How to Resolve Common Tax Problems

Tax issues come in a variety of forms and sizes. You could be facing issues with your state taxes, your federal taxes, or even sales taxes. Since the IRS continues to enhance its tax enforcement methods, tax issues can lead to serious problems and penalties.

If you've received a letter from the IRS or a state revenue agency stating that your company will be audited, the first step is to seek expert assistance.

If you've been threatened with garnishing wages, you'll be able to come up with a solution before it's too late.

Common Solutions for Your Tax Problems

While tax issues may appear to be an end-of-the-world scenario, they do not necessarily have to be as difficult as you imagine. If you're facing an audit, or you know you have to pay penalties follow these steps:

Make sure you pay the exact amount: While it might seem like the most efficient option to simply pay exactly the amount stated on your tax form; however, we suggest holding off until the moment until you speak to an accountant who is a professional. Tax notices can show inaccurate figures.

• Make sure you pay the correct amount: If you're able to pay the correct amount of taxes you owe, it is recommended to do so at the earliest time possible. Talk to the revenue service to determine how they can reduce the penalty.

• Set up and plan for installments: Many people can't afford to pay the full amount in one go. Instead, you could establish an installment plan by utilizing the revenue service. This allows you to spread the cost over time. Consult a tax professional advisor to make your monthly payment decreased.

• Offer in compromise, also called an OIC, an Offer in Compromise, can only be accepted by the revenue service if it finds that your offer is comparable to or greater than the amount they would reasonably expect you to pay. This is referred to as "the RCP," which stands for Reasonable Collection Potential. They will look at your finances by using a 433-A or 433-B to determine your RCP.

• Based on your current financial situation, it could be beneficial to do more than the first step. If you are able to pay in full, then do it. However, if not, you can recommend creating the OIC and then establishing an installment plan that allows you to be paid off over time. Before you take any action, do not forget to talk to an expert.

Customized IRS Audit & Installment Plan Negotiations

We'd love to meet and discuss the tax implications of your situation as well as ways you can ensure your income as much as possible - legally, responsibly, and ethically.

If you'd like assistance in navigating the confusing tax issues post-coronavirus, do not hesitate to reach us as soon as you can.