What Is The Taxpayer Bill Of Rights?
Taxpayer Bill of Rights Defines Fundamental Taxpayer Rights
The Tax Answers Advisor Transcript
Marcelino: Good day! No matter where you’re listening to us in this world, be it the United States, China, Germany, Ireland, wherever. We certainly appreciate you listening to The Tax Answers Advisor. I am Marcelino Dodge, your host and interesting thought today from Arthur C. Clarke. “The best measure of a man’s honesty isn’t his income tax return, it’s the zero adjust on his bathroom scale.” Isn’t that so true? Maybe we adjust that just a little bit to make us feel a little bit better.
We’ll leave that up to each of you to decide where you are on that matter. You can reach me via my website at Cash Tracks Financial or email me at success@cashtracksfinancial.com. You can also give me a call 844-394-4287 as you want to learn more about our intelligence solutions that we have an offer to all of our clientele as well as wanting to have a free mutual exploration session to help discover of what some of your needs and what some of your goals are.
Our weekly updates have just a few items to touch on want to just give everybody a strong warning about COVID related text messaging scams that are out there, you may get one that may appear to be from the IRS or maybe from some type of governmental agency. Be warned, if you get a text message such as that it is not legal and not legitimate. You are encouraged, in fact, if you get such a text message that has a link in it.
Now, you don’t want to you don’t want to touch that link because it goes to a website that wants to get information, your private information, and wants to steal your identity and so on. So you don’t want to do that what you want to do. If you do get such a text message is you want to take a screenshot of that message. And then you want to send that to phishing@irs.gov. That is phishing spelled p-h-i-s-h-i-n-g@irs.gov. And just let the IRS and government agencies take care of that.
Last week, we touched a little bit on the fact that the IRS is going to allow individuals if they so choose to apply for an identity theft pin without having to be a victim of identity theft, which is an additional safeguard or protection for you on your federal income tax returns. While also, I just wanted to remind businesses, that you also are at risk for identity theft. And there is a mechanism where you as a business can report that as well to the IRS.
So we’re just wanting to make sure you all know that you can take those steps as well. And just released today haven’t had a chance really to review these. But the IRS did announce that regulations were released on deducting qualified fringe and commuting expenses have to read up on those a little bit more just to see exactly what those are and how those benefit businesses out there. In particular, we want to make sure that everyone as we speak to you is, you know, on the Taxpayer Bill of Rights, and how you, as a taxpayer actually have rights, we’ve had a lot of discussions.
Lately, a lot of people bring up various parts of the Constitution of the United States and various parts that maybe some like some don’t like, well, what we think about also as taxpayers, we also have a tax payer bill of rights that has 10 very nice points to it that we’re going to cover today. And what we do and we cover these as well as think about how these fit in with the intelligent solutions that we offer here at Cash Tracks Financial.
Because we think about as we look around the world, there’s infinite solutions to our tax problems, tax questions, or even general financial matters. Because people of all walks of life want to be successful and you shouldn’t have to be rich and famous to be considered successful. As well as there’s a lot of solutions out there. Now, not all of these solutions out there are necessary to compliance with taxes, as well as a may even be a violation of tax codes, and tax laws, and may even be considered tax schemes, and may even be considered fraudulent.
So as we work with people in these intelligence solutions, we look for solutions based on what your goals are. And as we come to understand your goals, then we take a look at where you are, look for these success indicators, how do we consider where you are now, and where you want to be with your goals. And of course, keep you as we work on this, look at these elements there. We identify these threats that can threaten you, these financial threats help you to avoid those, and even reduce them, and try to get basically anything that standing in your way.
And that includes looking at your taxes, addressing tax issues, getting those out of the way. So you can reach your goals, we create an action plan based on your priority items, which many people in many cases, this is maximizing what we can do with our tax return, looking for how we can advance and take the proper tax deductions that are out there for everybody. No matter how much money you make, there are just those who take advantage of and that’s what our goal is to help you to take advantage of these to be successful.
And even instead of having this money, go to the IRS or to your State Revenue Agency, have it stick with you and put it in a different way in a different place. So that you can maximize your success. And this is a process that we just don’t do, beginning in January, which as we look tax season is just around the corner. And some of this planning can still yet be done before the end of the year. If you contact us, we can set up the free exploration session and then decide if we want to work together and be able to maybe start implement some things before the end of the year.
