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Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1377
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
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Can you help me prepair form 656-L ? Do you haave credential

Customer Question

Can you help me prepair form 656-L ? Do you haave credential and have you done it
what is you rPTIN
Submitted: 2 years ago.
Category: Tax
Expert:  Jax Tax replied 2 years ago.

Jax Tax :

First, a 656-L is a form used for an Offer in Compromise.


 

Jax Tax :

More specifically, a Doubt of Liability Offer in Compromise.


 

Jax Tax :

Thus you are stating that you do not owe what is stated that you owe. If this is the case, the 656-L is not likely your best option in resolving the matter.


 

Jax Tax :

Why does the IRS state you owe and why do you beleive you do not? This will help me determine the better option for resolvin the issue you are having.


 

Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1377
Experience: JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
Jax Tax and 3 other Tax Specialists are ready to help you
Customer: replied 2 years ago.

I am itemized the problem area local audit agent & IRS lawyer did not give me credit.

I own and managing 1 real propertyXXXXXhouse for rental. year 2006, I reported rental income 21000 dollar. but local auditor reported as if I did not made report.

this is malicious wrong report. I spet repair cost in roof and central air condition replace in previous year, I can deduct the amorization cost. but loacal auditor did not gave me these credit. also bacuae of bad tennats, I lost money in this rentl house, Ican claim passive loss 35000 dollar each year. But auditor did not gvave me this credit. I was also engaing in consulting, investing stock market with research lab with borrowed money from banks. I worked with law firms, other consultants, and brokerage firm. we all spend a lot of time and effort but last minute withdraw of large investor make us fail our effort. we all lost money. IRS 1120S department told us that we can deduct business expenses but loacl auditor did not recognized this deduction. I mad amended return\

1040X year 2006, year 2007, and year 2008. According to these report, I did not own any money at all. I worked examination'f office 6 months, examination office told me that I do not owe year 2006,2007 and year 2008, I ow 1812 pus interest. because of mistake of local agent, it triggered the letter of deficiency. I met appeal officer IRS chief cousel and during my initial meeting, I corrected a lot of mistakess for all three years, year 2006, 2007 and year 2008 and drop the penalty. which reduced from @27000 to 15000 dollar. When he brothought back calccalculation in next meeting, there were still mistakes. In other words the pretrial stipitulation was not finined. He told me that he stop the amended return processing. He told me that forget about past. My wife was sick and tired and do not want to deal with this ordeal, I agree with her and sign decision entry paper. a few day later, I asked the motion withdrawl of decision entry

. tax court judge, grant the hearing, I asked the judge whether IRS chier coucle had power to stop amended process. I also mention the wrong report of rental income report of 21000 dollar and decinial of passive loss claim of 250 dolar each year for year 206,207 and 2008. Judge did not answer my question and disapear from the court. after court meting IRS lawyer told me that, Ican go to aply 656 ofer in compromise.

When I caled IRS New York ofice. I file 656-L double of liability and ofer in compromise.

Do I ned third party representation ? or can I handle with help people like you ?

Do I just ned the explanation of circumstances and suporting material or Do I have to file 43A or 43B ? Please answer my question and guide me. In you opinion what percent do I have chance to be acepted and can get the benifit of this program

Myemail adres isXXX@XXXXXX.XXX thank you for your kind asistance.i

 

Customer: replied 2 years ago.

I am itemized the problem area local audit agent & IRS lawyer did not give me credit.

