Category: tax assistance

4 Scenarios Where You May Want Assistance with Your Taxes

Let’s face it: taxation laws can be complicated. The average person has limited knowledge of things like mergers & acquisition, San Diego tax laws, management consulting, San Diego business formations and much, much more. Even if you have filed your own taxes before and have never sought assistance, there are some scenarios in life where you may want to find a consultant to help you transition and prepare your taxes accurately.

1) You’ve started your own business.

If you have recently started your own business, congratulations! This is a huge accomplishment that can reap big rewards. However, there are a lot of ins and outs to owning your own company, especially in terms of finances and taxation. In regards to advisory management, San Diego financial and legal firms are ready to assist you in creating a workable business budget, managing your financial assets and finding write-offs for expenditures that you are making for the company. America’s tax codes were originally written in support of small businesses, so a skilled tax and accounting specialist can help you learn how to use laws to your advantage as a new business owner.

2) You’re pressed for time.

Maybe you work for someone else, and your taxes aren’t very complicated. However, you simply don’t have the time to file your own forms and figure everything out. With the go, go, go rush of Southern California and/or the business world, accountants can come in handy. Find a certified accountant with a track record of success (check on the Better Business Bureau website) and a tax preparer identification number to get you started. With your W-2s, records of expenditures and any receipts you may be able to write off, an experienced professional can take much of the tax-filing burden off your back.

3) Frankly, you’re bad at math.

If formulas and equations get your head in a spin, there’s no shame in hiring an accountant. When it comes to the IRS and taxes, it’s better to be safe than sorry—hire someone who can help you understand your return or who can just do it accurately for you the first time.

4) Your finances have significantly changed in the past year.

If you own a company that bought out another in a merger/acquisition, this can change your tax responsibility. Or, if you have purchased new real estate or sold previously owned property, your tax codes may be different than last year. Even in the case of a new addition to the family, or the death of a loved one, you may be surprised to see that your tax liability could have changed significantly from the previous year. If you suspect that a major life change will affect your finances, call a taxation/finance specialist.

Jessica writes about a wide variety of topics.  She especially enjoys writing about taxes. You can learn more about mergers & acquisition san diego at http://www.allenbarron.com/

 

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IRS Becomes More Lenient in Light of Recession

The IRS typically resorts to a lien system when it has difficulty collecting taxes from individuals for a long period of time. These liens can make it hard for a person to qualify for insurance, housing, or even find a job. In effect, a lien gives the IRS access to a person’s property if the person owes enough in back taxes. This process can destroy a person’s credit rating. Since the country is working to recover from a recession, it is important that individuals have access to these opportunities to create more income. The IRS has agreed to change its lien methods so that there will be less pressure on the already strained economy.

Reducing Number of Liens

The first step in reducing the number of liens that the IRS is using is to change the amount of taxes owed that causes a lien to be placed. Until this year, a lien was put in place if an individual owed $5,000 or more in back taxes. This year, a person must owe at least $10,000 before the IRS will put a lien in place. That change alone will allow thousands of individuals to continue to make payments on their taxes without the additional pressure that a lien can cause. It will also help keep the economy moving forward because more people will be able to find work and purchase large ticket items.

Easier Lien Withdrawal

The IRS is also willing to be more flexible with individuals who are already paying on liens that were imposed previously. It is easier for someone to establish a payment plan so that they can have their lien withdrawn by the IRS. Having a lien withdrawn will immediately begin to repair the person’s credit rating so that he or she can take the necessary steps to begin paying off the tax obligation without suffering from the severe penalties a lien creates.

Delayed Payment Options

There are some ways that individuals can avoid a lien altogether. The IRS is becoming more vocal about payment options that could keep people out of serious trouble. The first step is to file your tax return on time, even if you cannot afford to make your tax payment right away. Once your return is filed, you can begin negotiating with the IRS for different payment options. The IRS will allow most tax payers to delay their payments by 30 or even 60 days in most cases.

Installment Payments

If a short delay in payments is not enough to help you pay the amount that you owe, you can establish an installment plan with the IRS. You will need to talk with an IRS agent about your options for the plan, and you will have to pay additional fees if you must create an installment plan. Keeping an open line of communication with the IRS and cooperating as much as possible will reduce your odds of being actively pursued for the taxes that you owe. The IRS has created many ways for individuals to pay their taxes so that they do not have to resort to liens.