That way we can look and be able to help you to save going into 2021 as well, which is what our goal is because when you sign up with us into our success packages, be a business success package or a personal success package you get unlimited access to me, Marcelino Dodge. To help you out throughout the year, and my other team members here at Cash Tracks Financial so, we can help you out to reach your goals.
And these all start these are affordable monthly fee $49 a month for individuals, and $149 for businesses. And yes, included in this is completing your federal and state tax returns. And this applies even if you have once we have everything established and know your particular situation even if you have tax filing obligations in more than one state, because I have encountered and I do work with multiple states.
I’ve a particular I work with Colorado, but I’ve had ones that have not only Colorado obligations but have had Nebraska, Kansas Oklahoma, some cases California or Arizona, sometimes Montana even and New York State and so just a few of the states I’ve worked with there. So we see that our all of that is working to our packages to help to maximize your tax situation so that you can definitely keep more money in your pocket, not only from taxes, but from overall, looking at your overall financial process and helping you to be successful.
Now, as we look at our Taxpayer Bill of Rights, a little bit closer now and really start understanding these your rights as a taxpayer because many people get this impression that you’re working with the IRS, the IRS is always right. And that there’s just not much you can do but yet there is responsibilities at the IRS has. The IRS, now retired National Taxpayer Advocate, Nina Olson, once brought out that, “At their core, tax payer rights are human rights.”
And when we really look at this, these are rights that we have as taxpayers with the Internal Revenue Service as we deal to handle our taxes. Now, as we work with people, as I work with people, Cash Tracks Financial, a lot of these items I can address and actually help you with without having to deal with the IRS. Because it’s one of those things that that if we do it right, and you do it right from the start, you’re not going to have to deal with these issues not gonna have to deal with IRS issues, especially if you are really giving all the information to the IRS from the beginning.
Now, the first right that we’re going to touch on is the Right to be Informed. Yes, as taxpayers all of us need to know what we need to do to comply with the law and so we have that right to know. Also, as we learn to comply with the law, which complying with the law, one part is where actually many people are negligent. That is in reporting income. Or another part of that is over reporting expenses or deductions.
But perhaps the biggest one I see most often, though, is failure to report income, which is actually the one that gets more people in trouble. So, the right to be informed includes complying with the law, which includes reporting all of your income where you work. Now, a common misconception out there is that well, they paid me cash. So that is not taxable income. Well, newsflash, if you were paid cash for a job, that is taxable income from the IRS standpoint, and you are legally obligated to report it.
So that’s been part of complying with the law. Also part of it where many people get caught in not reporting enough income, is they get these letters from the IRS could be six months to a year down the road. After they file their tax return, they get IRS letter saying you didn’t report a certain amount of income, we received a 1099 form or we received a W-2 form that was not reported on your tax return.
Now, we are entitled as taxpayers to have clear explanation of the procedures, the form, the notices, the correspondence that we get from the IRS. Now I see enough of these notices that they’re not always the clearest items. Now, I will say though, is that many times, IRS forms notices, at least in my experience, are oftentimes though, more clear than many notices from State Department of Revenue.
So, I actually can give the IRS props on this one is that many times you can, after looking at over enough times, usually you can find it, okay, this is what happened. And this is what was not reported. So this is what needs to be fixed. And the correspondence are usually you can always call in, if you can reach a live person, but you can usually call in at least there’s numbers and as prepared that I can access and get a good explanation for you as to what is happening with that particular account.
Now, also as informed what the IRS has decided on your particular tax account with the IRS is usually pretty good about informing you of their decisions as to what happens, like we have decided that this, in particular in this dependent is not allowed on your tax return. So these are the adjustments that remain on your account as a result of us removing this dependent from your tax return because you don’t qualify for certain credits, you are absolutely entitled to know that and they do.
And they explain that out. Now where as taxpayers we got to be careful is that usually the IRS will send out a notice that explains this. Where we as taxpayers sometimes fail, though, is that we do not always look at the notices right away. Because usually the very first notice the IRS sends out on a decision on a person’s tax account or an adjustment that they made on the tax account, usually has the explanation of this is what was reported on the tax return.
These are the adjustments the IRS is making. And this is the differences between what the IRS changed in what you originally reported. That’s usually on the very first notice that either has a tax bill in it or seen in so many weeks, we’re going to send you a refund. So that’s where we add the responsibility to taxpayers that we have that the IRS often times sends those out. But yet, we don’t always pay attention to them.
