Internet Complaints

You can find Internet complaints against Tax Masters on several sites out there. We have even seen claims that we are perpetrating a conspiratorial Tax Masters scam, defrauding people out of their hard-earned money and even helping people cheat on their taxes. There’s no two ways about it, we are incredibly successful at what we do and that puts a rather large target on our back. While we do charge for the services we are hired to perform, let me categorically state that Tax Masters is not a scam. We are not a fraud. We do not cheat people. We never help anyone cheat the IRS. If you know what you are doing, it is not necessary to lie or cheat. We know how to solve tax problems without having to resort to fraud, scam, or cheating anyone.

Client Service is Our Focus 

At Tax Masters, we are dedicated to providing quality, consistent tax representation services designed to bring clients back into compliance with the IRS, fight the IRS audit or appeal audit findings, assure that you are treated fairly, and, when appropriate, to allow us to negotiate with the IRS the best possible payment options for those we represent.

Tax Masters Client Satisfaction–97% Approval Rating

It might surprise you to know that Tax Masters has a 97% customer satisfaction rating. That means 97 out of every 100 clients we work for are happy with our services. If you work at Tax Masters, you are not surprised by this statistic. But if all you see of this company is what is written about us on complaints boards and ripoff reports, then I can see how this information might not jive with your perception of who we are. While even three unsatisfied clients out of 100 are too many, we are proud of our 97% satisfaction level.

Quality Assurance–A Dedicated Team

At Tax Masters, we have a Quality Assurance team dedicated to make sure we treat our clients fairly and provide quality, consistent services. This team works with and monitors our tax consultants and tax professionals to ensure that clients are properly qualified and that all services purchased are completed efficiently and in a timely manner.

If You Have a Complaint, We Want to Help

Our goal is 100% client satisfaction. If you are an existing client and you have a legitimate Tax Masters complaint, please contact  your Case Coordinator. If this does not resolve the problem, please ask to speak with a representative of our Quality Assurance team. They are in place to be sure we help our customers properly. As a matter of fact, we encourage you to contact us with concerns and  complaints because we use them to stay sharp and to improve our services as we grow.

Why We Don’t Respond To Anonymous Internet Complaints

We do not respond to anonymous Internet posts at Tax Masters. This is for several reasons. One is that we are bound by federal privacy laws as an IRS tax representative and we are bound by our even higher standard of confidentiality of client records.  We hold this trust sacred.  By law, we are not allowed to discuss any particulars of a client’s case with anyone except the client unless the client gives us permission. In other words, since all we are comfortable doing is making general statements, no rebuttal we supply will be worth much to the complainer or the reader. Another reason we don’t respond to Internet posts is that we’ve discovered that an unreasonable  number of the posters are in fact competitors planting false and erroneous information and are not in fact clients at all. Yet another reason we don’t respond is that any response we provide lends weight to the post, accurate or not, and serves as chum for the inevitable feeding frenzy to follow.

If you choose to post on the Internet, that is your decision. However, posting out there instead of contacting us directly doesn’t get you any assistance with your complaint, and more importantly, it doesn’t help you out of the tax trouble you are in. I know it is easier at times to lash out than to confront your tax problems head on, but this sort of activity does not help your situation.

A Final Word on Tax Masters Complaints

I founded this company because I saw a need for our services. I like the service industry because we get to help people out of tough situations. Our clients come from all walks of life, from doctors and lawyers to mechanics, truck drivers, soldiers, school teachers, and retired persons. We have served politicians, medical professionals, school board presidents, oil executives, mail carriers, and preachers. Tax troubles don’t follow one particular segment of the population. The IRS can go after anyone.

In Tax Masters, I created a company that provides equal protection and representation to every one of our clients. If we fail you, we go out of business. I don’t want to be out of business. Quite the opposite, even in this time of economic strain, we are still serving new people everyday. The reason is because we do what we say we will and we win favorable resolutions for our clients with the IRS. If you have tax problems, you need our help. Don’t let fear control you. Contact us and let us help you through this. Tax representation is what we do for a living, all day everyday. Let us share this burden with you. We know the way to the other side and we can guide you. 

