What You Need to Know Before you Hire a Tax Debt Relief Expert

TAX SETTLEMENT – FIND OUT IF YOU ARE ELIGIBLE

Hiring a tax debt relief expert is the best way to deal with the IRS and identify a suitable installment payment program. Since many companies offer debt relief services, it may be tough to pick the right expert.

Researching beforehand and understanding the role of tax relief professionals can guide you in the selection process. It also prevents losing your money to scams and incurring significant debt.

Are you wondering about the things you should know before hiring an expert to help you deal with back taxes? Read on for factors to consider before selecting a tax resolution professional.  

If the Expert Has a License

One key factor to consider before hiring a tax debt relief expert is if they have a license. A suitable professional should be an IRS Enrolled Agent. This certification means they have the authority to represent taxpayers to the IRS.

While Enrolled Agents have the highest certification to deal with tax debt, you can consult other licensed professionals. For instance, you may work with CPAs and tax attorneys to assess the delinquent taxes you owe. Such professionals can also help you negotiate a fair repayment plan.

The Experience the Tax Debt Relief Expert Has

A tax professional with extensive experience in dealing with the IRS is more likely to help you navigate debt. Before hiring a particular expert, determine the years they represented taxpayers. After that, evaluate if they handled similar cases in the past.

Working with a tax expert with more experience can give you peace of mind. Besides, the professional may help you avoid significant penalties by assessing your case quickly and applying for a suitable relief program.

The Cost of Their Services

Tax debt relief experts charge clients varying amounts based on the nature of the case and the needed work hours.

Before picking a specific professional, evaluate your options by requesting consultations. The specialists can provide a cost estimate by assessing the time and resources required for the case.

Knowing how much a tax debt relief expert will charge for their services can help you weigh your options. Additionally, you will avoid exorbitant rates that may further affect your financial situation.

The Success Rate of Their Cases

Hiring a tax debt relief expert does not guarantee desirable results. Still, a suitable professional should have more wins than losses.

Opting for a high success rate specialist can give you confidence since they will exhaust all legal methods when negotiating with the IRS. Such an expert will also assess your case critically to ensure they only apply for the proper debt relief programs.

The Availability of the Tax Professional

Tax resolution may involve regular communication with the IRS. You may also need to attend negotiations and other sessions like IRS financial audits.

Before hiring a tax expert, determine their availability for such meetings. An expert with an organized work schedule will effectively handle your case to prevent postponing. They will also help you avoid penalties and fines by ensuring you respond to notice letters before the deadlines.

The Services the Tax Debt Expert Offers

When dealing with tax debt, you may need other services like filing back taxes and audit representation. Before hiring a resolution expert, determine if they offer all the required services.

This way, you can avoid consulting several companies and wasting resources. Working with one specialist will also streamline debt resolution and lower stress.

Hire a Debt Relief Expert From FinishLine Tax Solutions

Considering the discussed factors before hiring a resolution expert can ensure you get quality services. At FinishLine Tax Solutions, we have a team of enrolled agents, attorneys, and CPAs to help you deal with the IRS. All our specialists have a license and understand tax laws comprehensively. Contact FinishLine Tax Solutions today to learn more about our services and charges.

The Ultimate Tax Help Guide: Comprehensive Resource for Tax Debt Questions

 

Dealing with tax debt can be complicated since the IRS has different policies for each situation. As a result, you may need more information regarding dealing with tax debt and avoiding collection measures. Here, we help you understand various tax debt topics by answering some frequently asked questions (FAQs).

IRS Debt Forgiveness

Paying tax debt in a single transaction can be challenging and affect your financial situation. If you are looking for an effective way to avoid penalties accumulation and financial strain, consider IRS debt forgiveness. Some common questions on the topic are:

Does the IRS Really Forgive Tax Debt?

The IRS can forgive tax debt under certain circumstances. For example, if you cannot pay the penalties and amount you owe due to severe financial challenges, the IRS may waive the debt.

However, they will only write the debt off if it exceeds ten years from when they conducted an assessment.

How Do I Get My Tax Debt Forgiven?

The IRS rarely forgives the total debt amount unless they enact the 10-year rule. Applying for a tax forgiveness program is the best way to get the IRS to write off some debt.

A plan such as an Offer in Compromise will allow you to repay an amount lower than the total debt. It also stops the IRS from seizing your assets or freezing your accounts

Does IRS Forgive Tax Debt After 10 Years?

