How One Error Cost Mark Years of IRS Penalties and Stress

Discover how one error led to years of IRS penalties and explore the strategies we used to resolve Marks IRS issues. Tune in to learn how to avoid similar pitfalls and effectively manage your own tax challenges.
🔥 Want to become a client of Jasmine's? Accounting, IRS Tax Resolution, and Tax Leverage: www.taxleverag...
🔥 Accountant looking to grow your firm? See how Jasmine can help: taxleverage.co...
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ABOUT JASMINE DILUCCI, JD, CPA, EA
Jasmine DiLucci has specialized in tax since high school when she first became licensed to represent taxpayers before the IRS.
Now as a tax attorney and CPA, she works with individuals and business owners across the nation to on Tax Planning, CFO Advisory, and IRS Tax Resolution
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Disclaimer: This information on this channel is for educational purposes only and does not constitute professional legal or tax advice.
# #jasminedilucci

[@BasicFolders]

Oh this is going to be great. Is this going to be a regular thing? I'm a HUGE fan of podcasts that I can learn from, and this has all the important things perfect right from the start- good microphones, the guest is there in person, he gets all the time he needs to speak when he's saying something, and of course the informed input from a professional. Don't change anything!

[@BasicFolders]

And of course many thanks to the guest for sharing his story. What a stressful situation.

[@Pens4Life85]

​@@BasicFoldersit's stressful because there is absolutely nothing worse than trying to communicate with the IRS. By whatever medium.

[@taxleverage]

Glad you enjoyed! My goal is to create more podcasts. Stay tuned!

[@Noname-wi8xp]

@@Pens4Life85It was much worse during the pandemic before they blocked robocalling. I was on the phone from 8am-6 and never got through multiple days. Most days they just cut off the phone call attempt because it was too full. At least a year of gridlock. I worked for a low income taxpayer clinic & it was bizarre.

[@Jaden-y7e]

​5 Replies

[@jvb5590]

Please do more long form videos. Your Shorts are good, but longer videos like this one provide broader context about the tax-related topics discussed. Keep it up!

[@jackprick9797]

I think Jasmine is actually Super Girl of the Tax World. Thank you Jasmine!!!

[@TheHawk1811]

This is the first video I watched and I’m just in awe of your work. You did a live counsel for our benefit! This is so helpful!! Blessings to you and your family

[@taxleverage]

Thank you!

[@Jaden-y7e]

​@taxleverage 2 Replies

[@k9kj]

​@@taxleverage100% agree! I think I've watched every single one of your shorts, and love these long form videos!

[@martinlutherkingjr.5582]

This should be called “The Vocal Fry Podcast”

[@HillBilly776]

exactly. I can't even listen to it.

[@davidbullock5629]

I think it's great. The content is why I'm here, but it's a bonus.

[@grantcivyt]

It was difficult for me too, but what can you do? The content is what matters. He sounds like an honest guy that made a costly mistake. It's a shame the tax system is so complicated and the IRS is so slow that these awful situations occur. Meanwhile, tax professionals benefit from this soviet bureaucracy. It's a mess.

[@ozziecamacho5116]

It’s so refreshing to see someone give actual usable information and calling out all the fake gurus that keep repeating each others nonsense.

[@RenatoHideki]

Jasmine, your content is so precious! I am a CPA myself (not in tax) and learning a lot from you! One advice that I see you saying a lot is to look at the transcripts! One hell of a episode would be looking at transcripts to understand how to read it and get valuable information, is this something you already have uploaded? Thanks!

[@onthebricks4260]

What an incredible person, helping others! It's easy to see her passion for helping others!

[@frankb1]

The attorney who wanted to set up the fake divorce sounds very shady.

[@jamescollier3]

yeah. that lawyer is not above board

[@GodismyJudge47]

Are you sure?

[@Gotfish]

Slippin' Jimmy McGill from what I can see

[@Woody-Tv-13]

It not sound it is sketchy and no lawyer should suggest to commit fraud when no divorce is happening should be suggested to do that kind of strategy, the consequences if the IRS found out could be catastrophic.

[@jucaguima]

⁠@@Woody-Tv-13people are so disconnected from basic moral and ethical values, it’s hard to feel sorry. Everyone can do stupid mistakes, specially filing your taxes, but I would had a hard attack, from the loud sound of a RED FLAG alarm inside of me, by the time this “layer” suggestion to create this fake divorce situation!

