Top 7 Questions You Should ask Your Tax Resolution Specialist

For those looking to get tax relief from back taxes here are some things to know about tax problem resolution.

1) The first of many questions people ask is how long does it take to resolve their tax problems and get tax relief?

A: From the time we receive all of the appropriate documentation, a typical tax resolution case usually takes 3–4 months assuming the taxpayer is compliant and has filed all their tax returns. Some cases can take up to 9 months or more.

2) What documentation is needed for the tax resolution company to complete and resolve a tax problem?

A: A reliable tax resolution company would obtain the taxpayer's tax records, and also obtain the taxpayers financial statements to analyze the taxpayer's reasonable collection potential (RCP).

3) But what if the taxpayers does not have all the necessary paperwork to file unfiled tax returns, can tax resolution be performed?

A: Yes, a respected tax resolution company would be able to get your tax records such as W2's, 1099's, 1098's etc. The taxpayer should not worry about obtaining their lost tax documents.

4) Can I use my own tax preparer to resolve my tax problem?

A: From our experience, it is most beneficial and cost efficient for the taxpayer to retain a tax resolution specialist who is very familiar with and specialize in tax problem resolution and representation field. Don't compromise on your representation, it's your fundamental right to protect yourself and learn about all your tax relief options.

5) What about the cost of your service?

A: Simple, we resolve the taxpayer's tax problem based on a reasonable flat fee, no additional fees are incurred by the taxpayer. All fees are quoted to the client at their initial free consultation.

6) Another popular, and very important question is who will handle the taxpayer's case from start to finish?

A: Not all tax resolution companies like this question. Many companies out there will have you speak to "consultants", "assistants", "case managers", and so on. Your case is handled from start to finish by the principal of the firm, Mike Mead EA, CTC himself. Mike will be your power of attorney and represent you before all administrative levels of the IRS. 

7) Will tax resolution professionals be available to assist with an IRS audit?

A: Yes, a respected and licensed tax resolution specialist can represent you at an IRS audit. Mike Mead EA, CTC represents all his clients and to the client's surprise they do not have to be personally present at the audit.

Now that you have answers, who do you call for a free case analysis?

Contact Mike Mead EA, CTC at 816-220-2001.

Mike Mead focuses his tax practice on tax resolution services in all 50 states including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

WHAT IS CURRENTLY NOT COLLECTIBLE STATUS FROM THE IRS?

Big companies are known for getting all sorts of breaks, but when average people fall behind, they rarely receive help. When you owe back taxes, but can’t afford to pay them, then you may qualify for a special tax status known as currently not collectible. 

If you’re approved for currently not collectible status, then the IRS must not only cease its collection efforts but can no longer garnish your wages or seize your property. 

Want to know if you qualify for currently not collectible status? Contact our firm here for a specific evaluation of your situation. Contact us today. 

What is Currently Not Collectible Status? 

If the IRS agrees you can’t both pay your back taxes and cover your reasonable living expenses, it may place your account in Currently Not Collectible status. It’s based on your current financial situation. 

You can request currently not collectible status by submitting the proper form and proof to the IRS of your income and expenses, as well as whether you can sell any assets you may have or get a loan.

As you’ll need to be able to document your inability to pay, be sure to gather copies of all your bills, your most recent paycheck stubs, and statements detailing other sources of income such as alimony, pensions or investments. If the IRS determines that your necessary expenses exceed your income, then it will notify you of your Currently Not Collectible status

WARNING: Don’t try to do this alone. We recommend reaching out to our tax resolution firm to guide you through your options. Talking to the IRS directly could be like shooting yourself in the foot. They’ll ask you very invasive questions that could land you in deeper trouble. Remember, the IRS is not your friend. Their job is to collect what they believe you owe them, so it’s best to have a professional in your corner. 

Not a Permanent Solution

Keep in mind that currently not collectible status applies only to your back taxes. You will still have to file tax returns, and you will not be exempted from paying current and future taxes. You will also continue to accumulate penalties and interest on your unpaid taxes. After a year or two, the IRS may review your status, and if you’re able to begin paying your back taxes, then you must do so. If you’re still not able to pay, then your status will be renewed. 

Statute of Limitations   

The IRS can attempt to collect outstanding taxes for only 10 years from the date the taxes were assessed against you, usually that’s the date you filed.  If at the end of this 10-year period the IRS hasn’t collected, then the taxes are no longer owed. 

