^{Statute of Limitations on IRS Collections}

CPA Serving Atlanta GA & Beyond

^{Knowing the ins and outs of tax law can do much to help you along the way to make sure all of your tax issues are well understood and handled. Tax law is complicated, understanding some of the individual nuances will always be of great assistance. One way to be sure that you do not run afoul of a few of the basics will help you make wise and informed decisions. Just as a physician first strives to get a good understanding of the patient, their history and their symptoms before offering a diagnosis, so it is critical for a CPA to understand the underlying causes and tax problems, to address their causes and effects and to review original source documents that originally caused the liability to start with. If the taxpayers proceeds with haste rather than wise and judicious discernment, they may well lead themselves to far greater financial pain than originally existed. These basic tenants of IRS Statutes of Limitations will do much to enlighten potential tax opportunities and planning:}

^{Statute of Limitations on Refunds}

^{If you file a corporate or personal income tax return more than three years after the original returns due date, then any attendant refunds are lost forever. You cannot apply them to other outstanding years, you can not apply them to future years, as you get absolutely no credit for them at all. This is perhaps one of the greatest tax tragedies as I have personally witnessed taxpayers who would have otherwise received thousands and thousands of dollars of refunds forever legally lose their claim to any potential refund. Unfortunately there are no appeal options and once the three year statue lapses, it is over, you “cannot pass go” and your refund is forever lost.}

^{Ten Year Collection Period}

^{There is a ten year Statute of Limitation on the Internal Revenue Service ability to collect taxes. The ten year statute begins generally form the date the original return was filed or when the tax was assessed by the IRS. During the ten year tax period the IRS is able to use all of its collection tools including liens, levy, garnishment and seizure to protect the rights and interest of the Treasury Department/United States government. After the ten year period lapses the tax is no longer assessable by the Service. However during the ten year period, the taxpayer and the IRS may jointly agree to waive the ten year statute and extend the collection period. This may be advantageous when a taxpayers ability to pay may be improving and enforced collection efforts might prove to have disastrous effects.}

^{Suspension of the Waiver Period}

^{Generally speaking the statute of limitation period lapses after ten years after the return is originally due, filed or assessed. However there are several items which can legally extend the time period that the IRS has to collect outstanding monies. For the items below, the ten year statue is extended for the time the following events were occurring.}

^{Installment Plans. The time that a taxpayer  is on a on a plan making regular monthly payments/an Installment Plan is not counted as part of the ten year periods lapsing and is therefore added to and extends the ten year original period.}

^{Suspension of Collection Efforts. If the IRS suspends collection efforts for a time in a effort to work with the taxpayer during legal or tax filings, this period as well is added to the ten year period when determining the statute of limitations. The most common examples of these would be time periods covering Installment Plans, submission and consideration of an Offer in Compromise and the periods covering that of a Bankruptcy filing.}

^{Tax Fraud. In the event that a taxpayer commits tax fraud there is no statute of limitations on either collections or for the auditing of applicable returns.}

^{Often toward the end of the ten year period, taxpayers will discover that collection efforts intensify as the Internal Revenue looks to collect any open tax monies due.}

^{Written by author John Dillard CPA of His CPA at 770 814 9304 and visit http://www.hiscpa.com/ (a Christian CPA firm). At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.”}

^{We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.}

^{Serving New York, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San Jose, Detroit, Indianapolis, Jacksonville, San Francisco, Columbus, Austin, Memphis, Baltimore, Fort Worth, Charlotte, El Paso, Milwaukee, Seattle, Boston, Denver, Louisville, Washington D.C., Nashville, Las Vegas, Portland, Oklahoma, Tucson, Albuquerque, Long Beach, Atlanta, Fresno, Sacramento, New Orleans, Cleveland, Kansas City, Mesa, Virginia, Omaha, Oakland, Miami, Tulsa, Honolulu, Minneapolis, Colorado Springs, Arlington}

Preparing for & Surviving an IRS Audit

CPA Serving Atlanta GA & Beyond

As we watch gifted athletes do what appear to be miraculous things on the field of play, we often fail to keep in mind the endless hours of preparation, practicing the basics and coordination that went into playing and excelling at such a level. For just as “failing to prepare, is preparing to fail” so it is with all walks of life. Most IRS audits, though they feel extremely personal, are predominantly a pure random selection. It is solely a matter of your number coming up. In any given year, a taxpayer, whether business or personal, has approximately a one to two percent chance of being selected and audited. If and when your number is called for an audit and you receive that tax notice in the mail, it is time to prepare and to prepare well. These steps will guide you to audit success with the goal of no adjustments always being the final result:

