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IMPORTANT TAX TERMS TO KNOW FOR THE REAL ESTATE PROFESSIONAL AND LANDLORDS

By IRS definition, rental real estate is a passive activity.

Rental real estate may have limited losses unless one of the exceptions applies.

In addition, you do not need to be a licensed real estate agent or broker to qualify as a Real Estate Professional, many real estate investors will also qualify as a real estate professional in the eyes of the IRS.

It's important to consult with a tax professional or accountant for specific guidance on how these terms and rules apply to your tax situation. Almost all tax laws have limitations, exclusions or exceptions. Also, many tax situations are based on facts and circumstances of the situation and the taxpayer’s intent, finally tax laws and regulations can and do change, sometimes yearly.

The IRS has established specific criteria to define a real estate professional for tax purposes. This designation offers certain advantages that can significantly impact the tax treatment of real estate investments.

In this posting, we will explore the IRS definition of a real estate professional and discuss the benefits associated with this status.

For those that are not real estate professionals, rental real estate losses may be limited.

Limits on Rental Real Estate Losses

If you have a loss from your rental real estate activity, two sets of rules may limit the amount of loss you can deduct. You must consider these rules in the order shown below.

1. At-risk rules. These rules are applied first if there is investment in your rental real estate activity for which you aren’t at risk.

2. Passive activity limits. Generally, rental real estate activities are considered passive activities and losses aren’t deductible unless you have income from other passive activities to offset them. However, there are exceptions.

Excess business loss limitation.

In addition to at-risk rules and passive activity limits, excess business loss rules apply to losses from all noncorporate trades or businesses. Any limitation to your loss resulting from these rules will be treated as a net operating loss that must be carried forward and deducted in a subsequent year.

At-Risk Rules

You may be subject to the at-risk rules if you have:

• A loss from an activity carried on as a trade or business or for the production of income, and

• Amounts invested in the activity for which you are not fully at risk.

In most cases, any loss from an activity subject to the at-risk rules is allowed only to the extent of the total amount you have at risk in the activity at the end of the tax year. You are considered at risk in an activity to the extent of cash and the adjusted basis of other property you contributed to the activity and certain amounts borrowed for use in the activity. Any loss that is disallowed

Passive Activity Limits

In most cases, all rental real estate activities (except those of certain Real Estate Professional) are passive activities. For this purpose, a rental activity is an activity from which you receive income mainly for the use of tangible property, rather than for services.

Deductions or losses from passive activities are limited. You generally can’t offset income, other than passive income, with losses from passive activities. Nor can you offset taxes on income, other than passive income, with credits resulting from passive activities. Any excess loss or credit is carried forward to the next tax year.

Special Allowance for Rental Real Estate Activities with Active Participation.

If you actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 of loss from the activity from your nonpassive income. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities.

Exception for Rental Real Estate with Active Participation

If you or your spouse actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 of loss from the activity from your nonpassive income. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. Similarly, you may be able to offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception.

Note: The special allowance isn’t available if you were married, lived with your spouse at any time during the year, and are filing a separate return.

Active participation.

You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions or arranged for others to provide services (such as repairs) in a significant and bona fide sense. Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and other similar decisions.

Maximum special allowance.

The maximum special allowance is:

• $25,000 for single individuals and married individuals filing a joint return for the tax year,

• $12,500 for married individuals who file separate returns for the tax year and lived apart from their spouses at all times during the tax year, and

• $25,000 for a qualifying estate reduced by the special allowance for which the surviving spouse qualified.

If your MAGI is $100,000 or less ($50,000 or less if married filing separately), you can deduct your loss up to the amount specified above. If your MAGI is more than $100,000 (more than $50,000 if married filing separately), your special allowance is limited to 50% of the difference between $150,000 ($75,000 if married filing separately) and your MAGI.

Generally, if your MAGI is $150,000 or more ($75,000 or more if you are married filing separately), there is no special allowance.

The Real estate professionals.

If you qualify as a real estate professional as defined by the IRS for the tax year, you need to meet both of the following requirements.

• More than half of the personal services you perform in all trades or businesses during the tax year are performed in real property trades or businesses in which you materially participate.

• You perform more than 750 hours of services during the tax year in real property trades or businesses in which you materially participate.

If you qualify as a real estate professional, rental real estate activities in which you materially participated will not be treated as passive activities.

To determine whether you materially participated in your rental real estate activities, each interest in rental real estate is a separate activity unless you elect to treat all your interests in rental real estate as one activity.

Don’t count personal services you perform as an employee in real property trades or businesses unless you are a 5% owner of your employer. You are a 5% owner if you own (or are considered to own) more than 5% of your employer's outstanding stock, or capital or profits interest.

Don’t count your spouse's personal services to determine whether you met the requirements listed earlier to qualify as a real estate professional. However, you can count your spouse's participation in an activity in determining if you materially participated.

Real property trades or businesses.

A real property trade or business is a trade or business that does any of the following with real property.

• Develops or redevelops it.

• Constructs or reconstructs it.

• Acquires it.

• Converts it.

• Rents or leases it.

• Operates or manages it.

• Brokers it.

Choice to treat all interests as one activity.

If you were a real estate professional and had more than one rental real estate interest during the year, you can choose to treat all the interests as one activity. You can make this choice for any year that you qualify as a real estate professional. If you forgo making the choice for one year, you can still make it for a later year.

If you make the choice, it is binding for the tax year you make it and for any later year that you are a real estate professional. This is true even if you aren’t a real estate professional in any intervening year. (For that year, the exception for real estate professionals won’t apply in determining whether your activity is subject to the passive activity rules.)

Material participation.

Generally, you materially participated in an activity for the tax year if you were involved in its operations on a regular, continuous, and substantial basis during the year.

Material Participation in a trade or business activity isn’t a passive activity if you materially participated in the activity.

Material participation tests.

You materially participated in a trade or business activity for a tax year if you satisfy any of the following tests.

1. You participated in the activity for more than 500 hours.

2. Your participation was substantially all the participation in the activity of all individuals for the tax year, including the participation of individuals who didn’t own any interest in the activity.

3. You participated in the activity for more than 100 hours during the tax year, and you participated at least as much as any other individual (including individuals who didn’t own any interest in the activity) for the year.

4. The activity is a significant participation activity, and you participated in all significant participation activities for more than 500 hours. A significant participation activity is any trade or business activity in which you participated for more than 100 hours during the year and in which you didn’t materially participate under any of the material participation tests, other than this test. See Significant Participation Passive Activities under Recharacterization of Passive Income, later.

