how you can possibly pay off the debt without sacrificing the viability of your business

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www.advancetaxrelief.com
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Call (800)790-8574



Small businesses are particularly vulnerable when tax problems surface and many end up closing their doors as they cannot stay profitable in the midst of the looming debt to the IRS.  Here are some steps to getting out of tax debt without worrying about your business shut down.

SOME TIPS TO SAVING YOUR BUSINESS TAX DEBTS:

Do not ignore the IRS:  If you have received any written notices about an unpaid business debt from the IRS, you should respond and begin working on a plan..  Ignoring the IRS only escalates the situation and can take it from bad to worse.  Penalties and interest begin to increase the debt that you owe. Currently, most tax debts compound at a rate of up to 14%, so waiting to address a tax issue will only put your business in an even more difficult situation.

Ask for a payment plan or an Offer in Compromise:  The IRS can put a tax lien on your property and eventually seize your assets, so your best bet is always to pay your tax debt off as soon as possible. One strategy is to apply for an installment agreement, which means that instead of paying your tax bill in one lump sum, you pay it off over time. 

This can be much easier for your monthly cash flow and keep your business from taking a big hit all at once.  An Offer in Compromise is another program that allows you to pay the IRS less than the full amount due. This process is lengthy and requires detailed financial records but nearly 25% of businesses that owe taxes to the IRS successfully use this approach to pay their debt.
 
If your situation is dire, explore other options: If your situation is truly dire, you may want to explore bankruptcy or requesting what is known as “uncollectible” status.  Bankruptcy can eliminate some of your tax debt and being put on an “uncollectible” status means that the IRS will leave you alone for a period of time (though you will still owe your debt plus interest and penalties).

Do not panic:  It is rare for the IRS to shut a business down because of unpaid taxes and they always send you notice of their intentions in writing. So, if you are already getting written correspondence from the IRS, act now, before the consequences worsen, but take some comfort in knowing that if you deal with the situation head-on, you will likely be able to work out a solution.

Get the assistance and support you need: Depending on your business’ situation and the amount of time and effort you have available to take care of your tax issue, you may find the need to partner with a reputable tax firm to help navigate this issues with the IRS.

Advance Tax Relief offers an experienced team of tax professionals who specialize in working directly with the IRS to solve difficult tax issues for businesses as well as individuals with back taxes or other tax issues. 

Contact us today at 800-790-8574 for more information or to schedule a consultation. Call us now at 800-790-8574 or email taxpros@advancetaxrelief.com
 
Calls and emails are returned during our regular business hours 8:30 am - 5:00 pm EST. So, if you have IRS Problems, Owe Taxes, have Past Due Un-Filed Tax Returns – Take action today! You should work with a local tax relief firm. Call Advance Tax Relief (800) 790-8574

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back taxes.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

Feel free to also learn about us and contact us via www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.

Over $50 million has been settled for our clients nationwide.

Advance Tax Relief is a Professional Tax Relief Organization

Friday, February 23, 2018

IS THE IRS DELIBERATELY TARGETING SMALL BUSINESS? BACK TAXES AND PAYROLL TAX ISSUES

Small businesses in the United States create more jobs than any other sector in our economy. Yet according to tax data from recent years, businesses with the lowest levels of income ($200,000–$400,000) get audited most frequently.

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www.advancetaxrelief.com
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Call (800)790-8574
***We have successfully resolved many small business audits.



While the Internal Revenue Service (IRS) tells the public that they keep their small business auditing practices random through a complicated and secret algorithm, many business owners feel that they’re being deliberately targeted for audits, and at least one expert agrees.

In 2016, Donald Williamson, a tax professor at American University’s Kogod School of Business, provided written testimony before the United States House of Representatives Committee on Small Business, arguing that “most audits are not random, i.e., the IRS has a secret algorithm for determining how likely each taxpayer is to have unreported income.”

