In a word, NO. I am amazed at the number of people who ask this question. If you earned money, you must pay taxes on it. Every day in my job as an Enrolled Agent, I have clients who mistakenly believe that my job is to help them not pay their taxes.  My job is to represent them before the IRS.  To talk to the IRS on their behalf and to be sure they are aware of their rights as a taxpayer. It is also a part of my job to hold to the codes set forth by the IRS.

As an Enrolled Agent, we have to work with in the rules and guideline set by the IRS. So why is representation valuable? Why would you pay for it rather than do it yourself? Because you are paying for experience and knowledge of the IRS’ processes and procedures. An Enrolled Agent works hard to negotiate the best possible deal for you, knowing what is possible and what is simply unrealistic. You are paying for advice as to what options may work best for you in your situation, not for finding a way to avoid paying the taxes you owe.

If you have tax debt that you just can’t pay, there are options, providing you are truly in a situation and you can prove your expenses exceed you income. Not because your want gourmet coffee everyday or to live in a million dollar house, but because your basic living expenses exceed your income. If you find yourself in this situation, Effectur can help . We provide representation before the IRS to help you determine which of our 21 options is best for you.

Contact one of our tax consultants today…for peace of mind and a solution that will work for you.

Below you will find a recent article from CNN that shows no matter who you are, the IRS can and will enforce the law. It also re-enforces why you don’t want to believe the stories you hear about not having to pay taxes. There are not arguments you can offer that the IRS hasn’t heard before and already proved in court. If you are in trouble with the IRS you can contact someone who can help you solve your problems–within the law. You can visit www.irs.govto find a list of frivolous arguments to avoid. Effectur has a staff that can assist you in finding the best resolution possible for your situation. Don;t avoid your tax problems, find someone to help you solve them…legally or you could end up like Wesley Snipes.

http://www.cnn.com/2008/CRIME/01/29/snipes.trial.ap/index.html

Timing of Snipes trial couldn’t be better for IRS

OCALA, Florida (AP) — Even Hollywood couldn’t have written a more ideal script for the Internal Revenue Service than actor Wesley Snipes‘ tax-fraud trial.

At a time when millions of Americans are buckling down to prepare their taxes, Snipes is being cast as a villainous example of the dangers of joining with Internet-fueled activists who claim the IRS has no authority to collect taxes.

Snipes, the star of the “Blade” films and “White Men Can’t Jump,” is on trial with two tax protesters in one of the biggest criminal cases in IRS history, and the agency hopes the media attention on the matter will dissuade others in the “tax avoidance” movement from trying to outwit the government.

“People who do it openly and notoriously, you’ve got to go after them,” said Sheldon Cohen, who was IRS commissioner and general counsel in the 1960s. “Not because he’s that important or the amount of money is that important, but because there are others who may be foolish enough to follow.”

Snipes, 45, could get up to 16 years in prison if convicted on all counts, although sentences that long are unusual.

His two co-defendants are an anti-tax ideologue who refuses to defend himself in court and an accountant who lost his licenses. The trio rested their defense Monday without calling any witnesses, saying they didn’t need to.

“Nobody likes paying taxes, but paying taxes is the price we pay to live in a civilized society,” Assistant U.S. Attorney M. Scotland Morris said Tuesday in closing arguments. “And it’s the law, and that’s what this case is about. It’s about three men who felt they were above the law.”

Defense attorney Robert Barnes conceded Snipes’ arguments may have been crazy, but insisted that didn’t make them criminal.

“Disagreement with the IRS is not fraud of the IRS, is not deception,” Barnes said. “It was an attempt to engage the IRS, to go through the IRS procedures and processes and see who’s right.”

In lengthy filings to the IRS, the three defendants claimed they did not legally have to pay taxes, citing an obscure section of the tax code that establishes that foreign sources of income for U.S. citizens are taxable. Protesters take that to mean only foreign sources are taxable, and wages made in this country are not.

“They string unconnected things together in a way that they’re just not intended to be strung together,” said Chris Rizek, a former Treasury Department lawyer who specialized in tax policy. “And the courts have repeatedly said ‘No, that’s the wrong interpretation, listen to this.’ And they just don’t listen.”

Snipes, who is free on $1 million bond, was paying millions in federal income taxes until 2000 when, according to prosecutors, he accepted the arguments of his two co-defendants. Snipes then began seeking nearly $12 million in illegal refunds for taxes he already paid.

Snipes, alleged ringleader Eddie Ray Kahn and former CPA Douglas P. Rosile were indicted on eight counts alleging tax fraud, conspiracy and willful failure to file returns. Kahn now refuses to leave his jail cell because he believes the court has no jurisdiction to prosecute him.