5. You materially participated in the activity (other than by meeting this fifth test) for any 5 (whether or not consecutive) of the 10 immediately preceding tax years.

6. The activity is a personal service activity in which you materially participated for any 3 (whether or not consecutive) preceding tax years. An activity is a personal service activity if it involves the performance of personal services in the fields of health (including veterinary services), law, engineering, architecture, accounting, actuarial science, performing arts, consulting, or any other trade or business in which capital isn’t a material income-producing factor.

7. Based on all the facts and circumstances, you participated in the activity on a regular, continuous, and substantial basis during the year. You didn’t materially participate in the activity under test (7) if you participated in the activity for 100 hours or less during the year. Your participation in managing the activity doesn’t count in determining whether you materially participated under this test if:

• Any person other than you received compensation for managing the activity, or

• Any individual spent more hours during the tax year managing the activity than you did (regardless of whether the individual was compensated for the management services).

Participating spouse.

If you are married, determine whether you materially participated in an activity by also counting any participation in the activity by your spouse during the year. Do this even if your spouse has no interest in the activity or files a separate return for the year.

I wish I could say trying to correctly determine how to qualify and apply the numerous and many times overlapping criteria is easy and straightforward.

As you can see, the actual determination may be very difficult to determine.

But if you qualify as a real estate professional under the IRS definition can offer significant tax advantages for individuals involved in real estate trades or businesses. By meeting the criteria of spending more than 50% of personal services time and substantial participation, investors can benefit from relief in passive activity loss limitations, exemption from the Net Investment Income Tax, increased deductibility of rental property expenses, and more.

I wish I could tell you that rental real estate losses and the potential passive activity limits was a simple determination.

I also wish I could tell you how simple it is to make a determination if you qualify for an exception of if you will meet the definition of a Real Estate Professional for Tax Purposes.

You can see firsthand that is not a simple process.

But if you meet the definition for a real estate professional or the exception for passive activity losses, you and your clients may open the door to significant tax savings.

At www.TaxReliefServices.com we have Tax Relief in Our DNA!

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Are you really an Innocent Spouse?

The IRS might think so!

But it won’t be easy !

You May Be Eligible!

You may request innocent spouse relief if:

You filed a joint return with your spouse

Your taxes were understated due to errors on your return

You didn't know about the errors

Errors that cause understated taxes include:

Unreported income

Incorrect deductions or credits

Incorrect values given for assets

When you file a joint tax return with your spouse, regardless of how you file, you are both responsible for the tax and any interest or penalty due.

This is true even if:

You later divorce

A divorce decree states that your spouse is responsible for the taxes

Your spouse earned all of the income

The IRS considers many facts about your situation before a decision is made.

You are not eligible for relief in any year when:

You signed an offer in compromise with the IRS

You signed a closing agreement with the IRS covering the same taxes

A court made a final decision denying you relief

You participated in a related court proceeding and didn't ask for relief

Types of Innocent Spouse Relief

When you apply for innocent spouse relief, review all types of relief if you are eligible. You don't have to request them separately.

Separation of Liability Relief

If your joint tax return understated the amount of taxes due and you are divorced, separated or no longer living with your spouse, you may be able to pay only your share of the understated taxes.

Equitable Relief

If you are not eligible for other forms of relief, you may get relief from paying taxes that your spouse understated or underpaid if it would be unfair to hold you responsible based on all the facts and circumstances.

Just another method to rid yourself of a martial liability if you qualify.

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For the Love 😍 of Money

Don’t lose your Money 💵🙀🛑

To the IRS

If you fail to file and claim your refund with in 3 years or 2 years from when paid you May end up losing your refund

There are some exceptions, one major one is due to “Financial Disability”.

The IRS defines financial disability IRC 6511(h)

Financially disabled

(A) In general

(1), an individual is financially disabled if such individual is unable to manage his financial affairs by reason of a medically determinable physical or mental impairment of the individual which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered to have such an impairment unless proof of the existence thereof is furnished in such form and manner as the Secretary may require.

(B) Exception where individual has guardian, etc.

An individual shall not be treated as financially disabled during any period that such individual's spouse or any other person is authorized to act on behalf of such individual in financial matters.

If this applies, consider contacting an experienced tax professional.

This is something an amateur or inexperienced tax person will not know about

Tax Knowledge is Power, get the Power with www.TaxReliefServices.com

Education, Experience and Education make the Difference.

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QUICK TIP TAX TIP

EXTENSION BASICS

2022 Tax Return

Common Reasons to File an Extension

 Haven’t received all of your tax documents

 Don’t want to feel rushed

 Still need to organize your business expenses

 Unexpected life, Shxt Happens

Purpose of Extension

To obtain additional time to file your tax return (the forms only!) It is NOT AN EXTENSION OF TIME TO PAY WHAT YOU OWE!

The normal due date to file your individual 1040 income tax return this year is April, 18. The automatic extension gives you an additional 6 months, making the due date October 17. If the 15 falls on a Saturday, Sunday or Holiday, the due date will be the next business day.

Note

If you are out of country or in the Military different rules may apply to you.

Are if you are in a Federally Declared Disaster Area.

Natural disasters and federally declared disaster areas may have due dates extended by the IRS or your State

IRS: May 15 tax deadline extended to Oct. 16 for disaster area taxpayers in California, Alabama and Georgia

IR-2023-33, Feb. 24, 2023 — Disaster-area taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. Previously, the deadline had been postponed to May 15 for these areas.

Check with your local state tax department for extended deadlines to file.

An extension of time to file your return does not grant you any extension of time to pay your taxes.

You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties.

You must file your extension request no later than the regular due date of your return.

Qualifying for the Individual Extension

To get the extra time you must:

1. Properly estimate your 2022 tax liability using the information available to you,

2. Enter your total tax liability on line 4 of Form 4868, and

3. File the Form 4868 by the regular due date of your return. This year April 18

4. Even if you don’t owe, if you are planning on filing after the due date we suggest you still file an extension in the event you end up owing at some future date

5. If you owe but can’t make a payment with the extension you should still file the extension to cut down the penalties that will be assessed. File the extension with no payment.

Normally if you do not file an extension and you owe taxes you will be assessed

Failure to file penalty,

Failure to pay penalty, and

Interest.

If you do NOT owe taxes, you will not owe failure to file penalty, failure to pay penalty or interest.

Methods to file a Federal Extension

You can also get an extension by paying all or part of your estimated income tax due and indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card. This way you won’t have to file a separate extension form and you will receive a confirmation number for your records.

