Tax Masters Patrick Cox–When Tax Representation Needs to be a High Priority

I received an email today from a friend that had a story I’d heard before. It’s been used by Stephen R. Covey and many others to demonstrate a point about priorities. It goes like this, you fill up your bucket with the big rocks first (highest priorities) and then add the pebbles (second-level priorities), then the sand (lower priorities), then the water. The point is to handle your largest priorities first and let the others fill in the gaps. To go at life the other way around is to let the most important things slide off the list, leaving them undone. While we often think of this in terms of our family, health, spirituality, and personal well-being, sometimes our finances force us to shuffle our priorities. Particularly in today’s climate where every other word out of the politicians is “crises” and where scams and fraud alerts are on the rise, you may very well be in a position that forces you to elevate your finances and your ability to pay your taxes to a higher priority. So when does your tax problem become something you can no longer ignore?

Could the IRS Think You are a Scammer, a Schemer, an Evader, or are Guilty of Tax Fraud?

There’s an argument to be made that if you were putting all the large rocks in the bucket first, you would not wind up in tax trouble to begin with. While there is a degree of truth to this, it serves as nothing more than a finger wagging I-told-you-so if you are facing back taxes. As the founder of Tax Masters, I’m not here to point fingers at anyone. If you are someone in this situation, let’s start afresh. Regardless of how you wound up with delinquent taxes and IRS tax debt, the IRS tends to assume the worst about you. They can classify three or more unfiled tax returns as tax evasion. They can allege that serious mistakes or intentional ommissions on a return are in fact tax fraud. As we’ve seen in recent headlines, tax scams and schemes to perpetuate fraud and even identity theft are on the rise. Even the current Secretary of the Treasury was caught misreporting his taxes and having to pay a hefty amount of penalties and interest to the division of the government he now runs. If some of this feels a bit upside down and chaotic, you’re not alone.

The Longer You Wait, The Worse the Problem Gets

If the IRS has contacted you in any way whatsoever claiming that you owe them more money than you have paid, you have a tax problem. And as much as I want to tell you otherwise, the IRS will stay after you until they get the money they think you owe, making problems for you that don’t go away on their own and that will seriously affect your ability to focus on what should be your highest priorities. If you have been contacted by the IRS, don’t wait until you are facing imminent aggressive collections actions like a tax lien, IRS levy, wage garnishment, or Social Security garnishment to address the issue. If you have been notified that you are being audited or that the IRS has not received even a single past-due tax return, it is time for you to make tax representation a big-rock priority. And if you have received notice of intent to levy or intent to place a lien, you are in an extremely precarious position and you need to hire tax representation immediately.

At Tax Masters Complaints about the IRS are Not New

As always, Tax Masters is here to help. You can spend the next several months aggravated, angry, fearful, and complaining every step of the way about what the IRS is doing to you. But you could also call us today and let us get between you and the IRS. Tens of thousands of people with tax problems have engaged us and been completely satisfied with the services provided by Tax Masters. Complaints about the IRS and IRS tactics are many. We see agents do unconscionable things to try and strong arm taxpayers into payment arrangements they can’t afford. If you have IRS tax debt, call us. The sooner you get us involved as your IRS tax representative, the better shot you have at saving money and regaining full compliance quickly and with as little distraction to you as possible.

Don’t Evade, Scam, or Scheme–Seek Representation Instead

If you are a tax evader, scamming and scheming to avoid paying the IRS at all costs, or if you are one of the unlucky few who are attempting to challenge the constitutionality of the IRS, you are heading into serious trouble. We strongly encourage you to turn from either of those paths and call us. While we do not condone tax evasion and will not represent tax cheats, scam artists, or fraudulent filers, we can help you if you are genuinely seeking to return to compliance with the IRS. We have heard probably every complaint there is about the IRS. Yours will likely not be new to us. And the good news is, you don’t have to lose sleep over this any more. Make tax representation a big-rock priority and call us. We’re here to help.

Until you need us,

Patrick Cox Tax Masters

Tax Masters Patrick Cox Fighting the Back Tax Trap

Another case just came across my desk that made me want to revisit what I’ve coined the back tax trap, discussed previously in the post titled Avoiding Unfiled Tax Returns - Patrick Cox Tax Masters and in Unfiled Taxes and Back Taxes - The Back Tax Trap.

