Tips for Finding a Qualified Tax Resolution Firm
Given how high the stakes are, how little thought many people give to their taxes is surprising. All too often, individuals walk into a neighborhood storefront, hand over their most personal information, and trust the person on the other side of the desk to do the right thing and prepare their taxes properly. How much training did they have? How many seminars did they attend to keep up with the ever-changing world of tax law?
In many cases, that trust is well placed, and the individual preparing the taxes is indeed the honest and trustworthy professional they claim to be. In other cases, however, the trust is misplaced, and the tax preparer will end up making mistakes that could cost the individual a great deal. If an audit is triggered by deliberate misrepresentation or unintentional mistake, you will still be on the hook for any additional taxes, interest, and penalties.
If you’re in tax trouble because you trusted the wrong tax preparer, then you will need a qualified tax resolution firm to help you resolve your tax problem. However, you don’t want to repeat the same mistake twice! So it is important to do your homework and know what to look for in a tax resolution firm. Here are four quick tips to help you find a qualified tax resolution firm.
#1 Read Their Reviews Online
You can quickly see if the tax resolution firm is reputable and stands by its clients by reading online reviews. A lot of the big national firms will have terrible reviews, but they market themselves heavily, so consumers don’t think twice about their reputation.
If you owe back taxes, waiting can cost you a lot of money and if the tax resolution firm disappears on you or doesn’t return your call, that wasted time could cost you dearly. This can easily be avoided by seeing if they have good online reviews about their services.
#2 Make Sure the Tax Resolution Firm Has Experience and A Proven Track Record
Negotiating with the IRS to settle your tax debt is a unique skill that not all tax attorneys or tax professionals have. It’s important to ask about their recent case settlements and success stories. A true tax resolution professional will have proof they’ve done this before and successfully helped resolve back tax problems.
#3 What Does Their Communication Look Like Once You Sign-On?
A professional and experienced firm will have systems in place to make sure you’re updated regularly on your tax resolution case. The IRS moves slow and there will likely be big gaps in time in between updates from the IRS. That doesn’t mean the tax relief firm should also have gaps in communication.
Ask how long they think it’ll take to resolve your tax problem, and how you’ll be updated even if they don’t have any news from the IRS.
#4 Avoid Big National Firms With Salespeople Who Promise The Moon But Don’t Deliver
You’ve heard their ads on the radio or TV. If you call a big national firm you’ll likely get a salesperson who knows very little about taxes or how to settle your tax debt. Many will promise things they can’t possibly deliver. They are trying to sell you. Beware.
Not every taxpayer qualifies for all the IRS tax debt settlement programs. If everyone could get a reduction in their taxes simply by not paying the IRS no one would ever pay their taxes. However, these salespeople will promise you the moon but will fail to deliver because they didn’t take the time to understand your specific situation, they are just telling you what they think you would like to hear, and they’re not actually licensed tax resolution professionals. I am licensed by the Indiana State Bar, the Alabama State Bar, and admitted to numerous federal district and appellate courts, the United States Supreme Court, and U.S. Tax Court.
Make sure to ask who will be responsible for your case. A true tax resolution professional will be happy to answer your questions. be sure you can understand your case, and offer you the right solution.
Remember, if it sounds too good to be true, it probably is. Unfortunately, I have had a lot of people come to see me after they had signed up with a big out-of-state firm that did not accomplish what needed to be done to resolve their problem.
Need Tax Relief?
If you want a tax attorney who is a professional that knows how to navigate the IRS maze, reach out to our law firm and we’ll schedule a confidential consultation to explain your options to permanently resolve your tax problem. We help people get their life back from the IRS.
Four Common Tax Return Mistakes That Could Get You in Trouble with the IRS
As the tax-filing season unfolds (the October 15th deadline is just around the corner if you filed an extension), many taxpayers are doing their own taxes. Though it may seem like a good idea for the individual taxpayer, it’s important to watch out for common tax filing mistakes. Tax preparation software makes some errors like addition and subtraction blunders less likely, but even the best software cannot eliminate all potential problems and human error. (Also, every year, I have someone in my office who either used tax software or accounting software who did not know what they were doing, and they are being audited. Trying to save a few bucks by doing it yourself can be a really big and costly mistake.)
If you are getting ready to file your tax return, be sure to take a second (or third) look before you hit send. Keeping a close eye out for these common tax filing mistakes is the best way to ensure the IRS does not come knocking at your door.
Note: If you do get in trouble with the IRS and they claim you owe $10,o00 or more, reach out to our tax law firm, and we’ll schedule a confidential consultation to explain your options fully to permanently resolve your tax problem.
That said, let’s jump into the four common tax return mistakes that could land you in tax trouble if you self-prepare your tax return.
#1. Transposed Numbers
If the Form 1099 you receive shows $6,300 in income and you inadvertently enter $3,600 instead, the IRS may see this as a tax dodge instead of an innocent mistake. At best, transposing numbers will slow down your refund (if you qualify for one) and raise a red flag with the IRS and State of Indiana Department of Revenue. At worst, it could trigger an audit or further examination of your entire return.
IRS computers are very good at comparing the figures taxpayers report to those they receive independently from banks, brokerage firms, and other agencies. Be sure to double-check and verify every number you enter and make sure it is correct. Your tax software can tell you if your numbers do not add up, but it cannot catch transposed figures (“Garbage in, garbage out”).
#2. Misspelled Names
It is easy to misspell a name or transpose a Social Security number when entering dependent information, but doing so could cause real problems with your return. Be sure to double-check all your children’s names, ages, and Social Security numbers before sending your return to the IRS. The IRS looks at that information on whether you claimed the right amount of exemptions and whether you are eligible to claim and receive Child Tax Credits and the Earned Income Credit.
Do not assume that all of that information will be transferred from a prior year’s return.
#3. Missing Social Security Numbers
It is easy to forget this vital piece of information, and doing so could delay your return and cause long-lasting problems. You may assume that your tax prep software will automatically enter your Social Security number, but that does not always happen.
Be sure to give your Social Security number (and that of your spouse) one last look before filing your return. That last- minute check could save you a world of trouble later on.
#4. Not Reporting All Your Income or Taking Too Many Deductions
The IRS will likely get notified of income you received throughout the year, and it doesn’t just include your W2 wages. It’s important to keep track of all your income and report it to the IRS correctly to avoid any problems.
It can also be tempting to click a few extra boxes and input a few made-up numbers as deductions to bring your tax liability down. DO NOT DO THIS. Just because the software lets you do this, doesn’t mean you should. REPORTING FALSE INFORMATION TO THE IRS IS A CRIME! THE U.S. JUSTICE DEPARTMENT PROSECUTES PEOPLE WHO ENGAGE IN TAX FRAUD!! Don’t for a minute think that everyone does it. They don’t and stop for a minute and think how lame that sounds to a judge and jury. That logic is why a number of people have gone to jail for tax fraud. It is not worth ruining the rest of your life and also all of your family members’ lives, too.
I know the first thing you will do when you see what you owe will be to think about what you can do to bring down your tax bill. That’s normal, but they have to be legitimate expenses, deductions, and credits. It’s not the software’s job to tell you whether or not you should be taking that extra deduction or write off. It’s the taxpayer's job, to be honest, and file their tax returns correctly. Carefully consider do you have good documentation to substantiate what you are claiming?