You can also mail in the extension by Completing form 4868 and making a payment if you owe taxes. If you owe no tax just mail in the completed form.

E-file Your Extension Form for Free

Individual tax filers, regardless of income, can use Free File to electronically request an automatic tax-filing extension.

Contact your accountant or tax preparer to help you file an extension.

Computer program

If you will be using one of the online or computer based programs, you can file an extension using your software.

You can obtain extension information directly from the IRS website

https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return

State Extension

Contact your local tax Department on how to obtain an extension.

The information is being provided for reference purposes only and you should always consult your own Tax, Legal or Financial advisor.

Penalties that may be applicable

1040 Late Payment Penalty

The late payment penalty is usually 1⁄2 of 1% of any tax (other than estimated tax) not paid by the regular due date of your return, which is April 18, 2023. It’s charged for each month or part of a month the tax is unpaid. The maximum penalty is 25%.

The late payment penalty won’t be charged if you can show reasonable cause for not paying on time. Attach a statement to your return fully explaining the reason. Don’t attach the statement to Form 4868.

You’re considered to have reasonable cause for the period covered by this automatic extension if both of the following requirements have been met.

1. At least 90% of the total tax on your 2022 return is paid on or before the regular due date of your return through withholding, estimated tax payments, or payments made with Form 4868.

2. The remaining balance is paid with your return.

1040 Late Filing Penalty

A late filing penalty is usually charged if your return is filed after the due date (including extensions). The penalty is usually 5% of the amount due for each month or part of a month your return is late. The maximum penalty is 25%. If your return is more than 60 days late, the minimum penalty is $450 (adjusted for inflation) or the balance of the tax due on your return, whichever is smaller. You might not owe the penalty if you have a reasonable explanation for filing late. Attach a statement to your return fully explaining your reason for filing late. Don’t attach the statement to Form 4868.

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How to stay clear of shady tax preparers

Tips on carefully choosing tax professionals

How to avoid unscrupulous tax return preparers and how to find the right tax professional.

People should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. Some “ghost” tax preparers refuse to sign the tax return or ask people to sign a blank return. These are all common warning signs, and people should always rely on an experienced and trusted tax professional.

“Most tax professionals offer excellent advice and can really help people navigate complex tax issues. But there are we instances where unsuspecting taxpayers are “ghosted” by unscrupulous tax preparers with bad advice who quickly disappear,

Choose carefully: Check credentials of tax return preparers

Taxpayers should choose a tax preparer as carefully as they choose a doctor or lawyer. After all, the tax preparer is entrusted with sensitive personal and financial information. While there are different types of tax preparers with varying levels of credentials and qualifications, there are constants when it comes to finding a preparer:

• A taxpayer's individual needs will determine which kind of preparer is best for them.

• Taxpayers are ultimately responsible for all the information on their income tax return, regardless of who prepares the return.

• Tax professionals are required to have an IRS Preparer Tax Identification Number (PTIN) to prepare federal tax returns.

The IRS offers resources for taxpayers to educate themselves on types of preparers, representation rights, as well as a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This directory can help you find a return preparer with specific qualifications to fit your specific needs. The directory is searchable and sortable.

Don’t get ghosted: Avoid shady or self-serving tax professionals

Most tax return preparers provide outstanding and professional service. Unfortunately, there are also some unethical tax preparers that should be avoided at all costs.

A major red flag or bad sign is when the tax preparer is unwilling to sign the dotted line. Avoid these “ghost” preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN) as required by law.

Not signing the return could mean the preparer may be looking to make a quick profit by promising a big refund or charging fees based on the size of the refund. This leaves the taxpayer vulnerable and on the hook for any misinformation on the return. Taxpayers should never sign a blank or incomplete return.

Shady tax preparers may:

• Ask for a cash only payment without providing a receipt.

• Invent false income to try to get their clients more tax credits.

• Claim fake deductions to boost the size of the refund.

• Direct refunds into their bank account, not your account.

Taxpayers can report preparer misconduct to the IRS using Form 14157, Complaint: Tax Return Preparer. If a taxpayer suspects a tax return preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit.

Make a difference: Report fraud, scams and schemes

It is a wise idea to report individuals who promote improper and abusive tax schemes as well as tax return preparers who deliberately prepare improper returns.

To report an abusive tax scheme or a tax return preparer, people should mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or Preparers and any supporting materials to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:

Internal Revenue Service Lead Development Center

Stop MS5040

24000 Avila Road Laguna Niguel, CA 92677-3405

Fax: [phone]

Experience Counts

There are many weekend warriors who work for National Tax Firms, so if you choose someone who does tax preparation after taking an online course, you might as well do the return yourself and a computer based software program.

Credentials Count

Look for someone who is an Enrolled Agent. EA, they have take a special exam and are authorized to practice before the IRS. Enrolled Agents are required to meet yearly educational requirements.

An enrolled agent have earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.

Enrolled agents, have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.

Look for the EA logo

Check for a website or online reviews

While there is no perfect method to verify someone’s qualifications, doing a search online should provide some comfort that the person and company exist. Checking for online reviews and ratings will also help to ensure the person you hire at least meets your criteria.

TAX KNOWLEDGE IS POWER!

GET THE POWER WITH WWW.TAXRELIEFSERVICES.COM

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When and Why will the irs contact you in person ?

Not Often but in some situations!

Most IRS contacts are through regular mail delivered by the United States Postal Service. However, there are limited circumstances when the IRS will come to a home or business as part of a collection investigation, an audit or an ongoing criminal investigation.

it is usually for an audit and/or collection issues or when the criminal investigation division is contacting you.

IRS in-person visits

IRS employees that may make face-to-face visits outside an IRS office include revenue officers, revenue agents and IRS Criminal Investigation special agents. IRS employees are trained to respect your rights, and there are some important facts to keep in mind about the different types of visits.

Revenue officers are IRS civil enforcement employees who work to resolve compliance issues such as unfiled returns and/or taxes owed – all situations where the taxpayer typically would have received multiple IRS letters in advance.

These in-person visits may be unscheduled and can be to share information, inform you of tax filing and payment obligations and work with you to resolve tax issues and bring you into compliance.

They conduct interviews to gather financial information and provide you with the necessary steps to become and remain compliant with the tax laws.

Revenue agents usually conduct in-person field audits that are normally at the your home, place of business or accountant's office where the organization's financial books and records may be located. Revenue agents will make contact via mail or phone prior to any visit.

