Resolving IRS and State Tax Issues
It’s not uncommon for a business to do their own bookkeeping, and tax issues are why it’s never recommended. Even a small business can get caught up in many tax issues. Fortunately, resolving IRS and state tax issues is possible with an accountant. Learn more below and contact us today.
The tax notice is not like a credit card bill that you can ignore. If you don’t acknowledge the tax notice, you’ll be audited. Once it’s gotten that far, you can expect that almost certainly. The next action is worse, and that’s the tax levy. This can leave you with a closing business and frozen bank accounts.
The IRS and state governments can continue their attempt to resolve a tax notice. This includes seizing property and other assets. Avoid this with an accountant that can assure your taxes are filed and prepared correctly.
Your Tax Bill Is Probably Inaccurate
Double-check your tax bill with an accountant before paying it. If you find proof that you owe less or nothing at all, your accountant can assist with resolving the matter.
If you know how much you should owe and pay it, you’ll have a better chance of resolving the tax issue. Keep in mind that resolution can only happen when it’s based on probable cause. If there were any illegal movements, then the resolution may not happen.
Many business owners are unaware that they can pay in installments. This causes a sigh of relief when they are told this is an option. We want to tip you off to something important. Since you know they may offer this, it’s prudent that you secure a tax professional. They can help lower the monthly payments to something that you can afford. They do this by working with the laws that can protect you and your family from financial hardship.
Use the Offer In Compromise
This is the last negotiation tool, but there are strict stipulations. If the IRS offers you a settlement, and it exceeds your ability to pay, then they will use calculation tool 433-B to resolve the issue. The ability to pay is not by your word but must verify within a set formula.
As a business owner, it’s not only a prudent move to secure a tax accountant but it is cost-efficient. How? Because most people don’t understand what the IRS and state can do.
There’s a two-fold effect that is in your favor when you retain an accountant. First, you can avoid the tax issues in the first place and second: You can negotiate better terms with the agency when something unforeseen comes along. Be honest with your accountant and form a relationship so you won’t have to worry about the unforeseen because they will see it and address it for you. Business owners can call Ash Wasilidas, CPA. He has well over 20 years of experience assisting companies of various sizes. Call (617) 462-6651 or book a consultation online.