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

May 19, 2022

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 back taxes to 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, since 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.

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 Get help from Ron Friedman, CPA. 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.

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. Let us see what IRS tax debt settlement programs you qualify for today. Get help from Ron Friedman, CPA.

Avoid the April 15 Blues – Take a Step-by-Step Approach to Your Taxes This Year

February 14, 2022

It is no wonder so many Americans dread the April 15 tax filing deadline, (April 18th this year). The U.S. tax code already contains more words than the Bible, and hundreds of pages of new rules and regulations are often added.

With so much complexity, it is no wonder so many of us put off filing our taxes until the last possible minute, but taking that approach introduces its own stresses and can potentially land you in hot water with the IRS. What if you do not get it done on time? You can file for an extension, but you are still required to pay the taxes you owe plus penalties and interest. How do you know you didn’t make a mistake with your last-minute tax filing? Something as simple as a mathematical error could increase the odds of an audit and put you in the crosshairs of the IRS.

We specialize in helping people who owe $10,000 or more to the IRS or have years of unfiled tax returns, so we’ve seen our fair share of mistakes made by innocent taxpayers. 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. We help people find tax relief Get help from Ron Friedman, CPA.

That said, we recommend taking a methodical and step-by-step approach to preparing and filing your taxes and avoid burying your head in the sand on April 15th. As with any unpleasant and complicated task, breaking your taxes down into smaller and more manageable chunks can make things easier. This year, vow to take a step-by-step approach to your tax return. If you follow these simple steps, you could be done with your taxes before you know it.

Step 1 – Set Up a Command Center

Chances are you will start receiving tax documents in early January, and you may still be receiving those documents in March. That means you need a convenient place to keep all those documents. Setting up a command center in your home makes it easier to store those documents and keep them at hand.

If you have a home scanner, take a few minutes to image each document as it arrives. Set up a special folder on your computer or cloud storage service to hold all those documents. Those electronic copies can be invaluable if the originals are damaged or destroyed.

Step 2 – Choose A Good Tax Preparation Service (But Use A Tax Resolution Service For More Complicated IRS Issues)

While they cannot make the task totally painless, tax preparation professionals do make the process a great deal easier.

Keep in mind, if you owe multiple years of taxes and have multiple years of unfiled returns, we recommend reaching out to a tax resolution firm that will understand your unique situation and find the tax relief you need. Most tax preparers aren’t trained in complex tax resolution, so find the right firm to help you with your case.

Step 3 – Enter Your Tax Documents As You Get Them

One of the great things about technology is that you organize and file each tax document as you get it, often you can download all your tax documents from various online services. For example, your direct deposit payroll service will give you your W2 and different vendors provide statements and 1099’s online. If the mailman brings you a 1099-INT or a W-2, you can simply scan things as they come in.

Just open each document, scan it to create an electronic backup and log on to your favorite secure cloud storage to file your documents. Whether you get five tax documents a day or just one, entering the information now can save you time later on.

Step 4 – Review Your Documents and Final Tax Return

After you think you have all your documents organized and your tax return is ready to file, the next step is to review everything and make sure there aren’t any obvious issues. Go through the paper and electronic copies and check each one off on your tax return. If any of those documents are missing or anything is wrong, go back and enter them right away.

Step 5 – Bring It All Together

Now that the final review is complete and all the documents have been entered, it is time to bring it all together and actually file your return. Your tax prep professional should include a series of checks designed to catch common errors and point out audit flags. Be sure to ask questions and correct any problems you might find. Be sure to print off a copy of your tax return and save an electronic version to your computer.

Nothing can make filing taxes fun, and this annual chore will never be a pleasant one. Even so, you can make the task less taxing by breaking tax filing down into its component parts. Following the steps outlined above can help you deal more effectively with your tax bill and all the complexities of the tax code.

OWE BACK TAXES?

Our firm specializes in tax resolution and helping people who owe the IRS or state $10,000 or more. We’ve seen taxpayers get blindsided every year by a huge tax bill and often falling behind on their taxes for years on end. If that’s you, we can help. Contact our firm today to discuss your tax debt settlement options Get help from Ron Friedman, CPA.

Common Tax Relief Programs the IRS Offers

January 11, 2022

The old saying that nothing is certain in life except death and taxes has never been truer, or more frightening. In the current environment, fear of the IRS is creeping in, and nothing will get your heart racing quite as fast as opening the mailbox and finding a letter from the tax agency.

