CPAs serve as consultants on a variety of issues, including taxes and accounting. They are trusted financial advisor who assists individuals, businesses, and other organizations in planning and achieving their financial objectives. They also handle tax reporting and filing for individuals and businesses. A CPA can advise individuals and businesses on the best course of action to minimize taxes and maximize profits.
They understand your tax problems because they are familiar with the laws, rules, and other IRS regulations. File back all taxes that are due, whether or not you can pay in full. File your past-due return in the same manner and location as you would an on-time return.
A tax refund is the result of a tax return
One practical reason to file a tax return is to find out if the IRS owes you money. While many people have federal income taxes deducted from their paychecks, sometimes too much is deducted. In these situations, filing a tax return may result in a tax refund that is deposited into your bank account.
- Avoid tax penalties
Even if you can’t pay the balance you owe, filing a tax return on time is critical to avoid or minimize penalties.
- Offer in Compromise
An offer in compromise allows you to settle your tax debt for a portion of what you owe rather than the full amount. It may be a viable option if you are unable to pay your entire tax liability or if doing so would cause you financial hardship. The IRS can issue a Notice of Federal Tax Lien. Other IRS collection activities are halted. The time frame for legal assessment and collection has been extended. You make all required payments in accordance with your offer.
- Installment Agreement
A payment plan is an agreement with the IRS to pay the taxes you owe over a set period of time. If you believe you will be able to pay your taxes in full within the extended time frame, you should request a payment plan. You will not be charged a user fee if you qualify for a short-term payment plan.
- Tax Representative Services
If the IRS is auditing you, a tax professional can help you resolve all of your tax issues. They assist you in obtaining the lowest possible debt.
- Audit Representative
An audit representative devises the strategy for defending the taxpayer’s position. He or she assists the taxpayer in preparing all documents requested by the taxing authority and typically attends all meetings and handles correspondence on the taxpayer’s behalf.
- Tax Lien
A tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all of your property, including real estate, personal property, and financial assets. Paying your tax debt will easily release your tax lien. After you have paid your tax debt, the IRS will release your lien within 30 days.
- Reduce Penalties
If you attempted to comply with tax laws but were unable to do so due to circumstances beyond your control, you may be eligible for penalty relief. If attorneys, certified public accountants, enrolled agents, or anyone else who is paid to prepare tax returns do not follow tax laws, rules, and regulations, they may face a penalty. Choose your representative wisely.
- Payroll Liabilities
If you expect to owe payroll tax, you must make a tax deposit. If taxes are not paid on time, the IRS charges interest and penalties. Although the IRS takes time to charge you, don’t be relieved because failure to pay payroll taxes can be a criminal offense with a fine penalty.
Contact a CPA to assist you in obtaining tax relief. A CPA with experience in IRS tax cases will assist you with your tax problem. A tax expert will assist you in determining whether you are liable for the trust fund’s reclamation penalty.
Unified Tax
Individuals who give significant assets to others while they are still alive may be subject to gift taxes.
Furthermore, any assets left for beneficiaries after an individual dies may be subject to estate taxes; however, the unified tax return credit limits the amount that individuals can gift during their lifetime and bequeath to heirs before the gift and estate taxes apply. The unified tax credit provides a fixed dollar amount that an individual can gift and pass on to heirs during their lifetime before any gift or estate taxes apply.
The tax credit combines the gift and estate taxes into a single tax system that reduces the individual or estate’s tax bill dollar for dollar.
IRS Tax levies and Liens
Acknowledge any notice you ever receive from the IRS and don’t ignore it. IRS places a lien on your vehicle, house, and wages in order to collect the taxes you owe. Hire a tax expert before this.
A lien is a legal claim made against your property to secure payment of your tax debt, whereas a levy actually takes possession of the property to satisfy the tax debt.
When the IRS examines a tax against you and sends you a bill that you ignore or refuse to pay, a federal tax lien is created. To notify creditors that the government has a legal right to your property, the IRS files a public document known as the Notice of Federal Tax Lien.
Wage Garnishment
Pay your back taxes or face the IRS. An IRS levy allows for the legal seizure of your property in order to satisfy a tax debt. It has the authority to garnish wages, seize and sell your vehicle(s), real estate, and other personal property, as well as take money from your bank or another financial account.
- IRS wants to collect taxes you owe.
Removal of wage garnishment – When it comes to working with the IRS and resolving difficult tax situations, tax professionals have extensive experience. Working with a tax professional may help you stop the garnishment if the IRS is garnishing your wages.
Your tax advisor will assess your financial situation and tax debt to determine the best course of action. This is often possible through a free consultation. Depending on the specifics of your situation, the professional may recommend a payment plan, an offer in compromise, or even declare bankruptcy.
Conclusion
CPAs can assist in such situations; however, they can also assist individuals and businesses with much lower incomes. CPAs are equipped to support a diverse range of people with diverse incomes and financial situations. A CPA can work with you throughout the year to help you stay on top of your taxes. CPAs offer a variety of essential tax services, including helping you maximize your tax credits so that more money stays in your pocket, as well as assisting you with record keeping and audit preparation.
