Latest / Financial Survival Network / IRS Enforcement Boost: AI, Audits, and Compliance Strategies -- Claudia Moncarz #5966

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IRS Enforcement Boost: AI, Audits, and Compliance Strategies -- Claudia Moncarz #5966 · Financial Survival Network

• 0:00
  I do know that they use their all romans and be updating it in part.
• 0:04
  For instance, they're also getting very creative and they're going I use,
• 0:08
  for for instance, like crypti, they'll call it, they call digital assets,
• 0:12
  they'll call it digital currency, like cryptocurrency, NFTs and all that.
• 0:15
  Because for most people like crypto or it's just like cash. Yeah, but
• 0:20
  for the irs, they look at it as stocks. You're listening to Carrie
• 0:24
  Let's's Financial Survival Network, where you get valuable information you just can't find anywhere
• 0:29
  else to thrive in today's trying times. You need the Financial Survival Network now
• 0:36
  more than ever. Go to Financial Survivalnetwork dot com and get your free newsletter
• 0:41
  and gift. Financial Survival Network now more than ever. Ben, welcome.
• 0:50
  You are listening to and watching the Financial Survival Network. A it's twelve twelve,
• 0:55
  twenty three. It's a great time to talk about taxes. A lot's
• 1:00
  happening with the irs. You're good friends over there, but never forget they're
• 1:04
  from the government. They're there to help you, of course. Claudia Montrs.
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  You are an attorney tax attorney in my adopted state of Florida down in
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  Miami. It's great to have you on. So we've heard a lot about
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  the IRS. You Hey, we've heard a lot about the IRS adopting AI.
• 1:26
  Can you shed any light on that. What's going on with their enforcement
• 1:32
  program which appears to be stepping up. Yes, So, like about a
• 1:38
  couple of years ago, the irn's got a lot of funding for get up
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  to eighty seven thousand co collection agents. And like you said, the IRS,
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  they are here to help us. We all as taxpayers have a bill
• 1:53
  of right. But at the end of the day, the RI Collection Agency
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  and that's one of their mission statement to collect U smash money. Oh to
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  them, and they fed in the shortest amount of time. So and now
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  they and and now you've see natural pickup, like especially in COVID and everything.
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  They kind of went quiet and they gave a lot of people out of
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  extensions and but now they started picking up. There's uh, there's a lot
• 2:16
  of activities making December. They there's still working, but it's every years for
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  the longest time they have any informal pause on the collection actions. They don't
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  like to get bad I get bad press. They're then collection actions during the
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  holidays, but they're still working and still seeing them do some the autists and
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  all that. But the big thing that they're doing is that like uh,
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  I want to say, every year there's about eight million new collection taxes,
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  new ones. That's a lot, and that doesn't count the ones that did
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  not file their tax returns. That's just people I file a taxer and they
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  didn't pay in full. So every year there's new ones, so plus the
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  people that I'm filed. And their big target as the you know, it
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  was the high income earners that were not followed their tax returns. Now and
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  then they're going after es corporations that for people are then collecting you know,
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  taking a resonable salary. A lot of people incorporate to say taxes, but
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  they don't think the salary which you're required to s. I'm seeing audits on
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  that. And now, like I said, partly big funding was that they
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  use. They're using all this money not only for revenue agents, but also
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  to update all their systems, right, so they'll bring up to date so
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  that because they use algorithms also just to cycle you're going to audit and it's
• 3:47
  really some pissy computers and problems tell you where they're going to find the audits
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  and now that's how they're using technology to make them more efficient too. Yeah,
• 3:57
  well maybe it's not the worst thing in the world, but you know,
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  AI has limitations. But have we seen anything yet coming from that,
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  particularly with AI and the IRIS not not really. I do know that they
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  use their all romans and they updating it in part. For instance, they're
• 4:18
  also getting very creative and they're going to use for for instance, like crypt
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  they don't call it, they call it digital assets. They'll call it digital
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  currency, like cryptocurrency, NFTs and all that because for most people like crypto
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  or it's just like cash, but for the irs, they look at it
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  as stocks. They're also tracked. Yeah, so that's a different way of
• 4:39
  looking at for tax purposes. Tracking that. And the other big thing is
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  that I'm sure there which is done to fincy is that they are now in
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  Jerry. First they're starting their database and small business owners with a corporate Transparency
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  and that would basically got all businesses. What's that Basically, it basically covers
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  all small businesses have to write start with fencing, just like they do with
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  for reporting acts. And they're doing this to find people are doing fraud and
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  illegal activities. But all those systems are connected and they're going to step up.
