4 Common Tax Return Mistakes
 by TaxRezPro

4 Common Tax Return Mistakes

As the tax-filing season unfolds, many taxpayers are taking the bull by the horns and doing their own taxes. Though it may seem like good news for the individual taxpayer, it’s important to watch out for common tax filing mistakes. Tax preparation software makes some errors like addition and subtraction blunders less likely, but even the best software cannot eliminate all potential problems and human error. If you are getting ready to file your tax return, be sure to take a second (or third) look before you hit send. Keep a close eye out for these 4 common tax return mistakes to ensure the IRS does not come knocking at your door.

Note: If you do get in trouble with the IRS and they claim you owe $10,000 or more, call us at 1.888.4TAXREZ or use our contact form and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

That said, let’s jump into the 4 common tax return mistakes that could land you in tax trouble.

1. Transposed Numbers

If the 1099 you receive shows $6300 in income and you inadvertently enter $3600 instead, the IRS may see this as a tax dodge instead of an innocent mistake. At best, transposing numbers will slow down your refund and raise a red flag with the tax agency. At worst, it could trigger an audit or further examination of your entire return.

IRS computers are very good at comparing the figures taxpayers report to the ones they receive independently from banks, brokerage firms, and other agencies. Be sure to double-check and verify every number you enter and make sure it is right. Your tax software can tell you if your numbers do not add up, but they cannot catch transposed figures.

2. Misspelled Names

It is easy to misspell a name or transpose a Social Security number when entering dependent information, but doing so could cause real problems with your return. Be sure to double-check the names, ages, and Social Security numbers of all your children before sending your return to the IRS.

Do not assume that all of that information will be transferred from a prior year’s return.

3. Missing Social Security Numbers

It is easy to forget this vital piece of information, and doing so could delay your return and cause long-lasting problems. You may assume that your tax prep software will automatically enter your Social Security number, but that does not always happen.

Be sure to give your Social Security number (and that of your spouse) one last look before filing your return. That last-minute check could save you a world of trouble later on.

4. Not Reporting All Your Income or Taking Too Many Deductions

The IRS will likely get notified of any income you received throughout the year, and it doesn’t just include your W2 wages. It’s important to keep track of all your income and report it to the IRS correctly to avoid any problems.

It can also be tempting to click a few extra boxes and input a few made-up numbers as deductions to bring your tax liability down. DO NOT DO THIS. Just because the software lets you do this, doesn’t mean you should.

It’s not the software’s job to tell you whether or not you should be taking that extra deduction or write off, it’s the taxpayer’s job, to be honest, and file their tax returns correctly.

Need Tax Relief?

If you made a mistake on your tax return and end up on the receiving end of an IRS notice, or if you have years of un-filed tax returns don’t wait, contact us today. There is a solution to every IRS problem! Let us help you stop worrying and start living!

Contact Us Today

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax
Cryptocurrency And Your Taxes
 by TaxRezPro

Cryptocurrency And Your Taxes

Cryptocurrency has become an incredibly popular way to invest, but the tax side of this virtual coin can be difficult to navigate. The IRS has gone back and forth over the years on its stance on cryptocurrency, making it confusing even for the most diligent investors. So here’s what you need to know about cryptocurrency and your taxes.

In March of 2021, the IRS announced Operation Hidden Treasure to crack down on cryptocurrency reporting. If you’ve bought and/or sold cryptocurrency recently, it’s important to declare your crypto correctly on your tax forms in order to avoid fraud and evasion charges.

Here’s what you need to know about cryptocurrency and your taxes.

If you know you owe IRS back taxes on your crypto gains, it’s important to reach out to a tax resolution firm like ours that is skilled in negotiating back tax debt with the IRS. We can help you file amended returns and get you back in compliance, while potentially negotiating with the IRS on your behalf. Contact us today for a consultation.

What Is Operation Hidden Treasure?

Operation Hidden Treasure is a joint effort by the IRS Civil Office of Fraud Enforcement and its Criminal Investigation Unit. This operation is designed to search for unreported income from cryptocurrency.

