Here are just a few of the most common issues that tax payers are faced with. If you have additional questions, please give us a call and we will be happy to work with you on your particular situation.
This will prevent costly penalties for late filing and give you a six-month extension on filing the return. Give us a call to prepare an extension for you.
The extension is only an extension on filing, it’s not an extension to pay. Do your best to figure out how much you owe and send it in with the extension.
Don’t forget about the state. File an extension with the state if you owe and send payment along with the extension.
This will avoid costly penalties for late filing. If possible, pay your state tax balance so you will only be dealing with the IRS.
If you will be able to pay the balance within a few months of filing, pay as much as possible with the return or extension. Upon receiving the IRS notice of tax due, send in the balance. You will incur interest costs at federal rates plus late payment penalties of ½ % per month.
You’ll have to pay a percentage of your tax as a convenience fee plus you’ll be paying interest to your credit card company.
If you have no other tax debts, the IRS will generally accept an installment agreement if your unpaid liability is less than $25,000 and the tax will be paid within five years. We can prepare this form for you regardless of who prepared your initial return.
Check your return carefully against the IRS notice. If you agree with the changes, go ahead and send in the balance owed. If you don’t agree, a response must be filed promptly. If you aren’t sure how to respond, give us a call.
The IRS will prepare a return for you and send you a bill for the tax balance. Don’t just accept their version. We can prepare prior year returns including all of the deductions for which you are entitled. Bottom line, you can’t just ignore it. It won’t go away.
You have the right to be represented by an attorney, CPA or Enrolled Agent during an audit. Generally, you do not need to be present during the audit. It is highly advisable to follow these guidelines. We are licensed to represent you before any taxing authority and have a great deal of experience in audit. Give us a call.
We are experts in dealing with tax issues. Give us a call for help in resolving any IRS or state income tax issue or dispute. We can handle this for you even if your initial return was self-prepared or prepared by another firm.
A lien is a claim on property to satisfy a debt. Federal law give the IRS an automatic lien on your property when you are notified of a tax liability and do not pay within 10 days. Generally, this can be avoided by responding to the notice. Give us a call right away.
A levy is the seizure of property to satisfy a tax debt. The IRS must give 30 days’ notice before placing a levy on a taxpayer’s property. Your main home cannot be levied if tax, interest and penalties are $5000 or less. Written court approval is required for seizure of a residence. We can work directly with the IRS or the state in your behalf for levies or liens.
401k, IRA and other retirement plans are considered fair game by the IRS. If distributions are due to an IRS levy, the early withdrawal penalty will not apply. If you withdraw the funds to avoid a levy, the early withdrawal penalties will apply.
The IRS may delay collection activities if your income is insufficient to pay the tax and meet basic living expenses. The IRS will require a Collection Information Statement to make this determination. Give us a call to see if you qualify.
Tax law is complex and general rules do not always apply to your situation. Please call us today (619.422.6181) for an appointment to discuss your tax situation or email us at info@brntax.com.