Tax Debt Management: Avoiding a Run-In With The IRS

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In medicine, the adage “prevention is always better than cure” is nearly universal. Rather than curing every illness that the human body acquires, medical professionals should educate the citizens on how to live healthily so that any sickness will not grip their organ systems in the first place. Coincidentally, this dogma does not only apply to diabetes or hypertension. It also touches the topic of paying properly one’s taxes.

No one wants a run- in with the IRS. Surely, everyone would avoid it completely as much as possible. Banking on that thought, certain measures can be taken—and they are quite simple, thankfully. For instance, it doesn’t take a lot to pay attention to one’s Form 1099. If the taxpayer gets one of these forms in the mail, then they better open and read it.

Another thing to consider is that everything has tax consequences. Leases, purchase agreements, settlement agreements, employment agreements, independent contractor agreements, and other types of arrangements have taxes written all over them. They don’t need to be large transactions to be noteworthy. It’s best always to consider taxes before signing anything.

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Finally, one of the most important steps to take but the least emphasized and the least done of all is the keeping of records. Horrible record keeping is the number one cause of problems with the IRS. It takes a little bit of time to get used to since few people like to keep records and documents, but the benefits severely outweigh the inconveniences the practice causes.

Tax Tiger is a trusted name in tax resolution, with a number of offices across the United States, including California, Minnesota, and Colorado. Consult with one of its tax attorneys now by visiting this website.

Cpas Or Enrolled Tax Agents? Who To Hire During An Irs Audit

As the options for tax debt settlement have been diversified, different types of professionals can also be hired by taxpayers to address their concerns. However, the most well-known of these professionals are also those who have been in the business for decades: certified public accountants and enrolled agents. Below are the key differences between these two professionals:

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Certified Public Accountants. CPAs are licensed by state boards of accountancy to deal with financial investments, accounting, planning, and tax preparations. CPAs have expertise in bookkeeping and recording income and tax returns as well as attesting an audit of one’s business deductions, income, and expenses.

However, not all CPAs specialize in taxation and some of them specialize in more than one service, so they are not always focused on tax preparations, for example. Being licensed only by the state where they took the board exam, CPAs are also not mandated to handle out-of-state returns. They can also only accommodate a limited number of tax cases within a specific period.

Enrolled Agents. Enrolled agents are specialists in federal tax planning, individual and business tax return preparations, and representation during an IRS audit meeting. EAs give pieces of advise and prepare comprehensive tax returns for individuals, business establishments, corporations, estates and other entities.

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EAs can help taxpayers who have out-of-state returns, since they are granted by the federal government unlimited right to practice. They can also be hired in place of taxation attorneys to resolve IRS disputes. The latter professionals are known to command higher rates.

Tax Tiger is a reputable tax resolution company employing a team of ethical and highly competent tax specialists who possess a 14-year record of protecting hardworking individuals from tax pressures and problems. Know more about its services by visiting this website.

Understanding The Federal Tax Lien

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The Federal Tax Lien is a public document filed by the Internal Revenue Service (IRS) to individuals with tax debts. It is a legal claim on an individual’s property, including real estate and financial assets, as security for unpaid tax obligations. A lien is filed when a taxpayer fails to fully pay the debt after receiving notification from the IRS.

A lien is a public record, which means it could be accessed by different credit reporting agencies and would eventually appear on one’s credit report. As a consequence, this could limit one’s ability to get credit and to apply for loans. A federal tax lien also attaches to the taxpayer’s assets, such as properties, securities, automobiles, and even retirement accounts and residences. If the taxpayer fails to settle his or her debt on time, the government has a legal right to seize all the aforementioned assets.

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There a number of options for getting rid of a lien, including discharge of property, subordination, and withdrawal. These options are aimed towards reducing the adverse impacts of a tax lien for the best interest of both the government and the delinquent taxpayer. Although such options exist, it is best to avoid a lien altogether by filing and paying taxes in full and on time. The IRS also advises taxpayers not to ignore important notifications from the agency to avoid costly tax mistakes.

Tax Tiger helps thousands of individuals and businesses through their effective tax resolution services. Visit this official website for more information.