The government says Kahn founded a group in the 1990s, American Rights Litigators, and a successor group, Guiding Lightof God Ministries, that purported to help members legally avoid paying taxes. Rosile, a former accountant who lost his licenses in Ohio and Florida , prepared the paperwork. Snipes joined their group in 2000.

Witnesses for the prosecution have said up to 4,000 people refused to pay taxes based on the group’s arguments.

The three men claimed the IRS is not a legitimate government agency. Snipes also argued in long, bizarre letters that he was a nonresident alien; that the IRS terrorizes and deceives citizens; and that efforts to prosecute him would cause “increased collateral risk.”

Most tax cases are handled in civil court, because the IRS does not have enough agents or time to pursue criminal charges against ordinary taxpayers who fudge a deduction or a decimal place on their tax returns.

But pursuing the matter in criminal court carries other risks — the burden of proof is higher, and an acquittal would instantly galvanize the tax-avoidance movement, which already enjoys boundless exposure on the Internet.

The IRS has been successful in pursuing criminal cases against the movement’s followers.

Last year, for example, a New Hampshire tax protester vowed to die fighting rather than be apprehended following criminal conviction on several tax charges. Several people were arrested trying to help Ed Brown and his wife avoid capture, and almost all of them were from other states.

Brown and his wife were taken peacefully, but only after agents tricked the couple into surrender.

But there are exceptions. In 2003, FedEx pilot and tax protester Vernice Kuglin was acquitted because the jury found she sincerely believed she didn’t have to pay taxes.

Kuglin’s assets were seized, and the government got its tax money. Despite that, her case is held by some protesters as proof that the IRS is a sham, and citizens really don’t have to pay taxes.

Cohen, the former IRS commissioner, said trials like Snipes’ are important to discourage potential tax scofflaws from defying the government.

“Locks are important on windows to keep honest men from becoming thieves,” Cohen said. “Because a thief can get into a window even if it’s locked, right? But you do that as a deterrent.”

Every tax consultant has a wish list of items they wish their client would do or would stop doing. My wish list is as follows: I wish
Clients would keep their tax records in an organized fashion–or at least kept them!
Clients wouldn’t try to do their own returns
Clients would not ignore notices from the IRS
Clients would disclose all their sources of income before the return is filed
Clients would keep records of all their stock purchases
These are just a few of the items I would like to find under my tree. Clients can really help their tax consultant by providing complete and accurate information.

Make sure you make your tax consultant aware of any changes in circumstances, income sources or expenses. Your tax consultant can help you plan for 2008 to be sure you don’t owe at the end of the year and have taken advantage of all deductions for which you are entitled. To prevent future problems with the IRS taken care of your problems as they occur, don’t put them off.
If you find you do need IRS help, contact Effectur.

I am constantly amazed at how many people overestimate how many exemptions to put on their W4. In case that doesn’t sound familiar, that is the form you sign with your employer to determine how may exemptions you can claim. This determines how much or how little tax is taken out of your paycheck. Keep in mind that while it may seem like a good idea to claim a lot of exemptions so you have more take home pay, this really creates problem when the taxes comes due on April 15. It is always easier to take it out a little at a time rather than owing it all on April 15. Plus, if you can not pay it all then, you will end up owing more in penalties and interest.

Also, the IRS is cracking down on taxpayers who habitually overstate their exemptions. If you continue to owe year after year the IRS can require your employer to lock in the number of exemptions it feels is appropriate. Unless you own your own home you should only claim an exemption for yourself and any other dependents you have. If you are married and your spouse works, each of you should claim one less than you would normally or you will still end up owing at tax time. As always, if you need help determining how to complete your W4, a tax consultant can assist you.

Every day in my job as an Enrolled Agent, I see people who have repeatedly ignored letter they have received from the IRS. They wait until there is a levy on their wages or bank account to respond. If you get a letter from the IRS, don’t wait, respond immediately. Contact a tax consultant or if you need help with the IRS, you can contact a company like Effectur. Whatever you decide to do, don’t ignore the notices. You will save yourself a lot of stress and money but responding promptly.

I am amazed everyday at what people think will not be taxable. Yes, Gambling winnings are taxable. Lottery winnings are taxable, if you win on Survivor, it is taxable!! The IRS is sent information by casinos if you win. You should get a copy of the W2G which shows what you won. If you had losses, you can deduct them up to the amount you won, if you have documentation to substantiate what you lost.