But we do need to pay attention to them right away. And we need to take action right away, open up that on below. Bring it into our office, which covering such decisions is part of the process here when ones are signed up in our services. Now, the Right to quality service, is the second one that is required, required or the taxpayer bill of rights that as taxpayers we all have, and which basically means that as taxpayers, whether we’re calling the IRS, on the phone or visiting an IRS office, we are to receive prompt, courteous professional service.
Which the vast majority the reps that I have talked to with the IRS have been very prompt. They’ve been courteous, they have treated me professionally. I do give them credit, especially we think about many times, the type of people sometimes I deal with are not always the nicest people. But to me, they handle themselves very professionally. And they need to speak in an understandable and give clear communications as possible, which all of us could do better on that.
But yet, that’s as a taxpayer, we need to get those services, and then the right to pay no more. Let me take a step back here. And now if we do get bad service, as part of the right equality service, we do have the right to speak to a supervisor, if we do feel we’ve received bad service from a representative to whom we are talking, it’s real handy with the IRS because they always give you this is so and so. And here is my badge number.
And it’s like a six or seven-digit number that they give you. So you can always be make note of that when you speak to them, which I always do when I speak to a representative with the IRS that I’ve gotten bad service. If I talk to a supervisor, which actually I haven’t had to do that yet. But yet, we just keep that in mind that, that is part of our right to quality service. Now the next right that we have, is the Right to pay no more than the correct amount of tax.
Now this is the one that can also get a little bit tricky, because what is the correct amount of tax? That is often where what is in dispute with the IRS, when audits and other matters arrive is because what is that correct amount? Well, we’re only to pay whatever that legal amount is due. And when we pay it, we’re good. And that also includes only the proper amount of interest and penalties that may apply, which we may have some legitimate interest and penalties, especially if we’ve paid late we failed to pay on time.
Or one deal is that if we have not been paying all of our taxes. And if we perhaps underreported income. And this as a result of underreporting income, we have additional tax due, well, we pay that additional tax, of course, but then also because of understatement, there’s an understatement penalty, it’s an under reporting penalty, you could pay as well, you’d be obligated to pay that. And so and then as well as interest that goes right along with that.
And then of course, any and all payments that we make, are to be applied properly by the IRS, which for the most part get done now. And a suggestion that I make with everybody, when they owe to the IRS is that just as a backup when you’re making a payment, and you’re getting the correct amount of your tax paid, always paid with a check or a certified check. Use one of those methods because if, and I say if, if by chance, the IRS claims that they did not receive your payment. The easiest way to prove that is with the check.
And you can easily go down to your local financial institution or you can look it up online and get the front and the back of that check. Now of course, the other way to make sure you do that is to also pay your tax through an electronic means. Be it through one of the credit card processors that you can use on irs.gov or use the electronic tax filing system EF TPs at the IRS has. Now that is really handy because that gives you a confirmation number that your taxes have been paid that you can easily then use to verify if the IRS questions if you have made a payment.
That is the first three of the Taxpayer Bill of Rights and we’re going to consider today we’re going to continue and discuss on this a little bit more when we return from this break. This is Marcelino Dodge on The Tax Answers Advisor on The Voice America Business Channel.
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Today’s tax and financial environment is constantly changing. Tax laws change rapidly. The traditional reactive approach to tax preparation and taxes no longer works. To deliver the best possible outcomes in today’s world. You need a year-round approach to take advantage of tax law changes and to pay as little tax as possible. Marcelino Dodge of Cash Tracks Financial helps his clients to implement proactive tax strategies throughout the year to limit his client’s tax liability plus with this year-round approach clients can increase their cash flow and be as prepared for the future as they can be. Email Marcelino at success@cashtracksfinancial.com or call 844-394-4287.
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This is The Tax Answers Advisor with host, Marcelino Dodge. To reach our program today please call in the number is 1-866-472-5790. That’s 1-866-472-5790. You may also send an email to success2cashtracksfinancial.com. Now, back to The Tax Answers Advisor.
Marcelino: Welcome back to The Tax Answers Advisor. This is Marcelino Dodge, I appreciate you listening to this program today, as we are discussing the Taxpayer Bill of Rights. Yes, the rights that we all have as taxpayers. In our first segment we started we considered the first three which is right to be informed, the right to quality service, and the right to pay no more than the correct amount of tax. The next right, we’re going to consider here on this list.
