Los Angeles, CA (PRWEB) July 04, 2013
While the IRS tries to save time and uncollected income by automatically scoring tax returns for possible problems, a US News report on May 1, 2013 (“IRS Data Web Snares Mostly Low and Middle-Income Taxpayers”) says that small business owners and contractors may be the most affected (money.usnews.com/money/personal-finance/mutual-funds/articles/2013/05/01/irs-data-web-snares-mostly-low--and-middle-income-taxpayers?page=3). Sherri Gastelum, head of Platinum Tax Defenders, says this agrees with a Taxpayer Advocate Service (TAS) report on “Fiscal Year 2014 Objectives” (taxpayeradvocate.irs.gov/userfiles/file/FullReport/Fiscal-Year-2014-Objectives-Report-to-Congress.pdf), providing 5 good reasons for business owners to get back tax help and tax resolution representation.
1. First, US News pointed out that the IRS is intent on closing the so-called tax gap, the $400 billion difference between what is collected in tax revenue, and what should have been collected as income. Contractors and individual filers of a Schedule C may be the most likely candidates for electronic flagging because of a lack of documentation on income, such as a W2.
2. Second, the report from TAS indicated that the IRS was both ineffective and slow at resolving issues related to business back taxes, especially employment taxes. Over 78% of business accounts that were passed through the IRS Automatic Collection System (ACS) remained "unresolved" in 2012.
3. Third, the TAS report showed a small number of instances in which businesses with back tax debt were able to get resolution, after being put through the ACS system. Out of the 525,425 business returns with back tax issues, just over 31,000 of the files were resolved with an installment agreement – a 6% resolution rate. Sherri Gastelum says that a good tax resolution services can certainly get more than 6% of its client accounts resolved.
4. Fourth, US News says that high-income tax filers may have an advantage over low and medium-income tax filers, including those who own businesses. High-income earners using complicated measures and offshore banking to reduce tax liability may be too difficult to catch as fraud cases, whereas IBM technology may be a help to the IRS in finding possible tax disconnects between filed returns and credit card charges, social media alerts, or emails. Sherri Gastelum says that the IRS assurance of not displaying emails as evidence, when obtained without a warrant, may not be consistently applied.
5. Fifth, unfiled returns are a huge barrier to obtaining tax relief for business owners, according to the TAS report. No installment agreements or initial documentation will be received by ACS assistors if there's a backlog of individual or employment tax returns, so IRS field agents tend to get old files with complex issues.
Simi Valley, California is the base for Platinum Tax Defenders, where its CEO and President Sherri serves with the Entrepreneurial Institute. She also leads the National Association of Professional Women. Her associate, tax attorney Dustin Wetton, has a California Western law degree and an international relations degree. Platinum Tax Defenders has a dedicated team of CPA's, Enrolled Agents (able to provide representation on state tax issues), and additional tax specialists who can assist with tax relief measures such as installment agreements and Offers in Compromise. Real records of OIC's reduced down to 15% or less can be found on Platinum Tax Defenders' website. Free 30-minute consultations can be arranged with a tax specialist via email at info(at)tax-resolution(dot)me or by calling 1-877-668-1807.