IRS Trouble Solvers - May 2024

Take a look at our May newsletter!

Thinking Outside the Box CREATIVE TAX STRATEGIES CAN RESOLVE IRS CHALLENGES

Each day, my eyes find their way to a canvas hanging on the wall that reads, “Think Outside the Box. Think Different.” The words are complemented with an image of a tic-tac-toe board. The Xs are two inside the box and one outside the box, and the ones inside the box have a red strikeout through them. Creativity, appropriately so, doesn’t have one uniform approach. When we look at tax resolution, it’s a puzzle. We have to look at each of our client’s troubles differently. Some cases that come to us present more challenges, pushing us to be inventive in our strategies. While we adhere to rules and regulations, we often need to think outside the box. For some, we may opt to be offensive, and for others, we act in a more defensive manner. Strategy involves some outside-the-box thinking, but we always ensure we work inside the box from a legal point of view. Creativity can be conveyed in traditional ways, such as artwork, photography, sculpting, poetry, or music. However, creativity goes beyond that. In life, there are multiple ways to take the pieces of a particular puzzle and put them together in the best way to achieve a better outcome while utilizing all the tools and solutions available to us.

Internal Revenue Manual (IRM), and they must comply with the guidelines within that manual. On our end, we become as familiar as possible with this IRM and the guidelines all IRS employees must follow. I consider this their playbook. From here, we develop strategies to take advantage of their requirements for the benefit of our clients. Knowledge is knowing what you know and understanding what you don’t know — wisdom is knowing the difference between your knowledge and understanding. That’s why we must be wise and creative with our strategy for each individual case that falls into our laps so we can achieve the best outcome for our clients. Just like the people behind the cases, no two situations are alike — we must get creative and adapt! Like the canvas on my wall, every client has a different set of circumstances. At IRS Trouble Solvers, we don’t shove them in a box. Instead, we build a customized box for their individual needs and circumstances. That’s what thinking outside the box really means. On May 30, we celebrate National Creativity Day. This month, let’s embrace our creative side and focus on thinking beyond the norm — step outside the box and explore! -Ben Golden

“Knowledge is knowing what you know and understanding what you don’t know — wisdom is knowing the difference between your knowledge and understanding.”

Our role at IRS Trouble Solvers encourages us

to be creative every day — we are always searching for new

MAY 2024

and innovative ways to approach situations. The IRS provides each of their employees

with a manual known as the

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The IRS is cracking down! In a widespread attempt to reduce financial misconduct, the IRS has initiated rigorous investigations into 11.5 million small businesses nationwide, scrutinizing their use of COVID-19 relief funds, specifically from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). A team of 30,000 agents has been dispatched to ensure the $1.2 trillion designated for payroll support was not misappropriated. Concerns exist that suggest a staggering 70% of these funds may not have reached eligible employees, but rather were diverted by business owners for personal enrichment. The Department of Justice has already prosecuted many cases of individuals flaunting wealth in several high-profile cases, with many more to come in an effort to reroute the funds to the rightful claimants. This aggressive IRS campaign not only aims to recover misappropriated funds but also to regain public confidence in government relief efforts. However, IRS Steps A NEW ERA OF AUDITS A

PAW-SOME ADVENTURES GEAR UP YOUR PUP FOR A HIKING ADVENTURE

Setting out on a hiking adventure with your furry friend is a rewarding experience, but ensuring their safety and comfort on the trail requires careful consideration of essential gear. Before heading out, consider your dog’s unique needs and preferences so it’s an enjoyable and bonding adventure for you both. Here’s an introduction to some must-have hiking gear for your canine companion. Food and Water One of the most important aspects of hiking is staying well-nourished and hydrated. Packing more water than you think may be necessary is crucial, especially on a trail where natural water sources may be scarce. An ample supply of dog-friendly food is also essential, with the quantity adjusted based on the hike’s duration. A collapsible bowl will be handy for feeding your canine companion during breaks. First-Aid Kit Safety should always come first. A dog first-aid kit is indispensable for addressing unexpected issues on the trail. These compact kits typically include dressings, bandages, and tools for removing ticks or thorns. Being prepared for minor injuries ensures you can safely complete the hike without making any injury worse. Boots While some dogs may resist wearing boots, they can be a lifesaver in challenging terrains. Opt for boots that protect without compromising comfort. Though you likely may avoid trails with terrain that could harm your dog’s paws, having boots in your pack is, at least, a proactive measure for unforeseen circumstances, ensuring your canine companion’s paws are protected if needed. Waste Bags Be responsible out on the trail. That means bringing poop bags. Attach them to the outside of your backpack or tote bag for convenient access once your dog has completed its business. The “leave no trace” practice will help maintain the pristine beauty of the trail for everyone to enjoy. Emergency Harness Preparedness is critical, and an emergency harness adds an extra layer of safety. A proper harness will allow you to carry your dog on your back in an emergency. This versatile harness ensures that you can provide assistance in challenging situations.

there are broader economic concerns, including apprehensions over market volatility and the recovery’s trajectory.

