by Renee Lawson | Nov 28, 2023 | Tax Resolution
Taxation, while a civic duty that keeps our country running, can sometimes become a hefty burden for individuals and businesses, especially during challenging economic times.
Fortunately, the tax code provides several forms of tax relief to help people who might find themselves unable to pay the IRS. Understanding the different forms of tax relief and the qualification criteria can empower taxpayers to take control of their financial obligations to the IRS and seek the necessary assistance.
This article explores the tax relief options available and who can qualify. If the IRS is claiming you owe $10,000 or more, contact our firm immediately for a consultation and learn about your tax debt relief options www.actiontaxrelief.com.
Installment Agreements:
An installment agreement allows taxpayers to pay their tax debts in manageable monthly installments. This is particularly beneficial for those who can’t pay their taxes in a lump sum.
Offer in Compromise (OIC):
An OIC is a provision that enables taxpayers to settle their tax debt for less than the full amount owed, provided they meet certain eligibility criteria. This form of relief is ideal for individuals facing financial hardship. Not everyone qualifies, but if you do, this can help you settle with the IRS for a fraction of what you originally owed. Reach out to our firm to see if you qualify.
Penalty Abatement:
Penalties for unpaid taxes are hefty and often sink the taxpayer in deeper debt. That’s why a penalty abatement can provide substantial relief by waiving certain penalties accrued on a tax debt. Individuals may qualify for penalty abatement if they have a reasonable cause for not complying with tax obligations, such as facing a serious illness or a natural disaster.
Innocent Spouse Relief:
Taxpayers who filed joint returns and were unaware of their spouse’s erroneous or fraudulent tax reporting may qualify for innocent spouse relief. This provision can shield individuals from being held responsible for the tax liabilities arising from their spouse’s actions.
Currently Not Collectible (CNC) Status:
The CNC status temporarily halts IRS collection activities for individuals facing financial hardship. To qualify, taxpayers must prove that paying the tax debt would result in severe financial hardship.
Understanding your eligibility for these tax relief options can be the first step towards alleviating your tax burden.
It’s advisable to consult with tax relief professionals who can provide personalized advice based on your unique financial situation. If you’re facing a daunting tax bill or dealing with IRS issues, reaching out to a tax relief professional like us can provide clarity and help you navigate the complex tax landscape towards a resolution. If you owe over $10,000 to the IRS, or have unfiled tax returns give us a call (phone number) for a free, no-obligation consultation to see which of the above programs you qualify for www.actiontaxrelief.com.
by Renee Lawson | Jul 17, 2023 | Tax Preparation, Tax Resolution
Proper tax planning is a crucial aspect of financial management that should be addressed throughout the year. Waiting until April to assess your tax liability is a risky move. To ensure you keep more money in your pocket, it’s essential to be aware of factors that can unexpectedly raise your taxes. Today we will explore five key factors that could potentially increase your tax owed at the end of the year. By being proactive and considering these factors, you can better plan your finances and mitigate tax surprises.
Factor #1 – Cashing in Your Retirement Plan:
Early withdrawal from your retirement plan, such as a 401(k), can lead to significant tax penalties. If you opt to receive the proceeds in cash instead of rolling them over into an Individual Retirement Account (IRA), you will be required to pay taxes on the withdrawn amount. Additionally, a 10 percent penalty may apply. By avoiding these pitfalls, you can safeguard a substantial portion of your hard-earned retirement savings.
Factor #2 – Working as a Freelancer:
While freelancing offers independence and flexibility, it can also introduce complex tax implications. Freelancers and self-employed individuals are subject to the self-employment tax, which includes both the employer and employee shares of Medicare and Social Security taxes. Failing to account for this tax burden and set aside funds accordingly can lead to unpleasant surprises come tax season.
Factor #3 – Failing to Take Your Required Minimum Distribution (RMD):
Retirement accounts, such as IRAs and workplace plans, require individuals to begin withdrawing minimum distributions once they turn 70. Failing to meet this requirement can result in substantial tax penalties. It is crucial to stay informed about RMD rules and ensure compliance to avoid unnecessary financial setbacks.
Factor #4 – Skipping Your IRA Contribution:
Opting to skip your annual IRA contribution can have unforeseen consequences for your tax bill. Before deciding to forgo contributing to your IRA, it is prudent to evaluate the potential impact on your overall tax liability. Running the numbers and seeking professional advice can help you make an informed decision.
Factor #5 – Paying Off Your Mortgage:
While paying off your mortgage may provide a sense of financial freedom, it can affect your tax situation. Mortgage interest is typically tax-deductible if you itemize your deductions. Losing this deduction could potentially increase your tax liability. While this shouldn’t be the sole reason to keep a mortgage, it’s an important consideration to keep in mind.
Seek Professional Assistance for Tax Debt Cases:
If you find yourself owing back taxes, it is crucial to seek professional assistance to navigate the complexities of tax debt resolution. Our firm specializes in helping individuals negotiate with the IRS and we can potentially settle tax debts for a fraction of the amount owed. Contact us
today for a confidential consultation, and let our experienced tax resolution specialists guide you through the IRS maze, providing you with peace of mind.
Year-round tax planning is essential to minimize surprises and optimize your financial well-being. By being aware of factors that can unexpectedly raise your taxes, such as early retirement plan withdrawals, self-employment tax obligations, missed required minimum distributions, skipped IRA contributions, and the impact of mortgage payoff, you can take proactive steps to manage your tax liability effectively.
Remember, hiring a tax resolution specialist for IRS problems is crucial for protecting your hard-earned income and assets. Let us help you take back control of your financial lfe by reaching out to our firm today at www.actiontaxrelief.com.
by Renee Lawson | Mar 24, 2020 | Tax Preparation
This afternoon the State of Ohio issued a Stay at Home Order that will go into effect at 11:59 p.m. March 23, 2020 and remain until 11:59 p.m. April 6, 2020. This order identifies businesses that are essential and therefore exempt from this order. Liberty Accounting Plus is designated as an essential business and will remain open.
In an effort to keep staff and our clients safe we ask that whenever possible that you submit your documents electronically. Our office will follow both local, state and CDC recommendations and guidelines during this time of fighting the Coronavirus (Covid-19)
Please contact our office with any questions at 937-268-9004.
by Renee Lawson | Jan 24, 2019 | Tax Preparation
2018 Tax Season
The IRS has announced that the start of the 2019 filing season will start accepting business tax returns on January 8, 2019. “WASHINGTON — Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.” The Trump Administration has stated that the IRS will issue out refunds during the current governmental shut down. Normally the IRS does not issue income tax refunds during a government shut down.
IRS Confirms Tax Filing Season To Begin January 28
The implementation of the federal tax overhaul could further complicate matters for taxpayers we look forward to helping you navigate through these changes. With the 2018 tax year being the first to be subject to the Tax Cuts and Jobs Act (TCJA), which brought sweeping changes to the tax code, as well as new tax forms. Various TCJA implementation activities, such as the development of new publications and instructions, will continue because they’re funded by earlier appropriations legislation. Until the shut down is over taxpayers will not be able to reach a live customer service representative from the IRS.
The income tax filing deadline will be April 15, 2019. The states of Maine and Massachusetts will have a filing deadline date of April 17, 2019. If you have any questions about filing your income tax returns please give us a call.
Your Tax Coach,
Renee Lawson
by Renee Lawson | Jan 24, 2019 | Tax Preparation
2017 Tax Season Start Date
IRS has announced that the 2017 tax season for individuals will start on Monday, January 29,2018. You can
get your taxes prepared now and the IRS will start accepting tax returns on January 29th.
“The IRS set the Jan. 29 opening date to ensure the security and readiness of key tax processing systems in
advance of the opening and to assess the potential impact of tax legislation on 2017 tax returns.”
Source IRS – 2018 Tax Filing Season
Business tax returns (1120, 1120S, 1065, 1041, 990) can be e-filed on January 9, 2018.
We look forward to preparing your tax returns in this new tax filing season.
Your Tax and Accounting Coach,
Renee Lawson
