If You Don't Have Money to Pay Your Taxes, You Have Legitimate Options
If you don't have money to pay what you owe the IRS, you have a few options to work with. Whatever you do, don’t ignore the letters from the IRS and don’t let your back tax problem go unattended. The IRS has a great deal of power when it comes to recovering money they think is theirs.
When you owe the IRS money, they can garnish your wages, levy your bank accounts, put a lien on your home and seize other assets.
Here's what you can do if you find yourself not being able to pay your taxes. Note, we always recommend getting in touch with a tax resolution professional to help avoid the harsh penalties and interest that accrued on your back taxes. It’s far easier to navigate towards tax resolution, if you have a professional working on your behalf. If you’d like to schedule a no-cost confidential tax relief consultation, contact us here.
First, make sure that you file your returns
Even if you have no hope of being able to pay your taxes, you must at least file your income tax returns. Whatever the penalties are for not paying your taxes, the penalties for not filing are much larger and non-filers can be subject to a criminal investigation. . The IRS will remove penalties for not filing and not paying but you have to have a good reason. We can request to have your penalties removed or reduced. It's also important to remember that when you file for an extension, it only gives you more time to file. Your payment date remains unchanged.
Revisit your W-4 withholdings
If your employer withholds money from your salary to pay your taxes with, you shouldn't have to worry about paying anything extra from that income source. If you do owe more, it's a sign that your withholding exemptions are incorrectly reported on your W-4 form. To make sure that you don't get into tax trouble repeatedly, you should make sure your W-4 form is correct and get advice from a tax professional about the kind of withholdings necessary for exemptions.
Make a partial payment
If you can't afford to pay all that you owe, you should pay whatever you can. While you will still be hit with interest and penalty charges, they will be smaller than they would be if you paid nothing. These charges are proportional to what you owe the IRS.
Try to work with the IRS
If you can't pay, there are resolution options available to you if you qualify for them. They include a payment plan or an offer in compromise to name a few. You need to first step up and admit to your inability to pay, though.
An offer in compromise is an agreement between the IRS and the taxpayer that allows the taxpayer to settle their debt for less than the amount owed. Sometimes, for a fraction of the amount owed. There are strict eligibility requirements and you should consult with a tax resolution specialist first.
An installment agreement, aka payment plan, is an agreement between the IRS and the taxpayer that permits the taxpayer to pay back their debt over time, generally in 60-72 months. Depending upon the amount owed, and ability to make monthly payments, determines the type of installment agreement the IRS will allow, as there are several variations of these payment plans. An experienced tax resolution specialist will guide you through the maze and myriad of these different options.
If you need an expert tax resolution provider who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.
Is it Bad to Settle With the IRS?
You may have heard on the radio, TV, and online, that you can settle your tax bill for less than what you owe. But are these claims actually true? And can you really settle your tax debt without hurting yourself in the long run?
Some of these national tax resolution firms you hear advertising offer very little service, just look at their Google and Yelp Reviews. So it’s important to know who to trust and get educated on what your options are to resolve your tax problem.
As a local expert Tax Resolution Firm ourselves serving Louisiana, we encourage all readers facing a tax problem to contact us for a free consultation.
The truth is that though it’s often harder than they claim to settle for less than you owe the IRS, it is possible and you must first learn if you qualify for the program. This is called an "offer in compromise," but settling is not necessarily a bad thing.
An "offer in compromise" is a negotiated settlement between the taxpayer and the IRS that is intended to help taxpayers who owe more than they can pay. In a lot of cases, you can settle your entire tax bill for a fraction of what you owe, if you qualify. You can only get one if you genuinely can't afford to pay back taxes or if doing so would cause extreme hardship. This can apply, for example, if you have become disabled.
You have to be current on all legally required income tax returns and must be current on any estimated tax payments if you are self-employed and you can not file for bankruptcy.
The IRS would rather take an offer in compromise than send you to collections and potentially get less money. Taking an offer in compromise will NOT affect your credit score.. Having your offer in compromise accepted is a far better financial decision in the long run.
