IRS Marches On...Will The IRS Ever Close?
Small Business Survives Armed Robbery, Uninsured Fire and IRS Audit!
Dentist Denied Damages From IRS!
Taxpayer Gets Interest Abated!
IRS Considers Y2K Problems For Penalty Abatement
Politicians Want To Tell Federal Taxpayers... "Where Their Money Goes"
IRS is Holding 102,840 Refund Checks - Is One Of Them Yours?
Not Enough IRS Employees Listening To Divorcees With Tax Horror Stories!
Massachusetts Man Pleads Guilty to Conspiring to Impede the IRS!
>Do You Know Someone Who Needs Help With An IRS Problem - But May Be Too Embarrassed To Ask For It?


IRS Marches On...Will The IRS Ever Close?

It's possible although, it's very unlikely. The United States Government needs a lot of money to operate each year and the IRS does a great job of collecting it. There is absolutely no reason for the U.S. Government to close the IRS.

Taxpayers who have IRS problems must come to grip with the fact that waiting for them to go away is not a remedy. I know how much anxiety dealing with the IRS can cause a taxpayer, especially a taxpayer that hates taxes in general.

All people try to avoid things they dislike in life because it's human nature. We want to deal with things that we find pleasant and rewarding. Dealing with the IRS usually is not found in this category.

Many taxpayers don't realize that you can have someone else deal with IRS problems for you. They can completely handle all your IRS problems. Instead of waiting for the IRS to close - give your IRS problems to a professional and let them deal with the IRS so you don't have to.



Small Business Survives Armed Robbery, Uninsured Fire and IRS Audit!

The IRS audited the owners of a small liquor store and bar which had burned down, been rebuilt and then robbed at gunpoint. The business owners contended that they were losing money and their business records were destroyed in the fire.

The IRS reconstructed the business records using bank records, which showed more bank deposits than the gross receipts reported on the business tax return. The IRS was also concerned that the owners deposited very little cash at the bank.

The business owners argued that they cashed checks for customers and thatís why they had no cash to deposit. They also said the armed robbery was never even reported to the IRS because their accountant said it might trigger an audit.

The business owners were forced to accept the amounts the IRS recalculated as unreported income and they were charged with negligence penalties. Is there anything else that can go wrong for these unfortunate businessmen?



Dentist Denied Damages From IRS!

An IRS Criminal Investigator contacted the dentist's accountant, bank and insurance company seeking information. The dentist claimed that the IRS had violated his taxpayer privacy rights by making the requests for information and disclosing the fact that he was under criminal investigation.

The court said that the IRS had not contacted the dentist's customers and that only a few discrete parties were contacted for specific information. The court agreed with the IRS and denied the dentist's request for damages against the IRS for disclosing private information.



Taxpayer Gets Interest Abated!

A taxpayer and his wife involved in a tax motivated limited partnership received a favorable decision from the tax court.

The taxpayers said an IRS employee told them, that no interest would be added to the amounts they owed while waiting for the appeal of a Tax Court decision.

In court the IRS didn't offer any evidence to argue the taxpayer's claim. The court agreed with the taxpayer and abated the additional interest that had been added since the statement by the IRS employee.


IRS Considers Y2K Problems For Penalty Abatement

Taxpayers who are hit with IRS penalties and interest as a result of a Y2K problem may be eligible for relief.

The IRS says they will ask five questions in deciding if a taxpayer's Y2K argument is valid.

Here they are:

What was the Y2K failure?
How did it effect your ability to meet your tax obligations?
What steps did you take to become Y2K compliant?
When did you discover the failure?
When will the failure be corrected?



Politicians Want To Tell Federal Taxpayers... "Where Their Money Goes"

Congressmen Cook R-UT and Senator Schumer D-NY want the US Treasury to inform taxpayers where their tax dollars are being spent.

They're proposing that the US Treasury send an itemized receipt to taxpayers that make a request for this information.

They want taxpayers to know how much is being spent for National Defense, International Affairs, Medicare, Medicaid, Social Security, Education, Law Enforcement, Assistance to the Poor, Health Care and Environmental Cleanup.

The IRS already provides a pie chart in their instruction book for preparing tax forms each year of where they are spending our money. Do we really need an itemized receipt for each taxpayer?



IRS is Holding 102,840 Refund Checks - Is One Of Them Yours?

The IRS has $72 Million in income tax refund checks that it canít deliver. The average check is for $700 and the IRS says it wants to get them into the hands of the rightful owners - but it's not trying to hard.