In difficult times, many families have trouble meeting their commitments. If you’re worried about the IRS garnishing your wages, levying your bank account or taking your home, then reaching out to our firm and getting a free, no-obligation, confidential consultation on your tax problem may give you some peace of mind. If you’re not approved for Currently Not Collectible status, our firm will explain the many other tax relief options with you. Contact us now.  Contact us today.

4 MISTAKES THAT YOU DON'T WANT TO MAKE WHEN FILING YOUR TAXES. (THEY COULD LAND YOU IN TAX TROUBLE)

It can be a stressful experience preparing your taxes and filing them. It can be even more stressful however, if you make these mistakes that land you into tax trouble. It's important to remember that if you make mistakes that are serious enough, you might end up triggering an audit of your tax return or owe more in back taxes.

It’s early to be talking about tax season, but if you're planning on filing your own taxes this year, here are four mistakes that you should avoid.

Don't neglect to report all your income

Whatever your sources of income may be, whether it's your regular paycheck, a side gig, gains that you've made on the stock market, or interest that you've earned from deposits in the bank, it's important to remember that you should account for all of it in your tax return. If you don't, the IRS may come looking for it.

Every time you make at least $600 in income working as an employee of any description, you get a 1099 form stating what you've made. The IRS gets a copy of the form, as well. This means that it makes no sense to try to hide your income from the IRS.

When you make any kind of income, you should report it on your tax return. Technically, you should even record smaller chunks of income, the kind for which you don't get 1099 forms.

Don't just guess at what your deductions are

There are many possible tax deductions that you could take advantage of. It's important to remember, however, that you do need to back up every attempt at a deduction with documentary proof like receipts or logs. If you attempt a rough estimate at what your deductions should be, you could trigger suspicion, especially if the sum that you claim is high for your income level, or if it is a convenient round figure.

Don't automatically reject the idea of itemizing

Most tax filers choose to take the standard deduction, rather than itemize. This doesn't mean that you shouldn't itemize. It depends on your specific circumstances. If you have many legitimate deductions to make, say, because, you pay a great deal of mortgage interest, you might be better off itemizing, even if it takes more work to do it.

Don't put off filing

Preparing your taxes is a complex process. If you're self-employed, or if you need to itemize, it can only get worse. It's important to not rush through the process. Any mistakes that you make may prove costly. Take out the time to file your taxes well ahead of the tax deadline. If you need extra time, you can always file for an extension. This way, you can avoid the late filing penalty, which can add up to a whopping 25% of the original tax amount

Making a mistake on your tax return is the last thing you want to do. Mistakes can be complicated to correct and recover from. It's important to give yourself enough time.

Whatever you do, don’t skip filing. Many clients come to us with not only years of unfiled tax returns but owing large sums of money to the IRS.  Many times we can help you obtain a “fresh start’ settlement for up to 85% off the original amount owed, including penalties and interest, if you qualify.

If you do run into tax trouble, reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem. Contact us today with your specific questions.  

IRS Expands ID Protection Program

IRS Expands ID Protection Program: An IP PIN is a six-digit number assigned to eligible taxpayers that helps prevent the misuse of their Social Security number on fraudulent federal inc

SETTLING TAX DEBT WITH AN IRS OFFER IN COMPROMISE

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer's tax liabilities for less than the full amount owed. That's the good news. The bad news is that not everyone is eligible to use this option to settle tax debt. In fact, nearly 60 percent of taxpayer requested offers in compromise were rejected by the IRS. If you owe money to the IRS and are wondering if an IRS offer in compromise is the answer, here's what you need to know.

Who is Eligible?

If you can't pay your full tax liability or doing so creates a financial hardship, an offer in compromise may be a legitimate option. However, it is not for everyone, and taxpayers should explore all other payment options before submitting an offer in compromise to the IRS. Taxpayers who can fully pay the liabilities through an installment agreement or other means, generally won't qualify for an OIC.

To qualify for an OIC, the taxpayer must have:

• Filed all tax returns.
• Made all required estimated tax payments for the current year.
• Made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.

IRS Acceptance Criteria

Whether your offer in compromise is accepted depends on a number of factors; however, typically, an offer in compromise is accepted when the amount offered represents the most the IRS can expect to collect within a reasonable period of time. This is referred to as the reasonable collection potential (RCP). In most cases, the IRS won't accept an OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (RCP), which is how the IRS measures the taxpayer's ability to pay.

