Posts Tagged ‘taxes’

NEW Tax Resolution Services Now Available

Opening that letter addressed to you from the IRS can induce a lot of stress-filled responses. Your heart races, your head swims. Your hands shake. Many people automatically waffle between flight and fight. Do you ignore it or do you get defensive? As it turns out, neither response is particularly healthy.

Every taxpayer has rights.  Ignoring or not being pro-active with the IRS are reasons to lose your rights.  The IRS is a bully and they are out there to collect taxes and enforce rules. If you or someone you know has an issue with the IRS: unpaid taxes, unfiled tax returns, liens, levies or other collection type matters, it is important for them to appoint a Tax Representative who can act as a liaison between you and the IRS.  In fact, a committed tax representative will work on your behalf so that you don’t have to EVER call the IRS yourself.

WHAT YOU NEED TO KNOW:  Remember to FILE, FILE, FILE!  Even if you are unable to pay the taxes due with the return, you should ALWAYS file a tax return.  The penalty for failure to file a return can go up as much as 25% of the original balance that was due.  Even worse, if you don’t file and you actually should have been due a refund, you forfeit the refund, making a nondeductible donation to the United States Treasury.

OPTIONS TO PAY YOUR TAXES:  Once you have filed your tax return, there are options to pay the unpaid balance on the return if you are unable to pay.  This is where an experienced tax representative can advise you on what you are qualified for and your most optimal resolution.  Some of the options that are available to taxpayers are:

  • Installment agreement – full pay or partial pay depending on what you can qualify for
  • Placing your account on CNC – Currently Non collectible.
  • Offer In Compromise – Settling your debt for less than what you owe
  • Innocent spouse relief
  • Bankruptcy
  • Interest and penalty abatement

It doesn’t really matter whether your problem is big or small because either way, it is not going to simply go away and both are guaranteed to grow far worse.   If you think your problems seem intimidating or overwhelming, you are NOT alone.  There are professionals experienced in this area that will take your problems over and work out the best optimal solution for you.  If you want to learn more about any of the options listed above or if there is a specific issue that you would like advice on, contact our team of professionals at RSJ to help you make the IRS behave.  Like any bully, you MUST stand up for yourself.  Know your rights, your options and have a game plan.  Knowledge is power and will get you to keep the IRS at bay!

If you’re having problems with the IRS, give us a call and we can walk through it.  We can schedule a  confidential consultation — at no cost to you — to review your situation and create a plan of action to resolve whatever IRS issue you may be having.

President-Elect Trump’s Impact on Your Taxes

Capitol Building

Capitol BuildingWhile some are happy and some are protesting the election of Donald Trump as our next president, one thing is certain: Changes will be made to the tax and business climate. Many are speculating about what might happen, but no one really knows what President-Elect Trump’s administration or the Congress will propose and will pass. So far the domestic markets have responded positively to the possibilities they see in the future. Europe is taking a “wait and see” posture. Both sides of the aisle agree that some sort of infrastructure initiative is necessary.
We would like to share our thoughts about the future:

  1. Overall, we might see a broadening in the tax base subject to tax, but we probably will not see a drastic reduction in everyone’s taxes. Enhanced child-care deductions are likely, as are lowered tax rates and faster write-offs for capital investments. That said, there might be an absolute cap on the amount of itemized deductions allowable, which is why we are skeptical about the likelihood of seeing tremendous reductions in taxes.

     

  2. Lifting some of the regulations on businesses might make it a bit easier for you to operate and plan for the future. By lifting or moderating some of the regulations under discussion, more new businesses will have a smoother road to success. Likewise, existing business can act more “business-like” and less defensive.

     

  3. There will be some effort to further eliminate estate and gift taxes for all but the wealthiest of our clients, but it is possible that many people will end up paying more money in taxes related to assets passed between generations. The trade-off will occur because we suspect that adjustments to the income tax basis (for determining gain or loss on the eventual disposition of those assets) will remain the original cost plus capital improvements the original purchaser paid for those assets.

 

What can you do now?

1. Be watchful and pay attention to not only the rhetoric but also the actual proposals that are floated by those who will be in control of the executive and legislative branches.

2. Be attentive to state and local proposals for both legislation and regulation so you won’t be surprised by state-level changes.

3. Spend time evaluating the human, structural, social, and intellectual capitals of your business and how a changing environment might change your strategies related to each. For instance:

  • Mind your human capital by considering whether proposed changes in regulations will change the way you will deal with your employees. How will changes to the Affordable Care Act (or repealing the Affordable Care Act entirely) impact you? See your employee benefits purveyor to help understand these changes.
  • Protect your intellectual and structural capital. Think thru innovations and other technical issues in your industry. How does technology affect the way you get things done? Are you cyber-secure?
  • What about social capital? Be sure you are speaking to your customers and your vendors about how, if at all, your relationship with them will be impacted by changes that might occur in Washington or your local State House. Keep your customers informed about changes that might come about in your industry that could affect their ability to utilize your value.

 

Regardless of whether you are celebrating or grieving the new administration, now is a great time to spend a minute and evaluate where you are and where you want to go. The currents move on, even if we want to stand still.

We are thinking about these things and more at Rose, Snyder & Jacobs, and we want to help you be intentional and understand the future so that we can work together to make the best decisions. We stand ready to assist you as you consider what the next four years or more might look like for you, your family, and your businesses.

Important Information About Recent IRS Notices

To Our Valued Clients,

Over the last few days we have received IRS notices for clients proposing unpaid taxes, penalties and possible failure to file assessments. Due to the volume of notices we received, we investigated what was driving these notices to generate. We discovered that the IRS has a systematic error in their database and for the most part, we are confident that the notices are not valid.

If you receive a notice in the coming days from the IRS (Notice CP-14, CP-23/24) and you would like our office to assist you with resolving the matter please be sure to share the information with us and we will evaluate the validity of the notice. We understand that this issue is beyond your control however, this problem is costly in time and trouble. We will work towards a successful resolution in the most cost effective way. Having said that, we do not recommend you paying any bill you do not owe without proper evaluation of its validity.

Should you have any questions regarding this matter, please feel free to contact our office and one of our tax professionals will guide you through the steps that need to be taken.

Sincerely,

Tax Team @ Rose, Snyder & Jacobs LLP