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The Tax Relief Journey

Tax Relief with Timalyn Bowens

Release Date: 09/08/2023

Why Am I Being Selected for an Audit? show art Why Am I Being Selected for an Audit?

Tax Relief with Timalyn Bowens

Episode 62: In this episode, Timalyn explains why the IRS selects certain taxpayers for audits and reassures listeners that being chosen does not automatically mean anything is wrong. Following up on last week’s episode, , Timalyn continues her audit series by breaking down how audit selections are made and why it is important not to panic if you receive an IRS notice. Contrary to common fears, receiving an audit notice does not mean jail time or that you did something wrong. Many audits are selected at random or flagged through a computer system that looks for unusual patterns or...

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What is an IRS Audit? show art What is an IRS Audit?

Tax Relief with Timalyn Bowens

Episode 61: In this episode, Timalyn breaks down one of the most misunderstood topics in tax: the IRS audit. After 60+ episodes of educating taxpayers, she’s kicking off a brand-new series that explores what an audit really means — and what it doesn’t. Many people fear a suit-wearing IRS agent knocking at their door, but as Timalyn explains, that’s highly unlikely. Instead, most audits today are conducted through correspondence and notices, not surprise visits. So, what is an audit? An IRS audit is simply a review or examination of your accounts and financial information to ensure you...

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Your Right to Appeal IRS Decisions show art Your Right to Appeal IRS Decisions

Tax Relief with Timalyn Bowens

Episode 60: In this episode, Timalyn explains your right to appeal unfair IRS decisions and why you shouldn't give up. We are celebrating three years and 60 episodes of the Tax Relief with Timalyn Bowens podcast! Provisions from the 2017 Tax Cuts and Jobs Act are set to expire in December, and many taxpayers are worried about IRS mistakes - especially after recent budget cuts and workforce reductions. Does this mean you have to accept wrongful IRS decisions? Timalyn says absolutely not. She explains that the IRS has an Independent Office of Appeals that provides fair, impartial review of...

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Is the IRS Going Away? show art Is the IRS Going Away?

Tax Relief with Timalyn Bowens

Episode 59: In this episode, Timalyn addresses whether or not the IRS is here to stay. We have seen significant changes at the IRS within the past few months as they went through a work force reduction. We have also seen them lose $40 billion of the $80 billion that was promised to them in funding by the Biden Administration. Does this mean that they are going to go bye bye? Timalyn doesn't believe so. She believes that this smaller force will make it more difficult for taxpayers to handle their IRS issues on their own. She also fears that some taxpayers will receive unfair treatment, as well...

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How Long Do You Have to Pay Taxes? show art How Long Do You Have to Pay Taxes?

Tax Relief with Timalyn Bowens

Episode 58: In this episode, Timalyn explains how much time you have to pay your tax bill and how much time the IRS legally has to collect.  Your tax balance is due on the due date of the return. However, when the IRS sends you a will give you 30 days to pay before the IRS uses any enforcement. This includes things like an or .  If you can pay the debt off within 180 days you may qualify for a short-term installment agreement. This agreement can be arranged using your online IRS.gov account to set up an online payment agreement (OPA). If the amount is over $50,000 you will have to...

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Why Do I Owe Taxes This Year? show art Why Do I Owe Taxes This Year?

Tax Relief with Timalyn Bowens

Episode 57:  In this episode, Timalyn explains the reason you likely owe taxes this year. She highlights 5 common reasons that people owe each year. It is ultimately the responsibility of the taxpayer to ensure that they are withholding enough taxes. The top 2 reasons that people owe the IRS is because their withholding and/or estimated tax payments are off.  Timalyn has created a series on her YouTube channel to walk you through the process of correcting your withholding for a W-2 job, pension, or your social security. You can find this series below. If you are self-employed or...

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What If I Can't Pay My Taxes? show art What If I Can't Pay My Taxes?

Tax Relief with Timalyn Bowens

Episode 56:  In this episode, Timalyn explains that all hope is not lost if you can't pay your taxes in full. You do have options! First, take a deep breath! Make sure that you have your tax return filed on time. This will help you avoid any additional penalties, such as the .  Payment Arrangments You may qualify to pay your balance over time. If you owe less than $50,000 and have been tax compliant you may qualify to set up an OPA yourself using the IRS website. An OPA is an .  If the balance is $10,000 or less and you haven't owed in the past 3 years or defaulted on an...

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The Failure to File Penalty show art The Failure to File Penalty

Tax Relief with Timalyn Bowens

Episode 55:  In this episode, Timalyn explains what the failure to file penalty is and why it is adding so much to your tax bill. She will not only talk about what it is but how it's calculated, and how to potentially get it removed. Can't File Your Taxes On Time? You can avoid the failure-to-file penalty by filing a timely tax return or tax extension. If you're an individual needing to file an extension you can do so by filing Form 4868. Timalyn will have a video to walk you through filing the 2024 4868 on her YouTube channel, coming out on March 31st.   The Failure to File...

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Is Unemployment Taxable? show art Is Unemployment Taxable?

Tax Relief with Timalyn Bowens

In Episode 54 Timalyn discusses unemployment tax and how it affects a taxpayer's tax liability.  Some forms of unemployment are not taxable such as workers compensation.  The topics covered in this episode are:   What is unemployment? Is unemployment taxable? What's workers compensation? How is unemployment reported? What is Form 1099-G?   If you'd like to work with Timalyn directly, you can book a call with her at www.Bowenstaxsolutions.com .  As we conclude Episode 54, we’d like to encourage you to connect with Timalyn on social media. You’ll be able to...

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Is Severance Pay Taxable? show art Is Severance Pay Taxable?