“Employing this calculus, the IRS has concluded that small businesses are less likely to be paying their fair share of taxes relative to much larger enterprises,” Williamson continued, “a surprising conclusion in light of frequent press reports of multi-national corporations allocating billions of dollars of profits to no- or low-tax jurisdictions to avoid U.S. income taxation.”

THE IMPACT OF IRS TARGETING SMALL BUSINESSES FOR AUDITS

The IRS targeting small business owners is problematic for numerous reasons, but three main issues seem especially troublesome.

1: IT CAN CREATE DISTRUST
First, if the IRS is targeting small businesses but publicly stating otherwise, why are they being knowingly dishonest? While few people would go on about their love and admiration for the IRS, most of us still expect them to follow a certain ethical code, especially since they are charged with assuring we do the same.

How can the IRS go about the business of verifying taxpayer’s honesty and accountability and maintain credibility when they can’t be honest and forthright themselves?

2: IT IMPLIES FAVORITISM
Secondly — and this is Mr. Williamson’s main point — why is the IRS deliberately pursuing small business audits despite widespread suspicion (bordering on common knowledge) that multi-national conglomerates successfully exploit all kind of loopholes to avoid paying taxes?

RELATED: Small Business Taxes Are a Year-Round Commitment

If this is true, it topples the notion that everyone should be paying their fair share and implies a degree of collusion on behalf of the IRS to ensure tax breaks for the mega-rich while suppressing small business growth in the United States.

3: IT CAN LIMIT PRODUCTIVITY AND GROWTH
Lastly, and most important for business owners, these small business tax audits take a significant toll on their finances and day-to-day operations.

According to research conducted by the National Taxpayer Advocate, small businesses in the U.S. spend roughly 2.5 billion hours preparing tax returns and responding to IRS inspection of those returns. The Advocate also notes that this time equates to about 1.25 million full-time jobs.

Williamson states that 70 percent of small businesses hire tax professionals to prepare and file their returns and then represent them in their dealings with the IRS. These consultations from attorneys, accountants, and other tax professionals come at a total cost of more than $16 billion every year.

These expenditures are mostly unavoidable for small business owners under the current state of affairs since the ever-expanding tax code and list of regulations is simply too complex for the average business owner to understand and comply with on their own. And the incredible amount of time and money business owners spend trying to navigate these murky waters negatively impacts their companies’ efficiency and growth.

Small Business Audits: The Waiting Game
Not only are these audits inconvenient, but according to Williamson, the inefficiency of audits often makes them a drawn-out process, which can further drain a small business’ resources. In many cases, he notes, business owners’ responses to written IRS notices remain unassigned and unattended to for weeks or even months.

“Once a taxpayer’s response to a written notice is actually reviewed by an IRS auditor, it is often the case that the auditor will find the taxpayer’s response to be insufficient, [which sets off] a new round of correspondence consuming several more weeks or months,” Williamson says. Instead of this outdated method of correspondence, he suggests that these cases could be settled much faster with a face-to-face meeting or phone call.

Williamson’s main argument during his testimony in front of the House Committee is that the IRS appears to unduly and excessively focus on small business tax returns and that this is a gross misallocation of IRS resources. In closing his testimony, Mr. Williamson urged the IRS and Congress to “streamline and simplify the small business audit process.”

Facing a Small Business IRS Audit?  Call us now at 800-790-8574 or email info@advancetaxrelief.com

Calls and emails are returned during our regular business hours 8:30am - 5:00 pm EST.

So, if you have IRS Problems, Owe Taxes, have Past Due UnFiled Tax Returns – Take action today! You should work with a local tax relief firm. Call Advance Tax Relief (800) 790-8574

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back taxes.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

Feel free to also learn about us and contact us via www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.
Over $50 million has been settled for our clients nationwide.

Advance Tax Relief is a Professional Tax Relief Organization

HOW TO GET YOUR IRS TAX PENALTIES FORGIVEN - REDUCE YOUR TAX DEBT

In this case, the IRS could be the forgiving party in the equation. The First Time Abatement, or FTA, is available to you as a means of reducing or eliminating a tax penalty altogether.

ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
BBB A+ Rated
Call (800)790-8574
***We have abated millions in tax penalties and interest for our clients.



IRS GUIDELINES:

The IRS will generally consider issuing a First-time Penalty Abatement if you have had no prior substantial tax penalties with the IRS within the past three years.  The IRS may grant you a First Time Abatement (FTA) in one of these two instances:

Reasonable cause would apply if there was a legitimate circumstance that prevented you from filing your tax return on time, such as a serious illness (sorry, having a bad case of the Mondays doesn’t count in this case) or disaster.

Complying with IRS regulations would be  nearly impossible under these circumstances, and the IRS will take that into consideration when deciding whether or not to grant you a one-time penalty abatement.

The IRS may also grant you the FTA if they made an error in calculating the amount of tax you owe. Be careful, though: the burden of proof will be on you in this case, so you’ll need to provide enough supporting documentation to prove your claim.

The FTA is a little-known program that can be of great help to you if you meet the guidelines. After all, why pay tax penalties if they were calculated in error or if circumstances such as illness or disaster prevented you from filing your taxes on time?

IT’S TIME TO SEEK HELP

As with any other tax matter, the IRS has a myriad of codes, regulations and requirements…in other words, you’ll need to jump through some hoops. In this case, having a knowledgeable tax attorney or Enrolled Agent by your side will help tremendously. They’ll interpret the IRS codes, requirements, and jargon for you, and they will let you know if you qualify for the FTA program.

Facing tax penalties due to circumstances beyond your control or IRS error is one instance where the IRS can be a little forgiving if you file for the FTA. This program can reduce or eliminate your tax penalty altogether if you are able to substantiate your claim with the right documentation.

If you’re facing tax penalties due to illness, disaster, or IRS error, don’t wait. We have tax attorneys and Enrolled Agents on staff who can assist you with the sometimes tricky process of filing for the FTA program.

Call us now at 800-790-8574 or email noah.daniels@advancetaxrelief.com

Calls and emails are returned during our regular business hours 8:30am - 6:00 pm CST.

So, if you have IRS Problems, Owe Taxes, have Past Due UnFiled Tax Returns. Take action today! You should work with a local tax relief firm. Call Advance Tax Relief (800) 790-8574

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back taxes.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

Feel free to also learn about us and contact us via www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.
Over $50 million has been settled for our clients nationwide.

Advance Tax Relief is a Professional Tax Relief Organization

Wednesday, February 21, 2018

OWE BACK TAXES? HOW YOU CAN APPEAL YOUR IRS WAGE GARNISHMENT AND IT RELEASED!

Facing IRS wage garnishment is no joke. Unlike credit card companies or banks, the IRS doesn’t need to obtain a court order to garnish your wages. Instead, they send a notice to both you and your employer notifying you of their intent to garnish your wages, usually for non-payment of an outstanding tax debt.

As of today, our agents have released over 1500 wage garnishments. If the IRS is garnishing your wages, call us today for immediate relief (713)300-3965.

ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
BBB A+ Rated
Call (800)790-8574




The IRS will typically garnish your wages if all other attempts to collect on your tax debt have failed, especially if you haven’t responded to any of the IRS’s correspondence, or if you haven’t made a good-faith effort to repay your tax debt. Here are some tips on appealing your IRS wage garnishment:

You need to act quickly once you receive the Notice of Intent to Levy from the IRS. You have a 30-day grace period during which you can appeal. Don’t wait until the last minute. Take action the day you receive the notice. Call the IRS at the number shown on the letter. You can request an appeal if any of the following apply to you:

You received the IRS notice while you are filing for bankruptcy
The legal timeframe (statute of limitations) for the debt has expired
You’ve already paid the IRS in full
You were never given the chance to appeal the debt

You qualify to file for innocent spouse relief


USE THE CORRECT FORM

You must use the proper form in order to file your appeal. You can find IRS Form 12153 (Request For A Collection Due Process or Equivalent Hearing) on the IRS website. This form will formally start your appeal process, so be sure to fill it out completely and accurately. It will need to be mailed directly to the division indicated on your Notice of Intent to Levy; you won’t be able to email it or fax it. Be sure to send it via certified mail with a return receipt.


