October 28, 2024 • 48 mins
Owe the IRS? IRS debt reduction, settlement, what are you options to settle IRS debt. Whether you are a Trucker/Owner Operator, Self Employed, or just owing the IRS this is the program to discuss all options to settle IRS Debt, Non collectible, Iffer in Compromise, Partial Pay Installment agreement or full payment plans. Get the information you need to settle your IRS tax debt. File forms 656, 433A, 433B, 433D to solve your IRS debt.
Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).
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Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).
Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
Become a supporter of this podcast: https://www.spreaker.com/podcast/tax-talk-4-u--6333550/support.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicitor implies shall be extended to W FOURCY Radio
or its employees are affiliates. Any questions or comments should
be directed to those show hosts. Thank you for choosing
(00:21):
W FOURCY Radio.
Speaker 2 (00:28):
Barry G.
Speaker 3 (00:28):
Fowler EA brings you tax Talk for you right here
on W four CY Radio and Talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:59):
Barry G.
Speaker 4 (01:00):
Hour.
Speaker 5 (01:03):
Hey, welcome to Tax Talk for You. Is a great
way to start out Monday morning. Just got back from
speaking at Truck to Success seminar for truckers, especially those
getting out from bing. W two drivers to going out
and owner operator. You can see O I DA under
fiftieth anniversary. I got this real nice, real nice hat.
(01:25):
Really enjoyed it. So welcome to all of our truckers
out there. We're gonna be talking today. Probably one of
the worst subjects that we have heading into holiday season
and everything is owing the irs.
Speaker 4 (01:43):
Now, can you just imagine how.
Speaker 5 (01:47):
Life can be when you actually have tax debt that
the I r S is trying to collect. I mean,
owning the I r S money is stressful, it's frightening.
I mean, you get all these and demands for payments,
you get reminders consistently of what you owe.
Speaker 4 (02:10):
The threat.
Speaker 5 (02:12):
Of levees, the threat of leans, wage garnishments, or you know,
just taking the money out of your account when you
don't expect it or you just got paid. Now, what
can be worse than that? I mean, there's really not
much worse than having the IRS take every dime that
(02:35):
you had in your bank account when you least expected.
I know, they sent you the notice and you've ignored it,
or maybe you didn't open it, or maybe it's been
months since they sent you that notice and they didn't
take any action, and all of a sudden, they take
it out of the blue because now they can because
they sent you that final notice of intent to levy,
and now they.
Speaker 4 (02:55):
Can levy that bank account. Yeah, we're coming up.
Speaker 5 (02:58):
You know, at the first of the month, and all
of a sudden, you got paid and you needed to
pay your rent, you needed to pay your mortgage, you
need to make your car payment, utility bills, you name it.
You've got to pay the groceries, and now there's nothing
in there. Your account was frozen that the bank took
everything out of there to pay it to that god
(03:22):
awful IRS. I mean, you know, it is true. Internal
Revenue Service has lots of power that I consider it
to be one of the most powerful collection agencies in
the world. You know, this country survives off tax dollars
collected from every single American and you're no different. They're
(03:43):
going to come after you and collect the money that
you owe, and a lot of times it's just to
get your attention. So now you're going to pay attention
to the dollars that you owe the IRS, and you're
going to pay attention to what's happening in your bank account.
Maybe that'll may you pick up the phone and call
the I R S. Or maybe they'll pick up the
(04:03):
phone and call our sponsor, Taxation Solutions, tax Relief and
get our attention on helping you stop the IRS from
these collections. And then what can I do? What can
you do? Once you have this money? Due to the
(04:24):
I R S you do have options, and not every
option is exactly Hey, full pay, of course, if you
full pay it and you've got the awarewithal to do it,
they will gladly take every dime you have to pay
your tax debt. Gladly. I mean they're gonna be happy.
(04:47):
You call them up, you dial their phone number and
they say, hey, how much do you have? Okay, give
it to us. You can go online and go to
IRS dot gov payments and pay the full amount in
or you can send them at chet. They'll gladly take
everything you got. They'll gladly take whatever you're going to
(05:08):
give them. If you tell them you've got five thousand,
ten thousand in your bank, hey send it to us.
That's what they're going to want. They can offer to
put you on a payment plan. Hey, if you own
ten twenty fifty thousand, they'll set you up on a
payment plan to full pay and allow you to pay
(05:30):
it over the time left in the statue of limitations.
So the statue of limitations from when you file and
accepted the return is ten years. Once ten years is there,
that debt will go away. So if you made it
ten years, all that debt will go away. So the
couple of things here. So when you own the IRS,
(05:52):
the first thing the IRS is going to want to
make sure you do is not going to be incurring
additional tax debt going forward.
Speaker 4 (06:00):
All right, well that was interesting.
Speaker 5 (06:03):
So obviously we were having internet problems in I think
we're back so well, like I said, the first thing
the IRS is going to want you to do is
make sure you're not incurring any more tax DAK. So
they're going to be looking at estimated tax payments and
making sure you're making them for twenty twenty four. So
(06:25):
those when you're filing. After you file your taxes, you've
got to make sure you catch up with them. If
you're working on doing some kind of resolution with the IRS,
are going to want you to catch up with all
the estimated tax payments for the years so that you're
not incurring.
Speaker 4 (06:40):
Additional tax debt.
Speaker 5 (06:41):
Those estimated tax payments are made usually April fifteenth, June fifteenth,
September fifteenth, and January fifteenth. Don't seem like quarters true quarters,
but they're the IRS quarters that.
Speaker 4 (06:54):
They work with.
Speaker 5 (06:56):
So you always want to make sure you're making those
estimated tax payments. Now as you're working through this with
the IRS and you've made those estimated tax payments or
you've caught them up, the IRS is going to be
glad to work with you to set you up on
a payment plan. So the first payment plan they're going
(07:16):
to offer.
Speaker 4 (07:17):
You is that full pay, So you're going to.
Speaker 5 (07:21):
Be able to pay the full amount to the IRS
over a period of time, so they can run as
long as about eighty four months. They'll set it up
to be direct debit, so that every single month, on
whatever day of the month.
Speaker 4 (07:36):
You choose, they will.
Speaker 5 (07:37):
Start processing payments for you, and they prefer it to
be direct debit. It's if you're doing this yourself and
you can full pay again, you can go to IRS
dot gov payments and set up that payment plan, and
like I said, that payment plan is going to be
absolutely a full pay for you and you'll continue.
Speaker 4 (08:01):
To pay interest in any penalties.
Speaker 5 (08:04):
That they can continue to accrue while you're on this
payment plan.
Speaker 4 (08:09):
So interest these days isn't cheap.
Speaker 5 (08:12):
As you know, interest rates have gone up, so have
the IRS interest rates, So you will continue to pay
on that debt and continue to accumulate interest as you go.
If you're trying to set up the payment plan, you
do it over the phone, it's going to be two
hundred and twenty five dollars fee. If you go to
(08:35):
the IRS dot gov, it's only going to be one
hundred and thirty dollars fee, and then you know you
can also if you're going to come into money, you
can also set it up on one hundred and eighty
day full pay and then after one hundred and eighty
days basically half a year, you can pay them off
or you can actually set them up on a payment
(08:56):
plan at that point too. So they give you a
few options out there to get them as much money
as you possibly can.
Speaker 4 (09:03):
And that's what their goal is again, is.
Speaker 5 (09:05):
To get as much money to the IRS as possible
through whichever means the IRS has. Now, if you are
low income and setting this up, you can also get
the low income fee of forty three dollars.
Speaker 4 (09:27):
And so the IRS will set you up on that
as well.
Speaker 5 (09:31):
Now, there are a lot of other options out there
for you, and you can explore those options. And we're
going to explore those options throughout this program on how
you can actually set this up to maybe pay less
than what you owe and how are you going to
go about doing that for you and within the program
(09:53):
of the IRS. We're going to take a quick break
and then we're going to talk about partial pay installment
agreements right after this.
Speaker 3 (10:01):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you.
Speaker 2 (10:13):
If you owe the.
Speaker 3 (10:14):
IRS or are going through an IRS audit, don't go
at it alone. Call Taxation Solutions tax Relief at eight
eight eight nine three zero one zero one six. We
are your solution for IRS debts, audits, back taxes, garnishments,
leans and levees. Whether you're an individual or business, you
(10:37):
need a solution and a strong, aggressive tax resolution. Don't
let the IRS walk all over you. Stop the IRS now.
Call eight eight eight nine three zero one zero one
six or go to Taxationsolutions dot net now for a
free no obligation consultation. Let's get back to tax stock
(11:03):
for you with more tax stock once again.
Speaker 2 (11:06):
Here's your host, Barry G. Foller.
Speaker 4 (11:12):
Hey, welcome back.
