IRS Problems in Dallas TX

The backlog of paper returns and returns stopped for errors in 2021 stood at about 10.5 million. Towards the end of 2022, the backlog was even higher at about 12.4 million, which still means refund delays for millions of taxpayers.

Trouble with the IRS comes automatically when you fail to file or pay your taxes, if you are required to do so. The IRS will also send you Notices about different tax-related issues, which can also be a sign of trouble, depending on the subject of the communication.

The IRS generally takes up to 16 weeks to process amended returns, sometimes a little longer. If you have made a mistake on your return, you must file using the Form 1040-X, Amended U.S. Individual Income Tax Return, to correct the mistake. Generally, you must file an amended return within three years (including extensions) after the original filing or within two years after paying the tax, whichever is later.

An IRS Criminal Investigation can be triggered when a revenue agent (auditor), revenue officer (collection) or investigative analyst detects possible fraud. It can also be triggered from information submitted by the public or acquired from ongoing investigations by different law enforcement agencies or Attorneys General offices.

If your tax return status shows “Still Being Processed”, this may mean that it is on hold until the IRS resolves specific issues. This may entail correcting certain issues and/or acquiring additional information from you.

While an IRS audit should not take more than 5–6 months, a Criminal Investigation has no timeframe as its completion depends on several factors such as access to all the pertinent information.

When your return has been ‘accepted’, it means it is now in the government’s hands after passing the initial screening, which covers some basic checks. “Not Approved” means that the IRS has not approved the release of funds for one reason or the other.

No. Still being processed means the processing is delayed. This may require additional information from you, although the IRS usually completes the process without asking for any additional documents.

If the IRS intends to audit, or “examine” your tax return, you will receive written notification. The written notification is sent to a taxpayer’s or business’s last known address of record. The IRS can also send the correspondence to your tax preparer.

The status means the IRS is processing your tax return. You will get to know your personalized refund date as soon as the IRS completes processing your return and approves your refund. Most refunds are issued in less than 21 days, and the IRS is required to pay interest on your refund if you don’t get it within 45 days.

There are many red flags for the IRS, but the top 4 are:

• Not reporting all of your income.
• Earning more than $200,000.
• Blurring the lines on business expenses.
• Breaking the rules on foreign accounts.

In the period from 2010 to 2021, the majority of audits have targeted taxpayers with incomes below $200,000.

If you are audited and found guilty, you can incur hefty IRS audit penalties and interest, which can reach tens of thousands of dollars. In some cases, you can even face jail time.

Most Americans dread being audited by the IRS. The truth of the matter is that most audits are actually not a big deal.

The IRS is battling a backlog of millions in taxpayer mail. The government agency recently warned taxpayers about its phone lines being jammed for the foreseeable future. This means you have to wait for it to get to your mail and if there are any issues with your return, you will be contacted via mail for clarification. 

Failure to file taxes for 10 years or more can result in steep penalties and even a prison term. While there is generally a 10-year time limit on collecting taxes, penalties, and interest for each unfiled tax year, the period of limitations on collections is only activated once the IRS completes a deficiency assessment.

If you have an IRS tax problem, the best advice is to get it resolved as soon as possible. If you are unable to do so on your own, you need to seek IRS problem help. This can be done by contacting the Taxpayer Advocate Service (TAS), or better, getting help from an experienced IRS tax attorney.

Yes, you need professional tax help to deal with back taxes, especially if you are not in a position to pay what you owe. An experienced IRS tax lawyer will analyze your case and help you apply for the most suitable IRS tax relief option.

 There are several ways to reduce your tax liability. These include:

• Reducing the amount of your gross income that is subject to taxes.
• Increasing your retirement contributions.
• Putting pre-tax dollars into an employer-sponsored retirement plan like a 401(k)
• Selling an investment that has lost values to offset other income
• Donating to charity and itemizing your deductions.