Operation Hidden Treasure has trained agents to examine the blockchain in order to find signs of tax evasion. Blockchain is the digital ledger that tracks your cryptocurrency mining and transactions. The signs that IRS agents look for are marked as signatures that make it easier to detect further fraudulent activity.

Crypto users have found ways to skirt reporting requirements by sending multiple transactions under a certain dollar amount or pouring their virtual currency into shell corporations, different countries, and cold storage. The IRS is also collaborating with European law enforcement agencies to tackle international fraud.

How To Protect Your Assets

The IRS considers virtual currency to be property akin to gold, rather than money and is taxed accordingly. If your only crypto transaction this year was purchasing crypto with US dollars, then that does not need to be reported, according to the IRS FAQ on their website. However, if you sold your crypto or you traded your crypto for any goods or services, then that does need to be reported.

When you sell your crypto, keep track of its value when you purchased it, and its value when you sold it. While crypto and the IRS can both be murky subjects, your transparency is the key to protecting your financial assets from future tax audits.

Need Tax Relief?

To get ready for the upcoming tax season, it’s important to get your portfolio organized. If you have bought, sold, or traded crypto in the past year, contact a tax lawyer or a tax resolution firm like ours for advice on how to report your cryptocurrency transactions. There is a solution to every IRS problem! We help you stop worrying and start living.

There is a solution to every IRS problem!

Contact Us Today

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax
Tips for Making Self Employment Less Taxing
 by TaxRezPro

Tips for Making Self Employment Less Taxing

As more people open their own businesses, freelance, and use gig work for income, here are 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 folks who are opening small businesses, embracing freelancing, and using gig work to make a great income.

As this trend continues, many newly self-employed individuals are finding themselves at a loss, especially when tax season rolls around. Getting blindsided by a huge tax bill after working so hard all year is one of the worst feelings in the world.

Traditional employees can rely on their employers to withhold taxes and report their earnings to the IRS, but self-employed individuals must do these things themselves. 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 tax deadlines roll around. If you get blindsided by a tax bill of more than $10k to the IRS or state but can’t pay in full, call 1.888.4TAXREZ or use our contact form. We help people find tax relief.

Here are a few tips for making self-employment less taxing:

Set up a business bank account

The self-employed need 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 the tax deadline to add up your expenses, you could miss deductions that would have otherwise reduced the amount you owe. It is important to keep track of expenses when they are incurred to prevent this underreporting.

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. When you’re self-employed, tax software makes filing taxes easy, but that simplicity could cost you. Even if you are confident in your abilities, it never hurts to have your work reviewed by a CPA or enrolled agent. This can 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 terms. There is no doubt that being self-employed can be a taxing experience. This is why it is important to plan carefully from the start. The tips listed above can help you reduce your taxes, allowing you to keep more of the money you’ve worked hard for.

Do you owe back taxes?

Many taxpayers fall behind on their taxes for years on end after getting blindsided by a big tax bill every year. It’s okay if that’s you, we are here to help you stop worrying and start living.

There is a solution to every IRS problem!

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax
3 Steps to Tax Filing Success
 by TaxRezPro

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 left the world of traditional employment. As a member of the gig economy, you have a lot to look forward to, but tax season is probably not one of them. Tax deadlines are 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 are 3 steps to tax filing success.

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

The first of 3 steps to tax filing success; it’s always a good idea to start your tax planning early! 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 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.

Welcome to The Gig

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?

That were just 3 steps to tax filing success. 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.

There is a solution to every IRS problem!

Contact Us Today

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax
Should You DIY? 3 Times You Need to Hire a Tax Relief Professional
 by TaxRezPro

Should You DIY? 3 Times You Need a Tax Relief Professional

Dealing with the IRS takes a very specialized skill set that most tax preparers don’t possess. Make sure you have a tax resolution specialist on your side. Before you end up in that horror story, here are 3 times you need a tax relief professional like TaxRezPro.

In the world of money, there’s only one person with your best interests at heart – and that person is you. Making your own financial decisions and handling your own finances can give you peace of mind and prevent costly mistakes. In terms of finances, the DIY approach has plenty to offer but it does have limitations especially when it comes to the IRS.

