The Top Six Secrets The IRS Doesn't Want Realtors® to Know
If you or someone you know is currently facing IRS difficulties, here are a few tips and tricks on how to get back on track.
Get a leg up on back taxes so that you can avoid severe IRS penalties and financially debilitating levies on your wages and bank accounts.
With years of record deficits, the government is more eager than ever to get every dollar of back taxes and penalties from delinquent taxpayers. If you find yourself owing back taxes, IRS penalties, and Interest, here are the six little secrets of the IRS that we can help you navigate.
Plus, if your financial situation has been negatively affected by COVID-19, as so many have, now may be the perfect time to settle your tax debt for less than you owe.
Don't Pay IRS Penalties
Get them Reduced or Eliminated!
The IRS has over 148 different types of penalties they can hit you with. And the worst part is that the IRS can and will also charge interest and additional penalties on the original penalty. Because of this, penalties and interest can quickly snowball and become a high percentage of the total amount owed to the IRS.
What you may not know is that IRS penalties can often be reduced to ZERO under the first time penalty abatement program or if you have Reasonable Cause.
What makes up Reasonable Cause you ask? Well, in our experience, many life situations may qualify as long as the situation is reasonable and the argument is presented correctly.
The IRS abates (removes) penalties for many reasons including medical problems, bad accountants, ignorance of the tax laws, actions of ex-spouses, when you provide care for a loved one, military call-ups, health issues, fires, floods, alcoholism, drug abuse, death or a loved one, and even for relying on advice from the IRS itself.
You may be pleasantly surprised by the results of penalty abatement. You have nothing to lose by seeing abatement and the savings can be Huge!
File Your Return On Time
It may sound like a no brainer, but doing so, can save you Big Money
Many people don’t realize that the IRS charges a penalty of up to 25% just for filing your tax return late. That’s right, you will get hit with an additional 25% on top of what you owe if you miss the deadline for filing your individual tax return.
Failing to file a tax return on time carries one of the stiffest penalties the IRS assesses, and it’s even worse for payroll tax returns!
It may seem obvious, but what most people don’t know is that if you file your tax return on-time you AVOID THE 25% failure to file penalty - even if you don’t send in the money that is owed on the return.
Many people could have saved THOUSANDS OF DOLLARS on penalties if they just knew this one thing. So in the future, no matter what is going on in your life, file your tax return on time even if you don’t send in the money you owe.
Yes, of course, you’ll get an ugly letter from the IRS for not sending in the taxes you owe and you will be assessed a failure to pay penalty but, at least you will have avoided the failure to file penalty that can add up to 25% to your bill.
You Don't Have to Live in Fear of the IRS
Yes, the IRS is the biggest & badest collection agency, but you have rights
Knowing your taxpayer rights gives you leverage when resolving your IRS problems. Instead of feeling powerless when up against potentially crushing back taxes and IRS penalties, knowing your rights as a taxpayer or having a qualified Tax Resolution Specialist on your side is the best way to understand and leverage all the options available for you to permanently solve your tax troubles.
We know that IRS tax problems can cause an immense amount of fear and anxiety. We take that fear away by knowing how the Internal Revenue Service works, inside and out, just like you know how to navigate inspections, surveys, and title issues.
Our mission and passion is to provide tax relief to those who feel hopeless against the IRS. Our job is to negotiate the lowest possible IRS settlement amount allowed by law.
For those with years of unfiled tax returns and back taxes owed, the problem while daunting is fixable. We believe there’s a solution to every tax problem, but the problem won’t go away on its own.
By resolving their tax problems, thousands of people have been saved from financial crisis and have turned their lives around, so they can sleep at night, thrive in business, and build a retirement for themselves.
If you have IRS problems, you owe it to yourself and your loved ones to get help today!
You Don't Have to Talk to the IRS
And we don't think you should...
In the same way, you wouldn’t want your buyers and sellers talking to each other, we think it's a bad idea for our clients to talk directly to the IRS. In fact, it may be the worst thing you can do.
The Taxpayer Bill of Rights allows you to be represented by a qualified tax practitioner (like one of us at Resolution Tax Services) who will represent you from the time you retain us.
Once we represent you, the IRS will not call you anymore - they are required to call us, your representative. We will answer questions from the IRS you on your behalf, prepare and provide requested documentation, and work to negotiate the lowest tax settlement allowed by law. We are here to fight the IRS for you!
Many taxpayers attempt to solve their tax problems on their own or ask their tax return preparer to help fix the problem. However, most tax return preparers do not handle IRS tax resolution on a daily basis, and the IRS can easily intimidate them, which often results in an unfavorable outcome.
We are not a tax preparation or accounting firm, we are a Tax Resolution Firm - it’s all we do!
Once you commit to solving your tax problems, we can assist you in working through the process, which can sometimes be completed quicker than you would have thought.
Remember, once you retain us, you won’t have to talk with the IRS
You Can Beat the Odds When Facing the IRS
As you can imagine, when it comes to tax examinations, the IRS wins ~80% of the time when a taxpayer is not represented by a qualified practitioner.
Taxpayers are deemed guilty until proven innocent, which means the IRS can start an audit by disallowing every deduction you made until you prove that each one is legitimate. If a taxing authority has decided to audit you or is pursuing collection actions, it’s important that you don’t let yourself be pushed around.
Additionally, did you know? If you don’t file your taxes, the IRS may file a substitute return for you! As you can imagine, this can be a very bad thing as the IRS files your return in their best interest, not yours.
We believe, that having representation vastly improves your chances for successful tax resolution. Remember, it’s our specialty and it’s all that we do.
As the proverb states, "he who is his own Realtor has a fool for a client."
Treat an IRS issue as seriously as you would a real estate transaction. Would you really recommend FSBO to your client? Obviously, the answer is NO! So, then why would you go before the IRS without competent representation?
The IRS Cuts Deals
Believe it or not, it is possible to negotiate a deal with the IRS
The IRS does make deals on taxes owed, including accepting less for penalties and interest.
The requirements are rigid and the process can be complex, but if you qualify the results can be incredible. To qualify for a deal with the IRS, we usually suggest that you owe the IRS at least $15,000 and have very little in the way of equity in assets. Also, you must be using your monthly income to pay your necessary living expenses and not have much or only a small amount left over each month.
We will evaluate your financial situation, help you plan for making an offer, and then prepare your financials in the most favorable way possible under the law. You owe it to yourself to explore the possibilities of getting a reduction of up to 85% and sometimes even more, including penalties and interest on the original amount owed, if you qualify.
If you have experienced a financial blow, like so many have due to the COVID-19 pandemic, you may be in a much better position to cut a deal with the IRS!
Why, you ask would the IRS be willing to cut a deal? Well, the IRS cuts these deals to get you back in the system as a current taxpayer and to collect a few bucks from the old taxes owed. It's much easier for them to have you be current than chasing you around for back taxes.
Schedule a free consultation to discuss if you might qualify.
Thank you for taking the time to read our special report for Realtors! We know the real estate business inside and out and our Founder has actually owned a brokerage for over a decade, so we are uniquely positioned to know how to help real estate professionals who have run into tax issues.
At Resolution Tax Services, we offer transparency & honesty to our clients, helping them understand the process of resolving their tax debt. We always want you to have realistic expectations about solving your specific tax problems and communicate freely and often throughout the process.
Our role is to negotiate the lowest possible IRS settlement amount allowed by law, and we will not allow a client to retain our firm unless the taxpayer is a legitimate candidate for tax relief and resolution.