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How to Amend a Tax Return for a Prior Year

February 15, 2021

Tax returns can often be filed with incomplete or incorrect information, leading you to more tax trouble than you bargained for. If you filed early, you might have overlooked income from a temporary job or a side gig, only to get a 1099 or late W2 for the income earned.

Other filers may eventually realize that they were entitled to an extra deduction or exemption. The Internal Revenue Service routinely processes a significant number of amended returns each year and provides a specific form for changing the status of an earlier tax return.

Individual income tax returns filed with the IRS can be amended up to three years after the due date of the original return by filing IRS Form 1040X. However, we strongly suggest consulting a tax resolution professional to help with your amended return. They can often file multiple years of unfiled tax returns, help you settle for a fraction of what you owe, and at the very least save you a headache.

Note: If you know you’ll have outstanding tax debt and owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. I help people find tax relief and sometimes settle their tax debt for a fraction of what’s owed Feel free to find me on the web at: Ron Friedman CPA Tax Relief Pro.

How Amended Tax Returns Work

Returns containing simple math mistakes are usually corrected automatically and do not require an amended return. Filing an amended return should be considered after the filer realizes the need for a change in filing status, income, allowable deductions or credits. The statute of limitations generally allows three years for each filer to claim any tax benefit not included on a prior return.

An increase in reported income is likely to result in additional tax due, but an additional deduction or allowable tax credit could result in a refund.

Unreported income is a common oversight and it’s better to report your income than it is for the IRS to come after you and add penalties and interest to your tax debt.

Prior to tax year 2019, Form 1040X is not eligible for electronic filing and must be mailed in, this is also why we recommend hiring a professional to do this for you. A separate Form 1040X is necessary for each year being amended, and each must be mailed in its own envelope to the address provided in the instructions.

The amended return essentially adds the corrections to the original return. There is a block of space on the form to explain all changes. The explanation for each line change should include the line number followed by a clear reason for the change. Lines that entail no change need no explanation. A copy of the original return itself should not be attached, but any added IRS forms must be included to support the changes. Any other supporting documents necessary to substantiate the amendment will also need to be attached.

It can take several weeks for the IRS to process an amended return. An amendment to the federal return might also require a change to the state tax return of the filer, especially if an increase in income is to be reported.

OWE BACK TAXES?

If you’re going to owe money to the IRS after filing your return, it’s important to note that only experienced firms like ours are able to handle tax debt cases since negotiating with the IRS requires specialized skills that often fall outside of the scope of most conventional accounting, tax, and tax law firms.

My firm specializes in tax problem resolution. As a CPA, and a Federally Authorized Tax Practitioner, I can represent you before the IRS. I serve clients virtually so don’t hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to my firm and we’ll schedule a no-obligation confidential case consultation to explain your options to permanently resolve your tax problem. Feel free to find us on the web at: Ron Friedman CPA Tax Relief Pro.

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February 15, 2021Categories: back taxes, filing taxes, tax notices, Tax Resolution Strategies, taxes

Do You Need A Tax Attorney if You Owe Back Taxes?

December 24, 2020 Do You Need A Tax Attorney if You Owe Back Taxes?

Just because you owe back taxes doesn’t mean you need a tax attorney. The same is true for hiring an accountant to resolve your tax debt. The professional to choose when looking to resolve your tax debt issues should  primarily focus in tax resolution.

If you owe the IRS back taxes, it’s best to have the right tax relief firm representing you for the best possible result. Don’t try to face the most brutal collection agency on the planet alone. You’ll be sorry you did.

Note: If you already have a tax problem and owe more than $15k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed.

What Should I Do?

Settling an IRS tax debt can be a very stressful task. Finding the right help can be just as daunting. Tax resolution is a niche area of tax practice. The right professional who is engaged to resolve your income tax debt should have specialized knowledge and training in tax collection rules and regulations, as well as an appreciation of those charged to collect them. There is both science and an art to resolving income tax debt matters. Consumers should be informed of what to look for when seeking help.

Tax resolution firms spend a lot of money getting your attention, claiming they can drastically reduce or even eliminate your tax debt by applying for legitimate IRS hardship programs. The truth is, most people don’t qualify for these programs. As a result, these companies are unable to resolve the tax debtor’s problem and, very often don’t even correctly complete the required paperwork for the programs the IRS offers. It leaves taxpayers still in tax debt and, to add insult to injury, they don’t provide refunds for work not completed.

