Dogged By The IRS Blog

Every year thousands of Americans try many different methods to get out of paying income taxes. But, according to the Internal Revenue Service, very little of these excuses are likely to work. The IRS recently released its annual The Truth About Frivolous Tax Arguments report. This report discusses popular arguments people have presented over the years in order to try to not pay taxes. It also states the policy statements and tax court decisions that the government has used to debunk these arguments.

The IRS wishes hopes that if anyone is trying to get out of paying their taxes, that they first read the 84-page report first. This most likely will convince them that doing anything other than paying your taxes as you are obliged to do as a United States Citizen, would be a very poor decision.

Even after reading the report, if you do decide to challenge the IRS on whether you should be paying your taxes or not, on legal or moral grounds, you should know, that to do so will probably cost you more time and more money accruing back taxes or delinquent taxes, than if you were to just pay your taxes on time in the first place.

To combat such frivolous tax returns, Congress, in 2006, raised the penalty for such frivolous tax returns from $500 to $5,000. While the penalty is subjective to whether the IRS identifies a portion of a tax return submission as frivolous or not, this certainly isn’t the type of situation that any taxpayer wants to find themselves in.

Here are a list of a few of the most popular contentions against paying taxes, and the IRS’s response:

1. On the basis of religious or moral grounds

Taxpayers frequently use the First Amendment as an argument as it is against their moral or religious beliefs to pay taxes. They base this on the Amendments statement that “Congress shall   make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.” This has been debunked by the Supreme Court frequently.

2. Taxes are a form of servitude that is in violation of the 13th Amendment.

The 13th Amendment prohibits slavery, but courts have consistently found that paying taxes is not forced servitude and that it is not only “unsubstantiated” but “frivolous”

3. Paying taxes violates the Fifth Amendment

The Fifth Amendment to the Constitution says a person shall not be “deprived of life, liberty, or property, without due process of law.” Sounds good, but the problem is that the law has already decided that it is well within the government’s rights to charge residents to live here. There is a well established Supreme Court case to support this.

In conclusion, pay our taxes. If you do have any concerns or issues regarding your taxes or your rights to pay or not pay taxes, it is advised that you contact a tax expert. Jay Allen Finn of Doggedbyirs.com is just such a professional and can readily answer any and all questions concerning taxes or any IRS problems that you might have.

The Internal Revenue Service has announced a second round of amnesty for U.S. taxpayers with secret foreign accounts. The new program is called the Offshore Voluntary Disclosure Initiative and is aimed at getting U.S. citizens who hold foreign bank accounts back in line with the IRS and avoid any future prosecution.

An earlier amnesty that ran from March 2009 to October 2009 was deemed highly successful as nearly 15,000 taxpayers stepped forward to confess to holding offshore accounts. The new program did make penalties a bit tougher, however, than the first one. The IRS has increased penalties and taxpayers will now owe as much as 25% of the foreign account’s assets, compared with 20% two years ago.

The program applies to all years since 2003, two years longer than many experts expected. Those who step forward will also owe back taxes, interest and other penalties. The deadline to complete all necessary paperwork and pay tax penalties is August 31, 2011. The main incentive is to volunteer this information to the IRS is to avoid jail time or larger penalties in the future. The agency said people who confess to holding offshore accounts are highly unlikely to be prosecuted.

Avoiding the glare of the IRS on foreign bank accounts might be a thing of the past. In an example, the IRS, in its’ pursuit of Swiss Banking giant UBS AG, in a case that ended last year, resulted in the Swiss Bank divulging 4,500 account holders to the IRS.

The IRS is making certain capitulations and they are offering better deals to some taxpayers. This is where having an experienced tax accountant who knows the ins and outs of the IRS, like Jay Allen Finn, can really pay off. Officials at the IRS have expanded a lesser penalty regime that reduces the 25% tax levy to 12.5% or 5% for some tax payers who can demonstrate that they weren’t aware of the foreign reporting requirements or had minimal contact with the account, especially if it held less than $75,000. Jay Allen Finn of DoggedbyIRS, is just the tax professional that can walk you through what some of the IRS capitulations are and give you the best chance of reducing the fees and penalties that are owed to the IRS by holding a foreign account.

