Streamlined Offer in Compromise Program Update

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As the GAO, the National Taxpayer Advocate, and others have turned up the heat on pressuring the IRS to explain some of its collections policies, the Commissioner has had a harder time standing behind some of the more damaging actions the agency visits on taxpayers. In February 2011, the IRS Commissioner announced the IRS would be focused on helping taxpayers with outstanding tax debt get a “fresh start.” This new fresh start initiative is designed to hedge some of the more aggressive IRS collection practices that damage a taxpayer’s financial position long-term. 

Immediately following the initial IRS release in February, Tax Masters was asked by practitioners and interested media parties alike specifically about the Streamlined Offer in Compromise Program. As reported in the 2010 National Taxpayer Advocate’s Report to Congress, the IRS began a pilot program in May 2010 to test new procedures to “increase efficiencies and improve the quality of OIC case decisions.” Because the Commissioner announced the streamlined OIC program in February, our assumption is the pilot program was a smash success. The trouble was, no one knew what the streamlined program looked like except IRS insiders directly involved with the pilot. Four months later, the IRS has pulled the curtain back and further defined just what the Commissioner was talking about when he announced the streamlined OIC.

What Delinquent Taxpayers Need to Know About the Streamlined Offer in Compromise Program

The expanded Streamlined Offer in Compromise program includes:

• Fewer requests for additional financial information
• Requests for additional information by phone instead of by snail mail, when required
• Greater flexibility on the part of the IRS when determining your ability to pay

According to the Streamlined Offer in Compromise Program page on the IRS website, taxpayers who owe a tax debt may qualify if they:

• Earn wages through an employer, either by W2 or 1099
• Are currently unemployed or out of work
• Are self-employed with no employees and gross under $500,000 per year

The IRS site further states that you may be eligible for the streamlined program if:

• Your household income is less than $100,000, and
• Your total tax debt is less than $50,000 when you file your offer in compromise

How to Take Advantage of the Streamlined OIC

If you believe you qualify for a streamlined offer in compromise you should call us today. Tax Masters will protect you while we help you file all delinquent tax returns and regain compliance with the IRS. While we are doing the work to get you back in compliance, we will work with you to complete a 433 Financial Analysis, which will show you whether you should qualify for the Streamlined Offer in Compromise Program. After you regain compliance and file all your old returns, we will be glad to help you submit an offer in compromise if our financial analysis indicates you should qualify. The best part? You don’t pay for any TaxMasters offer in compromise preparation services unless the IRS accepts your offer. You would still be responsible for the $150 application fee.

You must act to take advantage of the new Streamlined Offer in Compromise Program. The IRS will not contact you to let you know you qualify. The IRS has opened the door for those of you with tax debts under $50,000. Will you walk through it? Or will you wait and let the IRS take a little of what you own at a time until it is gone?

Don’t let this opportunity pass you by if you owe the IRS and cannot afford to pay the tax. The IRS is trying to give you a fresh start. Take your first step toward a fresh start today and call us now at (800) 581-0456.

Don’t Know What the Offer in Compromise Is? Ask Noah!

Tax Masters–Streamlined Offer in Compromise Update

Taxpayers Fear the IRS–Nina Olson Interview on ABC News

As usual, ABC News missed the mark in their interview of Nina Olson, the National Taxpayer Advocate with the IRS. ABC had the opportunity to speak to the National Taxpayer Advocate about tax problems and chose to air more information about the symptom of tax disease (tax debt) than about the problem itself (IRS compliance). The simple fact remains that most tax problems begin and end with tax compliance issues, like failing to file tax returns, failing to make quarterly estimated tax payments on time, or failing to make payroll tax payments when they are due. The vast majority of people who come to Tax Masters with tax problems have tax compliance issues. They may want to settle their tax debt, and invariably everyone with a tax debt wants to find some way out of their situation, but that settlement is not possible until the taxpayer files all their delinquent tax returns and makes any currently due quarterly or payroll tax payments.