The RCP is defined as the value that can be realized from the taxpayer's assets, such as real property, automobiles, bank accounts, and other property. In addition to property, the RCP also includes anticipated future income minus certain amounts allowed for basic living expenses.

The IRS may accept an OIC based on one of the following criteria:

Doubt as to liability. An OIC meets this criterion only when there's a genuine dispute as to the existence or amount of the correct tax debt under the law.

Doubt as to collectibility. This refers to whether there is doubt that the amount owed is fully collectible such as when the taxpayer's assets and income are less than the full amount of the tax liability.

Effective tax administration. This applies to cases where there is no doubt that the tax is legally owed and that the full amount owed can be collected but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.

Application and Fees

When requesting an OIC from the IRS, use Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals. If you are applying as a business, use Form 433-B (OIC), Collection Information Statement for Businesses. A taxpayer submitting an OIC based on doubt as to liability must file additional forms as well.

A nonrefundable application fee, as well as an initial payment (also nonrefundable), is due when submitting an OIC. If the OIC is based on doubt as to liability, no application fee is required, however.

If the taxpayer is an individual (not a corporation, partnership, or other entity) who meets Low-Income Certification guidelines they do not have to submit an application fee or initial payment and will not need to make monthly installments during the evaluation of an offer in compromise.

The initial payment is based on which payment option you choose for your offer in compromise:

• Lump Sum Cash. Submit an initial payment of 20 percent of the total offer amount with your application. If your offer is accepted, you will receive written confirmation. Any remaining balance due on the offer is paid in five or fewer payments.
• Periodic Payment. Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.

If the IRS rejects your OIC, you will be notified by mail. The letter will explain why the IRS rejected the offer and will provide detailed instructions on how to appeal the decision. An appeal must be made within 30 days from the date of the letter.

Questions?

If you have any questions about the IRS Offer in Compromise program, don't hesitate to contact the office for more information.

IRS problems will not go away by themselves

IRS Tax Problem Resolution

IRS problems will not go away by themselves. (The IRS never forgets.) You only have three choices to end your IRS nightmare:

- Pay the IRS 100% of what THEY think you owe today.
- Set up a monthly payment that almost never goes away because of the additional penalties and interest that continue to add up.
- Reduce the total amount you owe to an affordable number (with our help) and get on with the rest of your life.

We can help you explore all the choices and options, but you must take the first step. 

Call today to schedule a time to discuss your specific situation at 816-220-2001 or online at www.AFIT-Calendar.info

How can I Pay Less Tax?

Blue Springs Missouri Tax Planning

If you are like many people here in America, the amount of taxes you pay can be your single largest expense. We get taxed at many different levels including sales tax, excise tax, property tax, payroll tax, estate tax, local taxes, entity level taxes, state income tax, and federal income taxes. If you add them all up, it can be a very large amount of your earnings goes to pay these various kinds of taxes.

With proper tax planning you may be able to reduce your tax bill. This could mean big changes and opportunities in your future. Can you imagine what you would do with an extra $5,000 or even $50,000 per year?

Key steps

• Key Steps to lower your tax bill:
  • Remember that tax laws are not necessarily fair. All types are income are not taxed the same. Income from a business, investments, real estate can have less tax than wages.
  • Tax laws are always changing. In many cases, Congress tries to steer the economy with changing the tax laws from time to time. To pay the least amount of tax legally possible, it is important to have your tax situation reviewed by a pro-active tax professional.
  • Your Proactive tax Plan needs to fit your situation. What works for Bill Gates, Donald Trump and Warren Buffet, or others, will most likely will not work for you. Each situation is unique, and you need a plan that is custom fit for you.
  • Keep it legal. There are many different ways you can use to lower your tax burden legally. Your tax strategy needs to be able to withstand the scrutiny of an audit.
  • You need to act. The greatest tax strategy plan is of no value if it is not implemented. The sooner the tax reduction plan is started, the more savings can be realized.
• How do I get started?
  • Contact us and set up an appointment.
  • Provide us a copy of your prior year’s tax returns.
  • Provide us your current year’s profit projections.
  • Engage our firm to design a customized tax reduction plan for you.
  • Review the tax reduction plan with us and gain a basic understanding of it.
  • Implement the plan.
  • Enjoy the tax savings.