Until you need us,

Patrick Cox Tax Masters

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 evaluation 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

Cancellation of Debt Income–The Problem

This post is the second in a series of posts I am putting together to discuss some of the major topics from the National Taxpayer Advocate 2008 Annual Report. You can read more from my previous post about the ineffectiveness of increased enforcement action from the IRS and Nina Olson’s observation that taxpayers have a better chance of winning cases when they seek tax representation.

The Cancellation of Debt Income (CODI) topic is an interesting one because it exemplifies what we see so often with the IRS. Tax Masters has been in business for almost a decade and, while the specific tactics and issues change, we have seen the IRS maintain the same basic strategy for collecting revenue for the U.S. government. We have seen time and again that the IRS, from top to bottom, will use aggressive collections tactics and the complexity of the IRS Code to their advantage.

CODI is not a new concept, but it is one that Olson estimates will effect tens if not hundreds of thousands of taxpayers because of the economic downturn. Many of these taxpayers have no idea how to claim debt cancellation or forgiveness as anything other than taxable income, and others may not claim it at all. Lenders are required to report CODI to the IRS using Form 1099-C, and the IRS assumes the reported amounts to be taxable unless the taxpayer files a particular form to exclude the income from taxes.

CODI Leads to Back Taxes, Substantial Tax Debt, IRS Audits 

A particularly bothersome aspect of this entire situation is that the IRS, the media, and no one else seems to be very interested in telling taxpayers about their ability to exclude at least portions of debt forgiveness income from their taxable income. So the person who can’t pay her mortgage files her taxes only to see that she owes $10,000 or more after going through foreclosure in 2008. And if she doesn’t claim the income, she gets a friendly reminder from the IRS in 2009 or 2010, just as she’s getting back on her feet financially, that her return was adjusted and she now owes $18,000 in back taxes, interest, and tax penalties.

Tax Representation–The Way Out of IRS Tax Debt

If the IRS doesn’t take Olson’s advice to fix this issue, they are setting up a huge swell of taxpayers who will need tax representation over the next several years. And using a quality tax representative will be the most effective way to ensure that you don’t wind up owing more than you have to. If you have any debt forgiveness from 2008, we strongly encourage you to have a qualified tax CPA or tax professional prepare and help you file your taxes and the debt exclusion form. If you don’t handle this correctly now, you will be calling Tax Masters later and you will already owe the IRS thousands. 

Past Tax Years–Call Tax Masters 

If you are already in this situation and have CODI from past tax years, call Tax Masters today and talk to one of our tax consultants about how to refile to claim the exclusions you qualify for. Odds are we can get some of that money back for you if you claimed the CODI as income. And if you didn’t claim the income at all, it’s a matter of time before the IRS contacts you with an adjusted return or notice of audit. It’s always better to beat the IRS to the punch, particularly now when IRS agents and revenue officers have the authority to waive penalties.

In the meantime, we beg the IRS to listen to Olson’s advice on this. The people that will be hurt by CODI are those who can least afford the unnecessary additional tax burden. We don’t want to gain business based on an exclusion that’s not being used simply because the IRS won’t tell taxpayers it’s out there. Unfortunately, this just looks like par for the course. 

Until you need us,

Patrick Cox, Tax Masters

2008 Report from the National Taxpayer Advocate

The more we see from Nina E. Olson, the National Taxpayer Advocate, the more we like her. And unlike the rest of the IRS, she seems to get things done in a timely manner. In support of this, Olson released her annual report for 2008 on January 7 this year. Perhaps the most surprising thing is that the report contains timely updates, including issues related to the economic hardships that increased dramatically in late 2008. So before we say anything else, we want to give Nina Olson some credit for completing a substantial and relevant report in a timely manner.

Taxpayers and Tax Representation

As a leading tax representation and IRS tax relief firm, it is in our best interest to review the National Taxpayer Advocate’s Report for information relevant to taxpayers with IRS problems. One of the most striking statements we read in the report comes from page 457 in the Most Litigated Issues section and states that, “…overall, taxpayers have a higher chance of prevailing in litigation if they are represented.”

