I do know that they use their all romans and be updating it in part.
For instance, they're also getting very creative and they're going I use,
for for instance, like crypti, they'll call it, they call digital assets,
they'll call it digital currency, like cryptocurrency, NFTs and all that.
Because for most people like crypto or it's just like cash. Yeah, but
for the irs, they look at it as stocks. You're listening to Carrie
Let's's Financial Survival Network, where you get valuable information you just can't find anywhere
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and gift. Financial Survival Network now more than ever. Ben, welcome.
You are listening to and watching the Financial Survival Network. A it's twelve twelve,
twenty three. It's a great time to talk about taxes. A lot's
happening with the irs. You're good friends over there, but never forget they're
from the government. They're there to help you, of course. Claudia Montrs.
You are an attorney tax attorney in my adopted state of Florida down in
Miami. It's great to have you on. So we've heard a lot about
the IRS. You Hey, we've heard a lot about the IRS adopting AI.
Can you shed any light on that. What's going on with their enforcement
program which appears to be stepping up. Yes, So, like about a
couple of years ago, the irn's got a lot of funding for get up
to eighty seven thousand co collection agents. And like you said, the IRS,
they are here to help us. We all as taxpayers have a bill
of right. But at the end of the day, the RI Collection Agency
and that's one of their mission statement to collect U smash money. Oh to
them, and they fed in the shortest amount of time. So and now
they and and now you've see natural pickup, like especially in COVID and everything.
They kind of went quiet and they gave a lot of people out of
extensions and but now they started picking up. There's uh, there's a lot
of activities making December. They there's still working, but it's every years for
the longest time they have any informal pause on the collection actions. They don't
like to get bad I get bad press. They're then collection actions during the
holidays, but they're still working and still seeing them do some the autists and
all that. But the big thing that they're doing is that like uh,
I want to say, every year there's about eight million new collection taxes,
new ones. That's a lot, and that doesn't count the ones that did
not file their tax returns. That's just people I file a taxer and they
didn't pay in full. So every year there's new ones, so plus the
people that I'm filed. And their big target as the you know, it
was the high income earners that were not followed their tax returns. Now and
then they're going after es corporations that for people are then collecting you know,
taking a resonable salary. A lot of people incorporate to say taxes, but
they don't think the salary which you're required to s. I'm seeing audits on
that. And now, like I said, partly big funding was that they
use. They're using all this money not only for revenue agents, but also
to update all their systems, right, so they'll bring up to date so
that because they use algorithms also just to cycle you're going to audit and it's
really some pissy computers and problems tell you where they're going to find the audits
and now that's how they're using technology to make them more efficient too. Yeah,
well maybe it's not the worst thing in the world, but you know,
AI has limitations. But have we seen anything yet coming from that,
particularly with AI and the IRIS not not really. I do know that they
use their all romans and they updating it in part. For instance, they're
also getting very creative and they're going to use for for instance, like crypt
they don't call it, they call it digital assets. They'll call it digital
currency, like cryptocurrency, NFTs and all that because for most people like crypto
or it's just like cash, but for the irs, they look at it
as stocks. They're also tracked. Yeah, so that's a different way of
looking at for tax purposes. Tracking that. And the other big thing is
that I'm sure there which is done to fincy is that they are now in
Jerry. First they're starting their database and small business owners with a corporate Transparency
and that would basically got all businesses. What's that Basically, it basically covers
all small businesses have to write start with fencing, just like they do with
for reporting acts. And they're doing this to find people are doing fraud and
illegal activities. But all those systems are connected and they're going to step up.
