This might help you, or someone you know.
No matter whether you are one of our past clients, you still know people with tax problems. They are all around you. Some never got help. Some already had some tax resolution in the past. Tax resolution is supposed to be permanent. But sometimes tax problems come back. I know it’s frustrating if you had a past tax resolution, and are receiving IRS letters again,
Maybe it was not even your fault.
Let me explain the 3 top reasons why tax problems come back, and what to do about it.
Reason #1 – You Never Fully Understood the Rules
All tax resolution have conditions. But when your representation and the tax resolution are nearly finished, you just want it to end.
You. Just. Want. It. To. End.
Your tax lawyer always explains the basic 3 rules. But between the excitement and the frustration of resolution, it is very easy to miss these basic rules:
- Pay all resolution payments, as scheduled.
Sometimes you may miss a payment. IRS notices missed payments, and even if you make “catch-up” payments, IRS might not recognize that your larger check is intended to cover past missed payments.
Of course, some people can never even catch-up. The IRS notices that too. You can imagine how the government responds if your payments stop.
- File all returns on time.
Maybe this means that you need to hire an accountant. Or maybe you need to ask more from your accountant, to help you get your filing done correctly, and on time!
(Also, just FYI, we have several qualified CPA’s and accountants that we can refer. It helps to have the right help!)
- Pay your future taxes in full. See the special trick, below.
This is not easy to do. But it is easier when you use this simple trick: Remember that business accountant that I suggested you hire? If you speak with your CPA every three months, you can get a monthly budget for your tax payments. Paying taxes monthly helps to stay ahead of next April’s tax bill.
Make those payments every month, and you will have no surprises next April.
Reason #2 – The First Resolution Became Unaffordable
Most often, tax resolutions are based on your ability to pay. At TAX Law Offices, our process to determine your ability to pay is thorough. It has to be thorough, in order to find you most affordable solution possible.
But no client has ever enjoyed this process.
It’s hard to share these details with your lawyers. It is never a comfortable conversation to talk about your business and family’s finances, and then you still had the stress of an IRS problem.
You. Just. Want. It. To. End. (Right?!!)
Here is what I’m saying: Sometimes there are details that were never discussed, that would have made the resolution permanently affordable.
And it’s not your fault.
It’s nobody’s fault. It just happens.
If a resolution failed because it became unaffordable, get control. Take action. Make an appointment. Or make the call. Get us involved.
Reason #3 – Your Life Has Changed (Beyond Your Control)
Life does happen. Layoffs. Business downturn. COVID. Things change beyond your control.
Your resolution could have been based on your previous financial situation. But if your financial situation is completely different now. Things change beyond your control.
It’s not your fault. But if the problem returns, you still have to deal with it.
Here’s my advice:
If you are comfortable communicating with the IRS …
Then call IRS to explain your situation. Let the IRS Agent know what happened in your life. More importantly, explain your plan to get yourself “back into compliance”.
If you need help dealing with the IRS …
Contact us at Tax Law Offices. We pass no judgment. We just want to help.
Keep your relationship with Tax Law Offices. Good relationships are important to your business, to your family. Check-in sometimes. Let us know how all is going for you.
If your problem has returned, let us know. Let’s deal with it, together.
Keep your relationship with Tax Law Offices. Fair enough?