Speaker 5 (11:13):
We got a quick message here and question online and
one of our trucking friends, which is fantastic from the
truck show. When we were talking about trucker bookkeeping trucker taxes,
we also talked about business entities and how business entities
will could save you money on your taxes and how
(11:35):
we use them to save money on taxes as well.
And then we talk about least purchase of your truck.
So you know, we talk about many different things when
we're at these truck shows. One of the things we
kind of hustled through because we were unlimited time at
the truck a Success show was one of our bonus
(11:56):
programs that we run in there is fighting the IRS
and saving tax money.
Speaker 4 (12:03):
And the question was is.
Speaker 5 (12:06):
Does the IRS offer this fresh Start program? Well, we
always hear this on the radio, and that is a
program the IRS offers to you, the taxpayer that owes
the IRS money. Is the fresh start, or as I
like to put it, is the fresh money program. Fresh
money into the IRS because it's freshly from you, the
(12:28):
person that owes it hasn't paid it over a year
to ten whatever the number of years that you've been
owing the IRS, and it's fresh money to them. There's
all different facets of that program. It's not a program
that any of the resolution companies set up. It's actually
a program within the IRS to collect money as fast
(12:49):
as possible.
Speaker 4 (12:50):
Now, it does offer many options.
Speaker 5 (12:53):
Of course, the full pay, partial pay that we're going
to talk about right now, offer and compromise non collect
collective status, and then you know the two different types
of offers and compromise out.
Speaker 4 (13:05):
There as well.
Speaker 5 (13:06):
That's that's available to you as a taxpayer that owes
the i r S money. But getting into partial pay
installment agreements, this is when you make monthly payments until
the tax liability expires without paying the whole balance, and
this results in the i r S settling the remaining
(13:29):
amount or writing it off as the.
Speaker 4 (13:32):
C sets come in. So what's a C set?
Speaker 5 (13:34):
C set is the statute of limitations that the I
r S has to collect your tax liability. Now, if
you're listening to this program and you go to Taxation
Solutions dot net and you put in for the free
consultation or you give us the phone phone call here
at eight A eight nine three zero one zero one six.
(13:58):
You know, we will sit down and do a tax analysis. Now,
a tax analysis is going to tell you several things. One,
we pulled the whole record that the IRS has on you,
So it tells us all the letters that were sent out,
all the collection activity that was done, how much you owe,
what tax returns you hadn't filed, how you filed those returns.
(14:20):
We're going to get more detailed records of every collection
activity they've taken against you so we can determine the
right program. And once we've done that, we also do
a complete analysis of every tax year that you owe.
Speaker 4 (14:35):
For now, if you.
Speaker 5 (14:37):
File timely your twenty fourteen tax debt, that would still
have about one more year before it would fall off.
So if you filed April fifteenth or before, you know,
we're less than six eight months away. If you filed
twenty thirteen taxes and you filed at the end of
(14:57):
in October, that debt would falling off this year. So
it's ten years from when you file. And so we
look at that. What are the c sets, what is
the statute of limitation on all of your tax debt?
And then we develop a program for you now when
we're developing that program. So we developed that program to
(15:20):
look at every one of those c sets. So, how
are we going to save you money? What's going to
be the most cost effective way for you to get
rid of the tax debt and be able to control
the irs and their collections and prevent them from getting
(15:41):
dollars that you shouldn't have to pay, or maybe prevent
you from paying those dollars. So we took a client
and they owed about thirty two thousand, and that tax
debt was going to expire in about five years, some
of it may be falling off in four years and stuff.
We put them on a payment plan that they could
(16:03):
afford of about two hundred dollars a month, and you know,
they approve that plan, that's going to be about twelve thousand.
So now you can see the right irs will write
off the other twenty thousand at the end of those
five years. We've taken other people who we've looked at
(16:23):
their debture limitations and the SEA SAIDs and said, hey,
you have debt falling off at a year, some debt
falling off in two years, three years, and then you've
got debt that's going to be out there for ten
you can only afford to pay, let's say one hundred
dollars a month. We prove that to the IRS and
puts you on a payment plan of one hundred dollars
(16:45):
that perst year. We get debt fallen off the second
year more, third year even more, and it puts a
lot of savings in your pocket today because that debt
falls off. Now the other debt that's going to be
out there for current debt for eight, nine, ten years. Yes,
you're probably going to pay it all off over that
(17:07):
period of time, even at one hundred dollars a month,
depending on how much you owe. But it becomes a
real nice program because it's going to save you money
without going through the huge hassle of going through let's
say the offering compromise. And if you don't stay in
(17:32):
compliance with the IRS, maybe you don't file on time,
maybe you incurb more debt. One of the issues with
the offering compromise is that once your nining compliance, all
the debt comes flown back and the statute of limitations
would not hold.
Speaker 4 (17:49):
So your statute of limitations will pick.
Speaker 5 (17:51):
Up again once you fail to file everything timely. So
sometimes this is the the right program based on your
compliance history and based on how you can stay in
compliance as well throughout the term of this partial pay
installment agreement.
Speaker 4 (18:13):
So you know, we have to look at everything because.
Speaker 5 (18:17):
Let's just say you have a tough time staying in compliments.
You know, it could be cash flow, it could be
just filing. It could be that you can't keep up
with the bookkeeping and you don't hire somebody to do
the bookkeeping for you. Those things can become issues for
you as you go on. So if we set up
(18:42):
the partial pay installment agreement and some of the debt
goes off in the first twelve months and you're good
with compliance, and maybe some of the debt goes off
in the second twelve months, and then you fail, your
statute of limitations did not stop.
Speaker 4 (19:00):
It kept running.
Speaker 5 (19:01):
So let's say you failed during that second year and
we work to put you back into a partial pay
installment agreement. While we're working on it, maybe that statute
of limitations runs out on that second year and you've
still accomplished a huge savings by that debt being written
(19:24):
off by the IRS, and maybe at that point we
need to look at and offering compromise and you decide
to work with us to stay in compliance as you
go continually going forward, because sometimes that's really the hard
part of it, staying in compliance. And when we talk
(19:46):
about staying in compliance, it's multifaceted. Staying in compliance is
a filing on time.
Speaker 4 (19:54):
Okay, So you.
Speaker 5 (19:55):
Do get the option to file that extension, but you
got to file on time, got to make your estimated
tax payments timely, and then if it's projected where you're
going to owe when you file, making sure you pay
the rest of the balance due hon or before April
fifteenth of that year. Just because you file an extension
(20:17):
does not give you an extension of time to file,
I mean an extension of time to pay. It gives
you only an extension of time to file. Again, let's
repeat that. It does not give you an extension of
time to pay. It only gives you an extension of
time to file when you file that extension. So keep
(20:37):
those things in mind, and that's where the IRS is
going to look at compliance. Now.
Speaker 4 (20:44):
It may take them a little bit of time.
Speaker 5 (20:46):
So the good news is, hey, you may have fallen
out a compliance, but that taxtent may fall off within
the next six months of filing.
Speaker 4 (20:56):
So we go to file your two.
Speaker 5 (20:58):
Thousand, twenty four tax return on April of twenty twenty five,
but within six months, another years of debt's going to
fall off, So we file the extension and if you're
not in compliance, that.
Speaker 4 (21:14):
Debt would fall off.
Speaker 5 (21:15):
When you're in that partial pay installment agreement and you've
accomplished eliminating some debt and then we file the tax return,
you added more debt. You fall out a compliance, you
lose the partial pay installment agreement.
Speaker 4 (21:31):
Maybe we come back and do it again, but it.
Speaker 5 (21:36):
Gets harder and harder the more times you fall out
a compliance to get them to agree to this same
kind of partial pay installment agreement. So you need you
need to really work harder if we were to put
you in this or you get yourself into it to
stay in compliance. Now we're going to take a quick break,
(21:57):
and when we come back, we're gonna start talking about
current only non collectible status and how you could use
that to your advantage as well.
Speaker 3 (22:06):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Bower will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family. Trucker
Tax Tools handles all your bookkeeping and taxes.
Speaker 2 (22:26):
No matter what level trucker you are. Life on the
road can be.
Speaker 3 (22:29):
Taxing, but that doesn't mean that your wallet or time
with your family should suffer. Trucker Tax Tools makes your
life run smoothly. Go to Trucker tax Tools dot com
for a free guide that will give you the tools
to never worry about your taxes again. Call Trucker Tax
Tools eight seven seven nine sixty six two four seven
(22:52):
seven or go to Trucker tax Tools dot com now
and let the experts keep you trucking. Let's get back
to tax stock for you with more tax stock once again.
Speaker 2 (23:07):
Here's your host, Marry G. Fallum, Hey, welcome back.