[@HectorGarciaCPA]

Brilliant content Jasmine!

[@edwinmerino2147]

You’re an awesome person for doing this Jasmine!

[@joelalvarez2090]

Fascinating. Thank you for this podcast.

[@taxleverage]

Glad you enjoyed it!

[@alejandrosteele9632]

Great video. As a Turbo Tax user, scary stuff. Would like to see the forms Jasmine mentioned to get an idea of the complexity. Good luck Mark.

[@jcrathe]

Jasmine: Great counsel as usual. I’ve always been appalled with how long the IRS takes to notify people of any issues with the return, meanwhile collecting interest and penalties the whole time. What is the statute of limitations for the IRS in these cases? Would love to hear you do a video on why the IRS hasn’t leveraged technology to improve the timeliness of how they communicate with tax payers. I can’t believe that we’re still having to send communication back-and-forth through the US Postal Service and can’t communicate electronically. Pretty sad state of affairs with the US government. 😬

[@joemency2242]

the statute of limitations for assessment of tax is 3 years from when you file your return

[@djsdjsjdjshjwbdnskdk]

This is great. I love Jasmine DiLucci even though I have no tax issues. But, think about it, this is OUR government doing this! Relatively innocent citizens, trying to do right, are seemingly not allowed to do right because “right” is artificially made nearly impossible. And, also, since Jasmine mentioned in a separate video that her husband is a psychiatrist, he can help treat people that the IRS has driven crazy!

[@edgarvarela5897]

This is great i love it. You are so well informed. And talk with confidence and experience.

[@shaneclk9854]

Thank GOD for Jasmine

[@JihnJj]

Can you do some videos on international taxation and dta's and how that applies to digital nomads please?

[@maxcohn3228]

The audio quality has come such a long way from your earlier videos! Excellent production quality here.

[@joeyd151]

I wish I could give more than one thumb up!!!

[@taxleverage]

Thanks for tuning in and liking! Looking forward to more episodes like this

[@Ferncontreras]

Jasmin you have a heart of a teacher. Love this

[@Compounding_King]

I’m dealing with this currently, hoping that the company that is sorting this out, is doing what is needed, I went belly up on business or what some call, quit my own job I gave myself. Trucking…

[@JonathanLovitt]

Great walk through of the scenario and resolution opportunities. Thanks for what you do!

[@taxleverage]

Of course, I love doing it! Glad you enjoyed

[@JoeBleaux69]

Apparently I’m in a lot of trouble. I can’t handle it either. I’m giving up at this point. Thanks for teaching us though you’ll help lots of ppl prevent problems. I couldn’t have handled my situation much better if I tried I’ve been so laid out with ptsd I’m only just starting to recover

[@caseytheconqueror7958]

The voice fry back and forth 😅😅😅😅!! Great content though!!

[@JackLucas-jh1eo]

In one of your recent videos you suggested that the Cohan rule was a means by to substantiate expenses, to the best of my knowledge Congress withdrew this as a means of substantiation.

[@billtomlinson4862]

Absolutely love your channel! I see you made a community post today asking for topics but I wasn't sure how to comment on it. One topic I am really hoping you might create more content about is estate planning, revocable trusts, step-up in basis, etc. It would be very much appreciated! Thanks again!

[@dwightstone6569]

Thanks 😊 for posting this to your KZbin channel! Where else can I see your content.

[@Pens4Life85]

Where else? ......🤔🤔🤔 Her channel, dude. Or you can hire her.

[@taxleverage]

You can find me on IG @Taxleveragejd

[@charlielauters3107]

Could you do a video on commercial real estate tax considerations?

[@meanmachine99999]

Bruh I can’t believe fraud knowledge has finally hit KZbin the future is gonna be rough

[@clegz2]

This is scary, I’m in the market for a house and I wanna use a 401K from a company I used to work for. I’m spooked after watching this video.

[@Salty-Hero]

That is incredibly demystifying.

[@kofiacheampong7790]

Really helpful. Thanks for doing this and thanks to Mark for making himself available for the channel. I would love to learn more about how to read an IRS transcript. What exactly should I be looking for? What are red flags? Any education or direction on this would be greatly appreciated.

[@thethirdestatetv]

What if you not using backdoor Roth IRA?? Can you still fill this form out? And do you fill it out yearly? Example/2 Questions: if I fill it out over 5 years and wanted to pull out my 5 years contributions tax free will I be without penalty? But what if I didn’t fill this form out and want to pull my 5 years contributions out (but my account show the contributions) will I be hit with a taxable?