Was more enforcing because they're going to notice that there's going to be people
that may be register it and they're not filing tax redress because the penalties for
an hours serve with these fins is very high. So I left the ten
thousand, so and they're going to start being those connections and what's more,
using technology to make sure people are compliant. It amazes me how many people
are out there in this day and age still don't file tax returns. Yea,
it is a lot. A lot of people shocking made out. It's
really kind of shocking because they know who you are. And you remember that
old songs, a country western song and he tells the I R s to
take can take him off their mailing list. That doesn't happen in reality,
does it? No? I mean people I think they just get because like
I said, there's eight million new cases a year, and that's for people
that actually it's become eight It couldn't always like eight to ten to going out,
but that's just people that filed but they didn't pay, so it doesn't
count. They get it. I forgot the exact number, but it was
thousand and millions single digits, but high single digits in the millions for people
that didn't file their attacked returns. And there's just so many, so much
commandpower that they have. So yes, they have a backlock. They haven't
gotten into use ins because they have the backlock, but not that they're updating
their computers. They can do a lot more automated, so they will send
the letters automated. They will like look at for instance, an easy way
that they catch you is that your employer or whoever issues some customer for the
most has to issue a ten ninety nine or a W two two and they
send a copy to the i r S. So that's how they actually catch
a lot of people. They match it like that, you yeah, so
matching and all that. And they're way better than they used to be.
I mean, I know, like Social Security like instantly picks up your tax
returned from the I r S and you know, figures out, you know,
whether they're taking too much or too little. They adjust all this money.
You know, it was pretty shocked to see how efficient they were with
that, you know, because they just never were like that before. Yeah,
not the getting real official at all. And you said, Now they're
investing in the in the programs I mean like technology, and they're they're bringing
new agents, which is good at that because I'm I think they're just rushing
them. I seeing this and other tax professionals in them that they rush them
through the system, through the training, and so some of them they they're
not they're not all fully trained. So it can be difficult in some audits.
They don't want to work with you. But the good thing is,
like with everything with government, they just have to follow the rules and they
set themselves. Yeah, hopefully hopefully, but they But one thing, one
thing I got to emphasize, if you do have interaction with UH, with
the irs, it's not personal. You know, they're not necessarily out to
get you, although it might feel like they're out to get you, but
they're really not. And if you treat them with respect and consideration like you
want to be treated with, it really helps your case, doesn't it.
Yes, And remember they have they followed procedure, right, they have guilence
that they have to follow. And if they deviated, sometimes there's some bad
agents. But if they deviated is because they maybe they didn't even know about
it, but they've all this guideless and you know, first you're going to
get a letter that you own, honey. Then it will be at thirty
they notice. Then it will be a notice that we're gonna let put and
lean. Then I say, notice that they're going to levy and all that
is and then or maybe that you're going to rebook your passport. All that
is to get you to the table so that you can get it into a
payment plan or pay. They don't really want out of levy and they don't
want to freeze your bank accounts. They want to put a mean, they
want to get you in the in the day. Who I'm getting an into
a payment plan for the spar and everything. Really, I will say about
eighty percent of it ends up being a payment plan because everybody wants to pay
the pennies on the dollars. I can't. And remember ten years ago the
guy with the beer like he says pennies on the dollar that doesn't really exist.
Yeah, the uh compromise. Yeah, you know, yeah, it's
interesting. So people, you know, it's the scariest three letters in the
English language, right irs, Yes, it you know, I do it
all the time, but I think one time I got a letter because they
were they were just doing an adjustment to my return. And I think even
for a second when it stop buying and the Latindias for like a nano second,
I have to pause, and I get those glades for them all the
time. So I do understand. I generally think I've been practicing for over
twenty years. Only once have I seen someone that was doing tax evation.
Everybody else is just they they make a mistake. Either they they what happened
to them, they had a sick family member, they lost their job and
they just forgot about their taxes, or they just really didn't understand what they
were doing, or give them bad advice an accountant or sometimes a lawyer infantry
that gave them bad advice that end up they end up doing the wrong thing.
