Check Out Leading Tax Group Featured On Major News Outlets As Top Tax Experts!

Frequently Asked Questions

FAQ Categories

CONTACT US





      Answers To Your Frequently Asked Questions

      General

      The worst thing you can do is ignore it or take no action. This will move you closer to being levied. The best thing you can do is be proactive and call us for a quick analysis at 800-900-4250. IRS notices are time sensitive. Call or CONTACT US NOW

      We are one of the only tax resolution firms in the country that has a separate division dedicated to our clients that owe over $1 Million Dollars. The IRS formerly referred to their dedicated resource to pursue big tax liabilities as "the large dollar unit" of the IRS.

      As with any larger prize, the IRS can be considerably "more focused " in their collection efforts. Your assets are essentially exposed for possible seizure unless protections are provided. Please call us at 800-900-4250 to start protecting your assets today.

      It is too costly to wait. CONTACT US NOW

      The IRS has simply made it easier to repay your taxes due based on making it easier to qualify for long standing programs offered by the IRS. Do you qualify for any of these programs? Call us at 800-900-4250 to offer facts, or CONTACT US NOW
      If the IRS levies your account, you are definitively in IRS collections. There may be a limited window of opportunity to get the funds back before they are forwarded to the IRS from your bank. Call us ASAP at 800-900-4250 for help or CONTACT US NOW
      If the IRS levies your wages, you are definitively in IRS collections. There may be a limited window of opportunity to reverse the process OR avert it all together. Call us ASAP at 800-900-4250 for immediate help or CONTACT US NOW

      If the IRS visits you in person, their intention is to collect on the taxes due OR have you commit to moving forward on a settlement based on their terms. Call us sooner than the IRS visit if at all possible OR immediately after the visit at the latest we will put together a strategy

      800-900-4250 or CONTACT US NOW

      Call us immediately upon this at 800-900-4250 or CONTACT US NOW
      A tax lien is an encumbrance upon which the IRS provides a guarantee that the tax debt will not go overlooked. It can affect your ability to borrow money and can have other negative effects. Please call us for a complimentary evaluation of your case. We can help in most cases 800-900-4250 or CONTACT US NOW
      This requires a good strategy, as the IRS will likely scrutinize delinquent returns filed all at once. Call us at 800-900-4250 or CONTACT US NOW
      This requires a good strategy as well, as the IRS will likely scrutinize your return(s) beyond your expertise to fend off unwarranted assessments. Going it alone can cost you far more ......in the end. Call us at 800-900-4250 or CONTACT US NOW

      An IRS audit can be prompted by many items on your return for which you must provide clarity, proof , including but not limited to :

      1)Excessive or inappropriate expenses declared on a Schedule, especially if your declared expenses exceed your declared income as a result.

      2)Suspected undeclared income

      3) Any and all suspected mis-categorizations or inaccurate entries on the return CONTACT US NOW

      It is crucial to put together a plan or strategy to deal with the past due p/r taxes, as the tendency to get further behind can jeopardize your entire business operation. Our team can structure a plan to repay the back taxes, stay current with new payroll obligations , as well as manage your other payables to keep your ship on track.

      Call us at 800-900-4250 or CONTACT US NOW

      Reaching this milestone based on overdue taxes should not have to be with the right help. We can take more facts related to the issues to structure a repayment plan to get you back to speed OR avert a shut down altogether in many cases. Call us at 800-900-4250 or CONTACT US NOW
      The State can mandate a repayment schedule not to your liking, involuntarily collect on the debt OR eventually close the business. A proper and proactive strategy can avert these inconveniences in many cases. Call us at 800-900-4250. We can take facts and put together and implement a plan that works for you. CONTACT US NOW
      Our team of expert practitioners can quickly evaluate you data to put together a comprehensive, accurate and conscientious return(s) to meet compliance standards to get you back to speed. Once we've helped you reach the mountain top....it's all downhill from there... Call us at 80-90-4250 to get started or CONTACT US NOW
      Indeed, however, this embarrassment should not be a part of your future. This possible eventuality can often times be averted, and the aversion emboldened with our help. When a taxpayer is in IRS collections , we can get between you and the IRS to provide protections, get additional time to respond if warranted, and ultimately help settle on terms you can afford. CONTACT US NOW
      All cases are different based on the facts related to the case. Our team can help shorten the time that you are at the mercy of the IRS. Call us at 800-900-4250 for a quick analysis of your case. Avoiding the tax issue can have negative consequences for much longer than expected. CONTACT US NOW
      These are called SUBSTITUTE FOR RETURNS or SFRs. The IRS filed returns are based on gross reported income WITHOUT the benefit of items afforded yourself, such as Write Offs, deductions and credits. IRS filed returns can typically yield balances due that a much higher than the real balances due had you filed your own returns. We can help correct the record. Who wants to pay more in taxes than they actually owe? Call us for a quick analysis at 800-900-4250 or CONTACT US NOW

