Frequently Asked Tax Questions – And The Answer You Need From Joe Mastriano, CPA.
I RECEIVED AN IRS NOTICE CLAIMING PENALTIES!
If you disagree, and the amount is significant enough, you can either:
a.) Review the IRS’s reasons for penalty relief and file an appeal.
b.) Pay them and file a claim for refund on Form 843 — See more on Penalties.
THE IRS ADDED EVEN MORE PENALTIES. WHAT DO I DO?
- Penalties will continue to add on past due taxes.
- There are also penalties for not filing required documents — See Penalties & Interest.
I HAVE A LOT OF PENALTIES FROM A TAX AUDIT. WHAT DO I DO?
- Penalties for late paying — See more on Penalty Removal.
- Negligence and substantial understand penalties — See more on Penalty Removal.
THE IRS HAS CHARGED ME TRUST FUND PENALTIES. WHAT CAN I DO?
- Are you liable? — See Trust Fund Rules.
- Call R.O. and prove your case.
- File an appeal of trust fund — See Trust Fund Appeals.
THE IRS HAS ADDED INTEREST TO MY BILL!
The following are acceptable reasons to remove interest:
- There was an IRS delay in processing.
- There was an IRS error.
- The IRS issued an erroneous refund.
- I’VE NEVER GOT THEM TO AGREE, GOOD LUCK! — See more on Interest Removals and IRS Errors.
I RECEIVED AN IRS LETTER CHARGING ME ADDITIONAL TAX WITH NO EXPLANATION!
- Is it correct?
- Request a 90 day letter (notice of deficiency) and demand it be abated in writing — See more on Notice of Deficiency.
THE IRS NOTICE I RECEIVED CLAIMS THAT I HAVE AN UNDER REPORTED INCOME!
- Is it right?
- In writing, claim it was wrong, request the penalties be removed — See more on Penalty Removal.
- Get issuer of W-2, 1099, K-1 to change the incorrect 3rd party documents.
- Call IRS and get a month for you to send in the corrected documents.
I’M SCARED OF THE IRS!
- Many people are scared, but don’t let the IRS push you around! — See more on Scared of the IRS.
I RECEIVED A NOTICE DEMANDING PAYMENT!
- Was the notice a 1058(D.O.), CP501-CP504, etc.?
- Follow rules for payment plans! — See more information on Payment Plans.
I DON’T HAVE THE RECEIPTS TO PROVE MY DEDUCTIONS!
- If you are being audited then this could be a problem — See more information on Audits.
MY BUSINESS DEDUCTIONS WERE DISALLOWED BECAUSE THE IRS SAYS MY BUSINESS IS A “HOBBY”!
- The “hobby loss” rules can be interpreted by the IRS to favor them.
- You may need quality audit representation — see more on Audit Representation.
I DISAGREE WITH THE AUDIT RESULTS AND THE AUDITOR WANTS ME TO SIGN THE REPORT AND PAY!
- If you disagree you could ask to speak to the manager.
- You could file an appeal.
- Take actions to preserve your right to file a court petition — See more on Audit Appeal.
APPEALS DID NOT HELP ME WITH MY AUDIT!
- You can file a tax court petition — See more on Tax Court Petition.
MY TIME TO SUBMIT AN AUDIT APPEAL AND COURT PETITION HAS EXPIRED!
- Request audit reconsideration from the chief of exam.
- Ask auditor for help — See more on Audit Appeal.
- Write the tax payer advocate — See more information on Taxpayer Advocate.
I PAID TAXES THAT I DIDN’T OWE BECAUSE I WAS SCARED!
- File a Claim for Refund — See more on Filing a Claim for Refund.
IRS IS THREATENING A WAGE LEVY AND BANK LEVY!
- You need to be in compliance with tax return filing.
- See wage levy and bank levy pages — See more information on Wage and Bank Levies.
I CANNOT AFFORD A PAYMENT PLAN
- You may qualify for an offer.
- You may qualify for CNC (currently not collectable).
- You may qualify for minimum monthly payments (that don’t reduce your liability) — See more information on Payment Plans.
THE IRS IGNORES MY LETTERS!
- You are not alone–they used to ignore my collection letters, too. — See more on Letters and Notices.
- You can call the IRS and check your account.
- Obtain a record of your account.
- Call R.O., ACS, or appeals — See more on R.O., ACS and appeals.
I HAVEN’T FILED RETURNS FOR YEARS!
- You are not alone — See more on Unfiled Tax Returns.
MY HUSBAND/WIFE LEFT ME WITH A TAX LIABILITY I OWE BUT CAN’T PAY!
- You may qualify for “Innocent Spouse.”
- If your spouse forged your signature, see “Innocent Spouse” — See more information on Innocent Spouse.
I CAN’T AFFORD PROFESSIONAL HELP!
- This site gives you what you need to represent yourself — See more on Representing Yourself Before the IRS.
- You can purchase a book on IRS collections in a bookstore and use it in conjunction with this website.
THE IRS HAS FILED A RETURN FOR ME!
- You can file your own returns to replace it at anytime — See more on Tax Returns.
MY FIANCE OWES TAXES. WILL I BE LIABLE IF WE GET MARRIED? WHAT IF WE GET DIVORCED?
- You are only liable for taxes of returns that you sign.
- If you live in a community property state then your wages, etc., can be signed — See more information on Joint Returns.
HOW CAN I GET TAX RELIEF?
- Look at our website under IRS solutions — See more on IRS Solutions.
CAN I GET HELP IF I QUALIFY AS ELDERLY OR RETIRED?
- Yes, the IRS makes no distinction.
- The IRS can even levy social security checks — See more on IRS Solutions.
I HAVE MAJOR IRS PROBLEMS AND I NEED HELP! or THE IRS IS KILLING ME!
- We can help you with your major IRS problems! — See IRS Solutions.
I HAVE IRS PROBLEMS AND I AM IN THE MILITARY!
- Get your help today with IRS problems in the Military — See IRS Solutions.