Yes. The IRS can forgive tax debt that exceeds ten years if you cannot pay. This duration may extend since they will count from the last date of your tax assessment. Besides, some agreements, such as an installment payment, may include signing a waiver that allows the IRS to extend the duration.

Who Qualifies for One-Time Forgiveness?

Taxpayers who do not have recent debt or tax filing mistakes can qualify for the one-time forgiveness program. The IRS will check if you correctly filed your returns when you apply for this plan. They will also confirm if they charged penalties and fines for the previous filing period.

If you meet such requirements, the IRS will use other eligibility criteria to determine if you qualify for one-time forgiveness. Some aspects that may make you eligible are:

  • Failing to meet your tax responsibility due to factors beyond your control
  • Making tax mistakes due to advice offered by IRS officials
  • Filing and paying returns correctly for the last three years

How Likely Is the IRS to Accept an Offer in Compromise?

The IRS rarely accepts Offer in Compromise applications. You will only qualify for this program if there is a dispute regarding the tax debt based on the law. You may also be eligible if there is no doubt of liability, but the IRS is not sure they may recover the total amount you owe.

The last aspect that may qualify you for an OIC is if requiring you to repay the entire debt will lead to further economic hardship.

What Is the IRS Hardship Program?

The IRS hardship program is a plan to help taxpayers facing extreme financial problems. You will be eligible if you cannot meet basic living expenses after paying your tax debt.

If you qualify for this plan, the IRS will require you to remit a given amount each month and stop collection measures

Does the IRS Have an Amnesty Program?

Yes. The IRS has amnesty programs to forgive non-willful taxpayers. If you qualify for such a plan, the IRS may reduce or remove all penalties imposed on your tax debt. Still, you must repay all delinquent taxes related to the domestic or foreign income you did not report.

What is IRS Fresh Start Program?

The IRS Fresh Start program refers to several options offered by the IRS to enable taxpayers to clear their debts conveniently. These include:

  • An Offer in Compromise
  • An installment agreement
  • Penalty abatement
  • Currently not collectible

Each plan under the IRS Fresh start program has its eligibility requirements. Hence, you should always learn more about them and consult an expert to identify the most suitable option.

Dealing With the IRS

If you owe the IRS, you may have to email them and provide various documents. You may also need to meet with the officials to assess your tax documents and determine eligibility for relief programs. Here are some inquiries you may have on dealing with the IRS.

What Should You Do if You Owe the IRS a Lot of Money?

 If you owe the IRS a lot of money, you should set up a payment agreement. Such will help you repay the debt slowly based on your financial situation. It also protects your properties and prevents debt accumulation.

Another way to deal with significant IRS debt is by requesting a short deadline extension. This step will be suitable if you can pay but must wait for a transaction to mature.

Can I Negotiate With the IRS on Back Taxes?

Yes. You can negotiate with the IRS for favorable payment terms on your back taxes. However, you should reach out to them before the deadline provided in a notice letter.

 Further, prepare all the documents and information you need for the meeting. It is also vital to understand the benefits and requirements of each debt relief program.

Can I Negotiate With the IRS Without a Lawyer?

You may negotiate payment terms with the IRS without a lawyer. However, consulting an attorney can help you settle for the most suitable tax relief option. Besides, it ensures you present all the information the IRS may need for specific programs.

Are Tax Attorneys Worth It?

Yes. Tax attorneys understand all IRS policies and state laws. Besides, they know the criteria the IRS uses to determine if an applicant is eligible for a specific tax relief plan. With their assistance, you may qualify for better repayment deals and save money.

IRS Audit Representation

An IRS audit involves reviewing your tax documents to determine if you provided the correct information. This process is often stressful for many, especially if you are unsure about the issues that triggered it.

Do You Need Representation for IRS Audit?

It is not compulsory to get legal representation during an IRS audit. However, consulting a lawyer or CPA agent can simplify the process and improve outcomes in various ways.

For example, the tax professional will organize the needed document before the audit date. Further, they will handle all communications with the IRS so you can focus on your life or business.

What Happens if I Miss the Mail Audit Response Deadline?

If you do not respond to an audit notice in time, you have 90 days to request the IRS for a reconsideration. Failure to do this will lead to penalties and other tax debt collection measures.

Always respond to the letter mailed by the IRS on time. Further, consult a tax professional to ensure your response contains the needed details.

What Happens if I Ignore an Audit?

