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Rudimentary financial advice always recommends individuals and businesses alike to file taxes as soon as possible. Unfortunately, such advice fails in one key regard – how to exactly file taxes. Since this information is not conveyed accurately, many skip on their tax obligations. What they don’t know is that the IRS is keenly aware of such individuals, and is not afraid to employ recovery and penalization.
Accounting in Western Springs has always championed a deep focus on fast and accurate tax filing. However, such experts can also provide assistance in dealing with an existing tax problem. If you’ve received an IRS notice, or are expecting a difficult financial situation, it might be worth considering an accountant’s insight.
Here are the common tax problems, and how you can deal with them…
Non-Filed Tax Returns
Failing to file tax returns is a common problem that can lead to penalties, interest charges, and potential legal action from the IRS. It’s crucial to address this issue promptly to minimize financial repercussions. For starters, it’s essential to file them as soon as possible. An accounting expert can assist you in gathering necessary documentation, completing your tax returns accurately, and negotiating with the IRS to establish a payment plan if needed.
Back Taxes Owed
Owing back taxes is another common issue that can lead to financial strain and legal challenges. Unpaid taxes accumulate interest and penalties over time, making it increasingly difficult to resolve the debt. To address back taxes, start by determining the exact amount owed and reviewing your financial situation. Then, contact the IRS to discuss payment options. Working with an accounting expert can help you navigate the negotiation process and develop a realistic payment plan.
Payroll Tax Problems
An issue here can lead to severe penalties and legal action, as payroll taxes are considered trust fund taxes by the IRS. Firstly, this problem can be avoided entirely by ensuring accurate records of employee wages, tax withholdings, and deposits. Consider outsourcing payroll management to a professional accounting service to ensure compliance with tax laws. If you are already facing payroll tax issues, consult an accounting expert to develop a strategy for addressing the problem.
Bankruptcy
While some tax debts may be dischargeable in bankruptcy, others are not, and it’s essential to understand the implications of bankruptcy on your tax situation. Before filing for bankruptcy, consult with a tax professional or accountant to evaluate your tax liabilities and determine which debts may be dischargeable. Chapter 7 bankruptcy can eliminate certain tax debts, while Chapter 13 involves a repayment plan.
Innocent Spouse Relief
This relief can be essential for taxpayers who filed joint returns and discovered their spouse engaged in fraudulent or erroneous tax reporting. To qualify for innocent spouse relief, you must demonstrate that you were unaware of the inaccuracies on your joint tax return and that it would be unfair to hold you responsible for the resulting tax debt. An accounting expert can help you gather the necessary documentation, complete the application for relief, and present your case to the IRS.
Of course, one of the best solutions to a tax problem is: To not find yourself in such a problem in the first place. Ensure that you work with expert accountants from the get-go. This gives you access to some very sophisticated tax management strategies – not just filing in time but reducing tax obligations too! Having a good relationship with your taxes is the first step in building a secure financial future. So don’t wait. Reach out to an accounting expert today!
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