Speaker 5 (23:14):
I really love getting text messages and people asking if
you want to join the show. You're more than happy
to call in. We'll put you on there and talk
to you and answer your questions as we go as well.
But I had Dale out in Atlanta, Georgia asking about
does this apply to business and business taxes? Businesses and
(23:36):
business taxes.
Speaker 4 (23:37):
Can be handled with a payment plan.
Speaker 5 (23:40):
You can also handle them sometimes and offer a compromise.
Speaker 4 (23:44):
We'll get into some of that as we go.
Speaker 5 (23:47):
One thing about business taxes a lot of times, unless
you're an eleven twenty is see court. The taxes you
are going to be owned are predominantly payroll taxes, and
with payroll taxes they have a whole different collection philosophy because.
Speaker 4 (24:06):
That was not your money.
Speaker 5 (24:09):
Part of that money is considered to be trust fund taxes,
meaning money you pulled out of your employees payroll and
you failed to pay that in, and part of it
is the company taxes, so they have completely different enforcement
collections when they're dealing with payroll tax issues and so
(24:33):
not knowing exactly what your issue is with that, feel
free to give our office the call and talk to
us and we'll kind of talk about, you know, what
we can do to help you with your business taxes
if that's what you're owing, and how we can possibly
save you money going through that.
Speaker 4 (24:54):
We've had very good.
Speaker 5 (24:58):
Results in we're with companies, So just give us a
call at eight eight to eight nine three zero one
zero one six, and you know we'll figure out a
way that how we can help you resolve that issue
now and talking about you know, non collectible. So what
does non collectible mean. It means the IRS deems that
(25:23):
you don't have the money whatsoever to make any payments
to the I R S and they will put you
in the status of currently non collectible. This is a
hardship status and it's a lifeline for individuals, so proprietorships, partnerships,
(25:43):
limited liability companies, escorps that are unable to afford you know,
the tax bill. So yes, it is available to everybody. Again,
remember payroll is a lot different in these things too.
Most partnerships and LLCs, depending on how you your tax
it's going to fall to your personal tax return for
(26:03):
those taxes, even if they're coming after and saying hey,
we're going to collect against the company as well. But
currently non collectible or C and C as we do,
is a necessity to have out there as a step
for those struggling with financial distress. It's going to give
(26:28):
you a temporary cessation of collections. Now, this could stay
permanent for you, but the IRS considers this to be temporary.
So it's going to hold out there for about two
years and then the IRS may come back to you
and ask you to show your income again, or the
(26:49):
IRS is going to look at your current tax return
and c that, Hey, you've been here and now your
income is up here, so your income increase, so therefore
they feel like you can then pay them. Or you
don't file timely, or you fall out of compliance estimated
(27:13):
tax payments, not filing, not making the payment on or
before April fifteen, all things that can result in you
getting kicked out of.
Speaker 4 (27:26):
Non collectible status.
Speaker 5 (27:29):
So you know, if you're wrestling with making ends meet,
you don't have a lot of income coming in. Maybe
you're just on Social Security or maybe just on teacher
retirement or some kind of other pension plan, whatever it
is that you're on, and you don't have the ability
to make ends meet according to the IRS, not according
(27:51):
to you. All the time, the IRS will offer the
non collectible status to you, so you know you can
take advantage of that. And especially again if we're close
to C SAIDs. As C SAIDs come in, there is
no stopping of Statute of limitations from running. So as
time goes by, debt will fall off based on the
(28:15):
Statute of limitations.
Speaker 4 (28:17):
So you know, we can use that.
Speaker 5 (28:21):
As a gap or to bridge getting some of the
tax debt to go away. And if the income's not changing,
it's a beautiful thing. If your income's going to change,
then maybe we default back to that partial pay installment
an agreement, or maybe we default to what we're going
to talk about right now, offers and compromise. So we
(28:45):
all hear this offering compromise settling your tax debt some
of these places you've talked about penalty and pennies on
the dollar. Everybody qualifies, No, everybody does not qualify for
offering compromise.
Speaker 4 (29:00):
But let's first what is an offering compromise?
Speaker 5 (29:04):
That's when you file with the I R S Form
sixty five six with the four thirty three A and
four thirty three B.
Speaker 4 (29:13):
If you're in.
Speaker 5 (29:13):
Business and you know, basically you're asking the I R
S to settle for some amount of money on all
the tax that that you owe the I R S. Now,
does the accept these right off the bat? And know
(29:36):
these are going to take about a year the process. Now,
sometimes it's ten months. I've had them go eighteen months.
Sometimes it's faster. It all depends on you know, the
I R S. And that's a waiting game at that point. Now,
The one thing to remember, statute of limitations stop as
(29:57):
soon as you file that offering compromise, and it will
stay in limbo throughout the whole offering compromise process. So
if your offering compromises accept it, it will continue to
hold the statute of limitations for a full five years
(30:18):
after the offers accept it. So that could be you know,
six years, could be seven years for them to process
the offer, and then the follow in five years from there. Now,
what you're going to offer them is basically what you
can afford to pay the irs. Now there's stringe rules
(30:41):
and regulations to this offer and compromise. It isn't hey,
this is what I have expenses going out and this
is my income coming in. It is everything. So they're
going to look at what you make, what assets you have, stocks, bonds, house,
(31:04):
the equity in your house.
Speaker 4 (31:07):
They're going to be looking at everything and everything you owned. Now,
if in the last year or two you sold.
Speaker 5 (31:17):
Off a car, they're going to know it. They're going
to ask where this was, where'd the money go? If
you gave a car to one of your children, they're
going to want to know. They're going to ask the
questions you have multiple cars that are titled in your name,
They're going to ask about it. You have equity in them.
They're going to be looking for that equity that's in that.
(31:38):
They're going to be looking at what you did. If
you pulled money out of your four to oh one
k ira, where did that money go. That's considered to
be possibly a dissipated asset, and they're going to be
looking for that money unless we can show that you
had to use it for living expenses or major repairs.
Speaker 4 (31:55):
What did you do with that money?
Speaker 5 (32:00):
You know a lot of our friends and people we
have helped over the years, and we got into the
trucking business that have been owner operators and truckers out
there because they didn't make estimated tax payments and then
you didn't file, So why did you end up owing
this money? And they look at that as well. Those
are the questions they ask us when we're representing you.
The IRS is going to check and analyze your tax returns,
(32:25):
your current financial records and statements to determine whether or
not you're going to qualify for this offering compromise. They're
going to be looking at your bank statements. They get
the last three to six months of bank statements, and
they're looking to make sure that you know when we
file the four thirty threes. The four thirty threes is
(32:46):
the financial roadmap to everything you have and everything you own.
Everything's got to be on there. So you got to remember,
this is the largest, biggest, baddest collection agency in the world.
And you think they can't find something, they will find it. Now,
the funny story behind this is that the IRS found
(33:09):
assets for a client. We filed an offering compromise for it.
And I'm going to tell you a little bit of
that story and how that worked out for this client
thinking they were hiding assets from the IRS, and how
the IRS found these assets and how it impacted them
(33:30):
when they were going for this settlement and offering compromise.
Speaker 4 (33:32):
And we're going to talk about that.
Speaker 5 (33:34):
Hey, right after this, we're going to take a short
break and we back talking about how the IRS finds
the things you think you hit.
Speaker 4 (33:40):
We were right back after this.
Speaker 3 (33:43):
We have only scratched the surface of today's show. Please
stand by as Barry G. Bauer will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family. Stop
spending time doing paperwork. Go to Trucker tax tools dot
(34:04):
com a solution filled specifically for truckers. Trucker tax tools
dot Com makes your life run smoothly. Let's get back
to tax stock for you with more tax stock once again.
Speaker 2 (34:19):
Here's your host, Barry G. Fallom Hey.
Speaker 5 (34:25):
Right before the short break there, we were talking about
how the IRS checks your records and finds things that
you have. The interesting story we were working with husband
and wife and the husband really wasn't forthcoming with all
the information. Now we go in and ask for all
the detailed information. You fill out a worksheet for us.
(34:47):
We go over this worksheet, we ask for all everything
you owned, so we put the right program together for you.
Wis guy I thought he was smarter than the IRS.
He had a lot property that he owned, but he
never gave it to us and never declared it, thinking
the IRS wasn't going to.
Speaker 4 (35:06):
Worry about it.
Speaker 5 (35:07):
He also transferred property to his son so that he
could try to avoid that being found. Well, the property
he owned free and clear and kind of tried to
disguise it in some of the property records and everything
out there. Well, the IRS does a complete search of everything.
(35:30):
Like I said, sometimes these searches amaze me that they
come back and find cars and vehicles people haven't owned
for three, four five years, but they didn't do anything
with the car. It become salvage vehicle. And people didn't
transfer titles or whatever it may be. And in this case,
(35:51):
they found this huge property that he had. They also
found that he had transferred property to his son within
the last year or two.
