Wednesday, September 16, 2020

Do you owe $10,000 or more in IRS tax debt?

Owe $10,000 or more in IRS tax debt? In some cases, you can reach a tax resolution and settle for far less than the amount you owe. This is known as an Offer in Compromise


 Tax Resolution

An offer in compromise is a tax resolution settlement of a delinquent tax account for less than the original amount owed. However, you will not get such an Offer approved without specialized assistance. As per the data available, in the year 2004 only sixteen percent of Offers were accepted. 

 


Tax Resolution

If you are the having tax disputes with the IRS, tax professionals like experienced Enrolled Agents (EAs), Certified Public Accountant (CPAs), and tax attorneys can help you reach a tax resolution. Tax resolution encompasses a wide variety of settlements which includes IRS audits, Federal Tax Liens (IRS Liens), bank levies or wage garnishments, IRS penalty abatement, innocent spouse defense, bankruptcy discharge analysis, Offer in Compromise, un-filed or delinquent tax returns, and IRS collection statute of limitation analysis. 


Tax Settlement Services

Thus, it is advisable to seek services of professionals (like EAs, CPAs or tax attorneys) specializing in solving tax problems or negotiating a tax resolution. You should get in touch with these professionals if you are involved in tax disputes like un-filed tax returns, missing records, threat of tax levy, or, if you need a tax resolution like Installment Agreement or an Offer in Compromise or want to be declared Currently Not Collectible. 

Tax Settlement Services

For taxpayers, who are not able to reach a tax resolution immediately, an installment agreement can be a reasonable payment alternative. Installment agreements permit the full payment of the tax debt in smaller, more manageable amounts for the taxpayer. Currently Not Collectible is another tax resolution strategy, which implies that an individual has no ability to repay his or her tax debts. The IRS can affirm a person as "currently not collectible" after the IRS receives concrete substantiation that the individual has no capacity to pay. Once the IRS proclaims an individual as "currently not collectible", the IRS discontinues its recovery or collection activities, including levies and garnishments. However, the IRS sends an annual statement to that taxpayer stating the amount of tax still owed. 

IRS offer and compromise

While currently in not collectible status, the ten-year statute of limitations on tax debt collection remains in force. If the IRS cannot collect its tax dues within the ten-year statutory period, the tax debt expires. The IRS is perennially, under tremendous pressure to recover the billions of dollars, currently outstanding. Therefore, it will seriously consider all the reasonable offers to recover its debts and try to reach a tax resolution or close cases in all these areas. 
IRS offer and compromise

Tax Debt Installment Agreement

If you owe the IRS or State more than you can afford to pay, you are allowed to make payments over a given period of time.


Streamlined installment agreement allows you to pay your tax debt balance in full over a 72-month period. Call (855) 913-0249 for free tax consultation.



Some Installment Agreements require the full payment of the tax liability which is set into monthly installments paid over time. Other Installment Agreements allow you to partial pay your liability in monthly installments over time.



If you cannot fully pay off your balance you may claim hardship where you make payments based on your ability to pay and not on the amount you owe. If the circumstances apply, you may not need to pay anything.




We know what the IRS will and will not allow. By planning properly and creating a comprehensive package to submit to the taxing agencies, we ensure that if you enter into an installment agreement, it will be for an amount you can comfortably afford over an extended period of time.

Find a tax adviser near you.

Tax Resolution

The tax advisers help can be sought by meeting them in person or through phone conversations. 


Tax Resolution

Usually, your city won’t have a dearth of this professional classification. Knowing why you don’t need a tax adviser would hopefully also show you the reasons why you, indeed, may need their services sometime in the future. 


Tax Resolution


Usually, your city won’t have a dearth of this professional classification. Knowing why you don’t need a tax adviser would hopefully also show you the reasons why you, indeed, may need their services sometime in the future. 





Internal Revenue Service tax issues can be resolved even if you owe hefty sums, and even if you haven't filed your taxes in years. If the problem is blown out of proportion, the IRS may file a federal tax lien, levy your bank account and wages, confiscate and sell your car, home or business. Reaching a tax resolution with the IRS can avert such catastrophic consequences. In some cases, you can reach a tax resolution and settle for far less than the amount you owe.  This is known as an Offer in Compromise. An offer in compromise is a tax resolution settlement of a delinquent tax account for less than the original amount owed. However, you will not get such an Offer approved without specialized assistance. As per the data available, in the year 2004 only sixteen percent of Offers were actually accepted. Thus, it is advisable to seek services of professionals (like EAs, CPAs or tax attorneys) specializing in solving tax problems or negotiating a tax resolution. You should get in touch with these professionals if you are involved in tax disputes like un-filed returns, missing records, threat of levy, or, if you need a tax resolution like Installment Agreement or an Offer in Compromise, or want to be declared Currently Not Collectible.Call 866-218-5924 right now for free consultation.