Retaining a CPA as Power of Attorney

“Even now my witness is in heaven; my advocate is on high.” Job 16:19  Just as Believers we have an advocate in Heaven who will go before us representing our heart, intentions and actions so should be wise stewards and surround ourselves with wise counsel. Hiring a CPA who can be a tax advocate is your best first step in the process. Having someone who is familiar with the audit process, tax law and collection issues is imperative to ensuring that your best interests are always represented. Having a wise understanding of the needs and skill a good CPA will provide will enable you to make a sound and judicious  business and tax decisions. “Plans fail for lack of counsel, but with many advisers they succeed.”  Proverbs 15:22 

Prepare, Prepare, Prepare

In the New International Version (NIV) of the Bible the issue of preparation is detailed one hundred seventy six times making it clear that planning is a key tenant in both success and order. The basic first step in preparation is to consistently do the right thing over and over regardless of the circumstances. Keeping good records, documentation and copies of required receipts is something that should never go out of style. Each and every tax year’s data should be well-organized so that you are ever ready and if called to task for any task item required, you will be well armed and able to address and answer any tax questions. Saving copies of tax records, board of directors and shareholder’s minutes, annual registrations and income tax returns is critical to ensure that you will have all the necessary paperwork and documentation that would be needed, in the event of an audit. Automobile expenses are frequently the bane of many in addressing audit questions and their positive resolution; having a by day mileage log to support all of your business miles will help detail and support this deduction. Being aware of what documentation is required for proper tax documentation and recordkeeping to validate tax deductions, will be an invaluable asset to being ever ready, if called to task, to prove or validate a deduction. In order to best understand what is a valid tax deduction and the recordkeeping required visit the below fine articles.

 Finding (and Tracking) Business Tax Deductions               http://www.hiscpa.com/maximizing-deductions.html
Whether you are a new business owner or have owned your company for years, missed business deductions are a consistent cause of concern. Find new ways and methods to improve your business tracking skills.

Business Expense Documentation              http://www.hiscpa.com/business-expenses.html
Business expenses and their adequate documentation is key to running a successful business.  Learning the ins and outs of what is required will both raise the efficiency of how you run your business and ensure that you always have proper documentation in the event of an audit.

Handling Automobile Expenses             http://www.hiscpa.com/autos.html
Vehicle expenses are perhaps the most discussed while still being the least understood of all the tax code sections. Discover how this section of tax law can be made simple so that all might understand.

Tax Expediency and Responsiveness

When that tax notice first arrives there is a tendency to put it aside and to deal with it when we have to by waiting for the last possible moment, rather than addressing it expeditiously as we ought. Setting the notice aside is a sure fire way to ensure your audit experience is going to be worse than it needs to be. Initially retaining a CPA to address all of your audit issues is your best first line of action naming your CPA as your sole and exclusive representative to talk to the IRS field agent on each and every audit issue. Accordingly it is usually best not to have the business owner or taxpayer involved in the actual performance of the audit itself, leaving all of the interaction on all of the tax and documentation issues to the CPA. Having all of the requested information well-organized and ready for the tax examination as well as thoroughly explained in writing an integral component of audit success.

In our world of technology and specialization, understanding the general nuances of how an audit works will do much to make an unexpected audit go smoothly. Having an advocate, understanding documentation requirements and being prepared will ensure a far better audit result. Keeping in mind the goal of having the IRS accept all filed returns to be correct as filed, that there are adjustments to be made, and most of all that there are no additional monies due will help keep ensure that both the audit itself and its result are maximized to your best advantage.

Written by author John Dillard CPA of His CPA at 770 814 9304 and visit http://www.hiscpa.com/ (a Christian CPA firm). At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain and Decatur, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock

Tax Problems, Resolution and Advocacy

CPA Serving Atlanta GA & Beyond

Working through tax problems is not as easy as they make it sound on television ads. You cannot just meet with an IRS representative, file an Offer in Compromise or get on an installment plan and all will be better. The last national acceptance rate that I saw published the rate of successful completion of Offers in Compromise to be approximately 22%; this means that you would have a 78% chance of failure. As a Body of Believers we are all called to submit to authority and to that end we should all pay our just and fair taxes. Our tax system is one of voluntary compliance and to this end we should and need to stay true. But there are many options when dealing with tax issues and there is not a one size fits all mentality that should be applied to resolving tax issues. These ideas will help you begin to understand what is and what is not in your best interest in dealing with your IRS or state tax problems.

