WAYS TO GET TAX DEBT RELIEF IN HOUSTON

If you owe back taxes to the IRS, you may need to hire tax debt advisors to help you. Here are four options you may have in seeking small business tax help.

In 2016, 22% of small business owners didn’t know what their effective tax rate was, according to CNBC Small Business Survey.

We get it — taxes are complicated. But if you’re behind on paying them, they get even more complicated, and quickly.

 

If you owe back taxes to the IRS, you may need to hire tax debt advisors to help you. To help you understand your options and determine your way forward, the following are four options you may have in seeking small business tax help.

NEED HELP WITH AN OFFER IN COMPROMISE, TAX DEBT HELP, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

 

ADVANCE TAX RELIEF LLC

Call (713)300-3965

www.advancetaxrelief.com

BBB A+ RATED

 

IRS Payment Plans

If you require extra time to pay your tax bill, the IRS will probably accommodate you. Tax debt advisors can help you set up a payment plan with the IRS so you can pay back your debt in regular installments.

 

There are some things you should know about payment plans. First of all, having a payment plan setup doesn’t make you exempt from having to pay penalties and interest on what you owe. As long as your balance is above zero, those will continue to accrue.

 

Second, if you owe more than $25,000 you will need to make your payments in the form of automatic withdrawals from your checking account. If you make payments using a debit or credit card, you will have to pay an additional fee. This fee is usually between $2 and $4, or 2% of the payment.

 

Offers in Compromise

If you absolutely cannot pay your tax debt off without causing serious financial hardship for yourself, you may qualify for an offer in compromise. This option allows you to settle your back taxes for less than you actually owe.

 

To decide if you qualify for an offer in compromise, the IRS will consider your ability to pay, your expenses and income, and how much you have in the form of assets.

 

If the IRS accepts your offer, you will have to make an upfront payment that equals 20% of whatever you’re offering to pay. Also, some of your personal information could be made public. Details such as your name, city, state, liability amount, and offer terms could go into the IRS’s public inspection files.

 

Even though it is a possible option for those with lower income or higher expenses than usual, more than half of all people who request one are turned down. Because of this, you should explore other options before attempting to qualify for an offer in compromise.

 

“Currently Not Collectible” Status

If you cannot currently pay your taxes and necessary living expenses, you may speak with the IRS about placing your account in “Currently Not Collectible” status. You will need to request this delay in collection and you may be asked to fill out a Collection Information Statement to prove that your finances truly aren’t adequate to pay back your taxes. You will need to provide information about your monthly expenses and income on that form.

 

It’s important to note that being deemed “Currently Not Collectible” is not permanent. It does not make your tax debt disappear. In fact, the IRS could still file a tax lien against you.

 

Once a year, the IRS will probably review your income again to see if your financial condition has improved. In the meantime, acquiring “Currently Not Collectible” status can give you the chance to catch up on your finances.

 

Hiring a Tax Relief Company

It’s not uncommon for tax debt advisors and tax relief companies to help taxpayers in distress. This can be quite helpful, especially if you aren’t sure how to fill out the forms you need. Taxes are complicated and there’s clearly a wide margin for error. Many people get into trouble with the IRS just for accidentally filling out a form wrong. Tax debt advisors can help you avoid this.

 

Before you work with a tax professional, you should make sure you understand exactly how they can help you and exactly what they will charge to do it. Many taxpayers simply don’t qualify for the relief programs that these companies advertise, so you want to make sure it’s a good fit for you before paying.

 

Being in trouble with the IRS can feel like a scary experience, but it doesn’t have to be. With the right guidance, good information, and a reasonable amount of care, you can get your taxes and your finances back on track.

 

Contact Advance Tax Relief to Help Deal with Back Taxes

If you have a tax levy on your paycheck or the IRS is threatening you with one, you need a tax professional who specializes in tax debt relief on your side.

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today at (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies

WHAT HAPPENS IF I DON’T PAY PAYROLL FORM 941 TAXES?

Business Taxes

Small Business Taxes

Payroll Tax Help 

 

If you pay people to work for you, you are required to collect and pay payroll taxes. The IRS receives 70% of its annual revenue from payroll taxes, but 18% of the tax gap is due to unpaid or unreported payroll taxes. This tends to upset the IRS. 

What if you're part of that 18%? That's what this post is about. You can make this right, but like unpaid income taxes, unpaid payroll taxes incur penalties and interest. 

 

NEED HELP WITH AN OFFER IN COMPROMISE, TAX DEBT HELP, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

 

ADVANCE TAX RELIEF LLC

Call (713)300-3965

www.advancetaxrelief.com

BBB A+ RATED

 

Defining Payroll Taxes

The term payroll tax covers a little ground. In general, it means all employment taxes applying to your business. Those taxes can include:

 

Income taxes

FICA taxes

Unemployment taxes

Other taxes - state and local

FICA includes Social Security and Medicare withholdings while income tax is withheld according to your employee’s W-4. Federal and state governments require you to pay unemployment taxes to help them pay unemployment benefits as needed.

 

Federal and State Taxes

Federal income tax is due monthly or semi-weekly and reported on Form 941, Employer’s Quarterly Federal Tax Return. State and local income taxes and due dates vary according to state and local law.

 

Federal unemployment taxes are required for businesses in one of two situations:

 

If you pay $1,500 or more to employees in any single quarter

If you have one or more employees for 20 or more weeks in a single year... Depending on how much you owe, federal taxes are paid quarterly or annually, and you must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, at the end of the year.

