The Internal Revenue Service (IRS) is a bureau of the Department of the Treasury that is responsible
for collecting taxes using the rules and procedures set forth in the Internal Revenue Code.
The IRS has broad powers given to them by law to collect taxes. Whether you feel that you owe taxes
or not, if you receive any correspondence or other communication from them, you should promptly
address the matter and enlist the assistance of a professional, especially if the amount at issue is large
or if there are threats of criminal proceedings.
It is not recommended that you handle IRS issues without obtaining professional help. Each case has its
unique set of challenges and the firm you choose to assist you should be one that has the knowledge
and ability to effectively apply the IRS tax rules and IRS tax laws to your set of circumstances as opposed
to applying a one-size-fits-all remedy.
The professional firm that you choose to assist you should have a well-rounded knowledge of many
areas of law, including bankruptcy law, contract law, real estate law, probate law, criminal law, and of
course, U.S. tax laws and IRS codes and regulations.
At this firm, we handle your IRS tax issues in a refined, professional and personable manner. We fully
familiarize ourselves with you, the client, examine the facts and circumstances, and formulate a plan
based upon your needs and based upon the law. Once we contact the IRS, we are prepared and know
what needs to be done in order to provide you with meaningful assistance.
Some Words of Caution Regarding Tax Resolution "Mills"
We recommend that you avoid Tax Resolution "Mills" that make many promises and give false hopes
in order to get you to hire them. Often you are merely speaking with a commissioned salesperson
that knows little or nothing about tax law. They will make many questionable comments, often
unintentionally, to "close the deal".
Many tax resolution mills have limited tools available to them to assist you. Often, they assign you to
a "tax representative" who is no more than a slick salesperson whose job is only to obtain a fee. They
usually have little or no knowledge of tax law or of any other law-their job is simply to sell and to keep
you as a client.
A few "red-flag claims" used to "close the deal" by such sales persons are discussed below.
We have former IRS agents on staff.
So what! It is our opinion that making this statement can lead one to believe that this adds some type
of quality to their service. The only meaningful way to improve your chances of obtaining the most
favorable settlement available is to hire a professional that gets to know you and the nature of your
problem and knows, or has the ability to locate, the tax rules and tax laws that apply to your unique set
of circumstances, and then adeptly apply these rules and laws.
We can STOP the IRS in their tracks.
This can mislead persons into thinking that actions of the IRS can be stopped by intimidation or certain
bullying techniques; or, that it should be automatically assumed that the IRS is somehow "breaking the
law". Be assured, these agencies do not quake with fear just because a big law firm or tax professional
The IRS and other agencies obtain their power from what is called enabling legislation. Usually, what
they do...they do because they can-the power to do so is given to them under the law. Fortunately,
laws that protect you and provide methods and procedures by which issues can be resolved are also in
existence, and the right professional will apply them to your set of circumstances to obtain the most
favorable outcome available to you.
We work with certain people at the IRS all the time-we know them.
This gives the impression that due to some special relationship with representatives of the IRS they
can obtain certain favors or favorable treatment. This never happens. Good treatment is obtained by
applying good law.
A professional may work with the IRS all the time, but this does not increase Your chances to resolve
Your issue. IRS representatives have rules that control what they can or cannot do. Having some
type of inside connection would not provide any meaningful advantage: knowledge and adeptness in
application of the law is the only thing that is truly helpful.
We will FIGHT the IRS.
In their ordinary use, these are Not the words of a professional. Before "fighting" is even discussed, all
of the facts and possible legal remedies need to be determined. Then, all parties need to be given an
opportunity to argue their position. In almost every case, then the matter can then be resolved.
There is a time and place to fight, and a proper fight is a good thing, if warranted. Unwarranted conflicts
just make a bad situation worse. Positing a useful and informed legal argument is the best method-it
will bring about the best result.
IRS Gambling Tax
If you win $2000 on a slot machine and then later lose $2000 at another casino, the IRS will most likely
claim that you owe about $600 in taxes. This is not fair, but it happens all the time, often involving very
large amounts of money.
If you are a foreigner visiting the U.S. and you put $2000 into a slot machine and then you win $2000,
you may only receive $1400 from the casino with the remaining $600 being withheld and sent to the
IRS, depending upon your country of citizenship. Why is this? It is due to the arcane and counter-
intuitive tax code as it applies to gaming taxes. Gaming taxes are based upon "sessions", and the
definition of sessions is not really that clear in the code.
When you win over a certain amount, depending on the game you are playing, a record of your winnings
is sent to the IRS; but, even if you lose thousands of dollars, no record of your losses is sent to the IRS.
Therefore, when you file your tax return, the IRS will match your tax return to the records they were
sent from gaming establishments showing your winnings. If your winnings are not included in your
income, the IRS will assess an additional tax-even if, overall, you actually lost money gambling that
If you claim that you had losses, the IRS has some strict and difficult requirements that must be met to
prove your losses. A printout of your club-card activity will not be accepted to support a claim of losses.
In order to show losses, you will need to show a session log that indicates your winnings and losses, and
such session logs must be very detailed and supported by other records from extrinsic sources.
If you are being audited due to gaming winnings and you do not provide supporting data that meets
these standards that shows you also lost money gambling, the IRS will require that you pay tax on the
"winnings"-your word alone that you lost a lot of money gambling will not be convincing.
Whether you are a U.S. citizen being audited due to gambling winnings or a non-U.S. citizen who has had
30% of your winnings withheld, you should contact us to assist you.
We can assist U.S. citizens with filing an amended return to reduce or eliminate the gaming tax.
If you are a non-U.S. citizen, you do not necessarily have to allow the IRS to keep the 30% that was
withheld. We can assist you with getting some or all of this money refunded by gathering together the
necessary documents and data, preparing and submitting the necessary documents and forms to the
IRS, and filing for a refund for some or all of the amount that was withheld.