While ABC News focused on the debt issue, they did not include any content from the Nina Olson interview addressing how to regain compliance and the importance of doing so.

At Tax Masters, we have been asking for years, the right questions. This is direct content from Patrick Cox, Tax Masters’ CEO and founder. ”Are you being audited? Have you not filed tax returns for years? Has the IRS come to your home or place of business? The IRS will relentlessly pursue you for unpaid taxes. TaxMasters can get between you and the IRS. We’ll make sure they treat you fairly and treat you with respect.”

ABC News chose to focus on “pennies on the dollar” tax settlements and, in doing so, failed the American taxpayer dramatically. The focus needs to be on compliance. If, after a taxpayer is back in compliance with the IRS and still owes a tax debt, he or she can often afford an IRS payment plan. If the taxpayer cannot afford to pay the IRS, cannot afford a payment plan, and has no assets, there are other collections alternatives like partial payment installment agreements, currently uncollectible status, and the holy grail of tax relief, the offer in compromise.

ABC News failed to focus on the core issue of tax woes. Instead of discussing the issue, tax compiance, they chose to concentrate on the symptom, which is tax debt. Shame on you, ABC. You should have listened.

Transcript of ABC News Interview of Nina Olson

ABC News: Can I trust the IRS to work with me on my tax problem?

Nina Olson, National Taxpayer Advocate: Taxpayers fear the IRS and there’s a reason for that. The IRS is the most powerful creditor in the United States. We have awesome collection powers. And so there’s a basis for that fear. But that fear can be exploited so that taxpayers aren’t even willing or aren’t comfortable doing something that could protect themselves; just picking up the phone and talking to the IRS and walking through the problem, or even reaching out to my organization, the Taxpayer Advocate Service if they’re really having an economic hardship. We can help you and we can get collection activity stopped while we try to solve the problem.

ABC News: Is it possible to settle my IRS debt “pennies on the dollar?”

Nina Olson, National Taxpayer Advocate: Actually it can happen that because of your ability to pay. You know, if you have such reduced ability to pay, you may end up paying what could be pennies on the dollar of what you owe to the IRS. But it’s not an easy thing and you have to show the government, you have to show the IRS, that they are not going to be able to get any more money out of you than pennies on the dollar. And if that’s the truth, then you can settle with the IRS for that amount. But to say that you’d be able to do that routinely is just not true.

ABC News: How does the IRS determine whether I qualify to settle my debt for less than I owe?

Nina Olson, National Taxpayer Advocate: What the IRS does is it looks not only at your income and your expenses, but it looks at all your assets. You know, what is your net equity in assets? And so we’re getting a whole complete financial picture as well as mitigating circumstances like illnesses or job loss. But, you’re really looking at the financial picture and then deciding what is that person’s ability to pay?

ABC News: If I want to hire someone to help me with getting a collection hold, who should it be?

Nina Olson, National Taxpayer Advocate: Someone at the company who is qualified to practice before the IRS. It has to be an attorney, a CPA, or what’s called an Enrolled Agent, someone who’s taken a test to practice before the IRS. That person has to call on your behalf and they have to let the IRS know that they are there, that they have been hired to represent you. And then they can talk to the IRS about getting a collection hold. Now you too, a taxpayer, can call the IRS and ask for a collection hold and, you know until they can work out some collection alternatives like an installment agreement or an offer in compromise. A lot of this the taxpayer can do him or herself. But a lot of taxpayers are frightened of doing that themselves.

ABC News Interview of Nina Olson, National Taxpayer Advocate

ABC News Tax Masters – Taxpayers Fear the IRS – Nina Olson, National Taxpayer Advocate

Wesley Snipes Ordered to Prison for 3 Years for Failing to File as Many Tax Returns

Wesley Snipes–star of the “Blade” trilogy, Spike Lee’s “Jungle Fever,” and the cult classic “To Wong Foo Thanks for Everything, Love Julie Newmar”–was ordered today to begin serving a three year sentence by US District Judge William Terrell Hodges in Ocala, Florida. Snipes was convicted on February 1, 2008 of three counts of willfully failing to file income tax returns for tax years 1999, 2000, and 2001, and was sentenced to three years imprisonment on May 1, 2008. The sentence amounts to one year of prison for every year Snipes failed to file a tax return. Snipes appealed the conviction and managed to stay out of prison until today.