While this statement may seem to be a statement of the obvious, we are constantly surprised at the number of people who represent themselves in front of the IRS, even in tax court. This statement from the report pertains directly to litigated tax cases, but it provides a good vantage point for us to look at all tax issues. If more taxpayers are winning their case with representation in court, it certainly stands to reason that more taxpayers are achieving more favorable results along the way if they have a representative. This confirms what we’ve known all along at Tax Masters. If you’re going up against the IRS or trying to work out an affordable payment plan or other agreement with the IRS, you need a qualified tax representative in your corner.

Increased Enforcement Actions Don’t Work

Over the next weeks, I plan to blog about various topics related to the 2008 annual Taxpayer Advocate Report. I’ll start with a topic near and dear to our hearts at Tax Masters. The report states that increased enforcement actions are not producing a proportional increase in revenue collected.  The example cited in the IRS press release announcing the report includes the following statement. “The number of levies issued by the IRS increased by 1,608 percent from FY 2000 to FY 2007 — from 220,000 levies to about 3.76 million levies — yet the increase in total collection yield during the period was slightly less than 45 percent.” This is just one example showing that aggressive IRS collections activity is not an effective method for collecting tax debt.

The same press release goes on to state that collection alternatives like the offer in compromise and partial-payment installment agreements may be more effective at collecting at least a portion of outstanding tax debts that taxpayers are having difficulties repaying.

Tax Masters is Here to Help

It just so happens that settling tax debt (offer in compromise) and making IRS payment arrangements (setting up monthly payment plans and the lesser used but more effective partial-payment installment agreements) are services that we offer at Tax Masters. And the fact that we employ former IRS agents and attorneys gives us great odds at achieving significant tax relief for our clients. If you have tax debt, now is a great time to try and negotiate it down or work out a payment agreement. And as the Taxpayer Advocate has stated, you have a better shot at success if you hire tax representation. Particularly now, when IRS agents have been given the authority to waive penalties and fees without any clear guidelines about how to apply that authority, you stand to benefit immensely by engaging Tax Masters as your tax representative when dealing with the IRS or seeking IRS tax relief.

If you can’t pay your taxes, call us today and let’s talk about your options. You can always reach one of our tax consultants at (866) 694-4018.

Until you need us,

Patrick Cox, Tax Masters

If You Can’t Afford to Pay Your Income Tax, Representation Can Help

IRS Commissioner Doug Shulman announced Tuesday that IRS agents and revenue officers now have the authority to work with taxpayers who are having difficulty paying their bills. He was careful to clarify that not all taxpayers will qualify. He explained that this new latitude given to agents and officers of the IRS is not intended for taxpayers with a history of back taxes, but rather for those who have paid their taxes in the past and have fallen on tough times due to the current economic situation. The fact that IRS agents now have the authority to waive tax penalties and reduce fees means that Tax Masters now has more leverage when negotiating on your behalf. We are excited because this gives us yet another arrow in our already full quiver that we can use to achieve real tax relief for our clients.

In conjunction with Shulman’s announcement, the IRS launched a whole new section of their website discussing The What Ifs of an Economic Downturn. The pages include advice on what to do if you can’t meet your tax obligations or if you are negatively affected by other issues like job loss and foreclosure related to the economic downturn. I’ve discussed many of these tax problems over the past months and I want to reiterate that active IRS collections activities like levies, IRS liens, and wage garnishment don’t have to be part of your future. While we don’t believe you should follow the advice of the IRS to call them yourself, it is indeed within your power to stop aggressive IRS collections activity before it starts. We strongly encourage you to call us to talk about your options. Remember that the earlier you engage a representative, the better shot you have at achieving a favorable outcome. If you do choose to contact the IRS yourself, realize that the job of every IRS agent and revenue officer is to represent the interests of and collect revenue for the US Government. It is not their job to offer you advice or provide you with tax help, but to collect the money you owe using whatever means available to them. You have the right to tax representation and it is seldom if ever in your best interest to refuse that right.

