Venar Ayar | TaxConnections

12 Jun 2020

Tax Professionals: Your Guide For Tax Audits

TaxConnections, Guide For Tax Audits, Venar Ayar

This Guide For Tax Audits was prepared by Tax Lawyer Venar Ayar. The Guide covers the many notices that the Internal Revenue Service sends to individual taxpayers regarding tax audits. This is an excellent guide for tax professionals and taxpayers alike and we thank Ayar Venar for compiling this information and reference guide for our readers.

Please be advised that all tax audits should be handled by an experienced tax professional. Please refer to the guide below:

IRS NOTICE NUMBER DESCRIPTION – VENAR AYAR’s ADVICE

CP11–Audits This notice states that your return has been changed because the IRS believes there was a miscalculation. This means you owe money on your taxes because of this. Double-check the numbers on your tax return to confirm that you actually did make a mistake. If there was no mistake on the original return, you need to respond to the notice with an explanation.

CP14- Balance Due The IRS has sent this notice because you owe money on unpaid taxes. This is the first letter sent in the collection process. It is the initial tax bill sent. The letter gives you an opportunity to pay the tax in full to prevent any collection actions. If you ignore the letter, the IRS will continue sending notices that get more and more threatening, and will eventually start taking collection actions.

CP16-Audits This notice was sent because we have found a miscalculation in your return that affects your refund. The IRS records show that you owe other tax debts, and we used all of part of your refund to pay them. Double-check the numbers on your tax return to confirm that you actually did make a mistake. If there was no mistake on the original return, you need to respond to the notice with an explanation, otherwise the IRS will keep all or part of the refund you claimed.

Written by Venar Ayar | Posted in TaxConnections

30 Apr 2020

Penalties You Can Face For Unpaid Payroll Taxes

As an employer, you are required to pay employment taxes to the IRS for each of your employees. Failure to do this can result in penalties from the IRS.

Find out what taxes you should be paying to the IRS, what penalties can result from unpaid taxes, and how an attorney can help.

Key Insights We Will Discuss

-Types of payroll taxes you need to pay
-Penalties for unpaid payroll taxes
-How a tax attorney can help

Types of Payroll Taxes You Need to Pay

-Employers are mandated by law to submit payroll taxes to the state and federal governments.

Some of these taxes can include:
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Written by Venar Ayar | Posted in TaxConnections

28 Apr 2020

5 Tax Crimes And Their Penalties

Knowingly not filing your taxes, providing false information, and other tax crimes can have serious consequences for taxpayers. While some penalties may come in the form of fines, some punishments can be as severe as prison time. Take a look at five tax crimes and their penalties and learn why you need a tax attorney to represent you.

Key Insights We Will Discuss
-Consequences of filing a fraudulent return
-Tax evasion charges
-Penalties for not filing your taxes
-Charges for knowingly not paying your taxes
-Penalties for willingly not disclosing offshore bank accounts
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Written by Venar Ayar | Posted in TaxConnections

15 Apr 2020

What To Do If You Default On Your IRS Payment Plan

When you owe money to the IRS, you can typically set up a payment plan. But what happens if your financial situation changes before you’ve completed your payments, and you default on your plan? Find out what to do if you default on your IRS payment plan, and how a tax attorney can help.

Key Insights We Will Discuss

What to do when you default on your IRS payment plan
Consequences of defaulting on your payment plan
How a tax attorney can help you explore options when you default on a payment plan

Steps To Take When You Default On Your IRS Payment Plan

When you owe money to the IRS, you might not have enough cash on-hand to cover it. In those cases, you can work with the IRS to set up a payment plan. The IRS recommends calling the agency as soon as you default or when your financial situation changes to discuss your options. One option can be reducing the amount of your monthly payment to an amount more affordable based on your current financial situation. The IRS may ask you to submit proof of changes to your income or finances when making changes to your payment plan.

Consequences Of Defaulting On Your Payment Plan
If you have an existing IRS payment plan, defaulting on payments can cause the IRS to terminate the plan. Terminating this plan can result in the IRS taking collection actions, including imposing a tax lien.

