I am not sure how many people like to quote other people, especially their parents, even when they are not talking to their own children. I can honestly say that some things that my dad used to say to his law class every semester actually helped me help someone else. They were more or less the "if you do not learn anything else from me this semester remember these three points":
Now my dad's favorite thing to say to his law students had to do with the movie Its A Wonderful Life. He would usually make the analogy after having the students watch the film that unfortuately we don't life in Bedford Falls. It's Pottertown. It might sound synical but it is a good place to start. Even when dealing with the IRS it does apply.
The 2nd is the you Never sue an empty pocket. It would be quite refreshing if all of the employees at the Collections Division of the IRS had to sit through a couple hours of my dad's lectures. I would settle for half - either Revenue Officer training or anyone who works at the Automated Collection System (ACS). Either half would be great.
Now this brings us to Jack. Again the names have been changed to protect the innocent.
Jack had been going alone up against a Revenue Officer. Jack had gone through a correspondance audit / automated underreporter issue with the IRS and they were now claiming that he owed a pretty substantial amount of money in back taxes, approximately $80,000.00. Jack worked in real estate and had done well leading up to 2007 and then 2008 happened. Jack was also married, with a minor child, and had reached full retirement age.
In Jack's battle with the IRS and the Revenue Officer he ended up having his Social Security check garnished - the IRS had taken 15% of his monthly payment. The IRS had filed Notice of Federal Tax Lien: Form 668. Jack also had three years of missing tax returns.And to top it off the day I got in contact with Jack the IRS had just sent over a Bank Levy. As I would say Jack was on Fire. He really needed help but didn't know who to ask and wasn't sure what exactly his options were or what he might be entitled to. Jack was confident he could handle this on his own even after having his bank account frozen. He was sure if he explained his situation to the Revenue Officer again that he could get the Levy released. What Jack didn't understand is that explaining his situation without my help is what got his Bank Account Taken by the IRS in the first place. He gave someone who works at the Collection Division of the IRS - The worlds Largest Collection Agency - a roadmap to his financials and didn't have the complete knowledge of how to deliver the information. Form 433A can be quite intimitdating - a 6 page financial worksheet. And not everyone knows how to find information on National Standards of Living. Or what expenses might be necessary. The Revenue Officer felt that issuing a Levy to Jack was warranted based on the information Jack had provided.
This is the hard part about this. Sometimes you just have to follow the steps and sometimes you have to put your faith in someone to help you. Jack didn't want to put his faith in anyone, but after going through some more details with him I was sure that I could help. This is where my dad was able to help me help Jack.
"Jack," I said, "Let me tell you about the three things my dad likes every student who takes his course in law school to remember regardless of everything they cover that semester."
"I can't see how this has anything having to do with my taxes" Jack Said.
"I hope it will make sense in a minute" I replied. "The first is that we don't live in Bedford Falls - this is Pottertown." Jack was actually old enough to get this reference without explaining the movie.
"The 2nd is you never sue an empty pocket." Jack shared my sentiment about training the IRS employees this belief.
"And most importantly, anyone in any legal situation that represents themselves might just have a Fool for a Client."
Jack stayed quiet for about 30 seconds. The next words out of his mouth were "How do we get started?" After emailing him over some forms I was able to make contact to the Practitioner Priority Service at the IRS and request his Wage and Income Transcripts as well as make a phone call to his Revenue Officer. I also sent Jack some basice intake interviews for his three years of missing tax returns, and requested his last 3 months of bank statments and copies of his bills. It took two days to receive everything back from Jack, and that day I was able to fax signed completed returns to his Revenue Officer, as well as a properly calculated Form 433A Financial Analysis Worksheet. Jack's Revenue Officer thanked me that afternoon for helping Jack get current with his filing and properly preparing his Financials. He also faxed me over a copy of the Release of Levy for Jack's Bank.
Jack's Revenue Officer declared Jack Currently Non Collectible (CNC) and also Released the Levy on Jack's Social Security Benefits. All within 3 days. Jack had gone through this for months when he was his own representative.
If you or anyone else you know is having an Issue with the IRS taking your Social Security Benifits give me a call at (772)360-4322 or Toll Free at (844)208-7408.
You can always ask for me, or Amy. In case you haven't read any of my other posts - Amy is my wife and she is also an Enrolled Agent. And pretty awesome. You can always get in contact with us through our website as well www.Prodigyfsg.com or on Facebook.
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