Howdy, this is David Groce, your Texas Tax and Law Man, coming at you with an IRS update.

If you live in metropolitan area, you have learned the traffic flow of your city. If you travel much by car, you have certainly learned that every big city has its own flavor of traffic. In Dallas Fort Worth, our traffic flow is described as bumper-to-bumper and everybody doing 80. Houston gives you a nice 3 mph crawl, while LA offers morning and evening siestas parked on the 5, the 405, or the 605.

Dealing with the IRS under each presidential administration is about the same thing; they each have their own unique flavor. Under Clinton, we had a professional civil service that answered the phone and gave you a reasonable answer or at least an attempt to solve your problem. Bush 43 gave us the kinder, gentler IRS. Then under Obama, we hired 60,000 new IRS workers, who then had their budgets cut, obviously before they were fully trained. Now, with Trump, we have a collection agency that wants you to pay what you say you owe and loves sending you random letters.

This year many of our clients, including me, have received letters from the IRS. I received notice CP 2100, which told me that my 1099s did not match and gave me a list of the one 1099 that did not match the W-9. We checked it and well, it matched, even though the letter said it didn’t.

So, what do we do if we receive these letters?

Well on the 1099 mismatch notice, your duty is to have the contractor complete a new W-9 with their personal information and their signature. Enter that data into your accounting software and keep the new W-9 on file. If you do that you have complied.

Beyond that, the IRS has started sending letters like a first-class collection agency. We mail them a letter, they send us a letter saying they received our letter and need more time to process it. They never do and never reply. We then call or mail them again via certified mail return receipt requested and we receive another reply - they have received our letter and are working on it.

As citizens, our job is to obey the law. As Christians our duty is to render unto Cesar what is Cesar’s and unto God what is God’s.

And if you have a hard time doing that, how about I give you a visual image to put a smile on your face. The current IRS letters coming your way look more like Benedict Cumberbatch’s hapless Grinch coming to steal Christmas than the group of mob enforcers the IRS used to be.

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Until next time, adios.

About Groce Law Firm, Ltd.:
Groce Law Firm, Ltd. is a local, Hurst law firm with nearly 25 years of business law, tax prep and planning experienced. Our law firm is different. We know the ins and outs of the legal side of your business, and the tax side of your business. We help small business owners maximize their wealth, minimize taxes, and protect their assets and loved ones.

Please visit our website for more information on our legal and tax services, and to read our happy client reviews: www.grocelaw.com

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