If You Can’t Afford Your Taxes, Seek Help

If you are having trouble paying your federal taxes, you must act quickly to keep from accruing unnecessary tax penalties, fees, and interest. Ignoring IRS notices can get you into a great deal of trouble in short order and exempt you from certain tax relief options. And as Shulman cautioned, not being able to pay your taxes in full is no excuse for failing to file. No matter what your financial position or ability to pay, intentionally failing to file a tax return or filing a false return is a federal crime. It is in your best interest to seek tax representation from a credible tax relief firm before your inability to pay leads to increased back taxes and compromises your chance at reducing penalties and fees.

Tax Masters Offers Tax Problem Help

Shulman stated that taxpayers must be able to demonstrate their inability to pay before an IRS agent or revenue officer will consider reducing fees or penalties. The Tax Masters team is incredibly skilled at gathering your financial information, organizing it, and presenting it to the IRS in a manner that supports the desired conclusion. As with just about everything in the IRS, proper organization and the relevance of supporting data can make all the difference. If you are unable to make payments you negotiated with the IRS or if you can’t afford to pay your tax balance, Tax Masters can help you. Particularly in light of IRS agents having the authority to waive tax penalties, we will be able to negotiate more favorable payment plans and additional reductions in fees if you qualify.

Call us today if you can’t pay your taxes and let’s talk about your options.

Until you need us,

Patrick Cox, Tax Masters

New Year’s Resolutions–Do You Need Tax Representation?

The new year’s resolution can be traced all the way back to Roman times and new year’s celebrations were held as far back as 4000 BC in ancient Babylon. The new year provides us in the west an easy calendar marker for making changes in our lives that we know we need to make. This time of simultaneous reflection and of looking forward allows us the opportunity to push away the things that weigh us down and to look forward to the things that might pick us up.

At Tax Masters, we wish for you  the happiest and most successful 2009. However, we also know that some of you are in bad shape financially due to recent layoffs and economic loss. We also see an increasing number of IRS notices going out in an attempt to collect back taxes. If you are in a situation where you can’t pay your taxes, we can help if you give us a call.

Tax Masters Offers Tax Representation and IRS Tax Relief

If you are receiving notices from the IRS about your back taxes, it’s time to deal with your tax problem head on. I urge you not to waste another day before seeking tax representation. Tax Masters is the real McCoy. We have former IRS employees on our staff who know how to negotiate real tax relief and shepherd you through the complex rules that govern the IRS and tax law.

Make Your Resolution Today

It’s not too late to make a meaningful New Year’s resolution. If tax debt was part of the bad luck you carried in 2008, put the pieces in place to get the IRS out of your life in 2009. Call Tax Masters today and let one of our knowledgeable tax consultants tell you about how we can help you achieve tax relief or set up a payment plan you can afford. As experienced tax representation specialists, we can help. Call us today at (866) 694-4018 or go to www.txmstr.com and fill out the evaluation box on the right side of the page.

We’re here if you need us,

Patrick Cox, Tax Masters

Bernard Madoff, the IRS, and Tax Masters

The Bernard Madoff story has created some ripples that are growing into waves, threatening to further damage the economy and potentially negatively impact IRS revenues. With losses related to the alleged Ponzi scheme estimated at $50 billion, many direct and hedge fund investors have been floored by what is shaping up to be one of the largest Ponzi schemes in history. Investors are scrambling to find ways to recover their losses and the SIPC (Securities Investor Protection Corp.), which may be able to provide partial refunds for some investors, said last week that it may take six months to unravel the complex mess they found in Bernard Madoff’s books.