      Past Due State Tax Returns

      This depends on several things. Filing late returns is usually stressful, especially if you are looking at several years of tax. It’s easy to make a mistake in this case. The best choice is to Call Leading Tax Group for guidance.
      The IRS and the FTB are two separate and distinct taxing authorities with different ways of calculating tax. It is perfectly possible to owe the IRS for a particular year and get a refund from the FTB for the same year.
      Recent policy changes mandate that you efile a state tax return with your federal tax return. You can’t efile it separately. Generally, you must file a state tax return if you’re a resident, part year resident or non-resident. If you receive income from a source in California or income above a certain amount, you need to file a federal tax return.
      The collection statute is 20 years and the audit look-back period is 4 years. If you want to know more about your taxes or need some help determining your filing requirements, Call Leading Tax Group today.
      Even though it is very rare, there is a possibility to go to jail for not filing state taxes. However, most taxpayers get away with just a penalty. You could also be required to pay interest. Call Leading Tax Group in case you feel this is your case.

      Past Due Sales Taxes and Returns Due

      You may set up an online account to file and pay at: CDTFA.CA.GOV. Click “File a Return” and follow the steps to complete the process. If you require some assistance, or don’t know what to claim on your return, contact us.
      Yes, in some cases. At the time of writing, this depends on which state you are operating in. The best option for you is to call Leading Tax Group for an evaluation of your situation.
      Yes, even if you owe nothing, you can still be penalized for filing the taxes late. The law requires you to file your taxes and provides a deadline for it. It is best to file on time as required to avoid any such penalties.
      Additional assessments/penalties may be issued against you. Eventually, the issues will be referred to –and addressed by – the CDTFA. If this is your case, call Leading Tax Group today so our tax experts can help you.
      If you are late paying sales tax, assessments, penalties and possibly involuntary collections on the past due amounts can be used to force you to pay the money you owe.

      Past Due Payroll Taxes and Returns Due

      In most cases, the employer is held accountable for unpaid payroll taxes. Sometimes, other officers /payroll processors can be held accountable, especially if Civil or Trust Fund penalties are assessed.
      This varies based on IRS categories. It is typically related to the volume and frequency of your payroll overall. However, the quarterly tax and wage report should be filed before the last day of the month following the calendar quarter.
      If you want to make payroll tax deposits and file a return to report, the Electronic Federal Tax Payment System (EFTPS) is the best tool to use. Keep in mind that you need to set up an account before you can file and pay payroll taxes.
      You will get penalties and collection action can be taken against you to recover the money. Remember, shutting down your business operations or filing for bankruptcy can trigger an audit. Call Leading Tax Group for professional tax assistance.
      The short answer is Yes. The IRS can also impose Civil Penalties/ Trust Fund Recovery Penalties individually to the principals of a business. This can add to your troubles, so it’s best to Call Leading Tac Group for assistance as soon as possible.
      Penalties can be assessed and collection action can be taken against you. Extreme measures, such as shutting down your business operations, usually trigger an audit. Call Leading Tax Group for quick assistance with your payroll taxes.

      Declaring Foreign Bank Account or FBAR

      The Aggregate value is the total value of all of your accounts. If you have 5 accounts and their total value is above $10,000, you need to declare all of them – even when all of them have a balance of less than $10,000.
      You are not required to disclose information about your foreign bank accounts if the total balance (across all accounts, not each individual account) is less than $10,000. If the total balance equals or exceeds $10,000, you are required to report the accounts.
      You should include all of the following accounts in a FBAR: checking, savings, securities, brokerage, and deposit. However, you are free to report any kind of account you hold with a financial institution overseas.
      There is no limit imposed by the IRS. Only your bank can impose a limit on the amount of money you can have in your account. However, you must report the foreign bank accounts to the IRS if the total balance is over $10,000.
      Some foreign bank accounts can be reported using IRS Form 3520. Also, you can file a Report of Foreign Bank and Financial Accounts (FBAR) on FinCEN Form 114. If you need help with this, get in touch with our tax experts.
      Even though they cannot “see” it, they can find out about it eventually. If you did not report the foreign bank accounts and you have a total balance of $10,000 or more, it would be best to consult Leading Tax Group before the IRS discovers the unreported asset.
      The Bank Secrecy Act requires you to report certain foreign bank accounts to the Treasury Department. If you are a US citizen with a foreign account balance of $10,000 or more, you need to report it. The IRS and the Treasury Department have a very rigid process for declaring overseas assets

      Franchise Tax Board Audit

      In most cases, a Franchise Tax Board audit is triggered by discrepancies found or suspected during an internal review. If you need help with a current FTB audit, or if you just want to get more information, Call Leading Tax Group.
      Yes, the Franchise Tax Board can garnish wages just like the IRS. If you feel that they are taking more than you can afford, call Leading Tax Group. We will do our best to change the garnishment and lessen the financial burden.
      Because they love you? No. The letter is usually the way to remind you of a balance due or a tax return due or received. However, the FTB can send you a letter notifying you of future or current liens or levies.
      FTB is the state of CA taxing authority, so it handles state income tax obligations. The IRS handles federal income tax obligations. However, the two often work together if the situation warrants it.
      The Franchise Tax Board typically has 4 years from the date you filed your return to issue an assessment. However, special circumstances can apply. Call Leading Tax Group for more information about these circumstances or for assistance.

