BY 3,230% HOLDUP?
Division, said that to correct this problem, the IRS improved telework operations, hired about 3,500 new employees, and transshipped more than 2.3 million returns, forms, and documents.
OCTOBER WIN OF THE MONTH California Landscaper Seeks IRS Help
“We took, and will continue to take, progressive action to address
the backlog of returns. At the same time, we continue to protect the safety and health of our employees and the taxpaying public,” Corbin stated in a letter on Aug. 11, 2021. Additionally, the IRS offered incentive pay and overtime for IRS employees. Having only met 63% of its recruitment goal for processing operations, the agency is still understaffed, causing difficulties processing tax- year 2020 returns.
According to the report, it is projected that the shortage of IRS employees will have an effect on taxpayers looking forward to refunds or which have claimed pandemic business credit. The struggle to get caught up continues.
CASE SNAPSHOT Client: Business lists expenses on a Schedule C — on his personal return Type of IRS Issue: Personal audit of business expenses including cost of goods sold, repairs and maintenance, reimbursements, office expenses, and legal and professional services Tax Years in Question: 2018 and 2019
Is your return still in the backlog? The STRUGGLE IS REAL!
IRS Claimed Liability: More than $230,000 Savings: $187,037 or 81.3% of the liability
An IRS Trouble Solvers client, a landscaping business owner in California with several employees, was audited for the 2016 and 2017 tax year before seeking our assistance. This audit was closed, but then the IRS decided to also look at the 2018 and 2019 tax years as well. In our client’s case, the IRS had assessed the increase in liability due to inadequate reporting and lack of substantiation. When we were hired, the IRS had already concluded the audit, issued their report, and assessed that our client owed over $230,000 in taxes and penalties. First, we secured an extension, thus allowing us time to review the report, gather the appropriate documentation, and create our report to counter all points made by the IRS. We pulled together our “audit football” and forced the IRS to reengage in the review process. By providing the IRS with over 6 inches of documents, we successfully reduced the client’s tax liability for 2018 to just over $42,962.41 and ZERO for 2019. As a result of the “no change audit” (meaning the IRS has sustained all of the items reviewed and no changes are needed) for 2019, this brings an end to the continuous audit cycle, which can happen when the IRS finds an error in the taxpayer’s returns.
ASH, OUP
DIRECTIONS
1. In a large pot, heat oil over medium heat. Add sausage and cook 4–5 minutes, stirring often, then remove from the pot and set aside. 2. Add garlic and onion to the pot. Sauté 4–5 minutes. Add squash, salt, and pepper. Sauté 8 minutes. 3. In a slow cooker, combine sautéed vegetables, sausage, chicken broth, and seasonings. Cook on low heat for 3 hours and 30 minutes. 4. Open the pot and add the kale. Cook another 20 minutes, then add the red wine vinegar and stir to combine. Cook 10 more minutes, then serve and enjoy!
Our client can now return to the business he loves — creating and maintaining a relaxing oasis for his clients — free of IRS problems!
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