If you have back taxes to take care of, working with a tax relief specialist is the smartest way to go. Here’s why.
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In this article:
- Local Tax
- The Difference Between State Income Tax VS Federal Income Tax
- 32 Things Your Tax Accountant Won’t Tell You
- 3 Red Flags That Your Tax Accountant Is an Idiot
- The Best Online Tax Filing Software for 2019
- Credits and Deductions for Individuals
- Top 20 Tax Deductions for Small Business
- Types of Tax Relief for Individuals
- IRS Installment Agreements
- Bankruptcy vs Debt Settlement: Which Is Right for You?
- How Does Bankruptcy Affect Your Tax Return
- When Do You Need a Tax Attorney? What to Look for in a Tax Attorney
12 Reasons Why Working with a Tax Relief Specialist Is a Worthy Investment
1. Local Tax
Some taxpayers have yet to fully understand the coverage of local taxes imposed by municipalities, counties, and sometimes, states.
Speaking with an IRS relief specialist helps taxpayers better understand what local tax actually covers.
2. The Difference Between State Income Tax VS Federal Income Tax
State income taxes differ from one state to another. The same rule applies to tax breaks and tax brackets.
A lack of understanding of state and federal taxes, and how they relate to and differ from each other, has been one of the usual reasons why taxpayers accumulate back taxes.
3. 32 Things Your Tax Accountant Won’t Tell You
Yes, your hired accountant can compute what you owe to the IRS based on your collected receipts and invoices. However, they cannot give you expert advice on how to go about your back taxes, among other essential tidbits of tax-related information.
Keep in mind accountants aren’t as knowledgeable at taxes compared to tax relief specialists.
4. 3 Red Flags That Your Tax Accountant Is an Idiot
There is no shortage of tax accountants peddling their expertise. It is in your best interest to sift through them carefully.
Watch out for red flags. If your current accountant is not responsive, not proactive, and not on your side, you are better off working with someone else.
5. The Best Online Tax Filing Software for 2019
A tax relief specialist can also let you in on the most reliable online tax filing software currently available in the market. These software options can help you better manage future tax responsibilities.
Using a tax filing software can improve your tax payment routine and save you from future issues related to back taxes.
6. Credits and Deductions for Individuals
You can apply for a tax credit as an individual taxpayer. Tax credits can either be refundable or nonrefundable.
Getting IRS tax help from a professional will guide you through how tax credits can potentially impact your outstanding back taxes.
RELATED: IRS Penalty Calculator: Breaking Down Your IRS Late Fees
7. Top 20 Tax Deductions for Small Business
If you are the owner of a business, including partnerships, C corporations, S corporations, and limited liability companies (LLCs), working with a tax relief specialist can help you better manage your tax returns. Businesses are eligible for specific tax relief and deductions related to their incurred operational expenses within a fiscal year.
If you think an amelioration of your outstanding back taxes is possible by presenting receipts of business-related operational expenses to the IRS, a tax relief specialist can aptly walk you through the process.
C Corporation Definition: Any entity or corporation taxed separately from its owners.
S Corporation Definition: These are corporations that are not taxed at the corporate level. Shareholders are accordingly taxed at the individual level.
8. Types of Tax Relief for Individuals
There are various tax relief programs offered by the IRS. These options cover a wide range of possibilities, from deducting a specific amount from your back taxes to its complete elimination.
A tax relief specialist will share their knowledge and expertise on several relief options, like an Offer in Compromise or an Innocent Spouse Relief. Together you can plan out how to best deal with back taxes.
9. IRS Installment Agreements
The IRS provides installment agreement programs to eligible taxpayers with back taxes. These programs include Guaranteed Installment Agreements, Individual Payment Plans, Partial Payment Installment Agreements (PPIAs), and, should all else fail, Offer in Compromise.
Each of these options has its pros and cons. Moreover, you can only avail of a specific installment agreement if you qualify under its specific set of criteria.
10. Bankruptcy vs Debt Settlement: Which Is Right for You?
Filing for bankruptcy allows you to start with a clean slate, financially. Debt settlement, on the other hand, can take as much as 75 percent off of your outstanding back taxes, should your circumstances qualify for such financial leeway.
These two options are widely disparate and should be thoroughly discussed with a tax relief expert.
11. How Does Bankruptcy Affect Your Tax Return
Bankruptcy filings have two general categories: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy allows you to eliminate most of your unsecured debts. However, your secured debts, such as back taxes, must still be paid, with a few exemptions.
Chapter 13 bankruptcy protects your existing property from foreclosure or repossession. Full or partial payment of back taxes must still be made, depending on the agreement you make with the IRS.
12. When Do You Need a Tax Attorney? What to Look for in a Tax Attorney
You need to hire a tax specialist instead of a run-of-the-mill tax accountant if you are dealing with back taxes associated with more complicated tax categories, such as estate tax and international business taxation.
Just make sure that you do ample and accurate research before signing up with a tax relief expert. Do not shy away from asking for credentials as well as reliable references.
While it is totally fine to handle taxes on your own, there are scenarios that call for you to seek out an expert’s advice and assistance.
Working with a tax specialist affords you ease and peace of mind, and ideally, the tax debt relief you need. Some agencies even provide free tax relief consultations.
Remember, you cannot afford to settle with substandard tax relief services. When it comes to back taxes, you need no less than the best experts in the field.
Do you have stories to share regarding back taxes and/or working with a tax relief specialist? We would love to hear from you in the comments section below.
If you owe back taxes, visit taxreliefcenter.org for more information on tax relief options.
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