YOU CAN FILE FOR A GARNISHMENT EXEMPTION

If you feel you can’t afford to have your wages garnished by the IRS, you can file an appeal in court. You must provide documentation that supports your argument. The court will want to know about your total household income, the number of dependents you support, your fixed expenses (rent, mortgage, insurance, car payments, utilities, child/dependent care), any unique circumstances that prevent you from supporting yourself or your family, such as prolonged illness or permanent disability.


BE SURE TO BRING THE FOLLOWING TO COURT:

Income documentation: paystubs, 1099 forms, disability/public assistance award letters, copy of divorce decree showing or other document verifying child/spousal support income.
Expenses: rent/mortgage statements, property tax statement (if you own your home), copies of utility bills, copies of car payment statements, child/dependent care receipts, student loan statements, and statements for any other fixed expenses you have.
If the court rules in your favor, it will order the IRS to release the garnishment order or levy.

If the thought of appealing an IRS wage garnishment is intimidating, you’re not alone. Most people elect to hire a tax professional who can walk them through the process, explain their rights, and represent them before the IRS. Appealing an IRS wage garnishment can be a long, complicated and confusing process. You must be able to follow the IRS’s strict appeals protocol to the letter if you want a favorable outcome. A qualified tax pro can make sure everything is taken care of, down to even the  smallest detail.

Facing an IRS wage garnishment is a stressful experience. While you do have the option to file for an appeal and to seek a court order to release the garnishment(levy), hiring a tax pro is your best defense. A qualified tax advisor can file the appeal on your behalf, walk you through the appeals process and make sure your taxpayer rights are upheld.

If you’re facing an IRS wage garnishment, we can help. Get started today by calling (713)300-3965 or visit www.advancetaxrelief.com. You don’t have to go it alone.


Start right now to find out what the IRS really thinks about you. You’ll be given the foundation for success. Once you know what’s going on, you'll feel something you might not have felt in a long time: Hope.

Call us now at 800-790-8574 or email noah.daniels@advancetaxrelief.com

Calls and emails are returned during our regular business hours 8:30am - 5:00 pm EST.
So, if you have IRS Problems, Owe Taxes, have Past Due UnFiled Tax Returns – Take action today! You should work with a local tax relief firm. Call Advance Tax Relief (800) 790-8574

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online. Feel free to also learn about us and contact us via www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.
Over $50 million has been settled for our clients nationwide.


Advance Tax Relief is a Professional Tax Relief Organization

WHAT TO EXPECT WHEN STARTING A BUSINESS - TAXES

Ditching the 9-5 world is something that most of us dream about. If you’ve been fortunate enough to leave the 9-5 world behind to start your own business, your tax outlook will change considerably. 

Here is what to expect in starting your own business:

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www.advancetaxrelief.com
BBB A+ Rated 
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Obtain an EIN (Employer Identification Number) While an EIN isn’t required if you’re a sole proprietor, it is a good idea. You’ll reduce your risk of identity theft if you use your EIN instead of your Social Security number when filing your taxes.

Choose a business structure: While it’s important to consult with an attorney prior to launching a business, there are four possible business structures to consider:

Sole proprietorship
LLC (Limited Liability Corporation
Partnership
C or S corporation
Each business model carries with it specific implications for your taxes, so it is vital that you enlist a qualified attorney or tax pro before starting out. They can advise you on the best business model to suit your needs and goals.

You can restructure your business as your needs and goals change over time.