Speaker 4 (36:00):
And now the.
Speaker 5 (36:01):
Irs is coming back and saying, hey, you committed fraud
because you didn't declare this on these four thirty threes,
and the taxpayer, our client is responsible because we make
everybody sign there four thirty three declaring this is true
and correct.
Speaker 4 (36:21):
Now we were.
Speaker 5 (36:22):
Able to prevent the fraud charges for them. We got
them into an installment agreement so that they could settle
their tax debt and pay it off, and we actually
got them to pay most of it down by taking
alone against this property so that we could prevent any
charges being against them in this case. So you know,
(36:43):
you've got to make sure that, hey, you're open and
honest and letting us know everything that you've got going on,
because if you don't tell us, we can't protect you.
And that's what our job is when you hire taxation
solutions secretly, it is to protect you and your assets
to the best of our ability. But the only way
(37:03):
we can do it is if you're talking to us
and communicating and telling us these things.
Speaker 4 (37:09):
Now, just because you think.
Speaker 5 (37:14):
You can't afford to pay the IRS or you should
get the settlement because you can't make ends meet. Now,
the IRS has different requirements than you and I do, okay,
and those different requirements are going to be the national standards.
(37:34):
What the IRS allows you to deduct for housing, utilities,
your car, food, all those necessity items they have national
standards for. And you can't exceed deductibility for those national
(37:59):
standards even if your mortgage is.
Speaker 4 (38:03):
Five hundred one.
Speaker 5 (38:03):
Thousand dollars higher than the national standard. Now they need
to increase those standards because of increased interest rates and
everything else to make these standards actually work across the country.
Speaker 4 (38:17):
But it all goes by what state you.
Speaker 5 (38:20):
Live in, what county you live in, and then the
standard is set for where you live.
Speaker 4 (38:27):
And so once you can put.
Speaker 5 (38:29):
Those things in, then we can see, hey, do you
qualify for this standards for an offering compromise are much
more stringently followed than they are for partial pay installment
agreements or non collectible status. So we've got to follow
(38:49):
these national standards pretty strictly. The other problem we come
into is equity in your house. So if you've owned
your house for a period of time, you can see
that your equity may sometimes exceed.
Speaker 4 (39:04):
Your tax debt.
Speaker 5 (39:06):
And then we've got to go after possibly trying to
get a loan on the house or something, or you've
got money and retirement accounts, the IRS is going to
want you to see if you could pull the money
from that retirement account. A lot of retirement accounts out
there don't give you access to it, and we would
(39:26):
need to see that in your retirement plan through your
company to make sure that you cannot access that, and
the IRS is going to want to see that proof.
Then the RS is going to look at what your
offer is. Your offer can't be zero. I mean, we've
(39:47):
done offers for one hundred dollars, We've done them for
one thousand dollars, We've done them for ten twenty thousand.
We've even done offers for one hundred thousand on a million.
Speaker 4 (39:57):
Dollar tax debt.
Speaker 5 (39:59):
We had to look at revamping people's financial situation to
make things work.
Speaker 4 (40:06):
So what do we mean by that? And remember you
got to work.
Speaker 5 (40:09):
With a tax pro when you do this, because if
you're not working with a Taxation Solutions tax Relief and
you're trying to do it on your own, not every
one of these things apply to you. So make sure
you're getting good advice from a tax pro and rolled
agent CPA that does this on a daily basis, like
we do in Taxation Solutions tax Relief. You may need
(40:33):
to go out and buy a newer used car, get
a car payment instead of a car that's fully paid off.
That could be money that you could be paying to
the IRS, but we get it pulled out because now
you have the car payment, so it's like the IRS
paying for that car. Same thing we do sometimes in
the partial pay installment agreements as well. We make sure
(40:56):
you have all your taxes filed, make sure you're making
an estimated tax payments. Make sure if you're a business
and trying to go through an offering compromise, are you're
currently paying all your payroll taxes.
Speaker 4 (41:08):
Making sure those are there.
Speaker 5 (41:10):
You cannot be going through bankruptcy or have an open
bankruptcy out there, and making sure you're making all your
estimated tax payments, not just while the offer is pending,
but continuing on year after year to make sure you're
doing things right and staying in compliance. Now, again, offering
(41:34):
compromise is not right for every situation out there. Everybody's
situation is different. So not only you have to meet
these strict eligibility requirements and the IRS expects you to
use all your available assets, including that equity in the home,
(42:00):
they also expect you to stay in compliance for the
next five years strict compliance with the tax law.
Speaker 4 (42:09):
Now how strict are they?
Speaker 5 (42:14):
Well, had a client come to me four years, eleven
months and failed to file their tax return.
Speaker 4 (42:25):
They had a.
Speaker 5 (42:25):
Beautiful offering compromise. They had six figure tax that settled
for one thousand dollars somewhere in there, and when they
didn't file a tax return on time, didn't file the
extension for the tax return. Because this is what If
(42:45):
he would have filed the extension and made the payment,
he would have been fined.
Speaker 4 (42:49):
He ended up filing.
Speaker 5 (42:51):
Thirty days late forgot to file the extension, owed five
thousand dollars. The IRS returned his offer and compromise with
the full amount of tax, the full statute of limitations
that was left, and all penalties and interests that would
accumulated over those five years came flooding back.
Speaker 4 (43:13):
Now what do you do?
Speaker 5 (43:18):
Can you go back in and file a new offer compromise? Yes,
if you qualify, you can't. This guy happened to improve
his life greatly and was making six figures. He could
now afford to pay this tax debt. He could now
afford to start making payments and had money in the
(43:39):
bank so he could make a large down payment on
this tax as well. Couldn't save them fell out a compliance.
It was an accident, but the IRS doesn't care. They
don't care at all. So we recommend find a great
(44:00):
program and make sure you're staying in compliance after your
offering compromise is done. Okay, call us here at Taxation
Solutions dot net. Taxation Solutions dot net eight eight eight
nine three zero one zero one six. We offer you
a free consultation. We want you to come in and
call us. Let's talk about what's going on in your
(44:22):
life with tax that you have, and let us find
a way to put a solution in place. And we
had some great trucking questions that came in Why we
were at the Truck to Success seminar. Before I go there,
I want to say congratulations to Tom Wheatley. I've been
working with him with OIDA Foundation for now maybe seven
(44:44):
to ten years on the Truck to Success seminar that
we do pretty much every year. I think we missed
the COVID year. We may have done it Zoom and
one other year in there, but it's been a fantastic program.
If you're an owner operator and want to be out there,
check out oh IDEA Owner Operator Independent Drivers Association get
(45:10):
into the Foundation as well. They have some great webinars
for you being in the trucking industry. But they were
talking to me and saying, hey, can you do a
settlement for truckers. Absolutely, if your self employed got yourself
in this debt.
Speaker 4 (45:27):
We work with you as well. Even if you are
employed and maybe you pulled.
Speaker 5 (45:31):
Money out of a retirement account and you weren't aware
of all the taxes that you were going to be doing,
or you got laid off from your job and you
had money that you had on the loan from a
four to oh one K, and then it's considered to
be a distribution and now you owe taxes, we can
work with you and solve those problems and those issues
for you. It could be a partial pay agreement, it
(45:55):
can be a non collectible status, it can be offering compromise.
But let's sit down and talk about it and figure
out what's the right way to go for you. John
over here in right here to Houston area. Yes, if
you give us a call, we potentially could settle that
(46:16):
tax debt. And you know, if you owe ten thousand
dollars or more, we're more than happy and glad to
help you. You look like you're own about seventy five hundred,
your taxes could be more than that.
Speaker 4 (46:28):
Let's talk about it. We might have a way in
programs for you.
Speaker 5 (46:32):
As well to help you set off that tax debt
and resolve your tax issue. And resolving tax issues is
what we do at Taxation Solutions dot net.
Speaker 4 (46:47):
Call us let us get started.
Speaker 5 (46:49):
We started truck or tax Tools because we were out
there solving a lot of self employed issues for owner
operators out there, and we do this for everybody, so
check us out at truckertax tools dot com.
Speaker 4 (47:06):
As well, we.
Speaker 5 (47:07):
Do bookkeeping and taxes for you and we're glad to
help you. Hey, next week, send us an email. Let
us address the questions that you have right here on
tax Talk for You, and let us get down to
the nitty gritty of taxes, bookkeeping as an owner operator,
(47:27):
as a independent contractor, as a self employed So tune
in next week and join us at tax Talk for You.
Thanks for tuning in, well, continue this conversation next week.
Speaker 3 (47:37):
Thanksgetting Are you an individual or business that wants to
understand taxes and how they affect you? Are you looking
for specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some releave?