The three professions that are allowed to represent taxpayers before the IRS are CPA’s, licensed attorneys and Enrolled Agents. Each designation carries with it its own licensing/certification requirements. However, not all CPA’s, licensed attorneys and/or Enrolled Agents are created equally. You wouldn’t hire a trust and estate attorney to defend you in criminal court, similarly you shouldn’t hire any CPA, attorney and/or Enrolled Agent to solve your income tax debts.

Obtaining certification as a tax resolution specialist requires the applicant to meet certain educational, experience and character requirements. They must also pass a very rigorous examination, demonstrate their expertise in tax resolution and adhere to a Code of Professional Ethics.

OWE BACK TAXES?

It’s important to note that only experienced firms like ours are able to handle tax debt cases since negotiating with the IRS requires specialized skills that often fall outside of the scope of most conventional firms.

Our firm specializes in tax problem resolution. We serve clients virtually so don’t hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential tax consultation to explain your options to permanently resolve your tax problem.

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December 24, 2020Categories: Accountants, attorneys, back taxes, Enrolled Agent, Tax Resolution Strategies, taxes

Avoid These 5 Common Tax Filing Mistakes That Can Get You In Tax Trouble

October 2, 2020

Whether you file the simple 1040EZ or a complex 1040 and a raft of schedules, making a mistake on your tax form could lead to big tax trouble. Something as simple as a math error or unsigned form could invite extra attention from the IRS.

The tax agency sees those mistakes every year, and IRS representatives warn taxpayers to be careful when filling out their forms. Even if you think you have everything filled out perfectly, it never hurts to double-check and look for these common tax day errors.

 

#1 – Assuming Your Tax Pro Prepared Your Taxes Properly

Blindly trusting your accountant or tax preparer to file your taxes correctly can be costly. Of course you want to assume they do a great job, and most tax professionals do, but letting them file without your thorough review is a mistake.

We resolve back tax problems for people, and often what gets people in trouble is a simple mistake; like forgetting to report income, missing deductions, or taking too many deductions.

These are sometimes honest mistakes that if not caught early, can trigger red flags and have  the IRS sending you letters of balances due.

No one knows your financial situation better than you do so it’s important you double check your return so you’re not blindsided with an unwanted surprise.

 

#2 – Waiting Until the Last Minute

Filing taxes is stressful enough. You do not need to make things worse by waiting until midnight on April 15 to get your return in the mail. Give yourself plenty of time to gather all the necessary documents and complete your return.

Keep in mind that unexpected problems could interfere with your last-minute tax filing plans. Getting your taxes done early is the only way to protect yourself from unforeseen circumstances that can delay your tax filing.

 

#3 – Failing to File on Time

If you cannot file your return on time, you can ask for an extension by filling out a single form. Even if your documents are in disarray, there is no excuse for not filing on time. Filing an extension gives you six more months to get everything in order and complete your return.

Keep in mind that you will still need to estimate the tax you owe and make your payment, even if you file an extension. Filing an extension extends the amount of time you have to get your return to the IRS, but it does not provide a reprieve from your tax debt. If you wait to make your tax payment, you will get hit with penalties and interest.

 

#4 – Not Making a Backup or Keeping Good Records

Making backup copies of your tax returns, income documents and schedules is an essential part of tax planning and preparation. Set up a folder or file box and use it to store your tax documents as they come in, and then scan each one before you put it away.

Once you have completed your return, be sure to make copies of every document, including your W-2 form and tax schedules, before sending the return to the IRS. If you file electronically, be sure to save a PDF copy of your return before completing the final step. Save all of those electronic tax documents on your computer or cloud storage device. Ordering a lost copy of a past year’s return from the IRS is time-consuming and expensive. You can save time and money by making your own backup copies. If the IRS audits you or requests more information from you, all your records will be extremely helpful in the process.

 

#5 – Ignoring Letters From The IRS After You File Your Taxes.

Sometimes the IRS will send follow up correspondence, especially if you owe money to the IRS. It can be easy to ignore the first few letters. Even if you have the intention of paying your taxes soon you should still take action and either get on an installment agreement or reach out to a tax relief firm if your financial situation requires it.

