Epic Real Estate Investing - Solving Tax Problems and IRS Collections | 395

Episode Date: May 22, 2018

Today on Tax Hacker Tuesday, Tim Berry and Bernie Garland talk solving tax problems and IRS collections. Learn what to do if the IRS takes your account, the 3-part problem solving process Tim and Bernie use for clients with tax problems, and the 3 options their clients have at the end of the appointment. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Did you know that up to 50% of your lifetime income will be wiped out by taxes? What if you could stop this madness? Isn't it about time you play on a level playing field with the wealthiest 1%? Now you can. Tim Berry, attorney at law, shares here each and every week current tactics and strategies that anyone can implement to hack the tax code. Protect your assets and keep what's rightfully yours.

It's time for tax. Hacker Tuesday. And this is Timothy B. Berry. Hi everyone. And Bernie, can I ask you a question? You can ask me any, you can ask two or three, they're free. So yesterday had somebody call up and they said, hey, IRS, FTB, whoever, just levied my wages. They just took my account.

They just had a tax problem. You are the tax problem expert. What do you do? Well, the first thing is we asked the client to come in and sit down and say, okay, did you file your Did you file your tax returns or did you not file the tax returns and the IRS or franchise tax board file what is called a substitute return? We need to know those facts. And we need to know for what years that these taxes are owed for.

That's the first thing we need to do. We need to get the facts from the client. Got it. And once you get those facts, what magic can you work? Well, normally, and I hate to say this, but normally if a person has a tax problem, they probably haven't filed the last three, four years. And we need to sit down and get them into compliance. It's a big buzzword for the IRS. So what we do is I sit down and we get the information from the client. And we sit there and say, okay, Mr. Mrs. Client, you are what we call

a three-part problem-solving process so we can get this levy release. Now, the first part of the problem-solving process is we send for under the Freedom of Information Act, everything the IRS and franchise tax boards knows about you so we can figure out timelines, so we can no go to the next step. The next step is we gather information from the Freedom of Information Act as well as the client so that we can prepare the tax returns that haven't been prepared. And if the IRS or a franchise tax were to a substitute return, we will do the tax returns based on the information that we got from the government and also the client. We prepare the tax returns. Then we sit down with the client and say, all right, look at, this is what we've come up with.

this is the amount of money you owe, or, by the way, the substitute return they did for you, the you owe a gazillion dollars where we say you only owe this amount of money, so we do certain remedies at that point of time. Now, because of time constraints, I can't go into detailed explanation of what the person's options are in detail. But what I want to do is take time with you to let you know you do have options. And let's go through the options. and then if you want any additional information, you can always contact us personally. First option is, all right, now they owe this amount of money.

And we file the tax returns, and we may file the original tax return that the government did a substitute tax return on. We file it with what they call the audit reconsideration department. Now you owe this amount of money. Here's your first option. Don't do anything. And then they'll do it to you. Number two, beg, borrow, steal, I don't care where you get the money from, pay the taxes. Number three, set up an installment agreement.

Well, that's easier said than done, but it can be done. And by the way, there's a special installment agreement that if you owe under 10,000, if you owe under 25,000, you can dictate to the IRS what you want to pay. The next option is disappear for 10 years and you don't owe it anymore to the IRS. 20 years for a franchise tax board. The next option is something called an offer in compromise. Hey, government, I owe you this amount of money. How about taking this amount of money? Let's call it even.

The next option is a bankruptcy, a tax bankruptcy. Yes, you can file bankruptcy on taxes. The next option is a Chapter 13 reorganization. That's where you, that if you don't qualify for the tax bankruptcy under Chapter 7, you can set up a payment schedule with the bankruptcy court for five years. The next option is something called Curning Uncollectable. Now, you know what Curning Unconnectable is. Yes.

It is a special code section that the IRS has that is a statute. It's a law that if you take your gross income minus your deductions and you don't have any money left over, the IRS has to put you into an uncollectable category and leave you alone until you start making some big money. So that's the process when people have tax problems. You come in, we send for information, we prepare the tax returns that are necessary, and then we go over in detail all these different options that you have. That's it for today, as we dream of a tax system that works just for you. But until then, you have Tim Berry.

See you next Tuesday for another episode of Tax Hacker Tuesday. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com. com.