The fourth, is the Right to challenge the IRS position and be heard. Yes, we get those letters from the IRS. They come in saying perhaps we’ve underreported income. And that we owe additional tax? Well, this is a good one to think about because sometimes the IRS is wrong. Simply stated, and we’re often I’ve encountered this has to do with when you can challenge them, is if by chance there’s a W-2 that you that was given to the IRS that was in another part of the United States.
And I’ve actually had instances where this has happened, where a person’s identity was stolen. They had no idea till they get this letter, six months to a year later from the IRS saying, by the way, you didn’t report this income because we got this extra W-2 in this State of Georgia, for example. Well, that’s an objection and that’s where you can show to the IRS that I was never in Georgia during that year. And that W-2 is not mine.
So you can challenge that, and get that objection and provide documentation showing that you are indeed not the individual who earned that income thus you are not responsible for that. Well, that’s an objection. And that’s one example of an objection, you can raise and provide additional documentation. Another objection that you can raise can be with the new same thing, like with a 1099, as well, that could be reported in another state because someone by chance maybe has stolen your Social Security number, which unfortunately that does happen is part of the ID theft.
But yet, you can challenge and you can get those items adjusted. Another common objection that you can make with the IRS is the disallowance of a dependent, for like child tax credit or the earned income tax credit is another type of objection you can raise if the IRS is disallowing this, for whatever reason, you can say, Oh, wait a minute, wait a minute that that child did live with me and that child did is my dependent?
Well, you do have the right to be heard and provide the documentation showing that indeed that child was your dependent for that particular tax year. And thus the IRS needs to consider that the IRS is really nice to have guidelines like for certain like for dependency, okay, you need to provide this item, which can be like a doctor statement, birth certificate, school record, utility record, all kinds of list of items that you can provide to the IRS so that your objection can be heard.
And in most cases, with the proper documentation you can get the IRS is position changed. Also you need to think about not only responding yourself within a time timely manner. That’s where we get these letters from the IRS. And people will oftentimes bring them into our office and come in and see us. And they’re not even opened, they haven’t even looked at me and Oh, I got this letter from the IRS. Well, you need to open up and at least look at it, get an idea what it is, and see.
And then, as one of our clients who is on our personal success package, you get the review of such documentation of such correspondence from the IRS included as a part of your plan without any additional monthly fees, we review that documentation with you, we sit down, we go over and say okay, for you to respond to this inquiry from the IRS, we need to do it within 30 days. And because there’s a date on the letter, and usually they’ll say like, we need to either respond within 30 days or 60 days of the date of the letter.
So, we help you to prepare that documentation and submit that documentation so that you, as a taxpayer, then respond in a timely manner to the IRS. Now in turn, the IRS needs to respond to you in a timely manner. Now, under the current COVID situation, the response times have been greatly increased. But the IRS is slowly getting caught up in some cases. And in some ways, which has worked also very well, you can respond to the IRS with a fax, which, in general does work pretty well, at least I’ve had good experience with it, to get the IRS to respond to your matter even more quickly.
So that’s so yes, you can challenge the position and you can be heard, and it does work. And you do get a response from the IRS, even if the IRS perhaps doesn’t respond, or doesn’t agree with the position you’re taking, you do need to get a response and you will get a response from them either way. But you do get to respond if the IRS does not agree with again, your position that you’re taking.
And this can be on a number of areas, it can be perhaps as you’re looking at deductions, maybe for your business, that the IRS is challenging a certain deduction in a certain area, why you do have the right for them to be heard. Now, what this then takes us into the next right that we have as taxpayers, which is the Right to Appeal an IRS decision in an independent forum. This is like the next level of where we can handle matters with the Internal Revenue Service, especially if we feel we’re in the right position.
And we have the documentation and for whatever reason, the IRS individual who is looking over this is saying no, you can’t do that. Well, there is an appeals division has the right to appeal. To the next level. Just as like when you have like a district court judge, you don’t like their decision, you can go up to the next level like a US Court of Appeals. Same something similar as with the IRS, they have an appeal area that you can go to you fill out the proper documentation, you fill out the proper forms.
And you also have to do that in a timely manner. It’s the Office of appeals that you can go to with the Internal Revenue Service, the whole another process is another level, which that gets a little bit outside of what we do with our personal success pack and with our personal success packages. That’s like an additional level there, which something we can always discuss and talk about, because we can as an enrolled agent, represent you before various matters with the Internal Revenue Service.
