Latest News on Denver Accounting & Taxes

IRS Audits from Denver Accountant Bloch Rothman and Associates

I’m currently in the process of closing two audits with the IRS.  This may be the place where I can add the most amount of value for my Denver tax services.  A little history up to this point: One of these audits involves a small business and has been going on for almost 17 months since the client was first contacted by the IRS.  The second also involves a small businesses and has been going on for almost 8 months.   I expect both clients owing thousands and thousands of dollars when the dust clears.  The main reason is due to bad records and poor bookkeeping.

Our Denver accounting firm up until now has done a great job with both audits by only supplying the necessary information that the IRS has requested and never letting the IRS agent talk to our client.  By doing this, we minimize the taxpayer's exposure to owing more money.  We also minimize what the IRS looks at, which means the audit is over sooner.

I’m expecting to get ending reports from the IRS in the next couple of weeks on both audits.  After receiving the reports, our work here at Bloch Rothman and Associates begins.  We go through every line item and check to make sure there are no errors in your audit.  When there are, we go back to the agent and/or manager and work with them to remove these items from the report.  When the report is correct, we then try to abate penalties.  One of the common penalties is a 20% accuracy penalty.   If you owe $100,000, this penalty is $20,000.  The thing that amazes me is almost every time we try to abate the penalties, the IRS agent tells us that no one has ever asked to have the penalties abated.  We always do, and many times we are successful.

If you are currently going through an audit where things don’t seem to be going well, please give us a call at Bloch Rothman and Associates.  We offer free Denver tax consultations and can help to answer questions that you may have about the IRS auditing process.

I had a somewhat interesting client in my office in Denver, CO last week.  He was a tax protestor who had not filed his taxes in more than two decades.  He had always worked underground so neither the IRS or state of Colorado was after him.  He came into my Denver office and wanted to file his tax returns for the past three years.  I asked him why and his reply was that he was in love with a woman from a foreign country and wanted to bring her into this country to marry her.  His attorney said he would need to have his taxes filed and paid for the past three years and show that he could afford to take care of his fiancé.  

Bloch, Rothman and Associates not only can help you file your taxes for love, but we can help you file them for whatever reason you may have to file.

Call us today for a free Denver tax consultation.

“I want my life back. How big does this pile have to be?”
—Skyler, Breaking Bad

As I notice that the final season of Breaking Bad is airing soon, I’m reminded of what had happened with the IRS in the series with Skyler paying the IRS hundreds of thousands of dollars for her ex-boss.  Did she really have to do this to protect herself?  Probably not. 

When someone is audited by the IRS, it normally ends with the IRS giving you a form to sign saying that you agree with the changes and that you owe the amount plus any penalty and interest that will be added. 

The IRS agent will try to collect all money due, but that is not really their job.  Their job is find additional taxes you may owe and assess you that amount of money, not collect.  Collection is the job of the IRS Revenue Agent.  Revenue Agents work for the collection department of the IRS known as ACS or Automated Collection Service. 

Generally if the IRS Auditor does not find fraud during the audit, it is not up to the IRS Revenue Agents to find criminal charges when the case is handed over to them. 

Once Skyler’s boss agreed to the charges and signed the report, fraud was not an issue anymore for the IRS and Skyler did not need to bail out her former boss. 

This would have changed the financial position for the White’s and maybe would have changed other outcomes in the series if it had been properly represented. The final season of Breaking Bad airs Sunday, August 7th. 

If you are involved in an IRS audit or collection, Please give us a call at Bloch Rothman & Associates today to recieve Denver tax assistance from a local Denver accounting firm you can get to know and trust. We are experienced Denver accountants specializing in IRS Audits, Collections, Tax Resolution services and more. 303.321.7160

Denver Tax Topics: IRS Collections—Step 1 in the Collection Process

April 15, 2013 may very well have come and gone, but if you are involved in a tax collection situation, you certainly haven't forgot about your taxes or the Internal Revenue Service. At Bloch Rothman & Associates, your Denver Accountant, we are here to help guide you through the often times confusing and misunderstood IRS collection process. 

We want to take this time to share a series of Denver tax topics, our first series featuring steps in the IRS Collection process. This series will touch on topics like what to know and do when you are unable to pay the full amount you owe with your tax return and the steps that follow to maintain good standing with the IRS. 

We'll begin our series with a hypothetical scenario: You filed your 2012 tax return on time but you were unable to pay the full amount you owed with your return. 

So, what's next? Since you did not pay the full amount due with your tax return, the IRS will begin what is known as their collection process. This collection process begins with a written notice of the amount you owe that is mailed to you. This is also known as an official bill from the IRS. 

Your bill will demand payment in full for your 2012 tax. But wait - what if you still can't pay the full amount of tax due? Stay tuned for Step 2 in our Denver Tax Topics in IRS Collections.

At Bloch Rothman & Associates, we are here to help assist you in this type of tax collection process. We handle everything from IRS Audits & Collections, to Denver tax preparation and Denver bookkeeping and payroll services.  Call Today: 303.321.7160

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We are a small, local firm that guarantee personalized, professional accounting services in Denver. Bloch Rothman also handles other financial services, such as tax preparation, audit services, bookkeeping and payroll!

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