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Navigating Tax Relief for Businesses and Individuals

Nov 23

Taxes are difficult for everybody, but with the proper help, getting tax relief can be simpler than it seems. If you're an individual or business owner needing assistance, grasping what's accessible to you is critical in making the most of your taxes. Here are some options available to businesses and individuals seeking tax relief:

Tax Relief For Businesses

Running a business involves tax upon tax, which can make it difficult to keep track of everything. For example, the IRS collects 940 and 941 payroll taxes, federal excise taxes, ad 1120 corporate income taxes. And that's in addition to state taxes like withholding, unemployment compensation tax, sales tax,...the list goes on. All these different types of taxation make it easy to fall behind stated deadlines.

What Are Tax Relief Options Businesses?

Taxes for businesses are quite complicated because there are many elements to consider, such as assets, ownership, cash flow, and fiduciary questions. Therefore, the best way to figure out which strategy is ideal for you is by speaking with a tax relief professional. With that in mind, here are some potential options for resolving your business tax problem.

Installment Agreements:

The majority of our clients can't afford to pay the taxes that their businesses owe in the timeframe or amount demanded by the IRS or state. However, we will do everything in our power to get you terms that better suit your needs and wants.

Reversing Levies:

The IRS and state taxing authorities take money out of businesses' bank accounts every day, which can prevent those businesses from being able to pay bills or make payroll. By reversing or halting bank levies, we help keep businesses running. However, it's always best to avoid them from the beginning.

Tax Liens:

If the IRS or state files a tax lien on your business, it will be made public and could potentially harm your company's reputation. However, by staying ahead of tax issues, we can oftentimes prevent liens from being filed in the first place. Not only can we help with business property transactions, but removing a tax lien may also be possible.

Offer In Compromise:

If your business doesn't have many assets and you don't earn much money, you might be able to receive an Offer in Compromise from the IRS. The process is long and complicated, so it's helpful to know which state will accept your offer before beginning the application process.

Corporate Formation Or Shutdown:

If you're looking to start a new business with a clean slate, incorporation might be the right move—but only if done correctly. Keep in mind that any prior liabilities will follow you and your new company if not done properly from the get-go.

Sometimes, the most beneficial way to save on taxes is by closing a corporate entity. With certain types of IRS tax, it's crucial to follow the proper protocol and acquire any government-issued documentation or releases that may be required.

Tax Relief For Individuals

Individuals can benefit from tax relief too! If you have dependents living in your household, you may be eligible for a Child Tax Credit (CTC). This credit provides up to $2,000 per child under the age of 17 and applies to any taxable income earned throughout the year.

In addition to CTCs, there are other credits available such as Earned Income Tax Credits (EITCs) that assist those earning lower incomes—especially families with children—and could result in a refund from the IRS after filing taxes each year.

Lastly, many states offer property tax exemptions or credits which could help reduce your overall tax bill significantly if you own real estate property within that state's jurisdiction.

Settling Your Outstanding Back Taxes

Back taxes are simply any taxes that you may owe from previous years. If this is something you're worried about, there are options for tax relief.

Having trouble finding tax relief? Here are four options that might help, plus information on how to file back taxes and for how many years you can do so.

IRS Payment Plans

The IRS is typically willing to work with taxpayers who can't afford to pay their entire tax bill at once. If you need more time, the agency will likely set up a payment plan for you. This will enable you to owe taxes (plus interest and fees) in installments over an extended period.

The IRS offers two installment plan options: short-term and long-term.

Offer In Compromise

If you're struggling to pay your back taxes, you might be eligible for what's called an "offer in compromise" from the IRS. This would allow you to settle your debt for less than the amount owed. According to the IRS website, this may be possible if paying off the debt would create a financial hardship or if it's not possible to pay the full amount.

Currently-Not-Collectible Status

If you cannot pay your taxes and living expenses, you may be able to request a "currently not collectible" status from the IRS. To do this, you need to submit a request form along with proof of your financial situation (such as monthly income, debts, etc.). This can include completing a Collection Information Statement or Collection Information Statement for Wage Earners and Self-Employed Individuals form.

Get Help From A Tax Relief Company

Getting help from a tax relief company can be a great way to reduce your debt and eliminate any potential penalties. A qualified tax professional can review your financial situation and advise you on the best course of action to take. They can also assist in negotiating payment plans with the IRS or looking into an offer in compromise.

Tax relief companies are often very knowledgeable in the area of taxes and can help you make sense of complex laws and regulations. They are familiar with the processes and procedures of filing back taxes, as well as ways to reduce your debt or lower your monthly payments. Plus, they can also provide advice on which deductions and credits you may be able to take advantage of.