Ignoring a tax audit has many adverse effects. For example, the IRS will impose significant penalties and interest on the amount you owe. You may also lose the opportunity to negotiate and appeal payment terms.

What Will Trigger an IRS Audit?

One aspect that may trigger an IRS audit is significant income disparities. The IRS may also request this process if your tax forms have some inconsistencies. More issues that may lead to an IRS audit are:

  • Home office deductions
  • Filing a Schedule C
  • Incomplete tax returns
  • Failure to report all your income

What Should You Not Do in an Audit?

Making some mistakes with the IRS can lead to legal actions and penalties. Avoid submitting false documents or lying to the auditor.

Further, do not make unnecessary remarks since they may land you in trouble and cause the IRS representative to expand the audit. Other mistakes to avoid during an audit are submitting original documents and making rude remarks or responses.

IRS Penalties on Tax Debts

The IRS imposes penalties and fines on the amount you owe. Some common questions regarding this topic are:

What Is the IRS Underpayment Penalty?

The IRS charges an underpayment penalty of 0.5% on underpaid taxes. They will impose this charge each month or part of the month you do not clear the debt. Still, the penalty cannot exceed 25% of the delinquent taxes.

How Do I Get the IRS to Remove Penalties and Interest?

Applying for penalty abatement is the best way to get the IRS to remove interests. You might qualify for this tax debt relief program if you paid all the taxes you owe or set up a payment plan.

The IRS may also approve a penalty abatement application if you requested a deadline extension or did not previously have to file returns.

What if I Owe More Than $10000 in Taxes?

If you owe the IRS more than $10,000 in taxes, they will impose penalties and fines. Avoid such charges by applying for a tax relief program. The IRS offers installment plans which allow you to clear the debt in up to 72 months.

What Happens if You Owe the IRS More Than $25000?

If you owe the IRS more than $25,000 but less than $50,000, you may qualify for the installment agreement program. However, if the debt, including interest, is more than $50,000, you may need to apply for special programs allowing you to pay the amount in 84 months or more.

IRS Tax Debt Collection Measures

The IRS uses various measures to recover delinquent taxes and penalties. Here are some FAQs on the matter.

Can the IRS Take Money From My Bank Account Without Notice?

No. The IRS cannot levy your bank account without sending a notice. This rule allows you to dispute the collection measure if you do not owe the amount indicated in the letter. It also gives you more time to negotiate a repayment plan.

Can IRS Take Your Car?

Levy permits allow the IRS to take and sell your car if you do not actively try to clear your debt. They can also seize other assets such as your property and land.

Can You Collect Social Security if You Owe the IRS Money?

You may collect social security benefits if you owe the IRS. However, if you do not have a repayment plan, they may deduct up to 15% from your monthly cheques until you clear the delinquent taxes.

How Far Back Does the IRS Go For Unfiled Taxes?

The IRS often requires taxpayers to file all the returns for the past six years. Still, they can assess tax deficiency beyond this time in exceptional cases.

What Is the IRS 6-Year Rule?

The IRS 6-year rule allows you to pay living expenses beyond the collection financial standards. If you do not qualify for a streamlined agreement, you can still make a minimum payment for your tax debt, provided you pay the entire amount in 6 years.

Contact FinishLine Tax Solutions for More Information

Getting answers to tax debt questions can help you determine the measures to take if you owe the IRS. It also allows you to leverage relief programs offered by the IRS.

At FinishLine Tax Solutions, we can answer all your questions on delinquent taxes. Our legal team will also represent you during audits and negotiations. Contact us today for an inquiry.

Dealing With Tax Debt: How to Set Things Right With the IRS

Back Taxes and money on the green surface.

Remitting all the taxes you owe can be challenging, especially when facing financial problems. If you owe the IRS, it is vital to act promptly to avoid penalties and significant debt. This step can also prevent tax liens and stop the IRS from using harsh debt collection measures like seizing your assets.

Are you wondering about the best ways to deal with tax debt and protect your finances? Read on for tips on setting things right with the IRS and the benefits of working with a professional if you have delinquent taxes.

1. Ask for a Deadline Extension

Sometimes, you may fail to remit taxes due to delays. For example, you might be waiting for an investment to mature and use the funds to pay what you owe.

If you will likely get the funds to clear tax debt soon, it is advisable to ask for a deadline extension. While the IRS will not charge any fees for the process, they will impose a 0.5% monthly penalty on balance.