The agency is not only targeting

business owners. With thousands of new hires, many of whom are

SPRING HERB SOUP WITH ORZO AND PANCETTA Inspired by FoodAndWine.com

INGREDIENTS

• • •

3 tbsp extra-virgin olive oil 4 oz pancetta, diced 1 medium yellow onion, finely chopped Salt and black pepper, to taste 1/2 cup dry white wine 1 cup uncooked orzo 2 large garlic cloves, minced

• •

8 cups chicken broth

1 15-oz can cannellini beans, drained

1/2 cup chopped fresh chives 1/4 cup chopped fresh tarragon

• • • • •

• •

1 1/2 cups chopped parsley Pecorino Romano cheese, grated (for garnish)

1 tsp fennel seeds

1/2 tsp crushed red pepper

Lemon wedges

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Coming Out on Top WIN OF THE MONTH

specifically trained for enforcement roles, the IRS is ramping up its capabilities to scrutinize tax returns more closely. This expansion is a response to the backlog created by the pandemic as well as a strategic move to enhance compliance and ensure proper tax revenue collection. For taxpayers, this means the margin for error is shrinking. The increased personnel likely means more audits, ranging from simple correspondence checks to more comprehensive examinations of financial records. This heightened scrutiny could particularly impact small-business owners, gig workers, and those with complex tax situations. Taxpayers should prepare for this new reality by maintaining meticulous records, understanding their tax obligations, and possibly seeking professional advice even before any audit notice arrives. The message is clear: With the IRS reinforcing its ranks, accuracy in tax filings has never been more critical. Being proactive in compliance and ready for possible audits will help mitigate any Up Game AND SCRUTINY BEGINS

CASE SNAPSHOT

Client: Individual taxpayer Type of IRS Issue: Personal tax — Form 1040 Tax Year in Question: 2013 IRS Claimed Liability: $11,000 Savings: $11,000 + 2020 refund and previous Utah refunds

potential issues and provide peace of mind in a time of increasing oversight!

When our client, a Utah resident, filed his 2013 return, he filed it incorrectly and, in turn, showed he owed money that he did not owe. His Supplemental Security Income (SSI) was garnished, and he was levied. To stop the bleeding, we negotiated a Currently Not Collectible (CNC). While in CNC status, the client voluntarily made payments each month to reduce the balance due. His account was moved from CNC, so we had to negotiate a Partial Payment Installment Agreement (PPIA) to stop the collection

actions of the IRS again. We filed an amended 2013 return, and the IRS took three years to process it. Thus, we involved the Taxpayer Advocate. Once involved, the Taxpayer Advocate Service (TAS) expedited the processing of the amended return, and our client no longer has a balance due to the IRS. We anticipate he will receive refunds for the past payments he made from the Installment Agreement (IA) and for past refunds the government kept from his returns.

DIRECTIONS

1. Heat oil in Dutch oven over medium heat. Add pancetta and cook 4–6 minutes. Add onion, salt, and pepper; cook until softened, 8–12 minutes. 2. Add wine and cook 4–5 minutes. Add orzo, garlic, fennel seeds, and red pepper; cook, stirring constantly, 2–4 minutes. 3. Add broth; bring to a boil. Reduce heat and cook until orzo is al dente, 8–10 minutes. 4. Reduce heat to low. Stir in cannellini beans; cook about 2 minutes. Remove from heat. Stir in chives, tarragon, and parsley. Season with salt and pepper. Top with cheese and lemon.

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1 Harnessing Creativity to Tackle the IRS 2 Paws and Paths Tightening the Reins: IRS Boosts Enforcement 3 Spring Herb Soup With Orzo and Pancetta INSIDE THIS ISSUE

Win of the Month

4 How to Analyze and Interpret Trends in Forex Charts

Read Trends Like a Pro for Smart Forex Investment

Investors buy, sell, and exchange real-world currencies through the foreign exchange market (forex or FX). It is substantially distinct from other markets:

If you’ve invested in forex, you’re looking for these trends. They’re among the most critical factors determining when you buy or sell.

It’s the largest financial market in the world.

• Uptrend: Prices trend toward a higher price, like climbing a mountain. This is the time to buy. • Downtrend: Prices drop downward, like skiing the aforementioned mountain. This is the time to sell.

• It determines the exchange rate for currencies around the world. • It’s open 24/7, so trading can happen at any time of the day. • Currencies are always traded in pairs, one country’s money for another. • Currencies are a lot less volatile than other markets. Some currencies, like the U.S. dollar or Japanese yen, are “free-floating,” which means their relative value is determined by free-market forces, such as supply-demand relationships. Other countries, such as Saudi Arabia and Panama, are “fixed float,” meaning a country’s governing body sets its currency’s value relative to other currencies. There are several advantages to trading on FX, including fewer rules, no central body oversight, and no fees or commissions. There are also disadvantages, like being unregulated, relying on the currency’s appreciation, and traders not having complete control over their trades. Information is an essential ingredient to achieving a profit. Investors must have data to speculate successfully, so they must read charts. The shifting trends value is constant; charts help investors visualize them to make the right decisions.

While many websites offer online charts, developing this analytical skill gives you a deeper understanding of the market.

1. Open up a candle chart and look at the currency’s current value. Candle charts depict price as a line with peaks and valleys. 2. Follow the line backward and find two recent highs and

lows. Prices are constantly changing, but you must determine the overall direction of the currency’s value.

3. Figure out if these points are going upward or

downward. This determines the timing of your trades.

Once you plot the chart, you can see where the currency’s value is going and invest accordingly. The forex market is full of opportunities. Solid chart analysis skills are necessary to take advantage of them and make a profit.

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