We understand the seriousness of having unfiled tax returns, particularly if the IRS believes a taxpayer has failed to file willingly. The government can and will, as illustrated in the Snipes case, send the offender to jail. It is our belief that Wesley Snipes acted on bad advice from others who thought they could get around the US taxing system and the IRS. This serves as yet another example of how most tax avoidance schemes end–with convictions, fines, and sentencing. We have repeatedly encouraged delinquent taxpayers to file unfiled tax returns to regain compliance and we will continue to do so.

We have watched the Wesley Snipes trial, sentencing, and appeals with a great deal of interest. While we understand the law must be carried out, we can’t help but empathize with Snipes’ position, which is not so dissimilar from that of many taxpayers who hire us. The lesson? Sometimes your mistakes can land you in prison.

We sincerely hope the best for Wesley Snipes. Admittedly, we hope he is perceived by the prison population as Blade while serving his sentence and not as Noxeema Jackson. Either way, we do not envy his position.

Blade and Noxeema--Characters of Wesley Snipes

If you have unfiled tax returns, get them filed now. The Snipes case serves as a reminder to all taxpayers that the IRS can and will seek imprisonment for delinquent filers. If you need help filing your past-due tax returns, contact us today. We can help.

About Tax Masters

Houston based Tax Masters has served tens of thousands of clients and had incredible success with settling federal tax debt, defending clients in audit, setting up monthly IRS payment plans, and filing past-due tax returns.

The Short and Pointed 6-Week Tax Plan

October 15 seems so far away, doesn’t it? It’s just the first of September, after all. The problem for many small businesses, especially in a down economy, is that they are so busy running the business that no one even notices as September quietly rolls into October. And if you wait until October to start trying to put your tax return together, you are facing a near impossible filing deadline.

A common reason small businesses file an extension is because they don’t have all their information organized in time for their accountant to complete a tax return before April 15. Many of those who file an extension do so and then forget about the October 15 deadline because it’s so far away. At the current speed of business, six months seems like an eternity. The problem is that we are so busy trying to make a business run, addressing the hundreds of minor emergencies that crop up in a typical day, that we lose focus on getting our taxes together in a reasonable timeframe. 

Because we spend a great deal of our energy and time on helping our clients regain compliance at TaxMasters, we thought it might be effective to put together an easy-to-follow 6-week plan small businesses can use to make sure they get their taxes filed by the extension deadline on October 15. Kind of a preemptive action to help small business owners before they need us.

If you don’t start getting your tax information together now, you run the risk of missing the filing deadline, which means an automatic penalty. No one wants to pay the IRS more than they have to. So follow this plan and file on time this year. And remember that using a reputable tax professional to prepare your returns on time is one of the easiest ways to stay out of trouble with the IRS.

The Dates

September 1–Call your accountant and schedule the day you’ll provide your information

September 2–Physically put your hands on your income statements, expense statements, tax documentation, and other relevant paperwork

September 6–Start organizing all that stuff you pulled together on September 2 in a format your accountant can use

September 8–Chase down all your deduction information and add that to your file

September 9–Finish compiling all paperwork so you can hand it off on Friday

September 10–Deliver everything you put together to your accountant and schedule the pick-up date for no later than October 11

October 11–Pay the accountant and review your return

October 12–Take your time and review the return again, making certain you understand it

October 13–Finish working through any issues or questions you had about the return, sign it, and file it

October 15–Pat yourself on the back for a job well done and enjoy the fact that you are in compliance with the IRS

Following this schedule doesn’t necessarily mean you won’t have to call us in the future, but failing to file your tax return is the quickest way to attract unwanted attention from the IRS.