Requesting a short deadline extension will help you avoid paying fees associated with other tax relief programs. Besides, it gives you more time to get your finances in order and repay the total amount.

2. Apply for Installment Payment

If you cannot pay the taxes you owe in full, you should apply for debt relief. The IRS provides an installment agreement program to help taxpayers pay the amount they owe over an extended period.

Still, you must meet the eligibility criteria, including filing back taxes. Besides, your debt should be less than $50,000 but more than $10,00, including fines and penalties.

When the IRS accepts your application, they will require you to send a given amount each month for an agreed period. For example, if you choose a short-term installment plan, you will clear the debt within 120 days. On the other hand, the IRS will require you to pay delinquent taxes within 72 months with a long-term plan.

Enrolling in an IRS installment agreement program will help you avoid accruing penalties and fines. Further, you get more time to organize your finances and pay the debt without worrying about collection measures.

3. Do Not Ignore the Matter

While you may not be in a financial position to pay taxes, ignoring the issue will only worsen it. File your returns on time to avoid penalties associated with failing to submit your forms. Further, determine the most suitable repayment program and send your application within the deadline provided by the IRS.

If the IRS sends a notice or contacts you regarding tax debt, you should respond promptly. This measure will help you set things right and avoid consequences like:

  • Property seizure
  • Ruined creditworthiness
  • Imprisonment
  • Bank levies
  • Wage garnishment

4. Contact a Tax Resolution Expert

Dealing with tax debt may be confusing without professional help. Set things right with the IRS by consulting a resolution expert near you. These will assess your situation and determine the best way to deal with accrued debt. Besides, they can identify the most suitable debt relief program and help you apply.

Another way a tax resolution professional may assist is by filing back taxes and determining the total amount you owe. They will then develop a tax relief plan and meet with IRS officials on your behalf.

If the IRS seized assets and imposed a bank or property lien, you cannot use the funds to finance debt. A tax resolution professional will help you negotiate a lien release. Further, they will ensure you only apply for a debt relief program that will not cause more financial challenges.

Contact FinishLine Tax Solutions to Set Things Right With IRS

Setting things right with the IRS can protect your reputation and lessen financial problems. At FinishLine Tax solutions, we will help you deal with debt using an ideal repayment plan. Our professionals can also determine the debt relief plan you qualify for and present the required forms. Contact us now to lower the effects of unpaid taxes.

5 Top reasons Why IRS Will Audit You

The IRS conducts tax audits to review the details provided by taxpayers. This procedure involves revising your accounts and financial documents to verify that you provided the correct information. The IRS may also send a representative to your business for a face-to-face examination.

Since an IRS audit can lead to business closure and penalties, you should avoid it. Here, we discuss five main reasons the IRS may request this procedure. We will also cover how professional tax preparation and legal representation can help you deal with audits.

1. Incorrect Data

Providing incorrect figures is a significant reason why the IRS audits taxpayers. Such an issue may occur when you truncate decimals leading to calculation differences. It may also happen when you enter a number wrongly or miss some figures, especially zeros.

Another data issue that may lead to an IRS audit is providing the wrong social security number. This mistake often occurs when transferring figures from other documents.

Filing your returns online can avoid data mistakes and IRS audits. This method allows you to upload some information from your W2 forms. Hence, you can easily avoid typing and calculation errors.

2. Many Charitable Donations

Charitable donations qualify you for discounts on the taxes you owe. The IRS will counter-check your forms to determine eligibility if you claim such deductions. They may then request an audit if your income and the donations made in a particular duration do not match.

Avoid IRS audits related to charitable donations by providing the correct information. Further, ensure you have all the documents to prove transactions before claiming deductions.

3. Unreported Income

It may be tempting to eliminate some income when filing taxes. Unfortunately, such an issue will lead to an audit since the IRS receives income reports from your employers.

Before filing federal and state taxes, calculate the total amount earned from various sources. These include:

  • Self-employment
  • Alimony
  • Employment bonuses

If you are a business owner, your revenue may differ annually based on performance. Always confirm the income difference with the previous years to avoid raising suspicion and prevent unnecessary IRS audits.

4. Significant Business Expenses

Reporting significant business expenses is another reason the IRS may audit you. For instance, if you indicate that you spent more than three-quarters of your earnings on operation costs, the IRS may need to confirm this information.

