WEBVTT
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The topics and opinions express in the following show are
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solely those of the hosts and their guests and not
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those of W FOURCY Radio. It's employees are affiliates. We
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make no recommendations or endorsements for radio show programs, services,
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or products mentioned on air or on our web. No
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liability explicitor implies shall be extended to W FOURCY Radio
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or its employees are affiliates. Any questions or comments should
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be directed to those show hosts. Thank you for choosing
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W FOURCY Radio.
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Barry G.
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Fouler EA brings you tax talk for you right here
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on W four CY Radio and talk for TV. As
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an enrolled agent and a national leader in tax resolution
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as well as Trucker bookkeeping and tax planning. With over
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thirty years of experience, Barry will break down taxes, bookkeeping,
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tax planning, and tax relief for individuals and businesses just
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like you. So let's have some tax talk for you
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with your host, Barry G.
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Hey, Good morning and welcome man. We just finished a
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great show with Asked the Experts nationwide program they were
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also broadcasting on TikTok's. We had a lot of great questions.
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So if you've come over from Ask the Experts. Welcome.
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Steve O there at the end was talking goes man,
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how are you going to do this? You just did
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an our program with us, and now you're rolling into
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tax talk for you with another hour program. I told him,
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as said, man, tune in just like everybody else to
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hear our program every Monday at ten am Eastern time
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here on W four c Y Radio and you can
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find out how we do this. We just enjoy helping
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talking about taxes. And today, you know, of all days, God,
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what a way to start your Monday talking about what
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the I R. S Collection cross. So you know, if
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you don't owe the IRS, there is no collection process. Okay,
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maybe an audit or something like that that could happen,
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but they're not coming after you for money to owe
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because you don't know anything. But when you owe money
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to the IRS, you know whether it's your very first
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time ever doing it. IRS has a structured election process,
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so this is structured by law, so they've got to
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actually do these things. Now. As we talked about and
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asked the experts, you know, if they send out the
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letters and you've moved and you don't get the letters, well,
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it's your fault because you didn't give them an updated address,
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and it's considered deemed received whether you've got them or not.
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If your spouse gets the letters and throws them away,
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then they are still deemed received, so you've still received them,
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and therefore it continues the collection process down the road.
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And you will see most of these letters at the
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IRS n S. If you were married filing joint, they're
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going to send them to both spouses. So, yes, it
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may be redundant, Yes it may be multiple mailings, but yes,
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it's considered their process of actually doing collections against you
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and your spouse when you're married filing joint. Now, if
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you were married filing separate, only the spouse that is
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owing the money going to receive that letter. If you
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were single, of course it's just you or head of household,
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it is just you. So you know, you can look
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at how the IRS is doing this collection process as
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against everybody who owes money on that tax return. So
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when they're doing this collection process again, if you're married
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filing joint, it's going after both you and your spouse
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that were both signers on the return. Now, remember every
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return has two signature spots. One for the taxpayer and
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one for the taxpayer spouse. So depending on how you're
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listed out there, you still both have to sign and
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take responsibility for that return. So we can also talk
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maybe you know, later next week about innocent spouse. If
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something happens that you owe money and you didn't really
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have the opportunity on it, you might potentially, you know,
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fall for innocent spouse. But again, until you receive that,
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you are both jointly liable for that tax debt on
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that joint filed return. So if you don't pay your
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tax when you file your tax return, you're going to
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receive a bill for the amount you owe, and that
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bill actually starts the collection process and then it's the
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process is going to continue until your account is satisfied
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or the IRS and no longer legally collect the tax.
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So the first thing the IRS is going to do
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is send you a letter CP fourteen, which is their
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initial demand. It's the first notice that you are going
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to receive when you owe the taxes, and they're demanding
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your payment for the balance plus penalties and interest. Now,
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that first notice is going to explain the balance due.
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It's going to include the amount of tax it's going
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to show how much in penalties, how much interest has
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accrued on your unpaid balance from the date the tax
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was due, which is April fifteenth. Then the unpaid balance
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is continuing to be subject to interest that compounds daily
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and a monthly late payment penalty up to the max
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moment allowed by law. So at this point it's in
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your best interest to pay your full liability as soon
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as possible. Hey, you got the money, pay it prevent
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more interest and more penalties from accruing, and you know
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it'll help you minimize those charges. Now, if you don't
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have the money, you're going to be like many, many,
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many many taxpayers that we know, and you are going
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to probably ignore it. So that does not solve the problem.
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Sticking your head in the sand and ignoring it. Throwing
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that envelope away with the IRS notice doesn't help you
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one iota across the board. To reduce penalties and interest
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on this, you might consider methods of fully financing payment,
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maybe through alone, mortgage, you know, helock, even possibly credit
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cards depending on your interest rates over there as well,
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all possibilities of things that are happening. But if you
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don't have any of that, then maybe it's a payment
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plan with the I R S. What you always want
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to do before you go on finance is look at
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the interest rate with the IRS, look at what the
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penalties you're going to be, and make a determination what's
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going to be your best route. You're getting this paid now,
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you know you can start addressing this and put it
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in a payment plan. You can start addressing this immediately
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as soon as this has been assessed against you, so
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that you can stop the IRS collection activity against you.