Patrick Cox is President, CEO, and Board Director of Tax Masters, Inc. (TAXS), a company dedicated to helping consumers solve their tax problems. Patrick Cox is a tax expert who founded Tax Masters in 2001, which has become one of the most effective IRS tax representation firms in the IRS tax relief industry. Patrick Cox and Tax Masters are located in Houston, Texas and the company is publicly traded under the ticker symbol TAXS.

Sole Proprietors Watch Out–Your Return May be Assigned to a Revenue Agent

Our sources are reporting that Treasury inspectors have recently lambasted IRS agents for not effectively finding all the unpaid taxes of sole proprietors. The Treasury inspectors completed a study of correspondence examinations on 2007 tax returns only to find that IRS examiners missed more than $16 million in unpaid taxes on sole proprietors in their limited sample.

It seems the failures lie in the correspondence examination process. In a face-to-face audits, the IRS process typically uncovers unfiled tax returns and unreported income. But with correspondence examinations, auditors failed to uncover these basic facts. As logic dictates, adding new steps to an already slow correspondence examination process will not speed up revenue collection for the IRS in a time when the tax gap continues to grow and the Treasury faces incredible pressure to generate additional revenue.

Face-to-Face Audits to Increase for Sole Proprietors

The IRS solution will reportedly be to adjust its selections procedures for auditing tax returns. This adjustment will call for tax returns from sole proprietors with unfiled tax returns or suspected unreported income to go directly to IRS Revenue Agents instead of going through the automated correspondence examination process.

In other words, if you are a sole proprietor with unfiled tax returns or unreported income, watch out. When Revenue Agents call, they are looking for what you have done wrong and for what they hope you are hiding. It is generally in your best interest to demand that a Revenue Agent speak to your tax representative before you say something you cannot take back. Talking to Revenue Agents can have devastating consequences to your personal finances and on your business.

At Tax Masters, we handle more audits in a day than most CPAs handle in a career. Do not wait until you are contacted by a Revenue Agent to act, you need to get into compliance before the IRS sends in the Agents. It is far less expensive to solve the problem before it is a crisis. If you are contacted by a Revenue Agent, we suggest you call us immediately. Speaking to them will likely make your problem much worse. Refusing to speak to them will make them quite mad, but it is your best option at that point. Be respectful, but firm and inform them you intend to hire a representative and you wish them to speak with your representative. As soon as you close the door or hang up the phone, call us at 1-800-581-0456 to discuss your tax problem and to hire the audit defense representation you deserve. Don’t wait for an appointment, call us today.

Protect Your Business–Hire Tax Masters for Audit Defense

An audit is serious and your business may depend on hiring the right audit defense. Choose wisely. Choose Tax Masters.

Until you need us,

Patrick Cox Tax Masters

Patrick Cox is President, CEO, and Board Director of Tax Masters, Inc. (TAXS), a company dedicated to helping consumers solve their tax problems. Patrick Cox is a tax expert who founded Tax Masters in 2001, which has become one of the most effective IRS tax representation firms in the IRS tax relief industry. Patrick Cox and Tax Masters are located in Houston, Texas and the company is publicly traded under the ticker symbol TAXS.

Outcomes of Not Paying Taxes

As most of us know, the job of collecting taxes in the US falls to a tax collecting agency called the IRS, or the Internal Revenue Service. Paying taxes facilitates the essential services the government provides that keep our lives running smoothly (infrastructure, defense, government programs, etc.).

There are times when taxpayers may, because of choices or circumstances, not be able to pay their taxes at the time of filing. In these situations, TaxMasters encourages taxpayers to contact the IRS and set up a simple payment plan if the tax debt is relatively small. If you do not want to deal with the IRS yourself, TaxMasters will be happy to set up and negotiate a payment plan for you. Whatever you do, do not ignore your tax debt or act as if it does not exist. Not paying taxes is bad enough, but not paying taxes and going silent may get you into a world of trouble.