Revenue officers and agents always carry two forms of official credentials with a serial number and their photo. Taxpayers have the right to see each of these credentials and can also request an additional method to verify their identification.

Remember, you should know you have a tax issue before these visits occur since multiple letters should have been mailed out.

Get More information on identifying legitimate IRS representatives and how to report scams at IRS.gov.

IRS-CI special agents investigate potential criminal violations of the Internal Revenue Code and related financial crimes. IRS-CI's investigative jurisdiction includes tax, money laundering and Bank Secrecy Act laws. IRS-CI special agents always present their law enforcement credentials when conducting investigations.

IRS-CI may visit a your home or business unannounced during an investigation. However, they will not demand any sort of payment. Learn more about IRS-CI on IRS.gov.

You should never give out personal or financial information unless you know that the person requesting it is from the IRS. If you have any questions or are unsure if a contact is legitimate, you should always contact the IRS directly for assistance.

Tax Knowledge is Real Power!

Get the Power with WWW.TAXRELIEFSERVICES.COM

Don’t wait another day!

Tax Problems don’t go away!

Will the IRS contact you in person

Maybe

It depends

Voting ended onMar 27, 2023

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HAWAII TAX PROBLEMS?

No National Mainland Firm Can Actually Help You Even If They Say They Can‼️😱

Hawaii Department of Taxation Basics

Some Need to Know things about Hawaii Tax Issues

I want to provide you with some basic information about common Hawaii taxes.

Again, let me stress the basics. As with all tax situations, it generally depends upon the facts and circumstances of the situation.

Never filed your Hawaii tax return!

If you never file a tax return, there is no time frame for them to pursue you, regardless of what type of Hawaii tax your are talking about.

How far back will they go?

If Hawaii determines you should have filed a tax return, they can and do routinely go back 8 to 10 years, but they can go back further, it is at their discretion.

Is this a problem?

I don’t know about you but most normal people do not have or keep records going back that far!

That can be a real problem! Especially if you don’t have business records or job related expenses or mortgage interest statements etc.

You may be ble to reconstruct your records and the Hawaii Department of Taxation may allow it.

Why does Hawaii wait so long to contact you?

In short, Because they can! They generally have no obligation to tell you and they generally don’t contact you until it’s to late and you are being Audited or if you owe they may have levied your bank account or garnished your wages.

The Hawaii DEPARTMENT OF TAXATION probably knows you need to file but they just don’t have the personnel to go after everyone who has not filed, but eventually they will get around to coming after you! It is only a mater of time.

What if you don’t file?

You must be a gambler because you are rolling the dice. While it doesn’t happen often, Just the lack of filing and paying over the tax is enough for Hawaii to actually come after you and prosecute you. Check the news archives, you will find someone they have come after and made an example of. Generally they don’t prosecute but they can!

What will I owe?

Many times is is not the Tax tax you owe, but the penalty and compounded interest that is due. The interest rate they charge is 8%. I don’t know anyone charging 8% or paying you 8% on a savings account. Manybe not as bad as credit card but it must be a close second. Imagine the interest ona 8 or 10 year old tax liability.

What kind of taxes might you owe?

The most common Hawaii tax is the Hawaii income taxes. The second most common and the one more likely to be overlooked is General Excise Tax. In simple terms general excise taxes are what are called a gross income tax. It is based upon the gross income regardless of expenses. The GE tax applies to almost all forms of self-employment income, Uber, Lyft, multi-level marketing, Turo, consulting income, rental income, commissions, royalties etc. Seem like it applies to almost everything, because it does!

Doesn’t sound fair,well it is probably not!

GE taxes can range from .5% to 4.5%.

Have a rental property?

If you rent short-term, less than 30 days at a time you better know about “Transient Accommodation Tax” with a rate of 10.25%

Use VRBO or AirBnB or something similar, you should be filing and paying TAT. Talk about a communist state, this may take the cake. Think you are free to do what you want?

Rental Vehicle Tax

If you are doing Turo, you May be liable for additional taxes. Do some research if this applies to you.

Can you Deal with the Hawaii Department of Tax Yourself?

You could, but I wouldn’t recommend it! I am not just saying that. They are one of the most difficult agencies to work and deal with and if you miss or ignore the time to take action, you will have an uphill battle.

Try dealing with the HAWAII Department of Taxation on your own and let me know how it goes!

My team and I have been dealing with the Hawaii Department of tax for over 21 years and have been very successful.

Hawaii tax Policy and Law

The Department of generally has very little written tax policy. There are laws on the books but much of what the department of tax does will have no clear policy. Very little of there policy is available for review. Most things they do are based on there discretion. That makes it very hard if not impossible to deal with them.

On many occasions I have asked the same question to different auditors or collectors and get several different answers. The reason this can happen is because there is not written policy that they publish or that they are required to follow. Many of the laws are vague or leave it to their discretion; how do you challenge rules or policies in those situations. Very carefully!

There are ways to beat the Hawaii Department of Taxation. That is why you need a qualified, experienced and trained Tax Professional who has been dealing with the Department of Taxation for over a 21 years.

I have only touched on some of the basics. Every situation is different and is based on facts and circumstances.

Always consult you own Tax, Legal or Financial advisor or do your own research and due diligence.

As I stated this is just the basics. Do Not rely upon it with out doing your own research.

The State of Hawaii does offer penalty waivers, payment plans, audit reconsideration, amended tax returns, board of review appeals, formal appeals and legal proceedings. These are the most common options available to you.

The State does have a statute of limitations.

A statute of limitations is an amount of time that they must take action or do something. If they don’t, the law stops them from taking an action. Such as auditing your tax return or collecting back taxes.

If I have made your head spin, now you know what I go through on a daily basis.

If dealing with the Hawaii Department of Taxation was so easy, everyone would be doing it.

Try finding someone to help you with Hawaii Tax Problems. Good Luck 🍀

Our team may make it look easy, but it’s not. We just have the education, training and experience that almost no one else in Hawaii has. I can assure you no Mainland company will be able to provide the help you need.

Hawaii Tax Knowledge is Power!

GET THE POWER WITH

WWW.TAXRELIEFSERVICES.COM

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Received a Distraint Warrant from the IRS in the Mail?

Think is Real, Thing Again because it is absolutely NOT!

Fake tax warrants

Has a distrant warrant been delivered to your door, claiming that the taxman has come calling? You’re not alone – in recent weeks there’s been an influx of fake warrants being circulated across the country. If you think it looks official you are not alone, but it just a scam to try to separate you from your Money. In this blog post we’ll explore what these false and misleading documents are and how they trick people like you who make an honest living it just can’t pay your taxes. So if you've received one of these bogus warrants recently or just want to be informed – read on!

