As a business professional, you are likely to be acquainted with the many tax issues that can arise during a year. From missed deductions to incorrect filings, there are many ways in which your taxes can go wrong. That’s when tax professionals can help. These experts can solve common tax problems and save your money. According to reports, most tax professionals are majorly in demand in New York.
Here are three of the common tax related problems faced by business professionals.
- IRS Penalties and Interest
If you are facing IRS penalties and interest, the best thing to do is to contact a tax professional as soon as possible. They can help you negotiate a payment plan or offer in compromise that can reduce or eliminate your liability.
Some reasons for penalties include:
- Filing your taxes late
- Not paying your taxes on time
- Underreporting your income
- Claiming excessive deductions
A tax professional can determine if you qualify for penalties and interest relief programs. For example, the experts can also help if you have a tax lien or levy.
- IRS Tax Audits
Audits are the stuff of nightmares for many business professionals. The IRS can audit your business for various reasons, but the most common are errors on your tax return or if you are suspected of cheating on your taxes.
If you are selected for an audit, the best thing to do is hire a professional tax advisor to help you through the process. Here is how tax relief services will work.
The tax relief company will firstly assess your IRS audit notice to determine the best course of action. If you owe a fine to the IRS, the tax relief company will negotiate with the IRS on your behalf to reduce the money you owe. The company will also help set up a payment plan if necessary.
If you don’t owe money to the IRS, the tax relief company will represent you during the audit and ensure that you don’t owe any money.
Tax audits involve a lot of paperwork and can be very confusing, so it is best to leave it to the professionals. Some of them include:
- Determining if you’re being audited for a specific reason.
- Figuring out which years are being audited.
- Gathering all the necessary documentation.
- Filling out paperwork.
- Dealing with IRS representatives.
- You Have Unfiled Tax Returns
If you fail to file one or more tax returns, the IRS may file a Substitute for Return (SFR) on your behalf. An SFR is filed using information the IRS has about your income, such as from W-21s filed by your employer. While an SFR includes some basic information about deductions and credits, it does not consider your specific circumstances.
As a result, the tax due on an SFR is often much higher than what you would owe if you filed a return yourself.
If the IRS has filed an SFR for you, it is vital to file your return as soon as possible. The IRS may also assess a failure-to-file penalty if you don’t file a return. Tax help resources can assist you in catching up on your filing obligations.
Tax problems can be frustrating and time-consuming, but they don’t have to be permanent. With the right help, you can overcome any tax obstacle.