The IRS typically waits about 60 days before terminating payment plans, but it can decide to terminate the agreement without notifying you.

The IRS can also end your payment plan if you accumulate another tax debt while you’re repaying the previous debt. Even if you have been making regular payments, the IRS can still terminate the payment plan under these circumstances.

If you need to correct the default, you can consult with a tax attorney on how to pay the amount of the missed payments and how to reinstate the plan. A tax attorney can also help you renegotiate the payment plan, which can include lowering your monthly payments and submitting information to show how your finances have changed.

Have a question? Contact Venar Ayar.

Written by Venar Ayar | Posted in Default On IRS Payment Plan

08 Apr 2020

3 Reasons The IRS Can Keep Your Tax Refund

When you file your income taxes and it shows that you are owed a refund, it doesn’t necessarily mean you will get the money. There are certain situations where the IRS will keep your refund.

Key Insights We Will Discuss

-The IRS will keep your refund if you or your spouse owe federal or state taxes.
-If you or your spouse owe other debt, the IRS can keep your refund.
-The IRS can keep your refund if it thinks you made an error on your return.

You Owe Federal Or State Taxes

-One reason you may not receive a refund from the IRS is if you – or your spouse – owe back taxes. The IRS will keep the refund and apply it towards the past debt.

-If your spouse accumulated an IRS debt before you were married, the agency will still keep your joint refund to pay the past taxes he or she owes.
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Written by Venar Ayar | Posted in IRS Refund

10 Mar 2020

Can You Avoid An IRS Tax Lien?

If you can’t pay your tax debt in full, you may still have options for avoiding an IRS tax lien. The IRS allows certain taxpayers to receive a lien withdrawal, lien discharge, or lien subordination.

Key Insights We Will Discuss
The main ways to get relief from IRS tax liens.
Who qualifies for tax lien relief.
Reasons you may need to avoid an IRS tax lien.

Lien Avoidance Strategies
There are three main ways to get around an IRS tax lien:

A lien withdrawal completely eliminates the IRS Notice of Federal Tax Lien
A lien discharge removes the lien from one piece of property
A lien subordination gives another creditor a senior lien position for a specific piece of property
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Written by Venar Ayar | Posted in IRS Tax Lien

03 Mar 2020

Does Your IRS Tax Debt Ever Expire?

Venar Ayar- Does Your Tax Debt Ever Expire?

The IRS generally has ten years to collect your tax debt from the time the tax is assessed. This period can be extended if certain events take place that toll the statute of limitations of tax debt collection.

Key Insights We Will Discuss:
Events that could extend the collections period for your tax debt.
How to determine when your tax debt will expire.
Options when the collections period is about to expire on your tax debt.

The Collections Statute Expiration Date (CSED)
The CSED is the date your tax debt officially expires. Once that occurs, the tax debt is no longer legally enforceable.

The CSED is generally ten years from the date of tax assessment. Tax is considered assessed when you file a return or when a deficiency assessment is made.

Events That Extend Your CSED
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Written by Venar Ayar | Posted in IRS Tax Debt

27 Feb 2020

How Much Can The IRS Take In A Wage Garnishment?

The IRS is required to leave you with a minimum amount of monthly income when your wages are being garnished. The remaining funds will be seized and applied to your tax debt until your balance is paid off or the wage levy is released.

Key Insights We Will Discuss:

How the amount of a wage garnishment is calculated
How bonuses, commissions, and other payments are treated in a wage garnishment.
What to do to prevent or eliminate a wage garnishment.

IRS Wage Garnishment Calculation

A certain amount of every individual’s wages is exempt from IRS levy. This exemption is calculated based on your filing status and how many dependents you claim.

A single person with no dependents will be left with $1,033.33 each month. A Head of Household with two dependents would receive $2,270.83 after the IRS levy.

The remainder of your paycheck will be applied towards your tax debt. Wage levies are continuous, so the wage garnishment will continue every pay period until your balance is paid or the levy is released by the IRS.

