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Duluth CPA on Helping Taxpayers File Back Tax Returns for Decades

Back Taxes 101

When addressing old back taxes and getting old returns filed and addressed, installment plans are great options for taxpayers who are not able to either qualify to submit an Offer in Compromise or to pay the tax in full, while asking the IRS for penalty abatement. Though these are often much better financial options, as they frequently result in a lower cash outlay, I have learned during the thirty years I have served Metro Atlanta Taxpayers that frequently the least expensive option is to pay the taxes and interest in full, while requesting abatement of previous tax penalties assessed. This option is for those who do not either meet the rules, guidelines and procedure for submitting an Offer in Compromise.

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Protecting Yourself from Identity Theft

No one can doubt the immeasurable benefits of the information revolution. Today, thanks to e-mail and the Internet, many of us are more productive, informed and connected than ever before. Unfortunately, as a result, we are also more vulnerable. The statistics are startling. According to a 2006 survey conducted by The Better Business Bureau and Javelin Strategy and Research, nearly nine million people were victims of identity theft, costing a total of approximately $56.6 billion.

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Addressing IRS Back Taxes During IRS Tax Audits

Tax audits are selected based upon prescribed criteria including random selection, a statistical test (checking potential audit exposure based upon income/deductions claimed) called a Dif test, and for those industries where the IRS has determined there are potential non-compliance issues. Though your audit is more than likely a pure random selection being sure you are ready and that all of your audit exposures are adequately addressed in advance, by an independent party/your CPA, will do much to ensure that when the audit occurs you are ready. As John Wooden was quoted "Failing to Prepare is Preparing to Fail" so being sure to retain a CPA as your Power of Attorney as soon as possible. While serving as a CPA in Metro Atlanta for thirty years, this is the single largest mistake I see taxpayers make during the performance of an IRS audit.

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Addressing Unpaid/Unfiled Back Taxes

For those taxpayers who have not filed their tax returns for the past several years the filing of these old back returns is often the easiest and quickest way to assess the obligations and correct the records of IRS tax assessments/calculations. In the review of past taxes that were either filed or assessed by the IRS, a CPA can learn of missed deductions and to legally amend past filed tax returns. This is one of the first and most important steps in the tax review process to ensure that our tax obligations to the IRS include only monies that are legally owed and do not include any tax bill amounts that are not legally owed. Our tax system expects taxpayers to pay only what they owe and it is up to CPA's and their clients to ensure that only their just tax amounts are listed as due and payable. Having served as a CPA in Atlanta for over 28 years, the non-filing of old tax returns is one of the quickest ways to find yourself in increasing tax trouble, financial difficulty, liens, levies and garnishments.

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Tax Posturing When Submitting an Offer in Compromise

The rules of submitting and the processing a successful Offer in Compromise require an understanding of tax law, the Offer Process and the wisdom and discernment of motivation, tactical issues and perseverance. When working through these issue with the IRS it is best to diligently keep these ideas in front of both the client and the IRS to both manage expectations and to ensure a successful IRS experience/victory. Below please find a sample letter that can be used to affect the process positively.

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Time Critical: Processing an Offer in Compromise/Addressing Back Taxes with the IRS

Usually one of the main issues that causes an Offer in Compromise is a taxpayer not filing and paying their taxes on a timely basis, in essence, their inability/lack of desire to address their tax obligations and filings as they become due. Thus, one of the biggest obstacles for the CPA/Tax Advocate is to help the taxpayer to get motivated. To this end, most all tax representation work requires the CPA to help the taxpayer change their paradigm going forward and to address all strategic tax issues before they become problematic and even more expensive resulting in undue fines and penalties, levies and garnishments. To this end I help taxpayers understand both the specifics and the applications as they relate to them and the generalities of the process as detailed at http://www.hiscpa.com/irs-representation.html

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 Preparing for and Surviving an IRS Audit

Surviving a IRS Audit or one from the Department of revenue begins with receiving an audit letter. Before you do anything to respond to the notice yourself to the State of Georgia or the Internal Revenue Service be sure to retain as your Power of Attorney as Certified Public Accountant/CPA. An audit is an extremely stressful process but a CPA who is well versed in such issues. Even if you have done nothing wrong, the retention of successful experience CPA will do much to ease your stress, allow you to focus on your business/job and to have someone in your corner. A CPA/Power of Attorney will deal aggressively to both protect your interests and to ensure you pay your lowest legal possible tax. Having served as a CPA in Metro Atlanta for decades, the largest failure that I see business owners and individual taxpayers make is the failure to retain a Power of Attorney "Day 1" when the IRS audit is received.

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Internal Revenue Service Tax Advocate Office

For years the IRS has had an Tax Advocate Office for taxpayers who are need a little additional help in having their answers satisfactorily addressed with the Service. Before you reach the point as an individual or corporate taxpayer you will have wanted to be sure to have retained the needs of a CPA who is well versed in taxpayer representation issues with a history of success with the IRS. Care should be exercised at every level of the representation process to ensure that effective and concise correspondence it utilized so that the process is furthered along the way, rather than unduly hindered. The below letter is a sample of what might be sent to the IRS along with the attendant correspondence to ensure fair, just and effective communication:

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Helping Your Entrepreneurial Business Grow Using a Part-Time Chief Financial Officer/Virtual Controller

A CPA who is well versed in Business Issues can be much more than just a tax return preparer. If you are a business owner, run and do not walk to the nearest and best CPA you can find. Utilizing the services of a CPA with a divergent track able and proven history of success is essential to long-term success as an entrepreneur in Atlanta and throughout America. Below are just a few of the items a CPA can do to help you with more than just your tax returns.

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Filing Old Tax Returns: Turning and Repenting...Taking Christianity Into the World

Recently I received the attached letter from a taxpayer looking to address their unfiled and unpaid back taxes. The fear and the sin is not in the repenting but from not doing so. Our faith is centered and based upon forgiveness to all who honestly seek it and turn from their past and look to live in the light of Jesus Christ. The below highlighted paragraph is the letter received and the next several paragraphs my response. Believers who are seeking to better themselves and to walk closer with Christ need our support and our prayer and not our judgments and condemnations. Look at those around you in your family, work, school, neighborhood and church whom you can lovingly guide back to our Lord and Savior.

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