[@orpheus7117]

Thank you for honest ppl! 🙏🏼

[@chilenote13]

Great content. I am a tax preparer and find your content to be very helpful. Thank you.

[@jpaulmeyer]

I love the long form content!!!!

[@judychurley6623]

There should be a penalty. The point is to encourage savings, that is why we get the tax break, not simply to hide income from taxation.

[@sabouter]

I have a question. Is ransom tax deductible? If my family is kidnapped,I will work with the police to catch the criminal. They ask for money and I don't have insurance so I pay from my own pocket. My family is saved but the culprits hide half of the money before they are caught and I never get it. Is that portion of ransom tax deductible?

[@huntermsf2675]

Ransom is something that would have been deductible pre-2017 Trump tax law, if you itemized your deductions (subject to a limit which you should read further on). If Trump’s tax law sunsets, you might see that returning. For now, casualty losses are limited to federally declared disasters.

[@harveypolanski755]

I’m glad that you’re doing longer format podcasts! Are you going to put them up on ITunes as well?

[@taxleverage]

They're out on Spotify and a few other streaming services!

[@ericascott401]

Unfortunately, this can easily happen even going to "legitimate" licensed pros. People are greedy and some are overworked in the financial world. So an employee is assigned this guy as a client. That employee could be halfway working while looking for another job. So cases like this get pushed out 3 or more months later before a manager realizes nothing was done. It's so sad.

[@allcountiesbookkeeepingllc3362]

Great channel and info!

[@JasonEkonomakos]

IRS : "Hey we were super slow with finding your mistake so we went ahead and charged you a fortune for all the time we took"

[@GreenFrxg]

I like this. As a person in the field, I wish I could do something like this!

[@Squibtorious]

Great episode! Jasmine rocks 🙌🏻🙌🏻

[@meanmachine99999]

This podcast is the 1% engineering assistance to the 10%

[@kiratoy365]

You are the best kind of professional

[@83zeus]

Great video. Love your content. Is the form you are recommending for appealing the penalty form 843? I also couldn't find the IRM website you mentioned (for $250k debt limit rule). Please include these types of details in future videos, or in the video comments!

[@armenpetrosyan425]

hi, so if one if world traveling and has a business for social media, would the hotel stays and equipment be tax write off? Thanks

[@UpgradingJeff]

@18:50 - " The IRS systems are just so slow". I guess that there is no "fair notice". I would like to think that if it takes 2 years for a correction to be made by the IRS that the penalties should not accrue before the IRS actually recognized that an error was made. This would avoid a bad faith assumption on the part of the IRS. The assumption should be that it was an honest mistake. It also should put the pressure back onto the IRS to be able to make corrections more quickly. Why not within 6-12 months of filing?

[@outscale_monarch4300]

Love all of your videos! Had a quick question in regards to write offs. I’m starting a Pokémon business of buying and selling cards and didn’t know what all could be written off. Could buying cards and going to conventions to sell cards be a write off? Before your videos I would assume yes but now I am unsure haha

[@isleburgjasonjoelboyd]

Come to NewnHaven CT yo lol

[@benbohannon]

Similar situation except mine was tied to PayPal collecting money from a charity golf tournament that got tied to me personally. After a while, it gets numbing and you just want to ignore all the IRS letters. They make good mulch. Maybe I should be on the show 😂

[@taxleverage]

You should get on the show! Let me know if you're interested :)

[@ashtonandrews3157]

I love this!

[@caylonwells839]

Great format

[@taxleverage]

Glad you liked it!

[@jamesbott3788]

She’s doing it all

[@owenhartman484]

Question for Jasmine, i am a day trader. If I decide to move to Puerto Rico and become a permanent resident there (Meaning I reside there for at least 6 months and 1 day of the year and can prove it of coarse without losing my US citizenship) would I actually be able to pay 0% in long and short term capital gains tax and still have access/be able to trade all US markets?

[@owenhartman484]

Correct me on anything I may be wrong about…

[@martinlutherkingjr.5582]

I think you also have to make a 5 figure donation to the puerto rican government each year

[@JabarBhatti-ot2hs]

Hello Jasmine I love your videos!! Do you have any advice for a real estate professional? Or can you make a video for realtors. Thanks

[@autobodypaint1746]

Great video. More please

[@azzamalmatrafi9102]

Has AI/chatgpt affected the way you work? if yes by how much r u faster now?

