Jim Payne's Tax Blog in Gainesville, FL

You receive an IRS letter informing you they are proposing changes to your tax return. However, you never filed a tax return, so how can they correct it? The answer is that the IRS filed your return using Substitute for Return (SFR). An SFR is the IRS’s way of estimating your tax liability using ...

If you’re in collections and facing a tax assessment you believe is incorrect, all is not lost. The IRS provides several options to challenge the assessment and manage your tax debt. Here are five key avenues to explore: Audit ReconsiderationAudit reconsideration is an option if you disagree with...

Entering into an Installment Agreement (IA) with the IRS can be a huge relief if you're dealing with tax debt. However, maintaining the agreement requires strict adherence to certain compliance terms. If you fail to meet these requirements, the IRS has the authority to terminate your IA, which ca...

Dealing with tax debt can be a real headache, but guess what? The IRS would rather make a deal with you over the expense of sending Collections people to make threats. The IRS offers some pretty flexible payment plans to help you out. Let’s break down your options:Short-Term Payment PlansWho’s It...

Dealing with the IRS can be intimidating and a real pain. However, avoiding the common mistakes can reduce your financial risks and heartburn. Here are some pitfalls to watch out for and tips on handling them effectively.1. Ignoring IRS NoticesThis is by far the biggest mistake you can make. Nobo...

The IRS rejects 60-70% of Offers in Compromise (OIC) submitted by taxpayers. Receiving a rejection for your OIC can be disheartening, but it’s not the end of the road. Here’s what to do next:Understand the Reason for Rejection: Carefully review the rejection letter. Common reasons include discrep...

When facing IRS debt, time is not just a factor; it's a resource. Ignoring IRS debt can be the biggest mistake because it directly leads to losing valuable time needed to create and implement an effective financial strategy. This loss of time can exacerbate your debt situation, making it increasi...

The IRS received a significant funding increase through the Inflation Reduction Act of 2022. This led to speculation about a sudden surge in audit activities. Many wondered, "When will the IRS army of auditors hit the warpath?" However, the actual plan for deploying these resources suggests a mor...

As a CPA who handles IRS collection issues, it's ironic and revealing when marketing firms call me, offering to "rescue" me from tax debts through the IRS Fresh Start Program. These unsolicited calls miss the mark and show a deep misunderstanding of my professional role and the program they tout....

I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS.   It’s a surprisingly common scenario. Client refuses to open mail from the IRS because after all, nothing good will come out of it.  Months later, it was discovered that the IRS had proposed a change,...