Business Owners and Companies Commonly Get Into Tax Problems - Solutions

How to Quickly Find Yourself With a Big Tax Problem

Your business was on a roll!  Five years of great sales and profits.  You had money in the bank, suppliers paid with discounts, and your personal paycheck was making your spouse very happy.  It doesn’t get better than this.

Then it hit:

·      Economic slowdown. Lower sales. Collections drop. Inventory piles up.

• Unexpected legal expense
• Major employee leaves
• Major product line problem
• New competitor slices into sales
• Large customer drops you
• Natural disaster

Maybe it is one of the above. Sometimes it takes more than one to create the cash flow crisis. The cause is only slightly relevant.  The reality is that you don’t have the cash needed to make your IRS payments.  The issue might only be your income taxes.  But your situation could be compounded by missed payroll tax deposits, and even state income, payroll, and sales taxes.

If the economic interruption is protracted, losses may begin to exacerbate the issue. While these losses may reduce future tax obligations and even be used to reduce prior year obligations, they do nothing to help with payroll tax obligations, either corporate or personal.

Don’t expect a sympathetic ear at the IRS.  If anything they will be worried about not getting their share if you go bust.  Liens and levies can further complicate your efforts to get your business back in shape.

You need a tax professional like the Enrolled Agents at Demetriou, Montano, and Associates to help guide you through the process.  We know what to say to the Revenue Officers, and more importantly, what not to say.  After 25 years helping businesses like yours in situations just like the one above, we have the tools and skills to keep the tax man happy while you rebuild.  Call right now at 888-987-1040 and sleep better tonight.

Even the IRS Wants You to Love Them – Agency Under Fire

In the face of the IRS targeting scandal, a new “Bill of Rights” is offered

The IRS is reeling from a relentless barrage of negative headlines surrounding Lois Lerner and others, known and unknown, within the agency, who have admitted to targeting conservative organizations in the run-up to the 2012 election. But even the IRS appears to need your love. In yet one more coincidence, they have release a “new” taxpayer bill of rights.

"The Taxpayer Bill of Rights contains fundamental information to help taxpayers," said IRS Commissioner John A. Koskinen. "These are core concepts about which taxpayers should be aware. Respecting taxpayer rights continues to be a top priority for IRS employees, and the new Taxpayer Bill of Rights summarizes these important protections in a clearer, more understandable format than ever before."

This updated bill of rights will be included in any mailing that the IRS does to taxpayers, but should never be confused with any idea that the agency is not relentless in their desire to collect from you. The summary of the new bill of rights:

1. The Right to Be Informed
2. The Right to Quality Service
3. The Right to Pay No More than the Correct Amount of Ta
4. The Right to Challenge the IRS’s Position and Be Heard
5. The Right to Appeal an IRS Decision in an Independent Forum
6. The Right to Finality
7. The Right to Privacy
8. The Right to Confidentiality
9. The Right to Retain Representation
10. The Right to a Fair and Just Tax System

If you are currently facing any type of “quality service” from the IRS that is taking the form of demand letters, liens, levies, wage garnishments, or other collection activity, you have, under #9 above, the right to retain representation. If you owe more than $20,000 in back taxes or if you have unfiled returns, you should look at this right as a strong recommendation. The IRS has a vast array of resources that they will use against you to help them keep you up at night, and generally make your life miserable.  We can help!

As Enrolled Agents, we can represent you every step of the way. You no longer have to deal with the collection agents. No more phone calls. We will be copied on all correspondence, so you have no need to worry about the letters you receive. We will handle it all. 

And because we have been working with the IRS on behalf of taxpayers just like you for over 25 years, we know exactly how to get the best possible solution for your specific issue. Call 1-888-987-1040 right now and let us start to resolve your tax debt issues. Also see our website at http://taxrepair.com

Who’s Guarding the Henhouse: Government Employees Owe IRS Billions

 

700 IRS contract employees among the scofflaws

If you owe money to the IRS, you are in good company.  It turns out that 318,000 of your employees in the federal government are behind in paying taxes owed. The sum total of debt owed is 3.3 billion and climbing. They must be taking a cue from the methods used by their bosses; debt is a good thing, therefore more must be better.

To make the story even more intriguing, the Inspector General has reported that:

Nearly700 employees of Internal Revenue Service contractors owe $5.4 million in backtaxes,.

According to Breitbart.com:

More than half of those workers are supposed to be ineligible to do work for the IRS because they are not enrolled in installment plans to pay the taxes they owe.

Unlike other federal agencies, the IRS requires employees and those who work on agency contracts to comply with federal tax laws. That means they have to file returns on time and either pay all the taxes they owe or enroll in a payment plan.

What about the ultimate overseers of the government, Congress? Seems they have caught the bug as well.  Reuters Reports:

About 700 congressional employees, which could include senators and representatives, owed $8.6 million in unpaid taxes last year, down from $10.9 million in 2012, the IRS said.

The House of Representatives had a tax delinquency rate of 4.9 percent, while the Senate's rate was 3.2 percent.

The lowest rate was Treasury employees, which includes the IRS at 1.2%. This is not surprising, given that IRS employees, according to Breitbart:

IRS "employees are held to a very strict standard, even in cases of personal hardship. If they fail to file on time or pay their tax debts, they face disciplinary action, including removal," said Colleen M. Kelley, president of the National Treasury Employees Union, which represents IRS employees. "The IRS has the same requirement for contractors, but they are monitored with much less frequency."

We have a recommendation for all those who serve us, but are having difficulty with taxes owed. Demetriou, Montano & Associates has been helping folks like you solveyour IRS tax problems for a quarter century. Talk to one of our tax resolution specialists (we employ no salesmen), and find out what your options are in reducing, eliminating, or resolving your tax debt. Call (888) 987-1040 and ask for Jim Demetriou EA or Mike Montano EA.

Choose Your Tax Resolution Company Carefully – Reputation Matters

Many fly-by-night IRS tax debt help companies close down

If you are dealing with tax debt problems, the last thing you need is for the company you hire to help resolve those issues turn out to be a fraud.  Unfortunately, many unscrupulous players have taken the money of folks who were already under stress, and then failed to perform.

We have already mentioned some of the ways for you to judge the services of various companies who are in the business of helping you with your tax problems.  You can read in detail about how important experience is here.  We suggest that you talk to an actual Enrolled Agent, not a salesman, here.

One more way for you to inform your decision about which company to use is to review the reputation of the choices before you. Where might you get that information.

Look for reviews on Google, Yelp, Linkedin and other review sites.  Check the company’s record with the BBB.  Find out if they have worked with others in the tax industry who have endorsed their work.   You should determine how long they have been in the business of representing people before the IRS.  Those who are dishonest in this business tend to get found out.  Finally, if you call the business, are you talking to a sales person or are you talking to someone licensed to help?

Demetriou, Montano, and Associates has been in business since 1989. Both Jim Demetriou EA and Mike Montano EA worked for the IRS enforced collection unit learning and implementing every policy, practice and procedure used by the IRS to collect taxes. 

DM&A routinely receive referrals from other EAs, CPAs, attorneys, even TAX attorneys because they have come to rely on DM&A for their long experience of negotiating with the IRS. Some of these have provided testimonials on the website here.  One example would be:

"Over the years I have referred a large number of people to DM&A for assistance, including many lawyers, doctors and other professionals who had unique tax problems.   These individuals had problems with delinquent taxes, others were levied by the IRS or their business was facing seizure.   Many had not filed tax returns for several years.   I have never seen DM&A fail in their efforts on behalf of these individuals.   Their expertise is so unique that I referred my own CPA to them when he had a very troublesome matter with the IRS.   When all seems lost...  when it looks as if there is no way out...   I insist that my friends and clients go to Demetriou, Montano & Associates.   Their name ought to be "Houdini & Associates."

                                                                                                                     THEODORE COHEN, ESQ.
                                                                                                                                       Attorney at Law

The Better Business Bureau has rated the company A-. The BBB website goes on to say that the rating is based on a lack of information.  You see, after 25 years in business, not a single individual has ever made any type of report with the BBB.

You might want to read the rest of this review found onYelp. We’ve given you a brief excerpt:

“I got that dreaded letter from the IRS on July 20, 2010: "Your federal income tax return for the year shown above has been selected at random for a compliance research evaluation."  Que that sound of a needle being ripped off a record.

Even though my records are clean and in order, I was scared.  My own (now former) accountant assured me, "I'll be there for you all the way, man!"  In the intervening weeks leading to my appointment at the IRS office it became clear to me that, not only was my accountant not going to be there for me, he was doing a full disappearing act.  I was being left alone to face the monster.

56 hours before the meeting, and not knowing if I was preparing anything correctly, I called that tax master firm that advertises on the radio.  I got some hardcore salesguy in a boiler room in Texas who, after taking in what info I was able to give him over the phone, came back with a fee of  $9875 to get me through my audit.  My mind was spinning …

The next morning, it occurred to me to call a more local tax rep that I'd heard of on the radio - Demetriou, Montano, and Associates.  I called at 8:30 and Jim Demetriou answered the phone - my blood pressure started to go down.  We talked for about half an hour, he was very calm, straightforward, and professional.  …

I strongly recommend Demetriou, Montano, and Associates.  Being audited, even when your records are in fairly good order, is a rotten experience, mostly because of the unknown factors: You're dealing w/ a huge powerful federal agency with a massive sense of entitlement that knows it's pretty much a law unto itself.  The whole thing is a miserable experience, so get qualified professional help from DMA.”

When the dreaded letter comes, call a company who has a reputation for being straight forward, professional, and can do. Do you owe at least $20,000 to the IRS right now?  Pick up the phone and ask for Jim Demetriou or Mike Montano, and let’s get the ball rolling on a solution that will be perfect for your unique circumstances.   888-987-1040

Beware of Salesmen Promising IRS Tax Debt Resolutions - Pennies on the Dollar

Sales boiler room not best for choosing tax help pro.

Talk directly to an IRS Enrolled Agent!

This is not a knock on salesmen.  I am one, and it is an honored profession . . . at least most of the time.  If I need to buy a bike or a house, there is much to be said for having a professional sales person helping you through the process.  

However, when I am hiring someone for complicated, threatening, and sensitive professional services, I want to talk to the person who is personally delivering those services, not a sales person trying to sell me something.   

Specifically in the tax resolution services business there have been many companies that have become quite well know for TV pitchmen and call center salesmen.  When you hear that smooth talker tell how they will talk the IRS into reducing your tax debt to just “pennies on the dollar,” it is understandable that the hope sounds worth exploring. 

The truth is that just as many of those companies go out of business as start in business every year.  Why, because the hope they are selling is not for every tax debt and in fact, very few qualify for the “pennies on the dollar” solution.   Moreover those companies took your money after a sales pitch, and then did very little to help the client, much less deliver on their pennies on the dollar claim.   Listen to those company names.  Seriously?  Research how long the company has been in business.  Then look for a representative like you would an attorney or accountant.  You know, where their name is on the door for everyone to see.

You see, the IRS does offer something called the Offer in Compromise, which can potentially allow you to drastically reduce your outstanding tax debt.   However, the process is  expensive, can take months or even years to get an answer, and only a very few taxpayers qualify for that kind of relief.  When you talk directly to Mike Montano, EA or Jim Demetriou, EA, you are going to get the straight scoop as to whether you have any chance of qualifying for an Offer in Compromise.  They will also be very upfront with you about the costs and the risks of even applying.  

When you are trying to decide who will help you put together a workable solution for you tax debt issues, go with a company where you speak to the professional that will get the job done, not with a salesman who is just in it for the commission.  

Do you owe at least $20,000 to the IRS right now?  Pick up the phone and ask for Jim Demetriou or Mike Montano, and let’s get the ball rolling on a solution that will be perfect for your unique circumstances.   888-987-1040

Demetriou, Montano & Associates - Tax Resolution Specialists

12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025
310-581-2900

888-987-1040jdemetriou@taxrepair.com
http://taxrepair.com

My Husband Did WHAT with the IRS?

If your spouse ran up a huge tax debt without you knowing it, you may be protected

Linda is separated from her husband.  All of her mail isn’t even being forwarded yet.  Yesterday when she went to pick up their son,  she noticed that right on the top of the pile of mail were two letters from the IRS.  One was addressed to her and the other to her husband, Tom.  She opened hers, and Linda’s eye’s double in size at what she saw.  The IRS was trying to collect $175,000.

Linda was in shock.  As she read the notice of possible lien on their property, she began to sense that this wasn’t the first notice about the issue.  In fact, there was even more than one tax year in question.  Her heart began to race. How would she confront her husband about this, especially since he had apparently been withholding even her mail?

Linda worked as a nurse for the local hospital and earned a good income of $77,000.  Her income tax was deducted from her wages.  Tom was in business for himself and had some good years and some bad years.  He would say, if asked, that he was making low six figures.  So their lifestyle was like that of a couple making $200,000.

When Tom realized he was caught, he told her everything at the first sitting.  This was not all they owed.  The IRS had not yet started collection on the last year that they filed.  The final amount was going to be much higher Linda, already feeling marital stress because of Tom’s controlling and overbearing manner, did not want to pay for his old tax debt! In the strictest interpretation of the tax code, Linda was on the hook for all of the tax debt. 

In fact, if Tom stopped working and had no income, she would be responsible to pay the entire amount.  She and Tom had signed each tax return jointly and by doing so she had taken on the liability for the entire tax.  She had not waited for Tom to fill in the final amounts of tax owed on the returns, and had no idea that he had not paid all taxes. She owes the tax, feels it is wrong, but is it?

Linda might fit under the Innocent Spouse provision of the tax code

and that code has become more helpful to some spouses due to changes in the IRS approach on these matters.

According to a recent Forbes article:

Internal Revenue Code Section 6015 authorizes the IRS to grant a spouse relief from a joint return, where it is inequitable to hold the spouse bound for the return. In Revenue Procedure 2003-61, the IRS set forth the following eight factors to be weighed in deciding requests for innocent spouse relief:

Marital status. Whether the spouse requesting relief from the joint income tax return (“requesting spouse”) is separated or divorced from the nonrequesting spouse.

Economic hardship. Whether the requesting spouse would suffer economic hardship if the Service does not grant relief from the income tax liability.

Knowledge or reason to know. Whether the requesting spouse had knowledge or reason to know that the nonrequesting spouse would not pay income tax liability properly reported on the joint income tax return (underpayment case), or of a deficiency of tax in the joint tax return (deficiency case). A tax deficiency generally results from under-reporting of gross income or over-reporting of deductions.

Nonrequesting spouse’s legal obligation. Whether the nonrequesting spouse has a legal obligation to pay the outstanding income tax liability pursuant to a divorce decree or agreement. This factor will not weigh in favor of relief if the requesting spouse knew or had reason to know, when entering into the divorce decree or agreement, that the non-requesting spouse would not pay the income tax liability.

Significant benefit. Whether the requesting spouse received significant benefit (beyond normal support) from the unpaid income tax liability or item giving rise to the deficiency.

Compliance with income tax laws. Whether the requesting spouse has made a good faith effort to comply with income tax laws in the taxable years following the taxable year or years to which the request for relief relates.

Abuse. Whether the nonrequesting spouse abused the requesting spouse.

Mental or physical health. Whether the requesting spouse was in poor mental or physical health on the date the requesting spouse signed the joint income tax return or at the time the requesting spouse requested relief from that return.

If you owe the IRS more than $20,000 for any reason, including the situation outlined above, we may be able to help you avoid all liability, reduce what you owe, or help you to work out an affordable payment plan with the IRS.  As you can see from the above, the rules are very complex.  You will benefit from having a team of highly experienced tax professionals helping you work things out.

Call us now for a no cost, no obligation, initial consultation with Jim Demetriou or Mike Montano personally. 888-987-1040

Contact Us

Demetriou, Montano & Associates - Tax Resolution Specialists

12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025
310-581-2900
888-987-1040jdemetriou@taxrepair.com
http://taxrepair.com

Nothing Beats Experience When Choosing a Tax Debt Resolution Company

How to select a lasik eye surgeon or a tax resolution service

I have been considering getting lasik eye surgery, but have to admit that I am not that excited at the thought of having someone cut into my eye.  As I read various advertisements or watched commercials about lasik, the information that seems to penetrate my heart the most about selecting the right doctor is "over 10,000 surgeries completed."  There is great comfort in knowing that the surgeon has done this so often that he or she is prepared for any contingency and has honed their skill to a fine edge.  

Contemplating surgery on my tax debt is not that different.  I dread the idea.  The potential for disaster with the slightest slip is huge.  You need to be able to put trust in a practitioner who is going to give you the best  outcome possible.  The best way to be confident you have the best representation for the job is to hire the one who has the most experience.  That way you can have the comfort of knowing that you are dealing with someone who has seen it all, who has all the skills needed to bring you peace of mind. 

Demetriou, Montano and Associates has been helping their clients with complex tax issues for 25 years.  Prior to that, both Jim Demetriou and Mike Montano worked for the IRS enforced collection unit learning and implementing every policy, practice and procedure used by the IRS to collect taxes.  The key to their success is their personal involvement with every client and by interacting with the IRS collection function every day to implement every possible option available to clients for resolving tax debt issues.  

Seriously:

•  You would not do lasik eye surgery on yourself!
•  You would not select an eye surgeon based on a great sales pitch!
•  You probably don't want the lowest cost doctor for any surgery!

Go with experience when you select a professional to do important and complex work.  If you owe more than $20,000 in tax debt, call Demetriou, Montano and Associates now and speak with a partner about your situation.  888-987-1040

Demetriou, Montano & Associates - Tax Resolution Specialists

12301 Wilshire Blvd. Suite 318
West Los Angeles, CA 90025
310-581-2900
888-987-1040
jdemetriou@taxrepair.com
http://taxrepair.com