[@thequestion5935]

Jasmine are you on Spotify?

[@taxleverage]

Yes, you can find the Tax Leverage podcast on Spotify!

[@thechosenone2596]

Im pretty low level in the cpa firm I work at, not an EA nor a CPA nor have a degree, I just love accounting, could you file a form 911 and request a real response from an IRS specialist in this kind of situation where you dont really know to whom to turn

[@taxleverage]

Form 911 is for when the IRS is not doing their job and it helps brings in a third party to check in on the situation. But it wouldn't be the best option for a situation like in this podcast, they would pretty quickly close the case and tell you to handle it another way.

[@vmaxxk]

Amazing video.

[@godislove025]

Great video

[@EnzoCicero]

Great video as usual… Can you please do a video showing us how and where to get our IRS transcripts Step by step Thanks

[@taxleverage]

Glad you enjoyed. I'll keep this in mind for a future video, thanks for the suggestion!

[@jamescollier3]

haha. I learned that people don't know what recommendation means. Actually, one time it was with a tax guy, and he actually ended up in jail for tax issues.

[@paulradice3534]

Fascinating

[@nclevans]

Good job!

[@taxleverage]

Thanks!

[@Pens4Life85]

You didn't go over the specifics. What kind of 401k involved? How much of a withdrawal? Isnt the early withdrawal 10%? Did you pay that?

[@infinitybeyond6357]

i don't think this is intended as a 3hr deep dive. i think the main point is, -> shit happen -> these are stupid things NOT TO DO -> there are things TO DO

[@Ryan-Chicago]

I agree, I wanted 3 minutes on what actually happened.

[@infinitybeyond6357]

​@@Ryan-Chicago me too, but the dude might not be comfortable talking about it, right now. dude been through a lot, we can see it in his eyes.

[@Pens4Life85]

@@Ryan-Chicago yeah, basic fundamental facts that a tax attorney should ask and go over. I'm a financial investigator, those were my very first questions. We all know it's a 10% early withdrawal penalty on a 401k.

[@Pens4Life85]

@@infinitybeyond6357 definitely doesn't need 3hrs. I certainly didn't allude to that, you can understand that, right? When was the withdrawal, how much was it for, what was the tax incurred, did you pay it in 2020? He's trying to make it sound like a paperwork problem, but did he pay the early withdrawal penalty???

[@AnthonySneedGuru]

Jasmine, Wow! You are a tax angel! 😊

[@Wookierabbit]

THAT KROOKED LAWYER NEEDS TO BE IN JAIL!

[@farfaraway7066]

i get paid on a 1099 each year and i am 65. i do deliveries and take as many deductions as possible which typically reduces that income to 0. Net result, unfortunately, is that my SS income will be low. So my question is if I don't take the deductions and simply pay the taxes on those dollars will it raise my SS income? Or will it not raise it enough to make it worth doing because it would mean paying about $3500 in total taxes (estimated)??

[@GreenFrxg]

Taking as much deductions as possible sounds... reduces to 0.. sounds a little off. Is this your primary job? IRS would be like why are you doing this job if you aren't making any money. Be careful with the liberties you maybe taking to reduce income to near zero. To your question, yes it will raise it. Is it worth it... if your 1099 deductions are legit and you're not taking any personal expenses as deductions, keep doing what you're doing.

[@farfaraway7066]

@@GreenFrxg The deductions like the 0.65 cents / mile is standard but my point is that if I want to apply for a home loan they look at those deductions as expenses. In reality it's a deduction that reduces my income enough not to pay taxes and means what I take home each day really is what I make. Now to overcome the 1099 issue for the home loan I am considering NOT taking the deductions. I know they will add back the standard deduction and I think paying the taxes will ultimately cost me $2000-$3000.

[@GreenFrxg]

@@farfaraway7066 so are you asking is it worth not taking the deduction so you can show more income for your loan? How much of an increase in income will leaving the deduction off the return? Knowing the impact on if it will make enough difference to get you a loan is a tough call unless you know a mortgage guy. On the tax side, it sounds like you came up with an estimate. Can't really verify if it's accurate since there's not enough info. With an increase in Self employment income you'll pay more in SE tax but you'll get a deduction for 50% of SE tax and you'll also get the qualified business income deduction which is essentially 20% of your net income.

