Tax Accountants Anoka MN
Debt Relief, Garnishments, Chapter 13, Credit Disputes, Chapter 7, Personal Bankruptcy, Credit Repair, Creditor Harassment
Juris Doctor, Hamline University School of Law, 2005
St Cloud, MN
Construction, Tax, Real Estate
SAINT CLOUD, MN
SAINT CLOUD, MN
St Paul, MN
Estate Planning, Tax, Bankruptcy
SAINT CLOUD, MN
Family, Tax, Probate, Estate Planning, Guardianship
William Mitchell College of Law,College of St. Catherine
St Cloud, MN
Tax, Estate Planning, Commercial
St. Cloud, MN
SAINT CLOUD, MN
Tax, Estate Planning
William Mitchell College of Law,Dakota Wesleyan University
What are My Options for Tax Debt Relief?
Tax debt is monies owed to the IRS originating from any current or past tax returns. Tax debt may include income tax owed combined with any accumulated interest and penalties. It is important to note that not paying your taxes can result in wage garnishments, levies, and long-term damage to your credit report.
There are many reasons why individuals may find themselves with a large amount of tax debt. The inability to pay tax debt may be the result of a layoff or extended periods of unemployment, illness, divorce, an accident, or the mismanagement of funds. Whatever the reason may be for your tax debt, you can find relief through several solutions or sources.
Short-term solutions for tax debt relief include: borrowing from a family member or a friend, selling any valuables for cash (or liquidating), taking out a short-term personal loan, or applying for an Offer in Compromise (OIC) through the IRS.
Applying for an Offer in Compromise
An OIC can provide relief for taxpayers who cannot pay their tax debt in full or if an installment agreement is not an option. An Offer in Compromise is an agreement between the IRS and a taxpayer that resolves the taxpayer’s debt. The fee for filing is $150, but in some cases the fee may be waived.
With an OIC, the IRS can choose to settle the taxpayers debt by accepting less than the full payment if there is: doubt as to liability, doubt as to collectibility, if the collection of the tax would create an economic hardship or if it would be unfair and inequitable. In order to apply for an OIC, taxpayers should fill out Form 656 (and possibly 656-L), available at Irs.gov . If you assistance, please contact an IRS collection representative at 1-800-829-1040, or preferably, a tax attorney or a certified public accountant (CPA).
There are several things to keep in mind when applying for an Offer in Compromise or when seeking assistance with the process. Obtaining approval for an Offer in Compromise is difficult, so if at all possible, think of a Plan B or revisit the list of short-term and long-term solutions to be absolutely sure that you have exhausted all possibilities.
When seeking assistance with applying for an OIC, it’s best to avoid services that use the following language “settle your tax debts for pennies on the dollar” through the Offer in Compromise Program. Instead, read through Publication 594 (The IRS Collection Process) and stick with trusted names in the industry. Publication 594 is available at Irs.gov or by calling 1-800-829-3676.
Long-Term and Permanent Solutions for Tax Debt Relief
A common long-term solution for tax debt relief is an IRS installment agreement. An IRS installment agreement, also called payment option, payment plan, and payment agreement is an agreement between the IRS and the taxpayer to make payments on taxes owed. You will be charged a fee, interest and penalties to start the installment agreement. Interest and penalties may be minimized of you are ab...
When Should You Hire a Tax Accountant?
If you’re single with a regular job and you have few to no assets, using a tax software program like TurboTax or H&R Block At Home is probably the best way to prepare taxes. You can even prepare them yourself without the help of a tax software program if you have the time. On the other hand, if you have a business (small or large), assets such as real estate, dependents, investments, loans, and you make donations often, then you should consider hirin a tax accountant.
Tax accountants provide services to corporations and individuals. They complete complex tax returns, offer tax advice, and assess tax liability. A tax accountant can also help businesses figure out the best regions to set up shop in order to minimize tax liabilities, and they can even help choose certain products that can help businesses or individuals save money on taxes. Most tax accountants are certified public accountants (CPAs), so they are well versed in all state and federal tax laws.
When hiring a tax accountant, it is important to know the difference between a tax preparer and tax accountant. A tax preparer, such as an employee at an H&R Block, has taken income tax preparation courses and completed training through H&R Block. They are not licensed accountants and they don’t need a degree in accounting to work at H&R Block. Tax accountants, specifically CPAs, must satisfy a number of state requirements to sit for the CPA licensing exam. One major requirement is a degree in accounting from an accredited college or university.
Each state’s requirements vary slightly but in general, most state boards require no less than 150 semester credits with a specified number of accounting courses and business courses. To give you an idea of the level of difficulty of accredited accounting programs, less than half of the students accepted into a bachelor’s degree program in accounting will graduate.
So, the first thing to look for when hiring a tax accountant is a CPA license. It is illegal for anyone to use the CPA designation without a valid license. This means, if a tax accountant says he’s a CPA, he’s probably telling the truth. You can also verify whether a license is valid or not by doing a license lookup through your state board of accountancy website. You can locate your state board of accountancy by visiting the New York State Society of CPAs ( NYSSCPA ). Just scroll through the directory find your state.
The next thing to consider is how long a tax acco...