Tax Fraud Phone Scams on the Rise!

Posted on April 28, 2014 by Kursti Nakagawa

IRS Fraud – Phone Scams on the Rise!

Tax Fraud Phone Scams on the Rise! – Although the 2014 tax season is officially over, it appears that tax scams are actually on the rise. In fact, just days after April 15^th tax filing deadline, the IRS issued a warning alerting taxpayers of a phone scam that is the largest one of its kind on record. At the time the announcement was made, taxpayers had already lost over $1 million as the result of scammers impersonating members of the Internal Revenue Service Department over the phone. This recent tax phone scam is not pocketed in in a certain area, but rather has been reported in almost every state in the country!

It appears that these recent scammers have been so successful because they are able to use some very sophisticated techniques. They are often able to give the last four digits of the victim’s Social Security number and, in some cases, are able to make the IRS phone number appear on the taxpayer’s caller ID. In addition to demands for tax dollars, some of those targeted by this recent tax scam have been threatened with arrest, jail time, suspension of a driver’s license and, in the case of immigrants, with deportation. A number of victims who hung up on the original caller have received follow-up calls that look like they are coming from the local police department.

The Treasury Inspector General for Tax Administration (TIGTA) has reported receiving over 20,000 complaints about this recent phone tax scam. In response, they have warned taxpayers that the IRS always makes initial contact about a tax matter through some form of official written communication, not over the phone. IRS Commissioner John Koskinen issued a recent statement saying, “If you’ve never heard from us before and you get a phone call, you’re probably not hearing form us.” Those who get a call from someone claiming to be an IRS agent, are asked to report the incident to TIGTA at 800-366-4484.

If you have tax questions or a tax debt you are unable to pay, our tax settlement professionals are happy to discuss your tax resolution options free of charge. For more information about our services, visit us today at www.professionaltaxresolution.com or call us at 877.889.6527. With over 16 years in the business of resolving tax debt, we have a thorough understanding of tax law together with the experience to know which settlement option will be the best fit for your specific set of circumstances

Tax Liens – How to Remove an IRS or State Tax Lien From Your Credit Report

Posted on September 19, 2011 by Kursti Nakagawa

The most effective tool the IRS has for collecting tax debt are tax liens. What’s worse is that they are very difficult to get removed. Even after you pay off the tax debt, the tax lien will stay on your credit report for up to seven years. Only after they have expired will they be removed from your credit report. These five steps show how to get expired tax liens off of your credit report.

1. Get Your Credit Report: Each year you’re allowed one free copy of your credit report. There are many sites out there that offer this service, such as AnnualCreditReport.com. Use one of these sites to get a copy of your Equifax, Experian, and TransUnion reports.

2. Check for Errors: Yes, even the credit agencies can make mistakes. Carefully check your credit report. If a tax lien that has been paid for over seven years ago, and it hasn’t been removed, you are able to dispute the information with the credit reporting agencies.

3. Dispute: Sometimes, if you view your credit report online, you can dispute an erroneous item through the website. Otherwise, you may send an email or letter to the agencies with your dispute.

4. Send Backup to Prove Your Dispute: When you send your letter of dispute, make sure you attach documents that prove the tax debt was paid, and when.

5. Check Your New Report: The Credit Reporting Agency will reply with a new copy of your credit report after 30 days. The new report should reflect the changes.

Back tax issues can be overwhelming, but there is hope. A good tax settlement professional has the knowledge and experience to help you overcome these types of problems. If you need help with a tax debt issue, or just want to see what options are available to you, talk to one of the licensed experts at Professional Tax Resolution. We specialize in tax settlements and you won’t talk to a salesperson. Call us toll free at (877) 889-6527 or visit us at www.professionaltaxresolution.com today.

