Here’s an explanation of the fields:
✔️ In Compliance
Indicates whether you have filed all of your required tax returns.
If your report indicates that you are not in compliance, you may have filed a return but the IRS did not receive it or hasn’t completed processing, prior year tax returns have not been filed or an amended return is in process, there is an outstanding balance for which an installment agreement or other payment options has not been established. Please get in touch with us for more information.
✔️ First Time Penalty Abatement Opportunity
Notifies whether you may qualify for the abatement of an IRS penalty.
To qualify for relief under the FTA policy, a taxpayer must generally show three things: filing compliance, payment compliance, and a clean penalty history. Specifically, you must show that you were not required to file a return or have no prior penalties for the preceding three years and have timely filed for all currently required returns, and have paid or arranged to pay any tax currently due.
You may receive relief from one or more of these penalties on a tax return during a single tax period. The IRS considers First Time Penalty Abatement relief regardless of the penalty amount.
✔️ Open Exams
Alerts you to whether there are any active IRS exams on your account.
We actively monitor your IRS account weekly and will contact you if an IRS flag is placed on your report. These flags generally appear four to six months before an IRS audit. This provides you with valuable time to identify the issue and correct the problem before the audit begins.
✔️ In Collections
Identifies whether the IRS is currently attempting to collect any outstanding debts.
Several opportunities are available to establish payment plans or settle IRS debt, sometimes for less than the total amount due. Don't hesitate to get in touch with us if you would like to explore these options.
✔️ Lien Active
Notifies you that the IRS has filed a tax lien.
A federal tax lien is a legal claim against your property when you neglect or fail to pay your tax debt. The lien covers all your property, including real estate, personal property, and financial assets. The IRS generally releases your lien within 30 days after you have fully paid your tax debt. In some circumstances, the IRS will remove a lien before the debt is settled.
✔️ ID Theft Flag
Indicates whether the IRS has an Identity Theft flag present on your account.
The IRS reviews tax returns for possible fraud. If a tax return appears suspicious or fraudulent, the IRS will flag it for additional review. The IRS will send a letter notifying you of potential ID theft. The tax return won’t be processed until the taxpayer responds to the letter. You’ll need to contact the IRS and provide information from the letter and your most recent tax return to verify your identity and the authenticity of the return filed.
✔️ Audit Flag
This section notifies you of any active and open IRS audit flags on your IRS account. We monitor and notify you when any new audit flags are placed on your account.
✔️ Unreported Income
Our calculations indicate that there may potentially be unreported income. Our system compares income reported on your tax return to the documentation provided to the IRS by others. The review sometimes identifies items that might not be reportable, such as the sale of a primary residence that meets the qualifications for the capital gains exclusion.
Get Expert Representation
If you're a Full Protection Member and are selected for an audit, we’ll recalculate your crypto gains and amend the return if necessary, all at no additional charge.
When you're a Full Protection and Shared Risk member, we will represent you before the IRS on any issue at no additional cost. We will speak to the IRS on your behalf, so you don’t have to. We prepare the documents to submit to the IRS. We will keep you informed of the status of your case and your options every step of the way.
Learn more about premier-level membership.
If you have questions regarding the information contained in your monthly summary, please feel free to send us an email or schedule a brief consultation.
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