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And it's not necessarily going to stop all the letters
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that you get from the I R S. As a
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matter of fact, you're going to get even if you
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went into an installment agreement. You know date one on
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your debt, they'll send you a letter every year reminding
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you of how much money you owe, just so that
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you are kept up to date, how much you've paid
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on this debt and how little it's gone down because
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of the interest and penalties they've continued to accrue until
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they hit the max penalties allowed by law, and then
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the interest will continue until it's paid off. So it
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becomes a very very hard item. And if you just
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want an installment agreement, you can either go online and
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do an installment agreement for full pay, or you can
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file it for ninety four sixty five and do an
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installment agreement quest and mail it in with your bill,
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and if it's been to full pay it they're going
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to accept it. You can bomb with your life and
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have it full paid. However, if you owe more than
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fifty thousand, then that they're going to reject it and
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ask for a four to thirty three. So that is
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just the beginning of your fund and I use the
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term fun closely, so it's just the beginning tip of
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the iceberg of the I r S collection activity. It
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continues to mount and build from there. So you get
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that first initial letter, that first reminder within you know,
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the first five to six weeks you're going to you know,
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get that notification. And then five to six weeks later,
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if you haven't done a payment, you haven't set up
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installment agreement, you haven't had any response whatsoever, you're going
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to get CP five oh one notice as in an
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upper right hand corner of every letter. They're going to
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have that CP number. You can actually track these things
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through and see what notice you're at to know how
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bad we've got to take that next collection activity to
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stop the IRS. But you're going to get CP five
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zero one, which is your first reminder basically reminding you, hey,
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you have this ode, please pay this Here's the date
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you need to pay it by to avoid additional penalties
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and interest, and they'll calculate all the penalties and interest
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up to that date so you know you can get
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that tax debt paid as soon as possible. So you know,
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the IRS is trying to find ways to make sure
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that you remember that you owe them like you're gonna forget.
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But out of side, out of mind, right if they're
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not doing collection activities and sending your notifications, that's the
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last thing that's on your mind is paying Sam, even
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though it's on your mind that Uncle Sam may take
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items from you. Now, we're gonna take quick break where
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you continue talking about IRS notices and where we continue
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to move as we go down the road. We're going
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to do that right after them.
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We have only scratch the surface of today's show. Please
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stand by as Barry G. Fowler will be right back
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with tax talk for you. If you own the IRS
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or are going through an IRS audit, don't go at
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it alone. Call Taxation Solutions, Tax relief at eight eight
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eight nine three zero one zero one six. We are
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your solution for IRS, debts, audits, back taxes, garnishments, leans
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and levees. Whether you're an individual or business, you need
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a solution and a strong, aggressive tax resolution. Don't let
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the IRS walk all over you. Stop the IRS now
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call eight eight eight nine three zero one zero one
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six or go to Taxationsolutions dot net now for a
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free no obligation consultation. Let's get back to tex stalk
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for you with more tax stock once again. Here's your host,
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Barry G. Fallo.
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Hey, welcome back. You know you get an I R
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S letters. Which letter are you on? Tell us the
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letter number in you know, in the chat, and let's
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talk about your I R S letter and what you
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should be doing with that I R S letter today
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besides throwing in a circular file here. You know, what
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we want to do is make sure that you know, hey,
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if you owe the I R S, you're finding the
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way to uh make collections work for you and getting
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the best deal you know possible. You know, that's what
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the name of the game is. You know, if you
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want to call dealing with the I R S a
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game you know, it's one of those games that you
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could easily lose if you're not careful in what you're
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trying to do when the I R. S Is coming
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at you for collections. So you receive that first note
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to CP fourteen telling you your initial bill, here's what
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you owe penalty and interest to pay it. Then you
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got the CP five oh one, which is your first reminder. Hey,
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wake up, Joe. You know you still owe us money.
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It's been you know, five to six weeks since we
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sent you the first one, and we haven't heard from
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you and you're not paying us. Then you've ignored that one,
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and you get CP five oh three. This is your
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second notice, and that sent four to six weeks after
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the CP five oh one. So you got your first
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notice somewhere around four or five weeks after you filed
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and it was accepted. Then five to six weeks later
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you got your second notice, and then another four to
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six weeks you get your third notice. Now this notice
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is being a little more demanding, telling you more and
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more that you need to start addressing this problem immediately.
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You know they're not taking any of their action aroun
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at this point other than notifying you they're about to,
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and you know that next action is going to be
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the notice CP five oh four and it becomes that
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final notice of intent to levy. This is serious. This
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is telling you that the IRS intends to seize your
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state tax refunds and other assets such as bank accounts, wages.
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If you're a contractor, they can go after those. You're
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working for that ISSUU ten ninety nine's so they can
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go after all those people right there and basically start
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those collection activities. This is serious, folks. This is not
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a stick your head in the sand and hope and
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pray that they don't levy, because maybe you're hoping and
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praying that they don't know where you're bank. You know,
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now yours can find it out. As a matter of fact,
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you know, we were dealing with a client who i
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RS was working on offer and compromise with us, and
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they came back to us and told us that, hey,
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he had other accounts at another bank that potentially could
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be still open. They don't know, but we had to
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get documents proving that those accounts were closed. So they
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were able to find accounts out there that had been
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closed for a couple of years. So don't think that
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they can't find the accounts where you have money, and
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don't think the I r S when they do finally