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Common Problems & Solutions to Know During Tax Season

Wednesday, February 19, 2020

To be in the Internal Revenue Service's (IRS) good book, you need to be accurate, detailed, meticulous, transparent and timely about your tax preparation. Some Certified Public Accountants (CPAs) can be excellent resources for routine tax preparation when you are able to file your return on time and have a traditional return to submit.

However, there are many instances in which CPAs may not be best equipped to deal with your tax problems. Like situations where you are behind on filing your tax returns, you are trying to sort out back taxes, or if the IRS has made contact with you to collect funds, you will definitely need to consider hiring a tax firm that has experience working with the IRS to solve tax problems if you really want to get yourself out of tax troubles.

In these very common and sometimes complex cases, we are capable to step in to help you solve those and restoring your peace of mind.

Once you take the first step and reach out to our experienced tax specialists, we will start by reviewing all of your prior tax returns, any supporting documentation, particularly if you are behind on filing tax returns. We also review any written documentation that you have received from the IRS.

We will pay quality attention to all aspects of your finances related to your taxes so that we can make the most accurate assessment and recommendation for your unique tax situation. In many cases, we have determined that our clients owe much less to the IRS than they have estimated. And, while it is not actually illegal to owe the federal government money, it is illegal not to file a tax return at all.

There is a very fine line between tax avoidance and tax evasion, and not filing your tax returns puts you in the wrong position to be able to successfully fight your IRS tax problem(s). The sooner you reach out to us, the better it will be for you and the more successful we can be fighting for you.

Below we have included a list of very common problems or issues that you will want to be familiar with as you decide how to prepare your taxes or how you can take steps to resolve problems with your current tax situation.

Audit: A careful evaluation process the IRS uses to determine whether you, the taxpayer, have paid the correct amount of income taxes. It is always advisable for you to internally audit before an. IRS auditor visits. This way, you can detect errors and omissions, and fix them before time.

Offer in Compromise: An IRS program that allows you to settle your tax debt for less than the full amount you owe. An offer in compromise is not a means to escape paying your tax liability. It is an option to make it easy for you if paying the tax will throw you into hardship or it has been proven that you can't pay your tax liability.

There are facts and circumstances surrounding the approval of your offer in compromise:

  • Your income
  • Your ability to pay up the tax liability
  • Your asset equity
  • Expenditure

First Time Penalty Abatement: A tax relief strategy in which all or a portion of your penalties and late fees are forgiven. The IRS does not just forgive tax penalties, but can forgive you when you fail to file, pay or deposit penalties because you've been keeping it clean with them for years. It's some sort of grace for the following:

  • Not having tax penalties for three tax years before being penalized.
  • If you have not filed a recent return.
  • Filing every recent return required by you.
  • You have a plan to pay or you've paid any tax due.

Delinquent Tax Returns: Unpaid taxes that often result in interest and penalties assessed by the IRS that will ultimately increase the amount of tax due. You are required by the IRS to file delinquent tax returns for the past six years. Failure to file before the due date attracts a fine of 5% per month penalty.

Substitute For Return: If the IRS does not receive a tax return from you, they can file a substitute tax return on your behalf with past information that they already have on file that may not be accurate. This often results in bills from the IRS that indicate that you owe much more than you might with a current tax return submitted by you.

Once you submit your tax return, the IRS is often willing to adjust this substitute return. It is still important you file your returns despite the IRS doing that for you if you want to enjoy deductions and exemptions you are entitled to.

Levy on Wages: As part of the IRS collection process, the IRS can legally apprehend your assets to pay for a tax debt, including the garnishing of wages. Before the IRS imposes a levy on your wages, the IRS will send a formal notice to you to inform you of the levy and to your employer, demanding that your employer make the deduction. The levy on wages will stop when you must have either paid up the tax due, devised another means to settle your tax debts or if there's a levy release.

Federal Tax Lien: Another method of the tax collection process is that the IRS can also place a tax lien on your property. The tax lien is a way the IRS ensures that it will get some or all of its money by preventing you from selling, or otherwise disposing of, the property without first paying the IRS its share. The tax lien remains on the property until the taxes have been paid in full or you have followed through on a negotiated settlement with the IRS.

 

Why You Should Hire Us

  • Expertise: We specialize in supporting clients with all of the tax-related issues listed above. We can quickly tell you if you might qualify for one of the IRS tax relief programs. Call us today for a no-obligation and risk-free consultation. Our strong team of experienced tax professionals is ever ready and willing to help you.
  • Experience: We are a full-service tax resolution firm with over 30 years of experience helping thousands of clients all over the country resolve their complicated and difficult IRS tax problems. We can serve as a mediator between you and the IRS and provide a buffer for many difficult communications. Alliance Tax Solutions also provides strong customer service to every one of our clients and will treat you with the utmost respect and dignity.
  • Affordability: We also offer extremely competitive pricing and will work with you on workable payment options. Our payment options are not rigid.
  • Timeliness: Of course, the easiest way to prevent problems with the IRS is to prepare your taxes accurately and on time. This can be difficult, time-consuming and complicated, but is an excellent and attainable goal to strive for. If you are hoping to resolve some prior tax problems, wipe the slate clean so that moving forward you can manage tax preparation yourself, call Alliance tax Solutions today.
  • We do it with ease: Our trained tax professionals can help get you to that point quickly and easy, and relieve you of those heavy tax burdens. You will have peace of mind knowing that your taxes are finally in good standing and additional tax preparation in the future will be a breeze! Do not delay, we are here for you! Call us now at (404) 592-1227 so that we can get started working for you or visit us at www.alliancetaxsolutions.com to request a free consultation. 

 

 

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Alliance Tax Solutions, LLC, Accountant, Atlanta, GA