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.

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.

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.

Tax Masters is dedicated to helping taxpayers who want to favorably resolve their federal tax debt. We will employ and use the expertise of ex-IRS agents, enrolled agents, attorneys, CPAs, and seasoned tax consultants who are ready to help you understand specific tax issues. We can help you fulfill your obligation to pay your back taxes without it costing you your life. Tax Masters offers services customized to bring the most benefit to each of our clients. We shield you from IRS harassment and lead you to solid ground using proven and effective tax relief services customized to solve your specific tax issues.

With a challenging economy and increasingly complex tax laws, I feel TaxMasters’ mission is becoming more relevant, and more valuable, every day. I want to thank our many dedicated employees for their hard work in helping make this mission a reality, both today as well as long into the future.

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.

Armed Forces Entertainment does a fantastic job of scheduling and coordinating visits to soldiers for entertainers like Kevin Fowler, Sugarland, Gin Blossoms, Kid Rock, Urban Sophisticates, and a ton of other featured performers. When given the opportunity to sponsor Rick Trevino’s tour, Tax Masters jumped at the opportunity.

Patrick Cox and Rick Trevino plan to tour the Zigurrat of Ur while staying at Contingency Operations Base Adder. There are several concerts scheduled with plans to visit Forward Operating Base Echo, Forward Operating Base Scania, and Basra south of COB Adder.

Tax Masters is extremely pleased to have the opportunity to sponsor Rick Trevino’s tour and to be able to send Patrick Cox, as well.

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.

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.

For those of you who are really paying attention, you can see the spoof on the replay of Special Report with Bret Baier early tomorrow morning. Special Report airs again at 2 am EDT and 3 am CDT Tuesday, April 20.

A bit after tax season, perhaps. But while April 16 may be a day of relief for those who filed their taxes on time, the IRS is just getting cracking.

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.

If you haven’t seen the parody of TaxMasters commercials featuring CEO and company founder Patrick Cox on the Jay Leno show, you’re missing out. Our hat’s off to Jay Leno and his team. Although we will say that the actor playing Patrick Cox left a bit to be desired where the red beard was concerned!

While it’s not the same as seeing the real thing, here’s the transcript of the skit:

Leno: Well, it’s tax day. April 15. Everybody’s feeling the tax pressure, even the TaxMasters guy, Patrick Cox. You ever see that guy? Does those ads for TaxMasters? Well this is his roughest week and he’s under a lot of pressure. And you can see, well here, take a look.

Monday

Are tax problems keeping you up at night? Call TaxMasters and I will personally share all of my secrets to falling asleep including, but not limited to, chamomile tea, contour body pillow, and the music of Josh Groban. TaxMasters, we help you get to sleep.

Tuesday

Are sleepless nights due to tax problems putting a strain on your marriage? Call TaxMasters and I will personally help you better communicate with your wife, so you can tell her everything including, but not limited to, your sexual fantasies, your secret disappointement in your son, and what you would like her to do to look less old. TaxMasters, we help you fix your marriage.

Wednesday

Has your attempt at fixing your marriage backfired? Has your erradic behavior due to tax problems pushed your wife into an affair with a younger, more stable man? TaxMasters will effectively communicate your displeasure to her lover with the help of pellet guns, bees, and my step brothers Silas and Hoit. TaxMasters. We will scare off your wife’s lover.

Today

Have tax problems led to the accidental death of your wife’s lover? Do you need to flee the country immediately? TaxMasters can provide disreet methods of escape including, but not limited to, pack animals, a cello case on wheels, and extreme plastic surgery. TaxMasters. Helping you flee the country after your step brothers accidentally killed your wife’s lover who she went to after you told her to get a face lift in an attempt to better your marriage which was failing due to insomnia brought on by your tax problems.

 Very funny stuff, Jay. You made our week!

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.

Glenn Beck Controversy Comes to Tax Masters

Whether you are a current, prospective or past customer of ours at TaxMasters, or simply pay attention to the commercials that run throughout the day on cable and network TV, it’s likely you have seen a TaxMasters commercial.

There has been a recent wrinkle to these advertisements though and it’s not without controversy. It relates to FOX News and Mr. Glenn Beck - but I’ll get to that in a moment.

Our reasons for advertising via television are fairly straightforward. Tax payers across the United States are dealing with tax problems like large debts owed to the IRS and past due returns that are still un-filed. Our growth over the past two years illustrates just how large the demand is for help with tax problems and dealing with the IRS.

Not surprisingly, the best way to reach - and help - these taxpayers, is television. CNN, MSNBC and FOX News and others are among the outlets where you’ll see commercials (with my smiling face) talking about how TaxMasters can help those with tax problems. 

Back to the controversy.

FOX News host Glenn Beck has been the focus of passionate debate and discussion - for and against him - for most of his career. That has only intensified in recent years as Mr. Beck has chosen positions on issues that have offended and angered some, while finding support among others.

So what does this have to do with TaxMasters? We recently have been hearing from individuals that are opposed to our advertisements running during Mr. Beck’s program.

The Service Employees International Union (SEIU) is among the organizations that are encouraging people to contact us and share their opinions on Glenn Beck and why we should not advertise during his show. In fact the SEIU has a dedicated site that encourages folks to contact us (you can view it here).

On the flip side, we’ve received the same passionate outreach from supporters of Mr., Beck’s show. It’s no exaggeration to say that emotions run high on both sides.

It’s important we do hear these concerns and we want the feedback! I am inviting people from both sides of the debate to contact us and share their position on this topic. We have set up a dedicated phone line at 281-497-4226, ext. 7000 to give everyone the proper forum and help us understand both sides of this debate.

You can also share your feedback via the comments here on the blog. Please remember, be constructive and respectful and comments will be moderated.

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.

Tax Break for Employers Hiring Unemployed Individuals

Employers who hire unemployed workers this year (between Feb. 3, 2010 and the end of the year) may qualify for a 6.2 percent payroll tax incentive. this would exempt the employer from their share of Social Security taxes on wages paid to these workers after March 18, 2010. This reduced tax withholding will have no effect on the employee’s future Social Security benefits, and employers still need to withhold the employee’s 6.2 percent share of Social Security taxes, as well as income taxes.

Tax Break for Employers Retaining Employees

For each worker retained for a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.

The two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify, but only if the workers they are replacing left voluntarily or for cause.

The new law requires that the employer obtain a statement from each eligible new hire certifying that he or she was unemployed during the 60 days before beginning work,  or that he or she worked fewer than a total of 40 hours for someone else during the 60-day period. The IRS is currently developing a form employees can use to make the required statement.

Businesses, agricultural employers, tax-exempt organizations and public colleges and universities all qualify to claim the payroll tax benefit for eligible newly-hired employees. Household employers cannot claim this new tax benefit.

Claiming the Benefits

Employers can claim the payroll tax benefits on the federal employment tax return they file quarterly beginning in the second quarter of 2010. We expect to see revised forms and further details on these two new tax provisions posted on IRS.gov during the next few weeks.

This is a fantastic new tax break for employers who are growing and adding head-count. We highly doubt whether employers who were not already planning on hiring new employees will be able to participate. But this is certainly welcome news to those who will be able to claim the benefits.

We would caution businesses to work closely with a reputable tax preparer in determining whether you qualify for this tax break.

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.