Who can you trust regarding solving your IRS income tax problems? One would think that the IRS with its massive resources and budget would get it right. However, that is not the case. Despite their publicized assistance programs, the facts are that they are unlikely to solve tax problems for you. They have been known to give out incorrect information with alarming frequency.
Millions of Americans will have tax problems with the IRS every year. While this might not make you feel any better, what you really need to know is that the IRS makes mistakes. If you get a notice or letter from the IRSyou then need to take action. If no action is taken, the IRS will pursue collection against you. If you are unable to deal with this, you may want to consult a tax attorney or CPA.
The IRS requires that you file a tax return and compute the taxes due for the year. What you owe is the difference between what you computed as owing less tax deductions at source from your pay check plus any installments that you made.
The IRS will make their own calculations. Here are some examples of the type of errors that the IRS can make:
Banks and other financial institutions file 1099 forms with the IRS detailing interest and dividends that were paid to you. If the amounts on the 1099 dont match up with your tax return you are likely to get a letter from the IRS.
Math errors the IRS could have typed in a wrong amount thus triggering a difference between your return and the taxes computed by the IRS.
They might have given you incorrect information, then you compute your taxes owing based on the bad advice.
Self employed income incorrectly reported.
The IRS believes that you under reported your income.
Business or investment losses not taken into account.
If you believe that you have received a notice from the IRS and it doesnt make sense to you, it is likely an error. You must take action to avoid the heavy hand of their collections staff. Compile the facts and send it to the IRS by certified mail. If the IRS disputes your proof, you have appeal rights but you must act within specified time limits. If you dont feel comfortable dealing with this yourself, then you should consider hiring a tax profession tax attorney or CPA.
John Spurgeon is a tax attorney in Pasadena, California servicing clients in the greater Los Angeles area. John Spurgeon & Associates, who are both tax attorneys and CPAs, have the proven knowledge to effectively deal with the IRS and the Franchise Tax Board. Please call 626-440-9518 for a complimentary initial consultation.
About John Spurgeon & Associates
John Spurgeon & Associates is a professional services firm located in Pasadena, California with a focus on tax law and related accounting services. They have extensive experience with federal and state income taxes, payroll taxes and sales taxes. They represent business, non-profits and individuals against the IRS and the Franchise Tax Board (California State Taxes). As both tax attorneys and Certified Public Accountants they offer a broad range of tax related services.
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