However, working out what offer to make on your own and learning the whole process can be challenging. That’s like representing yourself in a court of law without a lawyer. Not smart. A better answer is to find a tax resolution specialist that can help you with the process to see if you qualify and determine what you will have to pay. A tax resolution specialist will also be a licensed CPA, Enrolled Agent or an Attorney.
One of the great things about working with a qualified and local tax resolution firm is that you get protection from the overbearing IRS, letting you sleep better at night knowing you’re on your way towards permanent tax resolution. They can head-off any impending garnishments of your paycheck or levies on your bank account.
Settling with the IRS is a good thing and is often the best answer to dealing with your back tax bill and moving on with your life.
If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.
Do You Owe Back Taxes? Why You Should Stop Panicking & Start Planning
If you owe back taxes to the IRS, some amount of panic is understandable. After all, the Internal Revenue Service has the power of the federal government in its corner, something no other debt collector can claim. They are considered the most brutal collection agency on the planet.
It is easy to freeze up and just do nothing when you owe back taxes to the IRS, but hiding from, or doing nothing about your tax debt will not make it go away. In fact, ignoring the taxes you owe will only make the situation worse, since interest and penalties can really add up. You also risk having your paycheck garnished (the IRS does not need a court order to do this) or your bank account levied. The IRS can also file a Notice of Federal Tax Lien making it all but impossible to obtain financing for a car or home.
So instead of panicking about your tax debt and hoping the problem will go away, you need to take some proactive steps. Now is not the time to panic and hide - now is the time to start taking action.
Some of these steps you can do on your own if you’d like, while others will likely require the intervention of an experienced tax resolution expert. Here are some proactive steps you can take to get a handle on your tax debt. If you need help resolving your IRS tax problem, contact us here. We help people with IRS problems every day.
Confirm the Amount Owed
When you owe back taxes, one of the first things you should do is make sure you really owe the money. The IRS has been known to make mistakes, a lot of mistakes, and the agency is far from foolproof. Contact the IRS or have us do an IRS transcript analysis to determine the amount the IRS claims you owe.
Seek Out Deductions You May Have Missed
At the very least, you may not owe as much as you think you do, and every dollar you can remove from the bill is one more dollar in your favor. Now is the time to scour your past and current tax returns, looking for deductions and tax credits you might have missed.
Unless you are a seasoned tax expert, you will probably need some professional assistance to make this happen. If you are already working with a CPA or tax expert, you can ask them to look at your past tax returns but only a tax resolution expert, who helps people like you for a living, can protect your income and assets as you go through the process.
If you missed a few deductions and tax credits along the way, your tax professional can file amended returns on your behalf, lowering the amount of tax debt you owe - and possibly eliminating it altogether. However, you usually can’t go back more than 3 years to amend returns.
Look for Special Programs You May Qualify For
The bad news is the IRS wants its money and has the power to collect it.
The good news is the tax agency also offers several programs tax filers can use to make the repayment process easier. In some cases, the IRS may even be willing to settle for less, possibly much less, than the total amount of back taxes you owe.
These programs are not available to everyone, and if you have the resources needed to pay your back taxes, the IRS is unlikely to give you much of a break. But if your resources are limited, the tax agency may decide that a small amount of tax repayment is better than none at all.
The first step in the process is finding the programs for which you might qualify, and that will probably require the help of an experienced tax resolution expert. Most CPAs do not have this experience. Negotiating with the IRS is not an easy thing to do, and you may need help to drive the best bargain and reduce your back taxes. In the end, it may be well worth paying a tax relief expert to negotiate on your behalf, especially if you end up with a much lower tax bill.
It is easy to panic when you owe back taxes, but you should not let fear get in your way. The longer you ignore the problem, the worse it is likely to get, and the sooner you act, the better off you, and your finances, will be. There is a solution to every IRS problem. Let us see what IRS tax debt settlement programs you qualify for today.
7 Reasons to Work with a Tax Resolution Professional To Resolve Your Back Taxes
When you owe money to the IRS, it is hard to think about anything else. While being in debt is never fun, no matter who the creditor is, the IRS enjoys almost unlimited power to collect the money they are due.