What is a Fake Tax Warrant and why should you care

Have you ever received one of those fraudulent tax warrants, alerting you to impending legal action from some obscure government agency? Don't fret! These warrants are usually fake, often referred to as “Fake Tax Warrants,” and they not only waste your time but also scrape off a little bit of your hard earned piece of mind. With seemingly official seals and characters associated with real government documentation, these imposters can be convincing. Sadly, whenever someone is trying to dupe you out of money or personal information it’s worth taking extra precautions and making more than a few readings before submitting any channels of communication. Keep vigilant, keep safe, and don’t be fooled by Fake Tax Warrants!

How to Recognize Fake Tax Warrants

Have you ever gotten a strange letter from the tax processing unit letting you know that you have an outstanding warrant? Before you start to panic, remember the age old rule: if something seems too good to be true, it probably is! Fake tax warrants might sound ominous but they’re actually pretty easy to spot. These dreaded documents come in shoddy envelopes with spelling or grammar mistakes, pre-printed fake ID numbers, text or images that are off-centered, or even downright bizarre demands for payment. If your dubious warrant looks like it was cobbled together in someone’s living room, then you can rest assured that it’s a fake. Many of these letters actually look official and indicate an ominous treat coming your way in the next few days unless you call them.

Common Obvious Signs of Fake Tax Warrants

Are you getting strange mail from the tax processing unit, claiming that you owe a huge sum of money in taxes? Stop for a moment and take a closer look, because it probably a fake warrant. The IRS or State can and will take enforced collection action but not by a Distraint Warrant. There are some common signs of these deceptive documents, such as poor craftsmanship, out-of-date government logos, or lack of pertinent contact information. If something looks off about the supposed legal document, then chances are it probably is. Keep your eyes peeled for any fake logo and no official agency name, just the “Tax Processing Unit”. and stay protected from being scammed! Always contact the IRS or State by going directly to their website and getting an official number.

The Real Reasons Behind Fake Tax Warrants

Have you ever received one of those suspiciously fake distrait tax warrants exclusively designed to make you panic? Chances are, the answer is a resounding yes. Despite these notices coming from mysterious tax processing units, there is an explanation for why they keep sending them: to squeeze money out of unsuspecting taxpayers. The IRS or State Department of Tax has filed a tax lien to protect their interest and once that has happened, your name and the fact that you do owe back taxes has become a public record. As a Public record anyone can obtain the information and these scam companies are first in line to try to trick you. Savvy citizens can't be fooled by these bogus tax demands, so stay informed and keep your wits sharp! Keep frosty!

Don’t Believe the IRS or State is coming for your Money in 15 days!

The IRS or State can and will levy bank accounts or levy your wages, but A levy is a last resort. Also they have to give you due process and you can dispute the amount for numerous reasons. However, if you do happen to ignore real IRS notices they can levy but not in 15 days. Also they don’t expect you to pay in full, they have numerous payment options that don’t include a levy or taking your first born child or sending you to club fed for some rest and relaxation on the Taxpayers dime.

What to Do if You Receive a Fake Tax Warrant

If you ever receive a dubious-looking tax warrant from an agency that you don't recognize, don't hit the panic button just yet. Fake warrants do exist in circulation, as important documents can be counterfeited pretty easily these days if someone puts their mind to it. It's always best to take precautions and verify the source of all letters by calling the IRS directly or Department of Tax directly. In any case, it doesn't hurt to be extra vigilant when dealing with tax-related balances! Since you do owe back taxes, contact the IRS or Department of Taxation for a resolution or better yet a qualified tax professional who can help you.

Ways to Avoid Falling for Fake Tax Warrants in the Future

If you've ever been duped by a fake tax warrant, you know what an inconvenience it is. To avoid such fraud in the future, always make sure it is the actual IRS or Department of Taxation. Stay one step ahead of fraudsters and keep yourself posted with the most up-to-date information – ignorance may be bliss some days but not when it comes to taxes!

From email and phone scams to fake tax warrants - contemporary scam artists have an endless arsenal of tactics and disguises to rob unsuspecting victims. But with the right information, you can defend yourself against such deviousness. It pays to practice a “better safe than sorry” mindset and never give money or personal details unless you can be 100% sure you're dealing with a legitimate entity. After all, knowledge of what to look out for and if you know that you actually owe back taxes is your greatest shield against fraud and deception – so long as you remember to use it!

if you have tax problems, they don’t go away by themselves or by ignoring them. Every tax problem that is large or small has solutions and options available to resolve them. It’s just dealing with them in a timely manner before it becomes a problem.

This blog brought to you as a public service.

Tax Knowledge is Power, so get the Power with WWW.TAXRELIEFSERVICES.COM

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Is your Back IRS Tax Debt Assigned to a Private Collection Agency?

It’s your lucky day, really it is!

Oh boy, when the IRS turns your case over to a private collection agency, it's like being thrown into a pit of hungry wolves. These folks are relentless and won't stop until they've gotten every penny you owe - plus interest and penalties, of course. They'll call you at all hours of the day and night, send you threatening letters in the mail, and even show up at your doorstep unannounced (although I wouldn't recommend answering the door in your pajamas). It's like having a persistent ex who just won't take the hint that it's over. So if you find yourself in this situation, my advice is to buckle up and get ready for a wild ride - because these collection agents mean business.

Well not really, they are relentless but they don’t actually have much of a bite. They are more like your neighbors little yappy dog, annoying! These private collection agencies can basically only harass you through the mail or by telephone.

They can set you up with a payment plan, but not much else.

They can’t levy your bank account, they can levy your wages, they can’t file a tax lien, in fact the private collection agency can’t take any enforced collection action against you, only the IRS can do that.

The Fixing America’s Surface Transportation Act signed by the President on December 4, 2015, requires the IRS to contract with private collection agencies to help collect certain federal tax debts. Other federal, state, and local government agencies already use private collection agencies to collect overdue accounts. The law includes strong protection of taxpayer rights.

• Private collection agencies will be held to the same standards of service and taxpayer rights protection as-the IRS requires of its own employees.

• Your privacy will be fully maintained. Confidentialityrequirements and restrictions required by law will be strictly enforced.

Private collection agencies under contract to collect overdue tax accounts are required to conform to the rules, regulations, and provisions of the Fair Debt Collection Practices Act. Specific provisions of this act prohibit private collection agencies from threatening or intimidating taxpayers, but not pestering, oh no Mr. Bill!