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  Was more enforcing because they're going to notice that there's going to be people
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  that may be register it and they're not filing tax redress because the penalties for
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  an hours serve with these fins is very high. So I left the ten
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  thousand, so and they're going to start being those connections and what's more,
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  using technology to make sure people are compliant. It amazes me how many people
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  are out there in this day and age still don't file tax returns. Yea,
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  it is a lot. A lot of people shocking made out. It's
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  really kind of shocking because they know who you are. And you remember that
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  old songs, a country western song and he tells the I R s to
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  take can take him off their mailing list. That doesn't happen in reality,
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  does it? No? I mean people I think they just get because like
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  I said, there's eight million new cases a year, and that's for people
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  that actually it's become eight It couldn't always like eight to ten to going out,
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  but that's just people that filed but they didn't pay, so it doesn't
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  count. They get it. I forgot the exact number, but it was
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  thousand and millions single digits, but high single digits in the millions for people
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  that didn't file their attacked returns. And there's just so many, so much
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  commandpower that they have. So yes, they have a backlock. They haven't
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  gotten into use ins because they have the backlock, but not that they're updating
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  their computers. They can do a lot more automated, so they will send
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  the letters automated. They will like look at for instance, an easy way
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  that they catch you is that your employer or whoever issues some customer for the
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  most has to issue a ten ninety nine or a W two two and they
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  send a copy to the i r S. So that's how they actually catch
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  a lot of people. They match it like that, you yeah, so
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  matching and all that. And they're way better than they used to be.
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  I mean, I know, like Social Security like instantly picks up your tax
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  returned from the I r S and you know, figures out, you know,
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  whether they're taking too much or too little. They adjust all this money.
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  You know, it was pretty shocked to see how efficient they were with
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  that, you know, because they just never were like that before. Yeah,
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  not the getting real official at all. And you said, Now they're
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  investing in the in the programs I mean like technology, and they're they're bringing
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  new agents, which is good at that because I'm I think they're just rushing
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  them. I seeing this and other tax professionals in them that they rush them
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  through the system, through the training, and so some of them they they're
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  not they're not all fully trained. So it can be difficult in some audits.
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  They don't want to work with you. But the good thing is,
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  like with everything with government, they just have to follow the rules and they
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  set themselves. Yeah, hopefully hopefully, but they But one thing, one
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  thing I got to emphasize, if you do have interaction with UH, with
• 8:26
  the irs, it's not personal. You know, they're not necessarily out to
• 8:31
  get you, although it might feel like they're out to get you, but
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  they're really not. And if you treat them with respect and consideration like you
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  want to be treated with, it really helps your case, doesn't it.
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  Yes, And remember they have they followed procedure, right, they have guilence
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  that they have to follow. And if they deviated, sometimes there's some bad
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  agents. But if they deviated is because they maybe they didn't even know about
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  it, but they've all this guideless and you know, first you're going to
• 9:01
  get a letter that you own, honey. Then it will be at thirty
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  they notice. Then it will be a notice that we're gonna let put and
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  lean. Then I say, notice that they're going to levy and all that
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  is and then or maybe that you're going to rebook your passport. All that
• 9:15
  is to get you to the table so that you can get it into a
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  payment plan or pay. They don't really want out of levy and they don't
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  want to freeze your bank accounts. They want to put a mean, they
• 9:24
  want to get you in the in the day. Who I'm getting an into
• 9:28
  a payment plan for the spar and everything. Really, I will say about
• 9:31
  eighty percent of it ends up being a payment plan because everybody wants to pay
• 9:35
  the pennies on the dollars. I can't. And remember ten years ago the
• 9:39
  guy with the beer like he says pennies on the dollar that doesn't really exist.
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  Yeah, the uh compromise. Yeah, you know, yeah, it's
• 9:52
  interesting. So people, you know, it's the scariest three letters in the
• 9:58
  English language, right irs, Yes, it you know, I do it
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  all the time, but I think one time I got a letter because they
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  were they were just doing an adjustment to my return. And I think even
• 10:09
  for a second when it stop buying and the Latindias for like a nano second,
• 10:13
  I have to pause, and I get those glades for them all the
• 10:16
  time. So I do understand. I generally think I've been practicing for over
• 10:20
  twenty years. Only once have I seen someone that was doing tax evation.
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  Everybody else is just they they make a mistake. Either they they what happened
• 10:33
  to them, they had a sick family member, they lost their job and
• 10:35
  they just forgot about their taxes, or they just really didn't understand what they
• 10:39
  were doing, or give them bad advice an accountant or sometimes a lawyer infantry
• 10:46
  that gave them bad advice that end up they end up doing the wrong thing.
