IRS issues - need professional help

[tx 3 putt 77,073]

IRS sent me a letter regarding my 2019 returns (I used turbo tax). Need professional help responding / fighting this. 
 

[Dr Fear 1,268]

Be sure to check back in 3 years from now when you get this resolved.

[Pato del Muerto 52,526]

Why aren’t you contacting turbo tax?

[tx 3 putt 77,073]

14 minutes ago, Dr Fear said:

Be sure to check back in 3 years from now when you get this resolved.

correct and I’m ready to pay for help 

[MonkeyDoughnut 10,302]

We talking earth shattering amount or all they are looking for is documentation??

I'm of the club of just pay it as IRS seems to never lose even if you are in the unicorns that sometimes win a case (if professionally represented... deduct that huge amount here) they'll get theirs and then some at some point.

[tx 3 putt 77,073]

8 minutes ago, MonkeyDoughnut said:

We talking earth shattering amount or all they are looking for is documentation??

I'm of the club of just pay it as IRS seems to never lose even if you are in the unicorns that sometimes win a case (if professionally represented... deduct that huge amount here) they'll get theirs and then some at some point.

It’s significant 

[DalTxHornFan 3,106]

What is the issue?  For instance, it's easy to override TurboTax on your self-employment tax liabilities.  The IRS might take issue with that.

Edited January 4, 2022 by DalTxHornFan

[CooterBrown 18,015]

Before Xmas, I got a letter from the IRS saying they never received my 2020 return even though they cashed the check that was in the same envelope. At least they credited my account with that payment. I mailed another return and the odds of them losing it also is probably 50/50.

[tx 3 putt 77,073]

42 minutes ago, DalTxHornFan said:

What is the issue?  For instance, it's easy to override TurboTax on your self-employment tax liabilities.  The IRS might take issue with that.

they said I under reported my 2019 income and want $28k by Jan 12 

[Gene Parmesan 4,008]

Well did you?

[Js1 85,416]

Now we have tax evaders on this site? 

[tx 3 putt 77,073]

2 minutes ago, Gene Parmesan said:

Well did you?

To the best of my knowledge, no 

2019 was clean and easy taxes 

[Dr Fear 1,268]

6 minutes ago, tx 3 putt said:

they said I under reported my 2019 income and want $28k by Jan 12 

Why did you use TurboTax if you (allegedly) make that much money? lol

[DalTxHornFan 3,106]

48 minutes ago, tx 3 putt said:

To the best of my knowledge, no 

2019 was clean and easy taxes 

What is their (alleged) basis for their claim of underreporting?  Mismatched 1099s, K-1s, W-2s, real estate sales, etc?   Surely the IRS notice gave some of those kinds of details.

[Chewbacca 7,780]

15 minutes ago, DalTxHornFan said:

What is their (alleged) basis for their claim of underreporting?  Mismatched 1099s, K-1s, W-2s, real estate sales, etc?   Surely the IRS notice gave some of those kinds of details.

Yep, they will usually state why they believe you owe more money.  Those little letters from the IRS are about the scariest thing that can come in the mail.

[tx 3 putt 77,073]

46 minutes ago, Chewbacca said:

Yep, they will usually state why they believe you owe more money.  Those little letters from the IRS are about the scariest thing that can come in the mail.

correct, hence I’m looking for people that deal with this professionally 

[msbesq 385]

Search for an enrolled agent in your area. A tax lawyer is too expensive and will eat up the alleged deficit in a heartbeat.

[Pato del Muerto 52,526]

I got something a few years ago saying we didn’t file for like 3 years in a row along with a bill for many thousands of dollars including years of penalties and interest accrued between filing time to letter receipt. Even though we received and deposited tax returns all of those years. By the time we dug everything back up, couldn’t make them match the ones done contemporaneously because some paperwork couldn’t be found, so it ended up costing like 5k. 
 

then a couple of years ago I started getting correspondence from seedy irs help places saying scary shit would happen if I didn’t take care of my tax lien and they could help. I didn’t know what they were talking about but the marketing all came in at once so I wondered if there was a public list of some sort. Sure enough the irs put a 10k tax lien on my house even though I was never notified of it or even the supposed debt owed.  They just didn’t like some deductions or some shit. Ended up paying that in full when I sold the house. 
 

all we’ve ever done is follow the tax prep software. Feels like mob extortion. 

[Chewbacca 7,780]

14 minutes ago, tx 3 putt said:

correct, hence I’m looking for people that deal with this professionally 

I hear you.  Just make sure whoever you hire has a lot of experience dealing with the IRS on behalf of clients.  If you were in CO, I could give you a couple names.