In fact, If you don’t want to deal with the private collection agency you can request to go back to the IRS. You must submit this request in writing to the private collection agency and the case will be returned to the IRS. But I don’t know why you would ever make such a silly request, but you could.

Remember, these private collection agencies can only bug you for payment, they can not take any enforced collection action such as a bank levy or wage garnishment or file a tax lien. Only the IRS can do that.

I personally think having your case referred to a Private collection agency

Is better than having a glass of kool-aid in the shade with sunglasses.

Don’t sweat the collection agencies.

Tax Knowledge is Power! Get the Power you Deserve to beat the IRS with the One, the Only, WWW.TAXRELIEFSERVICES.COM

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When is an IRS refund not a refund?

When you lose it due to the statute of limitations

Have filed your tax return in a few years?

Are you due a Refund!

Ah, tax season: a time when wage earners everywhere scramble around to make sure all their forms are in order and that any money due is sent off. And for those of us lucky enough to get a refund? Taking a few extra moments to double-check the IRS' statute of limitations on refunds will ensure you get the most out of your hard work – and that none of those big bucks escape due to a legal technicality! So sit back, relax, and let's take an irreverent look at how long the window stays open for getting back our tax returns.

The old man, Mr. Smith, was known in the community for being a bit of an oddball. Many people thought he was harmless and just had a few quirks; one of them being his tendency to forget important things like filing his taxes on time. The years went by and soon enough, it had been over five years since Mr. Smith had filed any tax returns at all! He figured that since he got money back every year when he did file, there was no harm. Little did he know what you don’t know can hurt you! After all, he was due a refund.

However, what Mr. Smith didn't know is that there is actually a statute of limitations regarding how long you can go without filing your taxes and claim a refund.

Oh the infamous IRS Statute of Limitations! Sad thing is, if you forget to claim your refund within three years of the due date, or two years from when the tax is paid, it may be lost forever! Sad but true, this law can't be 'bargained' with. So don't wait around if you think you're owed a refund and make sure to get your paperwork in on time. After all, you don't want all your hard-earned money going back to where it came from - the IRS!

Just a note, with every tax law even the statute of limitations on claiming a refund there are exceptions but don’t count on it. Always file your tax timely!

Sad news for anyone who has ever lost a refund; even if you find it, the IRS has its own timing when it comes to claiming your money. The IRS statute of limitations on claiming a refund is three years from the date the tax return was filed or two years after taxes were paid - whichever is later. For any lost returns or refunds beyond that time frame, you'd have to settle for crying into a pillow until your dream of easy money finally dies.

As the saying goes, time is money. But when it comes to refunds, the IRS has its own version of a statute of limitations that, if not respected, could wind up costing you a lot more than just time. The IRS statue of limitations is essentially the amount of time the Internal Revenue Service has to pay you your refund. It is important to understand the timeline is set by a statute or in other words by a law to ensure that you are not missing out on any of your hard-earned refund money. So, buckle up

Be on the lookout 👀 for our blog on the statute of limitations on the IRS collecting back tax.

Not all tax professionals are actually tax professionals so make sure you do your due diligence and get an experienced, qualified and educated tax expert.

Tax Knowledge is Power! Get the Power with Tax Relief Services.

Don’t wait Another Day, Tax Problems don’t go Away

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Think the IRS can do what ever it wants!

Think again!

The Internal Revenue Manual contains the rules and regulations that IRS agents needed to follow when dealing with taxpayers.

Internal Revenue Manual

IRM | Internal Revenue Service

The IRM is the source of instructions to IRS staff, and includes policies, delegated authorities, procedures, instructions, and guidelines related to the operation of the Service.

In addition Taxpayer have rights called the Taxpayer Bill of Rights.

Learn about the Taxpayer Bill of Rights. Every taxpayer has a set of fundamental rights with the IRS. Explore your rights and our obligation

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. Explore your rights and our obligations to protect them.

The Right to Be Informed

The Right to Quality Service

The Right to Pay No More than the Correct Amount of Tax

The Right to Challenge the IRS’s Position and Be Heard

The Right to Appeal an IRS Decision in an Independent Forum

The Right to Finality

The Right to Privacy

The Right to Confidentiality

The Right to Retain Representation

The Right to a Fair and Just Tax System

The Right to Be Informed

Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.

Learn more about your right to be informed.

The Right to Quality Service

Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

Learn more about your right to quality service.

The Right to Pay No More than the Correct Amount of Tax

Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.

Learn more about your right to pay no more than the correct amount of tax.

The Right to Challenge the IRS’s Position and Be Heard

Taxpayers have the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions, to expect that the IRS will consider their timely objections and documentation promptly and fairly, and to receive a response if the IRS does not agree with their position.

Learn more about your right to challenge the IRS’s position and be heard.

The Right to Appeal an IRS Decision in an Independent Forum

Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals’ decision. Taxpayers generally have the right to take their cases to court.

Learn more about your right to appeal an IRS decision in an independent forum.

The Right to Finality

Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know when the IRS has finished an audit.

Learn more about your right to finality.

The Right to Privacy

Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary, and will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.

Learn more about your right to privacy.

The Right to Confidentiality

Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information.

Learn more about your right to confidentiality.

The Right to Retain Representation

Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.

Learn more about your right to retain representation.

The Right to a Fair and Just Tax System

Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels.

The IRS may be powerful and scary, but they are not all powerful and they do not have unfettered discretion to do what ever they want.

QUESTION AUTHORITY!!!

Tax Knowledge is Power!

Get the Power with www.TaxReliefServices.com

http://www.taxreliefservices.com

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Is the IRS Fresh Start Program Really that Fresh?

Once upon a time, there was a man named Bob who had been avoiding his taxes for years. He knew he was in trouble when he received a letter from the IRS stating that he owed them thousands of dollars.

Panicking, Bob searched the internet for any solutions and stumbled upon the IRS Fresh Start Initiative. Excitedly, he called the number provided and spoke to an agent who explained how it worked.

Bob was relieved to hear that he could apply for a payment plan and get some relief from his debt. However, just as he was about to hang up, the agent added: "Oh, by the way, you might want to start eating ramen noodles for every meal because this payment plan will last longer than most marriages."

Bob groaned but thanked the agent before hanging up. As he cooked his first bowl of ramen noodles, he couldn't help but think that this Fresh Start Initiative wasn't so fresh after all.