It is not uncommon for clients to attempt to handle their taxes on their own. However, this can raise red flags with the IRS, resulting in audits or getting slapped with a tax bill they cannot afford. They might set up an installment agreement on their own, but oftentimes, the DIY approach just makes the penalties and interest keep stacking up, placing you in an endless loop of compounding interest, penalties, and your tax debt growing every month despite making monthly payments. Many of our clients started out by trying to do this on their own or with their current tax preparer and didn’t get the results they were hoping for.

So let’s take a look.

1. You just received a huge windfall

No matter how well you handle your finances, a major windfall can throw your plans into a loop. Whether you have won a lottery ticket or are the recipient of a major inheritance, seeking outside advice is a wise move.

If you choose the DIY approach and make a mistake, you could end up paying more in taxes than you should, but a high tax bill is not the only danger. Handling your windfall the wrong way could throw off your asset allocation, impact financial aid for your college-bound children and create additional problems down the road.

2. You have existing IRS tax problems

You cannot afford to go it alone when you have problems with the IRS. A single slipup could leave you liable for even more if you try to resolve tax issues on your own. Imagine you were in court without a lawyer representing you. Would you go before a judge without a lawyer? Most likely not. Here, it’s the same. Representing yourself before the IRS is generally not a good idea. Don’t do it. 

In the event that you receive a notice from the IRS, time is of the essence. However, you should not let the desire for fast action be at the expense of professional guidance and help. If you want to resolve your issues fairly without going broke, do yourself a favor and find the right tax resolution firm. Hiring an enrolled agent, CPA or an attorney that is trained in tax relief is the best way to preserve your rights, and you do not want to go it alone.

3. Protecting your assets

Whenever you owe taxes, the IRS is only interested in getting paid what they believe you owe.

You’ll have everything you have in your bank account seized. If you run a business, that means you won’t be able to pay your employees, pay your office rent or keep your lights on, ultimately putting you out of business. They’ll also garnish your paycheck leaving you about 10% to 25% of your net pay to live on. Good luck with that.

In addition, they can attach liens to your real estate, personal property, and financial assets. In other words, everything you have worked so hard for is at stake.

Hiring the right tax relief professional can help you avoid such extreme measures taken by the IRS. They’ll communicate with the IRS on your behalf and can often remove a lien or levy. If you have assets you can’t afford to lose, then hiring a tax relief pro is the only way to go.

Here’s the bottom line

Even if you are confident in your Do It Yourself (DIY) approach or feel your tax problem isn’t so serious, it never hurts to get a second opinion. If you are doing everything right, that tax resolution specialist’s advice will give you peace of mind. If there are deficiencies in your actions, the advice you get could stop you from making a devastating, and possibly irreversible, mistake. Plus, you may find out that you can settle your back tax liabilities for less than what you owe. Oftentimes, for a fraction of what’s owed!

Contact Us Today

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax / Tax help
 by TaxRezPro

Do You Owe Back Taxes? Why You Should Stop Panicking & Start Planning

Do you owe back taxes?

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 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, as 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.

What can you do?

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.

Don’t Panic, Contact Us Today

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!

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax / Tax help
 by TaxRezPro

Is It Bad To Settle With The IRS

Can you 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. It’s important to know who to trust and get educated on what your options are to resolve your tax problem.

As a Tax Resolution Firm ourselves, we encourage all readers facing a tax problem to call us today at 1.888.4TAXREZ or use our contact form 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.

Offer in Compromise

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.

Contact Us Today

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax
 by TaxRezPro

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 a link to their website to see how they collect, Topic No. 201 The Collection Process | Internal Revenue Service (irs.gov)

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.

Contact Us Today

If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

in Tax
 by TaxRezPro

Do You Owe Money to the IRS?


Possible Tax Resolution Strategies to Set Your Mind at Ease

Even for honest taxpayers, the IRS can be extremely frightening. Unlike most other government agencies, the IRS has unbridled power to attach your wages, freeze your bank account(s) and even confiscate your property, which is enough to send a chill up the spine of any taxpayer.

If you receive a letter from the IRS saying that you owe additional taxes, it is important not to panic. It may be a frightening situation, but there are things you can do to settle your tax debt and get back on the good side of the IRS.