So yep, And you know, I was going to say, one
of the major mistakes that you make in dealing with irs or any other creditor,
and let's face it, their creditor now I know, the first first
among equal creditors, but they're superior creditor. But it's going into denial,
like shutting down and just not dealing with the problem, and then problems that
don't get dealt with become disasters. Whereas if you accepted it and you just
dealt with them, a solution, like you said, a payment plan could
be worked out. But if you go into denial, then that option gets
close to you and then it's like and that does upset the government when you
ignore them more than anything. And yeah right, so yeah, so people
come to you like, what's the what's the best outcome you ever got for
somebody with the IRS dealing with them? Oh? I think our best really
actually person Oh like a million? Now you buy it down to a million,
So that was good. But that but once more, that was just
given. I mean they had all the right facts, but they just didn't
credit right. So it's ah they being So we gave them all back up
and brought it down and and and like I like you said, going back
to what you mentioned, it's like, uh, it's the denial. I
think I have a PROZZL record, I free, you know, like,
and I think how to deal with your IRS data? And the first one
is forgiveness because they think we feel so bad that we got ourselves and we
feel guilty and shame. But like you said, there's eight million other people
in this in the country at the very mindidlum that had the same issue as
you. It is not you know a lot of people like you say don't
meant it. So I think it's you used to kind of like forgive yourself
accepted and then just kind of like then big action. That's the main thing,
because I have a lot of clients that bring letters that are not open,
and the problem with that is that you and not at we all everybody
listening here, we all have rights, is tax payers, and we got
our pills right and all that. But if you don't open your letter to
find out, oh, with your deadlines and when you're up to those certain
things, you're waiting, right, so you're losing opportunities to like, maybe
there's something wrong with the test because sometimes you know, the tax reatarre may
be wrong and you just need to fix it with a form and then you
owe nothing. Well sure there's been a lot of cases like that, but
once more, yes, you need to have your rights and things like that.
So yeah, looking at your site and David L. Claudia saved the
day for us. The IRS was wrongly pursuing me for taxes they claim I
owed, and she wiped out about thirty k in death. She was a
professional and did a fantastic job and show the demand from the IRS it was
like one hundred eighty thousand. Well account to balance that supposedly owed one hundred
and eighty thousand. Yeah, we we we bring it down. I mean
we didn't do it. That's good that we should try to keep Italian this
year. I don't know why we didn't do it as good, but yeah,
I mean at the end of the day, it's just about paying what
you owe and the correct amount. And like you said, sometimes it's just
a mistakes. Sometimes the tax surchains are around, so we're able to fix
the tax return and show where the error goes, then we can reduce your
taxes. Sometimes is an audit Like right now, I'm very excited. We
are. We just finished a case where we were working found in tax sport
for almost three years. Hey with the Ahara is trying to get going back
and forth, and and we got her to where she needed to be where
she owed the IRS I think two thousand dollars which she already had paid for.
So we're very excited that we brought up from like sixty nine or sixty
four and the amounts is not big in the other ones, but we fought
so hard for this. We're going We're very, very excited. That's the
kind of lawyer you want working for you as a recovering attorney myself having experience
in some of these matters, that's what you want. So just tell us
where we find you, how we connect with you on the web, Cloudia.
Yeah, so our website is Wwmncarslaw dot com. Is an asimary O
N S N N T C A r Z law dot com. Or also
if you go to ww talk to Claudia. Do we have their small class
and you can learn about how if you have tax issues and then you can
make an appointment with us too, and we need do our consultations that I
see if we can help you on. We're a good fit for each other.
All right, excellent, Well appreciate you coming on with us. Got
a question for Clouda or myself the emails k l at Carrie LUTs dot com
and you'll find a linked Clodia site on our site and the show that's in
this interview on Financial Survival Network dot com and a p lease sign up your
free newsletter. Got a good one coming out shortly. Really appreciate you coming
out, Clodia and yeah, appreciate it. Hey, wish you the best
and happy and healthy new Year, Merry Christmas, and we'll talk to you
again after the first of the year to figure out what we did wrong last
year. Okay, take it. Thanks for listening to carry Letz's Financial Survival
Network, your solution to today's trying times. For the latest, go to
Financial Survivalnetwork dot com. Financial Survival Network now more than ever,