For taxpayers, who are not able to reach a tax resolution immediately, an installment agreement can be a reasonable payment alternative. Installment agreements permit the full payment of the tax debt in smaller, more manageable amounts for the taxpayer. Currently Not Collectible is another tax resolution strategy, which implies that an individual has no ability to repay his or her tax debts. The Internal Revenue Service can affirm a person as "currently not collectible" after the IRS receives concrete substantiation that the individual has no capacity to pay. Once the IRS proclaims an individual as "currently not collectible", the IRS discontinues its recovery or collection activities, including levies and garnishments. However, the IRS sends an annual statement to that taxpayer stating the amount of tax still owed. 



The IRS is perennially, under tremendous pressure to recover the billions of dollars, currently outstanding. Therefore, it will seriously consider all the reasonable offers to recover its debts, and try to reach a tax resolution or close cases in all these areas. 

Settle Tax Debt from IRS Back Taxes. 855-913-0249

X-pert Tax Resolution solves tax problems for businesses and individuals everyday. 


Do you owe tax debt from IRS, Tax Resolution X-perts can assist you in settling your tax debt for a fraction of the owed amount. Call 855-913-0249 to speak with a CPA about your tax problem.



Don’t try to solve tax problem on your own, IRS doesn't make solving tax problem easy for taxpayers. Dealing with the IRS is a bit stressful and confusing for a novice to handle. Stop trying to resolve these complex issues on your own. 



Are you experiencing tax problems with IRS? Do you owe $1000 or more to IRS or State on back taxes? The ideas of trying to pay off growing tax penalties, finding the missing paperwork to file your back taxes, or facing an IRS inspection can seem like too much. If you are in this situation, don't hesitate to get tax relief, turn to Tax Resolution X-perts today. Don’t be afraid of the IRS anymore. If you owe more than $1000, back taxes do not hesitate to call Tax Debt Relief professional team to stop levies, seizures, or wage garnishments and to solve your tax problem as appropriate and available for your situation.





We have tax resolution expert that get tax relief for both individuals and businesses. We can get tax penalties reduced, file delinquent tax returns and negotiate a number of a different payment option to pay off your tax debt like an offer in a compromise or an installment agreement. 




Our service includes:
IRS audit assistance
Releasing tax liens and levies
Filing back taxes
Tax penalty abatement
Resolving payroll tax problems
Tax relief solution for business and individuals
Preparing offers in compromise.


Tuesday, September 15, 2020

Small business accounting practices.

Practically every small business has receivables that it cannot obtain from clients. If your small business doesn't have any such receivables, consider yourself lucky. 




For those small businesses that suffer from uncollected receivables, solace can be taken from the fact you can claim a tax deduction. 





Bad Debt Tax Deduction: A small business can write-off bad debt losses if it meets nominal requirements. To claim such a tax deduction, the following must be shown: 


A. The existence of a legal relationship between the small business and debtor;






B. The receivables are worthless; and


C. The small business suffered an actual loss.
Proving there is a legal relationship between the small business and debtor is fairly simple. You must simply show that the debtor has a legal obligation to make a payment. Most businesses issue invoices or sign contracts with debtors and these documents suffice to prove the legal relationship. If you are not putting your business relationships in writing, you should begin doing so immediately.





Proving receivables are worthless is slightly more complex. A small business is required to show that the debt has become both worthless and will remain so. You must also show that you took reasonable steps to collect the receivables, but you are not necessarily required to go to court to meet this requirement. A clear example where you would meet this requirement is if the debtor filed bankruptcy. While proving that you suffered a loss may sound like the easiest requirement to meet, the issue is a bit more complicated. The Tax Code defines the loss as an amount that is included in your books as income, but is never collected. A classic example of such a situation would be a manufacturer that provides products to retailers on credit. The manufacturer can show a real loss if the retailer files bankruptcy. Unfortunately, there is almost no way to claim a loss if you provide hourly services and use a cash accounting method. The IRS does not consider the expenditure of time and effort to be a sustained economic loss. Small businesses suffer all to often from uncollected receivables. If you failed to claim such losses as a tax deduction during your last three tax filing years, you should file amended tax returns to get a refund. 



Save On Taxes

Save On Taxes: Buy A Hybrid Car


The hybrid vehicles are significant in saving the tax payer from paying a big amount of tax. 




Those who are benefited by the purchase of the hybrid vehicles are dejected on the very mention of the possibility that the government at some point of time might restrict the launch of these vehicles in the market. 



The government of many developed nations have many a times made plans to prohibit the large-scale production of these vehicles and also to substitute the already on the run vehicles based on gasoline. However, in the recent times, the government of these countries has lent its support to the production and use of these vehicles. This decision is since the hybrid tax credit has shown its potential in saving the money. The tax creditor, as it is available straightforward from the money to be paid as tax, is greater to a tax deduction. The tax deduction is of the nature that it decreases the tax reliability on the rate of the tax to be paid. That is why the hybrid tax credit is of such great significance for the taxpaying person. A deduction simply reduces the tax liability based on the tax rate of the individual taxpayer to owe a hybrid vehicle. The fact could not be denied that the hybrid vehicle saves a great amount as it has superior gas mileage.




This type of tax credit can’t be applied for buying a second-hand vehicle. It is the responsibility of the manufacturers of the vehicles to provide the information about the credit amount to be put on it and this information is available to the buyers at the time of purchase of the vehicle that assists him to allege the credit. There are several conditions applied on the hybrid vehicles. Firstly, there was a time limit and this tax credit was made applicable for the vehicles available in the market within this limit. Secondly, it was mandatory to use the vehicle in USA only. Moreover, the credit started only after a model achieved the target of 60,000 sales. 




The Hybrid Tax Credit was included in the Energy Policy Act of 2005. Its introduction has proved that the government has finally understood the importance of the hybrid vehicles in market. It is now in the list of the government to reduce the use of gasoline dependent vehicles. The flip side of this tax credit is that this kind of tax credit is not always in the favor of the taxpayer, as he or she must make some sacrifice in order to serve the interest of the society.

IRS tax debt relief


How can I avoid IRS tax debt relief scams?


A: Although most tax relief companies are legitimate, there are scams that prey on people’s desire to find a quick solution. There are two main types of scams:

  1. Tax settlement companies that charge upfront high fees but don’t provide results.
  2. Companies that charge fees by telling you to do something illegal, then they take your money and run.


The second one is the most damaging to you, because they advise you to do something that breaks the law. For instance, they tell you to use a new Social Security number or Employer Identification Number. Basically, the advice is to try to hide from the IRS and start fresh with a new identity. This is a felony offense, so don’t do it!


The first scam for settlement is, by far, the most common. Companies claim that they can settle your tax debt for “pennies on the dollar” and that they “guarantee they can reduce your debt.” Again, they charge high fees to give you a quick settlement, but they don’t deliver. They also don’t give you your money back, even though they said they guaranteed the service.

To be clear, tax settlement is possible, but it’s not as common as these companies make it sound. You must fully disclose your financial situation to the IRS. After a thorough review, they may grant an Offer In Compromise ONLY if they see there is no reasonable expectation that you can repay everything you owe.




To avoid scams, just follow the three tips we provide above to review any company before you sign up. As long as you do your homework, you can avoid getting scammed..





Individual Tax Saving Ideas

Individual Tax Saving Ideas







But when it comes to your taxes, it can seem like you're stuck paying the amount you are told to pay. However, this is simply not the case.




While the tax code is rigid and there are a lot of rules to follow, the truth is that many people don't take the time to learn how the rules work and how they can work to their advantage. 





Often, there are rules that can help to lower your annual gross income so that you're not only lessening your taxes, but also getting a larger return for that vacation you've always wanted to take. First of all, what you need to realize is that there are two different kinds of deductions that are listed in tax law – deductions and tax credits. Deductions are those costs that are subtracted from your gross income on the front side of a tax form before anything else is taken off. These help to lower your tax bracket first along with the standardized deductions that everyone has on their forms. Tax credits are those deductions that come directly off of the amount you are to be taxed. Obviously, these are much more significant and will help to dramatically lower your owed taxes. When you look at a basic 1040 form, which the usual form that most individuals use, you will notice that on the front of the form, you can take deductions for the following:


Exemptions


That is, those people who are dependent on you. You get a tax break for them. This is generally going to be one or two if you don't have any children (single or married correspond with one and two). You might also reduce the taxes you owe at the end of the year by reducing the exemptions you claim on your initial W-2 form. Instead of claiming '1,' you might want to claim '0.' This maximizes the amount of taxes that are taken from your paycheck. There are also standard deductions that everyone can take. Some of these include (for the 2007 tax year):



·         Single deduction: $5350

·         Married, filing separately deduction: $5350

·         Married, filing jointly: $10700

·         Head of Household: $7850

·         Widow(er): $10700


Each year these deductions seem to go up and help ease the burden of taxes on everyone in some way. These deductions will go on Schedule A to help reduce your gross income:


Medical deductions


If you have a lot of medical expenses, you will want to keep receipts and make sure to enter in the totals here. What can and can not be included in this total varies per year, so you will want to check with the IRS to see what the current rules are. These costs can not be something that was reimbursed by your health insurance company or by another else.

Taxes that you already paid


If you already paid estimated taxes, you will want to make sure that you are listing that total. This can be money that you sent the IRS to help with this section or it can be associated with a business.


Do you owe tax debt? IRS will Bank Levies - Wage Garnishments



There a good chance that you are reading this article because a taxing agency has either levied your bank account, garnished your wages.



Tax Levies and garnishments while effective, are not done with the intent to collect unpaid taxes in full. Rather, these methods are used as effective calls to action. A bank levy is accomplished by freezing the available funds in one’s bank account or accounts. After a waiting period (21 days for the IRS), the funds will be remitted to the taxing agency unless the taxpayer can (1) prove they do not owe the money, (2) prove they qualify for hardship status or (3) in some instances enter into an alternative agreement to pay. Keep in mind that upon levy, the money is tied up and is for all intents and purposes in the taxing agency’s “court”. We say, “whoever has the money…wins”. Simply asking for the money back rarely works. A bank levy is a one-time occurrence but new levies can recur indefinitely.

What are Enrolled Tax Agents?


According to the IRS, an Enrolled Agent is a professional who is “recognized to practice before the IRS.” What this means is that an Enrolled Agent is a professional of whom the IRS is satisfied that he or she is trained to handle all tax related issues on behalf of taxpayers. 



An Enrolled Agent undergoes comprehensive training and testing in U.S. taxes. What are the qualifications of an enrolled tax agent? To qualify as an Enrolled Agent, one first needs to pass a professional exam on taxes. 





The Enrolled Agent test is in three parts. The test examines the candidates’ knowledge of various IRS procedures and rules, tax return forms, and the various deductions, credits, and entries. Former IRS agents and workers are provided various exemptions from this test. Upon passing the test, a candidate applies to the IRS to get an Enrolled Agent’s license. Before approving the application, the IRS performs a background check to confirm that the applicant does not have a felony charge and does not have issues of professional misconduct. The applicant also needs to be updated with their personal taxes. 







Once the IRS approves an applicant, the applicant is licensed to operate as an Enrolled Agents for 3 years. Within this time, the agent is also required to undertake a 72 hours continuous training to keep them up to date with all tax issues. Failure to meet these training requirements will have the agent lose his or her license after the 3 year term. The training and examination of Enrolled Tax Agents is much more comprehensive than that of “non professional” tax preparers. Tax preparers who are not attorneys, CPAs, or Enrolled Agents only undertake one exam on 1040 tax returns and are only required to have an annual continuous training of 15 hours to keep their licenses. What Can an Enrolled Tax Agent Handle? The training of Enrolled Agents enables them to provide various services including but not limited to the following:










Starting 2011, the IRS requires tax preparers to undergo testing, annual training and meet other requirements to keep their practicing license. However, for CPAs, attorneys, and Enrolled Agents, the IRS does not have such strict requirements, as it believes that these professionals are well trained to handle any tax issues. Most taxpayers know and understand the CPA (accountant) profession and attorneys. However, there are few taxpayers who understand the profession of Enrolled Agent. This article seeks to shed more light on these professionals.


    • Representation – An Enrolled Tax Agent can represent a tax preparer before the IRS on any tax issue. Since the agents are nationally registered, they can represent a taxpayer in any of the IRS offices throughout the country.



    • Preparation and Filing – Like any other tax preparer, the Enrolled Agents also provide tax preparation and tax filing services.



    • Advisory – Since these agents are well vast with knowledge regarding taxes, they are able to provide sound advice as far as taxes are concerned. However, depending of the advice being dealt, attorneys or accountants may be better positioned to provide such required advice.