Unlike your mortgage lender or credit card company, the Internal Revenue Service has the power to attach your wages, raid your bank account and even take your freedom. No other creditor even comes close in terms of its power and influence, and taking on the agency on your own could be asking for trouble.
If you have received a notice from the IRS, you need to act fast, and you need the right assistance in your corner. Taking on the IRS requires specific expertise, and that is why it is so important to work with a quality tax resolution company. Here are seven reasons why working with a tax resolution specialist could save your good name - and your bank account.
You gain specific expertise
The IRS is a specialized agency, and you need expert advice and guidance to get the most positive resolution.
It will give you peace of mind
Just being contacted by the IRS can make your heartbeat a bit faster, but working with a tax resolution expert can set your mind at ease once you hire a tax resolution specialist. Generally, once you hire a tax resolution expert you won’t have to meet or speak with the IRS. They will handle all communications and correspondence with the IRS.
The tax resolution process could save you a lot of money
Tax resolution professionals are experts at settlements, and working with one could save you a ton of money.
Timely action could save your home and property
If you wait too long, you could put your home, business, bank accounts, and personal property at risk. Time is of the essence when it comes to resolving tax issues, and timely assistance could make a world of difference.
You will feel less alone
Few things feel as lonely as fighting the IRS on your own. When you work with a tax resolution expert, not only do you not have to go it alone but they actually step into your shoes to represent your best interests.
You will have a chance to file missing returns
When faced with a big tax bill, it is easy to do nothing, but failing to file legally required tax returns could have serious consequences down the line. If you have years of unfiled returns, a tax resolution expert can help you catch up.
You could save your credit score
Unresolved issues with the IRS will reflect badly on your credit report, lowering your credit score and making it harder to borrow money or qualify for a mortgage. Timely tax resolution could preserve your stellar credit score and help you avoid those serious consequences.
Owing money to the IRS can be pretty frightening. There is a reason those three letters strike so much fear into the hearts of ordinary citizens, even those who have done nothing wrong.
If you are in trouble with the IRS, you cannot afford to ignore the issue, so act fast and get the help you need today. Working with a tax resolution expert carries a host of benefits, starting with the nine outlined above.
Most likely, you wouldn’t go to court without a lawyer. Similarly, it’s best not to deal with the IRS without expert representation which can be provided by a tax resolution expert, who by training, is also a CPA, attorney, or enrolled agent.
Owe Money to the IRS? Use These Money Saving Tips Before You File
Tax time is not fun, but reaching the end and finding you owe money is even worse. If the results of your tax preparation activities are less than optimal, you might think the only choice is to write the check, but that may not be the case.
We specialize in helping people who owe $10,000 or more to the IRS or have years of unfiled tax returns. If you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today.
However, depending on the circumstances and the time of year you’re reading this, you may be able to trim your tax bill now, before you file and write that check. Here are some possible ways to trim the high cost of filing taxes and keep more money in your pocket.
Boost Your Year-End 401(k) Contribution
This might not help you for 2021 but planning ahead is always key and for 2022 you still have time to increase the amount you put into your 401(k) plan at work. All it takes is a form from HR and simple instruction and you will be putting more money aside for the rest of the year - and reaping the tax benefits when you file.
Boosting the amount you put into your 401(k) for the end of the year is one of the best ways to reduce your taxable income. You might even decide to make the increase in contribution levels permanent, giving you an additional benefit year after year.
Beef Up Your IRA Contributions
You have until the tax filing deadline to make your final IRA contribution, and putting more money in now could save you a lot of money when you file. If you qualify for a deductible IRA, you can use the contributions to reduce your taxable income, giving you a big benefit and helping you save a lot of money.
It is important to check the contribution limits carefully to make sure you do not run afoul of the IRS regulations. If you contribute too much you could end up with a penalty, and that will erase any benefits you would otherwise have received.