Track business expenses and transactions to ensure you have accurate figures when filing taxes. Besides, confirm all provided details before submitting your return forms. These measures will help you avoid costly mistakes and prevent business closure during an audit.

5. Including a Home Office Deduction

If you use some parts of your home exclusively for business purposes, you may qualify for a home office deduction. However, you may not be eligible if you do not work from home often and use the rooms for other activities.

Since some taxpayers may claim home office deductions to reduce the tax owed, the IRS often flags such cases. As a result, they may audit your records to determine if you have business premises. This step also allows them to assess if the measurements you provided for your working spaces are credible and quality for a deduction.

How Legal Representation Can Help With an IRS Audit

Dealing with an IRS audit can be tricky without professional help. Getting legal audit representation allows you to avoid the stress associated with the process. An expert will help you prepare all the documents the IRS needs to verify your tax information.

 More ways the specialist may assist are:

  • Communicating with the IRS
  • Representing you during meetings
  • Filing for an audit reconsideration

Contact FinishLine Tax Solutions for Audit Representation

Dealing with an IRS tax audit can be confusing, mainly if the issues stem from an error. At FinishLine Tax Solutions, we will represent you during this process. Our professionals will also offer legal guidance and recommend ways to avoid an audit in the future. Call us today for audit representation.

Owe the IRS $10K+?: See if you qualify for IRS Tax Forgiveness Program

Your debt may increase rapidly due to penalties and fines when you owe delinquent taxes. The IRS can also take measures like imposing tax liens on your property, requesting a financial audit, or freezing your assets to recover the amount due.

Applying to a tax forgiveness program allows you to repay your debt over a specified duration. Here, we discuss some options you can use to repay your debt if you owe $10,000 or more and their eligibility criteria.

A Short Term Installment Agreement

One option you can use to clear a $10k+ IRS debt is a short-term installment plan. This agreement allows you to pay the debt within 180 days or less. For you to qualify for a short-term installment plan, your debt must be less than $100,000, including penalties, interests, and fines.

A Long-Term Installment Agreement

A long-term installment agreement is suitable if your total debt is less than $50,000. When you qualify for this IRS Fresh start program, you must repay what you owe within 72 months. In most cases, the installments you remit each month will depend on your debt amount and financial capability.

Offer in Compromise

An offer in compromise (OIC) is an IRS tax debt relief program that allows you to repay a lower amount. To qualify for this plan, you must file past returns and deposit the estimated tax requirement for the current year. If you are a business owner, the IRS will also require you to make all federal tax deposits.

Once you qualify for an offer in compromise, the IRS will determine the amount you can pay based on your financial situation. They will then require you to make specific monthly deposits to clear your debt.

Another IRS tax resolution option under the offer in compromise program is lump sum cash. This plan involves making a 20% deposit of the offer amount when sending your OIC application. If the IRS accepts your request, you will clear the remaining balance in five or fewer installments.

Currently Not Collectible (CNC)

Financial hardships can make it tough to clear your tax debt. Luckily, the IRS provides a currently not collectible plan to stop collection measures until your situation changes.

Before you qualify for this plan, you must prove that paying the debt will cause significant financial hardships. The IRS will then conduct period reviews to assess your situation and require you to start installment payment if your status improves.

Penalty Abatement

Penalty abatement is an IRS tax debt relief program involving a penalty reduction or removal. When applying for this plan, you must provide a reasonable cause for failing to meet your tax obligations. Some aspects that will qualify you for a penalty abatement are:

  • A natural disaster that destroyed vital personal documents
  • Severe illness or death of your immediate family
  • Inability to get records needed for tax preparation

How to Apply to the IRS Fresh Start Program

The forms needed when applying to a Fresh Start program will depend on the selected repayment plan. Consult a tax resolution expert to determine the most suitable option depending on your debt and ability to pay. After that, gather the needed documents and submit them alongside your IRS tax debt relief application.

You may need to deposit a certain fee when sending a Fresh Start application. A tax resolution expert will help you determine the charges for each program. They can also recommend applying online or via mail based on your preferences.

Determine If You Qualify for a Tax Forgiveness Program

Navigating IRS tax resolution can be challenging without help. At Finishline Tax Solutions, we have a team of CPAs and attorneys who can help you determine eligibility for the Fresh start program. They will then file your taxes and ensure you apply for an appropriate repayment plan. Call us today to schedule a consultation.

