When the IRS comes knocking- either in person or via a correspondence audit- you should be prepared to answer their questions- fully, completely, and truthfully.
Tag Archives: IRS
Now?
So, the ides of May have come and gone. Which means it’s been a month since your 2014 taxes were due to be filed (and some two months since corporate filings were due). It’s time to consider what 2015 will bring- because tax planning should have started already. It’s way too late when the calendar reads 2016 to you wonder what your real tax bite will be.
IRS Follies
I’ve written how the partisan attacks on the IRS have devastated the service. Now, when a taxpayer calls the IRS, s/he can expect to be on hold for 75 minutes- and hope that when someone finally comes on the phone, they are not (un)intentionally disconnected- or told that the representative can’t help the caller.
Eat up- quickly!
I’ll bet you won’t be surprised when I say I send articles to my friends and family. But, you may be surprised to know I send them several times a day. Of course, I am positive it’s information they ABSOLUTELY have to know and have. Well, I did that again last week. But, this time I only sent it to my son, because I knew it could be very important to him.
What? I am losing money and must take a salary?
I have written about “reasonable compensation” rules, as they apply to those small businesses that employ the “S” (that used to mean ‘small’ business) designation. This designation means one is incorporated or has set up an LLC and elected to be taxed as an S entity. (The IRS demands you provide them a signed- by each and every stockholder- Form 2553.)
Continue reading What? I am losing money and must take a salary?
Why you need an Enrolled Agent
The IRS is being squeezed. Part of this is a result of the insane concept that Republicans perpetrate about the deficit. (OK. I have a post coming up soon about this. Suffice it to say, all that hoopla how the deficit was the biggest bugaboo we needed to address a few years ago- well, the looming deficit problem is basically gone. Not because we cut the budget- that was only going to work over 10 years. But, because, as most sentient beings recognized at the time, the large deficit was simply a factor of the moribund economy. The economy picks up- the deficit problem is erased. Voila- we’re magicians.)
The Bill of Rights?
Most of you know that I am (among many other professions and trainings) an Enrolled Agent. That means that I have passed muster with the IRS (after a multi-day exam and copious CEU’s to stay current) to handle taxes and finances for any entity subject to the IRS rules and regulations. As such, I interface with the various offices of the IRS at least once a week – and often more than once a day.
Divorce- IRS Style…
“No, David, I need her social security number.
“I don’t have it. Just list it anyway.
“No can do. It doesn’t work that way.”
Rollovers are NOT transfers
You know that old joke about being your own lawyer means you have a fool as a client? Well, in this case, Alvan Bobrow proved that – and also made it worse for the rest of us.
A lesson on “how not to”….
Most of you know that I routinely interface with the IRS (Internal Revenue Service). That effort is taxing my clients double or triple- because the IRS is keeping me on hold for 20, 30, 40, and 60 minutes routinely. Thankfully, there is a purported dedicated line for tax professionals, but even that outlet is being decimated. So, those waits ensue- and my clients are billed unnecessarily. Moreover, the IRS was never responsible for the advice they gave taxpayers over the phone- but now the quality of this advice is worse than ever.