 

As the employer, you pay 6% of the federal unemployment tax on the first $7,000 each employee earns. You may qualify for a credit of up to 5.4% if you pay state unemployment tax as well.

 

For state unemployment tax, you generally must pay it in every state where you have employees. Suppose you have a distributed workforce with either remote workers or people who work at a branch of your business in a state other than yours. In that case, you need to pay the taxes according to where the employee lives and works.

 

State unemployment taxes are typically due quarterly, but base wage rates vary by location. Also, depending on the industry and previous unemployment claim experience, your unemployment tax liability may vary.

 

ARE YOU FACING UNPAID TAXES?

FICA and Forms

Where would the government be without its forms? 

 

IRS Form 941, Employer's Quarterly Tax Return (the same as above), is the form to file each quarter. FICA taxes are paid either monthly or semi-weekly, depending on the size of your payroll. 

 

The withholdings include Social Security and Medicare. You pay the employer's share and withhold the employee's share to pay to the government.

 

Employee Wage and Tax Reporting

You must provide each employee a W-2, Wage, and Tax Statement by January 31 of the following tax year. If you pay independent contractors, you need to send each a Form 1099-MISC, Non-employee Compensation.

 

If you miss the deadlines for distributing these forms, you will pay penalties. The IRS loves its penalties.

 

How to Calculate Your Payroll Taxes

FICA taxes are pretty straightforward. The IRS charges a flat percentage rate of the employee’s gross wages. 

 

Social Security requires you to deduct 6.2% of the employee’s gross wages until you hit a wage base, which changes according to the tax law. 

 

For Medicare, you must deduct 1.45% of the employee's gross wages. Together with Social Security, you withhold 7.65% of each employee's gross wages, and then you, as the employer, must match that. 

 

If you pay any employee an income above a specific threshold, you must withhold an additional 0.9%. 

 

The IRS and state taxing authorities require you to accurately complete your wage and tax reporting forms on time. If you miss distribution deadlines, you’ll pay penalties.

 

Calculate payroll taxes every pay period. Determine individual withholding according to employee certificates and federal and state income tax brackets. 

 

Penalties

What sort of penalties could you face if you don’t pay payroll taxes? Any of the following:

 

Monetary penalties

Interest on back taxes

Liens against your property

Civil and criminal sanctions

Jail sentences

The amount of the penalties depends on several factors, including:

 

The type of infraction

The size of your business

How much you owe

Whether the payment was late or never received

The fees for all this continue to increase according to how long the payments are past due. They build up quickly. 

 

Late one to five days - you pay 2%

Late six to 15 days - you pay 5%

Late more than 16 days - you pay 10%

If you wait until more than ten days past your first IRS notice, you pay 15%

Oh, the IRS notice? That’s how you know you owe. The agency sends a notice or letter telling you of your Failure to Deposit Penalty. 

 

DO YOU NEED IRS TAX HELP?

 

TFRP

No, this isn't a text abbreviation. It stands for Trust Fund Recovery Penalty, a fancy name for the program that decides whether your tax issues are by mistake or on purpose.

 

TFRP is based on willful failure to collect and pay payroll taxes. An employer may be found willful if it:

 

Were or should have been aware of outstanding taxes and

Intentionally disregarded the law or were indifferent to its requirements

 

Willful failure to pay is much worse than making a mistake. However, you can seek an abatement by providing reasonable cause for your unreported taxes or late payments. Any of the following are considered reasonable:

 

Fire or natural disaster

The inability to obtain records

Death or serious illness

The unavoidable absence of the taxpayer or immediate family

Be prepared to provide documentation or physical evidence of disaster.

 

And, no, just because you don’t have the money doesn’t count. Lack of funds is not considered a reasonable cause.

 

How to Avoid Penalties

It's always better to avoid penalties than to pay them. And there are several ways to make sure you stay on the right side of the IRS (and the state and local tax authorities; you mustn't forget about them).

 

Improve Payroll Processes

Ensure your payroll process monitors, withholds, and reports all compensation paid to employees. Remit and report all taxes withheld from wages on time.

 

Stay Up to Date with IRS Announcements

The IRS publishes news releases and tip sheets to help employers remain aware of changes in tax law and new form submission guidelines. If you pay state payroll taxes, be sure to pay attention to those as well. Most states have a website where they put news releases and tax law changes.

 

Keep an Unemployment Tax Budget

Make unemployment taxes part of your overall business budgeting process. If you don't, you may find yourself short when it's time to pay. Most businesses create a separate account for payroll taxes to make things easier to manage.

 

Maintain Proper Employee Classification

Employee classification can be complicated. Do you have employees or independent contractors? It’s appealing to classify everyone as an independent contractor to lower your tax liability, but don’t do it.

 

Carefully check the IRS and state tax law definitions of employee and independent contractor and follow them to the letter. 

 

Use a Payroll Provider or Software

You have several choices of payroll software that provide all the tax services you need to report and remit taxes accurately. An alternative is to hire a provider to take care of your payroll tax details. Either way, you remain responsible for the related tax obligations and paperwork.

 

Contact Advance Tax Relief to Help Deal with Back Taxes

 

If you have a tax levy on your paycheck or the IRS is threatening you with one, you need a tax professional who specializes in tax debt relief on your side.

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies