The Internal Revenue Service (IRS) is a bureau of the Department of the Treasury that is responsible for collecting taxes using the rules and procedures set forth in the Internal Revenue Code.
The IRS has broad powers given to them by law to collect taxes. Whether you feel that you owe taxes or not, if you receive any correspondence or other communication from them, you should promptly address the matter and enlist the assistance of a professional, especially if the amount at issue is large or if there are threats of criminal proceedings.
It is not recommended that you handle IRS issues without obtaining professional help.
Each case has its unique set of challenges and the firm you choose to assist you should be one that has the knowledge and ability to effectively apply the IRS tax rules and IRS tax laws to your set of circumstances as opposed to applying a one-size-fits-all remedy.
The professional firm that you choose to assist you should have a well-rounded knowledge of many areas of law, including bankruptcy law, contract law, real estate law, probate law, criminal law, and of course, U.S. tax laws and IRS codes and regulations.
At this firm, we handle your IRS tax issues in a refined, professional and personable manner. We fully familiarize ourselves with you, the client, examine the facts and circumstances, and formulate a plan based upon your needs and based upon the law. Once we contact the IRS, we are prepared and know what needs to be done in order to provide you with meaningful assistance.
Some Words of Caution Regarding Tax Resolution "Mills".
We recommend that you avoid Tax Resolution "Mills" that make many promises and give false hopes in order to get you to hire them. Often you are merely speaking with a commissioned salesperson that knows little or nothing about tax law. They will make many questionable comments, often unintentionally, to "close the deal".
Many tax resolution mills have limited tools available to them to assist you. Often, they assign you to a "tax representative" who is no more than a slick salesperson whose job is only to obtain a fee. They usually have little or no knowledge of tax law or of any other law-their job is simply to sell and to keep you as a client.
A few "red-flag claims" used to "close the deal" by such sales persons are discussed below.
We have former IRS agents on staff.
So what! It is our opinion that making this statement can lead one to believe that this adds some type of quality to their service. The only meaningful way to improve your chances of obtaining the most favorable settlement available is to hire a professional that gets to know you and the nature of your problem and knows, or has the ability to locate, the tax rules and tax laws that apply to your unique set of circumstances, and then adeptly apply these rules and laws.
We can STOP the IRS in their tracks.
This can mislead persons into thinking that actions of the IRS can be stopped by intimidation or certain bullying techniques; or, that it should be automatically assumed that the IRS is somehow "breaking the law". Be assured, these agencies do not quake with fear just because a big law firm or tax professional contacts them.
The IRS and other agencies obtain their power from what is called enabling legislation. Usually, what they do...they do because they can-the power to do so is given to them under the law. Fortunately, laws that protect you and provide methods and procedures by which issues can be resolved are also in existence, and the right professional will apply them to your set of circumstances to obtain the most favorable outcome available to you.
We work with certain people at the IRS all the time-we know them.
This gives the impression that due to some special relationship with representatives of the IRS they can obtain certain favors or favorable treatment. This never happens. Good treatment is obtained by applying good law.
A professional may work with the IRS all the time, but this does not increase Your chances to resolve Your issue. IRS representatives have rules that control what they can or cannot do. Having some type of inside connection would not provide any meaningful advantage: knowledge and adeptness in application of the law is the only thing that is truly helpful.
We will FIGHT the IRS.
In their ordinary use, these are Not the words of a professional. Before "fighting" is even discussed, all of the facts and possible legal remedies need to be determined. Then, all parties need to be given an opportunity to argue their position. In almost every case, then the matter can then be resolved. There is a time and place to fight, and a proper fight is a good thing, if warranted. Unwarranted conflicts just make a bad situation worse. Positing a useful and informed legal argument is the best method-it will bring about the best result.
David D L Horton, Esq., EA, can assist you with IRS issues, whether simple or complex, including:
Filing Tax Returns-Personal, Business and Trust Returns
IRS Tax Audits
Offers in Compromise
Innocent Spouse Relief
Other Tax Settlement Options
IRS Tax Liens and Levies
Unfiled Tax Returns (Back Taxes) ...and more.
"An Enrolled Agent that is also an Attorney, unlike other attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and before which IRS jurisdiction they can represent clients.
*An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee.
Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years. "
1. Aggressive Representation
2. Settle Your Tax Debt for Pennies on the Dollar - Stop the IRS
3. Asset Protection and Tax Avoidance Strategies
4. The Federal Tax Law is Unconstitutional - Income Tax is Illegal
5. The Problem Will NOT Go Away! - Do NOT be Overwhelmed?
6. Retain Local Professionals to Act as Your Advocate
7. Tax Implications Regarding Short Sales and Foreclosures
David D L Horton is knowledgeable, experienced and assertive; therefore it is not necessary for him to resort to the less professional and counter-productive methods of being so-called "aggressive" or "tough".
