Steve Klitzner, the IRS Problem Resolution Attorney, joined Good Morning Keys on KeysTalk 96.9/102.5FM this morning to talk about tax problems.
You need competent help and representation when facing the IRS.
Klitzner said, “You really do because as I always say the IRS won’t tell you your rights. They just want to collect the money. You need to exercise your rights so that you get a fair deal. There’s a document, a long document, it’s a manual, and it’s called the Internal Revenue manual. This is the IRS playbook. This is something you need to know so what the IRS can and can’t do and they’ll deviate from that playbook. They don’t always follow it and it’s my job to hold their feet to the fire.”
Klitzner has been admitted to the United States Supreme Court.
He said, “When I was a young lawyer I wanted to put as much on the wall as I can, so I became a member of the United States tax court where I do practice a lot in Southern District of Florida Federal District Court. These were very nice things. But nothing was nicer than having a document saying that I was admitted to the United States Supreme Court. So when I was a lawyer for five years, I had my boss sponsor me and I got my little certificate that I proudly hung on the wall saying that I can actually practice at the United States Supreme Court. So a couple of years ago, when I was done the Internal Revenue Service Advisory Council, and I met with the IRS in Washington, DC several times a year, I went over to the Supreme Court the day before our first meeting started, because I wanted to go take the tour. I’m a member, let me go through here. So I get there, it was a little late in the afternoon. As I get there, the door’s closing to the Supreme Court courtroom and the gentleman in front of it was standing there. He had just closed the door, and I walked up and I said, I’d like to go for the tour. He said, well, everyone just got in. That’s the last tour of the day. I’m sorry, you have to come back tomorrow, which I couldn’t do. I said, but they just walked in. I can just walk in right behind them. He said, no. Once they’re in, nobody else can go in. I said, but I see them. They’re right beyond the door. I’ll be very quiet. I’ll open up the door, very quietly, I’ll walk in. No one will even though I’m there. He goes, can’t go in. That’s it. Once the door is closed, it’s closed. I said, is there anybody I can talk to? He says I am the final word. I’m sorry, you can’t go in. I was very upset with that. But then I realized something. After all these years of being admitted to the Supreme Court, I finally had a chance to argue my case at the United States Supreme Court. Now I lost. He didn’t let me in. But how many lawyers can say they were able to argue with the Supreme Court? Not that many. I’ve never been in the Washington, DC criminal court. Had I thought about that, maybe I would have taken that leap. But that was my one chance. Very few cases, of course, ever go to the US Supreme Court or get argued there. But I had my chance and just couldn’t make a good enough argument. If he would have allowed me to give him a written argument, maybe I would have had a chance. But he said get out.”
If you get a letter from the IRS, it’s important not to ignore it.
Klitzner said, “Because a lot of those letters give you rights that expire after a certain period of time, sometimes 30 days, sometimes 90 days and once they expire, my job becomes a lot more difficult. We no longer have an absolute right to stop the IRS. We have to kind of play defense and you never want to play defense with the IRS. You want to be able to have the leverage so that they can’t do anything until you’ve had a chance to make your argument. I do pretty well for my clients, much better than I do for me when it comes to arguing their cases.”
If a taxpayer thinks they don’t have enough money to pay the IRS, how will they afford the Tax Solvers?
Klitzner said, “I always charge a flat fee, and I work with my clients with paying me. I can’t always wait for them to pay me in full, because by that time, they may be homeless by the time the IRS gets done with them. So I get started right away, and we work out something because when someone says, well, there’s not much they can do, I don’t have anything. That doesn’t mean the IRS won’t grab whatever it is in your bank account, whatever your wages are and they could do that, even though you don’t think you have anything to pay them. You probably don’t, there’s a good chance you don’t. But unless we show the IRS what you do and don’t have, if they’re ignored, they’ll just start taking things, and then they’ll deal with it from there. A lot of times, the IRS is sick and tired of contacting the person, calling them, writing them a letter and they feel okay, I’ve got to get their attention. Let me just start taking things. And that’s what we of course, have to avoid all the time.”
There is a 10-year look back on unpaid taxes.
Klitzner said, “There are certain things that extend the 10 year period of time, one of the first things I do, especially when I see older years are owed, is figure out when does that statute of limitations run? Every year, my clients save millions of dollars with the statute of limitations, where they’re under the radar or the IRS, we get the IRS just to give up on them. Because there’s nothing to get, and ultimately the 10 years runs and we pop the champagne because that truly gives someone a new lease on life, that 10 years is over. When they’re on the radar, and the 10 years are coming up, now it’s really a fight against time because the IRS is trying to protect themselves and get as much as they can before their time limits up.”
Corporate taxes and payroll taxes are also an issue.
Klitzner said, “Even if you owe payroll taxes, even if you’re a corporation, you’re going to be responsible for the portion of the payroll taxes that you withheld from the employees for Social Security, Medicare and withholding. The IRS looks at it and says wait a minute, you gave your employee all their money, and then you held some in trust for us that you withheld from them, give us our money. Now most of the time, the business doesn’t have the money. That’s why they didn’t pay it, but the IRS looks at it as you stole our money. We want that from you personally. So if you owe $100,000 in payroll taxes, $60,000, $65,000 of that amount of part of the whole will be or could be your personal responsibility. The big trick with payroll taxes is we’ve got to get it just like any other tax. We have to get it under control going forward. Then we can deal with the past. It’s much easier to deal with the past once the IRS knows that from here on out, you’re going to be compliant, file on time, pay on time. So that’s the big secret. There’s many businesses we have, where the IRS is going after him, they’re levying the business or levying their receivables. Once we get involved and get them current, the IRS will put the past not collectible because they can’t pay it. Just be good going forward.”
Could a change in the federal administration see a change in taxes?
Klitzner said, “I really don’t know that whatever happens in Washington in the fall is going to matter, especially short term. If you’re a politician, if you’re running for office, you always want to say the things people want to hear and the best thing to say is we’re getting rid of the IRS, don’t worry about it. The reality is, is the IRS is the only agency that collects money for the government. They can’t get rid of it, nor will they and they’re not going to give everybody immunity who owes the IRS money. So they’re still going to owe, the only question is, is what direction the IRS is going to take over the next few years. They do have additional resources, they do have additional money. They have hired new people throughout, including collectors and, and auditors. But I don’t really see that changing. They say they’re going to go after the highest earners. But their idea of higher earners may not be what the average person, an average person may think, well, I’m not a high earner and in fact, under the IRS, they really are.”
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