Tax Liens – How to Avoid Your Information Being Published

Posted on September 2, 2011 by Kursti Nakagawa

In order to encourage compliance in the payment of outstanding tax debts, the California Franchise Tax Board is authorized to publish a list of the 250 largest state tax delinquencies in excess of $100,000. The list only includes amounts for which official tax liens have been recorded. Since the list is a matter of public record, the Tax Board is required to provide a written notice to the taxpayer before publishing their name on the list. Once an official notice has been issued, the taxpayer’s name will be posted on the list if the tax debt has not been resolved within 30 days.
As with all other official correspondence from the IRS or any State Tax Agency, a notice such as the one described above should not be ignored. Tax agencies are the most powerful collection agencies in existence and publishing a list of delinquencies is just one method they use to enforce compliance. Since there are always steps that a taxpayer can take to resolve any tax debt issue, the worst possible course of action is to ignore the problem. In the case of the California Franchise Tax Board’s tax delinquency list, a taxpayer’s name will not be included provided they contact the Board in an attempt to resolve the tax debt within 30 days of receiving official notification of the impending publication of their name. The list will also not include the name of a taxpayer who has either initiated or completed a verifiable bankruptcy petition, entered into an installment agreement with the collecting agency or had their tax debt officially identified as “not collectible.”

Click the “Learn More Link” or Call (949) 596-4143 to have one of our CPA’s provide a Free IRS or State Tax Lien Notice Review and Consultation.

Is the IRS Finally Easing Up On Taxpayers? For Tax Liens, the Answer is Yes.

Posted on March 8, 2011 by Kursti Nakagawa

The number of tax liens levied by the IRS has increased dramatically over the past several years. Lien filings increased from 168,000 in 1999 to 1.1 million in 2010, a gain of over 550 percent. While it can be argued that tax liens are a necessary part of collecting tax revenue and promoting tax compliance, there is also a concern that they place an excessive burden on taxpayers who are already financially strapped. In an attempt to relieve taxpayer stress in the current economic environment, the IRS has announced that it will initiate a series of new policies and programs to help taxpayers pay their back taxes and avoid getting a tax lien. These changes are outlined below.

The dollar threshold for issuing a tax lien is being lifted from $5000 to $10,000.
The IRS will agree to withdraw a tax lien when the taxpayer signs up for a direct debit installment agreement or switches from an existing installment agreement to a direct debit agreement. However, the lien will only be withdrawn after a probationary period to insure that the taxpayer’s direct debit agreement is in place and working as planned.
The IRS is promising to streamline the process for withdrawing a tax lien once the balance of the outstanding tax debt has been paid in full. As has previously been the case, the taxpayer will still have to submit a formal written request that the lien be removed once the tax debt is paid.
New Offer in Compromise guidelines have been instituted to make this tax settlement option available to a much larger group of taxpayers. The maximum tax debt ceiling allowed for qualification has been raised from $25,000 to $50,000 and taxpayers with annual incomes up to $100,000 can now qualify for an Offer in Compromise.
Small business with as much as $25,000 in tax debt will now be eligible to apply for an installment agreement where previously the maximum tax liability allowed to qualify for an installment option was $10,000.

These changes should address some of the concerns highlighted by national taxpayer advocate Nina E. Olsen in her annual reports to Congress. She has argued that tax lien filings have ruined the credit of millions of Americans and as a result, have made it even more difficult for them to pay the debt they owe the IRS. A tax lien is picked up by all three credit-rating agencies and can lower a credit score by as much as 100 points. Since credit reports are often used by employers, landlords, car dealerships, credit card issuers and mortgage lenders, a tax lien can effectively make someone unemployable and unable to obtain housing and transportation for the seven years it remains on the credit file after the tax debt is cleared and the tax lien is lifted. The recent changes to IRS policy outlined above should help to relieve taxpayers of some of these financial hardships. IRS Commissioner Doug Schulman has said that it is his aim “to promote tax compliance while minimizing the burden on taxpayers.” He further maintains that the IRS must continually revise and update its policies in order to fulfill this mission.

If you have an outstanding tax debt and are facing a possible tax lien or wage garnishment, we can help you select the tax settlement option that will best meet your needs. For more information about our services, visit us today at www.professionaltaxresolution.com. Contact us today at (949)-596-4143 or info@protaxres.com to receive a free, no obligation consultation.