Understanding IRS Transcripts
IRS transcripts are official records of your tax filings with the Internal Revenue Service (IRS). They summarize key information such as income reported, filings, return status, and adjustments made by the IRS. Accessing these transcripts is crucial for individuals and businesses alike to ensure that their tax records are accurate and complete.
The Importance of Monitoring IRS Transcripts
Regular monitoring of IRS transcripts can help prevent unpleasant surprises such as penalties or audits. By keeping an eye on these records, you can quickly identify discrepancies or unfiled taxes that may warrant immediate attention. This proactive approach allows you to correct issues before they escalate into more significant problems with the IRS.
How to Access IRS Transcripts
The IRS provides several methods to access your transcripts. The quickest way is through their online service, Get Transcript Online, which allows you to view, download, and print your transcripts immediately. Alternatively, you can request them by mail or phone, but these methods typically take five to ten business days. Ensuring you have these documents on hand when needed provides peace of mind and can assist in swift financial decision-making.
Utilizing a Tax Professional
While it’s possible to monitor transcripts on your own, enlisting the expertise of a tax professional can offer added benefits. Professionals can interpret complex entries, provide insights into potential red flags, and assist in promptly addressing any issues detected in your transcripts. This guidance is especially valuable in navigating more intricate cases involving back taxes or ongoing settlements.
Benefits of Regular Monitoring
By regularly monitoring your IRS transcripts, you gain a deeper understanding of your financial standing and obligations. This monitoring can reveal if the IRS received your tax return, adjusted any information, or if there are any outstanding balances or refunds. Consistent review helps maintain accurate records, preparing you for future filings or any interactions with the IRS. Regular IRS transcript monitoring is a small step that can result in substantial savings and peace of mind by ensuring you remain compliant and informed about your tax obligations.
Contact J&J Tax Resolutions and ask about our Transcript Monitoring Service, 516-821-8193 email, info@jjtaxgroup.com
Tax Resolutions
IRS vs. Accountants: Who to Call for Tax Issues
When tax season rolls around or a tax-related issue arises, many individuals find themselves unsure whether to contact the IRS or their accountant. It’s a common confusion, but understanding the roles each plays can save you time and money. While the IRS is a vital resource for specific inquiries, accountants offer personalized financial management advice, making them invaluable partners in navigating the complex tax landscape.
General Tax Inquiries
For general tax queries or clarifications on tax laws, it’s advisable to reach out to an accountant. Accountants provide tailored advice, helping you maximize deductions and optimize your financial situation according to current tax regulations. Their role is to interpret these laws within the context of your unique financial landscape, ensuring you comply while minimizing liabilities.
Notice or Letter from the IRS
Receiving a notice or letter from the IRS can be daunting. This is where an accountant’s expertise becomes crucial. They can interpret the communication accurately, advise on the necessary steps, and ensure that you respond adequately. Allowing an accountant to manage this correspondence can prevent misunderstandings and avert potential penalties.
Tax Return Preparation and Filing
When it comes to preparing and filing tax returns, accountants shine as strategic navigators. They have extensive knowledge of tax laws and possess the skills to ensure that your return is prepared accurately, minimizing your tax liabilities. Utilizing an accountant for filing can also safeguard against errors that might trigger audits or additional scrutiny.
Tax Disputes or Audits
Engaging an accountant for tax disputes or audits ensures that you have experienced representation. They are adept at organizing necessary documentation and presenting a clear case on your behalf. Their support can make the audit process smooth and less stressful while seeking the most favorable outcomes.
Identity Verification
If you need to undergo identity verification, contacting the IRS directly is essential. However, it’s wise to consult an accountant to verify the request’s legitimacy and understand any implications. An accountant can guide you on the proper procedures to follow, providing peace of mind during the process.
When managing your tax affairs, consider the complementary roles of the IRS and accountants. Establishing a relationship with a trusted accountant can provide ongoing benefits in tax planning, preparation, and resolution, ensuring you’re equipped to tackle any tax challenge. Stay informed about tax regulations, and don’t hesitate to seek professional guidance when you receive any IRS communications or have financial concerns. Recognizing when to call an accountant or the IRS can empower you to handle tax matters with confidence.
