Tax Resolution Blog
The IRS Solutions’ blog is filled with tax pro solutions and the latest IRS tax news, insights, and information about tax resolution.
Understanding the Difference Between a Levy and a Lien
Knowing the difference between a levy and a lien helps CPAs, Enrolled Agents, and other tax pros guide their clients through the successful resolution of challenging IRS cases. Proper guidance based on a clear understanding of IRS levy vs lien can make the difference between financial stability and continued stress for your clients. What is a Tax Lien? An IRS tax levy is when the IRS actually seizes a taxpayer’s property to satisfy a tax debt. Unlike a lien, which is a claim against the property, a levy means the IRS takes possession of the assets. This can involve seizing bank accounts, garnishing wages, or taking other property
New Wage and Income Transcripts Summary Tool Simplifies Transcript Analysis
In-depth analysis of wage and income transcripts is a critical skill for every tax resolution accountant and anyone preparing taxes. These documents paint a comprehensive picture of a taxpayer’s financial history – but comparing and interpreting them can be a challenge. That’s why IRS Solutions® is introducing the Wage and Income Transcripts Summary Tool, a groundbreaking feature that makes wage and income transcripts analysis faster and more insightful than ever before. Designed for precision and efficiency, this tool will transform the way accountants, enrolled agents, and tax resolution specialists approach the task. By offering a side-by-side presentation of income-related data, including W-2, 1099, and withholding information across multiple years, the
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3 Keys to Year-Round Revenue in Tax Practice Management
As a tax professional you understand that optimizing your tax practice management is essential for achieving consistent, year-round revenue. While tax season is undoubtedly a busy time, it’s crucial to develop strategies that keep your practice thriving throughout the entire year. Maintain steady growth and client satisfaction, no matter the season. Join us as we explore these vital components of managing a successful tax practice, and learn how to maximize your revenue potential, enhance client relationships, and build a sustainable business model that transcends the limitations of traditional tax season. No one would argue—cramming a year’s work into 4 months has its benefits. First of all, it’s nice to start the year with a big wad of cash. It
The Right to Appeal IRS Decisions Just Got Easier
The right to appeal an IRS decision in an independent forum is one of 10 key rights guaranteed to taxpayers under the Taxpayer Bill of Rights. As taxpayers attempt to resolve tax disputes outside of a court setting, the pleas heard by the Office of Appeals amount to no small number. Each year, more than 100,000 taxpayers file appeals. On August 1st, the IRS Office of Appeals began piloting a service that will make things easier, especially for taxpayers who live far from an IRS Appeals Office. What is it? Well, in case you haven’t heard (and your clients are going to love this), taxpayers and their representatives can soon take advantage of a new web-based conference option.
IRS Lien Withdrawals: The IRS Makes it Easier For Taxpayers
Did you know about this benefit for tax delinquent citizens who have been issued federal tax liens? We want to be sure you do because the IRS steps up in favor of taxpayers by easing their burdens with lien withdrawals. If taxpayers do their part, they can benefit by shortening the time between the imposing of stress-inducing liens and withdrawal with a new approach to the federal tax lien process. Oh, and the government also benefits. Tax liens can have a significant impact on a taxpayer’s financial well-being, making it difficult for them to secure loans or sell property. Fortunately, the IRS has made it easier for taxpayers to navigate the process of IRS Lien Withdrawals, providing a more accessible
Conquer Issued Federal Tax Liens With a Certificate of Subordination
When your clients face the burden of an IRS tax lien, obtaining a certificate of subordination can be a powerful tool in their financial recovery. As a CPA, tax professional, or enrolled agent, your knowledge of this essential strategy is invaluable in helping clients regain control of their financial lives. In this informative article, we’ll delve into the intricacies of the certificate of subordination process, providing you with the guidance necessary to effectively conquer issued federal tax liens and give your clients the best chance at a fresh financial start. It won’t come as a surprise to you that when it comes to collecting their money, the IRS doesn’t play around. They mean business and your client’s denial or tossing
The Truth About the Federal Tax Lien
