8 Reasons to Work with a Tax Resolution Professional To Resolve Your Back Taxes
When you owe money to the IRS, it is hard to think about anything else. While being in debt is never fun, no matter who the creditor is, the IRS enjoys almost unlimited power to collect the money they are due.
Unlike your mortgage lender or credit card company, the Internal Revenue Service has the power to attach your wages, raid your bank account and even take your freedom. No other creditor even comes close in terms of its power and influence and taking on the agency on your own could be asking for trouble.
If you have received a notice from the IRS, you need to act fast, and you need the right assistance in your corner. Taking on the IRS requires specific expertise, and that is why it is so important to work with a quality tax resolution company. Here are eight reasons why working with a tax resolution service could save your good name - and your bank account.
- You gain specific expertise. The IRS is a specialized agency, and you need expert advice and guidance to get the most positive resolution.
- It will give you peace of mind. Just being contacted by the IRS can make your heart beat a bit faster, but working with a tax resolution expert can set your mind at ease. Generally, once you hire a tax resolution expert you won’t have to meet or speak with the IRS.
- The tax resolution process could save you a lot of money. Tax resolution agents are experts at settlements, and working with one could save you a ton of money.
- Timely action could save your home and property. If you wait too long, you could put your home, business, bank accounts and personal property at risk. Time is of the essence when it comes to resolving tax issues, and timely assistance could make a world of difference.
- You will feel less alone. Few things feel as lonely as fighting the IRS on your own. When you work with a tax resolution expert, not only do you not have to go it alone but they actually step into your shoes to represent your best interests.
- You will have a chance to file missing returns. When faced with a big tax bill, it is easy to do nothing, but failing to file tax returns could have serious consequences down the line. If you have years of unfiled returns, a tax resolution expert can help you catch up.
- Expert help could make an audit less scary. Receiving that audit notice in the mail can be frightening, but a tax resolution expert can guide you through the process. When you work with a tax resolution professional, you will have one less thing to worry about.
- You could save your credit score. Unresolved issues with the IRS will reflect badly on your credit report, lowering your credit score and making it harder to borrow money or qualify for a mortgage. Timely tax resolution could preserve your stellar credit score and help you avoid those serious consequences.
Owing money to the IRS can be very frightening. There is a reason those three letters strike so much fear into the hearts of ordinary citizens, even those who have done nothing wrong.
If you are in trouble with the IRS, you cannot afford to ignore the issue, so act fast and get the help you need today. Working with a tax resolution expert carries a host of benefits, starting with the eight outlined above.
Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem. Visit us at www.elitetaxrelief.com or call (479) 242-7499 Now!
A Taxing Situation: Timely Tax Tips for Cryptocurrency Investors
Until recently, cryptocurrency investors have mostly flown under the radar as far as taxes are concerned. Now those days are coming to an end, and many holders of virtual currency are scrambling to understand what they owe and how their investments may impact their finances.
The IRS has already requested the identities of those who hold substantial amounts of cryptocurrency, and it is only a matter of time until the tax agency broadens its scope. Just as with overseas bank accounts, the days of free riding in the cryptocurrency market are quickly coming to an end.
When the veil of secrecy got pierced for holders of Swiss bank accounts, wealthy individuals all over the world were shocked -- and suddenly a lot poorer. And while cryptocurrency fans have primarily relied on the supposed anonymity of their investments to protect themselves, recent events have shown that Bitcoin, Ethereum and the like are not entirely as anonymous as advertised. So, before the tax man comes calling, it is time to get out ahead of the situation.
Here are some timely tax tips for cryptocurrency investors but before we get into it, if you need an expert tax advisor or are already in tax trouble, reach out to our firm and we’ll schedule a confidential consultation. Call 479-242-7499.
Do Not Assume Your Account is Too Small
If you only have a few hundred dollars in the cryptocurrency market, you may assume that your account is too small to get the attention of the IRS, but that is not necessarily the case. As the tax agency gets better at sorting out the records of cryptocurrency exchanges, they will likely expand their reach beyond the most significant players in the marketplace.
