Tax Man, Tax Relief Podcast

A revenue officer is an agent responsible for collecting revenue for the IRS. Their goal is to get as much money as possible. These officers have the power to levy your bank account and garnish your wages. When a revenue officer is assigned to your case, t hey will send you an initial document request (IDR). They will ask for bank statements, pay stubs, and a filled - out form 433A, or for busines...

You can resolve your tax issues in three steps. The first step is called the "stop the bleeding" phase. If you have back tax issues, it is possible the IRS has collections pending against you, a revenue officer, potential bank levies, and wage garnishments. Control the damage as much as possible by gett ing a hold of your account. Get in contact with the assigned agent for your case. Check any out...

According to the IRS, a high - net - worth individual is one who makes over $100,000. They have a special department that looks into these individuals with unfiled tax returns. For businesses, the IRS considers gross revenue. If a business has $200,000 worth of revenue after expenses and only $50,000 of income, it is still considered high net worth. One of the biggest issues preventing people from...

What Issues Are the IRS Looking for When They Audit Small Businesses? If you happen to be an S Corp, they'll be taking a closer look at your shareholder compensation. If your salary is unreasonable or too low, they might flag you for not paying enough Social Security or Medicare taxes. They'll also check that you're correc tly filing and paying employment tax for your employees, ensuring everyone...

We've noticed quite a few taxpayers receiving letters from the IRS lately, specifically a CP508. This notice is typically sent out when the IRS is certifying your tax debt, usually if you owe $50,000 or more - but in 2023, that threshold will be $59,000. Essentially, the notice will inform you that the State Department can no longer issue or renew a passport due to your outstanding tax debt. If yo...

Hey there, it's Jonathan Donenfeld from JLD Tax Resolution Group, and I have news to share regarding the recent hiring of new IRS agents. From what we've gathered, the IRS has brought on roughly 10,000 agents. These agents are mainly divided into two gro ups - one focused on providing uplevelled customer service, while the other concentrates on collections and enforcement. What should we expect wi...

Many ask what a proven and effective strategy is to build wealth and minimize taxes. The number one strategy that many savvy investors utilize is the Buy, Borrow, and Die method. This approach involves purchasing appreciating assets, such as real estate, and leveraging them through borrowing.  The beauty of this method is that the borrowed funds are not subject to taxation, and any capital gains f...

If you're a tax preparer, you need to be aware of the number one reason for audits - the earned income credit. The IRS tends to hone in on this aspect since it's much simpler for them. Rather than going through all of the returns, they'd instead audit the preparer.  The tax bureau is particularly vigilant in areas with many low-income earners, where fraudulent claims are highly likely to be made. ...

A question or comment we get a lot is: "I have a tax issue. I'm trying to call the IRS and can't get through to them. So what do I do?" We understand that navigating the process and getting ahold of the IRS can be  very difficult. That's where we come in - as practitioners, we have different lines to call, the necessary access and experience to step up the process and help alleviate your stress. W...

What Happens if You Invested in FTX? In this episode, Jonathan Donenfeld discusses the impact of SPF bankruptcy on FDX investors. If you had invested funds in FDX or had accounts there, and now it's worth nothing or you're not getting any funds back, you may be able to write that off as a capit al loss. Jonathan explains that it's like buying a stock for $5 and selling it for $1 at a $4 loss. If y...

There has been a great deal of interest surrounding the FTX scandal and the role played by Sam Bankman-Fried.  From a tax and accounting perspective, there are some very interesting things. First, it's evident they had terrible records. For any small business, meticulous record keeping is critical to show your expenses correctly when you're ever audited.  The reason for this is that illegal gains...

AI Takes Over Taxes - How the IRS Uses Artificial Intelligence   In this episode of Tax Man, Tax Relief Podcast, I discuss how the IRS is utilizing artificial intelligence to improve its auditing and collection efforts. I will share how the IRS is targeting business owners in certain industries with specific expenses, using AI to analyze data and identify potential tax problems.  Key Points: [00:0...

