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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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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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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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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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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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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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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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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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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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...
info_outlineEpisode 38: In this episode, Timalyn is going to discuss a document that’s often used in tax relief negotiations, IRS Form 433-F. In her previous episode, she addressed the tax relief journey to try to make it easier to understand. Today, she’ll do the same with a form that plays a big role in your negotiations with the IRS.
NOTE: Timalyn points out that you need to make sure you’re using IRS Form 433-F. There’s a similar document, IRS Form 433-F (OIC), that’s used when you’re making an offer in compromise. However, the “OIC” version is not the form for today’s discussion.
Timalyn is on a mission to fill the tax literacy gap, one taxpayer at a time. While she uses these forms all the time, she realizes that most taxpayers don’t fully understand what they are or why Timalyn is asking for certain information that goes on them. She understands what information the IRS is going to request, so having the correct information can both speed up the process and help to move the negotiations forward.
It’s a Collection Information Statement
The 433-F is more detailed than your IRS Form 1040. The form provides supporting information for an installment agreement, which allows you to pay your tax debt in installments, rather than in a lump sum.
If you are going to apply for an installment agreement on your own, and it’s not a streamlined agreement (meaning you can’t pay it back within 72-months or before the Collection Statute Expiration Date – CSED), you’ll need to provide the IRS with additional information to support your situation.
Timalyn explains that if you owe more that $50,000, you will be required to submit specific financial information, using IRS Form 433-F.
If you are applying on your own and it is streamlined, you can use IRS Form 9465 to request an installment agreement. For more information, watch Timalyn’s video. The IRS will charge you a $225 set-up fee. However, if you do it online or over the phone, the fee is only $31.
If you plan to apply for an installment agreement on your own, consider purchasing Timalyn’s Guaranteed Installment Agreement e-book. It will walk you through the process and to get your plan set up quicker.
What is the purpose for the 433-F ?
This form collects your current financial information used to determine how you can satisfy your debt. This applies to an individual or a small business owner. The IRS wants you to prove why you’re going to need more than 72-months to pay the debt. The form gathers that information.
You’ll use this form to report your income over the last 3 months. Remember, it may have changed since you filed your tax returns.
Timalyn takes a minute to explain why you should probably seek a consultation with a tax professional who has specific experience in tax relief. That information will be extremely helpful, even if you decide not to ultimately hire him/her to represent you in this process.
While the IRS wants the last 3 months, you actually might want to provide the last 6, 9, or 12 months, because certain factors, such as a period of unemployment, may change the picture in your favor.
Timalyn explains the IRS is really trying to analyze your cash flow. Some jobs pay weekly, while other sources of income such as social security only pay monthly.
Over the past 12 years as an enrolled agent, Timalyn knows the IRS is also looking at what you owe other people or companies. Having other required payments will limit your cash flow, but it’s not that easy.
The IRS will consider your credit card balance and your available credit. They may determine you could use some of the available credit to pay your tax debt.
Additionally, the IRS will review your assets. For instance, do you have equity in your vehicles? How much do you owe on the loans? How much are the monthly payments? What is the fair market value of the vehicle(s)? Realize the IRS may require you to sell some assets to pay your tax debt. Starting to get the picture?
Are You a Business Owner?
If so, the IRS wants to know about your accounts receivable balance. The IRS can consider you’re A/R because it could increase your normal cash flow. You need to be open and honest in your negotiation with the IRS. If they think you’re playing games, they will be much more difficult in striking any type of arrangement with you. In fact, they could simply decide to issue tax liens on specific tax years.
Do I Have to Provide All of This Information?
Timalyn’s answer is, “it depends.” The IRS has the right to specific information when you’re involved in a negotiation with them. Remember, you owe them and are at their mercy. If you’re trying to establish an installment arrangement, you’re asking them for a favor (even though we may not look at it that way).
On the other hand, there are National Standards and Local Standards. If your expenses fall below these levels, you still get the benefit of the allowable standard. It’s like taking advantage of the standard deduction on your tax returns. Be sure to listen to Episode 39 for more information in this scenario.
This is complicated, so you may decide to get a consultation with a tax professional. You can sign-up for a tax consultation with Timalyn. There is a fee, but you’ll have a full hour for her to review your specific situation and give you a diagnosis. You can later decide to hire her or you can decide to hire another tax professional. Either way, you’ll have solid advice and will be better prepared to take the next step.
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 38, 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.