SOME COMMON DEDUCTIONS

As a business owner, you may have access to tax deductions that weren’t available to your
in your 9-5 days. They can include:

Business-related meals, travel, and entertainment
Business-related auto expenses
Rent of office space or for home office use
Office equipment
Health insurance costs for your employees
Start-up expenses

You’ll need to keep accurate records of all income and expenses in order to claim any of these deductions. Keep all receipts related to your business deductions.

There is a variety of productivity software packages and apps that can help you keep this chore manageable over time.

MAKING QUARTERLY TAX PAYMENTS

Unlike the traditional work structure where you paid your taxes at the end of the year, as a business owner you are required to pay quarterly taxes if:

Your business is a sole proprietorship, partnership, or S-Corp shareholder
You expect to earn $1,000 or more from business activities
You are required to pay at least 90 percent of your tax balance in order to avoid significant fees and penalties. If you’re not sure how to calculate your quarterly taxes, be sure to consult with a qualified tax professional.

Starting your own business can be rewarding: no set schedules, no office politics, and the ability to perform work you truly care about.

Along with the rewards of small business ownership come a unique set of challenges: determining the ideal business structure, managing expenses and deductions, and a significant change in how and when you pay taxes.

Make the start-up phase of your business as easy as possible by consulting with a knowledgeable tax professional who can provide valuable input as you structure your business and establish yourself as a business owner.

If you have IRS back tax problems, help is available. Start right now to find out what the IRS really thinks about you. You’ll be given the foundation for success. Once you know what’s going on, you'll feel something you might not have felt in a long time.

Call us now at 800-790-8574 or email taxpros@advancetaxrelief.com

Calls and emails are returned during our regular business hours 8:30am - 5:00 pm CST.

So, if you have IRS Problems, Owe Taxes, have Past Due UnFiled Tax Returns – Take action today! You should work with a local tax relief firm. 

Call Advance Tax Relief (800) 790-8574

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back taxes.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

Feel free to also learn about us and contact us via www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.
Over $50 million has been settled for our clients nationwide.

Advance Tax Relief is a Professional Tax Relief Organization

Tuesday, February 20, 2018

HOW TO DEDUCT THE HOME OFFICE EXPENSE FOR 2017

When it comes to deducting expenses for small business owners who work from home, the Internal Revenue Service (IRS) has two methods for Home Office Deduction: regular and simplified.

ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
BBB A+ Rated
Call (800)790-8574




According to the regular method, you would have to calculate the usage of your home for business as well as personal obligations. The IRS states that “Direct business expenses are fully deductible and the percentage of the home floor space used for business is assignable to indirect total expenses.”

Self-employed taxpayers must file Form 1040, Schedule C, Profit or Loss From Business (Sole Proprietorship), and compute this deduction on Form 8829, Expenses for Business Use of Your Home.

If you’re looking to reduce the paperwork and burden of keeping records, the simplified method is your ideal option. The IRS allows a prescribed rate of $5 a square foot for business use of the home with a maximum allowable deduction available based on up to 300 square feet.

This would require taxpayers to complete a worksheet in which the results would then be included on the tax return.

The necessary forms within the simplified method are below:

Self-employed individuals can claim the home office deduction on Form 1040, Schedule C , Line 30.
Farmers claim it on Schedule F, Line 32.
Eligible employees claim it on Schedule A, Line 21.
Research shows that in the past, approximately 26 million Americans have home offices, but only 3.4 million taxpayers claim home-office deductions. While the area you are claiming must be used exclusively and regularly for conducting business, it can be worth the extra effort in figuring out exact costs.

Don’t miss this deduction opportunity in fear of facing a tax audit. After all, Advance Tax Relief is here to help! Call us today to determine whether or not you qualify for the Home Office Deduction.
Call us now at 800-790-8574 or email taxpros@advancetaxrelief.com

Calls and emails are returned during our regular business hours 8:30am - 5:00 pm.
So, if you have IRS Problems, Owe Taxes, have Past Due UnFiled Tax Returns – Take action today! You should work with a local tax relief firm. Call Advance Tax Relief (800) 790-8574

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

Feel free to also learn about us and contact us via www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.
Over $50 million has been settled for our clients nationwide.