Written by Venar Ayar | Posted in TaxConnections

25 Feb 2020

5 Benefits Of Negotiating An IRS Installment Agreement

An IRS installment agreement is one of the best ways to resolve your tax debt problems. You can avoid most types of IRS collection actions and pay off several years of tax debt as long as you make your monthly payment.

Key Insights We Will Discuss:
Why IRS installment agreements are such a popular tax resolution option.
How an installment agreement protects you from IRS levies and liens
How you can modify your installment agreement should you need to

Benefit #1: Avoid IRS Levies
The IRS can seize your bank account or wages to collect back taxes. If you enter into a payment plan, the IRS will generally stop pursuing any type of levy as long as you make your monthly payments.

The one exception is a tax refund offset. The IRS may continue to seize your tax refund checks until your debt is paid off in full.

Benefit #2: Pay Off Several Years of Tax Debt
If you owe tax debt for several years, you may receive a separate set of notices for each year. You may become confused and overwhelmed when trying to figure out what you owe for each period in back taxes, penalties, and interest.

You can pay off multiple years of tax debt with one monthly payment. Before you start, have a tax attorney request your tax transcripts to determine how much you owe for each period.
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Written by Venar Ayar | Posted in IRS Installment Agreements

20 Feb 2020

5 Ways The IRS Can Collect Delinquent Tax Debt

The IRS has a variety of methods it can use to collect delinquent tax debt. If you don’t voluntarily resolve your tax debt problems you may face IRS levies, wage garnishments, or other IRS enforced collection actions.

Key Insights We Will Discuss:
Ways the IRS can collect delinquent tax debt.
Your options when facing an imminent levy.
How to avoid each type of IRS collection action.

Bank Account Levies
The IRS can levy the entire balance in your bank account up to the amount you owe in back taxes, penalties, and interest. If you owe more than your bank account balance, the whole account can be seized.

Before a bank levy takes place, you’ll receive a Collection Due Process (CDP) notice. If you request a CDP hearing within 30 days, you can negotiate a deal to avoid the bank levy.
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Written by Venar Ayar | Posted in IRS Debt Collection

18 Feb 2020

When Can The IRS Seize Your Assets?

The IRS can generally seize your assets when you fail to pay your tax debt and the IRS has sent you the proper notices in the mail. Even if you owe tax debt and have received these notices, you can still protect assets if you negotiate a resolution to your tax problems.

Key Insights We Will Discuss:

Steps the IRS must take before seizing your assets.
Limitations on what the IRS can seize.
Your options for avoiding an IRS seizure.

The IRS Asset Seizure Process

The IRS needs to do the following things before seizing your assets:

First, the tax must be assessed. This can occur when you file a return or when the IRS sends you a Notice of Deficiency. Once tax is assessed, your account moves to collections.
The IRS will then send you a bill. It will state how much you owe and give you a deadline for sending payment.
Once the deadline passes, you may receive further notices demanding payment. Your balance will increase each month due to late payment penalties and interest.
Finally, the IRS must generally send you a Notice of Intent to Levy and give you 30 days to request a Collection Due Process (CDP) hearing .
If you don’t respond within that 30-day period, the IRS can move forward with the levy and seize your bank account funds, wages, or other assets.
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Written by Venar Ayar | Posted in IRS Seizes Assets

11 Feb 2020

Is There Any Way To Avoid Paying FBAR Penalties?

You may be able to avoid paying FBAR penalties if you qualify for a delinquent FBAR submission or the Streamlined Compliance Procedures. These voluntary disclosure methods eliminate or reduce your tax penalties while getting you into reporting compliance.

Key Insights We Will Discuss:
The qualifications for a delinquent FBAR submission or the Streamlined Procedures.
The benefits of making a voluntary disclosure.
Other options if you don’t qualify for these offshore disclosure options.

Delinquent FBAR Submissions
A delinquent FBAR submission is the simplest way to correct your failure to file FBARs. However, this option is only available if you meet the following conditions:
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Written by Venar Ayar | Posted in FBAR Penalties