Fast Track Settlement (FTS) for your Business

FLTS-Form-14017

The Fast Track Settlement (FTS) is designed to help small businesses and self-employed individuals who are under examination (audit) by the Small Business/Self Employed (SB/SE) Division of the IRS. FTS uses alternative dispute resolution techniques to help taxpayers save time and avoid a formal administrative appeal or lengthy litigation.

Learn More About Fast Tract Settlement in context of the tax audit/examination process.

Understanding Tax Liens and How They Affect your Financial Freedom

FLTS-Tax-Lien

If you do not pay your taxes in full, the IRS may impose a tax lien to ensure you clear the debt. This legal claim can apply to your home, real-estate property, and business. The IRS can also impose it on your financial assets, including bank accounts, retirement plans, stocks, and securities.

It is vital to enroll in a tax repayment program when you owe the IRS. This measure will help you avoid significant debt and other consequences like a tax lien. Here, we provide more details about the effects of a lien and how to prevent it.

How Does a Tax Lien Affect Your Financial Freedom?

Once the IRS imposes a tax lien, you will lose control over the affected assets. This means that you cannot make financial transactions like selling or trading stocks. It is also impossible to sell these assets and invest in an income-generating venture.

The IRS provides taxpayers with a specific duration to clear their debts. If you did not repay what you owe after a lien imposture, they might levy your property to recover the unpaid amount.

Another way a tax lien can affect your financial freedom is by jeopardizing a home resale. Since many buyers search titles before purchasing a property, they can quickly identify if the IRS seized your home. This issue may scare away interested parties and make it tough to sell your property within a specific duration.

Before April 2018, the IRS included tax liens in credit reports. This issue made it tough for the affected parties to obtain financing. While the IRS passed policies to remove tax liens from credit reports, such an issue can still affect funding.

First, you may not have enough assets to act as collateral. Besides, an IRS lien on assets like your stocks will make it challenging to generate money for paying existing loans and lower your credit score.

How to Deal With a Tax Lien

The best way to deal with an IRS tax levy is to enroll in a repayment plan. The IRS offers various Fresh Start programs to help taxpayers repay their debt within a reasonable duration.

Your eligibility for such a plan will depend on the amount you owe. It can also vary based on if you filed past returns and paid delinquent taxes.

When wondering if you qualify for IRS debt relief, consult FinishLine Tax Solutions. Our experts can evaluate your situation to determine eligibility.

They can also help you apply to the debt relief programs provided by the IRS. Such include:

The IRS will provide a repayment schedule if you qualify for such programs. They will also require you to offset the amount within a specific duration based on the selected option.

When you start clearing your debt, the IRS will pause collection measures like a tax lien. They will also stop adding fines and penalties if you stick to the payment schedule.

How to Avoid a Tax Lien

Tax liens have significant adverse effects on your finances and freedom. Understanding how to avoid them can protect your assets and help you prevent related consequences.

Pay all the taxes you owe before the IRS deadline to prevent debt and tax liens. Further, counter-check your return forms before submitting them to ensure they have accurate figures.

If you cannot clear your taxes for the current year, contact the IRS promptly to enroll in a repayment program. Other measures you can use to avoid tax liens are getting tax filing services from professionals at FinishLine Tax Solutions and paying monthly.

Protect Your Financial Freedom Today

Preventing tax liens and enrolling in an IRS repayment program will retain your financial freedom. At FinishLine Tax Solutions, we can help you determine how to avoid adverse effects of IRS debt collection measures.

Our tax resolution service experts can also negotiate a suitable repayment program for your financial situation. Contact us today to learn more about tax liens and protect your assets.

Filing Taxes in 2022: What’s New and What to Consider

FLTS-Tax-Season

The 2022 tax filing period kicks off on January 24th, allowing all taxpayers to file and send their 2021 returns. The IRS also announced that the deadline to file and pay the amount owed is April 18th instead of April 15th due to the Emancipation Day holiday.

Before filing back taxes, it's essential to know what to consider and the policies the IRS changed. Here, we provide the ultimate guide to filing taxes in 2022 by discussing critical items to note.

1. Child Tax Credit Payments

In March 2021, the IRS passed an American Rescue Plan, increasing the Child Tax Credit to $3,600 from $2,000. If you qualified for this program and didn't receive a cheque, you may get it in a lump sum by claiming the Child Tax credit. However, if you got advance payments, determine the proper amount to claim when filing your taxes.