      Employment Development Department Audit

      Penalties can be assessed for inaccurate filings, deficient reporting, etc. If the EDD auditor believes you have committed fraud or intent to evade, you can get a 50% penalty added to the assessment.
      Yes, this cross reference can happen. The best way to head off multi-agency issues is to call Leading Tax Group and discuss the specifics of your situation with one of our tax experts. We have over 10 years of experience.
      In answer to AB5, the EDD is frequently scrutinizing the status of workers, determining whether workers are truly 1099 independent contractors or genuine W2 employees. Other reporting discrepancies can also trigger an audit. Call Leading Tax Group for any EDD matter short of individual unemployment insurance claim issues.

      CDTFA Audit

      Start by reading the letter you have received from the IRS to find out why the agency wants to audit you. The next thing you should do is call Leading Tax Group for an initial consultation. We can help you prepare for the audit.
      CDTFA is an abbreviation for California Department of Tax and Fee Administration. The CDTFA sales tax is collected during the sale and then forwarded to the State.
      There is typically a fair amount of proving up receipts and reports during the auditor review. It is important to have good representation from somebody who knows everything about sales tax audits. Call Leading Tax Group
      Typically the only way out is to go through the audit process. You should be accurate and honest. If the IRS requires some documentation, you should give it to them. Call Leading Tax Group if you need more information or help.
      When sales receipts are different than what was reported to the CDTFA. It’s also worth noting that closing a location, declaring bankruptcy, shutting down operations, and dissolving a business all usually lead to a sales tax audit.
      This means an examination of your tax return(s) is in progress. To possibly beat an undue assessment from the CDTFA, we would advise you to call an expert at Leading Tax Group for guidance (the sooner the better).
      It depends on your situation. You may not need to settle on a preliminary assessment from the CDTFA. Call Leading Tax Group and discuss the specifics of your situation with our tax experts. We could save you a lot of money.

      Past due IRS tax returns

      You can use the IRS’s “Where's My Refund” tool. Another option is to call the IRS directly at 1-800-829-1040. Finally, you can log into your online account and view your account information.
      Unfortunately, if you file jointly, this could have consequences for you. The consequences vary, so it’s best to Call Leading Tax Group as soon as you realize that your spouse has not filed his or her taxes.
      Not filing your taxes for 10 years can lead to a lot of problems and complications. We need more information about your situation to determine your filing requirements. Call Leading Tax Group and talk to one of our tax experts.
      After 10 years, if the IRS has failed to collect unpaid tax debt, the debt is written off.  Keep in mind that some exceptions can change the statute of limitations though. Call Leading Tax Group for more information.
      The IRS will file a Substitute For Returns (SFR) on your behalf. This is based on reported income and does not include any including write offs, deductions or credits that could benefit you. They can assess a balance due based on this calculation.
      If you get a penalty for failing ti submit the tax return on time, the fine will be deducted from the refund. In other words, you will get just part of the refund. If you think the IRS has made a mistake, get in touch with our tax experts.
      No, you will not be able to get a refund if you owe money to the IRS. The Internal Revenue Service will take the refunds to pay the tax bill. In fact, this is one of the conditions of the installment agreement.
      The IRS has roughly 10 years from the date of the assessment to collect on both the delinquent taxes and the fees. However, there are some exceptions that can change the collection statute expiration date. Call Leading Tax Group for more information.