Tax Relief with Timalyn Bowens

In this episode, Timalyn discusses severance pay and the tax implications of receiving a severance package. She breaks it into 3 sections:    What is severance pay? Is severance pay taxable? Why is my severance pay taxed at a higher rate? How to lower the taxes on your severance pay. If you are already facing a tax debt that you can't pay in full Timayn mentions episode 18 - as a resource for you to use to stop the IRS from using enforcement such as tax levies to collect from you.  If you'd like to work with Timalyn directly you can book a call with her at . As we conclude...

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More Episodes

Episode 37:  In this episode, Timalyn describes what happens during the process of you retaining tax representation.  She provides explanations of what’s going to happen during the 3 phases of tax relief.  Timalyn walks us through the onboarding process, the investigation phase, compliance and negotiation.  While she’ll step in to represent you, it’s still a partnership and she’ll need your assistance. 

Timalyn begins by mentioning Episode 9, which explains the 3 phases of tax relief.  However, people still have questions about the process itself.  This discussion is based on her process.  Other tax professionals may do it differently, and that’s okay. 

The Onboarding Process

Everything begins with a consultation.  While Timalyn offers a number of free resources, the consultation provides you the opportunity to ask her specific questions about your situation.  She’ll create a roadmap showing you how to resolve your tax debt issue.

While not every situation requires you to hire a tax professional to resolve the issue, some do.  In Episode 36, Timalyn focused on the trust fund recovery penalty related to payroll tax issues.  That type of issue definitely justifies hiring a tax professional. 

If you decide to hire Timalyn within 14 days of your consultation, she’ll credit you the cost of the initial consultation.   

4 Things Timalyn Needs, before She Begins 

The first is an engagement letter.  It outlines the services she’s offering, when payments are due, what you can expect from Timalyn and what she will expect from you.  The letter must be signed before the work begins.

The second is a completed IRS Form 2848.  This is a form designating Timalyn to act as your Tax Power of Attorney.  This form is then sent to the IRS.  It authorizes her to speak directly to the IRS on your behalf.

The third item is a signed Form 7216, which gives her permission to use a 3rd party software to pull your transcripts and evaluate your data.   

The fourth item Timalyn needs is your payment for her services.  In her firm, Timalyn typically breaks the pricing up by each phase.  She goes on to explain that at a minimum, the investigation phase has to be paid for, before the work begins.

Timalyn charges different fees depending upon whether you owe more or less than $100,000. 

If your tax issue is $50,000 or more, she will need your financial information.  Expect a detailed questionnaire from Timalyn. 

The Investigation Phase

This is when Timalyn begins communicating with the IRS and evaluating your tax transcripts to identify any missing returns and to determine what penalties have been assessed.  She’s also going to work with you to understand if you were going through something that may be eligible for abatement (i.e. “forgiveness”). 

Once this is completed, she’ll schedule a case update with you.  At this point you’ll be able to decide if you can move forward on your own, or if you’ll still need Timalyn to continue working on your resolution.  If she’ll need to be involved, Timalyn will provide a price for the compliance process.

The Compliance Phase

This is where it really becomes a partnership.  Efficient communication and information is critical.  When any missing returns are prepared and submitted, this will alter the amount of tax debt and that typically results in additional penalties may be assessed. 

A second case update will be scheduled to review your completed returns before they are filed.  You’ll need to sign and file them.  Timalyn may be able to e-file the returns, using IRS Form 8879. 

The Negotiation Phase

At this step, you are still in a partnership with Timalyn, assuming you’ve retained her to represent you.  She’ll continue to speak to the IRS on your behalf.  However, she’ll need your financial information including current expenses, debts, and asset information. She needs to have the information in a timely manner (refer back to your engagement letter).   

IRS Form 433-F is the most common document Timalyn and the IRS will use during the negotiation.  It’s a detailed summary of your financial situation.  Remember, the IRS wants its money, but the information on this form can help prove to the IRS that there’s only so much available. 

There’s a chance you may qualify for a temporary hold on the collections by having your debt classified, Currently Not Collectible (“CNC”).  Listen to Episode 18 to learn more about this.

If you’re not eligible, you may still qualify for an installment agreement, which Timalyn covered in Episode 10. 

There’s also the option of making an offer in compromise.  Timalyn has videos describing the offer in compromise on her YouTube channel.  Here are a couple:

1)    Offer in Compromise:  Do You Qualify?

2)    What is an Offer in Compromise?

This was a lot of information.  The main point is that you’ll need to stay in communication with your tax professional.  Don’t disappear.  By ignoring or responding slowly, you’ll delay resolution of your tax debt and may incur additional interest on the back taxes.

IF YOU ARE A TAX PROFESSIONAL

Before she goes, Timalyn wants to remind tax professionals that on September 18, 2023, the Tax Pro Representation Journey, a private podcast and article subscription will launch.  Make sure you take a look at the information and subscribe.  

Please consider sharing this episode with your friends and family.  There are many people dealing with tax issues, and you may not know about it.  This information might be helpful to someone who really needs it.  After all, back taxes shouldn’t ruin their life either.

As we conclude Episode 37, we encourage you to connect with Timalyn on social media. You’ll be able to subscribe to this podcast on Spotify, Apple Podcasts, Google Podcasts, and many other podcast platforms.  

Remember, Timalyn Bowens is America’s Favorite EA and she’s here to fill the tax literacy gap, one taxpayer at a time.  Thanks for listening to today’s episode.

For more information about tax relief options, visit https://www.Bowenstaxsolutions.com/ .

If you have any feedback, or suggestions for an upcoming episode topic, please submit them here:  https://www.americasfavoriteea.com/contact.

 

Disclaimer:  This podcast is for informational and educational purposes only.  It provides a framework and possible solutions for solving your tax problems, but it is not legally binding.  Please consult your tax professional regarding your specific tax situation.