Advance Tax Relief is a Professional Tax Relief Organization

IRS REFUNDED YOU TOO MUCH MONEY - WHAT YOU SHOULD DO?

You know that feeling you get when you find some money that you didn’t know you had? Or maybe you’ve overpaid on a bill, like an escrow account for example, and an unexpected check shows up in the mail.

ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com
BBB A+ Rated
Call (800)790-8574





That’s a great feeling. Sometimes people are even fortunate enough to stumble across money lying on the ground whose owner apparently is nowhere to be found. Even finding a $20 bill in your coat pocket when you weren’t expecting it could be cause for celebration. The bottom line is it’s always nice to be on the receiving end of money that you either didn’t know you had or that you weren’t expecting to get.

With the IRS Nothing’s For Free

In much the same way, receiving a tax refund is usually a great feeling. After all who doesn’t like to get a few extra hundred or even a few thousand dollars in one fell swoop? In all of these scenarios this money is typically yours to keep without any repercussions. However, what would you do if you ended up getting a much larger tax refund than you were expecting? The tax season ended just a few weeks ago, but while many people have already received, deposited and even spent their refunds, those who waited till the deadline to file could also still be waiting for their refund to come. So what should you do if the IRS refunds you too much money? Can you simply keep it and chalk it up to the belief that it’s their error so it’s their problem? Do you sit on the check for a while and wait it out to see if the IRS figures out its mistake? Or, do you fess up and let the tax agency know they screwed up?

Avoid a Spending Spree

Of course it would be very tempting to keep the extra money and it might feel good to give the IRS a little “payback” so to speak. However, if the IRS overpays you don’t start making plans to take an extra vacation, buy a new car or give your savings account an extra boost. Instead be prepared to give it back. Sometimes, the IRS does find mistakes in your calculations or entries and it will send you a bigger refund than you were expecting. If that is the case it will most likely send you a notice in the mail explaining the reason. However, if you don’t receive an explanation and you know you were over-refunded then don’t spend the money because chances are the IRS will discover its mistake sooner or later.

Act Fast and Fight to Give it Back

The best thing you can do in this situation is contact the IRS immediately and let them know what happened. In fact, if you hold onto the money and the IRS discovers the error six months, or even a year later, they will actually not only expect you to return the full amount, but they will also ask for interest and in some cases penalties. That sounds completely unfair, but it happens more often than you might think. One couple ended up in a heated battle after the IRS refunded them too much money. Even though they attempted to return the money right away and were initially turned away by the IRS, eventually the agency came calling and tried to force them to pay interest. They fought the IRS for two years before the issue was finally resolved. The lesson here is to do whatever it takes to pay the money back ASAP if you know the IRS has made a mistake, even if they tell you everything is fine.

Make Sure It’s Not Your Error

Tax policy states that penalties and interest depend on who committed the error. According to the IRS, “taxpayers are not liable for penalties and interest on erroneous refunds until the IRS asks the taxpayer for repayment. But this is contingent upon the presence of both of the following: The IRS must be clearly at fault in generating the erroneous refund; and the amount of the refund cannot be greater than $50,000.” However, be prepared to fight because the IRS doesn’t give up easily and the agency will always look to find fault in the taxpayer, rather than itself.

If It Seems to Good to Be True it Probably Is

So to recap, if the IRS overpays you don’t spend it and do everything in your power to return the money as swiftly as possible. It’s great to receive an unexpected check in the mail but if it comes from the IRS then always assume a mistake has been made until the agency can assure you otherwise. In the meantime, if you need a little extra cash, then start searching all those extra coat pockets. You might be lucky enough to find enough to buy yourself a nice dinner without having to worry about the IRS charging you any penalties or interest.


GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return and past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back taxes.

Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.


Feel free to also learn about us and contact us via www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.
Over $50 million has been settled for our clients nationwide.

Advance Tax Relief is a Professional Tax Relief Organization.