OWE BACK TAXES?

Our firm specializes in tax problem resolution. We serve clients virtually so don’t hesitate to reach out.  If you want an expert tax resolution specialist 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. https://www.914tax.com/contact-us/

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October 2, 2020Categories: back taxes, filing taxes, IRS News, Tax Resolution Strategies

Considering Bankruptcy to Get Rid Of Your Back Taxes? 3 Alternatives to Explore Before You File

August 7, 2020

If you are drowning in debt and working harder and harder to make ends meet, you may think a bankruptcy filing is the only way out, but that is not necessarily the case. Filing for bankruptcy is one solution, but it is a drastic step that should only be taken as a last resort.

This is especially true if you owe back taxes to the IRS or state. Depending on what type of taxes you owe, you might not be able to wipe out your back taxes in bankruptcy proceedings.

It’s important to weigh all your options and get a clear picture of your financial situation, so in this article, we share with you 3 smart steps to take before declaring bankruptcy.

Depending on how much you owe, who your creditors are, and how the rest of your financial life looks, you may be able to dig yourself out of the hole and take back control without having to declare bankruptcy. Here are three smart alternatives to consider before calling a bankruptcy attorney.

3 Alternatives to Explore Before You File

  1. Contact A Tax Relief Firm

Most bankruptcy attorneys aren’t familiar with the complex tax laws so they won’t accurately be able to assess your tax situation.

A tax relief firm like ours can help you assess your back tax situation and often help you settle your back tax debt with the IRS. If you owe a substantial amount of back taxes, this may be a good way to reduce your overall debt burden. This can also be a good first step to getting back on track with your finances.

  1. Request a Lower Interest Rate On Other Debts

When you are paying 18% or more in interest, it can be hard to keep up with the charges, let alone make any headway on the outstanding balance. Credit card interest rates are among the highest around, and those outrageous rates have trapped many consumers in a spiral of ever increasing debt.

How different would your finances look if your interest rate was cut in half? Would you finally be able to get ahead of the interest charges and start paying down your balance? If so, it is time to get your credit card issuer on the line.

Even if you do not think your credit card issuer will be receptive, it never hurts to ask. And when the credit card company finds out that you are thinking about filing bankruptcy, they may be more willing to negotiate than you think.

For tax debt, the IRS can sometimes remove penalties and interest from your tax debt, so it’s important to reach out to our firm to see what your options may be.

  1. Refinance Your Debt

Even if your credit card issuers and lenders are not willing to budge on the interest rates, you could still save money and avoid bankruptcy. Refinancing your existing debt through a home equity line of credit, a personal loan or other means could lower your interest rate substantially and slash your monthly payments.

If you do decide on this strategy, it pays to shop around. The more you can lower your interest rate, the more money you can save – and the faster you will be able to pay off your debts.

But it’s incredibly hard to refinance your debts if you have an IRS tax lien or wage levy. Our firm can get these released and help you get on financial track.

A bankruptcy filing can provide a fresh start for those in dire financial circumstances, helping them recover and rebuild their shattered monetary lives.

Even so, bankruptcy is not the only way out, and it is important for those considering this solution to research the alternatives first. The three bankruptcy alternatives listed above can also give you the fresh start you need, without the stigma or long-lasting impacts of a bankruptcy filing.

IMPORTANT: We highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other relief programs or get your penalties and interest forgiven. Reach out to our firm today for a consultation.

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August 7, 2020Categories: back taxes, Bankruptcy, filing taxes, tax notices

Bankruptcy FAQ for Individuals

Filing for bankruptcy is a difficult and draining process. People often feel ashamed, scared, or confused. If you find yourself with no other options, bankruptcy can be a good way to clear out old debts, change financial patterns, and most importantly get a fresh start. Here is everything you need to know about filing for bankruptcy.

Note: Depending on what type of taxes you owe, you might not be able to wipe out your back taxes in bankruptcy proceedings. Our firm specializes in tax resolution and back tax debt settlements with the IRS. So if you’re considering bankruptcy in part because of your back tax burdens, reach out to us today for more information on how you can get tax relief.

Who Should File for Bankruptcy?

