by Jay Freeborne , Enrolled Agent
January 5, 2014

Welcome to the Tax Problem Resolution Blog - the central blog for Washington Tax Services and a community service to people who are researching their tax problem and companies in the tax resolution "industry."

Offer in Compromise to settle your IRS debt is still going strong

Since the 2012 law changes - we are still seeing people take advantage of the new Offer rules - particularly on cases with very large balances - $$$. You can read our series on the Offer in Compromise here: 2012 Offer Rule Changes And if you owe taxes in 2013 - no worries - we can pursue a settlement on those taxes as well as your older years.

Home Office deduction - now $1500 - Safe harbor rule

Due to the headache of the Home office deduction, the IRS made it easier: If you are self-employed you are allowed a $1500 - Safe harbor deduction for home office deduction. No questions asked. You can still use the other method to determine home office. But this should make life easier for all parties. From IRS website

Waiving penalties - still worth doing

If you don't qualify for an Offer, you should still look at getting relief on penalties. BUT - we still recommend that people don't do it UNLESS they have established a pattern of tax compliance, like filing and paying 2013 for starters. More on penalty abatement cases here: Penalty Abatement - index of articles

$250,000 plus debts still require Local IRS agent

The threshold for getting your case assigned to a local IRS agent. Otherwise, if you are below that - in most circumstances, your case will be assigned to ACS - automated collection systems and a 1-800 number.

Tax resolution industry - consolidating - less new national companies

The years 2008 - 2012 were truly the growth years in national tax resolution companies much to our chagrin. However - 2013 - really showed a dramatic drop in new company creation -- much to our delight. We predict that 2014 - will be a year where a lot of these new companies drop off like flies. In fact - without naming names, I think you will see a very big company go away this year.

For 30 years, WATAX has been solving every kind of tax problem. Call us at 1-888-282-4697 or email a description of your tax issue and we’ll contact you.

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