If you choose not to pay your taxes, the IRS will eventually send you a notice informing you that you have a tax debt which has to be paid immediately. If you fail to comply with the notice, it could result in the IRS adding even more penalties and interest than they already have. And trust me when I tell you that you do not want an IRS tax collector hot on your trail.

If you do not respond to the IRS notices you receive, the IRS will eventually send you a final notice of intent to levy, and a notice of your right to a hearing. Keep in mind that interest and penalties have been constantly accruing as you have sat back and chosen not to act. The IRS has the legal right to levy your bank accounts, garnish your wages or social security check, and place liens on your property to “encourage” you to pay your tax debt. This intent to levy notice has a 30 day compliance period. After the 30 days are over, it will be incredibly difficult to salvage your financial status. The IRS typically does not provide you any leniency if you have reached this point in the collections process, and will begin aggressive collections activity.

If you have received a final notice of intent to levy, you need to get in touch with a tax representative immediately. Time is of the essence and it is most definitely not on your side. If you are in this position, the IRS is about to shake what little is left of your financial wellbeing.

There is a great deal of anecdotal evidence claiming the IRS is known for withholding facts, misleading people and setting them up for payments they cannot afford. Of course, this is a he-said, she-said argument. And what the IRS believes you can afford and what you believe you can afford often do not align. The result of not paying taxes can bring a heavy burden to your life. Rather than facing the IRS alone with so much at stake, it is generally best to take a good tax representative along with you to hammer out the negotiations. Paying taxes is not something any of us like to do, but an experienced tax representative with a strong tax preparation team can do a good job of preparing your past tax returns, hopefully finding ways to reduce your liabilities. IRS tax relief is not always about settling tax debt. For many TaxMasters clients, it’s about moving back into the world of legality and compliance. Any savings are icing on the cake. But the real goal of anyone with IRS tax problems needs to first be compliance. 

One last point. It is not illegal to owe the IRS money. So while they may come after your money and assets in an attempt to collect revenue, you are not breaking the law by not being able to pay.

It is illegal to not file an IRS tax return every year. So file those returns no matter whether you can pay or not. Intentionally not filing tax returns is an illegal act that can be prosecuted. Not paying taxes is serious, but tax evasion is in a totally different league.

Until you need us,

Patrick Cox Tax Masters

Patrick Cox is President, CEO, and Board Director of Tax Masters, Inc. (TAXS), a company dedicated to helping consumers solve their tax problems. Patrick Cox is a tax expert who founded Tax Masters in 2001, which has become one of the most effective IRS tax representation teams in the IRS tax relief industry. Patrick Cox and Tax Masters are located in Houston, Texas and the company is publicly traded under the ticker symbol TAXS.

The job of collecting taxes in the US falls to a tax collecting agency called the IRS or the Internal Revenue Service. Paying taxes facilitates the essential services the government provides that keep our lives running smoothly.

However, there are times when you may default on an annual payment due to unfortunate circumstances. As a result of not paying taxes, the IRS may send you a notice informing you that you have a tax debt and it is due, which has to be paid immediately. If you fail to comply with the notice, it could result in the IRS adding extra penalties and interest, and the notice may be followed up by an IRS tax collector.

If you do not respond to the IRS notices you receive, the IRS will eventually send you a final notice of intent to levy, and a notice of your right to a hearing. They may levy your bank accounts, garnish your wages or social security check, and place liens on your property to encourage you to pay your tax debt. This intent to levy notice has a 30 day compliance period. After the 30 days are over, it may not be possible to do much to salvage your financial status. The IRS typically does not provide you any leniency if you have reached this point in the collections process, and will begin aggressive collections activity. If you have received a final notice of intent to levy, you need to get in touch with a tax representative or the IRS immediately.

There is a great deal of anecdotal evidence claiming the IRS is known for withholding facts, misleading people and setting them up for payments they can not afford. The result of not paying taxes can place a heavy burden on a person’s life. So rather than going alone to the IRS, it is generally best that you take a good tax representative along with you to hammer out the negotiations. Paying taxes is not something any of us like to do, but an experienced tax representative with a strong tax prep team can do a good job of preparing your previous years tax returns, hopefully finding ways to reduce your liabilities. IRS tax relief is not always about settling tax debt. For many TaxMasters clients, it’s about moving back into the world of legality and compliance.

