User talk:DavidTLeBlanc

Joe Mastriano, P.C.
Joe Mastriano, P.C., is a CPA firm located in Houston, TX. The firm is the first company in Houston and among the first in the United States to offer IRS representation service exclusively with over 300 cases annually.

Company History
The firm of Joe Mastriano, P. C. was founded in 1980 by Joe Mastriano, CPA, to provide accounting services to individuals and small businesses. Because of the firm’s growing expertise in American income taxes and resolving issues of tax debt, or back taxes, owed to the IRS and IRS audits, the firm quickly became a boutique firm specializing in IRS representation. The firm developed three innovations in the field of IRS representation.

Corporate Liquidation to Relieve IRS Tax Debt
The firm pioneered a procedure to help companies resolve delinquent tax debt that includes unpaid payroll taxes among other back taxes. This procedure is a type of corporate liquidation under the federal tax code and the unpaid payroll taxes are referred to as the trust fund taxes by the IRS. By this method, the tax debt owed by a corporation can be reduced to just the trust fund amount. The trust fund is the sum of the unpaid employee withholding taxes, Social Security taxes and Medicare taxes that get charged to a responsible party. This trust fund amount cannot be removed even under corporate bankruptcy. The IRS requires the debt be transferred to some other responsible party. Under these rules a responsible party can include stockholders, corporate officers who had authority to make disbursement decisions of monies, signatories on the corporate checking accounts or signatories on the corporate tax reports. Using this procedure the assets of the old corporation are liquidated. The old corporation is replaced by a new taxable entity and the amount of the trust fund is transferred to an individual, the responsible party, under that individual’s Social Security number. The responsible party will arrange for a payment plan, an offer in compromise with the IRS, or pay-off the debt. The advantage of this procedure to the company is a reduction of the money it owes in back taxes and the possibility the business may continue in the form a new company.

Four point plan to avoid IRS audits
The firm developed an effective method for assuring a taxpayer avoids an IRS audit of the taxpayer’s tax return. This method relies on thorough documenting and footnoting of the return and properly timing the return’s filing.

The method is comprised of four parts.


 * 1) File an extension and paying estimated taxes on or before the Tax Day filing deadline for the taxpayer.  The deadline is typically April 15th in the United States of America in the year following the tax year for the tax return.  The extension runs to October 15th.
 * 2) Request the wage and income transcripts the IRS collects on every taxpayer to match income records for the tax year.  Typically, all of the available transcripts the IRS collects are not available until the September following the end of the tax year.   The records are comprised of W2 statements, schedule K-1 statements and 1099 statements.
 * 3) Once the income records are received, the return is prepared, thoroughly documenting and footnoting it.   The manner in which the returns are footnoted is the firm’s innovation.  The footnotes will note such things as explaining why it is prudent to take a deduction, state that the preparer understands the tax codes and regulations and is following them, state that the taxpayer has the receipts, cancelled checks and invoices as evidence, state that there is 3rd party verification for mileage, travel and entertainment expenses,  state that the preparer has evidence to prove conceptual things such as  business vs. personal,  ordinary and necessary  and substance over form.
 * 4) The final step depends on filing the return during a period the IRS is least likely to select a return for an audit, usually a few days before October 15th.

Preventing Collection Action
The IRS will often negotiate an agreement with taxpayers who owe back taxes to avoid collection actions. Yet even with an "agreement," the IRS can continue collection actions resulting in levies and liens against the taxpayer’s income and property. Based on experience, the firm found five unwritten rules the IRS uses that will prevent any collection action. The five conditions to meet to prevent the IRS from taking collection action against the taxpayer.


 * 1) No new tax liabilities can hit the taxpayers account.
 * 2) The agreement is given a status code.
 * 3) The taxpayer files all their business and personal returns on time, including any valid extensions.
 * 4) All taxes the taxpayer is involved with are paid on time.
 * 5) Monthly installment payments must be coded in the IRS’s computer to the taxpayer’s account by the due date and for full amount.

DavidTLeBlanc (talk) 02:43, 25 January 2014 (UTC)