When unsure how much money you received in an advance Child Tax credit, counter-check the letter 6419 sent by the IRS in January 2022.

In case you determine that you received less than the amount you qualify for, claim a credit on your 2021 tax return. Alternatively, repay the excess before the provided deadline if you received an excess amount.

2. Charitable Contributions

Another change to note when filing taxes in 2022 is charitable tax deductions. If you do not itemize your withdrawals (subtract them from your gross income), you may take a charitable deduction. However, the amount you are eligible for will depend on your status.

For instance, if you are married and file joint returns with your spouse, you qualify for $600.On the other hand, if you aren't and made cash contributions to a qualified organization, you are eligible for a $300 deduction on the amount you owe the IRS.

3. Claiming the Recoverable Rebate Credit

The federal government rolled out the third Economic Impact Payments in 2021 to cushion citizens affected by the COVID-19 pandemic. If you didn't qualify or were eligible and failed to receive the total amount, you can claim it when filing your 2021 taxes.

Still, if you qualified and got the funds, the IRS requires you to include the total amount in your return forms. Taking this precaution will help you prevent processing delays on your refund. It also ensures you provide accurate details on your tax records.

An ideal way to confirm the amount you received and what you can claim is using Letter 6475. Alternatively, log into your IRS online accounts to counter-check this information.

4. Child and Dependent Care Credit

The child and dependent care credits are available to citizens who paid for childcare to work or search for a job. You can also qualify if you paid the money to care for an adult-dependent unable to look after themselves.

If you fall in any of these categories, claim the child and dependent care credits to lower the taxes you owe. However, if you don't have delinquent taxes, the balance will go into your refund.

When unsure about the amount you spent on these expenses, counter-check your bank account statements. You may also get these details on your financial records or payment receipts.

5. Stimulus Checks

If you qualify for a stimulus cheque, you probably received your last one throughout 2021, beyond the 2020's tax filing deadline. When submitting your tax forms for 2022, it's vital to remember the IRS doesn't consider this payment as income.

Hence, you don't need to include it in your return documents. In case you didn't get the total amount you qualify for, you can claim them as part of the refund.

Contact Tax Industry to File Your 2021 Returns

Filing taxes in 2022 may be tricky since there are various aspects to consider. At Tax industry, we can help you determine how much you owe the IRS for 2021. We will also identify the deductions and benefits you qualify for then ensure you claim the necessary refunds. Call our offices today for help with filing your tax returns. or other special tax situations.

IRS Fresh Start Program : How It Can Help to Get Your Finances Back On Track

Paying taxes you owe to the IRS may be a daunting task when facing financial challenges. Unfortunately, failing to submit the required amount you owe can lead to fines and penalties. The IRS can also freeze your assets and seize your business.

Enrolling in a Fresh Start program allows you to clear your debt and reorganize your finances. Here, we explore avoiding the consequences of back taxes with a debt relief plan. We’ll also mention some of the Fresh Start programs you can consider and the benefits of working with the best tax relief companies.

Getting Your Finances on Track With IRS Fresh Start Program

If you have accumulated tax debt, you can get your finances back on track with the IRS Fresh Start program. The first step to this is determining the most suitable category. Some of the options you can consider are an offer in compromise, an IRS installment agreement, penalty abatement, and currently not collectible.

Once you qualify for relief, the IRS will stop any efforts to collect the debt. For example, they will pause efforts to get a court order for seizing your assets or closing your business. They can also release a tax lien, allowing you to sell your properties.

Another way a IRS Fresh Start program can get your finances back on track is by preventing debt accumulation. The IRS will stop interests from accruing when you enroll in a debt relief plan. They will also pause imposing fines, preventing more financial losses.

How to Apply for IRS Fresh Start Program

The IRS requires everyone applying to a debt relief program to meet various requirements. You must also provide specific documents to boost the chances of consideration. In most cases, these vary depending on the program you are applying for and the amount of debt.

For example, when sending a request to be considered for the Currently Not Collectible plan, you must prove you are facing financial challenges. It’s also necessary to show that repaying the debt will lead to severe straining. Some documents you can use to support your application are your pay slip and receipts of your expenses.

When sending your application to a Fresh Start program, you must remit a direct deposit, depending on the selected category. For example, if you choose an offer in compromise, you must remit a $205 nonrefundable fee. The IRS will also require you to send an initial payment equal to 20% of your debt.

