E95: Calming the Tax Panic and Fixing Problems the Right Way with David Luczak

What makes David Luczak with Pallas Associates a good neighbor? 

A letter from the IRS shouldn’t send your heart racing. We bring on enrolled agent and local neighbor, David Luczak of Pallas Associates, to demystify what those notices really mean, how representation works, and why the smartest tax strategy isn’t a giant refund- it’s paying the least tax legally over time. With experience that runs from banking to working inside the IRS to leading his own firm, David shares a practical roadmap for staying compliant, solving problems, and building a plan that fits real life.

We walk through the core services that matter most: precise tax preparation, proactive tax planning, and trusted IRS representation when audits, back taxes, or collections appear. David explains how complexity compounds fast-children and credits, dependent care, mutual funds, rentals, small businesses- and how an enrolled agent can reduce risk while finding legitimate savings. You’ll hear how referrals from other preparers and bankruptcy attorneys flow his way, what that says about reputation and results, and why small business owners benefit from clean books, consistent reporting, and smart timing on deductions and contributions.

Beyond the forms and notices, there’s a neighborly thread here: calm over panic, clarity over rumors, and a focus on durable strategies that hold up under scrutiny. If you’ve ever wondered when DIY is fine (single W-2) and when to call a pro (investments, rentals, credits, business), you’ll leave with a clear line. And if an IRS letter is staring at you from the kitchen table, you’ll know the first move: don’t panic- get help from someone authorized to speak for you.

If this conversation helped you rethink your tax game, follow the show, share it with a friend who needs it, and leave a quick review. Your support helps more neighbors find the right expert at the right time.

To learn more about Pallas Associates go to: 

http://www.pallastax.com

Pallas Associates

[phone]

Episode Transcript

SPEAKER_00 (00:00):
This is the Good Neighbor Podcast, the place
where local businesses andneighbors come together.
Here's your host, Lila Carter.

SPEAKER_03 (00:14):
The Good Neighbor Podcast.
Are you in need of a taxservice?
One might be closer than youthink.
Today I have the pleasure ofintroducing your good neighbor,
David Luzak, with PalaceAssociates.
David, how's it going?

SPEAKER_02 (00:31):
It's been busy.

SPEAKER_03 (00:32):
Oh, good.

SPEAKER_02 (00:34):
It's not tax season.
It's busy.

SPEAKER_03 (00:36):
Oh, I'm sure.
Yeah, we're excited to learn allabout you and your business.
So please tell us more aboutyour company.

SPEAKER_02 (00:43):
Okay, Palace Associates is a full service tax
firm.
We do tax preparation, we'll dotax planning for clients, and we
also do tax representation.
I'm an enrolled agent, which isthe highest designation the IRS
gives to tax preparers, and thatauthorizes me to represent a

(01:03):
client that has tax problemsbefore the IRS.
So if they've got back taxes orunfiled returns or collections,
audits, that type of thing.
I am familiar with the rules andregulations of the IRS and I am
permitted to represent youbefore them to get it resolved.

SPEAKER_03 (01:22):
Excellent.
Excellent.
How did you get into thisbusiness, David?

SPEAKER_02 (01:28):
I had been working primarily in banking in my
original career and doingseasonal tax work for a small
accounting firm.
I found I liked doing the taxwork better and transitioned
into actually working for theIRS.
And I worked for them for awhile and then decided I can

(01:48):
just do this on my own.
I became an enrolled agent andset Palace Associates up.

SPEAKER_03 (01:55):
Very cool.
Yeah, you kind of saw the behindthe scenes and then said, all
right, let me jump in, huh?

SPEAKER_02 (02:01):
Yeah, a little bit, yeah.

SPEAKER_03 (02:03):
Yeah.
What are some myths ormisconceptions in your industry
that you'd like to speak abouttoday?

SPEAKER_02 (02:10):
Getting letters from the IRS is don't panic, is my
first thing.
Okay.
The fact that you owe the IRSmoney is not a crime.
Okay.
The crime is if you don't file.

unknown (02:23):
Okay.

SPEAKER_02 (02:24):
Umbody's going to come to your door with handcuffs
and take you away because youowe tax money unless you've
committed fraud.
That's a whole different animal.

unknown (02:35):
Okay.

SPEAKER_02 (02:36):
But a lot of people panic just because they got a
letter from the IRS saying theymade a disadjustment and they
owed this or that.
Don't panic.
Call somebody who knows whatthey're doing, and we can get it
resolved pretty easily most ofthe time.

unknown (02:49):
Okay.

SPEAKER_03 (02:50):
Very good.
And so, as we know marketing,you know, as a heart of any
business, who are your targetcustomers and how are you
currently attracting them toPalace Associates?