Sell Your Losing Stocks or Crypto Investments
If some of the stocks or crypto you bought have been less than stellar performers, cutting them loose could save you money on your taxes and free up the remaining cash for better investments. This strategy works particularly well if you have capital gains elsewhere in your portfolio since you can use the losses on some stocks to offset the winners in your portfolio.
There are a number of things to consider when using this strategy, including how long you have held the stock and your feelings about the company. If you are unsure about how to make the sale, or whether or not you should, just check with your broker or financial advisor.
No one wants to owe money to the IRS, and the tax agency can be especially difficult to deal with. If you want to avoid this unhappy scenario, sound tax planning throughout the year is your best defense.
If the results of your careful planning still show that you owe money to the IRS, there are things you can do, even late in the game. The steps listed above can reduce your overall tax bill and give you more breathing room with the IRS.
OWE BACK TAXES?
Our firm specializes in tax resolution and helping people who owe the IRS or state $10,000 or more. We’ve seen taxpayers get blindsided every year by a huge tax bill and often fall behind on their taxes for years on end. If that’s you, we can help. Contact our firm today to discuss your tax debt settlement options.
Gig Workers and the IRS: 3 Steps to Tax Filing Success
If you are a member of the gig economy, you are not alone. Millions of others have made the same choice, voting with their feet and their time, and leaving the world of traditional employment behind.
As a member of the gig economy, you have a lot to look forward to, but tax season is probably not one of them. April 15 is a stressful day for everyone, but gig workers face some additional challenges their traditionally employed counterparts do not. Faced with these issues, it's important to tackle the problem head-on. Here is a three-step plan for making tax time a little more manageable.
Note: It’s not uncommon for gig workers to find themselves behind on their taxes. If you find yourself in tax debt, owe back taxes, or are under audit, our firm can help negotiate with the IRS and potentially settle your tax debt.
As a tax resolution firm, we always recommend that you reach out to a professional who knows how to aggressively negotiate and defend you against the IRS on your behalf. Call us today. Our tax resolution specialists can navigate the IRS maze so that you have nothing to worry about. That said, let's jump into the 3 steps.
Step 1 -- Start As Early As Possible
It's always a good idea to start your tax planning early, but it's even more critical when you are self-employed or a member of the gig economy. If you are used to getting your taxes done in an afternoon, you have a serious wake-up call in front of you. If you do not start early, you might not finish on time.
Keep in mind that you may not be able to file early, as it likely will take some time to wrap your head around the complicated tax laws, find the right tax professional, research deductions and ensure that all your income numbers are correct. That does not mean, however, that you cannot start early. Taking initiative early is sure to make your life less stressful when the April 15 tax filing deadline rolls around.
Step 2 - Make Sure You Are Accounting for All Your Income
It's easy to overlook some of your income when you are self-employed, especially if you are juggling multiple clients and doing possibly hundreds of different gigs. If you let something slip through the cracks, however, the IRS is likely to call you on it -- and hand you a big tax bill for their trouble.
As you get ready to file your taxes, take the time to add up all your income across many different sources, including gig work, freelancing, consulting work, and anything else that brought in money in the year just past. You might even want to cross-reference that income against other sources such as bank deposits and payments by payment processors like PayPal, Stripe, and others. This final step could help you uncover income you might otherwise have missed.
Step 3 - Review Your Possible Deductions
The bad news is that being a member of the gig economy can cause some tax headaches but there is good news as well. As a gig worker or self-employed individual, you have access to some lucrative tax deductions, and now is the time to review and claim them.
Depending on your situation, you may be able to write off things like the amount you pay for internet access, phone service, and office supplies, and those deductions could lower the amount of income subject to the self-employment tax, an important consideration for gig workers and their families.
If you maintain a dedicated space for conducting business in your home, you may be able to take the home office deduction, but it is important to know and follow all the rules. Doing this wrong can trigger a nasty letter from the IRS. These rules can be complicated, and that brings up one final piece of advice.
When you work for a traditional employer, your tax filing needs are pretty simple. Your employer sends you a W2 at the beginning of each year, and you simply report the amount you made and how much you paid in taxes. From there, it's simply a matter of math, and in no time your taxes are done.