And so, as we take you up to that level, to have a fair, impartial appeal to have the discussion, to present our side of the case as to why we feel that you, as a taxpayer should get this deduction. Here’s the documentation showing that or why you as a taxpayer would have the right to claim this child of yours. And this would especially happening in like, divorce cases. Or perhaps if there’s other custody disputes going on.
There’s number varies this can happen with dependents in but yet, we still show the documentation that yes, this is your dependent. Shouldn’t it, should never actually get up to this level. But if it does, once again, we show the reasons our reasoning, the documentation, all of that so that you as a taxpayer can get that right to appeal taken care of, and hopefully get it done and if for some reason. At you get that level of appeal and the IRS and still gets to keep the tax on or whatever.
There is another recourse that you can go up to which is also called the Tax Court, which is the whole net. Which is basically the next level up there, which then you’re really needing to get Attorneys involved that are licensed to practice before the United States Tax Court, and hopefully your case would never have to go up to that level. But that is a whole another level where you can yet still get there. And people have oftentimes gotten the Tax Court to go, what are you doing IRS?
This is not, you’re not doing the right thing here. This isn’t even in compliance with your own code, your appeals officer is off base, or whatever the case may be. So yeah, we need to keep in mind that these offer these options are available to us, as taxpayers. Now, as we finish up our tax cases, and go on, we have the next right, our sixth right here, which is the Right to Finality. Yes, that is a right to know exactly the maximum round time that we have to challenge the position an IRS has taken.
Now, on the notices that we received from the IRS regarding whatever the matter is, there is a time period, stated in the vast majority of the letters that says you have 30 days to respond to this, you have 60 days to respond to this, you have 90 days, whatever the amount of time is for the type of action, you have the right to know that. So that’s where sitting down with us, you get the letter, we go through the letter, we say okay, we need to respond to this by X amount of time.
And by the way, we talked about sitting down and talking about sitting down and not saying physically sitting down, I’m talking about perhaps having a good discussion over the phone, I’m talking about having a nice online chat through a Zoom meeting where we can see each other and then you can upload, take the mess, take those notices, and upload them up into our web portal tax dome.
So then you have a copy in front of you, I then have the copy in front of me, we go over that together through the online meeting. And we figure out what we need to do. And so our maximum amount of time, we need to know that also, it’s important to know what the maximum amount of time is that the IRS has to audit a year. Now one general rule is that there is a three-year statute on tax returns. So for example, last year, we had, well, usually April 15th of 2020 was the due date for the 2019 tax returns.
Now, what we think about those, we go back, because we just finished 19. And then you go back to 18 and 17, 17, which was due April 15th of 20, April 15 of 2018. Now, right now, the statute of limitations has run out for the year 2016. This next tax season, as we get through April 15th. The statute to basically audit the 2017 tax year is going to expire. So, it’s always like that year is clear. Now, it that’s why it’s important to make sure you file your tax returns on time. Because if you do not file your tax returns at all, there is no statute of limitations because the statute does not begin until you file the tax return. So if you have tax returns on filed from 2010, 11, or 12, for example, and you haven’t filed them. Well guess what? The IRS can go after you for those years because you have not filed a tax return. So you need to file a tax return. Also, the maximum time they have to collect a tax debt, you as a taxpayer need to know that amount of time as well, which is usually 10 years from when it is initially assessed.
So we need to have that notice, now let me know when those time periods are. And so we just keep going. And once we know that time period is up, hey, you’re good. Now when it comes to finality, if you committed fraud on a tax return, there is no statute of limitations. The IRS can go after you at any time if you committed fraud on a tax return. So my advice is, do not commit fraud. That way, you can have finality to when a particular year can be challenged.
Now, big right that you have as a taxpayer, which I exercise that to a very, very strict code of company policies is the Right to Privacy. Whenever we get an inquiry from the IRS, an examination or some type of enforcement action, it needs to comply with the law. And we expected always to comply with the law. Also, when we look at it shouldn’t be any more intrusive than necessary. So sometimes, we just got to be aware and know that when we have information that needs the IRS, one thing is we don’t want to voluntarily give information, we just want to give them just what they’re looking for, just what they need.