[Chewbacca 7,780]

11 minutes ago, msbesq said:

Search for an enrolled agent in your area. A tax lawyer is too expensive and will eat up the alleged deficit in a heartbeat.

He needs a CPA, not a tax lawyer.  It's not lawsuit time yet. 

[msbesq 385]

An enrolled agent specifically represents people with IRS issues. many CPA's don't deal with the IRS directly.

 

[tx 3 putt 77,073]

12 minutes ago, msbesq said:

An enrolled agent specifically represents people with IRS issues. many CPA's don't deal with the IRS directly.

 

thanks, I was about to reach out for tax lawyer recs but now I know that I need an enrolled agent 

Edited January 4, 2022 by tx 3 putt

[MonkeyDoughnut 10,302]

1 hour ago, Chewbacca said:

Yep, they will usually state why they believe you owe more money.  Those little letters from the IRS are about the scariest thing that can come in the mail.

No kidding... I've had kids in college last few years and every year without fail I get an IRS "letter" whereby my heart rate increases and I think WTH did I not do correctly.. only to open it and find its an acknowledgement of my FAFSA PIN update (financial aid tax info electronic pulling ability for the non-college kid crowd).

Beats getting called by an IRS crimimal investigator requesting a meeting... had that too... about someone else thankfully...(work in IT... they know where to find people who know everything about others  )

[Chewbacca 7,780]

11 minutes ago, msbesq said:

An enrolled agent specifically represents people with IRS issues. many CPA's don't deal with the IRS directly.

 

I'm a recovering CPA.  I understand what EAs do.  But many of them do not have the tax knowledge that CPAs do as the requirements to become an EA are much lower than a CPA.  That's why you find a CPA who deals with the IRS a lot.  That's who I use and whenever I have a problem, they deal with it for me.

[Chewbacca 7,780]

4 minutes ago, tx 3 putt said:

thanks, I was about to reach out for tax lawyer recess but now I know that I need an enrolled agent 

You need a CPA.  EAs are like CPA-lite.

[tx 3 putt 77,073]

5 minutes ago, Chewbacca said:

You need a CPA.  EAs are like CPA-lite.

searching now for CPA’s 

[Chewbacca 7,780]

Just now, tx 3 putt said:

searching now for CPA’s 

Just make sure you find someone who specializes in individual income tax and that they represent their clients with the IRS regularly.  And have them do your taxes going forward.  Makes this shit easier.

[tx 3 putt 77,073]

5 minutes ago, Chewbacca said:

You need a CPA.  EAs are like CPA-lite.

searching now for CPA’s 

[Apep 645]

You want someone, either an Enrolled Agent or a CPA, who works in tax controversy. Ways to check include looking at their website. Are they an NTPI fellow? Are they a USTCP (United States Tax Court Practitioner)? Are they ex-IRS? 

Edited January 5, 2022 by Apep

[Apep 645]

Just to clarify: Most CPAs and EAs are lost when it comes to tax controversy. Even those CPAs that work in tax rarely specialize in controversy work and rarely seek it out. EAs, to be frank, are usually just glorified tax return preparers and I wouldn’t even call them CPA-lite in that context. However, a significant subset of EAs are either ex-IRS personnel who now work for the other side OR return preparers who became an EA so that they have the same rights as attorneys and CPAs when it comes to tax controversy work. You’re more likely to find an EA that does tax controversy than a CPA, because so many CPAs don’t even do tax work. And if you find a USTCP, they can take you the distance, all the way into Tax Court (if necessary), attorney not required. 

 

[Brew 3,049]

3 hours ago, Chewbacca said:

You need a CPA.  EAs are like CPA-lite.

EA’s aren’t CPA anything, you just have to pay the IRS and do some education on the tax code. Every bookkeeper in my firm is an EA at this point. You don’t need to understand much about the actual tax code to be an EA. 

PM me what exactly they are saying you underreported and I’ll tell you whether to hire someone or what to do to fix it yourself. It has to be a 1099 issue with that kind of tax due.

If you deducted your sugar babies as employees, you’re on your own.

[Brew 3,049]

59 minutes ago, Apep said:

You want someone, either an Enrolled Agent or a CPA, who works in tax controversy. Ways to check include looking at their website. Are they an NTPI fellow? Are they a USTCP (United States Tax Court Practitioner)? Are they ex-IRS? 

You don’t need any of that depending on what the issue is. Most of the time it is a simple fix on a notice, controversy issues typically come up under examination.