Your life and your tax situation are far more complicated when gig work and self-employment income are involved. Even if you have been comfortable doing your taxes up to now, your first year of gig work might also be the first time you reach out for help.
The gig economy is going strong, and this fast-growing segment of the economy is showing no signs of slowing down. If you have been working in this economy, you have enjoyed the freedom and flexibility inherent in the business model, but now it's time to pay the piper -- and the IRS. The three-step plan laid out above can make tax time at least a little easier, so you can get on with the rest of your life.
Owe Back Taxes?
If you find yourself a large surprise tax bill or a collection notice from the IRS, the steps you take next are absolutely critical. Trying to take on the IRS on your own is a dangerous, and potentially expensive, thing to do, and you should always contact a tax resolution firm.
By working with an expert, you can gain access to vital information about small business settlement programs the IRS offers. You can gain access to the expertise you will need to settle your tax bill for less than you owe and get back in the good graces of the IRS. Time is of the essence when the IRS comes calling, and with the interest and penalty clock ticking you do not have one second to waste. So call us, your tax resolution expert, for a case evaluation.
Tips for Making Self Employment Less Taxing
A growing number of people are voting with their skills and leaving the world of traditional employment behind. These are the folks who are opening their own small businesses, the people who are embracing freelancing, and the men and women who are using gig work to make a good income.
As this trend continues, many of those newly self-employed individuals are finding themselves at a loss, especially when tax season rolls around. One of the worst feelings is working so hard throughout the year, only to get blindsided by a huge tax bill you weren’t ready for.
While traditional employees can rely on the companies they work for to withhold taxes and report their earnings to the IRS, the self-employed are expected to complete these actions on their own.
To make matters worse, the self-employed often pay higher taxes than their traditionally employed counterparts, leaving them short of the cash they need when April 15 rolls around.
If you are newly self-employed and want to avoid this fate, here are some timely tips for making your self-employment activities less taxing.
Set up a business bank account
It is important for the self-employed to keep their personal and business activities separate, and the best way to do that is with a business bank account. A basic business checking or savings account will make it easier to track your income and expenses, making tax season easier and less costly.
Open a business credit card account
Having a separate credit card in the name of your business will give you an easy way to pay expenses applicable to your self-employment income. This can make expense tracking, reporting, and tax filing a lot easier.
Avoid underpayment penalties by making quarterly payments
When you work a traditional job your employer is responsible for accurate tax withholding, but the self-employed are not so lucky. As a self-employed individual you are responsible for paying your taxes on a timely basis, and failing to do so could trigger costly penalties and interest. Making quarterly payments to the IRS and state is the best way to avoid those expensive repercussions.
Track expenses throughout the year, not just at tax time
If you wait until April to add up your expenses, you could miss deductions that would have otherwise reduced the amount you owe. Tracking expenses when they are incurred will help you avoid this underreporting, so you get credit for every penny.
Research retirement plans for the self-employed
The self-employed have access to some exceptionally generous retirement plans, including solo 401(k) plans and SEP-IRAs. These accounts can sharply reduce the amount of taxes you pay, so do your homework and choose the one that is right for you.
Have your taxes reviewed by a qualified tax professional
When your taxes are simple, doing them yourself is pretty easy. Tax software makes tax filing simple, but that simplicity could be costly when you are self-employed. Even if you are confident in your abilities, having your work reviewed by a CPA or enrolled agent could save you a lot of money.
There is a lot to love about self-employment, from the chance to work at home to the opportunity to live life on your own terms. Even so, being self-employed can be taxing, quite literally, and it is important to plan carefully from the start. The tips listed above can help you reduce your taxes, so you can keep more of the money you worked hard for.
OWE BACK TAXES?
Our firm specializes in tax resolution and helping people who owe the IRS or state $10,000 or more. We’ve seen taxpayers get blindsided every year by a huge tax bill and often fall behind on their taxes for years on end. If that’s you, we can help. Contact our firm today to discuss your tax debt settlement options.