And that includes whether it be verbal, or written information, if they ask for a certain deduction for a certain year, for a certain amount, that is what we give to the IRS. So we don’t let it be any more intrusive. Now, unless something is relevant to what we’re discussing. We don’t need to go beyond that. And just say is that really relevant, I mean, just doing the kind way, when we talk to them, and then also expect as part of privacy that the IRS will observe all of our due process rights.
So we want to make sure we’ve got the whole process, everything is respected. And people are doing what they can and doing what is right as they expect that privacy from the IRS. Now something sometimes when it comes to privacy, where people get very, very concerned, as you get those notices from the IRS that says, notice of intent to seize or levy your assets for this tax debt. And I’ve seen that from amounts from saying $300 up to 3000, or 1000s of dollars, I should say, where they say that.
Now, I’ve not actually seen it happen in the 20 years, I’ve been working with the tax returns. And certainly, we never want to have a taxpayer or one of our clients ever get to that point, especially if they’re following our process. They have the full right to privacy with the IRS. And they don’t have to worry about search and seizure from the IRS. There are protections built in with the IRS. And with these, that does provide a collection due process hearing. So there are steps involved, even before the IRS can actually seize anything in the vast, vast majority of the time, at least indexing the time. I’ve been doing tax returns, I have not seen it happen.
Maybe it’s some other country in some other parts of the United States where maybe some people are more flagrant in their tax violations, or payment of their taxes and maybe owe a whole lot more, then we don’t usually have to worry about search and seizures. But there are protections that are built up within it. So that when applicable, you have a due process hearing and usually without that having to happen, you can get the matter resolved with the IRS, which usually all it takes to get some of that resolved is to get a good payment plan set up and to stick with the payment plan.
And with some of the recent adjustments, the Internal Revenue Service has made a little bit of leniency on payment plans. You could probably get one set up a lot easier now than you used to in the past. That’s definitely avoid that and look at that as part of our right of privacy with the IRS. Right now, we’re gonna go and take our last break for the day here and come back we got three more of these rights that we have as part of the Taxpayer Bill of Rights, and we’re going to go ahead and consider so we invite you to be back in just a couple minutes.
This is Marcelino Dodge on The Tax Answers Advisor on The Voice America Business Channel.
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Today’s tax and financial environment is constantly changing. Tax laws change rapidly. The traditional reactive approach to tax preparation and taxes no longer works. To deliver the best possible outcomes in today’s world. You need a year round approach to take advantage of tax law changes and to pay as little tax as possible. Marcelino Dodge of Cash Tracks Financial helps his clients to implement proactive tax strategies throughout the year to limit his client’s tax liability. Plus, with this year-round approach, clients can increase their cash flow and be as prepared for the future as they can be. Email Marcelino at success@cashtracksfinancial.com or call 844-394-4287.
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This is The Tax Answers Advisor with host, Marcelino Dodge. To reach our program today please call in the number is 1-866-472-5790. That’s 1-864-472-5790. You may also send an email to success@cashtracksfinancial.com. Now, back to The Tax Answers Advisor.
Marcelino: Welcome back to The Tax Answers Advisor, I am Marcelino Dodge. I appreciate you listening in today on these “Taxpayer Bill of Rights” that certainly considering last time, just as we right before the break we talked about the Right of Finality and Privacy. Now, in this last segment today we’re going to touch on these last three and a few other items. The first right we’re going to consider here’s the Right to Confidentiality.
That is absolutely vital in this rampant era we live in, of identity theft. That is a absolute top priority for Cash Tracks Financial and myself here, where we maintain client confidentiality for all that are on our personal success plans or business success plans, their confidentiality is fully maintained again at all times. And certainly that is a right that you have with the IRS. So you are fully can expect that any information that you provide to the IRS will not be disclosed to any third parties, and certainly that is vital to know and important to know and I know that’s a fact.
Because when I call the IRS to check on a taxpayer, or something. They are very thorough, they ask for in my case sometimes asked for my P10 number, they asked for other identifying information. For me, as an enrolled agent that I need to provide to them. And one of the biggies here is that when I go to get information, information that I’m going for must be authorized by the tax payer.
Yes, and so even me as the tax preparer, on the tax return, the one who signed that tax return when it was electronically filed for certain matters for me to be able to speak to the IRS, on your behalf as a taxpayer, I have to be authorized by you to do so. Which is great, because that protects you as the taxpayer, and then it protects me also as a tax preparer of maybe not doing something that maybe I shouldn’t be doing without the tax payers consent. So I look at it as benefit for all of us to have that confidentiality.