Unable to Pay Back Taxes

Every year, we see an increasing number of taxpayers falling into this category. They typically arrive at the back tax trap by one of two routes. The first involves carrying tax liability past the time it’s due. If the taxpayer still doesn’t have the tax paid in full when they need to file taxes for the following year, they are discouraged and less likely to file on time. Particularly if tax debt increases over several years running, the taxpayer, out of frustration and despair, simply stops filing tax returns. The tax debt quickly builds and spirals out of control. This is not a good place to be and is the situation many retirees and fixed-income taxpayers find themselves in.

One, Two, Three Unfiled Returns

The second route typical of people who wind up in the back tax trap involves people who don’t have tax debt or tax problems, but for whatever reason fail to file a tax return for a given tax year. This happens for all kinds of reasons, from plain forgetting to file to not being able to file due to military service or a number of other situations. If the IRS doesn’t contact the taxpayer or file an SFR (substitute for return) in that first year, the taxpayer can be lolled into a sense of apathy, thinking perhaps that the IRS isn’t paying close attention. So they miss the second year, then the third. This can go on for a number of years, but when the IRS finally decides to act, the ramifications of the taxpayer’s non-compliance can be overwhelming. This tends to be the situation that plagues younger taxpayers.

When Unfiled Tax Returns Become Tax Evasion

Regardless of how a taxpayer winds up in the back tax trap, the weight of mounting IRS debt soon grows from a molehill into an unmovable mountain. Penalties and interest are the enemy of everyone with a tax debt. And continuing to allow tax years to go by without filing compounds and complicates the problem, making the taxpayer look like a tax evader to the IRS.

At Tax Masters, we take the time to understand your specific situation from your perspective and then recommend a course of action to solve your tax problem. We then contact the IRS on your behalf to make sure there is nothing in your file that you don’t know about or that might have been overlooked. At this point, we share with you exactly what the IRS thinks you owe and what collection actions are pending. Often our clients are in a bit more trouble than they realize. This review process with the IRS lets us redirect tactics and adjust the strategy for combating your specific tax problems.

File Every Year

The worst thing you can do as a taxpayer is to not file your tax return every year, regardless of what you owe and of how much the return might increase your tax debt. The IRS won’t even consider negotiating with you until all unfiled tax returns have been filed. And if the IRS has filed SFRs for you, there is still a possibility that you can reduce the amount you owe by letting us help you file a replacement return that takes advantage of all available deductions.

Call Tax Masters to Climb Out of the Back Tax Trap

If you are in the back tax trap, call us today. Depending on the severity of your situation and tax debt, every day that goes by without acting increases what you owe. If you are one of the taxpayers struggling with the fact that you still owe from 2007, make sure you file your 2008 tax return, regardless of whether you can pay the tax liability when you file.

Being in the back tax trap can be absolutely deflating. If you’re in this situation, we can help and the relief can start today. All you have to do is call us and tell us about your situation. You can reach our tax consultants at (866) 694-4018. We’ll tell you what we can do to correct the problem, discuss the options available to you, and talk about what it will cost to get the IRS to take the bulls eye off your back.

Until you need us,

Patrick Cox Tax Masters

IRS Tax Problems Can Strike Anyone

I deliberately tried to refrain from commenting on this topic, but I can’t ignore it any longer. First there was Timothy Geithner. Yeah, okay. Mistakes happen. I’ve seen just about everything from my perspective here at Tax Masters, so I’m seldom surprised by how people get into trouble with the IRS. However, I must admit even I have never seen someone go from having a tax problem to running the United States Treasury Department in the span of just a few months. Ironic to say the least.

After Geithner came Tom Daschle. Odd, but understandable given the situation he was in. Then came Nancy Killefer. That’s three high-level nominees of the current administration with tax problems of one sort or another in as many weeks. The way things have played out, I imagine Geithner is breathing a sigh of relief that he came forward first in this fiasco. As we now know, the other two, Daschle and Killefer, have since bowed out of the game.

With nominees to the highest levels of government admitting to having tax problems, our hope at Tax Masters is that more of you will realize your situation, understand that you are not alone and that you have done nothing to be ashamed of,  and act to get yourself out of the tax trouble you are in. Tax representation can be your ticket out of this mess.

When to Hire Tax Representation

As soon as Geithner knew he had no choice but to address his tax problem, he wrote a check for the tax liability and all penalties and interest. The same is true of Tom Daschle, who wrote a check to cover the $146,000 he owed in back taxes. I even noticed that Dick Morris, who recently paid nearly $2M in back taxes, was commenting on the situation in a pedantic, finger-pointing manner.

