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IRS Revenue Officers and Strategies for Dealing With Them

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IRS Revenue Officers

Key Takeaways

  • IRS revenue officers are the most senior collections agents in the IRS.
  • Generally, these individuals are highly trained and will incorporate an arsenal of tools and tactics in order to resolve the account in the favor of the IRS.
  • Having a revenue officer assigned to your collection account is a serious matter and it is important to take that person and their collection efforts seriously.

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IRS Tax Liability Resolution Options

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Tax Liability Resolution Options

Key Takeaways

  • Once an IRS tax liability has become final, the taxpayer has a few options for dealing with it.
  • As a helpful guide to assessing what exactly the consequences of each action are, I have put together a short list of some of the advantages and disadvantages of each option.
  • – Often, the IRS will give you 90-120 days to gather the needed funds to pay the liability off.

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An Overview of California Tax Matters

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Key Takeaways

  • California state tax issues are confusing because they rules are not quite the same as the federal system and it is not a user friendly as dealing with the IRS (funny as that sounds.
  • First, let us get this out of the way. We are often surprised at the reaction that we get from the people we meet outside of our tax world who would never of or had not considered hiring a tax attorney to deal with their California tax problem.
  • One of the driving principles of our firm is value. We actively screen matters to make sure that the ones we accept will provide value for our clients.

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The IRS Collections Process in a Nutshell

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What is the IRS collection process? People not paying their taxes is a very serious issue for the IRS. It is something that we as tax practitioners call the tax gap. The IRS collection process is an increasingly serious step of collection measures designed to get people in compliance and make sure they stay in compliance.

Key Takeaways

  • What is the IRS collection process? People not paying their taxes is a very serious issue for the IRS.
  • One of the reasons people complain about penalties and interest so often is because it is a deterrent that the IRS uses to make sure that you do not owe money on your taxes.
  • Usually, the IRS will give you a lot of latitude and opportunity to resolve your tax issue within reason. One of the favorite sayings of the revenue officers that we deal with is that the IRS is not a bank.

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The Consequences of Running From The IRS

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Key Takeaways

  • The consequences of running from the IRS are specific to federal tax laws that govern the ability of the agency to pursue and recover tax funds as well as those tax laws that govern your response to notices of tax deficiency.
  • It is important to understand that the statute of limitations for taxes never runs out. Specifically, “[t]he IRS has no time limit if you never file a return or if it can prove civil or criminal fraud” (Wood, “Even the IRS Has Time Limits,” 8/15/2013).
  • There are exceptions to this three-year rule. If you substantially understate your income, then the statute runs six years.

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The Complete Guide to IRS Audits

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Key Takeaways

  • What Is an IRS Audit?
  • Types of Audits
  • How Does the Audit Proceed?
  • Presentation Is Important
  • What Constitutes Taxable Income?

What Is an IRS Audit?

It is every small business owner’s worst nightmare … they have been notified by the IRS that they are going to be audited. IRS audits have a lot of bad connotations, but on a very basic level, an IRS audit is the IRS coming in and checking that your tax return was filed correctly.

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Frequently Asked Questions About the IRS Audit Process

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FAQs

Key Takeaways

  • The penalty structure in an audit can range anywhere from five percent, all the way up to a 75 percent. It depends on the conduct and the course of dealing during the audit and how the material is presented.
  • That is why it is really important to avoid the stigma of fraud going forward in your IRS matter. In the event that a civil fraud penalty is issued, the most likely course of action is an IRS appeals.
  • One of the important things to think about when you are hiring a representative or when you are making the decision on who to represent you in the audit, is how you are going to deal with the issue of penalties and mitigate them as much as possible.

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Multi-State Tax Issues and Residency

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Key Takeaways

  • An Overview of Multi-State Tax Issues and How They Impact Residency
  • Understanding Residency vs. Domicile
  • How California Interprets Domicile
  • California Residency Audits
  • Why It is Important to Deal With Multi-State Tax and Residency Issues

An Overview of Multi-State Tax Issues and How They Impact Residency

Three key highlights:

  • The first thing states like California look at for residency purposes is where your domicile is. Analysis of residency factors comes second.

  • There are substantial tax savings from shifting residency out of high tax states.

  • California and other states are aggressively auditing individuals and businesses. Protecting yourself is critical.

Multi-state tax issues do not just impact businesses. In fact, they impact people probably a lot more than they impact businesses. The reason for that is people move around a lot more than businesses do. This is especially true if you live in one state during part of the year, then live in a different state the rest of the time.

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California Sales Tax Audits: Frequently Asked Questions

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FAQs

Key Takeaways

  • Yes, you can. If the CDTFA thinks you are willfully under-reporting sales tax and/or fraudulently filing returns, you can and will receive a criminal referral.
  • The goal with any potential criminal matter is to keep it civil and to minimize the damage as much as possible.
  • The CDTFA has a very rigid penalty scheme, particularly with respect to fraud penalties and sales tax that was collected but never paid to the state.

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Brotman Law Featured in Inc. Magazine - Fastest Growing Law Firm in California