I own and managing 1 real propertyXXXXXhouse for rental. year 2006, I reported rental income 21000 dollar. but local auditor reported as if I did not made report.

this is malicious wrong report. I spet repair cost in roof and central air condition replace in previous year, I can deduct the amorization cost. but loacal auditor did not gave me these credit. also bacuae of bad tennats, I lost money in this rentl house, Ican claim passive loss 35000 dollar each year. But auditor did not gvave me this credit. I was also engaing in consulting, investing stock market with research lab with borrowed money from banks. I worked with law firms, other consultants, and brokerage firm. we all spend a lot of time and effort but last minute withdraw of large investor make us fail our effort. we all lost money. IRS 1120S department told us that we can deduct business expenses but loacl auditor did not recognized this deduction. I mad amended return\

1040X year 2006, year 2007, and year 2008. According to these report, I did not own any money at all. I worked examination'f office 6 months, examination office told me that I do not owe year 2006,2007 and year 2008, I ow 1812 pus interest. because of mistake of local agent, it triggered the letter of deficiency. I met appeal officer IRS chief cousel and during my initial meeting, I corrected a lot of mistakess for all three years, year 2006, 2007 and year 2008 and drop the penalty. which reduced from @27000 to 15000 dollar. When he brothought back calccalculation in next meeting, there were still mistakes. In other words the pretrial stipitulation was not finined. He told me that he stop the amended return processing. He told me that forget about past. My wife was sick and tired and do not want to deal with this ordeal, I agree with her and sign decision entry paper. a few day later, I asked the motion withdrawl of decision entry

. tax court judge, grant the hearing, I asked the judge whether IRS chier coucle had power to stop amended process. I also mention the wrong report of rental income report of 21000 dollar and decinial of passive loss claim of 250 dolar each year for year 206,207 and 2008. Judge did not answer my question and disapear from the court. after court meting IRS lawyer told me that, Ican go to aply 656 ofer in compromise.

When I caled IRS New York ofice. I file 656-L double of liability and ofer in compromise.

Do I ned third party representation ? or can I handle with help people like you ?

Do I just ned the explanation of circumstances and suporting material or Do I have to file 43A or 43B ? Please answer my question and guide me. In you opinion what percent do I have chance to be acepted and can get the benifit of this program

Myemail adresXXX@XXXXXX.XXX thank you for your kind asistance.i There was mistake insteadj of $ 35000, it is 25000 each year( pass loss)

 

Customer: replied 2 years ago.

tax lawyer told me that if I do not file the petittion to us tax court. IRS can do any thing. So I filed petition. mention the incorrect audit and wrong number and mistakes. IRS chief coucle responded me They are all correct in number and legal matter. in pretiral

stipitulation, I corrected many mistakes which prove to be wrong on the part of IRS lawyer and audit. So thus legal response was wrong.

Expert:  Jax Tax replied 2 years ago.

First, filing a 656-L is not going to be successful. It is not the correct way to address the issue.

Your only option is an audit reconsideration which is only available if you did not sign the notice of deficiency.

If the appeals case is still in court, you need to focus there.

I cannot state whether your deductions are correct or not since that is not the issue. Providing proof of such is the issue. I can say, a $35K passive loss is not allowed as it caps at $25K for rental properties on a yearly basis so that is $10K per year which could easily equal you owing $15k over 3 years with penalties and interest.

The point is this. You are wasting your time with the 656. Your only option is to request an audit reconsideration or continue the appeal if open. Again, you are without options if you signed the deficiency letter. Publication 3598 states the process of requesting an audit reconsideration. There is no form. Also, the name is XXXXX XXXXX The IRS will not reconsider any information already provided. They will only review new information that was not previously provided so make sure to state such.

Customer: replied 2 years ago.

The passiv e loss was not $35000. What I meant was $ 25000 dollar. My 1120 S corporation consulting cost of doing business was not recognized contrary to IRS 1120S department told me that I can deduct these expensis. Also IRS ;lawyer stop

the myt amended return year 2006,2007 and 2008 1040X. I asked the tax court judege that does he had that kind power ? jedge did not answer. I was asking legal question.

but no body answer. I work wieh examination offfice, they told me I do not owe year 2006,2007 and year 2008, I owe 1812plus interest. IRS lawyer had power to overuled

the examination office ? ME and my wife income is social security, and pension and annuity about 40.000 dollar and our AGI was was $ 2587, and 25000, and 375000

etc. we did not made much money. we lost money in real estate, and consulting business in this very difficult and confision economic times. 656-L there is consideration for economic disater, right, simply put, we did not made much money

and lost money in rental bsiness and consulting business, and stock market. then I do not have much tax to pay. I need your answer. on this issue.