As far as former IRS EA’s, good luck with that bunch. Most IRS auditors that work in individual tax enforcement are low end tax preparers who couldn’t make it on their own or topped out where they were. They have some really knowledgeable people on the business side, individual not much. The head of their local criminal division worked for me at one time, he was a horrible practitioner and the fact he carries a gun now concerns me.

[TwiceHorn 31,496]

In my observation, CPAs that are involved in individual tax preparation will handle disputes with the IRS over your return that they prepared.  Which makes a lot of sense because, they prepared it, and know the information on which it was prepared and are prepared to defend any positions they took or rectify mistakes, etc.  Or help you come to Jesus over the lies you told them.

Finding someone to handle a controversy involving a return they didn't prepare may be more difficult.  And to handle it competently, more difficult still.

Brew is the man when it comes to surly individual and small biz free tax and 'countin advice.  I would take him up on his offer.

[immamac 42,865]

You should probably just pay the 28k since you underreported. 

[tx 3 putt 77,073]

3 hours ago, immamac said:

You should probably just pay the 28k since you underreported. 

i reported all my extra income in 2019, it’s in my filings 

Edited January 5, 2022 by tx 3 putt

[justhookit 4,191]

9 minutes ago, tx 3 putt said:

i reported all my extra income in 2019, it’s in my filings 

Serious answer. Lance Berkman’s dad got me out of a jam. Not sure if he’s around anymore but he’s Larry Berkman and should be out of Houston if he’s still around.

[justhookit 4,191]

Quick google looks like he’s in Fredericksburg. Maybe I misremembered. Cool guy and saved me a ton of money.

[luke duke 6,413]

Did you try and deduct your sugar babies as a business expense?

[NeverMarryAStripper 21,907]

I don't know why people are so scared of the IRS.  In my experience, everyone that works for the IRS is incompetent.  Yes, they have tremendous power, but if you get to the point where they start wielding it, then you are a royal fuckup.  I got a letter this year saying I owed them $3,500 plus interest and penalties for my 2019 return.  The letter said that I had understated my income and overstated my mortgage interest deduction.  I went back and reviewed my return and discovered that they were correct about the income.  I had inadvertently omitted a 1099 from my return.  However, they were full of shit about the mortgage interest because it was correct on my return.  I wrote them a nice letter explaining that the mortgage interest deduction was correct and provided them with overwhelming documentation for it.  I completely ignored the 1099 issue.  They sent me a nice letter back acknowledging the documentation that I sent and I never heard from them again.

[tx 3 putt 77,073]

1 hour ago, luke duke said:

Did you try and deduct your sugar babies as a business expense?

Both adaptions were 100% legal !!!

[deadshank 24,653]

Writing off you BBQ and beer expenses, while admirable, can be off putting to the IRS.  I; however, like your style.

Just tell the bastards this is your first offer and they better take it.

[DalTxHornFan 3,106]

Do they let you do Surly from prison?

[Chewbacca 7,780]

3 minutes ago, DalTxHornFan said:

Do they let you do Surly from prison?

Only one way to find out!

[elfenix 34,312]

we didn't hear from tor and haven't heard from txtow, so i assume not

[ScottS 1,065]

I don't think you are allowed to claim the money given to strippers as educational expenses even though they are working their way through school.

[Armybrat 40,851]

Shit, I’m fixin’ to send in my quarterly payment. and now y’all got me scared.

[MonkeyDoughnut 10,302]

I do love how regulators have figured out their system... we'll take our sweet ass time to audit your filings so that once we find an error in say 2019.. just know we haven't looked at your 2020 or 2021 filings yet... or have we....

 

[Quagmire 2,147]

Sure you can continue the sugar baby life in prison

[pronghorn 44]

On 1/4/2022 at 3:51 PM, tx 3 putt said:

thanks, I was about to reach out for tax lawyer recs but now I know that I need an enrolled agent 

let me know if you find one as I need one too, maybe.

I got the same letter about 2019 taxes.

I called the lawyer (IRS) contact on the letter and emailed. They actually picked up the phone...The IRS lawyer admitted but said would deny it that they completely are fucked. Way backed up and lots of misfiling, etc.

Quietly recommended to continue to protest, etc.

[MonkeyDoughnut 10,302]

23 hours ago, pronghorn said:

let me know if you find one as I need one too, maybe.

I got the same letter about 2019 taxes.

I called the lawyer (IRS) contact on the letter and emailed. They actually picked up the phone...The IRS lawyer admitted but said would deny it that they completely are fucked. Way backed up and lots of misfiling, etc.

Quietly recommended to continue to protest, etc.