Tax Liens, Levy, Levies and Garnishments. The Department of Treasury/Internal Revenue Service has many tools in its tool box to encourage you to pay promptly. The ultimate in all professional representations should be to avoid as many of these as possible with the goal of preventing an undue headaches, which may occur when Tax Liens, Levy, Levies and Garnishments occur. All of these are effective means the IRS has at its disposal to encourage and indeed force collection of open and due tax monies. It is most wise to deal proactively with back tax  and payment issues to ensure that enforced collections are not necessary as they do much to limit your possible options for successful tax resolution.

Tax Relief. Tax Solutions. Tax Help. Each and every situation is different. Like snowflakes, there are no two tax situations that are the same. Though you may feel you need a tax attorney, and your might if going into tax court, most all tax issues may be resolved well before the collection process goes “legal”. Frequently taxpayers with several years worth of tax returns to both file and pay are well served by a CPA who is well versed in tax preparation issues and the IRS collection process as well. The goal of all parties should be for resolution of issues “for once and for all” and to get back into the system as a “compliant taxpayer” by both filing and paying all future taxes on a timely basis.

Tax Options & Alternatives. Tax representatives who offer to “settle for pennies on the dollar” may not always have your best interests at heart, as there should not a one stop way to fix all tax issues. For example, many who originally feel they are best suited for an Offer in Compromise or an Installment Agreement soon learn that these are not in their best interests. Many who initially are set out up on a payment plan to the IRS soon thereafter discover that the penalties and interest are growing more rapidly than the amount of their payments, thus continuing their downward financial spiral. Similarly, Offers in Compromise are often submitted for taxpayers for who are not good candidates for the Offer Process itself. Care should be taken on the front end to verify that all candidates for an Offer in Compromise are well-suited and are well-qualified candidates for this process.

Taxpayer Advocate. Find a CPA who looks after you and to whom you believe has your best interests at heart. Check references, meet face-to-face, gain a good understanding of the CPA’s depth of knowledge and understanding of not only what created the tax issues but also your ability to communicate with him/her. Also be sure that your CPA, does not have a “program” and an “up-front fee”. Payment as services are rendered, such as one would do with an attorney or a physician is your best bet to stay in tune with all actions done on your behalf.

Working with the IRS. Working with the IRS, rather than against it, is your best option to ensure that both your rights as a taxpayer and U.S. citizen are protected and that you solely pay the taxes, which are due, using every option that a CPA has available. The collection process and representation issues take time. To learn more visit these fine articles:

Solving IRS Tax Issues
Don’t fight the IRS but work with them to resolve your tax problems. Discover a myriad of legal ways the IRS is eager and willing to work with you to resolve any unpaid debts, penalties, and interest.

Paying Your Taxes - Withholding and Extensions
Paying your taxes made easy. This section will enable you to quickly grasp the general guidelines of tax law requiring that you pay taxes as you earn money. As well, extensions and their uses and limitations are disclosed and discovered.

How to Avoid an IRS Audit
Discover simple steps that you can do to help prevent an IRS audit. Though the tax code is at times very difficult to understand and comply, these basic simple steps will help you avoid an IRS audit.

Solving IRS Tax Problems: Submitting an Offer in Compromise
When all else fails and if you qualify, the IRS and Georgia both have a program which will enable you to work to solve the severest tax problems.

Written by John Dillard CPA of His CPA at 770 814 9304 and visit www.hiscpa.com (an Atlanta Christian CPA firm). At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.” We advise clients on: IRS representation, Offer in Compromise, Incorporation in GA, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain and Decatur, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock

Submitting an Offer in Compromise: Which Tax Forms to Use 

If you have a large tax bill owed to either the IRS or Georgia, there is a tax process called the Offer in Compromise which may be well suited to help you get beyond the mountain of tax debt and to negotiate a fair and just settlement with the IRS. The process requires you to be current on all of your tax filings and payments, thus the Internal Revenue Service or Georgia will first need to be able to verify that all of your respective corporate and personal income taxes, payroll taxes, and sales tax reports have been appropriately filed. If you are a corporate taxpayer or have been a proprietorship and have a payroll, the IRS will need to be able to ascertain and confirm that you are current on these payments and filings as well. If you are doing an Offer in Compromise to the state of Georgia then having your payroll reports, income taxes and payments current as well as any applicable sales tax reports will also be a pre-requisite to submitting an Offer.

Submission of an Offer in Compromise. Filing of the Offer Form (Form 656), the Collection Information Statement for Wage Earners and Self-Employed Individuals (Form 433-A), and the Collection Information Statement for Businesses (Form 433B) are the core paperwork to be initially submitted with the Offer  in Compromise. Attendant with this filing is wide host of required documentation which needs to be submitted with the Offer to validate the deductions claimed.