Expert:  Rachel-Mod replied 2 years ago.

Hi, I’m a moderator for this topic. Your Professional has opted out and I wonder whether you’re still waiting for an answer. If you are, please let me know and I will do my best to find another Professional to assist you right away. If not, feel free to let me know and I will cancel this question for you. Thank you!

Customer: replied 2 years ago.

Dear Mr Mod :

 

Thank you. I called IRS NEW York office, They told me that 50 percent accepted on 656-L 50% was not accepted. Your lawer told me. I should ask audit reconsideration.

The reason why i ask ouble of liability and offer in compromise is that, Iasked legal questio to tax court Judge, he did not answer. I asked whether IRS chief coucle had power to stop my amened retrun 1040X 2006,2007,and 2008. Other CPAS do not know whether he had that kind of power.I worked with examination office 6 months, the result was I did not owe year 2006,2007 and year 2008, I owe 1812 plus interest. According to My amended return, I did not owe any tax. my 1120S corproation consulting,research,

stock investing etc was not recognized contrary to IRS 1120S department approval.

After meeeting, IRS chief coucle told me I should fine 656-L( double of liability and offer in compromise). can I get third party representation ? and which course of action take in this juntion ? My email address is XXXXX@XXXXXX.XXX my day time cell number is XXXXX work phone(NNN) NNN-NNNNI wrok from 9:00am-4:00PM M_F EST.

Expert:  Rachel-Mod replied 2 years ago.

Sometimes, finding the right Professional can take a little longer than expected and we thank you greatly for your understanding. We’ll be in touch again shortly

Customer: replied 2 years ago.

Thank you. Mal practice of IRS audit agent, AND DECEPTION OF citizen triggered the

letter of defiency which was illegal. IRS lawyer was against all outside tax professionals

and CPA. and many IRS inside people such as 1120S department,examinations office

results. He overuled and He stopped My 1040X amended return year 2006,2007, and year 2008. Iasked the judge in US tax court , he did not anser my question whether

IRS lawyer had that kind of power. My business assoicate told me that I am victimized

by IRS

Expert:  Megan C replied 2 years ago.
If you feel you are victimized by the IRS, you need to discuss your case with an attorney who take your case on and fight it in the legal system.

Unfortunately, we can't give you direction on your case because this is more or less for informational purposes only. The situation you have given is far too involved to give you a proposed outcome online.

To answer a later question you had - YES! You need third party representation. This is the best route for dealing with the IRS. Unfortunately, if you signed the deficiency notice there's nothing that you can do.

I notice in your question that you are fighting over $1,812? or was there a number missing? If it's only $1,812 then I would probably recommend you just pay the $1,812 because if you go fighthing this thing, it might cost you a lot more than that.
Customer: replied 2 years ago.

 

It is not $1812 doolar plus interest. IRS lawyer changed the amount to be 15000 dollar plus interest, total amout about $ 19500 dollar. I talked with IRS philadelphia office.today. Mr. Glenn told me that 25% get acceptance for 656-L. He told me that

if you choose to take this option, prepair financial information 433A & 433B. They are targeting my equity in my real estate. I am in the process of how to applying the audit

reconsideration. to whom should I direct my communication ? If you know this information and the cost of third party representation. Let me know. My email address is XXXXX@XXXXXX.XXX and my cell phone 301-9o6-6368.www.justanswer.com

communication system work very well. it is very hepful. thank you.

Expert:  Megan C replied 2 years ago.
We don't offer third party representation. However, you can contact your state bar association or any CPA in your area and they can help you. Most bill by the hour, anywhere from $100-$300 depending on where you are at.

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