If you owe money to a creditor and cannot repay it, you can file for bankruptcy. Businesses and individuals are eligible; however there are caveats. If you have filed for bankruptcy once before, there is a waiting period before you may file again. After filing for Chapter 7 bankruptcy, you cannot claim bankruptcy again for eight years. After filing for Chapter 13 bankruptcy, you must delay a second claim for at least two years.

What Types of Debt Can I Discharge Through Bankruptcy?

You can discharge most types of debt through bankruptcy, including medical debt, credit card debt, payday loans, and mortgage debt.

Certain types of debt cannot be discharged through bankruptcy, meaning that you will still need to repay these debts even if everything else is forgiven. Debts that cannot be wiped out in bankruptcy include spousal support, child support, student loans, and back taxes in most cases.

Any debt you take on after you’ve filed for bankruptcy is ineligible to be discharged through the filing, since you did not have the debt when you asked for debt relief.

Why is Filing Bankruptcy Helpful?

When you can’t keep up with the bills, you’re under a high level of stress. Bankruptcy is never a first option for people; many have tried things like getting extra jobs, selling unwanted possessions, or asking family members for loans before arriving at bankruptcy as their best option for debt relief.

By wiping out debts, bankruptcy reduces stress immediately. Collectors are not allowed to come after individuals who are going through bankruptcy, so threatening phone calls and letters will end immediately.

A Chapter 13 bankruptcy can promote good financial habits, because in this form of bankruptcy, some amount of debt is repaid under a plan. By helping to increase financial literacy and instilling good financial habits, this partial repayment can keep people in the black once debts are discharged.

The biggest downside to filing for bankruptcy is that it impacts your credit, so you may find it difficult to take out loans for up to ten years after the bankruptcy. Your credit score also impacts things like the interest rate offered on loans and your ability to pass a tenant screening, so there are other ramifications to consider.

If you’re not sure whether a certain debt will be forgiven or which type of bankruptcy is right for you, there are resources to help you explore your options, such as credit counselors. If you are thinking of filing for bankruptcy, it’s helpful to get a counselor’s opinion on your specific circumstances and what to expect after filing.

If you have back tax debt, we highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other IRS relief programs or get your penalties reduced or removed. Reach out to our firm today for a consultation.

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August 7, 2020Categories: back taxes, filing taxes, taxes

Work from Home Tax Forms: How to Store Them, How to File Them and How to Reduce Your Liability

Working from home can be a dream come true, especially if you also work for yourself. Opportunities for freelancers, gig workers and other self-employed men and women have exploded in recent years, giving people the freedom they crave without sacrificing the income they need. This is far more evident with the current COVID situation where millions of Americans are now commuting from their bedroom to the dining room table for a Zoom call.

That freedom and flexibility can be intoxicating, but there is an unwelcome hangover as well. Tax issues can make working from home less attractive, and more expensive, leaving many gig workers, new freelancers, and small business owners frustrated. But if you plan carefully and know what to do, you can reduce the tax headache and enjoy the perks of working at home. Here are some key things to know before the tax man comes calling.

But before we jump into tax strategies, it’s important to note that the IRS is increasing enforcement in the coming months and even years after this pandemic. More small businesses and independent contractors are going to find themselves getting letters from the IRS requesting for more information or stating they owe money to the IRS. 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.

So, lets jump into some best practices for keeping your tax records clean in case the IRS comes knocking on your door.

Gather Contact Information from Your Clients

Whether you are preparing sales brochures for local businesses, designing websites for new startups or putting together dozens of individual side hustles, it is important to have contact information for every client.

The typical freelancer may have dozens of clients in a single year, and being able to contact them is an essential part of doing business. So go through your email lists, sort out your invoices and create a database of addresses and telephone numbers. Hopefully you will receive all your documents on time, but if not, that contact information will help you track down the missing paperwork.

Store Electronic and Paper Copies

The old saying that it is better to have it and not need it than need it and not have it is doubly true when you are self-employed. For gig workers, freelancers and other self-employed individuals, the loss of a single tax form could delay filing for months and even trigger an audit by the IRS.

That is why it is so important to build redundancy into your document storage. That means scanning each 1099 form as it is received, storing it on your hard drive, cloud account and offline storage device. It also means making paper copies of those critical documents and storing them in a safe place. These tax forms will be important when the tax filing deadline rolls around, so make sure you have them when you need them.

