Many taxpayers facing the tough year of 2009 may find themselves unable to pay their full taxes in 2010 or unsure about how to resolve the back taxes that they already owe. This is why it’s a pleasure for me to sit down with people like Scott Mason of KROQ to share some free tax help advice to listeners.

Right now we are seeing some real desperate situations where many people can’t afford to hire a tax attorney or Certified Tax Resolution Specialist, which is not a good thing. Many taxpayers think they can negotiate an IRS installment agreement with the IRS themselves. The problem in 90% of these cases is that the taxpayer fails to get the 433D form, which is the formal agreement that the IRS inputs into the computer saying they have an installment agreement. So the next thing you know, your wages are getting garnished with no record of an installment agreement with the IRS.

Don’t be one of these people. There are plenty of tax resolution options that are available to you which will save you from severe IRS penalties and debt. Below are some useful tax help answers to questions that may be haunting taxpayers just like you who are facing the upcoming tax season:

Listen to the full interview for more tax help tips.

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Filing Exceptions for Military Personnel:

Scott: Are there filing exceptions for those deployed in the military?

MR: If they are deployed overseas there are extensions from 60-120 days. They are still US resident citizens and do need to file on time or by the agreed extension dates. The sad thing for many is that they come back to the states, cant’ get employment and are not able to pay their taxes, which will result in IRS penalties.

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How to Avoid IRS Filing Problems:

Scott: What one can do to make sure they don’t have a problem come April 15?

MR: Be organized, have knowledge, budget and be a better money manager. It’s never a bad idea to see a professional to do a tax projection for year end. The rule of thumb is: accelerate deductions and defer income.

For those who are self employed, a good principle to follow is to put away almost 30% of every dollar for FICA, Social Security, and income tax in a special account called a “tax” account and make quarterly payments from that.

If you are a wage earner, make sure you withhold properly. Many claim too many exemptions. As long as you fill out a W4 with 9 exemptions and sign it the IRS will not be alerted to it. If you have over 9 exemptions, then the IRS will be alerted to it so be prepared to back up your exemptions with substantial evidence.

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Reporting Activities Pertaining to Prop 215:

Jim: In regards to reportable activity specifically pertaining to Prop 215. How can I recover the cost of growing medical marijuana. What has to be reported?

MR: Any activity that you engage in whether its legal or illegal or for profit you have to report it. Gambling and prostitution included (this is how they got Al Capone).

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How Far Back Can the IRS Go:

If you haven’t filed your tax returns, the IRS can go back to day one. If you filed, the IRS has 3 years from the filing date to audit you. If you had a 25% under-reporting of income, they can go back 6 years. However, for fraudulent activities such as your failure to disclose a foreign bank account, the IRS can go back for as long as they want. If you are in IRS trouble for failing to disclose a foreign bank account, we have a special division for offshore bank account defense that is here to help you.

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Dealing with Overwhelming IRS Debt:

Paul: Is it possible to just go to jail or do community service instead of paying your taxes if the amount of what you owe is just ridiculous?

MR: You can’t go to jail for owing money but you can go for not filing. Failure to file is a misdemeanor. You may be a good candidate for an Offer in Compromise (OIC). There are solutions to every problem. Forget about having anything else in your name for the rest of your life if you don’t deal with it.

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The TRS Success Rate:

Scott: You have a really high success rate. What do you call success?

MR: We call success a couple of things. Number one, we probably turn away 2 to 3 times as many people as we retain. That’s why we have the highest success rate. The success rate is twofold, one is an offer in compromise success rate and number two and permanent resolution success rates. If they don’t qualify for a “tax debt settlement) which is an Offer in Compromise, we will get them an IRS installment agreement that they can live with and be done with it in a few years. The IRS right now is allowing first year delinquent penalties removed as long as you have been a good boy or girl in the past.

Some final tax help tips: If you do owe money for 2009 and can’t afford to pay it come April 15, 2010, file your returns and send a money order or cashiers check for $10.00. This does two things: #1 it takes the huge 25% failure to file penalty off the table and #2 it creates a computerized record at the IRS showing that you filed on time and you made a good faith effort to pay some of that money you owe. This will keep you out of jail!

You can seek professional tax help from a tax attorney, Certified Tax Resolution Specialist, or CPA from Tax Resolution Services. We are here to help you settle your IRS debt–call us today at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com

More Tax Help, IRS News and Tax Relief Tips:

1. Tax Help For Offshore Account Holders as Swiss Government Seeks to Salvage UBS Agreement
2. Tax Help Options For Overseas Tax Evasion as UBS Pushes For Swiss-US Deal
3. 6 Tips for Hiring a Good Income Tax Attorney or Certified Tax Resolution Specialist
4. Don’t Settle for a Busy Signal if You Need Tax Help: IRS Can Only Service 70% of Taxpayer Phone Calls
5. Tax Help: How to Resolve Your Back Taxes & Prevent Tax Problems If You’re Short on Cash This Season

Tags: Back Taxes, FBAR, foreign bank accounts, Free Tax Consultation, income tax relief, Installment Agreement, Michael Rozbruch, Offer in Compromise, offshore bank accounts, offshore tax evasion defense, Penalty Abatement, tax attorney, tax evasion, tax expert, tax help, tax relief, tax resolution, tax resolution services, Tax Tips

This entry was posted on Tuesday, January 5th, 2010 at 12:04 pm and is filed under Back Taxes, Expert Help From Tax Attorney, IRS Installment Agreements, IRS help, Offers in Compromise, Offshore Tax Settlements, Seeking Professional Tax Help, Tax news and tips, Unfiled Returns - Delinquent Tax Returns, income tax relief, tax help. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.