      IRS wage garnishment / IRS bank levy

      Unfortunately, the time it takes the IRS to release a levy or remove a wage garnishment varies wildly. It can take anywhere from 2 hours to 2 weeks.  Call Leading Tax Group to discuss the specifics of your case and to find out what you need to do to lift the levy.
      There are several ways in which you can have a levy released. Your best choice is to call Leading Tax Group and talk to one of our tax experts. Depending on what the IRS requires , we can help you get the levy released.
      During an IRS bank levy, the IRS directs your bank to freeze, and eventually forward a certain amount to them to satisfy a tax liability. Call Leading Tax Group ASAP because you have just 21 days to challenge the levy.
      Yes, the collection process has remained unchanged. Even though the Covid-19 pandemic has caused many people to lose their jobs or to miss their payments to the IRS, the agency continues to garnish wages.
      This depends on what must be remedied in order to prevent or reverse the garnishment. The easiest way to do it is to pay the debt in full. Going to court and asking for installment payments also works. Call Leading Tax Group and we’ll show you the best course of action.
      Yes, but only if you have more than one job. One of the wages may be garnished entirely and the other(s) will be garnished only partially. To calculate the exempt amount, read IRS Publication 1484 or give us a call.
      In rare cases, the IRS can garnish 100% of your paycheck. This applies if you have more than one job. The IRS may choose to garnish all the wages from one of your employers. If you have just one employer, part of your wage will be exempt from garnishment.
      No, the IRS must notify you before taking your money. You can challenge their claims and make an appeal. However, if you are in the collection process and the IRS has already sent you the bill, they can levy you at any time.
      Depending on the type of income you receive, they can take up to 100% in some cases. However, in many cases, a part of your wage will be exempt from the levy. If you’ve received a levy or intent to levy notice, it is best to call Leading Tax Group ASAP.
      You have the right to appeal the IRS’s bank levy. However, the process is not always as straightforward as one would expect. We advise you to get help from a tax expert to make sure the appeal goes smoothly. Call Leading Tax Group
      Your account will be frozen for up to 21 days, after which time the bank is obligated to forward the money to the IRS. You will not be able to make any withdrawals, but you can appeal the levy. Time is of the essence, so it’s best to call Leading Tax Group as soon as possible.
      Yes. They can take the money in your bank account to pay off your tax debt. However, the IRS is obligated to give you a written notice and to allow you to challenge its claim before it moves to collect the money.

      IRS Revenue Officer

      The good news is that an IRS revenue officer does not have arresting authority. However, they can refer your case to the Criminal Investigation Department if they suspect a cause of fraud. CID employees can arrest you.
      No, IRS revenue officers do not typically carry guns. However, the IRS has a Criminal Investigation Division whose employees do carry guns. This is the law enforcement branch of the Internal Revenue Service.
      A Revenue Officer can quickly take charge of the situation, with the backing of the IRS (which is a federal agency). Your best option is to call Leading Tax Group to ensure you get a more favorable outcome. Our experts have years of applied expertise.
      An IRS revenue officer can garnish wages, levy your assets, impose deadlines, file federal tax liens, request responses from you based on deadlines, and so on. You must satisfy their requests as soon as possible because they will be monitoring your case closely. Call Leading Tax Group for help.
      The IRS revenue officers can visit your home or business in the standard course of an investigation. This typically means their prior efforts to get you to pay were unsuccessful or they found a delinquent tax return or other pressing tax matters.
      IRS Revenue Officers must have a pocket commission and a HSPD-12 card (the standard form of verification for federal employees) to prove their identity. Both the card and the pocket commission have photos of the IRS RO. You can ask to see them both if you have a concern.

      IRS Audit

      If the IRS visits your home or place of employment, the first thing you should do is obtain their name/contact information. Get as much information as possible about the tax issue they are contacting you about and then call Leading Tax Group for an evaluation on what needs to be done to solve the problem.
      Timeline on retaining diverse tax records varies. However, the statute of limitations for an IRS audit expires after 3 years. It’s a good idea to keep the tax records for 3 years after you’ve filed a return. Call Leading Tax Group if you need more information.
      In certain cases, you can. Keep in mind that the IRS is not a court, so it cannot send you to jail. It can, however, turn your case over to the Justice Department which, in turn, may accuse you of tax evasion. Call Leading Tax Group for more information.
      Typically, IRS audits can take several months to wrap up. In some cases, it can take up to 2 years to get a final resolution. Hiring a tax professional can often shorten the period, as well as get you a better outcome. Call Leading Tax Group for a consultation.
      The IRS may question your calculations or ask for proof of your expenses or declared write offs on the return(s) in question. They will give you a timed window of opportunity to respond to their requests before a determination/assessment is made. The entire process can take several months to complete. Knowing specifically what the IRS wants/accepts as proof can be tricky. Call Leading tax Group to discuss the process.
      If you go through the audit process and feel that the IRS has treated you unfairly, disregarded your proof, or made a decision without giving you an opportunity to present your proof, then the Audit Reconsideration could be the right option for you. Contact Leading Tax Group to evaluate your options. Remember, the IRS audit period can be up to 3 tax years and the audit proceeding can take months to close.
      During a compliance check, the IRS may inform you by mail that you have been selected for an audit. The initial letter typically states the year(s) they are auditing, the items in question and the tax return(s) they wish to examine, as well as a deadline to start the proceedings. The IRS field audit brings the IRS to your business site, home or office, while a desk audit is typically done at the local IRS office. Usually, time is not on your side, so you should Call Leading tax Group as soon as possible.
      Call Us Now