How Increased IRS Funding Will Affect Middle-, Low-Income Americans

Scott Curley, the CEO and co-founder of FinishLine Tax Solutions, believes the decision to increase funding for the IRS is at least partially related to rising inflation rates and increased government spending on assistance distributed during the pandemic.

“That created a situation for us,” Curley says. To pay for pandemic-related spending, he says the government had two choices: “Do we want to raise taxes more or do we want to go after the money owed to us already?” With the passage of additional funds for the IRS, Curley believes the government’s answer was the latter.

Scott Curley's commentary on this critical news was quoted thorughout this article on US News

Will IRS Audit More Middle-Class Americans?

A recent analysis by House Republicans estimates that individuals earning an annual income of $75,000 or less would face close to 711,000 additional IRS audits. In addition, Americans earning more than $1 million would receive more than 52,000 audits.

A March 2022 study by the Transactional Records Access Clearinghouse (TRAC) at Syracuse University discovered that low-income households making less than $25,000 are five times as likely to be audited by the IRS as everyone else.

“With this added force, I imagine it will be like the Wild Wild West. Taxpayers and small businesses should expect the IRS to be much more aggressive, by way of audits and other methods, in collecting tax money owed in the coming weeks, months, years,” Scott Curley, the CEO and co-founder of FinishLine Tax Solutions, told The Epoch Times.

Finishline Tax Solutions recognized by Inc. Magazine

HOUSTON, Aug. 16, 2022 /PRNewswire/ -- — FinishLine Tax Solutions, a national tax resolution firm that specializes in tax relief and tax preparation, announced today it ranked #1304 on Inc. Magazine's 2022 Inc. 5000, a prestigious list of the nation's fastest-growing private companies. Marking the company's inaugural appearance on the annual Inc. 5000, FinishLine Tax Solutions was also recognized as one of the top 100 fastest growing financial companies in the United States.  

Tax Evasion: What are the Consequences?

Tax Evasion, Fraud and the Statute of Limitations

The IRS necessitates that taxpayers provide accurate information about their incomes. It also requires them to submit correct financial documents and use the right social security number when filing returns.

Tax evasion refers to when you use illegal methods to avoid paying taxes. It also includes falsifying documents and failing to reveal some income so you can pay a lower amount.

Since tax evasion is a criminal offense, you may face severe consequences. Here we help you identify what happens if you commit this crime. We will also discuss some tips on avoiding the repercussions.

Tax Evasion Penalties

If you committed tax evasion, the IRS might impose a penalty of up to $250,000. This consequence may occur even if the government does not formally charge you.

The IRS treats failure to file your returns as tax evasion. This mistake attracts a fine ten times more than the one imposed for failure to pay.

The best way to avoid tax evasion penalties associated with failure to file is to submit your returns within 60 days after the deadline. This measure is critical even if you cannot clear the entire amount you owe.

Interests

If the IRS discovers that you did not remit some taxes and failed to include the amount in your returns, they will charge interest.

The IRS changes the rates each quarter. Often, it calculates the underpayment rate by adding 3% to the federal short-term rate. It then imposes interests from the first day after the filing deadline.

Criminal Charges

Evading taxes is a serious crime that can lead to prosecution in a federal court. If the judge finds you guilty, you may go to jail for up to 5 years. You might also have to pay a fine of up to $100,000.

Tax Liens

Another common consequence of tax evasion is a lien. This term refers to when the federal government imposes a legal claim on your property.

The IRS will send a Notice of Federal Lien before seizing your assets. They then put this information in public records to notify creditors. This issue can prevent you from using your property as security when obtaining loans.

When the IRS files a tax lien, they will only lift it when you pay the total amount you owe. This will include penalties, recording fees, and interests.

Still, they may release the lien under exceptional circumstances. An example is when you had a good reason for failing to submit the correct tax information.

Tax Levy

The IRS can impose tax levies on your financial assets due to evasion. Some resources you may lose are:

  • Retirement benefits
  • Social security payments
  • Salary and wages

The IRS may impose a levy release on other assets such as houses and cars. They will then sell the properties to recover the amount you owe.

How to Avoid the Consequences of Tax Evasion

The consequences of evading taxes can significantly affect your finances. You may also lose freedom and incur a lot of expenses.

Avoid these issues by paying all the amount you owe. If you aren't sure how much to remit, get tax resolution and preparation services.

Specialists can help you calculate the due amount and file back taxes. Such measures may prevent the IRS from charging you with tax evasion in case of an audit.

Other ways a resolution expert can help you avoid tax evasion consequences are:

Avoid Tax Evasion Consequences With FinishLine Tax Solutions

Consulting tax attorneys or CPAs can make it easy to avoid tax evasion consequences.

At FinishLine Tax solutions, we have experts that deal with tax evasion consequences. These will file your returns to ensure you submit the correct information. They can also offer legal guidance when the IRS sends a notice or seizes your property. Contact us now for a consultation.

Back Taxes Help: How to Set Up a Payment Plan With the IRS

Filing Back Taxes

Back taxes can drive you into significant debt due to penalties and accumulating interests. You may also lose your assets due to liens imposed by the IRS. Setting up a payment plan is the best way to avoid such consequences while organizing your finances.

The IRS allows taxpayers to pay their debt using various installment plans. It also offers tax forgiveness programs to reduce the burden of delinquent taxes.

Here, we discuss ways to set up a payment plan with the IRS. We will also cover some debt relief programs you can consider.

Apply Online

One way to set up a payment plan with the IRS is by applying online. Log in to your e-filing portal using your account ID. After that, complete Form 9465 (installment agreement request) and submit it.