Benefits of Getting Tax Resolution Services When Applying for the Fresh Start Program

Determining the most suitable Fresh start program can be tricky due to several choices. Working with the best tax relief companies allows you to simplify this process in many ways. First, such firms have a team of experts who can help you pick the right program based on your financial situation and debt value.

These can also negotiate with the IRS for a suitable repayment program. More reasons to get professional tax resolution services are:

  • It can help settle your tax debt for a lower amount
  • Tax resolution experts can ensure you submit proper documentation
  • You will get legal representation during audits and case proceedings

Another benefit of working with the best tax relief companies is that it allows you to avoid further penalties and fines. With the help of CPAs, you can quickly file back taxes to avoid debt accumulation. It is also possible to support your Fresh Start application with verified financial documents.

Get Your Finances Back on Track With Reliable Tax Resolution Services

Working with reliable tax resolution companies can help you reorganize your finances. At Tax Industry, we have a pool of CPAs and attorneys who can guide you when applying to the IRS Fresh Start program.

With our help, you can avoid the adverse financial consequences of debt. Reach out to us today to get your finances back on track and apply to a suitable IRS Fresh Start program.

Tax Settlement – Find out if you are eligible

TAX SETTLEMENT – FIND OUT IF YOU ARE ELIGIBLE

Paying all the taxes you owe can be challenging when facing financial problems. Failing to remit the entire amount may then lead to the accumulation of penalties and interest. The IRS can also garnish your wages or freeze your assets to prompt you to pay.

Luckily, you can avoid such consequences and repay your debt using a tax settlement. Here, we help you understand how this works and discuss ways to determine eligibility. We also highlight the benefits of tax settlement and explain why it is vital to work with an expert from Tax Industry.

How Does a Tax Settlement Work?

A tax settlement allows you to negotiate favorable debt relief terms. Depending on the amount you owe, the IRS may accept an amount less than the total debt. They can also request installment payments over a specified duration.

Since the qualification requirements of each tax settlement option differ, it is always crucial to determine if you qualify before contacting the IRS.

Once you pick the debt relief program you want to apply to, submit all needed documents alongside your request. You should also send an application fee, which will depend on the chosen tax settlement option.

After receiving your application, the IRS will check if you qualify and provide feedback.  They may then send a settlement offer, including all terms of the agreement and a payment schedule.

Benefits of a Tax Settlement

One significant benefit of tax settlement is that it allows you to prevent costly repercussions. Once you qualify, the IRS will freeze fines and penalties then stop collection efforts. They may also lift a tax lien or discharge it, allowing you to sell properties.

Another benefit of tax settlement is that it provides lenient payment terms. Instead of struggling to clear the amount with one deposit, it is possible to repay over several years or months.

For example, if you qualify for an installment agreement, the IRS will give you 72 months to clear the debt. Such favorable terms allow you to budget for the required monthly payments and avoid financial straining.

Who Is Eligible for a Tax Settlement?

The IRS has requirements to determine if applicants qualify for a tax settlement offer. While these will differ based on the relief program you select, some aspects are common.

First, you should be able to show that repaying your debt in full will cause financial challenges. Besides, you must file all past tax returns before submitting your application.

Another qualification requirement is that your debt must be within the maximum limit of the selected relief program. For example, when applying for a Fresh Start program, the amount you owe, including penalties, must be less than $50,000.

Since determining eligibility for tax settlement can be challenging, it is advisable to consult a relief expert. With their guidance, you can identify the most suitable program based on your debt and financial situation.

Tax Settlement Services Offered by Tax Industry

Tax Industry provides a wide range of settlement services to help you deal with debt. For example, we have attorneys who can negotiate with the IRS on your behalf or stop a wage garnishment. We also offer tax debt relief services where our liability experts assess your situation and eligibility for various settlement options.

More services you can get at Tax Industry are:

  • A federal tax lien release
  • Filing back taxes
  • Audit representation

Working with Tax Industry liability experts is the best way to increase the chances of qualifying for a settlement. Since they understand the requirements for each relief program, they can ensure you provide the needed documentation. They may also help you avoid issues that affect your eligibility for various settlement programs.

Contact Tax Industry to Apply for an IRS Tax Settlement

Tax Industry provides you with all the skills and expertise needed when negotiating with the IRS. With our guidance, you can apply for programs like installment agreement, offer in compromise, or penalty abatement. If you are looking for reliable tax debt relief services, contact us today to consult our experts.