Do you have years of unpaid tax returns? Are you dealing with an IRS tax audit?
Tax problems are no joke. And if you don’t take the initiative to resolve them yourself, they often catch up to you with penalties, interest, and possibly jail time.
From IRS Tax Liens to unfixed returns, it’s best practice to sit down with an authorized tax practitioner to review your unique situation and decide the best course of action to help get you back on track.
Want to lean more about our tax solutions? Here are a few of the tax problems Glendale residents face and how we address them:
IRS Tax Liens
The most severe of tax consequences, an IRS Tax Lien can have devastating effects on your savings, possessions, and financial future. If your taxes are unpaid, the IRS can file a lien against all of your assets that gives them the right to collect your unpaid taxes from selling your possessions. In addition, liens show up on your credit report and can make it very difficult to obtain financing for a car or home.
At Robert Hall & Associates, our tax professionals can help you get back into compliance and remove any liens that you have on your assets. Upon assessing your finances, assets, and tax debt, we’ll find the best solution to pay your debts and help you move on with your life, whether it’s filing a lien withdrawal, establishing a payment plan, or seeing if you qualify for an offer in compromise (the IRS’s Let’s Make a Deal option).
Have you been selected for an IRS tax audit? Audits are supposed to be random, but more often the IRS targets taxpayers based on suspicious activity. Regardless, if you’ve received a letter request for an audit, you must take this request seriously and develop a strategy quickly.
Although individuals can represent themselves in IRS tax audits, you’re best bet is to hire a tax professional like an Enrolled Agent to represent you on your behalf. A tax professional will make sure all your affairs are in order, plead your case, and negotiate an agreement if need be.
Failure to File Returns
Skip a year or two in filing returns? That’s a serious crime. The IRS keeps a record of taxpayers who were required to file but didn’t, and can choose to pursue those returns at any minute. If you wait for the IRS to come to you, they can file a substitute return for you without any credits or deductions in your favor and slap on expensive penalties and prosecutions.
But if you voluntarily file your missing returns, you’re more likely to spare yourself hefty prosecution and just end up being responsible to pay penalties and interest. A tax professional can help you file your delinquent returns, see how much is owed, and negotiate a monthly payment plan or offer in compromise on your behalf to pay off your tax liability.
Penalties for Underpayment
It’s easy to underpay your taxes if you’re a worker with a variable income, like a small business owner or 1099 Employee. If you fail to calculate the correct quarterly tax payments or accidentally skip a payment, you may be faced with an underpayment penalty.
If you’re an underpaying taxpayer, the IRS will provide you with Form 2210 to determine what you owe. However, there are ways to avoid underpayment penalties, such as if you either owe less than $1,000 in tax or if you paid at least 90% of the tax for the current year or 100% of the tax the prior year, whichever is smaller. There are also special rules for farmers and fishermen, household employers, and certain higher income taxpayers. To ensure your underpayment penalty is resolved correctly, always consult a tax professional.
Gross Income Discrepancies
Mistakes happen, and whether intentional or not, when it comes to the IRS they must be corrected. So whether you made a math error, forgot to report some income, or received a corrected 1099 after you filed your return, if your income was reported incorrectly it must be revised. You have two years to file a revised income tax return to rectify your mistake.
No matter Tax Problem, the Tax Experts at Robert Hall & Associates Can Help!
Receive an Audit Letter from the IRS? Learn how an Enrolled Agent can represent you in an IRS Tax Audit.
Are you planning for the future? Learn what new federal regulations may impact your current and future financial goals.