Are You Self-Employed? Here's How to Prepare for Tax Time and Avoid Getting Into Tax Debt
One of the biggest stories in the world of business is the growing shift toward self-employment. An ever-increasing number of men and women are saying goodbye to their colleagues, their cubicles, and their corporate overlords, choosing instead to make their own way in life.
If you are one of these self-employed individuals or a new member of the gig economy, tax filing season could be more complicated than you think. Instead of merely plugging in the numbers from your W2, you will need to gather multiple forms, crunch the numbers, seek out deductions and look for solutions to tax problems you did not even know existed.
Faced with those difficulties, you will want to start your tax planning early. Here is a step-by-step plan for making the April 15 tax filing deadline a little bit less daunting.
Note: If you find yourself in tax debt, owe back taxes, or are under audit, our firm can help negotiate with the IRS and potentially settle your tax debt. As a tax resolution firm, we always recommend that you reach out to a professional who knows how to aggressively negotiate and defend you against the IRS on your behalf. Call us today. Our tax resolution specialists can navigate the IRS maze so that you have nothing to worry about.
Verify Your Advance Tax Payments
The only thing worse than paying money to the IRS is not getting credit for it. As a self-employed individual or gig worker, you have probably made advance payments to the tax agency on a quarterly basis, so dig out those canceled checks, grab those receipts and get ready for tax time.
When you file your taxes you will need to input the dates you submitted those quarterly payments, and those days may or may not coincide with the formal schedule laid out by the IRS. Keep in mind that a small inaccuracy could create a big problem, so gather the documentation and get it right.
Add Up Your Income
Even if you are relying on your clients to issue 1099 forms, it is a good idea to tally up your income on your own. Keep in mind not all clients may issue 1099s, and the ones that do could report inaccurate or incomplete figures, and by adding it up on your own you will be able to catch these problems early, while replacement forms can still be issued.
Adding up your income will also serve a number of other purposes, each important to your timely tax filing and the maximizing of your hoped-for refund. For one thing, knowing how much you earned will allow you to maximize retirement plan contributions aimed at the self-employed, a big potential savings you might otherwise miss out on. Adding up your earnings will also allow you to estimate your tax due or refund, giving you time to prepare and helping you avoid an unpleasant shock when April 15 rolls around.
Tally Your Expenses
The world of self-employment can be taxing, but there are also potential savings to be had. As a self-employed individual or member of the gig economy, you may be able to write off everything from office supplies and furniture to computers and gasoline for your car.
Now is the time to tally your expenses so you do not miss out on a valuable deduction when filing season rolls around. Be sure to look at expenses that may have been paid automatically as well, including recurring payments for routine costs like internet access and phone service.
Seek Out Additional Deductions
The calendar year may be over, but you still have time to reap some valuable deductions. Now that you know how much you have earned in self-employment income, you have the opportunity to seek out new deductions and maximize the ones you have already taken.
If you participate in a retirement program for the self-employed, for instance, you can contribute additional money up to the tax filing deadline, giving you a chance to pile current earnings in and apply them against the taxes that would otherwise be due. These generous tax breaks for retirement savings are among the most valuable for the self-employed, and you still have time to take advantage of them.
It goes without saying that you should consult a tax expert for specific questions about retirement plan contributions, possible deductions, and other applicable subjects. Even if you plan to file your own taxes, consulting with an expert could save you a lot of money.
Run the Numbers through a Tax Estimator
For many in the self-employed community, early filing is simply not an option. If you have investments in a brokerage account, for instance, you may not receive the tax forms you need until well into February or even March, making tax planning that much more difficult.
The fact that your personal tax filing season will likely be delayed is certainly frustrating, but it does not mean you cannot run the numbers on your own. You can estimate your tax bill online using the figures you have already compiled, giving you a good idea of what to expect when the real filing season rolls around.
A number of tax preparation companies, including big names like H&R Block and Intuit, provide free online calculators, so you can assess your tax situation well in advance. If you prefer you can simply enter the numbers you do have into your favorite tax filing software program for a fast and easy estimate.