Until you need us,

Patrick Cox Tax Masters

Patrick Cox is President, CEO, and Board Director of Tax Masters, Inc. (TAXS), a company dedicated to helping consumers solve their tax problems. Patrick Cox is a tax expert who founded Tax Masters in 2001, which has become one of the most effective IRS tax relief teams in the tax representation business. Patrick Cox and Tax Masters are located in Houston, Texas.

Have a Delinquent Tax Return… or Two… or Three?

Delinquent tax returns can mean big trouble for US taxpayers. With the current administration calling for more revenue officers and the IRS ramping up audits and looking to trim the tax gap, taxpayers who have not filed past-due tax returns are at serious risk. If you or someone you know did not file a 2008 tax return, you need to take action now and file that delinquent return before the IRS contacts you. The penalties and interest the IRS assess can increase if they have to bring a delinquent tax return to your attention. While the IRS trusts taxpayers to file their returns every year, they will also pursue the noncompliant tirelessly and punish them by making them pay additional moneys in interest and penalties.

Delinquent Tax Returns – A Spiraling Tax Problem

Especially in a down economy, when good people simply don’t have the money to pay the tax they owe, neglecting to file a tax return can be a costly mistake. For those who have not filed a return for a given tax year, it becomes easier to fail to file a second year and even a third, particularly if the IRS seems not to notice. Do not be fooled. The IRS can wait a surprisingly long time before notifying a taxpayer that they did not receive a return. And often this notice is accompanied by a bill that the IRS assesses based on what they think you owe for multiple years with penalties and interest tacked on.

If you have even one delinquent tax return, you need to file it tomorrow. And if you have several, you need take action to file today if the IRS has not yet contacted you. And if the IRS has already sent you a notice with a bill, it means they have already filed a substitute return for you and want their money. You need to contact us today so we can help you file your delinquent tax returns based on your actual income and take into account all deductions you have coming. When the IRS files a substitute return on your behalf, they use estimates for your income based on various facts they know about your earning history and do not allow for any non-standard deductions. We’ve stated this numerous times before–The job of the IRS is to collect revenue for the US government. Allowing the IRS to file a tax return for you is like handing your wallet to a stranger and trusting him to take only what he needs. It is imperative that you file all delinquent tax returns to make sure you pay the IRS only what you owe.

If you have delinquent tax returns or need IRS tax relief, call us today. Our tax consultants will diagnose your tax problem and build a customized plan for solving your tax problems. Do not walk into 2010 without a plan in place to resolve your tax issues.

Procrastination costs money when it comes to the IRS. Call us now.

Until you need us,

Patrick Cox Tax Masters

Patrick Cox is President, CEO, and Board Director of Tax Masters, Inc. (TAXS), a company dedicated to helping consumers solve their tax problems. Patrick Cox is a tax expert who founded Tax Masters in 2001, which has become one of the most effective IRS tax relief teams in the tax representation business. Patrick Cox and Tax Masters are located in Houston, Texas.

We learned recently at TaxMasters, Inc. (TAXS) that more tax audits are on the horizon. With the current tax gap weighing heavily on the IRS, agents are looking for revenue wherever they can find it. IRS audits are always a source of heartburn for the taxpayer being audited, but when a business gets audited, the potential for disaster threatens not just one person, but every person who depends on that business for income, products, and services. If your business is facing an audit, TaxMasters offers the tax audit help you need.

Random Employment Tax Audits Going Up 33%

According to reports in The Kiplinger Tax Letter, the IRS will increase the number of random employment tax audits 33 percent over the next three years. The IRS hopes this 33 percent increase in random employment tax audits will help them collect additional revenue and update their estimates of the tax gap. The first audits are scheduled to get under way in November.