Taxpayers do have options when resolving tax disputes and paying additional taxes due, and simply knowing what those options are can set your mind at ease.

As an expert Tax Resolution Firm, we encourage all readers facing a tax problem, whether it’s the feds or the state, to call us today 1.888.4TAXREZ for a free consultation.

Here are three strategies you can use to resolve your tax debt and get on with the rest of your life. Not all of these options will be right for everyone, but it is important to be an informed taxpayer.

Review the Amount Owed and Your Tax Return in Question

If the IRS says you owe money, you should not simply assume they are right. The tax agency does make mistakes (a lot), as do tax preparers and ordinary taxpayers.

Whether you filed your taxes on your own or hired someone else to do it for you, it is important to examine your return and compare what you find with what the IRS is claiming. It pays to seek professional help for this tax review, even if you originally filed your own taxes. A professional with IRS experience may be able to uncover errors and inconsistencies you would have missed on your own, and that could end up saving you money.

There is no guarantee this review will eliminate the extra taxes the IRS says you owe, but it never hurts to be sure. There have been many cases in which taxpayers who thought they owed money to the IRS ended up owing nothing – or even being due a refund from the IRS.

Set Up a Payment Plan

Getting a notice of additional tax due from the IRS is frightening, especially if you cannot afford to pay what the agency says you owe. Keep in mind, however, that you do not necessarily have to pay the bill all at once.

The IRS is often willing to set up payment plans with taxpayers, and those payment plans could make paying what you owe easier and less stressful. Once again, it is a good idea to seek professional help and guidance here – the IRS can drive a hard bargain, and you do not want to end up with a payment plan you cannot afford and wind up defaulting on it.

If you fall behind on the payment plan you agreed to, you could be subject to additional enforcement action, including the tax agency garnering your paycheck or seizing funds from your bank accounts. Getting the help of a tax resolution professional upfront can help you avoid these serious consequences.

Explore an Offer in Compromise Settlement

If you are genuinely unable to pay the money the IRS claims you owe, you may be able to work out a (much) smaller lump sum payment. The IRS may not advertise this program, but they are often willing to work with taxpayers by accepting lesser amounts, especially if those taxpayers have little in the way of equity in assets and a limited income. Sometimes these settlements can be for a fraction of what’s owed if you qualify. We offer a free no-obligation consultation to find out if you qualify.

If you plan to explore this last option, it is critical that you work with a tax resolution expert. An offer in compromise can be extremely complicated, with legalese and language that can be difficult to understand. You do not want to make a misstep here, and you want to ensure that you only pay the lowest amount allowed by law in settling your tax bill.

Few things are as frightening as getting a letter from the IRS. That official-looking letterhead is bad enough, but what the letter says is even worse. If you receive such a letter, you need to take positive steps right away. Ignoring the situation will make it worse, and it won’t go away. The sooner you start exploring your tax resolution options, the better off you will be.

If you want the help of an expert tax resolution professional who knows how to navigate the IRS maze, CALL US TODAY at 1.888.4TAXREZ (1.888.482.9739), and we’ll schedule a no-obligation confidential consultation to explain all your options to permanently resolve your tax problem.

Your Tax Resolution Professionals

Our experienced and certified tax experts can assist with a variety of tax-related issues, including IRS payment plans, collection appeals, and more. We also offer representation before the IRS, so you can rest assured that your case is in good hands. If you’re facing a tax problem, don’t hesitate to reach out to our team at TaxRezPro. We are here to help provide you with a tax resolution and get back on track. Call 1.888.4TAXREZ (1.888.482.9739) today.

in Tax help
 by TaxRezPro

Small Business Owner: Owe Payroll Taxes? Here’s What To Do!

Unpaid payroll taxes are a serious matter to the IRS and are some of the worst kinds of back taxes you can owe. If you’re a small business owner with a payroll tax problem, read on to learn what you can do to avoid the IRS crippling your business or worse, shutting your business down completely.

Already in payroll tax trouble? Contact us to schedule a free, no-obligation consultation, and let’s get your payroll tax issue resolved.

Why Small Business Owners Get into Payroll Tax Trouble in The First Place

It’s hard being a small business owner today, trying to pay your employees their paychecks every week, and pay the IRS all those payroll taxes!