A federal tax lien is the government’s first line of defense against tax delinquencies. When your clients neglect or fail to pay a tax debt, the federal government doesn’t just stand back and take it. It defends its interest by imposing a federal tax lien. The lien represents the government’s legal claim against the taxpayer’s property; including real estate, personal property and financial assets. There are three qualifying features of a federal tax lien. It exists when the IRS: Puts the balance due on the books, i.e. assesses liability Sends a bill explaining what is owed – Notice and Demand for Payment and the taxpayer Neglects or refuses to fully pay the debt – on schedule! The process begins as
Help Clients with IRS National Standards for Allowable Living Expenses
Navigating the complex world of the IRS National Standards for Allowable Living Expenses can be a daunting task for your clients. As a CPA, tax professional, or enrolled agent, your expertise is essential in guiding them through this often-confusing terrain. This comprehensive article will explore the ins and outs of the IRS National Standards for Allowable Living Expenses, providing you with the knowledge and tools necessary to help your clients accurately assess their expenses and align with the IRS’s guidelines. By understanding these critical standards, you’ll be well-equipped to offer invaluable assistance to your clients in their tax resolution journey. Dealing with the IRS is never easy, especially when it comes to determining allowable living expenses. We’ve never known anyone
Working with Offer in Compromise Special Circumstances
Navigating the complexities of the Offer in Compromise process can be challenging for CPAs, tax professionals, and enrolled agents. When dealing with Offer in Compromise Special Circumstances, it becomes even more crucial to be well-versed in the nuances of this tax resolution tool. This article will provide a comprehensive guide to handling Offer in Compromise Special Circumstances, equipping you with the necessary knowledge and strategies to successfully assist your clients in achieving a favorable resolution with the IRS. By mastering these unique situations, you’ll be able to better serve your clients, build trust, and grow your tax resolution practice. A Reminder: Good News for Taxpayers with Exceptional Circumstances An OIC (offer in compromise) has been the life preserver of
3 Benefits of Email Marketing for Tax Professionals
In today’s digital age, staying connected with your clients and potential customers is more important than ever. As a CPA, tax professional, or enrolled agent, one of the most effective ways to maintain this connection is through email marketing. This comprehensive article will explore the numerous advantages of implementing email marketing for tax professionals, revealing how this powerful tool can help grow your business, enhance client relationships, and increase revenue. By understanding the key benefits of email marketing and integrating it into your practice, you can stay ahead of the competition and make a lasting impact in the world of tax resolution services. Sending a newsletter to your clients has several benefits for your tax preparation business. If you’re
The Phone’s Ringing! Is it Really The IRS? Or an IRS Scam?
Is nothing sacred? With all the phone scams these days you would think the IRS would be untouchable. To the contrary, impersonating the IRS becoming more common, leaving taxpayers wondering, “Is it really the IRS?” or is it an IRS scam? These imposters aren’t just stopping with the phone or email. They are actually knocking on doors and conning your clients face to face. How can they determine whether a contact is really the IRS? As a tax preparer, you probably know the IRS initiates most contacts through the US Postal Service. However, under special circumstances, such as an overdue tax bill, they pick up the phone or pay a visit. Before they ring the doorbell, the IRS sends a
Why Do Clients Procrastinate on Filing During Tax Season?
In a little more than a week, tax season will be over. The waves of anxiety will recede and you’ll be left with a few piles to file, paper to shred and nothing but time on your hands for 8 months. Uh, right. What about all those extensions? Oh yeah, those. You know, all the clients who waited, avoided and procrastinated until they were out of time. They buried their heads in the sand like they do every year and now you have six months to get them up to speed with the IRS and their tax obligations. Not such a bad thing—it’s income, right? On the bright side, extensions lighten your workload during the first quarter and allow you
Delinquent Tax Bill: IRS Collections Department Joins Private Agencies
Do your clients owe on delinquent tax bills? They probably do and as others have done for years… they skulk into a corner and ignore calls from the IRS. Oh, and they don’t open their mail either. If they don’t respond it won’t exist, right? Wrong. Denial doesn’t make overdue tax accounts go away. A letter is posted on the IRS website explains why. Check it out. A new letter is being sent to your clients notifying them that theiroverdue account that they’ve been ignoring has been assigned to a private collection agency. (Their tax bills) Background—statutory provisions. The Fixing America’s Surface Transportation (FAST) Act (P.L. 114-94, 12/ 4/2015) added Code Sec. 6306(c) which provides, “notwithstanding any
Why Do Wealthy People Hide Money?