What the IRS is Looking For

Reportedly, IRS agents will be looking for employers that are violating worker classification rules and that abuse the tax rules for executive compensation and employee fringe benefits. The IRS is also reported to be looking for S corporations that pay their owners meager or non-existent salaries, which allows a corporation to pass profits through to its shareholders as dividends to save on payroll taxes. In other words, if your company is engaged in issuing 1099s instead of W2s for fulltime employees, offering executive bonuses, providing cell phones to employees, or passing out high dividends, look out. Make sure you work with a qualified tax preparer to put together all the information you need to support your case. If you don’t have that information at hand, you may be in line for a serious IRS audit.

Finding Tax Audit Help

If you are one of the unfortunate companies to be selected for a random employment tax audit or any other IRS audit, you may need some help. TaxMasters has a team of audit professionals standing by ready to provide the top-notch tax audit help you will need to face an IRS audit. Understand that any time the IRS amends a return or sends you a change notice, that constitutes an audit. That means you have the right to challenge the IRS audit findings. If you have been hit with an unfair or inaccurate assessment because of an audit, you need to contact us today.

Until you need us,

Patrick Cox Tax Masters

Patrick Cox is President, CEO, and Board Director of Tax Masters, Inc. (TAXS), a company dedicated to helping consumers solve their tax problems. Patrick Cox is a tax expert who founded Tax Masters in 2001, which has become one of the most effective IRS tax relief teams in the tax representation business. Patrick Cox and Tax Masters are located in Houston, Texas.

October 15 Tax Problems

So you waited until the last minute and couldn’t get all your documentation in order on Monday or Tuesday. By the time Wednesday, April 15 arrived, you knew you were too late and weren’t going to meet the IRS income tax filing deadline. Odds are you filed an extension using IRS Form 4868. If you did that, pat yourself on the back. Too many taxpayers simply let the filing go and don’t look back until the IRS forces them to.

Do You Have Unfiled Tax Returns?

If you did not file your 2008 tax return and did not file an extension, you need to get your 2008 taxes filed as soon as possible. And if 2008 is yet another return you haven’t filed in a long line of unfiled tax returns, you need to contact Tax Masters today to file your returns and get back into compliance with the IRS. We may even be able to save you some money in the process.

October 15 Extension Deadline

If you filed your IRS tax extension in April for tax year 2008, don’t let October 15 sneak up on you. Think back to April. If you filed your extension in a panic, you likely don’t know exactly what you owe the IRS. If you owed them anything, it has been building interest as time has passed. Our advice at Tax Masters is to make your internal deadline of getting all your tax information together September 25. That gives you three weeks to complete your own return if you are a self preparer, or three weeks to finalize things with your tax preparer, make out the check to the IRS, and file by October 15. and if you can’t afford to pay what you owe, don’t let that stop you from filing. File your return and work out a payment plan for what you owe.

Failing to File Tax Returns is a Federal Crime

Failure to file a tax return is a federal crime. At Tax Masters we spend a good deal of our time helping people rebound after failing to file tax returns for several years. It can take quite a bit of effort to get someone back into compliance with the IRS, especially if their record keeping wasn’t the best.

Don’t let the October 15 IRS income tax extension deadline sneak up on you. You don’t want to be out of compliance with the IRS, pay all the interest on the money you owe, and pay the failure to file fees on all your old tax returns. It’s far easier and cheaper to stay ahead when it comes to filing taxes.

You made a good decision in filing your income tax extension in April. Now close the deal and do what you need to do to file your 2008 tax return by the extension deadline. If you have all your materials and tax documentation together and organized by September 25, that gives you three weeks to get your tax return filed by October 15.

Until you need us,

Patrick Cox Tax Masters

Patrick Cox is President, CEO, and Board Director of Tax Masters, Inc., a company dedicated to helping consumers solve their tax problems. Patrick Cox is a tax expert who founded Tax Masters in 2001, which has become one of the most effective tax relief teams in the tax representation business. Patrick Cox and Tax Masters are located in Houston, Texas.