Taxpayers need to keep in mind that the IRS has very broad powers to track you down and enforce collection. IRS agents are well versed in the powers vested in them and are quick to utilize them to achieve their objective of collecting your taxes. That is their single focus and they are relentless in their pursuit. Do not expect the IRS or the Franchise Tax Board for state taxes to offer assistancetaxpayers should know their rights and how to exercise them.
This is how it works:
Congress passes unbelievably complex tax laws that even tax attorneys and CPAs have a difficult time understanding and an even harder time keeping up with all the changes. Add to that all the politics and vested interests and you have a system that is very onerous on taxpayers.
If someone earns a paycheck, owns a business, rents a building, wins the lottery or a myriad of other income sources, then a tax return must be filed. Refusing to file a tax return is considered tax evasion which is a criminal offense.
These filing requirements keep an army of tax preparersCPAs and tax attorneysgainfully employed. In addition, there is another army of people who work for the IRS or the Franchise Tax Board to ensure that taxpayers prepare their returns correctly, file the returns on time and most importantly pay any taxes due.
The last part is where things can get nasty. If an individual, partnership or corporation files a tax return and there is tax owing, the IRS will begin the collection process. Procrastination is not an option. They will hound you till the tax is paid.
If there is no communication from the taxpayer to the IRS, they will assume you are in agreement with the tax assessed and will begin to pursue even more aggressive collection actions. This is an ever escalating process whereby the IRS will request payment, then demand payment and if still no joy, will lien your assets then start seizing your assets without further notice. They will go for the assets like bank accounts and investments as that gets the cash the fastest.
There are a number of options available to the taxpayer such as negotiated installment plans, offer in compromise and dispute of the tax assessed. Taxpayers are encouraged to retain an experienced tax attorney or CPA well versed in the tax debt relief options.
John Spurgeon is a tax attorney in Pasadena, California servicing clients in the San Gabriel Valley and the greater Los Angeles area. John Spurgeon & Associates, who are both tax attorneys and CPAs, have the proven knowledge and experience to effectively solve tax problems with the IRS or 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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