Keep Your Own Ledger

In a perfect world, every freelancer and at-home worker would receive all the tax forms they need, but that perfect world is the exception and not the norm. If you want to be ready for tax time and avoid unwanted entanglements with the IRS, you need to keep your own ledger.

Having your own records to back up your earnings estimates will help you in many ways, from qualifying for lower cost health insurance to getting a jump start on your tax return. It may be a little extra work, but keeping your own ledger will pay off in the long run.

Check Off Each Form As It Is Received

Now that you have your ledger in hand (or on your computer), you can cross reference your records and check off each 1099 form as it is received. When you have crossed the last form off your list, you can start filing your taxes and get the refund you deserve.

Be sure to scan each form as you receive it and make several backup copies. Having this documentation on hand will make your life easier should the IRS question part of your return or request additional information about the income you are claiming.

Reduce Your Tax Liability with a Solo 401(k) or SEP-IRA

Many new freelancers and gig workers are surprised at the high taxes they are required to pay, and the self-employment tax can be a particularly devastating blow. This extra tax is assessed to self-employed individuals, and it can have a big impact on members of the gig economy.

You may not be able to eliminate the self-employment tax, but there are steps you can take to keep your tax liability to a minimum. Retirement plans for the self-employed are among the most generous around, and opening a solo 401(k) or SEP-IRA could allow you to shelter tens of thousands of dollars in income.

These self-employed retirement plans do require some setup and a fair amount of paperwork, but once in place they can be used year after year to reduce your tax liability, so you can keep more money in your pocket and send less to the IRS.

Being self-employed and working from home can be wonderful, but it is important to be prepared for the realities. One of those unpleasant realities is taxes, and keeping track of your work at home tax forms will be critical as you make the transition. The tips listed above can help you keep proper records, stay on the right side of the IRS and even reduce your tax liability.

OWE BACK TAXES?

Our firm specializes in tax resolution. We serve clients virtually so don’t hesitate to reach out.  If you want an expert tax resolution specialist 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.

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August 7, 2020Categories: back taxes, filing taxes, Tax Resolution Strategies

How to Handle Your Taxes During an Economic Crisis

June 21, 2020

Whether it is a global pandemic shutting the economy down for months on end, a stock market crash that leaves formerly giddy investors frightened and nervous or a housing crisis that makes real estate a risky bet, living through tough economic times is never easy. Even so, how you handle yourself and your money during … Read More…

Whether it is a global pandemic shutting the economy down for months on end, a stock market crash that leaves formerly giddy investors frightened and nervous or a housing crisis that makes real estate a risky bet, living through tough economic times is never easy.

Even so, how you handle yourself and your money during the crisis could make all the difference in the world, and if you do it right, you could emerge stronger, wiser and richer on the other side.

Doing TaxesHandling taxes can be especially difficult during times of crisis. With your income uncertain, it can be hard to predict how much you might owe the IRS or how you can make those payments. And if you are self-employed or a gig worker, this economic uncertainty can be even greater.

So what can you do about your taxes when the economy takes a downturn? Here are some tips to make tax time less taxing when crisis strikes.

Research Filing Extensions and Be Aware of New Deadlines

When economic turmoil strikes, tax filing deadlines may be extended or otherwise relaxed, so do your homework and see how much time you really have. If you are struggling to make your tax payment, you may have some breathing room after all.

In the wake of the COVID-19 pandemic, the IRS extended the normal tax filing deadline from April 15 to July 15, and many state and local governments followed suit. The same may happen in future crises, and it never hurts to find out for sure.

File Promptly if You Are Expecting a Refund

Getting extra time to file can be a welcome relief if you owe money to the IRS, but if the tax agency owes you, it makes sense to file as quickly as possible. The processing of tax refunds is often disrupted during a crisis, with short staffing and different procedures suddenly in place. The sooner you file, the sooner you will have your tax refund money, and that cash could make a world of difference to your financial situation.

How you handle that tax refund is important as well, so think about what you will be doing with the money while you are waiting for it to arrive. If you have the extra cash to do so, contributing to an IRA or other tax shelter could reduce the amount you owe going forward, giving you even more money to work with in the years to come.