[@farfaraway7066]

@@GreenFrxg Correct...now, they essentially look at my taxes and it shows "0" due to the deductions. So, my thinking is I take deductions like the Standard deduction which the bank will add back and pay what I have to pay in order to count the income

[@GreenFrxg]

@farfaraway7066 Yeah that makes senses. Just confirm you're going to be reporting enough income to actually qualify for the mortgage you're looking for. Last thing you want is to pay the extra tax and not qualify at all. Unfortunately, you'll only know if you talk to someone that knows how the lending process works.

[@henrymui4239]

Love it!

[@taxleverage]

Glad you liked this episode!

[@thehoogard]

America... land of the free.

[@tbetical]

Wow... all from a simple turbo tax mix up...?

[@MacBook1ng]

I think the take-away is don't tap those retirement funds before it is time and then think you can avoid paying the penalties. He said he had a CPA who did prior taxes but he then thought he could do his taxes DIY after tapping retirement funds? Just doesn't pass the smell test, friends. Thought he could pull a fast one. The IRS sees these guys coming a mile away. He gambled. And lost. He really needs a financial planner to help him curb his spending habits and become more disciplined.

[@CL-yp1bs]

No issue with doing early withdrawals, even using Turbo Tax.. IF you have some common sense. Is it recommended? Of course not.. but even over age 59.5 you still need to pay taxes on the withdrawals unless its Roth. So yeah... he still would have been screwed since he didnt report anything.

[@KK-pm7ud]

Comment for the algorithm. Keep up the great work.

[@timerian]

The problem is the goverment.

[@JakePickle]

A simple bit of research and you’ll come to the same conclusion she provided. It’s odd that people struggle with this. Oh well.

[@jsparx]

God damn I hate the irs

[@ernieg]

i Need a Women Like Her

[@bsmlbn]

I think the first guy could have helped them, but they wanted "easy and less stressful" i could be wrong

[@RellikReyalp]

The first guy seems like taxfraud.

[@Gotfish]

Dang! The biggest shocker is that I didn't know that you can create an S-Corp and file for divorce with innocent spouse relief. That's crazy! Smells like a Saul Goodman to me.

[@quixgofar]

LUCCI!! 😅😄

[@JulioRamos-hg8dv]

I r the best

[@Winwin-sd4ui]

Jasmine looks like my favourite cornstar, Spencer Bradley.

[@htevo80]

Why where the same shirt every video?

[@martinlutherkingjr.5582]

Brand recognition

[@htevo80]

@@martinlutherkingjr.5582 never seen it before with any other creators, outside of "characters"

[@nicktaber2969]

This channel is awesome. I'd have a mental breakdown if it turns out she's a fraud.

[@KK-pm7ud]

The last 20 seconds of the video might have been better placed at the beginning of the video. You'll get more people sending you ideas to do podcasts. Since you have already done a video and posted it, you might consider doing that in the future. Also, you might add redo that last 20 seconds and put it in one of your shorter tax clips segment as a standalone to solicit potential postcast guests.

[@bsmlbn]

Is it me, or do both of thier voices sound strange, it sounds raspy and scratchy

[@USloyal2009]

Just want to leave comment. Your videos FUCKIN GOLDMINE

[@TUMATATAN]

Based on this video, I'm afraid to do ANY transaction. I'm just going to send my full paycheck to the IRS and have them send me back whatever they think I deserve a month to live off.

[@Pens4Life85]

They will keep it all. And penalize you for the inconvenience.

[@TUMATATAN]

@@Pens4Life85 I guess is better …. than jail?

[@dynamitesnipe2090]

@Jasmine, your website needs work and is not very functional. Neeps user experience improvement.

[@varskidajahles]

I did turrble tax in 2020 and ended up owing 5000

[@tallflguy]

Hate to say it, he should have went through the process with the tax attorney. 🤷🏾‍♂️

[@jamescollier3]

maybe he could have hidden on the other side of the flat earth?

[@will1498]

i guess sometimes doing it the right way is the long way.

[@jamescollier3]

Rich, as the gov loses billions!!!!!!!!!!!!

[@Mrmtl100]

your voices makes me to take a nap, why you guys talk with that low tone of voice?? good content

[@candeffect]

I can't watch. The gutter voices are too annoying.

[@DanLoFat]

Oh my God I can't stand the vocal fry from both people?

[@Brick1978]

Shouldn't you be more professionally dressed?