As the reach of the tax agency broadens, more and more cryptocurrency investors will become ensnared in their net. Keep in mind that much of this information gathering is automated and that the IRS may begin to generate statements on that basis.
Know that All Cryptocurrencies Will Be Impacted Eventually
While Bitcoin is the first, and by far the most significant cryptocurrency tax target, eventually the IRS will start poking around in other forms of virtual payment. Even if you have eschewed Bitcoin in favor of other cryptocurrencies, you should not expect a free ride from the IRS.
In fact, certain altcoins may garner considerably more IRS scrutiny, especially forms of payment associated with drug purchases and other transactions on the dark web. Even if you are not doing anything wrong, your holdings in those altcoins could get the attention of the IRS and eventually generate a big tax bill.
Keep Careful Records
The tax man is coming eventually, and the best thing you can do is prepare now. Waiting until the IRS comes calling could mean big penalties and additional interest, so the best strategy is to calculate your holdings and determine what you might owe.
Keeping extensive and accurate records will be essential going forward, but you might want to go back and look at your past purchases and sales. Every transaction, including purchases using cryptocurrency as payment, could potentially be a taxable event, so good recordkeeping is vital.
The IRS is interested primarily in the money you make on cryptocurrency, not necessarily on how many virtual coins you own. Calculating the cost basis, i.e., what you paid for the coins in the first place, can help you avoid paying too much in taxes while keeping you on the right side of the IRS.
Watch Out for Scams
The fact that cryptocurrency is in the IRS crosshairs has taxpayers worried. Unfortunately, the new tax scrutiny has also given rise to many scams, and it is essential for investors to prepare for the possibility.
These tax scams are likely to follow a familiar scenario, albeit with a cryptocurrency twist. The scam artist may call holders of cryptocurrency, claiming to be from the IRS and demanding immediate payment for taxes owed.
While the tax agency has taken a new interest in cryptocurrency investments, they do not initiate collection activities over the phone or via email. If you do owe money on your cryptocurrency holdings, you will receive a letter from the IRS, and possibly a bill as well. If you receive a threatening phone call or suspicious email, ignore it - or report it to the authorities and the IRS.
The cryptocurrency market is growing up, and the IRS has finally taken notice. After many years of flying under the radar, cryptocurrency investors are finally getting the attention of the IRS. Whether you were an early adopter or recently joined the virtual payment revolution, you need to prepare for the tax implications of this 21st-century investment. The sooner you get started, the less taxing the situation will become.
If you need an expert tax advisor or are already in tax trouble, reach out to our firm and we’ll schedule a confidential consultation. Call 479-242-7499 TODAY.
Achieve Tax Resolution with an Offer in Compromise
An offer in compromise is the IRS’ tax resolution debt settlement program. It’s a program for taxpayers who owe the Internal Revenue Service more money than they can afford to pay.
It’s the IRS’s version of a “fresh start” when it comes to tax debt. If approved, the IRS accepts a lesser amount (sometimes a fraction of what’s owed) to settle your debt. However, it isn't always easy to gain approval due to its strict criteria. Your odds for acceptance increase significantly when you have experience negotiating with the IRS.
The IRS considers your income, assets, expenses, ability to pay, and whether paying the full amount would cause financial hardship.
Information You Need to Submit an Application for an Offer in Compromise
It's important to remember that the IRS wants its money and will only accept an offer in compromise if it thinks it wouldn't receive any money otherwise. You must be current with all filing and payment requirements to apply. Additionally, you cannot be in the process of filing bankruptcy.
You can find more information about the IRS Offer in Compromise on the IRS website here. If you want help with your back tax problem, contact us today for a consultation. www.elitetaxrelief.com 479-242-7499.
After supplying the IRS with your name, address, social security number, and the amount of tax debt you would like it to consider for this program, you need to supply details about your income, assets, and expenses. In addition to wages, your personal income can include:
● Business profit
● Self-employment income
● Rental income
● Child support or alimony
● Interest on investments
Your assets can include things such as:
● Stocks and bonds
● Resale value of your personal vehicles
● Market value of your home
● Balance of your retirement savings accounts
● Balance of bank accounts, including checking, savings, and investments
For the expense section, you should only include items you pay regularly. These may include:
● Rent or mortgage
● Child support or alimony
● State and federal taxes
● Daycare costs
● Costs to maintain a vehicle
● Auto, health, and life insurance
Compiling this information and completing the application correctly can be challenging even for tax practitioners who don’t have expertise in dealing with the IRS. Your CPA or tax advisor most likely doesn’t have experience with resolving back tax issues. That’s why we recommend working with a specialized tax resolution professional like us to better understand this option and increase your chances of approval.
