Tax Preparation

What is Tax Resolution & How Can It Help You During the 2023 Tax Season?

tax resolution new york
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What is Tax Resolution & How Can It Help You During the 2023 Tax Season? | Reaction Tax Preparation Services

tax resolution new york

Tax season can be unpleasant for many taxpayers, especially if you owe money to the IRS or State. The one thing you can do is, be proactive and prepared and engage a tax resolution specialist to help guide you.

 

If you owe back taxes to the IRS, read every word in this article carefully because what you do next can impact your financial stability and peace of mind. Today I will share the tax resolution and how it can help you.

Before we jump into it, if you have a back tax debt or years of unfiled tax returns, contact our firm for a consultation, contact us now. We always recommend that you talk to the IRS with representation as, many times, it makes your situation worse.

The IRS can be an intimidating agency to speak with and will do everything in its power to collect what is owed to them. Connect with one of our tax resolution specialists for a no-obligation consultation so we can review your case and guide you to the best option for your specific situation. You won’t have to talk to the IRS; our firm can provide the peace of mind needed to resolve your tax issue.

What is Tax Resolution?

Tax resolution, also known as IRS Representation or Tax Controversy, is

Resolving back tax issues with the IRS or state tax authorities. It generally involves negotiating a payment plan or a settlement agreement for less than you owe. Many times, for a lot less if you’re eligible.

There are several options available for resolving taxes owed, including:

Payment Plan A payment plan is an installment agreement that allows you to pay off your tax debt over time until the debt is paid in full.

Partial Pay Payment Plan – A “PPIA” is an installment agreement that allows you to pay off your tax debt for less than the total amount.

Offer in Compromise An Offer in Compromise (OIC) is an agreement between you and the IRS to settle your tax debt for less than the total amount owed. To qualify for an OIC, you must demonstrate that you must only partially pay your tax debt and meet specific eligibility requirements.

Currently Not Collectible If you are facing financial hardship and cannot pay your tax debt, you may qualify for Currently Not Collectible (CNC) status. This means the IRS temporarily suspends collection efforts until your financial situation improves. However, this does not mean you do not owe what you owe; it just means it is a temporary suspension on making monthly payments to the IRS.

How Can Tax Resolution Help You?

If you find yourself in the unfortunate situation of owing back taxes to the

IRS, then here is how tax resolution can help you in several ways:

Avoid Penalties and Interest When you owe back taxes, the IRS will assess penalties and interest on the amount owed. These fees can add up to another 50% to the principal tax owed. We can help you avoid or reduce these fees, which can add up quickly.

Reduce Your Tax Debt Tax resolution can help you negotiate a settlement agreement or payment plan that reduces your tax debt. This can make paying your outstanding taxes easier and getting back on track financially.

Protect Your Assets If you owe back taxes, the IRS will eventually attempt to garnish your wages or seize your assets, including bank accounts. We can help you protect your assets and income and negotiate the lowest monthly payment allowed by law.

Improve Your Credit Score When you owe back taxes, it may negatively impact your credit score. Tax resolution can help you pay off your tax debt and improve your credit score.

In conclusion, tax resolution is a way to settle tax debt and get back on track financially. It involves negotiating a payment plan or settlement agreement with the IRS or state tax authorities. By avoiding penalties and interest, reducing your tax debt, protecting your assets, and improving your credit score, tax resolution can help you achieve financial stability and peace of mind. If you owe back taxes, it is important to take action sooner, rather than later, and explore your options for resolution.

Our firm specializes in tax resolution; even if you have years of unfiled tax returns or owe the IRS over $10,000, we can help! If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, and we’ll schedule a no-obligation confidential consultation to explain your options to resolve your tax problem permanently. Send us a message now.

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Everything You Need to Know About Filing your 2022 Tax

tax preparation checklist for 2022

Everything You Need to Know About Filing your 2022 Taxes | Reaction Tax Preparation Services

tax preparation checklist for 2022

Filing taxes can be daunting for many individuals, but it is a necessary part of managing your finances. This article will cover everything you need to know about filing taxes for 2022.

 

Know Your Filing Status

Your filing status is an important consideration when filing taxes. There are five filing statuses: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Each status has different tax brackets and deduction limits. Choose the status that best reflects your situation.