SPEAKER_02 (03:03):
Okay, I do not do much advertising at all.
Okay, most of my clientele comesfrom referrals from other tax
preparers who are not enrolledagents, and their client got
themselves into some type ofjackpot.
They're not permitted to handlethat resolution.
So they refer them to me.

(03:24):
Uh I am uh I am currently thevice president of the
Pennsylvania Society of EnrolledAgents.
So at conferences, I meet a lotof other preparers, so they know
me around this area and send methose.
I also work with severalattorneys, particularly
bankruptcy attorneys who haveclients that owe more money

(03:45):
before they go into bankruptcy,and we'll work with them to see
if that's getting that resolved.
The rest of it comes fromreferrals from clients I already
have.

SPEAKER_03 (03:56):
Right, so mostly word of mouth.
Have you ever thought aboutperhaps doing your own podcast
to reach these differentaudiences?

SPEAKER_01 (04:04):
I have thought about it, I just haven't had the time
to do it.
That's the problem.

SPEAKER_02 (04:10):
I am swamped with work at this point.
Uh but you know, my staff cankeep up with a lot of it for me.
Uh, it's it's just finding atime to do things like that.

SPEAKER_03 (04:24):
Right, absolutely.

SPEAKER_02 (04:25):
Nothing I've pursued at this point.

SPEAKER_03 (04:27):
Outside of work, what do you do for fun, David?

SPEAKER_02 (04:32):
We like going to the beach, the family.
I uh all of my children and I weall get together at least once a
year down at the beach.
And and outside of that, I dosome woodworking at home as a
hobby.

SPEAKER_03 (04:46):
Oh, very cool.
I'm currently having two sidetables fashioned from the tree
that we cut down in the frontyard.
There were actually two trees,and they were maples, and
whenever we sliced into them, wefound out that they were showing
ambrosia.
So yeah, so we we decided allright, well, let's make these

(05:08):
into side tables so we have alittle uh a little trinket from
uh from that tree.
So it keeps it.

SPEAKER_02 (05:16):
Those are nice, yeah.
Especially dry the slabs out,they'll make beautiful woodwork.

SPEAKER_03 (05:21):
Yeah, I'm super excited.
So um I should be getting thoseback next week from our
woodworker.

SPEAKER_00 (05:27):
Good.
Yeah.

SPEAKER_03 (05:29):
My my grandfather was actually a woodworker his
whole life and even taughtwoodworking at CMU.

SPEAKER_02 (05:36):
And he's probably a little more advanced than I
that's a really cool hobby,though.

SPEAKER_03 (05:42):
Very neat.
So, David, please tell ourlisteners one thing that they
should remember about PalaceAssociates.

SPEAKER_02 (05:51):
We're here to help.
Okay.
Uh, one of the things I tell myclients is you need to
understand that as a taxprofessional, my job is not to
get you a big tax refund.
My job is to make you pay theleast amount of taxes.
It's a little bit of adiscrepancy in how you

(06:13):
understand what I'm doing.
Uh, and as long as you wantsomebody to prepare the tax
return to the best and give youthe best advice to pay the
least, consult a professional.
That's all I'm saying.

SPEAKER_03 (06:27):
Absolutely.
Yeah, there's a lot of peoplethat think they can DIY things,
and sometimes you're just betteroff, you know, going to someone
who kind of knows the ropes.

SPEAKER_02 (06:38):
Well, if you're talking about a, for example, a
single person with one W2, theyprobably can't do it themselves.
It's not a big deal.
But it gets complicated when youhave children because you have
tax credits and uh daycares andthings like that to take care,
or you have investments, rentalproperties, a small business,

(07:00):
uh, even mutual funds.
Now it can get complicated realquickly.
Um that's where you needsomebody that knows the ins and
outs of how to get you the besttax return.

SPEAKER_03 (07:13):
Yeah, well, we have a lot of business owners that
listen to this show, so I'm gladthey know where to find you.

SPEAKER_02 (07:18):
Keep busy with them.
We do we handle quite a few ofthe businesses around locally,
uh handling their books anddoing their tax returns.

SPEAKER_03 (07:26):
And how can our listeners learn more about
Palace Associates?

SPEAKER_02 (07:31):
They can visit our website at palacestax.com, or
there is a uh a LinkedIn pagethey can use for Palace Tax.
Uh or I think just give us ourphone at the office here, it's
uh 412-349-8744.

SPEAKER_03 (07:48):
Very good.
Well, David, I really appreciateyour time today and having you
as a guest on our show.
We wish you and the tax firm thebest moving forward.

SPEAKER_02 (08:01):
Thank you.

SPEAKER_03 (08:01):
Thank you.

SPEAKER_00 (08:03):
Thank you for listening to the Good Neighbor
Podcast.
To nominate your favorite localbusinesses to be featured on the
show, go to gnppittsburgh.com.
That's gmppittsburgh.com or callfour one two five six one nine
nine five six.