When the IRS comes calling, you might think that there is nothing you can do. You may worry that you will have to liquidate your assets, sell your car or even put your home on the market to afford what the IRS says you owe.

The good news is that you may not have to pay that total amount, and before you write that big check you should check out the alternatives first.

The IRS actually understands taxpayers fall behind on their taxes, and they have programs in place that can reduce the amount you owe or at least make paying the tab a little easier.

Note: As a tax resolution firm, we always recommend that you reach out to a professional who knows how to aggressively negotiate with the IRS on your behalf. If you owe back taxes, our firm can help negotiate with the IRS and potentially settle your tax debt. Call us today. Our tax resolution specialists can navigate the IRS maze so that you have nothing to worry about. Get help from Ron Friedman, CPA.

With that said, here are some of the most common tax relief programs the IRS has to offer – and how you can access them.

Payment Plans

Otherwise known as installment agreements, one of the most common ways taxpayers approach the repayment of their back taxes is by setting up a payment plan. This type of program is a popular one, and for good reason – it can greatly reduce the stress you feel as you deal with an unexpected tax bill.

There are pros and cons to this approach, and it is important to explore your other options very carefully. With a payment plan you will need to pay the entire amount you owe, but you can stretch the repayment out over months or even years. Keep in mind, however, that the IRS will continue to charge interest on the remaining balance, so this option will require you to pay more than the amount you owe.

Offer in Compromise

Another program the IRS offers is known as the offer in compromise, or OIC. This option allows eligible taxpayers to settle their tax debts for less than the IRS says they owe, and that means you could save money if you qualify for this program.

The offer in compromise is not right for everyone, and it is important to work with a tax relief expert or tax resolution specialist if you are exploring this kind of compromise. If you have significant assets, the IRS may not be willing to settle, but if you are strapped for cash the offer in compromise arrangement could be the way out of the trouble you find yourself in.

IRS Hardship Program – Currently Non-Collectable

The IRS hardship program is another option for taxpayers who are financially unable to pay what they owe to the tax agency. If you are truly strapped for cash and worrying about your tax debt, you should definitely check out the hardship program, but you should not try to work with the IRS on your own.

The hardship program has some very specific requirements, and if you make a mistake when applying you could find yourself locked out of the process. By working with a tax resolution specialist, you can increase your odds of success and possibly save yourself a lot of money in the process.

What is the best option?

As you can see, the IRS does offer a number of programs that can reduce the amount you owe – or even forgive your tax debt altogether. If you are eligible for one of these tax relief programs, you could find yourself breathing a lot easier, but the IRS is not likely to give you the information if they do not have to.

As a taxing authority and agency, the IRS has an interest in keeping these relief and resolution programs under wrap. Their goal, after all, is to collect as much money as possible and telling taxpayers that they can pay less is simply not in their interest.

For all of those reasons and more, it is important to work with a tax resolution professional whenever you are dealing with an IRS problem. Whether the debt is the result of years of unfiled taxes, a discrepancy in the amount reported and what the IRS says you owe or anything else, specific expertise can make a huge difference – and save you a lot of money in the process.

Knowing about the tax relief and favorable resolution options the IRS offers is the first start, and that education can be a huge point in your favor. Now that you know what types of programs are available, it is time to take the next step, so pick up the phone and call us, your tax resolution specialist, today. Get help from Ron Friedman, CPA.

3 Reasons You Shouldn’t Talk To The IRS Yourself If You Owe Back Taxes

August 8, 2019

If you owe money to the IRS, it might sound like common sense to try to tackle your tax problem on your own. However, one of the worst things you could do is talk to the IRS directly without proper representation. As an expert Tax Resolution Firm, we encourage all readers facing a tax problem … Read More…

As an expert Tax Resolution Firm, we encourage all readers facing a tax problem to contact us for a free consultation Contact Me – Ron Friedman, CPA CTRS.

tax helper The IRS is not on your side and their primary goal is to collect the taxes they believe you owe. In this article, we give you 3 reasons why talking to the IRS directly could get you into deeper trouble.

You Have Rights

Contrary to popular belief, you DO have rights as a taxpayer you probably don’t even know exists. One of those rights is the right to representation. If an IRS revenue officer or revenue agent calls or “visits” you, did you know you are under no obligation to answer any of their (very intrusive and condescending) questions? You politely respond by asking for their contact information and telling them you are in the process of hiring a professional to represent you and that this person will contact them directly. A CPA or Enrolled Agent (EA) that deals with IRS problems for a living knows the “ins” and “outs” and how to deal with the IRS so that your rights are protected. A tax resolution specialist also knows how to get you the lowest possible settlement allowed by law. Generally, our clients never meet or speak with the IRS once we’re on the scene!

Answering Questions Can Dig You Into A Deeper Hole

If you are being audited or about to be – The IRS will ask you about 50 very intrusive questions in the initial interview with them. How you answer these questions will dictate the fate of your case. Having a tax resolution specialist conduct these meetings, WITHOUT you is the best course of action I can recommend. Half of the referrals to the IRS’s criminal investigation division (CID) come from that “nice” auditor you’re sitting across the table from at the audit.

They won’t tell you about all the settlement programs and options you have. The just want their money.

If you owe between $10,000 and $25,000 plus, the IRS has many NEW flexible programs, under their Fresh Start Initiative, 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 carry 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.

One last thing….

Ask yourself this question: Would you go to court without a lawyer?

If you answered “yes” hopefully you know the law inside and out concerning your case, but if representing yourself doesn’t seem like a great idea it’s best to hire somebody who is well versed in the subject matter. Well, it’s the same thing with the IRS. Having someone who knows how to negotiate the IRS’s maze of rules, regulations and the 74,000 pages of the Tax Code and deal with the IRS may be the best money you’ve ever spent!

If you want the help of an expert tax resolution professional who navigates the IRS maze for a living, 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.

How To Get IRS Off My Back

March 10, 2016

Owe IRS money and need to get the IRS off your back? We’re experts at the IRS Fresh Start Program and make it easy for taxpayers to avoid liens and pay back-taxes. First, it’s critical to understand that the IRS will not go away on their own. Ignoring your tax problem will force the IRS … Read More…

Owe IRS money and need to get the IRS off your back? We’re experts at the IRS Fresh Start Program and make it easy for taxpayers to avoid liens and pay back-taxes.

First, it’s critical to understand that the IRS will not go away on their own.

Ignoring your tax problem will force the IRS to use tough tactics like wage garnishments, levies, liens and seizures and even jail-time.

We know the IRS is like any other lender and is primarily interested in collecting what they can from taxpayers, even small amounts. Therefore, they are always open to feasible solutions, specifically those outlined in the IRS Fresh Start Program.

However, it’s just as important to make sure you have a trust-worthy, reliable tax resolution professional when dealing with the IRS. Proper representation is vital in presenting your case accurately and thoroughly to the IRS. As a matter of fact, our clients never even have to meet with the IRS.

Here are 4 critical steps and options to get the IRS off your back:

IRS Money Owed

Review your return completely to confirm you actually owe what the IRS has stated. It’s very easy for inexperienced tax accountants or do-it-yourselfers to record the same income twice or forget an important deduction.

IRS Tax Liens

The IRS Fresh Start Program outlines an increase in the amount that taxpayers can owe before the IRS typically files a Notice of Tax Lien. The amount is now $10,000. So, if you owe less and meet certain requirements, you may qualify under this program. Or, if you pay a minimum of your tax debt through a Direct Deduct Installment Agreement, you may be eligible to have your lien notice withdrawn.

IRS Installment Agreements

Access to Installment Agreements have now been streamlined, thanks to the IRS Fresh Start Program. taxpayers who owe up to $50,000 can now pay via monthly direct debit payments for up to six years. For those who owe more than $50,000 or need more than six years to pay will need to show financial statements and complete multiple IRS forms.

Offers in Compromise

The IRS Fresh Start Program has also been expanded to Offers in Compromise agreements that enable taxpayers to settle their IRS tax debt for less than what they owe. In general the IRS will accept an offer that represents the most they can get within a reasonable timeframe. The IRS will not accept an offer if they feel the taxpayer can pay the amount owed in full as a lump sum or payment plan.

Overall, the IRS can still be scary for many taxpayers. That’s why it’s crucial for you to do your homework and find a qualified IRS tax relief professional like Ron Friedman Tax Relief Pro. All of these options require IRS forms, documentation and situational analysis. At Ron Friedman Tax Relief Pro, we’ve proven our expertise and have gotten taxpayers to settle for pennies on the dollar.

We encourage you to contact us for your FREE no-obligation confidential consultation.