The Tax Monitor. The IRS. And You. What A Tax Monitor Can Do For You?
What is a tax monitor?
Enter stage left. The tax monitor. Like hall monitors when you were a kid? Actually, no. But as kids, yes. Did you know that bratty little kid with the loud whistle in his mouth ready to let 'er blow? That kid. Well, we were that kid. Many times we were the tattletale little bratty sister (sorry, sisters). Well, you need us monitors. To keep an eye out for things, like IRS notices.
A tax monitoring service, informs you months in advance of any tax notices coming your way. Far in advance of any type of action that the IRS may have in store for you. Nothing nefarious, granted, but when the IRS warns you with a notice once, twice, maybe three times, that fourth time, you can expect some news that might just knock you off your feet.
Meet AJ.Now, AJ is not a real person but for the sake of this story, he is. Follow me. AJ received a 📨 from the IRS. Guess what the envelope had inside, a "you owe the government, 2$$,$$$, you have 30 days to pay" notice. Not good a 📰. There is no payment arrangement for that amount of money. IRS agents, also called Field Agents or Revenue Officers, are given the authority to find out how and when the IRS can collect the money you owe them. 30 days to pay.
True, we, as a national and political society, we willed the authority of the IRS into existence, for a reason, though, mind you. However, the point is clear. Once you receive a notice like AJ did, the only way out may be bankruptcy, chapter 7 or 13.
Planted on your record for 10 years. Whew!
After 10 years, tax debt doesn't go away.
It remains and will become due again right away. Want to own a home someday? Give up that idea.
What could be done for someone in AJ's situation?
Someone in AJ's situation can 'throw out a line' and get an Enrolled Agent to represent them before the IRS. Not attorneys and not CPAs, granted, but people in AJ's situation don't need that level of professional support nor perhaps could they afford the cost. An Enrolled Agent, as a profession, is all about supporting taxpayers with AJ-types of issues. Per the Treasury Circular 230, we are enroll to serve the public before the IRS. As for me, I am an Enrolled Agent. With over 200 calls to Collection Agents, Revenue Agents, Field Agents, and Area Directors, speaking their language now comes to be naturally.
Blame The Code.
It's the IRS' tax code (IRC) that is to blame for some much tax regulation complexity. It changes quite a bit, right? Every new administration making a legacy of the IRC with new rollouts of Congressional intent through regulation and compliance enforcement. Tax code changes that make tax planning and prep intricately unique at worse, and logically impossible at best.
Errors. Errors. And More Errors.
From incorrectly filed returns, understatement, overstatement, and the like, from individual to individual, business to business, nonprofit to nonprofit, returns can be 4 pages or up to 1353+ pages*. As a result, accidents by taxpayers, tax professionals, and the IRS are unavoidable.
Consider cryptocurrency. The IRS has been struggling with qualifying and enforcing compliance on this new virtual currency for over a decade. It is an amazing new invention requiring genius-level analytics and logic mapping that I'd be intellectually wary to go anywhere near (although I try). This currency, better said, investment property, has created a new financial market and financial enforcement market involving the FBI, federal courts, and crime units than I've ever seen in my time as a Gen Z.
*See Bill and Melinda Gates Foundation's 2018 IRS Form 990, referenced in our "Understanding and Mastering How To Donate Cryptocurrency and Why" our free downloadable guide
Enrolled Agents. We Are Your Tax Monitors.
After your return has been submitted and processed, we are the next professional support in your corner to detect and fix any errors or omissions on your return. We keep a lookout for notices on their way to your mailbox. There are transaction codes in your IRS transcript that give us the information needed to determine the next collection action months ahead of time.
Why Use A Tax Monitor?
Using a tax monitor, will brings you into compliance to resolve any unpaid taxes and then allows us to keep a lookout for any future red flags that notices on their way to your mailbox.
What happened with AJ?
Well, AJ called to get our help. After signing up for our tax monitoring service, not only was AJ able to resolve his unpaid taxes but he knew that no more notices will ever be sent to him again without his knowledge.
What's the bottom line?
The bottom line is Enrolled Agents are specialists in monitoring your tax record for any notices and compliances issues that need to be addressed immediately. We get missing taxes filed, tax debt resolved through a payment plan or other, and continue to monitor your tax record to give you peace of mind for any notices coming your way.
After that, we at Lentax.co, do something extra special. We talk about your future. Your "no-or-low" tax future. More to come. For now...
Get A Tax Monitor. Get Ahead of Notices. Stay Informed. Learn more.