If you have IRS tax debt or if the IRS has levied your wages and bank account, you need a professional tax help specialist. IRS problems can be quite burdensome. Owing thousands in back taxes is not some to take lightly. The government will continue to hound you in many ways. Relentless phone calls, threatening letters, bank account levies and wage garnishment are some of their tactics to take your money.

The past couple years, our tax accounting firm has seen everything. The common theme seems to be that no matter what complications an individual or business may be going through, the IRS still has their job to do and will pursue your tax debt no matter what. The important thing for all parties to consider when dealing with IRS tax problems is there is always a solution to provide tax debt resolution and relief.

Our professional team specialized in providing tax debt relief. If the IRS has issued tax liens, garnish your wages and continues to harass you, we can help. In most cases we can assist with an IRS offer in compromise. This process should only be handled by an experienced, reputable tax attorney or CPA and preferably a member of the Better Business Bureau. Settling your back taxes with the IRS could mean a difference of tens of thousands of dollars saved if handled the right way.

Contact us today to learn how we’ve fought for individuals and businesses just like you with similar IRS tax problems. Don’t do alone. Let Jay Allen Finn look at your situation and he’ll provide you the best course of action. As a former IRS agent and an A+ member rating with the BBB in Greater Houston, Texas, Jay is the tax professional you need in your corner when battling serious tax problems.

There are several tax levies and partial levies that IRS can apply.  The most well known and biting is the one I often see here at my office: the Wage levy or wage garnishment!

(Others; to be explained later could be a percentage of Social Security, Military pay, Brokerage account or bank and Credit Unions).

Wage levies are often so biting because a married person with one child could lose up to 70% (2/3) of their check each payday (garnished and sent to IRS).

IRS is often looking to get your attention here (not necessarily have you set up a plan) or have you acknowledge these late taxes.

Usually, if you have not answered letters from the IRS and/or not filed or recognized your back taxes, the IRS may have filed for you ASFR returns. In most of these cases one must be tax compliant before we make your levy go away. If you bring your tax liability or IRS Levy to us in time, I can often lift the levy in time by IRS Fax to your payroll department.

Social Security or Military pay is similar to wage levies but are usually limited to 20%. Lifting these wage levies is tougher, because once the IRS agrees to lift them, reporting them from one government agency to another is not automatic.

Brokerage, credit union or bank levies are different because the IRS hits these accounts for a certain amount up to and then gives you time to make arrangements before hitting it again!

Summary of the ASFR or “IRS prepared tax returns:” IRS bases these on Married, filing separately with no dependents or even the standard tax deductions. Should you even have broker transactions (IRS has no way to figure cost-basis) so the IRS thinks they are going after some (“day trader”) for a possible million dollars+ in back taxes.

Tax Liens: Often a tax lien is done after the fact once a person or company signs an installment agreement, is missing in action or whenever the IRS thinks they need to protect their interest in a person or companies’ property. It is often not much you can do about this although you have the right to a hearing. Should you wish to make an IRS settlement, enter into an installment agreement or Offer in Compromise, you will find that you must surely agree to the lien.

IRS Lien Release: The lien is on file in the county where you live and may be released there or local service center when you have satisfied your obligations.

Other than extending unemployment for 13 months, the following tax programs were cut until the tax law was passed in December 2010, but were recovered at that time. They are now effective for the entire 2010 tax year as well as 2011:

• Educator Expense Deduction of $250
• State Sales Tax (an itemized deduction) instead of State Income Tax (which Texas does not have)
• Higher Education Tuition and Fees Deduction

Taxpayers itemizing or using the 3 tax deductions above will not be able to file their tax return for 2010 until the IRS makes an announcement sometime in mid-February.

Other minor changes went into effect but there is one major change for 2011 only:

Social Security deduction for employees portion will be reduced by 2 percentage points without affecting your future Social Security payout. This does not affect the Medicare payroll deduction.

Furthermore, the IRS is now allowing self-employed individuals to deduct their health insurance directly from their income. This change could potentially reduce your tax debt and provide a healthy tax refund this year.

