Why?

Because a professional not only understands the range of programs available to pay off and/or settle your tax debt, but also how to speak to the IRS, how to file the necessary paperwork, and can answer questions along the way, saving you time, worry and confusion.

Though your debt may feel hopeless at first, Tax Practitioners are able to analyze your situation and resolve it based on laws that may benefit you, the taxpayer, thus reducing the total amount that you pay. For example, there are tax relief programs such as the Offer in Compromise (OIC) where you may settle your total debt for less. There are also programs available to have your penalties removed, thus helping to reduce your debt. These are just two of many programs available to help with your back tax situation, but every program has different qualifications and rules that must be followed before a settlement can potentially be reached. That’s why having an expert there to guide you helps save time, headaches and, ultimately, money. So before you whip out that checkbook and send the IRS the full amount you owe, it’s always a good idea to get a free and confidential consultation with an experienced tax advisor.

When you do contact a tax relief or tax resolution company, there are many factors to consider. Don’t hire a firm solely based on low fees. Fees that are lower than the industry standard usually mean that the firm will be cutting corners and may not properly settle your debt, or be safe to trust your sensitive financial and personal information with. Some important questions to ask potential tax relief or resolution firms are: How long have you been in business? What are your ratings with the Better Business Bureau, Yelp and Google? Are the owners and management staff properly disclosed on the website?

If a company fails to disclose vital information such as management staff or their public ratings online, that’s a red flag that should have you seriously considering whether to work with them. You should also confirm that they provide a free and confidential consultation with an experienced tax advisor – not a commissioned salesperson.

As previously mentioned, a key advantage of hiring a tax relief firm is to avoid unnecessary stress, confusion and incorrect filings when resolving a debt with the IRS. And that’s not to mention the time that you’ll save. Current hold times to speak with IRS agents can be up to 3 hours long and several phone calls are required throughout a tax resolution case. If you’re busy running a business, maintaining a career, or taking care of your family (or all of the above), the time spent just trying to contact the IRS can add up to having a whole additional job – and a stressful one at that. A resolution expert can help contact the IRS to keep the process moving along, saving you precious time to get back to your life – all with less worry hanging over your head.

If you are ready to have an experienced tax professional help resolve your IRS or State back taxes, give us a call today or contact us here.

The post What to Look for In a Tax Relief Firm appeared first on Direct Tax Relief.

Internal Revenue Service Tax Refund Backlog 

The biggest reasons for the Internal Revenue Service tax backlog are understaffing and paper tax filings. Most IRS tax refund forms are submitted to the IRS as paper documents. That paperwork takes time to process. For every paper filing, an Internal Revenue Service employee needs to review the document for errors. The amount of manual labor required to process the nation’s tax filings is extremely high. Outdated digital processing methods can largely be blamed for this problem. The COVID-19 pandemic made matters worse in the short term. In early 2020, the Internal Revenue Service was forced to temporarily shut down many of its offices. This dramatically impacted the speed of processing time for tax returns and other documents. As of May 2022, the IRS is still reporting as many as 9.8 million unfiled tax documents. For millions of Americans, that means their IRS tax refund is still being processed. And for many more, other crucial tax documents have gone untouched. But there may have been a positive to come out of this unprecedented backlog. The Internal Revenue Service even rented containers to accommodate the mail. In response to its current situation, the IRS has increased its efforts to integrate new technology into its operations.

Pilot Internal Revenue Service Program 

The Pilot Internal Revenue Service Program is a new measure taken by the IRS to overhaul its use of new technology. Those interested in the full scope of the Pilot IRS program can read about it on the IRS website. In short, what this program means for most people is filing taxes will be easier, and processing time will decrease. The biggest advantage offered by the Pilot IRS Program is enhanced scanning capabilities. Scanning-as-a-service (SCaaS) and Optical Character Recognition (OCR) solutions will cut processing times significantly for the IRS. For individuals who owe the IRS money, these new technologies can help in a handful of ways.

How the Pilot IRS Program Helps Those Who Owe Back Taxes

The simplest way this program benefits you if you owe back taxes is that processing time will be faster. The Internal Revenue Service will be able to scan and file documents more quickly, meaning your case can be resolved sooner. As anyone who has gone through this process knows, there is often a lot of paperwork involved. The less time spent waiting for your case to be processed, the faster your tax debt can be resolved. With new scanning capabilities, the IRS hopes to be able to prioritize “high need” requests. This can be especially beneficial to anyone who owes money or requires additional filing. In addition to accelerating processing time, the pilot IRS program also aims to streamline the process for individuals filing taxes. For those who owe back taxes, this should cut down drastically on uncertainty, and make repayment plans easier to follow. And, the IRS hopes, the streamlined process will cut down on filing errors overall.

If you are struggling with tax debt or back taxes, Direct Tax Relief can help. Do not hesitate to contact us today. Our IRS tax resolution experts will make sure you don’t pay a single cent more than you owe.

Sources:
https://www.irs.gov/about-irs/procurement/about-pilot-irs
https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

The post How The IRS Is Trying To Speed Up The Paperwork Process appeared first on Direct Tax Relief.

After researching the many companies out there, Carly found Direct Tax Relief. The reviews on TrustPilot (currently a 9/10) and an A+ rating with the Better Business Bureau sealed the deal. With her very first call, the ball started rolling. Direct Tax Relief took over her case with the IRS and began to pursue an Offer in Compromise. These expert negotiators put things into high gear and, at the end of everything, Carly’s $32,000 back taxes were reduced to under $2,000!

Now that the back taxes are permanently resolved, Carly no longer faces threats from the IRS. Instead, she can go back to running her business and enjoying life!

