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Tax Secrets ...
IRS problems can be very overwhelming. The powerful arm of the
Government seems to have the time and resources to make your life miserable. You
need professional help from an experienced CPA. Carl T. Watkins specializes in resolving IRS problems and
understands how to use specific tax secrets so you can continue on with your life.
File all IRS Required Tax Returns on Time
If you filing your tax return late the IRS can charge you a penalty of up to 25%
of what you owe. The penalties can be applied to Individual Tax Returns, Payroll Tax Returns, or Corporate Tax
Returns.
Most people don't realize that you can file a tax return on time and avoid the
25% penalty even if you don't send in the money owed. It still needs to be paid and you will be notified by the
IRS, but you will have avoided a 25% penalty.
So, no matter what is going on in your life, file all tax returns on time even
if you don't send in the money owed with the return.
If the IRS sends you an Audit Letter requesting an Appointment...
You don't have to go or even personally talk with an Auditor.
It would be a bad decision to speak with IRS auditor yourself. The Taxpayer Bill
of Rights allows you to be represented by an experienced CPA who can answer questions on your behalf and provide
proper documentation to the IRS. If you try to handle your own audit or use a tax preparer who does not handle
IRS audits on a daily basis, the IRS can easily intimidate you and them. By not having a professional CPA experienced
in dealing with the IRS you might find yourself with an unfavorable outcome.
An experienced CPA will meet with the IRS (you do not need to be present), quickly
answer the auditors' questions, provide the necessary documentation, and come to a resolution.
Don't Pay IRS Penalties
The IRS has over 148 different types of penalties and charges interest and additional
penalties on the original penalty.
You need to get the IRS to reduce or completely abate your penalties to zero.
Penalties can often be reduced to zero if you show reasonable cause.
What makes up reasonable cause? Anything may qualify as long as it's reasonable.
The IRS has abated penalties for medical reasons, bad accountants, ignorance of
the tax laws, ex-spouses, helping them provide for a loved one, military call-ups, fires, floods, alcoholism, drug
abuse, death, and even for relying on IRS advice.
Penalties are a high percentage of the total amount owed to the IRS. It only makes
sense to request the IRS to reduce or eliminate your penalties.
Payroll Taxes - All Check Signers on Company Bank Accounts Can be Held Responsible
for Payroll Taxes
Each check signator may be held personally responsible for payroll taxes. Every
one of the check signers listed on the bank signature card. This often includes spouses, secretaries, employees,
relatives, office managers... or you.
NOTE: All check signers are responsibility to make sure all Payroll taxes are
paid to the IRS on time. You should get all non-essential check signers deleted from the bank signature card.
If your business gets behind on payroll taxes due to cash flow problems you should
know the penalties and interest assessed by the IRS for this type of delinquency are excessive. The total amount
owed plus IRS penalties and interest can grow by 50% to 75% in a relatively short period of time.
The IRS takes a very serious approach to collecting delinquent Payroll taxes and
may levy or seize company assets in short order. In this situation, your should not meet with the IRS Revenue Officer
who calls or shows up at your door to collect. Most often your answers to the first 5-10 questions will determine
whether you stay in business and if you or others will become personally responsible for the payroll taxes.
Seek a professional CPA experienced in meet with the IRS on your behalf. This
will allow you to concentrate on running the business and improving cash flow.
Avoid IRS Audits and If You Get Audited... End It Quickly
You can avoid most IRS audits by:
- Filing on time
- Reporting all income for which you receive 1099's or W-2s
- Avoid Schedule C
- Setting up a professional record keeping system
- Make your tax return reasonable. If not, attach an explanation.
Filing status, dependents, and expenses in relation to income - addition errors,
deductions on the wrong lines, deductions on the wrong forms, missing forms, and often messy looking handwritten
forms send up red flags. Usually people who get audited are self-employed with income and expenses reported on
Schedule C.
The most audited form to the IRS is Schedule C. Reporting losses on this schedule
from a business raises red flags at the IRS. By not filing the form Schedule C, your chance of being audited drop
dramatically.
Don't Pay The IRS... Negotiate
The IRS does negotiate on taxes owed, including all penalties and interest. The
requirements are rigid, but if you qualify the results are great.
If you meet these requirements you may find yourself paying the IRS only 10 cents
on the dollar for the total amount owing.
Understand the IRS wants you back in the system as a current taxpayer while collecting
a reduced amount on the old taxes owing. It requires you to file your tax returns on time for the next 5 years.
If you don't, the IRS revokes the negotiated deal and bills you for the original amount.
Above we listed a few tax secrets to help you avoid or prevent IRS problems. If
you're having IRS problems or believe your trouble is just around the corner, you owe it to yourself to seek help
now.
Call us TODAY at 813-884-7245 and let's discuss
your needs. We're looking forward to helping you at every stage of your financial life.
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