Instant Tax Solutions’ Byron Pedersen on the Risks of Unreported Income

Instant Tax Solutions

When it comes to paying taxes, most taxpayers are careful and honest about reporting all of their income. However, Instant Tax Solutions’ Byron Pedersen reports that some taxpayers simply don’t realize certain forms of income must be reported. Recently, Pedersen spoke to Community Blog Online about the dangers of leaving taxable items off of your tax return.


According to Instant Tax Solutions, scams involving taxes by spouses or ex-spouses can impact a person’s daily life. If you were unaware of false claims made on a joint tax return, you may qualify for relief, says Instant Tax Solutions. Scams may have involved understated taxes or other erroneous claims. There are, however, a few ways that Instant Tax Solutions can help. Scams and other illegal activity committed by an estranged spouse against the IRS may qualify the innocent spouse to release by separation of liability, equitable relief, or innocent spouse relief. Instant Tax Solutions says scam relief may be found in all 50 states, including those with community property laws.

 

Community Blog Online: Does a taxpayer have to report every form of income, including reimbursements for business expenses?

Byron Pedersen: Certain reimbursements and remunerations may be exempt from being itemized on an individual’s tax return. Instant Tax Solutions can help a taxpayer know whether something needs to be reported or not.


Are you living with the pressure to repay back taxes owed by a spouse or former spouse, asks the team at Instant Tax Solutions? Avoid the scams of low rate tax agencies by calling our tax professionals for your free consultation first. Sadly, many agencies are out to get your money and scam you, says Instant Tax Solutions. Innocent spouse relief is available and help is a phone call away with Instant Tax Solutions. Scams involving spousal taxes may be recognized by a tax debt resolution firm’s insistence on pre-payment by the innocent spouse. If you’re struggling to pay daily living expenses, you may present your case to the IRS for review, says Instant Tax Solutions. Scams and false promises are not something that you will encounter at this firm.

 

Community Blog Online: How does the IRS know when a taxpayer is underreporting or misreporting his or her income?

Byron Pedersen: The IRS uses an algorithm that searches for taxpayers whose reported income and/or deductions differ dramatically from others in the same demographic. There are other ways as well; such as an audit of a taxpayer’s bank accounts that finds an individual has had excessive deposits or expenditures. If the income to explain those deposits and expenses isn’t reported to the IRS, it’s likely that taxpayer will be flagged for an audit. IRS has also been known to search social media sites for taxpayers publicly announcing they have committed intentional tax fraud.


There are no scams at Instant Tax Solutions. The staff at Instant Tax Solutions has one goal in mind and that is to help relieve anxiety and stress that you are feeling about your tax debt problem. To avoid scams, Instant Tax Solutions only employs the best tax attorneys, federally enrolled agents, and certified public accountants. Additionally, many former IRS officers comprise the staff at Instant Tax Solutions. Scams, say the employees, are something that they have all seen in the past. They’ve all taken steps to ensure that scams and Instant Tax Solutions will never become synonymous with each other. They do, after all, have a reputation to uphold!

 

Community Blog Online: But an audit flag doesn’t necessarily mean someone is deliberately trying to evade paying taxes, right?

Byron Pedersen: Not at all. Sometimes a simple mathematical error can result in an audit. Instant Tax Solutions works hard to make sure such errors don’t happen but if one of our clients is ever audited, due to any reason, we will sit in on the audit. Our staff includes several former IRS agents, now serving as IRS enrolled agents to help taxpayers.


Instant Tax Solutions cites that scams involving tax debt resolution firms generally involve a hefty down payment or payment in full prior to service – anyone requesting payment in full prior to service should be red flagged as a potential scam. The staff at Instant Tax Solutions takes pride in providing honest and accurate IRS tax debt relief information and services. By providing a free consultation, Instant Tax Solutions says scams are certainly something that their clients avoid. Allegations surrounding a scam involving Instant Tax Solutions have been proven to be untrue.

 

Community Blog Online: Help our readers understand what the penalties for tax evasion are…

Byron Pedersen: Make no mistake about it—tax evasion is a crime. Instant Tax Solutions helps our clients avoid both unreported income and false deductions. However, we rely on our clients to make sure they disclose everything and we stress to them the penalties for failing to do so. Falsifying information on taxes is a federal crime and is punishable by stiff fines and even jail time. I would like to stress to taxpayers that tax evasion is a felony. It is important to always be honest when filing taxes and to use a professional tax preparer like Instant Tax Solutions to make sure you know what must be reported.

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