File Promptly if You Are NOT Expecting a Refund or Might Owe Back Taxes

The IRS is starting to enforce collections again, but they’re also not oblivious to the financial crisis we’re in. With almost 40 million Americans unemployed we now have the highest unemployment rate since the Great Depression.

The outlook is still uncertain and the IRS knows Americans need to get back to work and buying things to stimulate the economy. It’s tougher to do that with a huge tax bill weighing you down.

So right now, the IRS will likely consider settlements and more favorable terms to taxpayers in trouble, especially if their income drastically decreased due to COVID-19. So it’s important to file your taxes and be current in order to explore tax relief options.

IMPORTANT: We highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS, and resolving your IRS and state tax problems through our firm can save you money and time in the long run. You might also be eligible for other relief programs or get your penalties and interest forgiven. Reach out to our firm today for a consultation https://taxreliefprowestchester.com/contact/.

Are Your Investments Down? Use It To Reduce The Amount You Owe

It is easy to feel depressed when the stock market is tumbling and reaching new lows every day, but there could be a silver lining to that financial cloud. Engaging in strategic tax loss harvesting now could reduce your tax bill substantially when filing season rolls around. Tax-loss harvesting is when you sell investments at a loss in order to reduce your tax liability.

If you have investments that have not worked out like you hoped, selling them now and locking in the loss can be a great way to offset capital gains and lower your taxable income. This strategy is not the right choice for everyone, but it can be effective in certain circumstances.

Whether the world is in the midst of a global pandemic, the stock market is in free fall or real estate is suddenly on sale, the economic crises that are triggered can make tax time even more difficult.

If you want to stay financially solvent and avoid penalties, interest and other serious consequences, the strategies listed above can help you do it.

Our firm specializes in tax resolution. We also serve clients virtually so don’t hesitate to reach out.  If you want an expert tax resolution specialist 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 https://taxreliefprowestchester.com/contact/.

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August 28, 2020Categories: back taxes, filing taxes, tax extension, tax notices, Tax Resolution Strategies, taxes

IRS Collections Is Starting Back Up. What To Do If You Owe Back Taxes

June 7, 2020

2020 threw a huge wrench into everything and the IRS collections proceedings are no exception.  With the tax deadline pushed until July 15th and a lot of the IRS closed under shelter at home orders due to COVID19, to the IRS being tasked with sending millions of Americans their stimulus checks, the IRS collections proceedings took a backseat.

If you owe back taxes you might just assume you got some breathing room. However, things are starting to pick back up.

According to the Taxpayer Advocate, as of late June 2020, the IRS generated more than 20 million notices, yet these notices were not mailed to anyone. It seems now that the IRS is once again starting to send threatening notices to taxpayers who owe back taxes.

In this article, we share a few things you must do in order to get out of tax trouble and settle your back tax debt.

IMPORTANT: We highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other relief programs or get your penalties and interest forgiven. Reach out to our firm today for a consultation.

FILE BEFORE JULY 15th

Before we talk about any tax relief options, you must first get into compliance. That means being current on all your tax return filings, including your 2019 tax return.

If you missed the deadline, you must still file as soon as possible before you begin exploring tax relief options. If you have multiple years of unfiled tax returns, reach out to our firm for help today.

PENALTIES AND INTEREST

Any time you don’t pay your taxes, the IRS first hits you with a club called penalties and interest. Under normal circumstances, these penalties start accruing from day 1 after the tax deadline. Because of COVID19, The IRS is providing additional time to respond before interest or penalties apply.

If your tax bill already has penalties, our firm might be able to help remove some of the penalties by negotiating with the IRS on your behalf.

OFFER IN COMPROMISE

You might have heard advertisements about settling with the IRS, or the IRS Fresh Start program. Not everyone qualifies for it, but if your income or business was drastically affected by COVID19, there’s a good chance you can qualify now. This means the IRS will reduce your tax debt to a fraction of what you owe.

It’s important to hire a tax relief firm like ours to walk you through this process and properly represent you before the IRS. Talking to the IRS before talking to us would be like going to court without a lawyer.

DON’T TALK TO THE IRS IF YOU OWE $10K OR MORE.