This document will require you to provide details needed during payment plan processing. Such may include the amount you owe, your employer, and your bank information. It also provides a section inquiring about the amount you can afford and the date you want to remit the installments.

Contact the IRS by Phone

Another way to set up an installment plan is by calling the IRS. Use the number 800-829-1040 to apply for debt relief for personal taxes. On the other hand, if you need an installment plan for your business, use 800-829-4933.

The IRS may provide phone numbers on the bill or notice sent by mail. Contact this number if you do not want to fill out the payment plan form. The agent will then request some information and use it to request a payment plan on your behalf.

Apply by Mail

The method used to set up a payment plan by mail can vary. If you request a tax relief program while submitting your returns, attach Form 9465 to the front. However, send the document to the nearest IRS office if you mailed your tax return forms or filed them online.

Contact a Tax Resolution Expert

Working with a tax resolution expert is the best way to set up an installment plan with the IRS. Professionals can review your financial documents and help you file back taxes. They will also consider your income and expenses before recommending a suitable tax relief program.

When setting up a tax forgiveness plan with an expert's help, they will identify all the documents needed for the process. Afterward, they will guide you in filling out various forms or do it for you. The expert will then verify your application before submitting it to the IRS.

IRS Tax Payment Plans to Consider

 The IRS has several IRS fresh start programs to help you deal with back taxes. Such include:

The short-term installment plan is available if you owe a total amount of less than $100,000. When applying for this program, you won't pay a setup fee. Still, you will have to clear the total debt in 180 days or less.

If you owe the IRS less than $50k, you may qualify for a long-term installment plan. The setup fee is $31 when applying online and $107 when using other methods.

An IRS offer in compromise lets you pay less than what you owe. However, you must remit 20% of the debt when sending your application. If the IRS approves your request, you may clear the balance in installments.

An IRS hardship program stops all debt collection measures. Such may include imposing tax liens and freezing bank accounts. Still, the interest and penalties on the owed amount will continue accruing until you can pay.

Reach Out to FinishLine Tax Solutions to Set Up a Payment Plan

Getting tax relief services from expert tax relief companies ensures you opt for a program suitable for your financial capability. At FinishLine Tax Solutions, we provide reliable back taxes help.

Our CPAs and tax attorneys will offer all the guidance and assistance you need. They may also advise ways to manage debt and deal with a tax audit. Call us now for a consultation.

A Complete Guide to Tax Relief for Small Businesses

tax debt relief services

The IRS provides many tax relief opportunities for small businesses. Still, many owners do not know the deductions they can claim and end up paying significant taxes.

Learning about the relief options available for small enterprises can reduce your tax burden. Continue reading to discover the deductions you may leverage.

Insurance

One tax relief opportunity you can use is your insurance. The IRS allows business owners to deduct 100% of the cost of their health insurance. You can also subtract business continuance insurance when calculating taxes payable.

If you have insurance policies for your employees and assets, you may use them to claim a tax credit. Some policies the IRS recognizes in this category are:

  • Liability coverage
  • Malpractice insurance
  • Property insurance
  • Auto insurance
  • Workers’ compensation

If you run a small business with less than 50 employees, you may qualify for a 50% tax credit. This will be possible through the qualified small employer reimbursement arrangement (QSERA). This program allows you to refund employees for health insurance premiums if you do not have a group policy.

Inventory

If you run an inventory-based business, you may qualify for tax relief. Still, you must first determine the cost of goods sold. After that, deduct this amount from the profit to evaluate the net sales.

One expense that will qualify you for tax relief is the cost of raw materials. You can also deduct storage and direct labor costs for employees producing the goods.

Utilities

All utilities used by your small business qualify you for a tax credit. These include trash, water, electricity, internet, telephone, and mailing.

Keep proper records of these expenses to ensure you claim the right deductibles. Further, get professional tax preparation services to certify you include all utility bills and provide the required documentation.

Software Fees

Another way to reduce your small business’ tax burden is by deducting various fees associated with software solutions. These may include the initial installation and purchase costs. You can also add subscription and scheduled maintenance fees.

Business Entertainment

If your small business entertains clients, you can reduce the tax liability. However, the IRS will only allow claiming 50% of the total cost as a deductible.

Many small business owners provide meals and drinks for their employees. Others host office parties to celebrate achievements.

If you incur expenses on such entertainment costs, you should note they are 100% deductible from owed taxes. Still, you must prove the fees were business-related and provide receipts.

Business Travel

Business travel is another tax relief opportunity many small business owners miss. The IRS allows you to lower taxes owned by deducting various travel expenses. Such relate to taxis, accommodation, tolls, and airfare.

Before qualifying for deductions under business travel, you must prove the trip was outside the region you run the company. Further, the journey must last longer than a full business day.

Bad Debt

If you lent money and did not receive it back, you can claim it as a deductible when filing business taxes. A tax resolution expert can help you prove bad debt with the proper documents. They will also calculate the taxable income by deducting the debt and other associated transaction costs.

Some aspects the IRS may consider bad debt are:

  • Business loan guarantees
  • credit sales
  • Money lent to employees or distributors

Why You Should Get Professional Tax Relief Services

The IRS provides many tax relief opportunities to small business owners. Due to this, it may be challenging to identify some and ensure you deduct them from the taxable revenue.

A tax relief companies/expert understands the laws governing small businesses. With their help, you can quickly identify the deductions you qualify for and claim them.

Get Tax Relief Services at FinishLine Tax Solutions

At FinishLine Tax Solutions, we can help reduce tax reliability. Our CPAs will review your small business’ financial records to identify deductibles. They can also file back taxes and provide IRS tax audit representation. Call us now for assistance.