Tax filing season is stressful for nearly everyone, but it can be a particularly challenging time for gig workers and the self-employed. From chasing down forms from reluctant clients to finding deductions that will lower the tab, the self-employed and members of the gig economy must overcome many hurdles by the time the tax filing deadline rolls around, and the sooner they get started the easier their lives will be. The tips listed above will help you slay your own personal tax demons, so you can rest easy and focus on building your business.
If you find yourself a large surprise tax bill or a collection notice from the IRS, the steps you take next are absolutely critical. Trying to take on the IRS on your own is a dangerous and potentially expensive, thing to do, and you should always contact a tax resolution firm.
By working with an expert, you can gain access to vital information about small business settlement programs the IRS offers. You can gain access to the expertise you will need to settle your tax bill for less than you owe and get back in the good graces of the IRS. Time is of the essence when the IRS comes calling, and with the interest and penalty clock ticking you do not have one second to waste. So call us, your tax resolution expert, for a case evaluation.
Avoid the April 15 Blues - Take a Step-by-Step Approach to Your Taxes This Year
It is no wonder so many Americans dread the April 15 tax filing deadline. The U.S. tax code already contains more words than the Bible, and hundreds of pages of new rules and regulations are often added.
With so much complexity, it is no wonder so many of us put off filing our taxes until the last possible minute, but taking that approach introduces its own stresses and can potentially land you in hot water with the IRS. What if you do not get it done on time? You can file for an extension, but you are still required to pay the taxes you owe plus penalties and interest. How do you know you didn't make a mistake with your last-minute tax filing? Something as simple as a mathematical error could increase the odds of an audit and put you in the crosshairs of the IRS.
We specialize in helping people who owe $10,000 or more to the IRS or have years of unfiled tax returns, so we’ve seen our fair share of mistakes made by innocent taxpayers. If you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief.
That said, we recommend taking a methodical and step-by-step approach to preparing and filing your taxes and avoiding burying your head in the sand on April 15th. As with any unpleasant and complicated task, breaking your taxes down into smaller and more manageable chunks can make things easier. This year, vow to take a step-by-step approach to your tax return. If you follow these simple steps, you could be done with your taxes before you know it.
Step 1 - Set Up a Command Center
Chances are you will start receiving tax documents in early January, and you may still be receiving those documents in March. That means you need a convenient place to keep all those documents. Setting up a command center in your home makes it easier to store those documents and keep them at hand.
If you have a home scanner, take a few minutes to image each document as it arrives. Set up a special folder on your computer or cloud storage service to hold all those documents. Those electronic copies can be invaluable if the originals are damaged or destroyed.
Step 2 - Choose A Good Tax Preparation Service (But Use A Tax Resolution Service For More Complicated IRS Issues)
While they cannot make the task totally painless, tax preparation professionals do make the process a great deal easier.
Keep in mind, if you owe multiple years of taxes and have multiple years of unfiled returns, we recommend reaching out to a tax resolution firm that will understand your unique situation and find the tax relief you need. Most tax preparers aren’t trained in complex tax resolution, so find the right firm to help you with your case.
Step 3 - Enter Your Tax Documents As You Get Them
One of the great things about technology is that you organize and file each tax document as you get it, often you can download all your tax documents from various online services. For example, your direct deposit payroll service will give you your W2 and different vendors provide statements and 1099’s online. If the mailman brings you a 1099-INT or a W-2, you can simply scan things as they come in.
Just open each document, scan it to create an electronic backup and log on to your favorite secure cloud storage to file your documents. Whether you get five tax documents a day or just one, entering the information now can save you time later on.
Step 4 - Review Your Documents and Final Tax Return
After you think you have all your documents organized and your tax return is ready to file, the next step is to review everything and make sure there aren’t any obvious issues. Go through the paper and electronic copies and check each one off on your tax return. If any of those documents are missing or anything is wrong, go back and enter them right away.
Step 5 - Bring It All Together
Now that the final review is complete and all the documents have been entered, it is time to bring it all together and actually file your return. Your tax prep professional should include a series of checks designed to catch common errors and point out audit flags. Be sure to ask questions and correct any problems you might find. Be sure to print off a copy of your tax return and save an electronic version to your computer.
