IRS Enforcement and Past-Due Tax Returns–Patrick Cox, TaxMasters

The Election and Your Taxes

One of the things TaxMasters is good at is watching trends. For instance, we know that the IRS lays lower than usual heading into an election. Now with the election out of the way, we strongly suspect that letters are going in the mail this week and next. One of the easiest issues for the IRS to identify is the absence of past-due tax returns. Past-due tax returns also happen to be one of the things we can help you resolve fairly quickly if you beat the IRS to the punch.

Over the next few weeks, a whole new crop of audit notifications, substitutes for unfiled and past-due tax returns, inquiries about deductions, questions about dependents and unreported income, and notifications of taxes due will be making their way to people. If you receive any one of these letters, particularly if it’s a Notice of Intent to Levy and Notice of Right to a Hearing, contact us as soon as you get it. You are indeed in need of tax representation. 

Tax Enforcement Trends into 2009

There are several things we expect the IRS to focus on going into 2009. There has been quite a bit of buzz lately about the IRS tightening their grip and increasing their effort to monitor sheltered offshore income. This filing season, the IRS will watch foreign bank account reports (FBARs) more closely than in the past and will automatically penalize those who file the reports late.

The National Association of Tax Professionals (NATP) predicts that 2009 will see an increase in corporate and self-employed (Schedule C) audits. The intent would seem to be to generate more revenue, make up for the current tax shortfall, and encourage compliance in the face of the current economic downturn. The push to collect revenue will continue to pick up steam, especially as Commissioner Schulman works to prove himself to an entirely new administration.

If you are already having problems with the IRS, you need to resolve them now. If you have past-due tax returns or unpaid or delinquent taxes, it is in your best interest to call us before the IRS contacts you.  We will get started right away.  We will get between you and the IRS and make them treat you with respect.

Until you need us,

Pat Cox