Gather Your Documents

Before you start filing taxes, you must gather all the necessary documents. These include your W-2, 1099s, and other income or tax statements. If you have any deductions, ensure you have the relevant receipts and documentation for every deduction.

Understand Tax Deductions and Credits

Tax deductions and credits can help reduce the amount of taxes you owe. Deductions are expenses that reduce your taxable income, while credits directly reduce the amount of taxes you owe. For the everyday American, some standard deductions include mortgage interest, charitable donations, and student loan interest. Although, most taxpayers will take the “standard” deduction. Common tax credits include earned income tax.

Choose Right Tax Preparation Method

There are several ways to prepare and file your taxes. You can use tax preparation software, hire a tax professional, or file by paper. The method you should go with depends on your situation. For the most accurate and best result, we always recommend hiring a tax professional that can ensure everything is filed correctly. If you owe back taxes from other years, the highly recommend hiring a tax resolution specialist to look into your case to ensure e IRS does not garnish your wages or put a tax levy on your assets.

File on Time

The tax filing deadline for 2022 is April 18, 2023. Make sure you file your taxes on time to avoid penalties and interest. You can request an extension if you cannot file by the deadline. But remember, an extension only relates to the filing of the return. If you owe for 2022, and you file an extension, what you owe must be paid in with the extension to avoid failure to pay penalties.

Pay Any Taxes Owed

If you owe taxes, make sure you pay them on time. The IRS offers several payment options, including online payment plans, direct debit, check, or money order. Failure to pay taxes owed can result in penalties, interest charges, and, worst-case scenario, tax liens and garnishments.

Keep a Copy of Your Tax Return

Make sure to keep a copy of your tax return for your records. You may need it for future reference or to apply for loans or financial aid.

What to Do If You Owe Back Taxes

If you owe back taxes, the most important thing you can do is take action. Ignoring your tax debt will only worsen the situation, as the IRS will continue to assess penalties and interest on the amount owed. Contact a tax resolution specialist to review your case, and let them guide you through the process to ensure you don’t jeopardize your financial future.

Our firm specializes in tax resolution EA that can represent you before the IRS. We serve clients virtually, so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows the “ins and outs’ and how to navigate the IRS maze, reach out to our firm, and we’ll schedule a no-obligation confidential consultation to explain your options to resolve your tax problem permanently. Contact us now!.

In conclusion, filing taxes can be overwhelming, but it doesn’t have to be. By understanding your filing status, gathering necessary documents, taking advantage of deductions and credits, filing on time, paying any taxes owed, and keeping a copy of your tax return, you can ensure a successful tax filing experience in 2023.

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Evite Estafas Relacionadas con Números de ITIN

Preparacion de Impuestos ITIN

Evite Estafas Relacionadas con Números de ITIN | Reaction Tax Preparación de Impuestos | Taxes

Preparacion de Impuestos ITIN

El Número de Identificación Personal del Contribuyente (ITIN, por sus siglas en inglés) es un número de tramitación de impuestos emitido por el Servicio de Impuestos Internos.

 

 El IRS emite los ITIN a las personas a quienes se les requiere tener un número de identificación del contribuyente de los Estados Unidos, pero que no tienen ni reúnen los requisitos para obtener un número de Seguro Social (SSN, por sus siglas en inglés) de la Administración de Seguro Social (SSA, por sus siglas en inglés).

 

¿Para qué se utiliza un ITIN?

El IRS emite los ITIN para ayudar a la gente a cumplir con las leyes tributarias de los Estados Unidos y para proporcionar a la gente que no reúne los requisitos para obtener un número de Seguro Social, una manera eficiente de tramitar y dar cuenta de sus declaraciones de impuestos y sus pagos. Se emiten independientemente del estado migratorio, ya que tanto los extranjeros residentes como los no residentes pueden verse obligados a presentar una declaración de impuestos o una declaración informativa de los Estados Unidos, conforme al Código de Impuestos Internos. Los ITIN no sirven para ningún otro propósito que no sea la presentación de declaraciones del impuesto federal.

Un ITIN no:

  • Autoriza a trabajar en los Estados Unidos

  • Proporciona el derecho a recibir los beneficios de Seguro Social

  • Califica a un dependiente para propósitos del crédito por ingreso del trabajo

Fuente: IRS.gov

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