Form 656: Offer in Compromise. This form is the actual Offer itself. The Offer when submitted to the Internal Revenue Service needs to include a check for $150 along with a check for at least twenty percent of the amount you are  proposing to settle your total outstanding taxes. On the Form you will also indicate how the balance of the monies will be paid after an Offer in Compromise is accepted. Generally the best option is to pay the balance within thirty days of acceptance of the Offer, although by law the IRS can extend a payment schedule for up to two years.

Form 433A: The Collection Information Statement for Wage Earners and Self-Employed Individuals. This form is used by all taxpayers who are filing an Offer in Compromise for tax monies, which they personally owe. Accordingly for all those who receive a paycheck with payroll withholding or have a business proprietorship will utilize this form to file along with Form 656. This form will list all of a taxpayers (and if a joint offer, their spouse as well) assets, liabilities, credit lines, insurance values, retirement plan balances, monthly cash inflow and outgo in accordance with prescribed IRS criteria. Attendant to the forms instructions there is a wide host of documentation which also should be attached including monthly pay stubs, bank statements, billings/statements, and proof of expenditures.

Form 433B: Collection Information Statement for Businesses. If you are submitting an Offer in Compromise for your business for either payroll taxes withheld and not paid or for unpaid income taxes if a C Corporation, then you will use Form 433B for the submission. This schedule will also list all of the assets and liabilities of the business along with a profit and loss showing the year to date profit for the current year. Most of this information can be obtained from the company’s internal books and records (i.e., their balance sheet and profit and loss). Details of where the company banks, account numbers, loans, loan numbers, offsetting balances, monthly payments are examples of the additional information which will also need to be supplied. Copies of items such as the last three monthly bank statements, open accounts receivable and accounts payable detail will also need to be provided.

Generally an Offer in Compromise will take at least a year to process and it is not a task you will want to take on without the skill of a good Atlanta CPA to guide you along the way. 

Contact John Dillard CPA of His CPA at 770 814 9304 and visit www.HisCPA.com

At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.”

We advise clients on: IRS representation, Offer in Compromise, Incorporation in GA, Corporate and Personal Income Taxes, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond. 

Back Taxes, Liens, Levies, IRS Problems, IRS Representation, and Offer in Compromise

When the IRS Tax notice arrives always remember to first breathe deep and then to contact a good CPA you can trust. Tax notices are always based upon information solely that the IRS has. A good CPA, who also specialized in tax representation issues, can bring information to light that will frequently dramatically lessen the amount of tax owed and perhaps even the totality of the bill. For example, if your business received Form 1099’s indicating earned business income that is most often all that the IRS knows and if you have not yet filed your return. Accordingly in this instance, the IRS will not be aware of the many valid business expenses you might have against same for which a CPA can help you file the right returns and address.

Offers in Compromise. These are still great options for those who qualify but I suggest retaining only those with a proven track record and to pay for professional fees as they are delivered rather than up front. In this way you will by nature of the relationship with the CPA, have a much more interactive and communicative relationship as this tax issue is addressed.    http://www.hiscpa.com/working-with-the-irs.html

Tax Liens & Levies. Having a CPA who is well versed in these areas will do much to make sure both your rights as a taxpayer and U.S. citizen are protected as well as to see that collection efforts, where appropriate, are deferred to allow you and your CPA ample time to address sensitive and complicated tax issues.      http://www.hiscpa.com/offer-in-compromise.html

IRS Representation. Just as you would not go into a court battle without an attorney so should you not try to address critical business and personal tax issues without a CPA who can guide and assist during this process.     http://www.hiscpa.com/irs-audit.html

IRS Problems. IRS Problems do not have to be permanent and working with a CPA who knows the ins and outs of how both the IRS and tax law works will do much to mitigate your pain and financial outlay.    http://www.hiscpa.com/avoiding-audits.html

IRS Issues and those to states as well can be solved. Working hand in hand with a seasoned and wise CPA will do much to resolve these past issues so you can get on with the living of today.

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, and Decatur.

Solving IRS Tax Problems & Offer in Compromise in Atlanta                   www.HisCPA.com

At His CPA PC we work hard helping clients with Solving IRS Tax Problems and with their Offer in Compromise. We work the old fashioned way by working to make sure you pay your lowest legal tax. Discovering how the IRS process works will help you learn what you can do to help keep your head above water. Contact John Dillard CPA today at 770 814 9304.