(48:00):
Then you need Tax Talk for You, hosted by tax
and Shrucker expert Barry G.
Speaker 2 (48:06):
Fowler EA.
Speaker 3 (48:08):
Tune in ten am Eastern Time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax TALKFORU
dot com. See you next week at W four cy
dot com.
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicitor implies shall be extended to W FOURCY Radio
or its employees are affiliates. Any questions or comments should
be directed to those show hosts. Thank you for choosing
(00:21):
W FOURCY Radio.
Speaker 2 (00:28):
Barry G.
Speaker 3 (00:28):
Fowler EA brings you tax Talk for you right here
on W four CY Radio and Talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:59):
Barry G.
Speaker 4 (01:00):
Hour.
Speaker 5 (01:03):
Hey, welcome to Tax Talk for You. Is a great
way to start out Monday morning. Just got back from
speaking at Truck to Success seminar for truckers, especially those
getting out from bing. W two drivers to going out
and owner operator. You can see O I DA under
fiftieth anniversary. I got this real nice, real nice hat.
(01:25):
Really enjoyed it. So welcome to all of our truckers
out there. We're gonna be talking today. Probably one of
the worst subjects that we have heading into holiday season
and everything is owing the irs.
Speaker 4 (01:43):
Now, can you just imagine how.
Speaker 5 (01:47):
Life can be when you actually have tax debt that
the I r S is trying to collect. I mean,
owning the I r S money is stressful, it's frightening.
I mean, you get all these and demands for payments,
you get reminders consistently of what you owe.
Speaker 4 (02:10):
The threat.
Speaker 5 (02:12):
Of levees, the threat of leans, wage garnishments, or you know,
just taking the money out of your account when you
don't expect it or you just got paid. Now, what
can be worse than that? I mean, there's really not
much worse than having the IRS take every dime that
(02:35):
you had in your bank account when you least expected.
I know, they sent you the notice and you've ignored it,
or maybe you didn't open it, or maybe it's been
months since they sent you that notice and they didn't
take any action, and all of a sudden, they take
it out of the blue because now they can because
they sent you that final notice of intent to levy,
and now they.
Speaker 4 (02:55):
Can levy that bank account. Yeah, we're coming up.
Speaker 5 (02:58):
You know, at the first of the month, and all
of a sudden, you got paid and you needed to
pay your rent, you needed to pay your mortgage, you
need to make your car payment, utility bills, you name it.
You've got to pay the groceries, and now there's nothing
in there. Your account was frozen that the bank took
everything out of there to pay it to that god
(03:22):
awful IRS. I mean, you know, it is true. Internal
Revenue Service has lots of power that I consider it
to be one of the most powerful collection agencies in
the world. You know, this country survives off tax dollars
collected from every single American and you're no different. They're
(03:43):
going to come after you and collect the money that
you owe, and a lot of times it's just to
get your attention. So now you're going to pay attention
to the dollars that you owe the IRS, and you're
going to pay attention to what's happening in your bank account.
Maybe that'll may you pick up the phone and call
the I R S. Or maybe they'll pick up the
(04:03):
phone and call our sponsor, Taxation Solutions, tax Relief and
get our attention on helping you stop the IRS from
these collections. And then what can I do? What can
you do? Once you have this money? Due to the
(04:24):
I R S you do have options, and not every
option is exactly Hey, full pay, of course, if you
full pay it and you've got the awarewithal to do it,
they will gladly take every dime you have to pay
your tax debt. Gladly. I mean they're gonna be happy.
(04:47):
You call them up, you dial their phone number and
they say, hey, how much do you have? Okay, give
it to us. You can go online and go to
IRS dot gov payments and pay the full amount in
or you can send them at chet. They'll gladly take
everything you got. They'll gladly take whatever you're going to
(05:08):
give them. If you tell them you've got five thousand,
ten thousand in your bank, hey send it to us.
That's what they're going to want. They can offer to
put you on a payment plan. Hey, if you own
ten twenty fifty thousand, they'll set you up on a
payment plan to full pay and allow you to pay
(05:30):
it over the time left in the statue of limitations.
So the statue of limitations from when you file and
accepted the return is ten years. Once ten years is there,
that debt will go away. So if you made it
ten years, all that debt will go away. So the
couple of things here. So when you own the IRS,
(05:52):
the first thing the IRS is going to want to
make sure you do is not going to be incurring
additional tax debt going forward.
Speaker 4 (06:00):
All right, well that was interesting.
Speaker 5 (06:03):
So obviously we were having internet problems in I think
we're back so well, like I said, the first thing
the IRS is going to want you to do is
make sure you're not incurring any more tax DAK. So
they're going to be looking at estimated tax payments and
making sure you're making them for twenty twenty four. So
(06:25):
those when you're filing. After you file your taxes, you've
got to make sure you catch up with them. If
you're working on doing some kind of resolution with the IRS,
are going to want you to catch up with all
the estimated tax payments for the years so that you're
not incurring.
Speaker 4 (06:40):
Additional tax debt.
Speaker 5 (06:41):
Those estimated tax payments are made usually April fifteenth, June fifteenth,
September fifteenth, and January fifteenth. Don't seem like quarters true quarters,
but they're the IRS quarters that.
Speaker 4 (06:54):
They work with.
Speaker 5 (06:56):
So you always want to make sure you're making those
estimated tax payments. Now as you're working through this with
the IRS and you've made those estimated tax payments or
you've caught them up, the IRS is going to be
glad to work with you to set you up on
a payment plan. So the first payment plan they're going
(07:16):
to offer.
Speaker 4 (07:17):
You is that full pay, So you're going to.
Speaker 5 (07:21):
Be able to pay the full amount to the IRS
over a period of time, so they can run as
long as about eighty four months. They'll set it up
to be direct debit, so that every single month, on
whatever day of the month.
Speaker 4 (07:36):
You choose, they will.
Speaker 5 (07:37):
Start processing payments for you, and they prefer it to
be direct debit. It's if you're doing this yourself and
you can full pay again, you can go to IRS
dot gov payments and set up that payment plan, and
like I said, that payment plan is going to be
absolutely a full pay for you and you'll continue.
Speaker 4 (08:01):
To pay interest in any penalties.
Speaker 5 (08:04):
That they can continue to accrue while you're on this
payment plan.
Speaker 4 (08:09):
So interest these days isn't cheap.
Speaker 5 (08:12):
As you know, interest rates have gone up, so have
the IRS interest rates, So you will continue to pay
on that debt and continue to accumulate interest as you go.
If you're trying to set up the payment plan, you
do it over the phone, it's going to be two
hundred and twenty five dollars fee. If you go to
(08:35):
the IRS dot gov, it's only going to be one
hundred and thirty dollars fee, and then you know you
can also if you're going to come into money, you
can also set it up on one hundred and eighty
day full pay and then after one hundred and eighty
days basically half a year, you can pay them off
or you can actually set them up on a payment
(08:56):
plan at that point too. So they give you a
few options out there to get them as much money
as you possibly can.
Speaker 4 (09:03):
And that's what their goal is again, is.
Speaker 5 (09:05):
To get as much money to the IRS as possible
through whichever means the IRS has. Now, if you are
low income and setting this up, you can also get
the low income fee of forty three dollars.
Speaker 4 (09:27):
And so the IRS will set you up on that
as well.
Speaker 5 (09:31):
Now, there are a lot of other options out there
for you, and you can explore those options. And we're
going to explore those options throughout this program on how
you can actually set this up to maybe pay less
than what you owe and how are you going to
go about doing that for you and within the program
(09:53):
of the IRS. We're going to take a quick break
and then we're going to talk about partial pay installment
agreements right after this.
Speaker 3 (10:01):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you.
Speaker 2 (10:13):
If you owe the.
Speaker 3 (10:14):
IRS or are going through an IRS audit, don't go
at it alone. Call Taxation Solutions tax Relief at eight
eight eight nine three zero one zero one six. We
are your solution for IRS debts, audits, back taxes, garnishments,
leans and levees. Whether you're an individual or business, you
(10:37):
need a solution and a strong, aggressive tax resolution. Don't
let the IRS walk all over you. Stop the IRS now.
Call eight eight eight nine three zero one zero one
six or go to Taxationsolutions dot net now for a
free no obligation consultation. Let's get back to tax stock
(11:03):
for you with more tax stock once again.
Speaker 2 (11:06):
Here's your host, Barry G. Foller.
Speaker 4 (11:12):
Hey, welcome back.
Speaker 5 (11:13):
We got a quick message here and question online and
one of our trucking friends, which is fantastic from the
truck show. When we were talking about trucker bookkeeping trucker taxes,
we also talked about business entities and how business entities
will could save you money on your taxes and how
(11:35):
we use them to save money on taxes as well.