IRS Revenue Will Drop as a Result

If the $50 billion estimated losses are accurate, the IRS will feel the pinch one way or the other. Some investors stung by Madoff investments may get partial refunds, some may even be forced to pay back fraudulently earned gains, but the massive size of loss associated with this investor fraud case will leave most investors with significant losses. It’s important to recognize that no statements have yet been made by the IRS concerning these losses. Undoubtedly, some taxpayers will attempt to report lost investments related to Madoff as theft losses. Some may even file replacement returns to claim any gain as fictitious income. There are lots of rules that govern each of those options that I’ll not get into here, but suffice it to say that the IRS is going to get hit by this one way or the other. Some experts are estimating this could reduce an already down revenue collection period by another $15 to $17 billion. And that’s on top of the estimated $200 billion tax revenue loss associated with what is now defined as a recession that’s been going on for at least the last 12 months (www.economy.com).

Investor Fraud, Unreported Losses, and IRS Audit Work

Investor fraud is not all that uncommon. What is bizarre about the Madoff case is the size of the loss and the fact that it involves serious players on Wall Street. Normally we see this as a result of small-time hustlers that scam average folks. The fact that high-end investors got taken by Madoff means more attention will get put on investor fraud and scams for at least a little while. The regulatory impact may be substantial much as it was with the Enron and WorldComm debacles. At Tax Masters, we find a surprising number of investor fraud scams and unreported losses when we defend clients against IRS tax audits. You need to know that you are entitled to claim your legitimate losses if you were a victim of investor fraud. There are several ways to obtain refunds of taxes paid using the losses you sustained. There are also several types of losses you can sustain. One option is to file an amended return to eliminate any taxable gains previously reported. This has a three year limitation on how far back you can go. If you have been paying taxes on this kind of Ponzi scheme for more than three years, the situation is more complicated.

Whatever option works best for you to try and minimize your losses in an investor fraud situation, plan on being audited by the IRS. You can be certain that it is highly likely you will be audited when you file any tax return claiming losses associated with this kind of Ponzi scheme. The reason for the audit is not that you are not entitled to claim your losses, but that most people do not calculate their losses correctly. The IRS can and will take aggressive positions with people who prepare their own tax returns in these matters. You can also assume that if you calculated the loss in their favor, they won’t be kind enough to tell you. If your local tax preparer has not prepared this kind of tax return, which is very likely to be the case, you can be sure that he or she also will not know how to handle the IRS audit that will follow.

Tax Masters Has Proven Method for Defending Audits Involving Investor Fraud and Scams

Tax Masters has experience defending IRS audits for people claiming losses from investor Ponzi schemes similar to the Madoff case. We have also observed that the losses were calculated incorrectly in the original returns more often than not. There are several aspects of the loss that most people, including most tax preparation services, fail to account for in determining the amount of loss you are entitled to claim. The methodology of this is beyond the scope of this blog and also somewhat proprietary in that we have developed this method over the course of IRS audits we have handled for our audit defense clients.

Opportunists that scam investors and people who don’t know how to handle this kind of tax matter are out there. Beware. Tax Masters can help. We can help calculate the loss and get you in a position where you face the best possible chance of a favorable outcome in an IRS audit on a Ponzi scheme investment loss.

One more thing on this topic. Tax Masters handles more IRS audits in a week than most CPAs handle in their entire career.

A Final Thought for Those Not Directly Impacted By Investment Fraud, Scam, and Ponzi Schemes

At Tax Masters, we realize the economy is in trouble and we also understand that the timing of the Madoff case could hardly be worse for the IRS, already facing a sizable tax gap and growing revenue shortfalls. We’re afraid that the economic situation and revenue shortfalls will leave the IRS with little choice but to go after dramatically more taxpayers in an effort to gain back revenue. The news last week of the IRS saying they would try to make it easier for homeowners to refinance or sell their homes to pay tax debt went around our office like wildfire. I must admit that our excitement about that possibility is now tempered by the realization that the IRS is going to face ever-increasing pressure to collect more revenue.

If you have tax debt as of today, call Tax Masters for tax representation and get a settlement or payment plan in place sooner rather than later. If you have unfiled returns, you need to seriously consider calling us to get those returns filed before the government contacts you – and they will contact you. The IRS is already increasing notifications and all our intelligence points to more of the same in 2009.

Until you need us,

Patrick Cox, Tax Masters