You Received an IRS Notice, Now What?
After the pandemic shut down and collection freezes by the IRS it is now time for the IRS to push their collection process. IRS notices have been and will continue to be sent to collect back tax liabilities owed to the Federal Government.
So, what do you do if you receive a notice from the IRS? There are four choices that you have.
First is to pay the amount due without questioning it and be done with it. While this may bring you peace of mind did you know that 70% of all tax notices sent are incorrect? Just because the IRS claims you owe them money doesn’t mean they are correct. They only have one side to the story. There may be deductions or other issues that may cause that amount to be reduced. You should never accept the amount without fully understanding what they are proposing to you.
The second option is to set up a never-ending monthly payment plan. The plan that will continue to accrue interest and may result in paying for many years.
The Third option, which seems to be the most common, is to ignore the notice. This “friendly” notice will turn into more threating notices and eventually lead to a tax lien and possibly a levy on your wages and/or bank account. These actions are very serious and can be very damaging to you.
The final option is to try and reduce the debt. How can that be done? All depends on the circumstances. Filing missing returns, amending returns that may have been filed inaccurately, looking to reduce penalties, these are all possible ways to help reduce tax liabilities.
So, should I hire a professional to help me resolve my IRS problems?
Sometimes taxpayers with IRS tax problems decide to face the IRS on their own. Sometimes they hire a professional like a CPA, Attorney or EA, but not someone who specializes in tax resolution. The best thing to do when faced with an IRS Problem is to hire an expert in tax resolution so you can get the best result possible.
Even if you owe $10,000 or less, have all your income tax returns filed, and are able to pay the amount due over 36 months with a guaranteed a monthly Installment Agreement (payment plan), it’s good to pay a small fee to have a professional set it up for you.
Here are the top 4 reasons why hiring a CPA, Attorney or EA is the smart thing to do if you OWE money to the IRS
1. Contrary to popular belief, you DO have rights as a taxpayer you probably don’t even know exists. One of those rights is the right to representation. If an IRS revenue officer or revenue agent calls or “visits” you, did you know you are under no obligation to answer any of their (very intrusive and condescending) questions? You politely respond by asking for their contact information and telling them you are in the process of hiring a professional to represent you and that this person will contact them directly. A CPA or EA that deals with IRS problems for a living knows the “ins” and “outs” and how to deal with the IRS so that your rights are protected. A tax resolution specialist also knows how to get you the lowest possible settlement. Generally, our clients never meet or speak with the IRS once we’re on the scene!
2. If you owe between $10,000 and $200,000 plus, the IRS has many NEW flexible programs available to taxpayers such as Offer in Compromise, Partial Pay Installment Agreements, Payment Plans, Penalty Reduction, and Currently Not Collectible Status to name a few. Each carries with it its own unique process, procedures and qualifications. Having an experienced Tax Pro in your corner ensures you are taking advantage of the best options available to you.
3. Having unfiled returns (on average our clients have more than 3 years of unfiled returns) qualifies for getting professional help. Not filing legally required tax returns when due is considered a federal misdemeanor which carries with it a $10,000 fine and potential jail time. Generally, the IRS won’t throw you in jail unless the taxpayer is deemed to owe a lot of money and is uncooperative about getting the returns filed. Hiring a professional to represent you is the smartest move you can make here!
4. If you are being audited or about to be – The IRS will ask you about 50 very intrusive questions in the initial interview with them. How you answer these questions will dictate the fate of your case. Having a tax resolution specialist conduct these meetings WITHOUT you is the best course of action I can recommend. Half of the referrals to the IRS’s criminal investigation division (CID) come from that “nice” guy or gal you’re sitting across the table from at the audit.
One last thing….ask yourself this question: Would you go to court without a lawyer? If you answered “yes” hopefully you know the law inside and out concerning your case, but if representing yourself doesn’t seem like a good idea it’s best to hire somebody who is well versed in the subject matter. Well, it’s the same thing with the IRS. Having someone who knows how to negotiate and deal with the IRS may be the best money you’ve ever spent!