Wednesday, October 8, 2008


{Today’s entry is from Michael Rozbruch CEO of Tax Resolution Services in Los Angeles, CA. Michael, a Certified Tax Resolution Specialist (CTRS) and a CPA, has 30 years of general business experience, mostly in the financial arena, with the last ten years involved in helping individuals and businesses solve their IRS collection related problems. He writes the TAX RESOLUTION UNIVERSITY blog. His “best advice” is for the taxpayer who owes “Sam” money}


If you are in trouble with the IRS, know that going to an audit on your own, without professional expert representation on your side, is like going to court without a lawyer. The IRS is the most brutal collection agency on the planet – so don’t take any chances when it comes to settling your tax problems.

I know it’s scary when the government contacts you to conduct a tax audit. Then you look at your annual income and the amount you owe… and your tax problem can seem insurmountable—but trust me, it isn’t. There’s a solution to every problem.
The first step is realizing that your tax problems aren’t going away till you do something about them.
I’ve helped thousands of people solve their tax problems and I know the IRS inside and out. My best advice for resolving your problems with the IRS is to get help from a qualified tax professional, because expert representation can make a significant difference in the audit process.

Working with the IRS is a complicated process that often leaves tax payers too frustrated or intimidated to effectively or comfortably to negotiate a settlement on their won. Additionally, people who go through negotiations with the IRS without proper representation can end up owing more money to the IRS (in additional accruing penalties and interest) than when they started the process.

But most importantly, an expert tax relief professional will protect you during the process by knowing your rights as a taxpayer, which can reduce your tax dangers and the amount you owe. Here are some things to consider:

- Knowledge is power and the key to gaining a new lease on your financial life. For example, hundreds of thousands (potentially millions) of taxpayers fail to file legally required tax returns every year. The act of not filing usually contributes to more significant problems with the passing of time. Not to mention it is a misdemeanor in this country not to file a legally required return when it is due. Even if you haven’t filed one year - it is still considered delinquent. But regardless of what you have heard, you have the right to file your original tax return, no matter how late it’s filed. Our average client has four to eleven years of unfiled tax returns.

- If you owe taxes, the IRS or a state taxing authority can make your life miserable by filing a federal tax lien against you. Can you live on $168 a week? This is the amount you will have to live on if the IRS garnishes your paycheck.
- One in six Americans has a tax problem. If you are one of them, you should know that more than 50% of the referrals to the Criminal Investigation Division are from the Revenue Agent you are about to sit across the table from!
- The IRS is the most brutal collection agency on the planet. Going to an audit on your own, without professional expert representation on your side, is like a boxer going into a fight without boxing gloves.

At the initial meeting, you will be asked about 50 very innocent sounding interview questions—and how you answer them will dictate your fate for the rest of the audit.

So before you enter the ring with the IRS, know that you should answer all these questions as truthfully as possible. You don’t want to take any chances with the IRS. That’s why you need an expert in your corner to fight for your rights!

-The IRS selects returns for audits that have the greatest potential for additional tax to be collected. A tax relief professional can help you obtain a “No Change” letter (if appropriate) or make certain, that if there is additional tax to be assessed, that it is the lowest amount under law.

So if you have IRS problems, know that there is hope and you can turn your financial life around! Get professional help and don’t lose another night’s sleep wondering when the tax collector’s going to come after you.

{Thanks, Michael – TWTP}


Unknown said...

Great advice on tax debt relief! I definitely won't be taking any chances with the IRS after reading this!

Anonymous said...

I didn't know the numbers.

Jeez. One in six have a problem.

Shouldn't we be busier?

Anonymous said...

this was really helpful - thanks!

irs tax attorney said...

Very informative article!
Simple and easy to understand!
Melody Hobson should get her
tips from you!

Anonymous said...

it's too bad they charge their clients so much money for something they can learn to do from the IRS website.

First you need to make sure you're compliant and have all tax returns filed. If you're not sure which are filed, you have to request a record of account from the IRS, as well as look into how much W2 wages you made through Social Security. After you've got those two parts finished (I suggest hiring an Enrolled Agent to prepare the returns, it will be cheaper than an Accountant and WAY cheaper than Mr. Rozbruch will charge you (probably at MOST a 3rd of what Mr. Rozbruch would charge)...

Then you file an Offer In Compromise with the IRS. Look up how to do it and use the information provided on the IRS websites for the "national standard" amounts, etc.