And then we talk about least purchase of your truck.
So you know, we talk about many different things when
we're at these truck shows. One of the things we
kind of hustled through because we were unlimited time at
the truck a Success show was one of our bonus
(11:56):
programs that we run in there is fighting the IRS
and saving tax money.
Speaker 4 (12:03):
And the question was is.
Speaker 5 (12:06):
Does the IRS offer this fresh Start program? Well, we
always hear this on the radio, and that is a
program the IRS offers to you, the taxpayer that owes
the IRS money. Is the fresh start, or as I
like to put it, is the fresh money program. Fresh
money into the IRS because it's freshly from you, the
(12:28):
person that owes it hasn't paid it over a year
to ten whatever the number of years that you've been
owing the IRS, and it's fresh money to them. There's
all different facets of that program. It's not a program
that any of the resolution companies set up. It's actually
a program within the IRS to collect money as fast
(12:49):
as possible.
Speaker 4 (12:50):
Now, it does offer many options.
Speaker 5 (12:53):
Of course, the full pay, partial pay that we're going
to talk about right now, offer and compromise non collect
collective status, and then you know the two different types
of offers and compromise out.
Speaker 4 (13:05):
There as well.
Speaker 5 (13:06):
That's that's available to you as a taxpayer that owes
the i r S money. But getting into partial pay
installment agreements, this is when you make monthly payments until
the tax liability expires without paying the whole balance, and
this results in the i r S settling the remaining
(13:29):
amount or writing it off as the.
Speaker 4 (13:32):
C sets come in. So what's a C set?
Speaker 5 (13:34):
C set is the statute of limitations that the I
r S has to collect your tax liability. Now, if
you're listening to this program and you go to Taxation
Solutions dot net and you put in for the free
consultation or you give us the phone phone call here
at eight A eight nine three zero one zero one six.
(13:58):
You know, we will sit down and do a tax analysis. Now,
a tax analysis is going to tell you several things. One,
we pulled the whole record that the IRS has on you,
So it tells us all the letters that were sent out,
all the collection activity that was done, how much you owe,
what tax returns you hadn't filed, how you filed those returns.
(14:20):
We're going to get more detailed records of every collection
activity they've taken against you so we can determine the
right program. And once we've done that, we also do
a complete analysis of every tax year that you owe.
Speaker 4 (14:35):
For now, if you.
Speaker 5 (14:37):
File timely your twenty fourteen tax debt, that would still
have about one more year before it would fall off.
So if you filed April fifteenth or before, you know,
we're less than six eight months away. If you filed
twenty thirteen taxes and you filed at the end of
(14:57):
in October, that debt would falling off this year. So
it's ten years from when you file. And so we
look at that. What are the c sets, what is
the statute of limitation on all of your tax debt?
And then we develop a program for you now when
we're developing that program. So we developed that program to
(15:20):
look at every one of those c sets. So, how
are we going to save you money? What's going to
be the most cost effective way for you to get
rid of the tax debt and be able to control
the irs and their collections and prevent them from getting
(15:41):
dollars that you shouldn't have to pay, or maybe prevent
you from paying those dollars. So we took a client
and they owed about thirty two thousand, and that tax
debt was going to expire in about five years, some
of it may be falling off in four years and stuff.
We put them on a payment plan that they could
(16:03):
afford of about two hundred dollars a month, and you know,
they approve that plan, that's going to be about twelve thousand.
So now you can see the right irs will write
off the other twenty thousand at the end of those
five years. We've taken other people who we've looked at
(16:23):
their debture limitations and the SEA SAIDs and said, hey,
you have debt falling off at a year, some debt
falling off in two years, three years, and then you've
got debt that's going to be out there for ten
you can only afford to pay, let's say one hundred
dollars a month. We prove that to the IRS and
puts you on a payment plan of one hundred dollars
(16:45):
that perst year. We get debt fallen off the second
year more, third year even more, and it puts a
lot of savings in your pocket today because that debt
falls off. Now the other debt that's going to be
out there for current debt for eight, nine, ten years. Yes,
you're probably going to pay it all off over that
(17:07):
period of time, even at one hundred dollars a month,
depending on how much you owe. But it becomes a
real nice program because it's going to save you money
without going through the huge hassle of going through let's
say the offering compromise. And if you don't stay in
(17:32):
compliance with the IRS, maybe you don't file on time,
maybe you incurb more debt. One of the issues with
the offering compromise is that once your nining compliance, all
the debt comes flown back and the statute of limitations
would not hold.
Speaker 4 (17:49):
So your statute of limitations will pick.
Speaker 5 (17:51):
Up again once you fail to file everything timely. So
sometimes this is the the right program based on your
compliance history and based on how you can stay in
compliance as well throughout the term of this partial pay
installment agreement.
Speaker 4 (18:13):
So you know, we have to look at everything because.
Speaker 5 (18:17):
Let's just say you have a tough time staying in compliments.
You know, it could be cash flow, it could be
just filing. It could be that you can't keep up
with the bookkeeping and you don't hire somebody to do
the bookkeeping for you. Those things can become issues for
you as you go on. So if we set up
(18:42):
the partial pay installment agreement and some of the debt
goes off in the first twelve months and you're good
with compliance, and maybe some of the debt goes off
in the second twelve months, and then you fail, your
statute of limitations did not stop.
Speaker 4 (19:00):
It kept running.
Speaker 5 (19:01):
So let's say you failed during that second year and
we work to put you back into a partial pay
installment agreement. While we're working on it, maybe that statute
of limitations runs out on that second year and you've
still accomplished a huge savings by that debt being written
(19:24):
off by the IRS, and maybe at that point we
need to look at and offering compromise and you decide
to work with us to stay in compliance as you
go continually going forward, because sometimes that's really the hard
part of it, staying in compliance. And when we talk
(19:46):
about staying in compliance, it's multifaceted. Staying in compliance is
a filing on time.
Speaker 4 (19:54):
Okay, So you.
Speaker 5 (19:55):
Do get the option to file that extension, but you
got to file on time, got to make your estimated
tax payments timely, and then if it's projected where you're
going to owe when you file, making sure you pay
the rest of the balance due hon or before April
fifteenth of that year. Just because you file an extension
(20:17):
does not give you an extension of time to file,
I mean an extension of time to pay. It gives
you only an extension of time to file. Again, let's
repeat that. It does not give you an extension of
time to pay. It only gives you an extension of
time to file when you file that extension. So keep
(20:37):
those things in mind, and that's where the IRS is
going to look at compliance. Now.
Speaker 4 (20:44):
It may take them a little bit of time.
Speaker 5 (20:46):
So the good news is, hey, you may have fallen
out a compliance, but that taxtent may fall off within
the next six months of filing.
Speaker 4 (20:56):
So we go to file your two.
Speaker 5 (20:58):
Thousand, twenty four tax return on April of twenty twenty five,
but within six months, another years of debt's going to
fall off, So we file the extension and if you're
not in compliance, that.
Speaker 4 (21:14):
Debt would fall off.
Speaker 5 (21:15):
When you're in that partial pay installment agreement and you've
accomplished eliminating some debt and then we file the tax return,
you added more debt. You fall out a compliance, you
lose the partial pay installment agreement.
Speaker 4 (21:31):
Maybe we come back and do it again, but it.
Speaker 5 (21:36):
Gets harder and harder the more times you fall out
a compliance to get them to agree to this same
kind of partial pay installment agreement. So you need you
need to really work harder if we were to put
you in this or you get yourself into it to
stay in compliance. Now we're going to take a quick break,
(21:57):
and when we come back, we're gonna start talking about
current only non collectible status and how you could use
that to your advantage as well.
Speaker 3 (22:06):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Bower will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family. Trucker
Tax Tools handles all your bookkeeping and taxes.
Speaker 2 (22:26):
No matter what level trucker you are. Life on the
road can be.
Speaker 3 (22:29):
Taxing, but that doesn't mean that your wallet or time
with your family should suffer. Trucker Tax Tools makes your
life run smoothly. Go to Trucker tax Tools dot com
for a free guide that will give you the tools
to never worry about your taxes again. Call Trucker Tax
Tools eight seven seven nine sixty six two four seven
(22:52):
seven or go to Trucker tax Tools dot com now
and let the experts keep you trucking. Let's get back
to tax stock for you with more tax stock once again.
Speaker 2 (23:07):
Here's your host, Marry G. Fallum, Hey, welcome back.
Speaker 5 (23:14):
I really love getting text messages and people asking if
you want to join the show. You're more than happy
to call in. We'll put you on there and talk
to you and answer your questions as we go as well.
But I had Dale out in Atlanta, Georgia asking about
does this apply to business and business taxes? Businesses and
(23:36):
business taxes.
Speaker 4 (23:37):
Can be handled with a payment plan.