And then when you authorize me through the signing of a power of attorney to represent you before the IRS, then I can talk to the IRS and get information that I certainly need to do something, and then be able to do what I need to help you as a taxpayer. And then also, I mention expect any appropriate action taken against perhaps, employees of the IRS. If there is a breach of the confidentiality, as well as there’s appropriate actions to me as a tax preparer or other tax preparers, for a breach of confidentiality, so that’s where it’s just vital where both myself and my assistants and others in the office.
We have confidentiality agreements that everyone signs, so that they understand the importance of maintaining the privacy and the confidentiality of your information. And anyone who wrongfully uses or discloses taxpayer information is also can be expect action from the IRS, all you got to do is take a look at what just recently came out of actions that the IRS has taken against that various types of tax preparers, for various wrongful acts and among those is breach of confidentiality.
So, that is an absolute right you have a tax as a taxpayer have from the IRS. That’s certainly you can expect from me as a person that is looking to help you with your tax, tax return preparation, and one who’s looking to help you to be successful in all areas of life and to be successful with intelligence solutions throughout your, all your activities. Let us help you do all that heavy lifting, so that confidentiality is definitely a part of it.
Now also the next right as a tax payer that you have, is to Retain Representation. Some individuals feel like, well I know what I’m doing. I can handle this or whatever with the IRS and take care of the matter myself. Well you know that could very well be true, the circumstances vary. But I will say this, that sometimes it can be very arrogant to presume that you do know what you need to do and you may not actually know anything about the rules, the regulations, to be able to properly represent yourself because that’s where I’ve seen people get themselves into trouble is by trying to represent themselves.
And taking what the IRS considers frivolous tax positions on their tax returns, and thus they end up owing or paying a lot more, or when they do that, oftentimes they disclose much more than they need to, to the IRS. Yes, retaining representation in dealings with the IRS is vital, which as we deal with that and work together with ones through our success packages. If a notice comes in.
And that notice comes in, we review that notice here, or you upload it to the portal, we have a nice discussion over the web, about that particular notice, and then sit there and decide. Do we need to have a Power of Attorney signed on this? We look at the information, we’d like you to of course take care of this. I say okay, I’ll take care of this, just sign this power of attorney so I can take action on these particular problems that the IRS is saying exist. You get that back to me.
I submit it to the IRS. I call them to the IRS as your representative and say, “My client has this matter, we want to work on it.” This is the information that we have to solve this matter. What do we need to do to make sure we get this to you? Or this is what we’re going to submit to resolve this matter. And that’s you as a taxpayer as we go to resolve this with us as your representative, you, you can have peace of mind, and knowing that your matter with the Internal Revenue Service has been handled and handled right the first time.
Now, some individuals may need representation but maybe may not be able to afford it there. In some areas, they have Low Income Taxpayer Clinics available where you can get assistance to help take care of some of these matters there. Now the last right, the 10th right that you have as a taxpayer is the Right to a Fair and Just Tax System. That sounds kind of odd, don’t it a fair and just tax system. Well, I do see and I see a lot of complaints about the tax system.
Yet, everybody needs to keep in mind that as I mentioned in my very first show there’s 40% of the taxpayers that actually pay no federal income tax, and so is that fair? Well, I’ll let you decide that. So we need to look at facts and circumstances that can affect the amounts that ones may owe. Yes, especially self-employed people sometimes feel that they get the bad end of the stick. But yet, at the same time, we got to stop and think, you still need to pay into Social Security just like a person who has a W-2 job.
And so, if we do some proper planning with our small business package, success package we can help to make sure that you are taking advantage of the system, it is being fair and just to you, but each of us needs to take the steps we need to take to ensure that it is fair and just. And then along, right along with that is paying our ability to pay, which this year there’s a little bit of leniency because of the COVID virus running around and causing all kinds of issues and state governments forcing some businesses to close.
So actually, paying some taxes or estimated taxes may not be a challenge for some this year, but just looking at the overall plan. It is absolutely vital that as you become a member of our success packages that when we come up with a plan to help you to be successful, oftentimes making these tax payments in a timely manner if you need to make estimated payments that those are done. Because at the end of the year, you’re not faced with a huge tax bill.
