How to Resolve Common Tax Problems

Tax issues come in a variety of dimensions and shapes. You could be facing issues with the federal tax system as well as state taxes or even sales taxes. Because the IRS continues to enhance its enforcement strategies, tax issues can lead to serious problems and penalties.

If you've received an email from the IRS or a state revenue agency stating that your business is going to be subject to audit, the first step is to seek expert assistance.

If you've been threatened with garnishing wages, you'll be able to get a solution in place before it's too far 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 in the middle of an audit or are aware that you have to pay penalties, we suggest following these steps:

• Make sure you pay the exact amount. While it might seem like the best option to pay exactly the amount stated on your tax form, we suggest putting off paying for a while until you have spoken to an accountant who is a professional. Tax notices can show inaccurate figures.

• Make sure you are paying the correct amount. If you're able to pay the exact amount due in taxes, it is recommended to do so at the earliest time possible. Talk to the revenue service to determine whether they are able to reduce the penalty.

• Set up an installment plan. Many people can't afford to pay the full amount in one go. Instead, you could establish an installment plan using the revenue service to pay the amount over time. Talk to a tax expert advisor to make your monthly installments lower.

• Offer in Compromise, also called an OIC, is typically only accepted when the revenue service finds that your offer is comparable to or more than the amount they would reasonably expect you to pay. This is referred to as the "RCP" (or Reasonable Collection Possibilities). They will look at your finances by using a 433-A or 433-B in order to determine your RCP.

Based on your current situation with regard to finances, it might be beneficial to do more than the first step. If you're able to pay the entire amount in full, go ahead. In the event that you are not, we would recommend creating the OIC and then establishing an installment plan that allows you to be paid off over time. Before you take any action, however, make sure to consult an expert.

Customized IRS Audit & Installment Plan Negotiations

We'd love to meet and discuss how you're taxed and ways you can safeguard your income as much as possible - legally, responsibly, and ethically.

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