The topic of wealth accumulation and preservation has always been a subject of fascination and debate. One aspect that often captures the public’s attention is the tendency for wealthy individuals to hide money in various ways. We delve into the underlying motivations and strategies behind why the wealthy hide money, shedding light on the complex world of tax planning, asset protection, and wealth management. By examining the reasons and mechanisms used by high-net-worth individuals to maintain and grow their fortunes, we can gain valuable insights into the practices and mindset that drive their financial decision-making, helping tax professionals better understand and serve their affluent clientele. Hide Money? Ah the infamous Swiss bank account…. Do people still hide their wealth?
Letter 5903: Time is Running Out! e-Service Users Take Heed
For CPAs, tax professionals, and enrolled agents, staying up-to-date with the latest IRS correspondence is essential for providing the best possible service to clients. One such crucial communication is the IRS “Letter 5903,” which carries a vital message for e-Service users. As time is of the essence, it is imperative to pay close attention to this notice and act promptly to avoid any potential issues that may arise. If you received a Letter 5903, the IRS is urging all tax professionals who received this letter to act now. How do you revalidate? Online or By Phone You may revalidate your account either online or by telephone. To Validate Online: Step One: Use the secure access authentication process
Prepare for Tax Season — Ready or Not Here it Comes!
As the end of the year approaches, it’s time for CPAs, tax professionals, and enrolled agents to gear up and prepare for tax season, which is just around the corner. Staying ahead of the curve and ensuring a smooth, efficient process for clients is essential for every tax expert. In this comprehensive article, we’ll guide you through the steps to effectively prepare for tax season, from organizing your workload to understanding the latest tax law updates. With our expert tips and best practices, you’ll be well-equipped to tackle the challenges of the upcoming tax season and provide top-notch service to your clients, making this tax season a resounding success. It’s right around the corner! Whether you’re ready for it
Accounting Client Management Software Helps with Customer Service
In today’s fast-paced and competitive business environment, providing exceptional customer service is crucial for CPAs, tax professionals, and enrolled agents looking to retain and grow their client base. One way to achieve this is by leveraging the power of accounting client management software, which streamlines various aspects of client communication, task management, and document organization. In this in-depth article, we will explore the key features and benefits of using accounting client management software, highlighting how it can revolutionize your practice, improve efficiency, and ultimately enhance the overall experience for your valued clients. Don’t miss out on the opportunity to elevate your customer service game and stay ahead in the industry. Customer service is important to success in any business,
Tax Preparers: How to Help Procrastinators
As tax professionals, we often encounter clients who struggle with procrastination, leaving their tax filing responsibilities until the very last minute. While this can create stress and additional workload for both the clients and their tax preparers, there are proven strategies to help tax procrastinators effectively manage their obligations and minimize the impact of last-minute filings. Guide tax procrastinators toward better planning and organization, ultimately ensuring a smoother tax season for all parties involved. Discover how to turn procrastination into action and provide exceptional support to clients in need of a timely tax filing solution. Wouldn’t it be wonderful if procrastinators put Call Tax Preparer on the top of their T0-Do lists after the 1st of the year? Even
Resources for Tax Professionals: 3 Ways to Prep Clients for Tax Season
Helping clients gear up for tax preparation not only makes things easier on them, but also makes things go smoother on your end. The process begins long before December 31st. The sooner you begin educating your clients, the better—and it doesn’t stop there. Along with education comes motivation. Tax preparation is something many people avoid. What they don’t realize is ongoing organization will make things easier in the long run. Here are three building blocks for a (pre) tax preparation strategy. Advise clients to put a system in place beginning with these simple steps. Open Your Mail This might sound sarcastic, and perhaps it is just a little bit so, but truth be told, more people than
Types of Tax Liens: Federal Tax vs. Property
As a CPA, tax professional, or enrolled agent, understanding the different types of tax liens is crucial when assisting clients with tax resolution matters. In this informative article, we’ll provide a thorough examination of the two primary types of tax liens: federal tax liens and property tax liens. By gaining a comprehensive understanding of these critical distinctions, you’ll be better equipped to guide your clients through the complexities of tax resolution and offer tailored solutions that suit their unique circumstances. Let’s dive into the world of tax liens and explore the nuances of federal tax liens versus property tax liens, empowering you with the knowledge and expertise to effectively navigate and resolve tax-related issues for your clients. Federal Tax