And thus, you are getting paid into Social Security, which helps you as a taxpayer, so that you don’t have a zero year which hurts you, when you go to file for Social Security. Later on in life because, a few zero years in there are not a good thing, that reduces the amount of Social Security, so you want to pay the self-employment tax. And so, and we want to do it in a timely manner which also includes the fact that we file our tax returns on time and take care of the payments with them.
Now also, if you really get into a system that there’s really just a spot you’re in. I’ve seen some of this work for some people, the Taxpayer Advocate Service which is a service within the Internal Revenue Service how taxpayers to resolve tax issues. And once again, my goal is, as I work with people through all of our various through our success packages, be it personal or individual is that we will never have to do that, if we follow the direction in the council, and we follow the plan.
We get your goals, we identify your success indicators, we neutralize the threats that are out there, we put together an action plan to help you, and we follow that plan. We’ll never have to get into some of these areas that I mentioned in this Taxpayer Bill of Rights, we can completely avoid them. And yes, I invite you to visit to cashtracksfinancial.com. You click on, you go to our client resources to schedule an appointment for a free mutual exploration session where we can sit down.
Do it by video conference, very easily, be able to talk about items that are important to you, and see exactly our service is going to work for you. You can also email me, that’s success@cashtracksfinancial.com, and then you can call me Marcelino Dodge as well, at 844-394-4287, and be happy to have a discussion with you so that we can really see if you are a good fit for us. And we are a good fit for you, and helping you to be successful financially throughout these times because, as a business, and as personally I feel that you shouldn’t have to be rich and famous to be financially successful, because with the identification of your goals.
And, as I mentioned about looking at indicators where you are now, compared where you want to be, we neutralize those items that are standing in the way of getting to where you want to go. And we do that by putting together a plan, a plan that we can work on together with both you and my team, so that you can be as successful as you possibly can. In all of your financial matters. Yes, we are so appreciative of you’re listening today, to The Tax Answers Advisor, and we look forward again to you listening in on us.
As we will come back next week, and discuss a subject more directly to business such as, “Should my Business be an S Corporation, considering the Advantages and the Disadvantages of that type of Business”. And I discuss this, because this is a type of business I do a lot of work with on all my small business clients and in the vast majority of cases it is a beautiful way to go, especially if you’re a multi member LLC, which can also be taxed as an S Corporation.
Again, thank you so much for your listenership today, and we’ll look forward to speaking to you again next week on The Tax Answers Advisor. I am Marcelino Dodge on the Voice America Business Channel.
Thank you for listening to The Tax Answers Advisor with host, Marcelino Dodge. We’ll be back again next Wednesday at 6pm Eastern time, then 3pm Pacific time, on The Voice America Business Channel, we’ll have more to share next week.
Cash Tracks Financial Inc.
117 W Beech St
Lamar, CO 81052
Office:(719) 336-8739
Toll Free: (844) 394-4287
Fax: (719) 336-8799
Email: success@cashtracksfinancial.com
Quick Contact
Phone: (719) 336-8739
Toll-Free: (844) 394-4287
Fax: (719) 336-8799
Email: success@cashtracksfinancial.com
Resources
Resources & Articles For Managing Your Finances On Your Own
Taxpayers Bill of Rights Explained By Cash Tracks Financial
What Is The Taxpayer Bill Of Rights? Marcelino Dodge, Cash Tracks Financial Inc. owner, accountant, and Enrolled Agent explains the Tax Payer Bill of Rights. Find out the fundamental tax payer rights at the Taxpayer Bill Of Rights web page.
Tax Law Changes For 2020 That Will Impact Your Tax Return
What Are The IRS Tax Filing Changes For 2020? This article reviews the most important updates to the IRS Code. Article content from the transcript from Tax Answers Advisor with Marcelino Dodge. Find our more at the IRS Tax Filing Changes for 2020 page.
Business Startup Information From Cash Track Financial Inc.
Business startup information from Cash Track Financial Inc. What can I do for a successful business startup? You have the idea & you have the skills for a business for which you are passionate. Find out more at the Business Startup Information page.
Contact Us
When you need a financial or tax advisor, tax prep, insurance, or business guidance contact Cash Tracks Financial Inc., serving Lamar Colorado.
(719) 336-8739 TOLL FREE: (844) 394-4287 FAX: (719) 336-8799
117 W Beech St, Lamar, CO 81052, USA
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