Settle Your Tax Debt for Pennies on the Dollar - Stop the IRS
Usually this phrase is used as a buzz-phrase for marketing purposes and has little to do with reality. Indeed, depending on your individual circumstances, your tax debt could be reduced or even eliminated; however, such a claim by itself should not induce you to retain that particular firm or professional to represent you. In fact, we find it to be disingenuous, to possibly give false hope to a distraught taxpayer before all of the facts and law applicable to that particular taxpayer are thoroughly analyzed.
Asset Protection and Tax Avoidance Strategies
BEWARE of "asset protection" and "tax avoidance" strategies and exotic products sold on the internet. It takes more than a few trusts, corporations, llc's, or offshore entities to legally reduce your tax liability or protect your assets. In fact, the more complicated and expensive your so-called tax-reduction or "asset protection" plan is, the less likely it will benefit you. It is often true that such "plans" place persons in worse shape than they were before the "plan" was implemented.
If your tax-reduction strategy is complicated, or mysterious, or difficult to understand, there is a good chance it is not working. Unfortunately, many do not find this out until it is too late. The most effective tax planning results when a preliminary plan is designed based upon a legitimate business purpose and then refined in order to qualify for the tax benefits applicable thereto. David D L Horton can assist you with genuine, legal and effective tax planning and "asset protection". Allow him to review any tax-reduction or "asset protection" plans or structures you have in place to ensure their legitimacy and effectiveness.
The Federal Tax Law is Unconstitutional - Income Tax is Illegal
Over the last few decades David D L Horton has heard and researched many "tax protester" and constitutional arguments regarding federal taxes. He can assist you with understanding the risks that are associated with subscribing to these legal positions and can advise you on how to avoid or minimize the effect of the future and inevitable problems you will encounter.
The Problem Will NOT Go Away!
The MOST IMPORTANT thing to remember is… DO NOT ignore any correspondence or contact you may receive from the IRS! These problems do not just go away when you ignore them - THEY ACTUALLY JUST GET WORSE!!!
Please Be Aware: Individuals who deliberately fail to comply with federal or state tax laws may be subject to a criminal investigation, which could result in prosecution, fines, and imprisonment. Do not deliberately ignore your problems with the IRS; instead, contact a professional as soon as possible and settle any issues you may have.
Do NOT be Overwhelmed
Do NOT feel as if your tax issue is unsolvable or insurmountable - do not become overwhelmed by IRS issues. Act now; there are answers and methods available by which your problems may be solved. Retain Local Professionals to Act as Your Advocate.
Retain Local Professionals to Act as Your Advocate
You may have noticed that there are many nationwide firms that heavily advertise that they can solve your tax problems. Beware of them. If you have issues with the IRS, find one of the local, experienced professionals whom you can trust - a professional whom you can meet in person.
It is not wise to face problems with the IRS alone and/or not at all. David D L Horton, Esq., an attorney and enrolled agent, can represent taxpayers before the U.S. Department of Treasury (I.R.S.) regarding any matter within any jurisdiction. David, alone, has over 25 years experience with all types of tax matters: personal taxes, corporate taxes, partnerships, and international and "offshore" tax issues. David has previous real-life experience as a business owner, employer, investor, and more, which can be very useful in helping you solve your real-life problems.
Tax Implications Regarding Short Sales and Foreclosures
If you are facing foreclosure or selling your property or home in a short sale, you may incur a federal tax liability. In almost every instance of a foreclosure or short sale you will be issued an IRS form 1099 that will indicate the amount of the deficiency.
You are required to report this amount on your federal income tax return. Generally, this amount is taxable to you as ordinary income. However, there are legal methods by which you can reduce or completely avoid this tax. None of these methods are as simple as some Realtor's ® and other persons claim. You should obtain the counsel of a federal tax professional who will fully review your tax situation and render reliable advice regarding this matter.
Until recently, audits were conducted at the office of the IRS before an Office Auditor. "Thanks" to technological advances in the storage and handling of data, a number of audits are conducted by mail, and the percentage of taxpayers being audited has increased substantially. Your chances of being audited are greater than ever before.
How difficult an audit will be is determined by many factors. One is whether the audit is by correspondence, by meeting the Tax Compliance Officer at the IRS offices, or if it is a field audit. If you are being audited, you can, and in many cases should, have someone represent you. Although the IRS can force you to appear personally at an audit, such compulsory attendance is rare. Another factor that can determine how difficult this experience will be is whether or not you hire a professional to assist you. You probably should if you can.