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  So yep, And you know, I was going to say, one
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  of the major mistakes that you make in dealing with irs or any other creditor,
• 10:58
  and let's face it, their creditor now I know, the first first
• 11:01
  among equal creditors, but they're superior creditor. But it's going into denial,
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  like shutting down and just not dealing with the problem, and then problems that
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  don't get dealt with become disasters. Whereas if you accepted it and you just
• 11:20
  dealt with them, a solution, like you said, a payment plan could
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  be worked out. But if you go into denial, then that option gets
• 11:30
  close to you and then it's like and that does upset the government when you
• 11:35
  ignore them more than anything. And yeah right, so yeah, so people
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  come to you like, what's the what's the best outcome you ever got for
• 11:45
  somebody with the IRS dealing with them? Oh? I think our best really
• 11:52
  actually person Oh like a million? Now you buy it down to a million,
• 11:56
  So that was good. But that but once more, that was just
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  given. I mean they had all the right facts, but they just didn't
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  credit right. So it's ah they being So we gave them all back up
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  and brought it down and and and like I like you said, going back
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  to what you mentioned, it's like, uh, it's the denial. I
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  think I have a PROZZL record, I free, you know, like,
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  and I think how to deal with your IRS data? And the first one
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  is forgiveness because they think we feel so bad that we got ourselves and we
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  feel guilty and shame. But like you said, there's eight million other people
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  in this in the country at the very mindidlum that had the same issue as
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  you. It is not you know a lot of people like you say don't
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  meant it. So I think it's you used to kind of like forgive yourself
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  accepted and then just kind of like then big action. That's the main thing,
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  because I have a lot of clients that bring letters that are not open,
• 12:50
  and the problem with that is that you and not at we all everybody
• 12:54
  listening here, we all have rights, is tax payers, and we got
• 12:58
  our pills right and all that. But if you don't open your letter to
• 13:01
  find out, oh, with your deadlines and when you're up to those certain
• 13:03
  things, you're waiting, right, so you're losing opportunities to like, maybe
• 13:07
  there's something wrong with the test because sometimes you know, the tax reatarre may
• 13:11
  be wrong and you just need to fix it with a form and then you
• 13:15
  owe nothing. Well sure there's been a lot of cases like that, but
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  once more, yes, you need to have your rights and things like that.
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  So yeah, looking at your site and David L. Claudia saved the
• 13:26
  day for us. The IRS was wrongly pursuing me for taxes they claim I
• 13:31
  owed, and she wiped out about thirty k in death. She was a
• 13:35
  professional and did a fantastic job and show the demand from the IRS it was
• 13:43
  like one hundred eighty thousand. Well account to balance that supposedly owed one hundred
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  and eighty thousand. Yeah, we we we bring it down. I mean
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  we didn't do it. That's good that we should try to keep Italian this
• 13:54
  year. I don't know why we didn't do it as good, but yeah,
• 13:58
  I mean at the end of the day, it's just about paying what
• 14:01
  you owe and the correct amount. And like you said, sometimes it's just
• 14:07
  a mistakes. Sometimes the tax surchains are around, so we're able to fix
• 14:11
  the tax return and show where the error goes, then we can reduce your
• 14:15
  taxes. Sometimes is an audit Like right now, I'm very excited. We
• 14:20
  are. We just finished a case where we were working found in tax sport
• 14:24
  for almost three years. Hey with the Ahara is trying to get going back
• 14:28
  and forth, and and we got her to where she needed to be where
• 14:31
  she owed the IRS I think two thousand dollars which she already had paid for.
• 14:37
  So we're very excited that we brought up from like sixty nine or sixty
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  four and the amounts is not big in the other ones, but we fought
• 14:45
  so hard for this. We're going We're very, very excited. That's the
• 14:48
  kind of lawyer you want working for you as a recovering attorney myself having experience
• 14:54
  in some of these matters, that's what you want. So just tell us
• 14:58
  where we find you, how we connect with you on the web, Cloudia.
• 15:03
  Yeah, so our website is Wwmncarslaw dot com. Is an asimary O
• 15:09
  N S N N T C A r Z law dot com. Or also
• 15:13
  if you go to ww talk to Claudia. Do we have their small class
• 15:20
  and you can learn about how if you have tax issues and then you can
• 15:22
  make an appointment with us too, and we need do our consultations that I
• 15:26
  see if we can help you on. We're a good fit for each other.
• 15:30
  All right, excellent, Well appreciate you coming on with us. Got
• 15:33
  a question for Clouda or myself the emails k l at Carrie LUTs dot com
• 15:39
  and you'll find a linked Clodia site on our site and the show that's in
• 15:43
  this interview on Financial Survival Network dot com and a p lease sign up your
• 15:50
  free newsletter. Got a good one coming out shortly. Really appreciate you coming
• 15:54
  out, Clodia and yeah, appreciate it. Hey, wish you the best
• 15:58
  and happy and healthy new Year, Merry Christmas, and we'll talk to you
• 16:02
  again after the first of the year to figure out what we did wrong last
• 16:04
  year. Okay, take it. Thanks for listening to carry Letz's Financial Survival
• 16:11
  Network, your solution to today's trying times. For the latest, go to
• 16:15
  Financial Survivalnetwork dot com. Financial Survival Network now more than ever,