Got a beef with the IRS? Want to fight the penalty they assessed? Then you need to rely on “authority” to come out a winner. I explained this in an article last month titled “Arguing with the IRS: You Need Tax Authority (Part 1)". In this issue I’ll explain the role of the courts when you take on Uncle Sam, and how they can help you beat the IRS. If you feel you’ve … [Read more...]
Audits
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How to win a dispute with the IRS (Part 1)
The IRS is not always right. And when the IRS wants you to pay taxes you really don’t owe, or tries to assess a penalty you feel is undeserved, you don’t have to cave. You can fight. But to win a dispute with the IRS, you need to base your arguments on “substantial authority.” There are three types of substantial authority you can call upon to come out a winner: … [Read more...]
Watch out if you keep bad tax records!
This is the story of Nathan E. Lang. And it doesn’t have a happy ending. When it came time to file his taxes, Mr. Lang claimed $16,327 as employee expenses and $17,875 in proprietor expenses on Schedule C. The IRS audited him and didn’t allow him to deduct a single penny. In all, Mr. Lang lost a total of $33,226 in tax deductions and after taking his case to court and … [Read more...]
How to survive an employee classification audit
Hiring independent contractors instead of W-2 employees can save you a lot of money. How? By letting you avoid paying Social Security and Medicare taxes, state unemployment compensation insurance, workers’ compensation insurance, and more. But be careful! If the IRS conducts an employee classification audit and finds that your independent contractors are really … [Read more...]
Warning! The IRS is using private debt collectors
If you owe back taxes and you have not heard from the IRS in a while, that could change. Under a new law, the IRS must turn over certain delinquent tax debts to private collection agencies. And you know that those agencies know how to turn up the heat! Want to learn how to avoid dealing with a collection agency and protect all your rights? Don’t miss my new article … [Read more...]