Do you owe more than $10,000 in back taxes in your state or federal income? Contact Direct Tax Relief and learn about the IRS tax relief via Offer in Compromise, including IRS payment programs and the Corona Virus Tax Relief.  For example, the American Rescue Plan Act of 2021 introduced tax relief for individuals and employers.

*Information on this website, including real life case examples, is not intended to guarantee, warranty, or predict the outcome of a particular case, and should not be construed as such a guaranty, warranty or prediction. Financial information including, but not limited to, income, assets, equity, and supporting documentation will affect the specific and unique resolution options available to each client. Some names and identifying details have been changed to protect the privacy of the individuals.

The post Carly Owed Over 32k in Back Taxes. See How DTR Saved the Day! appeared first on Direct Tax Relief.

The Internal Revenue Service Data Book (Publication 55B issued March 2013) for the Fiscal Year 2012 noted that for the fiscal year the total number of returns audited exceeded 18 million.

“There are two types of audits,” noted Direct Tax Relief’s senior enrolled agent Maurice Rosaler who was with the IRS as a revenue officer and group manager for almost 20 years, “one is a correspondence audit where the IRS sends the taxpayer a notice of their findings while the other type of audit is the field audit when the taxpayer has to come into an IRS office and meet with an IRS Revenue Agent who is an auditor for the government.”

The IRS Data Book listed (Table 10) the total audits for FY 12 as 18,654,923.

18,355.134 were field audits and 299,789 examinations were correspondence audits (Table 10).

“That means,” pointed out Rosaler who has been doing tax resolution for over 26 years, “that the likelihood is if you’re going to be audited by the IRS then you’re going to have to go meet with an IRS agent at an IRS office.”

“And I would not recommend going to that meeting without professional representation,” added the senior enrolled agent.

“A meeting with an IRS field exam agent,” Rosaler went on to explain, “is based on my experience as close to an inquisition as most people are going to experience. This is not something a taxpayer wants to do alone. You want someone with you who knows the rules and regulations and have in-depth knowledge of the Internal Revenue Code and can present your case to the IRS agent in your best interest and in clear and concise terms.”

“Remember,” noted DTR’s senior enrolled agent, “the field agent on an IRS audit is looking out for the government’s best interest and has spent years training on the audit process and the Internal Revenue Code. What a taxpayer who has been called into an audit wants is someone who can do what we call an IRS audit defense and that person is a tax resolution professional such as a tax attorney or enrolled agent and the best way to get that professional help is by looking for and retaining a trusted tax relief firm with those who specialize in the field of IRS exams, audits, and IRS audit defense. The best method is to look for an authentic tax relief firm like Direct Tax Relief which is listed with the BBB with an A rating and zero complaints.”

Rosaler went on to state that an IRS audit defense can be complicated with many steps and procedures and the lasting results can be long-term and severe.

“The end result of an audit,” Rosaler said, “can be additional tax due from the taxpayer. Now the taxpayer as a result of the IRS audit has a new liability, a new tax bill.”

The IRS Data Book (Publication 55B) listed (Table 9A) the total additional tax assessed from audits in FY 2012 as $38,699,308,000.

“That’s over 38 billion dollars that taxpayers now owe and that the IRS is collecting on,” Rosaler pointed out, “that are a direct result of IRS audits. And in many cases, those assessments could have been reduced or even zeroed out if a proper IRS audit defense could have been presented at the time of audit. That is why it is in the best interest of any taxpayer going through an IRS audit, personal or business, to get professional representation.”

Rosaler also noted that “Even after an audit is concluded a qualified tax professional can still help by doing what is known as an IRS audit reconsideration. It’s complicated but an experienced tax attorney or enrolled agent can handle it. The results of the audit reconsideration many times can reverse or reduce the original IRS audit results.”

“The bottom line,” the veteran tax resolution specialist concluded, “is that if you are dealing with the IRS on an audit doesn’t try doing it alone, get professional help.”

Direct Tax Relief has extensive experience in tax resolution and has represented numerous clients since 2007 providing professional legal tax advice to resolve tax matters including audit representation, audit defense, Offer in Compromise, levy and garnishment release, appeal penalties, and establishing minimal payment plans to the government.

If you have unfiled tax returns or owe the IRS or state over $10,000 in back taxes, contact Direct Tax Relief for a free consultation.  We are an IRS tax relief company that can handle your case from beginning to end.

Source: https://www.irs.gov/pub/irs-soi/12databk.pdf?vsmaid=9

The post IRS Increases Number of Audits by Over 12% Resulting in $38 Billion in Additional Tax Due From Taxpayers appeared first on Direct Tax Relief.

Direct Tax Relief can prepare past returns using various substitute sources when there are missing records. Those returns should be filed as soon as possible in order to avoid accumulated compounding interest and large penalties.  You should also be aware that if returns have not been filed in the most recent three tax years, those returns should be prepared immediately in order to claim any refunds that may be due.

Not filing a tax return is far worse than filing a tax return and not being able to pay the tax amount owed. If you file a tax return but cannot pay, Direct Tax Relief has many IRS tax debt solutions to help you pay the tax amount owed. If you do not file a tax return it is considered a crime and you can be punished for it. Not filing a tax return can result in a fine of up to $25,000 and a 1-year prison sentence for each unfiled tax year. Recently, the actor Wesley Snipes was convicted of failure to file tax returns for 3 years and sentenced to 3 years in prison.  Avoid costly IRS penalties from unfiled tax returns, contact Direct Tax Relief for certified tax preparation and filing services, and receive the maximum refund and deductions you deserve.

The post What is Preparing Unfiled Tax Returns? appeared first on Direct Tax Relief.