I’m In Tax Trouble, What Are My Options?
A letter from the IRS is rarely a good thing. One of the worst missives to get from the tax man is the CP90 – Final Notice Before Levy. It is a final warning shot to scare you into paying up and should not be ignored.
After an IRS final notice, you could:
- Pay in full - but if you could afford to do that, you probably already would have done so.
- Sign on for an installment agreement on your own, with penalties and interest so excessive it will never end.
- Ignore them and wait for terrible consequences like garnished wages and tax liens. Don’t do this, ever.
- Contact your tax resolution professional to see what your resolution options are.
The CP90 intends to intimidate you into calling so the IRS can take as much as possible from you even if it leaves you in dire financial straits, unable to pay your bills or support your family.
A better option is to work with a certified tax resolution expert that can negotiate on your behalf for better results. A tax expert can pursue resolutions that would be difficult (if not impossible) to negotiate on your own. Below is a look at four options to deal with tax debt.
Offer in Compromise (OIC)
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. It can be far more reasonable than an IRS installment agreement, but you have to see if you qualify based on your unique financial situation and specific case.
Installment Agreement (IA) or Partial Payment Installment Agreement (PPIA)
These are well-structured installment agreements that can slash penalties by 50%. The IA is an agreement to pay what’s owed in full while a PPIA lets you pay a reduced amount. These agreements generally run 6-72 months,
Penalty Abatement (PA)
This agreement strips away penalties tacked onto your tax balance. Penalties include failure-to-file, failure-to-pay, and failure-to-deposit (for business owners). If you’ve never had a penalty before, a first-time abatement (FTA) penalty waiver may apply. Otherwise, your tax relief consultant can fight for a reasonable cause abatement if any of the following apply:
- Illness, death, or incapacitation of the taxpayer or their immediate family
- Fire, casualty, natural disaster, etc. affecting the taxpayer
- Inability to obtain records and documents
Currently Not Collectible (CNC)
In cases of extreme financial hardship, your tax rep can argue that you can’t afford to pay anything. With this option, your tax debt goes on the back burner, and you make no monthly payments although penalty and interest keep accruing. The big advantage of CNC is that the 10-year statute of limitations on collection keeps ticking so you might be able to ride it out and pay nothing on the tax debt. If you’ve received an IRS final notice or threatening letter, don’t ignore it. Instead, contact Elite Tax Relief at 479-242-7499 or 1-855-4-IRS-DEBT to speak with a tax resolution specialist to get the IRS off your back for good.
Fort Smith, Arkansas Tax Resolution Expert
Kenneth (Ken) Mullinax is a Fort Smith, Arkansas-based tax professional expert serving individuals and businesses throughout the United States. For six years, Ken worked for the IRS, enforcing tax laws and bringing taxpayers into filing and payment compliance. The more Ken worked with taxpayers, the more he knew his passion was not working for the IRS, but rather working for the troubled taxpayers in Arkansas and other states so they could have expert advice and advocacy to find relief and resolve their current tax problems. Ken left the IRS to lead Elite Tax Relief LLC. He’s never looked back.
Working for the IRS provided Ken with an edge and a unique set of skills that is not possessed by most CPAs or tax resolution professionals.
He is uniquely qualified to handle IRS resolution cases. Ken is a Certified Public Accountant and an Enrolled Agent – licensed in the State of Arkansas. He is also a member of the Arkansas Society of CPAs and the American Society of Tax Problem Solvers (ASTPS).
For this tax resolution expert, his passion (helping families, individuals and businesses find tax debt relief) is his profession.
Follow Ken on Twitter for expert tax tips and news. You can also connect with him on his personal LinkedIn page and on Facebook or subscribe to his blog.