When money is short, you pay the employees first. It’s a natural thing to do—you need to take care of your employees, even if you have to skip paying yourself! Besides, if you don’t pay them, they may quit, and the cycle of hiring has to start all over again.

It can seem easy to “just pay the 941 taxes next pay period” and give yourself a little cash flow cushion but skipping paying your employee payroll tax deposits is never a good idea.

What happens too often is that 1 pay period turns into 2, 3, and 4, and eventually, you’re so deep in payroll tax debt that the only thing you want to do is completely ignore your problem.

The IRS does not care about your financial problems. They just want you to pay your payroll taxes!

The IRS doesn’t care if you can’t pay your employees. They don’t care if they put your employees out on the street. They don’t care if you can’t collect your receivables. They don’t care if one of your largest and best customers just went “belly-up”. All they care about is you have money that belongs to them, and they will do whatever they have to, even put you out of business, to collect it. They don’t care who you are, or even what business you are in.

Penalties are The Kiss of Death When It Comes to Back Payroll Taxes

Penalties for failing to file and pay your payroll taxes are the “kiss of death” for any small business owner. They tack on penalties totaling 33% in just the first 16 days! And it doesn’t stop there. The IRS adds interest on top of the penalties. It is not uncommon that a payroll tax liability doubles in short order. And if you don’t pay them or work something out, they will shut you down! It’s much less work for the Revenue Officer to simply close you down than work out an arrangement with you.

The IRS Will Collect, or They Will Shut You Down

It’s as simple as that. The IRS is the most brutal collection agency on the planet. They have more authority than the President of the United States! And they have all the ways and means to do whatever it takes to collect what’s owed to them. You didn’t wake up in the morning, go to work, and say to yourself, I’m not paying my payroll taxes because you didn’t want to. The money simply wasn’t there. It’s not your fault. One week you’re short of cash. It was a slow week, a customer’s check bounced, or any number of legitimate reasons that just prevent you from paying the IRS. You’re a good person. You figure you will make it up the next week. But then next week comes and goes, and you realize you still don’t have enough money to make that payroll tax deposit. And then the entire situation starts “snow-balling” into an avalanche.

Should You Call the IRS To Get Your Payroll Issue Fixed?

If you were to call the IRS and were able to get through after waiting on “hold” for an hour or two and try to explain your situation—you might as well have a conversation with the wall—because they don’t care. The IRS representative that you’re talking to is more than likely overworked, under trained, and under paid. Do you think they ever had to make a payroll in their life? Do you think they know what it’s like running a small business? Do you really think they will have any sympathy for you?

Not only is the answer “NO” but they can also dictate the fate of your case. What they will try to get, while you’re on the phone, is all your personal and financial information. They want to know where you bank; they’ll want to know all about your customers who owe you money, they’ll want to know about the value of all your assets, like your home, cars, motorcycles, etc. Why? Because now they have all the information, they need to levy your bank accounts, take your receivables and seize your property.

What Should You Do?

Now that you know you shouldn’t be talking to the IRS because they are not going to help you, you might be wondering what you should do? Where should you turn for help? The smartest thing you can do to protect your business and family is to have someone represent you—someone who deals with the IRS for a living. You need to get help—but not just from anyone—you need help from someone who is an experienced competent professional, and deals with the IRS every day, helping small business owners keep their businesses and settle IRS payroll tax problems.

If you were charged with a serious misdemeanor or felony, would you go to court without a lawyer? You don’t want to represent yourself before the IRS either. You need professional, expert representation. Contact us today to get expert tax resolution help. We’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

Once you decide to retain us, we step into your shoes and protect you from the IRS’s abusive tactics. We take over all communications from the IRS on your behalf. You don’t have to speak with the IRS anymore. We do. Not only that—they are not allowed to talk to you once you’ve signed our Power of Attorney! Once they realize you have someone on your side protecting you who knows their tricks as well as they do, they have to step back and follow the law. We can protect you from the IRS harassing you, calling you, showing up at your front door, and levying your bank accounts and other assets!

Contact us now and let’s get your payroll tax issue resolved!

in Tax