IRS. These are the three scariest letters in the American business lexicon. Are you hesitant to file your tax returns? Do you think you are over paying or under paying the IRS? The fact is that IRS problems happen to most businesses because they do not know how to keep accurate records or how to properly prepare and file their tax returns. Hiring a professional tax advisor is a wise decision to avoid IRS problems both from a personal and business standpoint. Here are some tips that may help you get out of the tax jungle.
Utilize the Services of a Tax Professional
Research and attain the services of a tax professional such as a CPA, tax attorney or an IRS licensed, Enrolled Agent (EA). These professionals can deliver the peace of mind that only properly completed tax returns can provide. A professional tax advisor can review your tax returns from years past and correcting any errors. They’ll see if you over paid or did not take all your entitled deductions. They can amend those returns, either reducing the amount you currently owe or file for money back.
Also, poor accounting practices or improperly prepared returns will result in any size business subjected to an IRS audit. This can result in fines and penalties which if accumulated over a period of time can cripple a business. An experienced tax specialist can handle the negotiations with the IRS and reduce or eliminate the amount owed.
Making Your Way Out of the IRS’ Financial Jungle
A CPA, tax attorney, or EA can also negotiate a reasonable payment plan with the IRS if necessary. This will allow you to make payments over a time until your taxes, fines, and penalties are completely paid off. Think of this as a loan for the money that you owe to the IRS.
The authors: Dawn Contardi, is a co-owner of Sharp Bookkeeping Service with 25 years of professional experience. She is a Certified QuickBooks ProAdvisor and a member of the American Institute of Professional Bookkeepers. John Florentino Jr., EA, Enrolled Agent focuses on advising, representing, tax planning, tax compliance and tax return preparation for individuals, partnerships (LLC’s), corporations, estates, and trusts and any entities with tax reporting requirements. Reach Dawn and John at 732-458-3800 or via our contact form.