 How to Survive an IRS Audit: A Taxpayer’s Guide to Success

How Audits are Selected
Learning about how audits are selected is the first step to discovering how to overcome the emotional and financial distress that normally occurs as part of the audit process. Lifting this veil will help keep you on an even keel in learning how to deal with the IRS audit.       www.hiscpa.com/irs-selection

When the IRS Notice Arrives
Rather than beginning the process in fear, discover how you can better prepare yourself so that you are not surprised at the audit process and its ultimate results. By seeing through to the other side you can best ready yourself to close your audit with no adjustments and no additional monies due.     www.hiscpa.com/irs-audit

Working with the IRS: Keeping your Tax Bill Manageable and Under Control

Solving IRS Tax Issues
Don’t fight the IRS but work with them to resolve your tax problems. Discover a myriad of legal ways the IRS is eager and willing to work with you to resolve any unpaid debts, penalties, and interest.    www.hiscpa.com/working-with-the-irs

Paying Your Taxes - Withholding and Extensions
Paying your taxes made easy. This section will enable you to quickly grasp the general guidelines of tax law requiring that you pay taxes as you earn money. As well, extensions and their uses and limitations are disclosed and discovered.  www.hiscpa.com/paying-taxes

How to Avoid an IRS Audit
Discover simple steps that you can do to help prevent an IRS audit. Though the tax code is at times very difficult to understand and comply, these basic simple steps will help you avoid an IRS audit.   www.hiscpa.com/avoiding-audits

Solving IRS Tax Problems: Submitting an Offer in Compromise
When all else fails and if you qualify, the IRS and Georgia both have a program which will enable you to work to solve the severest tax problems.   www.hiscpa.com/offer-in-compromise

Contact John Dillard CPA of His CPA at 770 814 9304 and visit www.Hiscpa.com

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond.

Working with the IRS

IRS rules are set out to assist those who are attempting to comply and to encourage all of us, either willingly or not, to file and pay our just and fair taxes. Tax laws, though complicated to the lay person, are often confusing.  A CPA can help people navigate through the tax maze by making the complicated easier to understand. By seeking and following the advice of a trusted professional we are able to comply with tax law with the least amount of pain and aggravation. By not filing returns, not paying amounts owed when due, and attempting to tackle complex tax issues, we do not have the skill or wisdom to adequately address, many fall prey to our general inability to understand all of the nuances involved. A Good CPA can help address and solve tax issues.

Tax Problems

The best first issue is to review the reasons for the assessment. Many times during this process it is discovered that it is not a payment issue but the original returns filed need to be amended. After the determination of a just and fair tax, one can begin to adequately assess and make arrangements for the monies due. Great care should also be taken during this time to ensure that all payments and credits have been properly applied to the balance owed

Trust Fund Monies

In the event your business has employees or collects sales tax, the monies withheld from payroll and sales taxes collected are technically withheld “in trust.” As such they have legal exposure to both the company for payment, as well as those personally responsible parties who knew about and controlled such payments. A responsible party is generally defined as those who were most/responsible for payments that would well extend to check signers, accounts payable, officers, and financial staff. This assessment is for one personally who collected trust monies which they unduly did not remit to the appropriate taxing/legal authority. As these monies are withheld in trust, they do not belong to the company/business. Both the IRS and individual states take a very dim and stern view of all those who unduly use their money. A 100% penalty may be assessed to the responsible parties making them personally responsible for any collected and unpaid trust fund monies.

If a business is not able to pay its staff payroll taxes/remit collected sales taxes as due, it is a clear warning side that the business model is upside down. Though most times it would indicate that the margins of a business are not adequate to support the business’ present staffing levels and overhead, it could also be an indicator that the business is not properly leveraged/financed.

Installment Agreements

The IRS will work with taxpayers to pay the monies owed over time. This option requires the taxpayer to file a form requesting that a specified amount be paid monthly over time. The IRS then has to accept the plan prior to it becoming effective. Though this is a practical way to address a larger balance over time it does not stop the assessment of penalties and interest which will continue to accrue until all monies are paid in full. Thus, it is most advantageous to consider procuring the funds from other sources as these finance/carrying charges are usually much less than that of the Internal Revenue Service.

Failure to File Penalties

Failure to File Penalties are assessed in addition to normal penalties and interest for those who do not make their payment and filings on a timely basis. Please be reminded that an extension does not allow a taxpayer to pay at a later date, as income taxes are generally due and payable as they are earned. However, a situation is greatly exasperated when a taxpayer does not file their taxes on a timely basis. Thus it is financially most advantageous to file a return even if a taxpayer does not have the monies to pay a return as the monies become due.

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond.