That’s exactly what a West Chester, Pennsylvania man did – called our firm to evaluate his options on the outstanding tax liabilities.
After conducting a thorough review of his case, we instructed the client that he qualified for an offer in compromise. After negotiating with the IRS, we were able to settle his $47,431 tax debt for only $3,587! That’s just 7.5%!
With Back to School just around the corner, IRS Tax Tip 2022-118 is important for all educators to review.
The IRS knows that teachers go above and beyond, even buying classroom supplies with their own money to ensure successful learning environment. IRS Tax Tip 2022-118 gives some insight into the educator expense deduction which allows eligible educators and administrators to deduct part of the cost of some supplies, training, and technology from their taxes. This is only true of expenses that were not reimbursed by their employers, grants, or another source. Read on below for more on this tax tip, and contact McCauley Law Offices today to settle your Tax Jam and get the IRS off of your back!
Visit www.IRS.gov for more information, and check out Topic No. 458 Educator Expense Deduction on the IRS website for additional advice on this topic.
The IRS can be extremely frightening, even for honest taxpayers. The IRS is unique from other government agencies because they have unbridled power to attack your wages, freeze your bank account and even confiscate your property. The thought of those possibilities alone are enough to send a chill up the spine of any taxpayer.
If you receive a letter from the IRS saying that you owe additional taxes, it is important not to panic. It may be a frightening situation, but there are things you can do to settle your tax debt and get back on the good side of the IRS.
Taxpayers do have options when resolving tax disputes and paying additional taxes due, and simply knowing what those options are can set your mind at ease.
As an expert Tax Resolution Firm, we encourage all readers facing a tax problem, whether it’s the feds or the state, to contact us for a free consultation.
Here are three strategies you can use to resolve your tax debt and get on with the rest of your life. Not all of these options will be right for everyone, but it is important to be an informed taxpayer.
Review the Amount Owed And Your Tax Return In Question
If the IRS says you owe money, you should not simply assume they are right. The tax agency does make mistakes (a lot), as do tax preparers and ordinary taxpayers.
Whether you filed your taxes on your own or hired someone else to do it for you, it is important to examine your return and compare what you find with what the IRS is claiming. It pays to seek professional help for this tax review, even if you originally filed your own taxes. A professional with IRS experience may be able to uncover errors and inconsistencies you would have missed on your own, and that could end up saving you money.
There is no guarantee this review will eliminate the extra taxes the IRS says you owe, but it never hurts to be sure. There have been many cases in which taxpayers who thought they owed money to the IRS ended up owing nothing – or even being due a refund from the IRS.
Set Up a Payment Plan
Getting a notice of additional tax due from the IRS is frightening, especially if you cannot afford to pay what the agency says you owe. Keep in mind, however, that you do not necessarily have to pay the bill all at once.
The IRS is often willing to set up payment plans with taxpayers, and those payment plans could make paying what you owe easier and less stressful. Once again, it is a good idea to seek professional help and guidance here – the IRS can drive a hard bargain, and you do not want to end up with a payment plan you cannot afford and wind up defaulting on it.
If you fall behind on the payment plan you agreed to, you could be subject to additional enforcement action, including the tax agency garnering your paycheck or seizing funds from your bank accounts. Getting the help of a tax resolution professional up front can help you avoid these serious consequences.
Explore an Offer in Compromise Settlement
If you are truly unable to pay the money the IRS claims you owe, you may be able to work out a (much) smaller lump sum payment. The IRS may not advertise this program, but they are often willing to work with taxpayers by accepting lesser amounts, especially if those taxpayers have little in the way of equity in assets and a limited income. Sometimes these settlements can be for a fraction of what’s owed, if you qualify. We offer a free no obligation consultation to find out if you qualify.
If you plan to explore this last option, it is critical that you work with a tax resolution expert. An offer in compromise can be extremely complicated, with legalese and language that can be difficult to understand. You do not want to make a misstep here, and you want to ensure that you are only paying the lowest amount, allowed by law, in settlement of your tax bill.
Few things are as frightening as getting a letter from the IRS. That official-looking letterhead is bad enough, but what the letter says is even worse. If you receive such a letter, you need to take positive steps right away. Ignoring the situation will make it worse and it won’t go away, and the sooner you start exploring your tax resolution options the better off you will be.
If you want the help of an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain all of your options to permanently resolve your tax problem.
Do you owe the IRS for several years?
We recently settled a $56,129 tax debt for a client who owed the IRS for 13 separate year periods – 2007 through 2019. Our firm negotiated a full settlement on the $56k tax debt for just $500. That’s right, this client settled their tax debts for less than 1% of their total 13-year liability.
It is pretty common for someone to come to our office owing taxes for numerous tax years. If you owe the IRS for several different years, call our office to see whether you qualify for an IRS Offer in Compromise!
According to a new tip from IRS.gov, if you rent your vacation home for less than fifteen days, you may not have to report it at all. This means, generally, that if you rent your home for 2 weeks per year or less, your rental income is tax free and you won’t need to show it on your return.
The IRS also reports that if you itemize deductions on Schedule A, you may be able to claim qualified mortgage interest, property taxes you pay, and eligible casualty losses.
Alternatively, renting your vacation property for fifteen days or more per year, the rental income you receive is always taxable and must be reported on your return using Schedule E. Claiming your expenses also becomes more complicated with many factors requiring consideration such as the number of days your rent versus the number you use the property yourself. The comparison of days rented versus days used by the owner effects which expenses they can claim, what they can deduct, and how they can be reported.
IRS Publication 527 reviews rental income and expenses, how to report them on your return, depreciation, casualty losses on rental property, and passive activity and at-risk rules.
Did you know that McCauley Law Offices, P.C. can help you with your tax planning needs? Contact us today to regarding all of your tax needs. When the IRS comes knocking, let our knowledgeable attorneys and staff answer.
Pawel Bartoszek, the owner of Mega State, a construction company in New York, was charged with filing false business and personal tax returns from 2015 to 2017.
During that time Bartoszek cashed more than six million dollars in checks paid to Mega State at check cashing businesses, instead of depositing the funds in the business bank account. He used the cash to pay the majority of his employees off the books, and on personal expenses. Bartoszek did not inform his accountant about the cashed checks, and did not declare any of the money on his business or personal tax returns.
He faces up to 18 years in prison and restitution to the IRS.