Even though things are tough right now, the IRS’s main job is still to collect the taxes it thinks you owe them. That by nature pits them against you. Often talking to the IRS can be a treacherous path and you risk the chance of saying something self-incriminating. Save yourself the headache, time, and money by reaching out to our tax relief firm today. You wouldn’t go to court without a lawyer and you definitely don’t want to approach the IRS without expert representation.

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August 7, 2020Categories: back taxes, filing taxes, tax notices, Tax Resolution StrategiesTags: tax resolution

How the IRS Makes Your Life Miserable If You Owe Back Taxes

August 16, 2019

Have you received a notice from the IRS only to leave it on your kitchen counter, desk, or worse, just hide it under a stack of bills?  Unfortunately, those letters from the IRS will just keep coming.  Your problem won’t go away on its own. If you don’t take action now, the IRS WILL just … Read More…

Have you received a notice from the IRS only to leave it on your kitchen counter, desk, or worse, just hide it under a stack of bills?  Unfortunately, those letters from the IRS will just keep coming.  Your problem won’t go away on its own.

If you don’t take action now, the IRS WILL just keep piling on penalties and interest…and interest on top of the penalties…

The IRS doesn’t like being ignored so this is how they get your attention. They want to be sure you know they are not going away.  It’s like they haunt you with their ongoing letters.  If you don’t respond to them, the penalties they tack on is like a club they keep hitting you over the head with.  Penalties are just the beginning of what they can do to your life.

But that’s just the beginning…

The IRS has a lot of power over your life.  They not only can freeze your bank accounts—that’s right—but they can seize all the money in your bank accounts too.

They can garnish your wages.  They can legally take as much as 90% of your net pay check. Can you live on 10% of your net pay?  The IRS thinks and expects you can!

Besides slapping Bank Levies and Wage Garnishments on you, they can put a lien on your house, making it nearly impossible to borrow against it to pay the IRS off.  And if you sell your house the IRS gets their money first from any equity there is.

Federal Tax Liens prevent you from borrowing any money—except for those high-charging money stores located in mini-malls.  An IRS lien makes it harder to rent an apartment, get a car, obtain any kind of credit; An IRS Lien can even jeopardize your job!

And believe it or not, the IRS has the authority to show up and knock on your door!  Make no mistake—the IRS is the most brutal collection agency on the planet.

If you owe between $10,000 and $250,000 plus, the IRS has many NEW flexible programs available to taxpayers such as Offer in Compromise, Partial Pay Installment Agreements, Payment Plans, Penalty Reduction, and Currently Not Collectible Status to name a few. Each carries with it its own unique process, procedures and qualifications.  Having an experienced Tax Pro in your corner ensures you are taking advantage of the best options available to you.

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 Contact Me – Ron Friedman, CPA CTRS.

 

Till next time,

Ron

Founder and President of Ron Friedman Tax Relief Pro
taxreliefprowestchester.com
ron@taxreliefprowestchester.com
Stop IRS Hotline: 1-800-TAX-FIX0 (829-3490)

As the best tax resolution and relief company in Westchester County, NY, and the tri-state area, Ron Friedman Tax Relief Pro has specialists to stop the IRS and help troubled tax payers get out of IRS debt. If you have back taxes owed, unfiled tax returns, IRS levies, liens, seizures or wage garnishments, we at Ron Friedman Tax Relief Pro can help you settle for a fraction of what you owe. As trusted, credible tax resolution specialists, we are vested in our client’s well-being and financial security.

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August 28, 2020Categories: back taxes, garnishment, levy, Lien, tax notices, Tax Resolution StrategiesTags: back taxes, garnishment, levy, lien

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Ron Friedman Tax Relief Pro

150 White Plains Road
Suite 310, Tarrytown, NY 10591
Tel: (914) 712-6919
Fax: (914) 631-0939
ron@ronfriedmancpa.com

Recent Posts

  • How to Amend a Tax Return for a Prior Year
  • Do You Need A Tax Attorney if You Owe Back Taxes?
  • Avoid These 5 Common Tax Filing Mistakes That Can Get You In Tax Trouble

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Westchester County, NY, Fairfield Cty, CT, New York City, The Bronx, Brooklyn, Queens, Staten Island, and surrounding areas.
IRS Circular 203 Disclosure: Any tax advice on this website (or any attachment hereto) is not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed under U.S. tax law.
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