 

Jessica Bosari writes about personal finance for Billeater.com, a site that offers money-saving tips, advice and information. Visit Billeater for more ways to save.

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Reducing your IRS tax debt – A step towards fiscal freedom

Knowing as well as learning the ways of reducing your IRS tax debts is the only possible solution to the nerve-wracking problem. According to resent studies, it has been seen that the huge number of IRS tax defaults is due to lack of awareness than the negligence on the part of the actual tax-payers. Most people in the US do not have any inkling ways to seek IRS tax debt relief and this ignorance builds up their fearfulness that leads them into incurring more and more debt. If you too have missed your payments on your taxes and you’re not aware of the ways in which you can pay them off, here’s help for you. Have a look at the ways in which you can tackle your IRS tax debts.

Guaranteed installment agreement: If you want to make sure that you’re soon free of IRS tax debts, you can negotiate a guaranteed installment agreement with the IRS. However, you can only seek help of this option if you have dues that range above $10,000 or less. You also need to meet some more criteria like all your tax returns must be filed and the monthly installments will pay off your balance within 36 months. You also need to agree that you will pay your tax debts regularly in the near future. The biggest benefit that you can reap off the guaranteed installment agreement, you will not require filing federal tax lien. Tax liens can easily hurt your credit score, if reported.

Streamlined installment agreements: You can talk to the IRS about your financial hardship and then you may negotiate a streamlined installment agreement if the balance that you owe amounts to $25,000 or less. You need to agree that you will repay the balance within a span of 60 months. The minimum balance that the IRS will accept is the total amount owed (including the penalties and fees) divided by fifty. All your tax returns must be filed and you must agree to file your tax debts on time.

Offer-in-compromise: If you think that your present monthly income is not enough to suffice the huge amount of tax debt that you own, you can go for offer-in-compromise option. If you file an offer-in-compromise, you can offer to pay an amount that is lesser than what you actually owe your creditors. As you file your request with the IRS, they will check whether or not you are actually liable to pay off your tax debt. By opting for this debt repayment method, you can save your dollars and use it in paying off your other obligations.

Nothing can be worse than getting drowned in an ocean of tax debt. If you’re up to your eyeballs in IRS tax debt and you are looking for tax debt relief options, you can follow the points mentioned above. Pay off your taxes and lead a free of all debt obligations.

Jenney Roberts is a contributory writer of Debt Consolidation Care. She is a financial writer and has specialization in financial problems and its solutions. She holds her expertise in the Finance industry and has made significant contributions on debt consolidation, savings, planning, frugality, debt settlement etc.

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Tips To File Your Tax

The prevailing fiscal climate has put most small business on the brink of closure. This has been as a result of a myriad of reasons ranging from intense competition from stiff competition from big corporations to a rigid tax regime that is not friendly on small operators at all. It is important for owners of small businesses to actually learn how to reign in the tax cost so that their businesses stay afloat. There are several tax tips that these small business owners ought to incorporate into their operations if they are to have a chance of surviving the prevailing economic conditions. These tips will ensure that they are in good books with the IRS.

The first tip has to do with procrastination as concerns filing of taxes. You gain nothing by delaying tax filing. If anything, you are creating problems for yourself as well as your business. The year or prevailing conditions might be really bad, but the tax collector has to get his dues despite the tough conditions. Instead of dilly dallying and risking some serious fines or a closure, just sort everything out, compile them in an orderly way and then file the tax returns in time. Those who are prone to panic attacks should ensure that they do their filling in good time to avoid return attacks just because of something that could have been avoided altogether.

Avoid thinking too much about the tough economic situation and forge on. This can serve as a serious detractor which will only get you into trouble. Despite the tough times, you will still owe some money in form of taxes. Maximize on net refunds which are as a result of the net operating losses. You might be wondering, when will my tax refund be mailed? Get down to a qualified tax accountant as these refunds tend to be quite substantial and they can help you bridge the tax gap without much hustle. Consult with a qualified accountant as he is the one who is best placed to deal with these refunds. Start appreciating depreciation and identify things that you can take away from your business without hurting the business.

Section 179 of the federal law has provisions for depreciation deductions. There is fast depreciation costs which can be used to save dollars that otherwise would have gone to the taxman. The saved monies can be used for other activities within the business which will end up cushioning the business from further ravages by the economic storms out there.

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