Speaker 5 (23:40):
You can also handle them sometimes and offer a compromise.
Speaker 4 (23:44):
We'll get into some of that as we go.
Speaker 5 (23:47):
One thing about business taxes a lot of times, unless
you're an eleven twenty is see court. The taxes you
are going to be owned are predominantly payroll taxes, and
with payroll taxes they have a whole different collection philosophy because.
Speaker 4 (24:06):
That was not your money.
Speaker 5 (24:09):
Part of that money is considered to be trust fund taxes,
meaning money you pulled out of your employees payroll and
you failed to pay that in, and part of it
is the company taxes, so they have completely different enforcement
collections when they're dealing with payroll tax issues and so
(24:33):
not knowing exactly what your issue is with that, feel
free to give our office the call and talk to
us and we'll kind of talk about, you know, what
we can do to help you with your business taxes
if that's what you're owing, and how we can possibly
save you money going through that.
Speaker 4 (24:54):
We've had very good.
Speaker 5 (24:58):
Results in we're with companies, So just give us a
call at eight eight to eight nine three zero one
zero one six, and you know we'll figure out a
way that how we can help you resolve that issue
now and talking about you know, non collectible. So what
does non collectible mean. It means the IRS deems that
(25:23):
you don't have the money whatsoever to make any payments
to the I R S and they will put you
in the status of currently non collectible. This is a
hardship status and it's a lifeline for individuals, so proprietorships, partnerships,
(25:43):
limited liability companies, escorps that are unable to afford you know,
the tax bill. So yes, it is available to everybody. Again,
remember payroll is a lot different in these things too.
Most partnerships and LLCs, depending on how you your tax
it's going to fall to your personal tax return for
(26:03):
those taxes, even if they're coming after and saying hey,
we're going to collect against the company as well. But
currently non collectible or C and C as we do,
is a necessity to have out there as a step
for those struggling with financial distress. It's going to give
(26:28):
you a temporary cessation of collections. Now, this could stay
permanent for you, but the IRS considers this to be temporary.
So it's going to hold out there for about two
years and then the IRS may come back to you
and ask you to show your income again, or the
(26:49):
IRS is going to look at your current tax return
and c that, Hey, you've been here and now your
income is up here, so your income increase, so therefore
they feel like you can then pay them. Or you
don't file timely, or you fall out of compliance estimated
(27:13):
tax payments, not filing, not making the payment on or
before April fifteen, all things that can result in you
getting kicked out of.
Speaker 4 (27:26):
Non collectible status.
Speaker 5 (27:29):
So you know, if you're wrestling with making ends meet,
you don't have a lot of income coming in. Maybe
you're just on Social Security or maybe just on teacher
retirement or some kind of other pension plan, whatever it
is that you're on, and you don't have the ability
to make ends meet according to the IRS, not according
(27:51):
to you. All the time, the IRS will offer the
non collectible status to you, so you know you can
take advantage of that. And especially again if we're close
to C SAIDs. As C SAIDs come in, there is
no stopping of Statute of limitations from running. So as
time goes by, debt will fall off based on the
(28:15):
Statute of limitations.
Speaker 4 (28:17):
So you know, we can use that.
Speaker 5 (28:21):
As a gap or to bridge getting some of the
tax debt to go away. And if the income's not changing,
it's a beautiful thing. If your income's going to change,
then maybe we default back to that partial pay installment
an agreement, or maybe we default to what we're going
to talk about right now, offers and compromise. So we
(28:45):
all hear this offering compromise settling your tax debt some
of these places you've talked about penalty and pennies on
the dollar. Everybody qualifies, No, everybody does not qualify for
offering compromise.
Speaker 4 (29:00):
But let's first what is an offering compromise?
Speaker 5 (29:04):
That's when you file with the I R S Form
sixty five six with the four thirty three A and
four thirty three B.
Speaker 4 (29:13):
If you're in.
Speaker 5 (29:13):
Business and you know, basically you're asking the I R
S to settle for some amount of money on all
the tax that that you owe the I R S. Now,
does the accept these right off the bat? And know
(29:36):
these are going to take about a year the process. Now,
sometimes it's ten months. I've had them go eighteen months.
Sometimes it's faster. It all depends on you know, the
I R S. And that's a waiting game at that point. Now,
The one thing to remember, statute of limitations stop as
(29:57):
soon as you file that offering compromise, and it will
stay in limbo throughout the whole offering compromise process. So
if your offering compromises accept it, it will continue to
hold the statute of limitations for a full five years
(30:18):
after the offers accept it. So that could be you know,
six years, could be seven years for them to process
the offer, and then the follow in five years from there. Now,
what you're going to offer them is basically what you
can afford to pay the irs. Now there's stringe rules
(30:41):
and regulations to this offer and compromise. It isn't hey,
this is what I have expenses going out and this
is my income coming in. It is everything. So they're
going to look at what you make, what assets you have, stocks, bonds, house,
(31:04):
the equity in your house.
Speaker 4 (31:07):
They're going to be looking at everything and everything you owned. Now,
if in the last year or two you sold.
Speaker 5 (31:17):
Off a car, they're going to know it. They're going
to ask where this was, where'd the money go? If
you gave a car to one of your children, they're
going to want to know. They're going to ask the
questions you have multiple cars that are titled in your name,
They're going to ask about it. You have equity in them.
They're going to be looking for that equity that's in that.
(31:38):
They're going to be looking at what you did. If
you pulled money out of your four to oh one
k ira, where did that money go. That's considered to
be possibly a dissipated asset, and they're going to be
looking for that money unless we can show that you
had to use it for living expenses or major repairs.
Speaker 4 (31:55):
What did you do with that money?
Speaker 5 (32:00):
You know a lot of our friends and people we
have helped over the years, and we got into the
trucking business that have been owner operators and truckers out
there because they didn't make estimated tax payments and then
you didn't file, So why did you end up owing
this money? And they look at that as well. Those
are the questions they ask us when we're representing you.
The IRS is going to check and analyze your tax returns,
(32:25):
your current financial records and statements to determine whether or
not you're going to qualify for this offering compromise. They're
going to be looking at your bank statements. They get
the last three to six months of bank statements, and
they're looking to make sure that you know when we
file the four thirty threes. The four thirty threes is
(32:46):
the financial roadmap to everything you have and everything you own.
Everything's got to be on there. So you got to remember,
this is the largest, biggest, baddest collection agency in the world.
And you think they can't find something, they will find it. Now,
the funny story behind this is that the IRS found
(33:09):
assets for a client. We filed an offering compromise for it.
And I'm going to tell you a little bit of
that story and how that worked out for this client
thinking they were hiding assets from the IRS, and how
the IRS found these assets and how it impacted them
(33:30):
when they were going for this settlement and offering compromise.
Speaker 4 (33:32):
And we're going to talk about that.
Speaker 5 (33:34):
Hey, right after this, we're going to take a short
break and we back talking about how the IRS finds
the things you think you hit.
Speaker 4 (33:40):
We were right back after this.
Speaker 3 (33:43):
We have only scratched the surface of today's show. Please
stand by as Barry G. Bauer will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family. Stop
spending time doing paperwork. Go to Trucker tax tools dot
(34:04):
com a solution filled specifically for truckers. Trucker tax tools
dot Com makes your life run smoothly. Let's get back
to tax stock for you with more tax stock once again.
Speaker 2 (34:19):
Here's your host, Barry G. Fallom Hey.
Speaker 5 (34:25):
Right before the short break there, we were talking about
how the IRS checks your records and finds things that
you have. The interesting story we were working with husband
and wife and the husband really wasn't forthcoming with all
the information. Now we go in and ask for all
the detailed information. You fill out a worksheet for us.
(34:47):
We go over this worksheet, we ask for all everything
you owned, so we put the right program together for you.
Wis guy I thought he was smarter than the IRS.
He had a lot property that he owned, but he
never gave it to us and never declared it, thinking
the IRS wasn't going to.
Speaker 4 (35:06):
Worry about it.
Speaker 5 (35:07):
He also transferred property to his son so that he
could try to avoid that being found. Well, the property
he owned free and clear and kind of tried to
disguise it in some of the property records and everything
out there. Well, the IRS does a complete search of everything.
(35:30):
Like I said, sometimes these searches amaze me that they
come back and find cars and vehicles people haven't owned
for three, four five years, but they didn't do anything
with the car. It become salvage vehicle. And people didn't
transfer titles or whatever it may be. And in this case,
(35:51):
they found this huge property that he had. They also
found that he had transferred property to his son within
the last year or two.
Speaker 4 (36:00):
And now the.
Speaker 5 (36:01):
Irs is coming back and saying, hey, you committed fraud
because you didn't declare this on these four thirty threes,
and the taxpayer, our client is responsible because we make
everybody sign there four thirty three declaring this is true
and correct.