The message is simple. No one is immune from running afoul of the IRS. Not in Washington DC, or Houston, Texas, or anywhere else in the country. And if you have a tax problem, the quickest way to end the problem is to take out your checkbook and fill it out to cover the full amount of your back taxes, interest, penalties, and anything else the IRS says you owe. However, if you’re not in a position to cut a check for thousands of dollars to the IRS, it’s time to call in some support from Tax Masters, the premier tax resolution firm in the nation.

Tax Masters Reviews Your Case, Offers IRS Tax Relief

Regardless of how you wound up with a tax problem, the tax consultants at Tax Masters will review your situation and find the best way to get you some real IRS tax relief. There are multiple programs we can use to help you regain compliance, negotiate down your tax debt, and work out a payment plan you can live with. We are professional tax representatives, meaning we do this all day every day. If you find yourself in tax trouble or unable to pay your back taxes, call us. We can help you solve your tax problem and we can start today. We promise we won’t ask you to step down from your current political position or remove yourself from any nominations. You can get your life back. But first you have to call.

Until you need us,

Patrick Cox, Tax Masters

Avoid Need for Tax Representation and IRS Tax Relief

I spend so much of my time concerned about those of you already in need of tax representation and IRS tax relief that I don’t discuss ways to stay out of IRS trouble as much as I probably should. As much as I want your business if you have a tax problem, I started Tax Masters to help people stay on the right side of the IRS. To that end, I thought I’d let you know some of the surest ways to stay in compliance with the IRS.

Tax season always gives us a boost in attention. We get more Internet hits, more calls, and more contacts from January through late March. Most of those people are not actually in need of IRS tax relief, but are contacting us for tax preparation. While we don’t offer current year tax preparation for non-clients, we do have a little-known program for preparing current returns for previous clients. It should come as no surprise to learn that we have quite a few former clients who continue to come to us each year for tax preparation after we helped them resolve their tax problems. As with any business, having clients come back time after time speaks to our level of success and professionalism. And this program also keeps them out of any future trouble they might otherwise encounter with the IRS.

The Secret to Avoiding IRS Problems

The secret to avoiding IRS problems is really no secret at all. Step 1, keep good records, receipts, mileage logs, and track your deductible expenses carefully. Step 2, file your tax returns every year. Step 3, pay what you owe on time every time. That’s it.

Of the three steps listed above, step 2 is the most critical. The National Taxpayer Advocate commented recently in the annual report for 2008 that there were more than 500 changes in the tax code in 2008 and that the code has now grown to over 3.7 million words in length. Reading 10,000 words per day, it would take you over a year to read the United States tax code. It’s no wonder that people who hire quality tax professionals come out better in the long run than those who prepare taxes themselves. If you read my post on the odds of winning a tax case if you hire a qualified tax representative from a couple weeks back, you’ll see a pattern emerging in the National Taxpayer Advocate’s observations.

By and large, taxpayers who have representation or help in preparing their returns are more likely to stay out of trouble with the IRS and develop fewer tax problems.

Complication Keeps Audits Simple for IRS

As long as the tax code is as complex as it is, the IRS has a good chance of finding something wrong in self-prepared tax returns. More than any other factor, taxpayers who prepare their own returns (including those who use online or consumer-targeted tax prep software solutions) run a greater risk of being audited or having their taxes adjusted by the IRS. While complicating the tax code is probably not an intentional ploy to ensnare more taxpayers and charge them more money, that’s in effect what the complication causes. Self-prepared returns make auditing easy for the IRS. By their own admission, the IRS studies more closely every self-prepared return. So why not spend the little bit of extra money it takes now to avoid future problems?

Tax Masters, Patrick Cox: Offering Tax Representation and IRS Tax Relief

As ever at Tax Masters, we offer sound tax representation. While we don’t accept clients who need only the current year’s tax return completed, we do happily help current and former clients with current year tax returns. And we strongly encourage you to seek the assistance of a good tax advisor on your 2008 taxes. If you already have back taxes or are being targeted for an IRS audit, go ahead and take advantage of our free consultation today. We can help you reach a favorable settlement with the IRS that both you and they can live with.

Until you need us,

Patrick Cox, Tax Masters