info@iloveaccounting.us
Always Open
+1 (407) 473 - 1323
24/7 Client Support
info@iloveaccounting.us
Always Open
+1 (407) 473 - 1323
24/7 Client Support
Taxation Services
Tax law is complex. That’s why it pays to have an accounting firm you can trust on your side.
Taxation Services
Tax regulations are in a constant state of change. We stay up to date on the changes that effect you. Our knowledge is always up to date. We are constantly engaged in continuing education in order to bring you the very best tax preparation service.
Business Tax Returns Preparation Services:
- S-Corporation tax returns (1120-S)
- Corporate tax returns (1120)
- Partnership tax returns (1065)
- Non-Profit tax returns (990 all variations)
Individual tax services
Personal tax preparation for both (1040) federal and state.
Planning and preparing your Estimated taxes for the four payments in each year and Consultations.
Based on your business trends and earnings, we advise you on your quarterly estimated payments to avoid any penalties and interest.
S Corp Election
You may decide to save on specific taxes and get benefits by converting your business into an S Corp. We can guide you in this area.
Dispute handling with the IRS
Notices and demands for tax payments from IRS are handled seamlessly.
Sales Tax
We will handle your sales tax work including e-filing for any state and help you resolve disputes with the authorities.
Penalty Abatement Tax Services
The IRS assesses penalties and interest on tax liabilities so over time taxes due years ago can increase from hundreds to thousands of dollars. The IRS will sometimes lower or eliminate these fees if we can offer a reasonable cause for non-payment or non-filing (death, illness, fire, lack of funds, etc.) We recommend paying the tax prior to making the request.
Common Types of Penalties
Filing late If you do not file your return by the due date, you may have to pay a failure-to-file penalty. The penalty is usually 5 percent for each month or part of a month that a return is late, but not more than 25 percent.
Failure to Pay Penalty
The failure-to-pay penalty is calculated based on the amount of tax you owe. The penalty is .5 – 1.5 percent for each month the tax is not paid in full.
Failure to File Penalty
The failure-to-file penalty is calculated based on the time from the deadline of your tax return to the date the return is actually filed. The penalty is 5 percent for each month or part of the month that the tax return is late, up to a total maximum penalty of 25 percent
Accuracy Related Penalties
The two most common accuracy related penalties are the “substantial understatement” penalty and the “negligence or disregard of the rules or regulations” penalty. These penalties are calculated as a flat 20 percent of the net understatement of tax.
What can we do to help?
Our tax professionals can help you to compile information and a written request to the IRS. We will help you structure a letter and the appropriate documents that will explain the reasons for your particular situation, and why you should be considered for penalty abatement. We will suggest the appropriate types of documents to gather and establish a case with these supporting documents that will serve as proof of your circumstances.
Non-Filed Tax Returns
Though it may take several years, the IRS will catch up with you if you haven’t filed your tax returns. Failing to file your returns is a criminal offense that can be prosecuted and punished with jail time. A delinquent taxpayer can serve one year of jail time for each year not filed.
We can give you peace of mind by helping you get in compliance. By voluntarily filing your delinquent returns, you’ll likely avoid repercussions other than interest and penalties. Waiting for the IRS to file for you will result in a return with few if any deductions, since the IRS will file a return that is in the best interest of the government.
All non-filed returns must be filed before you are back in compliance with the IRS. You will likely owe taxes, interest, and penalties after the returns are filed, and then we can determine the best plan of action to get you back in good standing.
Offer in Compromise (OIC) Services
Are you struggling to pay off your tax debt? There may be alternative IRS collection options available to you, including an offer in compromise (OIC). With an OIC, the IRS agrees to accept less than the full amount of tax debt you owe. However, not everyone will qualify for an OIC.
Our experienced tax experts can help determine whether you’re eligible for IRS collection alternatives and investigate whether your tax debt is fair and accurate.
How to Check Whether You Qualify:
The IRS has a useful tool to check whether you qualify for an offer in compromise. You can check your eligibility now.
Note that even if you meet all the criteria listed and the IRS tool says you’re eligible, this doesn’t guarantee the IRS will accept your offer — it only means you’re eligible to apply.
How to Get the IRS to Accept Your Offer:
Reduce Your Tax Liability With An Oic
If you qualify to apply for an offer in compromise, you’ll submit a payment with the offer application. The IRS provides a complete Form 656 booklet to help you apply for an offer in compromise. The first payment is typically around 20% of the total offer amount.