Keep in mind, these tax law and tax code changes require professional assistance. Taxpayers sometimes make the mistake of choosing the local quickie tax refund service on the corner. It’s always important to do your due diligence when selecting a so called tax specialist to prepare your income tax return. Are they accredited by the Better Business Bureau? If so, what is their member rating? How long have they been in business?

Jay Allen Finn, CPA not only has 30 years in the tax business, but as a former IRS agent, he is well aware of many tax problems that individuals encounter and will fight the IRS for all his tax clients. There’s a reason Jay Allen Finn has an A+ member rating with the BBB – he treats all IRS tax problems with integrity and will go the extra mile to provide tax relief to his valued clients.

If you would like more information on this year’s tax credit and tax code changes, or if you require any tax help at all, feel free to contact Mr Finn. Located in Houston, Texas, Jay Allen is a respected, reputable local CPA with the best tax knowledge to handle your IRS taxes.

An IRS tax lien can be a very worrisome thing. A tax lien can come in various forms: an IRS tax lien, a state tax lien, or a federal tax lien. All of these can keep you up at night with worry. But, with the right assistance from an expert who has years of experience assisting clients in removing and gaining tax relief from these liens your worries could be behind you and you can start to live your life again.

An experienced professional, like Jay Allen Finn, can assist you in finding the best solution for you and your family in providing tax lien relief from the IRS. There are many so-called experts and attorney’s out there who claim that they can assist you in order to find tax lien relief. Be sure that whomever you choose that they are recognized and BBB accredited to conduct tax business. Sometimes the best place to start in order to find a professional that can help you is with the IRS directly or by calling someone who has all the necessary credentials and even worked for the IRS for many years and understands exactly what it takes to get you the best outcome in solving your tax lien troubles. Jay Allen Finn has the credentials (A+ rating with the Better Business Bureau), the experience (30 years dealing with tax relief issues) and the expertise (former IRS agent) to guide you and your family through these troubling times.

A tax lien is not something that you can ignore. You must take care of a federal tax lien by paying the IRS what you owe in back taxes or you must be prepared to file an “offer in compromise”. These are the only two manners in which to get a tax lien release. We can assist you in qualifying for an offer or attempt to setup settlement plan with the IRS that you feel comfortable with. With Jay Allen Finn, tax lien relief is just a phone call away: 877-720-3477.

There is no doubt that we are still experiencing tough times in this difficult economy. While some markets have begun to level off a bit, others are still hurting and this hurt resonates with many individuals and small businesses. Millions of Americans will be filing tax returns for fiscal year 2010 and many have accrued quite a bit of tax debt. Like every year prior, 2010 has its fair share of new tax laws and new tax changes for individuals. Some of these changes may or may not prove beneficial to you. That is why it is extremely important to have your income tax return prepared by a tax preparation specialist like Jay Allen Finn. As a former IRS Agent, Jay knows how to provide IRS tax relief at affordable rates. There is a reason he has acquired an A+ rating from the Better Business Bureau. Very few tax help specialists have that rating.

Some of the notable changes to the 2010 tax laws are the Affordable Care Act Tax Provisions that were enacted based on recent health coverage legislation. This year it includes a small business health care tax credit which can make the cost of covering workers more affordable. Also important was the extension of COBRA Premium Assistance. There are also an assortment of Earned Income Credits and Deductions that every individual and small business owner should know about. While most tax preparation software on the market does include these new tax changes, they don’t do a good job of explaining who can and cannot take advantage of them. This is why, more than ever, hiring a credible and professional tax preparer like Jay Allen Finn is imperative.

Paying your Income Tax doesn’t have to be an unpleasant experience. With 30 years of experienced tax knowledge provided to you by a professional, especially one that formerly worked as an agent for the IRS, you can make this tax season a very pleasant experience. Don’t get caught filing your taxes wrong or thinking that you can take advantage of certain tax changes when in fact you cannot. Hiring a professional will ensure that you file your taxes correctly and in a manner that best benefits you. Avoid filing false tax returns and running the risk of a tax lien. Hire a professional: Jay Allen Finn of doggedbyirs.com.