Nothing can make filing taxes fun, and this annual chore will never be a pleasant one. Even so, you can make the task less taxing by breaking tax filing down into its component parts. Following the steps outlined above can help you deal more effectively with your tax bill and all the complexities of the tax code.
OWE BACK TAXES?
Our firm specializes in tax resolution and helping people who owe the IRS or state $10,000 or more. We’ve seen taxpayers get blindsided every year by a huge tax bill and often fall behind on their taxes for years on end. If that’s you, we can help. Contact our firm today to discuss your tax debt settlement options.
Tax Relief Options for Small Business Owners
If you are running a small business, you have one unwanted partner that will dig into your pocket every year, it’s the IRS. The IRS wants to know what you are doing, how much you are earning, and most importantly how much you are paying in taxes, and the tax agency is becoming increasingly aggressive in this regard. While the audit rate for individual returns has been hovering at far less than 1%, the audit rate for small businesses can be as much as 10 times higher.
It does not matter if you operate as a sole proprietor and use Schedule C to claim your income or if you are set up as a C-corp, S-corp, or LLC - the IRS is watching what you do, and if they think you are not paying your fair share they will certainly come calling. When that demand letter from the IRS arrives, knowing what to do next can make all the difference, and the more you educate yourself the easier it will be to deal with and eliminate the tax debt.
Note: As a tax resolution firm, we always recommend that you reach out to a professional who knows how to aggressively negotiate and defend you against the IRS on your behalf. If you owe back taxes or are under audit, our firm can help negotiate with the IRS and potentially settle your tax debt. Call us today. Our tax resolution specialists can navigate the IRS maze so that you have nothing to worry about.
Small business owners are increasingly the target of enforcement efforts by the IRS, but the IRS does have some programs in place to make paying what those business owners owe easier. In some cases those small business tax relief and tax resolution programs let you settle for less than what you owe but qualifying is not as straightforward as you might think.
For businesses that may be eligible, the assistance of a tax resolution specialist is absolutely critical. These experts can help guide you through the process and make sure you qualify, so you can rest a little easier and get back to building your business.
Payment Plans/Installment Agreements
If the amount your small business owes to the IRS is relatively small and you do not want to deal with additional hassles, it may make sense to pay the entire bill in full. If paying in full would be a hardship, the IRS does offer payment plans, and setting one up can make paying back what you owe easier and more financially palatable.
Keep in mind that interest will continue to accrue while the debt remains outstanding, and that is something to think about.
Offer In Compromise
If you’re under a lot of financial hardship, it may make more sense to try for
an offer in compromise (OIC), a special IRS program that could allow you to pay back less than you owe.
The offer in compromise program is a popular one with individual taxpayers and small business owners. If paying the entire amount would create a financial hardship for you, your family or your business, a tax resolution specialist can help you make the case to the IRS that you deserve a break.
What’s the best option?
Each of these options has its pros and cons, and it is important to understand how these programs work and who qualifies to use them. If your small business is in trouble with the IRS, taking the right action right away could reduce the amount you owe, give you some breathing room and allow you to focus on your clients - not on your taxes.
Running a small business has its challenges, but those difficulties are nothing compared to the stress and anxiety small business owners feel when dealing with the IRS. With so many small business owners now in IRS crosshairs, it has never been more important for freelancers, gig workers, and the self-employed to have an advocate in their corner.
If you find yourself on the wrong end of an audit, a tax bill, or an enforcement action from the IRS, the steps you take next are absolutely critical. Trying to take on the IRS on your own is a dangerous and potentially expensive, thing to do, and you should always contact a tax resolution firm.
By working with an expert, you can gain access to vital information about small business settlement programs the IRS offers. You can gain access to the expertise you will need to settle your tax bill for less than you owe and get back in the good graces of the IRS. Time is of the essence when the IRS comes calling, and with the interest and penalty clock ticking you do not have one second to waste. So call us, your tax resolution expert, for a case evaluation.