Next, the IRS will review your OIC application. Typically, it will ask for more information and additional time to assess your request. Eventually, the IRS will either grant or deny your OIC. Until you’ve finalized your OIC, you’ll need to file your taxes on time, pay in full, and make any necessary estimated payments.
If the IRS rejects your offer, the payment you made will go towards your tax liability. However, you may still appeal the rejection or explore other collection alternatives.
For one reason or another you may not qualify for the IRS Offer In Compromise program. If this is the case, an IRS Payment Plan may be the solution to your tax debt problems. Setting up a payment plan will give you additional time to plan for and pay off your tax debts.
The IRS will continue to charge penalties and interest on your outstanding debt, and you are legally required to pay this interest, but our specialists may be able to get your tax penalties removed.
WHO CAN REQUEST AN OFFER IN COMPROMISE:
The IRS will only agree to accept an offer in compromise in one of several scenarios:
Doubt as to Collectability:
You don’t have enough assets or income to pay off your tax debts in a reasonable amount of time.
Doubt as to Liability:
You can convincingly argue that the IRS made a mistake when they calculated your tax liability.
Effective Tax Administration:
You technically have enough assets or income to pay your tax liability, but doing so would cause economic hardship.
Other Terms and Conditions
If your situation falls any of the three major criteria we’ve listed, you’ll still need to meet the following additional criteria before you can receive an OIC.
- You must file all your returns
- You must be current with payments and withholdings
- You may be required to pay an application fee
- You must include an initial payment with your offer
- Your debt cannot have been confirmed or established by a final court decision
- You cannot be filing for bankruptcy
INSTALLMENT AGREEMENT SERVICES
AN INSTALLMENT AGREEMENT COULD HELP REDUCE OR ELIMINATE TAX PENALTIES AND INTEREST.
WHAT IS AN INSTALLMENT AGREEMENT?
If you’re unable to pay your tax debt in a lump sum, you might be eligible to make monthly payments through an installment agreement, which could help reduce or eliminate potential penalties and interest.
CONSIDER YOUR SITUATION BEFORE COMMITTING TO AN INSTALLMENT AGREEMENT
When taxpayers attempt to negotiate an installment agreement without representation, they often commit to a larger payment than they can afford. If you owe more than $10,000 in back taxes to the IRS , we strongly advise you to seek the help of a professional.
CURRENTLY NOT COLLECTIBLE
When the taxpayer cannot afford to pay the IRS monies due to a lack of assets and low income or no income ( recently laid off due to current economy) then the IRS will deem the taxpayer Currently Not Collectible and agree that enforced collection actions will be suspended during the time this remains a valid status. It is only temporary relief and does not eliminate the tax debt.
What Can We Do To Help?
Let our staff help you to compile a case with supporting documents that show you as a good candidate for the CNC status.
Dealing with the IRS on your own can be stressful and often damaging. If you are facing a tax burden of at least ten thousand dollars are more, contact us.
TAX AUDIT REPRESENTATION
The threat of a federal, state, or local tax audit can make even the most principled bookkeeper extremely nervous — and with good reason. Every year, millions of American citizens and businesses are audited, and every year, the IRS uncovers billions of dollars in income and revenue that isn’t accounted for. These IRS audits can lead to liens, levies, garnishments, and even foreclosures and closed businesses — as well as a heavy emotional toll on families and employees.
Not only can audits leave taxpayers broke and exhausted, but they could even lead to criminal charges if the IRS determines that you have been fraudulent or evasive in filing your tax returns. While rare, criminal penalties for tax fraud and tax evasion can result in massive fines and even lengthy prison sentences.
WHY DOES THE IRS AUDIT INDIVIDUALS AND BUSINESSES?
The IRS can conduct an audit to determine whether or not the amount of taxes you’ve filed is accurate. In most cases, this is due to some sort of issue with your returns, but that doesn’t necessarily mean you’re in trouble. In fact, individuals and businesses frequently receive larger refunds following an audit due to simple miscalculations or basic errors.
The IRS is fairly tight-lipped when it comes to why they choose to audit certain individuals and businesses. The agency claims that most of their audits are chosen at random, but there seem to be a number of red flags that can trigger an audit — for both businesses and individuals alike.
Here are a few of the most common reasons why the IRS audits individuals and businesses.
