During an audit, the IRS usually requires supporting documents and evidence to verify the accuracy of the information you reported on your tax returns. Both the IRS and State authorities will focus on information that can be used to disallow your expenses, even if you initially believed that the information you provided or omitted was inconsequential.
When an expense is disallowed, it is treated as income and you are required to pay taxes on it dating back to the year the tax return was due, along with penalties and interest. This is why having tax audit representation is crucial to ensure your protection. A tax expert with experience in IRS audits will organize and annotate your information, providing explanations where necessary, and will also advocate for your rights.
Following the audit, the IRS will typically present their findings and proposed outcomes, which often result in a tax liability. In such cases, your tax audit representation will assist you in challenging the conclusions and filing a formal tax court appeal on your behalf.
Version 1: The IRS has the option to consider a compromise if there is uncertainty regarding the taxpayer’s liability. This compromise is only applicable when there is a genuine disagreement about the correct amount or existence of the tax debt according to the law. It is important to note that if taxes were straightforward, tax advisors would not have a thriving business. There are instances where both the taxpayer and the IRS may question the liability, and in such cases, the IRS may allow a compromise to move forward.
Version 2: Another circumstance in which the IRS may accept a compromise is when there is doubt about the taxpayer’s ability to fully pay the amount owed. This doubt arises when the taxpayer’s income and assets are insufficient to cover the entire tax liability. A classic example where a compromise could be sought is when an individual or business experiences a highly profitable year followed by a financially challenging one. The tax obligation arrives at a time when it is least affordable, with no assets to sell or income to meet the owed amount.
Version 3: Additionally, the IRS may consider accepting a compromise based on effective tax administration. In such cases, an offer could be approved if there is no doubt that the tax debt is legally owed and can be collected in full. However, requiring full payment may be deemed inequitable or create an economic hardship due to exceptional circumstances. For instance, a business may be forced to sell essential equipment or even shut down operations to fulfill their tax liability. In such situations, an offer in compromise could potentially save the business.
We resolve Both Small Business and Personal taxes. Unfiled tax returns must be addressed before the I.R.S. can entertain the idea of reducing your debt through the settlement procedure, which is a service we will take care of on your behalf. Even if you are unable to locate your W2 forms from previous employers, we have the ability to retrieve them through the I.R.S.
Running a small business can be overwhelming with all the responsibilities you have to juggle. Let us help ease the burden. It may surprise you to learn that small business owners typically spend around 24 hours each year sorting through and submitting their tax documents. Here at IRS Fresh Start, we can match you with budget-friendly tax experts who are equipped to manage not only your business taxes, but also your personal tax filings. Whether it’s federal taxes, sales taxes, payroll tax, excise tax, gas tax or any other tax-related matter, we have the expertise to assist you every step of the way.
Lastly, as an employer, it is mandatory for you to fulfill your payroll tax obligations. Failure to submit the accurate amount can lead to significant fines and interest charges. Fortunately, there are several payroll relief solutions accessible to assist you in rectifying the situation and getting back on the right path!
Here are various forms of IRS penalty relief available, each with its own set of eligibility criteria and applicable circumstances. These include statutory exceptions, administrative waivers, and reasonable cause penalty abatement.
It is important to note that not all penalties are eligible for abatement. For instance, the estimated tax penalty cannot be abated and is typically imposed on self-employed individuals or businesses. However, it does not hinder your ability to request abatement for other penalties incurred in the past.
911 Tax Relief provides comprehensive accounting services including bookkeeping, tax preparation and planning, financial consulting, and payroll services.
Our strategic financial planning and expert tax advice are designed to optimize your resources, reduce expenses, and promote sustainable growth for your business.
Absolutely! We offer personalized accounting services tailored to meet the needs of both individuals and businesses, ensuring financial clarity and success.
Our commitment to precision and integrity, combined with our motto “Charting Financial Horizon,” ensures we provide proactive and strategic financial guidance unique to your needs.
We employ rigorous data protection measures, utilize secure software, and adhere to strict confidentiality policies to safeguard all client information.
At 911 Tax Relief Law, our primary focus is on delivering exceptional service to our clients and providing effective solutions for their unpaid or disputed IRS or State tax liabilities.
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