Speaker 4 (36:21):
Now we were.
Speaker 5 (36:22):
Able to prevent the fraud charges for them. We got
them into an installment agreement so that they could settle
their tax debt and pay it off, and we actually
got them to pay most of it down by taking
alone against this property so that we could prevent any
charges being against them in this case. So you know,
(36:43):
you've got to make sure that, hey, you're open and
honest and letting us know everything that you've got going on,
because if you don't tell us, we can't protect you.
And that's what our job is when you hire taxation
solutions secretly, it is to protect you and your assets
to the best of our ability. But the only way
(37:03):
we can do it is if you're talking to us
and communicating and telling us these things.
Speaker 4 (37:09):
Now, just because you think.
Speaker 5 (37:14):
You can't afford to pay the IRS or you should
get the settlement because you can't make ends meet. Now,
the IRS has different requirements than you and I do, okay,
and those different requirements are going to be the national standards.
(37:34):
What the IRS allows you to deduct for housing, utilities,
your car, food, all those necessity items they have national
standards for. And you can't exceed deductibility for those national
(37:59):
standards even if your mortgage is.
Speaker 4 (38:03):
Five hundred one.
Speaker 5 (38:03):
Thousand dollars higher than the national standard. Now they need
to increase those standards because of increased interest rates and
everything else to make these standards actually work across the country.
Speaker 4 (38:17):
But it all goes by what state you.
Speaker 5 (38:20):
Live in, what county you live in, and then the
standard is set for where you live.
Speaker 4 (38:27):
And so once you can put.
Speaker 5 (38:29):
Those things in, then we can see, hey, do you
qualify for this standards for an offering compromise are much
more stringently followed than they are for partial pay installment
agreements or non collectible status. So we've got to follow
(38:49):
these national standards pretty strictly. The other problem we come
into is equity in your house. So if you've owned
your house for a period of time, you can see
that your equity may sometimes exceed.
Speaker 4 (39:04):
Your tax debt.
Speaker 5 (39:06):
And then we've got to go after possibly trying to
get a loan on the house or something, or you've
got money and retirement accounts, the IRS is going to
want you to see if you could pull the money
from that retirement account. A lot of retirement accounts out
there don't give you access to it, and we would
(39:26):
need to see that in your retirement plan through your
company to make sure that you cannot access that, and
the IRS is going to want to see that proof.
Then the RS is going to look at what your
offer is. Your offer can't be zero. I mean, we've
(39:47):
done offers for one hundred dollars, We've done them for
one thousand dollars, We've done them for ten twenty thousand.
We've even done offers for one hundred thousand on a million.
Speaker 4 (39:57):
Dollar tax debt.
Speaker 5 (39:59):
We had to look at revamping people's financial situation to
make things work.
Speaker 4 (40:06):
So what do we mean by that? And remember you
got to work.
Speaker 5 (40:09):
With a tax pro when you do this, because if
you're not working with a Taxation Solutions tax Relief and
you're trying to do it on your own, not every
one of these things apply to you. So make sure
you're getting good advice from a tax pro and rolled
agent CPA that does this on a daily basis, like
we do in Taxation Solutions tax Relief. You may need
(40:33):
to go out and buy a newer used car, get
a car payment instead of a car that's fully paid off.
That could be money that you could be paying to
the IRS, but we get it pulled out because now
you have the car payment, so it's like the IRS
paying for that car. Same thing we do sometimes in
the partial pay installment agreements as well. We make sure
(40:56):
you have all your taxes filed, make sure you're making
an estimated tax payments. Make sure if you're a business
and trying to go through an offering compromise, are you're
currently paying all your payroll taxes.
Speaker 4 (41:08):
Making sure those are there.
Speaker 5 (41:10):
You cannot be going through bankruptcy or have an open
bankruptcy out there, and making sure you're making all your
estimated tax payments, not just while the offer is pending,
but continuing on year after year to make sure you're
doing things right and staying in compliance. Now, again, offering
(41:34):
compromise is not right for every situation out there. Everybody's
situation is different. So not only you have to meet
these strict eligibility requirements and the IRS expects you to
use all your available assets, including that equity in the home,
(42:00):
they also expect you to stay in compliance for the
next five years strict compliance with the tax law.
Speaker 4 (42:09):
Now how strict are they?
Speaker 5 (42:14):
Well, had a client come to me four years, eleven
months and failed to file their tax return.
Speaker 4 (42:25):
They had a.
Speaker 5 (42:25):
Beautiful offering compromise. They had six figure tax that settled
for one thousand dollars somewhere in there, and when they
didn't file a tax return on time, didn't file the
extension for the tax return. Because this is what If
(42:45):
he would have filed the extension and made the payment,
he would have been fined.
Speaker 4 (42:49):
He ended up filing.
Speaker 5 (42:51):
Thirty days late forgot to file the extension, owed five
thousand dollars. The IRS returned his offer and compromise with
the full amount of tax, the full statute of limitations
that was left, and all penalties and interests that would
accumulated over those five years came flooding back.
Speaker 4 (43:13):
Now what do you do?
Speaker 5 (43:18):
Can you go back in and file a new offer compromise? Yes,
if you qualify, you can't. This guy happened to improve
his life greatly and was making six figures. He could
now afford to pay this tax debt. He could now
afford to start making payments and had money in the
(43:39):
bank so he could make a large down payment on
this tax as well. Couldn't save them fell out a compliance.
It was an accident, but the IRS doesn't care. They
don't care at all. So we recommend find a great
(44:00):
program and make sure you're staying in compliance after your
offering compromise is done. Okay, call us here at Taxation
Solutions dot net. Taxation Solutions dot net eight eight eight
nine three zero one zero one six. We offer you
a free consultation. We want you to come in and
call us. Let's talk about what's going on in your
(44:22):
life with tax that you have, and let us find
a way to put a solution in place. And we
had some great trucking questions that came in Why we
were at the Truck to Success seminar. Before I go there,
I want to say congratulations to Tom Wheatley. I've been
working with him with OIDA Foundation for now maybe seven
(44:44):
to ten years on the Truck to Success seminar that
we do pretty much every year. I think we missed
the COVID year. We may have done it Zoom and
one other year in there, but it's been a fantastic program.
If you're an owner operator and want to be out there,
check out oh IDEA Owner Operator Independent Drivers Association get
(45:10):
into the Foundation as well. They have some great webinars
for you being in the trucking industry. But they were
talking to me and saying, hey, can you do a
settlement for truckers. Absolutely, if your self employed got yourself
in this debt.
Speaker 4 (45:27):
We work with you as well. Even if you are
employed and maybe you pulled.
Speaker 5 (45:31):
Money out of a retirement account and you weren't aware
of all the taxes that you were going to be doing,
or you got laid off from your job and you
had money that you had on the loan from a
four to oh one K, and then it's considered to
be a distribution and now you owe taxes, we can
work with you and solve those problems and those issues
for you. It could be a partial pay agreement, it
(45:55):
can be a non collectible status, it can be offering compromise.
But let's sit down and talk about it and figure
out what's the right way to go for you. John
over here in right here to Houston area. Yes, if
you give us a call, we potentially could settle that
(46:16):
tax debt. And you know, if you owe ten thousand
dollars or more, we're more than happy and glad to
help you. You look like you're own about seventy five hundred,
your taxes could be more than that.
Speaker 4 (46:28):
Let's talk about it. We might have a way in
programs for you.
Speaker 5 (46:32):
As well to help you set off that tax debt
and resolve your tax issue. And resolving tax issues is
what we do at Taxation Solutions dot net.
Speaker 4 (46:47):
Call us let us get started.
Speaker 5 (46:49):
We started truck or tax Tools because we were out
there solving a lot of self employed issues for owner
operators out there, and we do this for everybody, so
check us out at truckertax tools dot com.
Speaker 4 (47:06):
As well, we.
Speaker 5 (47:07):
Do bookkeeping and taxes for you and we're glad to
help you. Hey, next week, send us an email. Let
us address the questions that you have right here on
tax Talk for You, and let us get down to
the nitty gritty of taxes, bookkeeping as an owner operator,
(47:27):
as a independent contractor, as a self employed So tune
in next week and join us at tax Talk for You.
Thanks for tuning in, well, continue this conversation next week.
Speaker 3 (47:37):
Thanksgetting Are you an individual or business that wants to
understand taxes and how they affect you? Are you looking
for specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some releave?
(48:00):
Then you need Tax Talk for You, hosted by tax
and Shrucker expert Barry G.
Speaker 2 (48:06):
Fowler EA.
Speaker 3 (48:08):
Tune in ten am Eastern Time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax TALKFORU
dot com. See you next week at W four cy
dot com.
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