Underreporting or Failing to Report Income
All taxpayers are required to report all income in their tax return, but that doesn’t mean that all taxpayers do. Sometimes it’s a simple accounting mistake while other times it’s based on a misunderstanding of tax law. Either way, failing to report income or revenue on your tax return is an obvious sign to the IRS that they need to examine your tax filing further. (Note that the IRS receives copies of all your income reports, so they’re fully aware of any discrepancies between what you report and what you actually earned.)
Excessive Business Expenses
Reporting abnormally high business expenses, home office deductions, or charitable deductions can get you in hot water with the IRS quickly — especially if these expenses or deductions are blatantly incommensurate with your personal income or business revenue.
Always be sure to keep an honest, accurate, and up-to-date accounting of all your finances and save receipts for every relevant expense.
Clerical or Math Errors
Not many business owners or individuals would list filling out their tax returns as one of their favorite hobbies. It’s kind of a pain and can be really tempting to complete haphazardly. This is a really bad idea, as even the simplest math errors or profile mistakes could trigger an IRS audit.
If the IRS notices that you’re continuously rounding your numbers or that there are inconsistencies among your figures, they’re going to take notice and take action. The good news is that if you’ve made basic errors on your tax returns, you can take appropriate action to correct those mistakes and get back in the IRS’ good graces.
WHAT IS THE TAX AUDIT PROCESS?
The IRS uses objective and subjective analysis to choose who to audit. They have various computer programs and algorithms to identify discrepancies, and they also enlist good old-fashioned human analysis to determine whether or not to audit an individual or business.
An IRS audit can be a frightening ordeal. Audits take a significant amount of time and require you to gather records and information substantiating each and every item reported on your tax return. The IRS will leave no stone unturned to determine the accuracy of your tax return, and if you do not comply then your taxes will be recalculated and you will be hit with a hefty tax bill.
Many taxpayers try to handle an audit alone, but the complex knowledge required to go through an audit – and to provide only what is legally obligated – is often lacking. IRS auditors may prey upon a taxpayer’s ignorance, take advantage of that ignorance, and send a bigger bill for tax deficiency.
With us as your IRS Audit representative, you won’t have to take time off from your business, job, or family. You may never have to even talk with the IRS. We handle all the bureaucracy and paperwork from A to Z so you won’t lose time, wages, or business.
Tax Resolution and IRS Representation Services
If you’re facing a tax problem, turn to the professionals at I Love Accounting, LLC. By representing yourself in a tax-related matter, you could end up losing out on valuable insight that could impact the amount you end up owing and the repercussions you end up facing. Don’t take chances when our team is on hand to help. We’ll work our hardest to alleviate your stress as well as your tax burden while providing the advice you need to make smart financial decisions going forward
Don’t face your tax issues alone. Turn to Federated Tax Services, and let us put our tax resolution services to work for you. Call now for more information or to schedule a consultation.
I Love Accounting, LLC
Innocent or Injured Spouse Relief Services
Innocent Spouse Relief is a program designed to resolve tax debt that results from a situation in which one spouse is the victim of fraud perpetrated by a spouse or ex-spouse. If you owe taxes due to fraud or misdeeds committed by a spouse, you may be able to get relief.
WHAT IS INJURED SPOUSE ALLOCATION?
If you filed a joint return and your tax refund was applied to your spouse’s past tax debts, you might be able to recoup that money by requesting injured spouse allocation.
DO YOU QUALIFY AS AN INJURED SPOUSE?
To qualify, both of the following must be true:
1. You are not personally required
2. to pay the tax debt
During the year in question, you:
- Reported earned income on a Form 1040
- Had income taxes withheld from your pay
- Made estimated tax payments
Unfortunately, there are certain statutes of limitations related to tax relief, so please contact us as soon as possible.
Get Your IRS File
The IRS maintains a file on every taxpayer, with a wealth of information about you. Your IRS file can be a critical component in analyzing options for resolving tax debt and other tax problems.
You can get a copy of your IRS file, but it is important to enlist the assistance of a tax professional who understands how to obtain an IRS file without raising any red flags. A tax professional can also help you interpret the information in your file.
Work with us
If you are interested in a prosperous future from a personal and/or business standpoint, reach out to our team of dedicated specialists. When considering accounting, audits, tax or business consulting, one call can make all the difference. Click here to get started – we look forward to working with you!
* We have the right to use the Professional Tax Agent logo! The logo can only be used by persons who have the status of an Enrolled Agent and meet all the requirements of Circular 230.
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