When you hire a professional to assist you with your audit, you should be completely transparent with them. Remember that it may be best to meet with a tax attorney if you need your communications with your tax professional to be privileged. Whatever you do, Do NOT ignore the audit notice. If you do not timely respond, the IRS will decide your tax liability based on the information available to them.
Then, they will send you a notice demanding payment for the additional tax. If you continue to fail to respond, even if they are incorrect in their assessment, eventually it will be too late to appeal their decision and you will be liable for the tax. You will need to prepare your records for the audit for both the audit and for your tax professional to review. Your records need to be organized and complete.
If there are missing records, you should obtain another copy as soon as possible. Provide everything to your tax attorney or enrolled agent and they will determine which records should actually be brought to the audit. When it is time for the audit, your tax professional will need to show that you are an organized person in order to increase your chances of as favorable an outcome as possible.
IRS Liens, Levies and Seizures
Liens occur first, then levies, and last seizures. 60 days after the IRS has assessed a tax, if it has not been paid, an automatic IRS lien attaches to any property you own at that time and any property you may acquire in the future. You will not be able to change title to any of your real property until the lien is removed.
The next step for the IRS to take is to enforce the lien by placing a levy on your property, which will effectively transfer the property from you to the IRS-the seizure. The IRS will often levy a bank account and withdraw your funds. The IRS will also issue a Wage Levy, which will be sent to your employer. Your employer will be ordered to give all but a portion of your paycheck to the IRS.
If you are self-employed, the IRS can require you to inform them of any receivables that may come due and the IRS will contact your client and order them to make a payment to the IRS instead of you.
Liens and Levies on real estate. The effect of liens and levies on real estate varies depending on the type of real estate and its use; e.g., your residence could be treated quite differently than other real estate that you may own.
Stopping Liens, Levies and Seizures
Liens and Levies are lawful procedures used by IRS to collect unpaid taxes. If an IRS agent does not follow the procedures, a lien or levy can be removed; but, this is only a temporary remedy.
There are other methods by which you can remove liens and levies that involve Offers in Compromise "OIC"'s, Installment Agreements, Innocent Spouse Relief, and many others. All of these methods have pros and cons, and what may seem like a good way to solve your problem could easily cause you more problems in the future. For example many taxpayers seek to work out an Installment Agreement or Offer in Compromise only to find that these methods require them to waive other very important rights normally given under bankruptcy law or provided by statutes of limitation.
Many misunderstand these solutions as simple, especially tax resolution advertisers-nothing about the U.S. Tax Code is simple.
If you have received a notice of lien or levy, your time to respond is limited and you should immediately seek professional assistance.
If you win $2000 on a slot machine and then later lose $2000 at another casino, the IRS will most likely claim that you owe about $600 in taxes. This is not fair, but it happens all the time, often involving very large amounts of money.
If you are a foreigner visiting the U.S. and you put $2000 into a slot machine and then you win $2000, you may only receive $1400 from the casino with the remaining $600 being withheld and sent to the IRS, depending upon your country of citizenship. Why is this? It is due to the arcane and counter- intuitive tax code as it applies to gaming taxes. Gaming taxes are based upon "sessions", and the definition of sessions is not really that clear in the code.
When you win over a certain amount, depending on the game you are playing, a record of your winnings is sent to the IRS; but, even if you lose thousands of dollars, no record of your losses is sent to the IRS. Therefore, when you file your tax return, the IRS will match your tax return to the records they were sent from gaming establishments showing your winnings. If your winnings are not included in your income, the IRS will assess an additional tax-even if, overall, you actually lost money gambling that year.
If you claim that you had losses, the IRS has some strict and difficult requirements that must be met to prove your losses. A printout of your club-card activity will not be accepted to support a claim of losses. In order to show losses, you will need to show a session log that indicates your winnings and losses, and such session logs must be very detailed and supported by other records from extrinsic sources. If you are being audited due to gaming winnings and you do not provide supporting data that meets these standards that shows you also lost money gambling, the IRS will require that you pay tax on the "winnings"-your word alone that you lost a lot of money gambling will not be convincing. Whether you are a U.S. citizen being audited due to gambling winnings or a non-U.S. citizen who has had 30% of your winnings withheld, you should contact us to assist you.
We can assist U.S. citizens with filing an amended return to reduce or eliminate the gaming tax. If you are a non-U.S. citizen, you do not necessarily have to allow the IRS to keep the 30% that was withheld. We can assist you with getting some or all of this money refunded by gathering together the necessary documents and data, preparing and submitting the necessary documents and forms to the IRS, and filing for a refund for some or all of the amount that was withheld.