The IRS says all they can do is send out a postcard to the taxpayers last know address and then wait for the taxpayer to contact them. They won't even deal with the Postal Service change of address program to obtain taxpayers' current addresses.

This seems odd when you consider the methods the IRS employs in finding taxpayers that owe them money. If they are serious about getting refund checks to taxpayers, why don't they consider using these same methods to find taxpayers who have refunds?



Know Your Rights!

You have the right to be represented by an Attorney, CPA or EA when dealing with the IRS. Be sure to consult with one before you say something to the IRS that you may regret. Remember, IRS employees are paid to look out for the governments interest, not yours!



Not Enough IRS Employees Listening To Divorcees With Tax Horror Stories!

New IRS rules and guidelines are supposed to allow divorcees stuck with their ex-spouses IRS tax liabilities a way out. These new rules and guidelines deal with "Innocent Spouse" relief. The problem is that the IRS doesnít have enough employees trained in how to handle innocent spouse claims filed by divorcees.

The IRS estimated that only 3,000 taxpayers would make a claim for innocent spouse this year, when in reality over 45,000 taxpayers filed applications. How could the IRS have been this far off in their estimates? The Senate Hearings on IRS Abuse spoke directly about this HUGE problem and told the IRS to do something about it!

The Congress even passed legislation giving the IRS authority to help divorcees obtain tax relief by making an innocent spouse claim. How could the IRS miss the fact that tens of thousands of divorcees would be making an innocent spouse claim?

Now the IRS is playing catch-up and training their staff to handle the large number of Innocent Spouse claims received everyday. The problem for divorcees is that the clock is ticking and time is running out to obtain Innocent Spouse relief.

The new tax law allowed for a Special 2-Year window in which divorcees stuck with very old tax liabilities could still file for innocent spouse relief. If you or someone you know has been stuck with an IRS tax liability caused by an ex-spouse, then make sure you file for innocent spouse relief before the deadline.

The rules under the new tax law are tricky and how you answer specific questions may determine whether or not you are granted innocent spouse relief. Call my office for a free consultation to discuss your options on how you can seek innocent spouse relief before the deadline.



Massachusetts Man Pleads Guilty to Conspiring to Impede the IRS!

The Massachusetts man also plead guilty to paying kickbacks to purchasing agents for federal contractors. He was accused of helping an employee of one of the companies to conceal approximately $350,000 in cash kickbacks.

He is facing a possible sentence of 5 years for the conspiracy charge and 10 years for the kickback charge.

IRS Tips

You can always get some type of relief from IRS Collection activities. It may not be what you had in mind but it's probably better than what you thought.

You have lots of rights under the new tax law. Here are a few tips to keep in mind, if you run into IRS Collection Enforcement activities:

You are entitled to proof that you owe a specific tax liability. You have the right to appeal any type of enforced collection activity. You have the right to retain representation. You do not have to answer any questions without a valid summons.



Do You Know Someone Who Needs Help With An IRS ProblemÖBut May Be Too Embarrassed To Ask For It?

This is really very common and sometimes having a friend or loved one provide a gentle nudge or a big push can help a person get going in the right direction to ending their IRS problems. The worst thing that most people do when they have IRS problems is either they do nothing or they contact the IRS themselves and say all the wrong things. I think the reason people say all the wrong things to the IRS is because they are not used to dealing with them everyday and they just say whatever "Comes Out". The problem with this is, that most people have some sort of opinion of the IRS that comes through in their communication with IRS employees. Many people with IRS problems often have very negative opinions of the IRS, which makes them the WORST possible person to communicate with the IRS.

Regardless of your opinion of the IRS, you have to get along with them to some degree if you have any desire of a financial future in the United States. Many people come to our office and tell us "They just want to get back in the system and have the IRS leave them alone." They know they've made some mistakes, but they want to put it behind them.

I understand that person and will provide them a number of options to solve their IRS Problems. Usually they decide to have my firm handle all the communications between themselves and the IRS. This means NO IRS PHONE CALLS OR KNOCKS AT THE DOOR. Everything goes through my office. I take the heat, not my clients.

The best time to handle most IRS Problems is before they blow up in your face, and eventually they all will!

Call my office today to set a free confidential consultation to discuss ending IRS Problems. If you're calling for a friend or loved one, then offer to drive over with them for moral support. Youíll be doing them a great favor and itís FREE. Thereís nothing to lose except the IRS Problems. Call Today!



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James M. Frater, C.P.A.
405 13th Street, Hood River OR 97031, Tel: 541 386-2141, Fax: 541 386-4430