If you're facing a tax problem or are being audited, you don't have to speak to the IRS yourself. It's best to hire a professional, such as a CPA, enrolled agent, or attorney, to represent you. Remember, what you say to the IRS can be used against you, so make sure you get the help of a professional. Learn more in this new episode: Hire a Professional When Talking to the IRS ▶️ Let us help you sol...

Business owners who experience difficulty with payroll taxes generally have difficulty with cash flow. This occurs when they are waiting on payments from others in the business, yet they must continue to engage people to do the work.  Unfortunately, not paying the IRS in anticipation of being able to make the payment at a later time leads to significant penalties, interest, and a cycle of nonpayme...

What type of tax cases have we seen that have gone criminal?  The Internal Revenue Service (IRS) pays close attention to business proprietors who manage more than one business and move money between their accounts. They also hunt down those that are not paying the corresponding payroll taxes.  This highlights the importance of resolving tax issues appropriately, as even an honest mistake can come...

The consequences of not paying your payroll taxes can be absolutely devastating to any business, as the penalties for failure to file, failure to pay, or failure to deposit can quickly add up over multiple payroll cycles.  In addition, payroll taxes are considered trust fund taxes. The owner and those responsible for running the payroll could face personal liability in the form of criminal cases r...

👉 Did you know that the country's tax bureau is the world's largest collection agency?  The Internal Revenue Service is responsible for collecting the funds necessary for the government to pay for its services. When you call the IRS to report a tax debt owed, you're transferred to the collection division. That person is taking your information to figure out how to collect money from you.  For thi...

Have you been sent letters from the Internal Revenue Service and failed to respond?  Have you accumulated debt from long-standing unpaid taxes? Has an agent assessed your case but have yet to receive contact?  Then the IRS may impose a levy on your bank account.  To rectify this, one should take immediate steps to become compliant with the IRS' requirements. This would include filing completed tax...

The negative consequences of tax issues are immense. Not only do they prevent people from achieving security and financial freedom, but these burdens can also creep into every aspect of their lives and severely hinder personal development.  Whether it's having to forgo important life events such as getting married, buying a house, or even finding the courage to discuss the issues with loved ones a...

How Business Owners Can Resolve Their Back Taxes   How can business owners with substantial back tax problems resolve their issues?    The first thing you need to see is what caused the issue, get ahold of your accounts with the IRS, and get into compliance. You can't do anything with the IRS if you have unfiled returns or are not responsive to them.    The IRS offers various options like Offer in...

How The IRS Audits Attorneys As attorneys are small business owners, it is necessary for them to have a trust account in which client funds are deposited and then transferred to pay for expenses and fees. Since attorneys have not always been great record keepers, the IRS and state governments often audit them, such as in New Jersey, where the bar can undertake audits.    There are stringent laws a...

Can the IRS Contact Your Neighbor?   Many people have recently received letters from the IRS saying that the tax bureau may contact their neighbors, people close to them, or people in their business.    As a general rule, the government's tax bureau can only contact third parties, including your neighbors, your company, or your bank, to obtain information or collect the taxes you owe, given that t...

What Are The New IRS Agents Up To?   Taxpayers should prepare for the influx of new revenue officers and collection agents at the Internal Revenue Service, most of whom are in training. They're working with the field agents and slowly learning the ropes.    If you're a business owner and you owe back taxes, don't be surprised if one day you see an agent show up at your place of business due to the...

Are You a Business Owner With Years Of Unpaid Tax Returns? Many people think, "Oh, I didn't make much money. I don't need to worry about the IRS."    Remember, the tax bureau may look at your gross revenue, not your expenses. For example, you took in $100,000. That's the only part the IRS sees because they may see your Form 1099s, where you can get assessed with no deductions.    If you're not pay...

Why Do So Many Real Estate Brokers Have Tax Problems?  Host: Jonathan Donenfeld, CPA, MSA   So many real estate and mortgage brokers have tax problems for two reasons:    1) They operate their businesses as sole proprietorships and are usually overwhelmed in budgeting for expenses and balancing their numbers 2) They have fluctuating incomes every month and every year    Inconsistent commissions re...