Every now and then, individuals and businesses run into tax problems – albeit small or large. This can lead to bad credit, the inability to buy or sell a home, or the inability to get a college loan. We understand these challenges and are here to help!
These problems can range from the missed filing of returns from prior years due to legitimate issues of health, travel or other qualifying circumstances. Or many individuals simply do not have the money to fulfill their tax liability obligations which can result in liens, levies and penalties from the Internal Revenue Service.
At Isaana Tax we have Enrolled Agents and a network of CPAs to assist you with resolving your tax problems by working directly with the IRS and ensuring you only pay what you absolutely have to!
In assisting our clients with the myriad of tax problems they face, some of the key services we offer are:
- Filing all unfiled returns for federal and state regardless of the reason for non-filing
- Work with the IRS to relieve levies and liens against your personal or business properties
- Reduce the amount you owe to the IRS by taking advantage of the many programs available
- Offer in Compromise
- Installment Agreements
- Penalty Abatement
- Currently Not Collectible
We also can obtain tax transcripts, account histories, past IRS letters and other tax account information directly from the IRS on your behalf. We talk to the IRS so you don’t have to!
The first matter of business with any tax problem or issue is to get you compliant with the Internal Revenue Service. All options to reduce penalties, release levies or other abatement procedures are not in the offering until you are compliant with all prior and current year tax filings. If you are an individual (1040s) or a business (1120, 1041, 990, etc) these returns must be filed for all years that taxes were due but not paid. If these returns were not filed, the IRS can produce a Substitute For Return (SFR) which is based on all reported income and bank records on file with the IRS without any deductions or credits. The SFR then generates a tax and penalty due for the taxpayer which is most cases, generates taxes due that are much higher than a return properly prepared by a tax professional which includes all applicable credits and deductions. However, determining these credits and deductions for many years in arrears can be difficult due to the changing tax laws and must be done carefully.
If you did not file your tax return on time or did not pay your taxes on time, you may be subject to two types of penalties:
Failure to File which is a result of not filing your tax return on time (April 15th for most individuals without an extension). This penalty is calculated from the date the return was due to when it was actually filed. The penalty is 5% for each month or part of month that the tax return is late up to the maximum amount of 25%.
Failure to Pay which is a result of not paying your tax bill in full. This penalty is calculated based on the amount of tax you owe. The penalty is 0.5-1.5% for each month the tax is not paid in full.
Accuracy Related Penalties arise out of two basic categories “substantial understatement” penalty and “negligence or disregard of the rules or regulations” penalty. These penalties are assesses a flat rate of 20% of the next underestimate of tax.
At Isaana Tax, we can help you navigate these assessment and determine your best path forward to compliance. We can gain access to your tax account by working directly with the IRS and give you an accurate assessment of the penalties and taxes due. This will then allow you to plan for remedies and other options if you are unable to pay in full.
Tax Resolution Options
At Isaan Tax, our Enrolled Agents are trained and well versed in all options available to you.
Although everyone’s tax situation is different, below are a few commonly used avenues for resolving tax issues, contact us today for more information.
- Offer In Compromise
- Installment Agreements
- Currently Non Collectible
- Innocent Spouse
- Injured Spouse
- First Time Abate