The Radio Ads and Television commercials try to convince that the IRS Fresh Start program is brand new.

Thai is the furthest thing from the Truth and actually very misleading.

The IRS Fresh Start Program originated in 2011 and while some of the initiatives are still around, something started over 12 years ago does not as something Fresh, wouldn’t you agree.

I have included the original IRS news release but be warned that many of the ideas and provisions have changed significantly.

If you need a Fresh Start I would start by getting a Actual Tax Professional who doesn’t try to sucker you into a 12 year old initiative.

TAX KNOWLEDGE IS POWER‼️💪🏽🏋🏼‍

Get the power with www.TAXRELIEFSERVICES.com

IR-2011-20, Feb. 24, 2011

WASHINGTON — In its latest effort to help struggling taxpayers, the Internal Revenue Service today announced a series of new steps to help people get a fresh start with their tax liabilities.

The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.

“We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” IRS Commissioner Doug Shulman said. “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.”

Today’s announcement centers on the IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include:

• Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.

• Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.

• Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.

• Creating easier access to Installment Agreements for more struggling small businesses.

• Expanding a streamlined Offer in Compromise program to cover more taxpayers.

“These steps are in the best interest of both taxpayers and the tax system,” Shulman said. “People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens.”

This is another in a series of steps to help struggling taxpayers. In 2008, the IRS announced lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems. And last year, the IRS held about 1,000 special open houses to help small businesses and individuals resolve tax issues with the Agency.

Today’s announcement comes after a review of collection operations which Shulman launched last year, as well as input from the Internal Revenue Service Advisory Council and the National Taxpayer Advocate.

Tax Lien Thresholds

The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances.

The IRS plans to review the results and impact of the lien threshold change in about a year.

A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.

A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer's credit rating, so it is critical to arrange the payment of taxes as quickly as possible.

“Raising the lien threshold keeps pace with inflation and makes sense for the tax system,” Shulman said. “These changes mean tens of thousands of people won’t be burdened by liens, and this step will take place without significantly increasing the financial risk to the government.”

Tax Lien Withdrawals

The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.

Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.

In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.

Direct Debit Installment Agreements and Liens

The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:

• Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.

• The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.

• The IRS will also withdraw liens on existing Direct Debit Installment greements upon taxpayer request.

Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.

In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.

“We are trying to minimize burden on taxpayers while collecting the proper amount of tax,” Shulman said. “We believe taking away taxpayer burden makes sense when a taxpayer has taken the proactive step of entering a direct debit agreement.”

Installment Agreements and Small Businesses

The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.

Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.

The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.

Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.

“Small businesses are an important part of the nation’s economy, and the IRS should help them when we can,” Shulman said. “By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations.”

Offers in Compromise

The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.

This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.

OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.

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Don’t want to file your taxes, No problem!

Let the IRS File for You with a SFR!

Are you constantly pestered by the Internal Revenue Service to file your taxes? Well, if so, fret no more – you can put off filing with an IRS Substitute For Return! It's like a magical solution to all of your tax worries – it’s quick and easy, and it doesn't require as much paperwork. So let's get into the details; what is this mysterious SFR exactly? Let me break it down for you: basically, an SFR is a way for the IRS to be able file a federal income tax return on behalf of taxpayers who fail or refuse to file one themselves. All without leaving them feeling like tax zombies in their own house!

So how does the IRS go about filing an SFR? First, they'll use the information from sources like W-2s and 1099s to figure out how much income was reported for that particular year. Then, any taxes due are calculated using standard deductions and tax rates. The only downside is that you won't get any credit for filing other forms like itemized deductions or credits for dependents.

If the IRS does submit an SFR on your behalf, don't worry – there's still a way for you to correct it and receive credit for any expenses that you were entitled to but weren't included in the SFR. All you need to do is file an original tax return and make sure that any expenses are detailed there.

So let the IRS be your tax fairy godmother – take advantage of an SFR, but remember to follow up by filing a correct return or you could end up paying more than you owe! That being said, it's best to file a return as quickly as possible – otherwise you could face additional penalties or interest charges in addition to any taxes due.

So if you find yourself procrastinating when it comes to filing your taxes, just remember that the IRS has an option for you – the SFR! Avoid future paperwork and get the credit you deserve by taking advantage of this magical solution today.  

Happy filing, everyone!

If the IRS has filed for you, let us help you solve your tax problems

WWW.TAXRELIEFSERVICES.COM

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CAN’T PAY YOUR TAXES?

WHAT YOU SHOULD DO!

TAX RELIEF BASICS

How it begins: financial problems, so you either (1) do not file the tax return, or (2) file the return but don’t pay the balance due. Not to worry, you tell yourself, next year will be better. Now it’s years later and a Certified letter arrives from the IRS, and the threats start, and maybe it is even to the point of a bank levy or wage garnishment. Now the IRS is wreaking havoc on your financial life and you simply do not know what to do.

We know what to do: We have helped thousands of our clients through this exact situation or very similar situations. Don’t fear, there is a light at the end of this tunnel.

As it turns out the IRS is usually only too happy to work with taxpayers, but there are some ground rule you need to be aware of and we provide a roadmap to guide you.

1. Know Why you Owe

The first step is knowing why you owe and if you agree with the amount owed if you have received a tax bill.

2. Tax Compliance

The next step in resolving your tax issue is to get into “tax Compliance.” Compliance means that you have filed all tax returns due for the last 6 years and have made your current tax payments. Once you are in tax compliance we can now work on resolving your the tax issues.

3. Collection Alternatives

There are three common collection alternatives to resolve a back-tax debt: Payment Plan, Currently Non-collectible Status and Offer-in-Compromise.

Payment Plan

A Payment Plan is an agreement to pay the taxes back over time. There are three variations of the Payment Plan: Regular, Streamlined, and Partial-Pay. Which type of agreement works best for you will depend upon your personal circumstances and current financial situation. This is something we can help you determine when you are ready.

Currently Non-collectible Status

Currently Non-collectible status is when the IRS determines that you are unable to make current tax payments due to financial hardship. When a taxpayer is deemed non-collectible the IRS will file a Notice of Federal Tax Lien to secure the Government’s position but will not take additional enforcement action to levy assets or income streams.

Offer-in-Compromise

An Offer-in-Compromise is an agreement which the IRS agrees to accept less than the total amount owed to it and the taxpayer agrees to pay the amount negotiated, as well as maintain his or her tax compliance for 5 years after the acceptance of the Offer-in-Compromise (“Offer”).

The basis for an Offer is a formula referred to as “Reasonable Collection Potential” or “RCP.” RCP is effectively the net equity in assets plus the taxpayer’s excess future income for 12 or 24 months, depending upon how the Offer is structured. This is where an experienced Tax Professional can assist with tax planning to help a taxpayer maximize the potential for the Offer’s acceptance.

If you or someone you know has an issue with paying their federal taxes and needs help to stop the IRS nightmare, please contact us by either phone at 808.589.2322 or visit us at www.TAXRELIEFSERVICES.com

Note: numerous other options are available depending on why you owe and how much you owe.

TAX KNOWLEDGE IS POWER!

GET THE POWER WITH www.TAXRELIEFSERVICES.com

Tax Problems Don’t Go Away

Don’t Wait Another Day, Call Today 808.589.2322

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Don't Let the IRS Garnish Your Wages!

The IRS can be a real pain in the butt if you owe them money. But did you know that they can actually garnish your wages if you fail to pay your taxes? That's right, folks - if the IRS comes knocking, you could end up with a huge chunk of your paycheck missing! So, how can you make sure that doesn't happen? Read on to find out more about tax garnishment and what steps you can take to protect yourself from it.

What is a Wage Garnishment?

Wage garnishment is when the IRS takes a portion of someone’s wages as payment for an unpaid tax debt. This is usually done through an administrative process known as a levy It's important to note that this action is only taken after other attempts at collecting the debt have failed. Additionally, there are certain limits set by the government on how much money can be taken from someone’s wages .

When Does It Happen?

Generally speaking, wage garnishment will occur when someone fails to pay their taxes and fails to respond to IRS notices. At that point, if nothing has been paid off and no arrangements have been made with the IRS, then they may resort to taking part of your wages each pay period until the amount owed is paid or the levy released. However, it's important to note that there are other forms of tax collection besides just wage garnishment - liens against property and bank levies are also possible depending on circumstances.

How Can I Protect Myself?

The best way to protect yourself from having your wages garnished by the IRS is simply by paying off any back taxes that you owe as soon as possible. If this isn't feasible due to financial hardship or other reasons, then making arrangements with the IRS such as an installment agreement or offer in compromise might be another option worth considering. Also, if you can establish Financial Hardship the IRS May be required to release the garnishment

Who Likes a Garnishment

Nobody likes getting their wages garnished by the IRS – it’s an unpleasant experience for both parties involved! But luckily, there are some steps you can take to protect yourself from this situation. Regardless of how you decide to handle your tax debt situation though – don’t let those pesky IRS agents get away with taking away too much of your hard-earned money!

Chose Wisely

Remember to chose a Tax Professional wisely. You want an experienced, well trained and knowledgeable expert such as the Experts at www.TaxReliefServices.com

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Should I try to solve my own tax problems with the IRS

Ultimately, the decision to hire a professional tax specialist or attempt do-it-yourself (DIY) filing will depend on your specific tax situation and the complexity of the tax issues you have. However, securing the help of a qualified expert can make all the difference when dealing with tough tax issues—so if you are facing any kind of problem with the IRS, don’t hesitate to contact us.

Is DIY Tax Resolution The Right Choice For your Tax Situation with the IRS

Are you considering trying to solve your own tax problems with the IRS. if you have tax problems? It's important to remember that hiring a professional offers several advantages, and can mean the difference between owing thousands of dollars more and opening a can of worms with an aggressive IRS Agent. The IRS is not looking out for you or your family. The IRS is looking to collect tax as quick as possible. It may be wise to seek out a tax professional when faced with tax issues.

If solving tax problems was as simple as filling out a form, anyone could do it

it may seem that all you need to do is fill out a form and give it to the IRS or call them and all your tax problems will be solved. The IRS will never tell you what options you have to solve your problems. They are simply trying to collect the tax due regardless if you owe it or not. The IRS will not suggest alternative options that may be better than just paying the tax due.

Don't Leave Your Tax Problems To Chance

A Tax Professional Can Help but there is a cost. DoIng-it-yourself May seem an easy way to save money when in reality you are actually costing yourself lost time, money and sleepless nights. Leaving your complicated tax problems in the hands of a professional could make all the difference when dealing with the IRS.

What a Tax Expert brings to the table

A True Tax Expert can Navigate Complex Tax Issues and IRS rules, regulations and tax law. Choosing A Qualified Tax Specialist is an essential step in solving a complex tax problem.

Tax law is never simple and straightforward—it takes a qualified professional who has dealt with the IRS and understands the nuances involved in navigating complex tax issues finances and make sense of complex regulations. As I said, if it was as simple as a phone call or filing out a form, anyone could do it.

What we bring to the table for our clients

We have been helping our clients resolve all forms of IRS Tax Problems for over 21 years. I am a former IRS Agent, I am an Enrolled Agent, authorized to practice before the IRS and I am a United States Tax Court Practitioner. I am a National Speaker on IRS resolution topics and a Author of several books on IRS tax issues.

Visit us at www.TaxReliefServices.com

Tax Knowledge is Power!

Get the Power

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Tax Relief Services

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Want to settle your back IRS Taxes

•Don’t trust an Offer Mill – these are fly-by-night companies that make false promises to separate you from your money.

• Offers in Compromise can significantly reduce IRS tax liabilities, but only if the criteria is met.

• Look for experienced and qualified Tax Professionals such as enrolled agents to help with settling IRS taxes.

What is an Offer Mill ?

We have have seen the Radio Ads and late night tv ads offering to settle you million dollar tax liability for a few cents.

There are many fly by night companies that promise you the world and never deliver.

An offer mills sell you a bill of goods, but not much more.. They have really good salespeople who no nothing about taxes or how to settle them, but they sure know how to make false promises and they know how to separate you from your hard earned money.

The reason these Offer mills can temporarily thrive is that once an Offer in Compromise is submitted to the IRS it can take months for the IRS to determine that the Offer submitted does not qualify and is frivolous.

These offer mills knowing submit offers that won’t qualify, but by the time you find out several months later and the company has closed down and moved next door with a new name to run the scam all over again.

Don’t be fooled by an offer mill.

Legitimate Offers for those qualified can significantly reduce an IRS tax liability, but only if you meet the criteria.

Mahalo and good luck in settling you iRS tax liability.

Look For for an experienced, well educated and qualified Tax Professional. Such as an enrolled agent.

Tax Knowledge is Power!

Get the Power with the Original www.TaxReliefServices.com

Should you trust an offer mill

Heck no

Only if you want to get scammed

Voting ended onFeb 6, 2023