Call To Action: Tax Professionals Wanted With Client Tax Stories And Tax Penalties

Call To Action: Tax Professionals Wanted With Client Tax Stories And Tax Penalties

TaxConnections is calling out to tax professional members who will tell real-life stories of clients impacted by the changes in tax laws, tax increases and tax audits. Our digital tax platform is one where tax experts and taxpayers connect around the world. More than ever, people are affected by tax increases in local, state, federal and international tax jurisdictions. Last November 2019, a blog titled “Shocking Behind The Scenes Story: Tax Professionals Advocating For Taxpayers On 3520-A Penalties” which created hundreds of comments on the topic of taxpayers being treated unfairly. If you read the comments you will discover the unwanted and difficult positions taxpayers were faced with on this issue. The point is we know there are many tax stories in the hands of TaxConnections Members that we need to bring to the attention of taxpayers.

There are tax rules and regulations unknown to taxpayers all over the world. The focus and mission of TaxConnections is bringing tax professionals and taxpayers online working together to bring these issues out in the open. TaxConnections is proud of our talented members of tax accountants and tax lawyers bringing these issues out in the open. If you have a story to tell and you are a TaxConnections Member, we are asking you to tell your story. What we have learned through our digital  tax platform are the tax traps taxpayers fall into unknowingly that become very costly.  We need your tax stories to educate taxpayers on these tax traps and how taxpayers have been treated.

By sharing your stories, we can take the issues to the appropriate government authorities for help for these taxpayers.

Here are some examples of more tax issues from previous posts:

  • Your small business registers for a sales tax in Texas and you receive a letter from some obscure Texas town that says you need to send them a registration fee. Where did this come from?
  • A Florida widower with income marries a retired woman who lived in Utah for nine months. The woman has no income. He has never been to Utah, even to visit. Per Utah tax law he must now pay income tax to Utah on his Florida income if he files a joint tax return.
  • A Delaware resident owes Minnesota income tax for consulting work even though she never steps foot in Minnesota.  This is because the company who the Delaware resident did work for has a physical presence in Minnesota. The same situation is true in California and other states.
  • You decide to retire in Nevada to enjoy the sunshine. You then receive an audit letter from New York that says you need to pay them income tax, even though you no longer live there. They demand credit card statements, your drivers license and more. You provide the information, yet their demands do not go away.
  • California routinely sends out notices to small businesses throughout the country demanding detailed sales transactions for multiple years for any of their California businesses. If you do not reply, you could be in for an audit from this state.
  • States are creating business fees to capture taxes from out-of-state small businesses. This is to get around national laws that protect interstate commerce. This new category of tax is in addition to income taxes and sales/use taxes.

If you are a tax professional and you want higher visibility with a steady stream of prospective clients (and found your professional visibility has been hidden behind other site pay walls), you will want to join and become a TaxConnections Member to ensure the public can find you easily for free.

TaxConnections Calls Out All Tax Professionals To Take Action Now To Help Taxpayers On Our Digital Tax Platform

Become A TaxConnections Member – Raise The Visibility Of Your Tax Expertise

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3 comments on “Call To Action: Tax Professionals Wanted With Client Tax Stories And Tax Penalties

  • I found this site as I am going through an extremely stressful period because I need to pay a hefty penalty for late filing of form 3520 to disclose a foreign gift. I saw posts on the same topic here from 2019 and hope to see if any updates are available on that front.

    I am a foreigner living in the U.S. on the H-1B work visa. My family (non US citizen/ non-green card holders) living abroad wired me money to help fund purchase of my house in 2018. I did my tax return for that year using Turbotax in Feb. 2019, without knowing that I should also file form 3520 together to disclose the gift I received from parents.

    I became aware of this requirement at the end of April and I consulted a few tax lawyers about the situation and see what my options are, knowing that the 4/15 deadline is past. Tax lawyers I consulted told me just to mail in the form 3520 without filing any amended returns because it’s only a disclosure form and I have already filed my regular 1040 tax return before the deadline so I should be fine. I mailed in the form with a cover letter in early May.

    Nothing had happen during the rest of 2019 and the majority of 2020…until on 12/10/2020, I received a horrible notice from IRS saying that I need to pay a penalty of $90K because I was late filing of form 3520. Firstly, how could IRS assume any ordinary taxpayers have knowledge of this specific reporting requirements? Secondly, I tried my best to comply with this requirement by sending the form as soon as I became aware of it. There is no mention of it on any paid Turbotax copy and no first time abatement is allowed on this penalty. Thirdly, this is a reporting form which does not even incur any tax implication.

    I felt extremely desperate and have been in panic mood for the past couple days. It was somewhat relief to see similar posts gaining traction on this site. I truly want to see what my options are because not many tax attorneys are even aware of this. Hope to get some help from the professionals in this community! Please help!

    • TaxConnections Admin

      Let me put this out to the community of our members so you can see your best options for getting through this situation. Many taxpayers have founds themselves caught in this nightmare.

      • Thanks so much! Really appreciate the help. I will be closely monitoring this site and I am so glad to find this community here

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