CPA Tax Tips on Getting Out of Debt
By: Jonathan Medows, CPA | Posted: 02nd December 2009
Tax debt is basically the taxes that need to be paid or is due to be paid to the IRS and can be either Federal, local or state taxes. These outstanding taxes need to be cleared and you need to also pay off additional interest that has accumulated over the year or years.
It is a misconception that only tax attorneys and IRS enrolled agents can help you deal with your debt problems. In most cases, depending upon the tax debt issues that you have incurred, a CPA can help you solve your tax debt issues just like any other IRS Enrolled Agent and a Tax Attorney.
CPAs have years of experience dealing with IRS so it is best to look up a CPA tax advisor that has years of experience dealing with tax related issues and have varied experiences in tax preparations to tax filing and audits. If you have a small debt or it is just a case of amending the tax return, a CPA with tax experience is what you really need. In more serious cases where bankruptcy needs to be filed then you actually require the help of a tax attorney.
Before you choose to do your own taxes or hire someone to do them for you contact a CPA first. Several tax relief firms offer fast and easy service by providing a team of tax relief workers such as former IRS agents, tax attorneys and accountants who can help with any tax problem. You can solve any tax problem immediately if you have the right CPA working for you. In some cases, you may need to pay taxes and that can be very costly but the IRS does provide some types of pay back help including payment arrangements and discounts. Your CPA knows what payment options the IRS allows.
If you want to get out of debt use anyone of the five
CPA's tax debt strategies most used by:
1. Monthly payment plans to pay your debt to IRS. This is also known as an Installation Agreement.
2. Offer in Compromise is a way that you can pay off the IRS at a reduced amount in a short period of time.
3. Not currently collectable is another option that gives the person who owes the IRS money but cannot pay it for a year or more. The IRS agrees not to begin collecting until a certain date.
4. Partial payment instalment agreement allows you to pay a reduced amount to the IRS over a long period of time
5. Filing Bankruptcy. Although there are rules to discharging tax debts it can be done by filing bankruptcy but this should be the very last option for you.
Most small sized business need the best advantages for the business to improve and tax saving can go a long way to help tide over financial requirements. You can help your business prosper by utilizing tax credits and saving on tax liability. Your CPA will be able to point you in the right direction. If you have a tax debt that needs to be paid, don't avoid it any longer.
Jonathan Medows, CPA, MBA is the Managing Member of MEDOWS CPA, PLLC, a boutique New York CPA firm
serving the needs of individuals, freelancers, self employed individuals & small businesses. To see how he can help you reduce your tax liability and keep you in tax compliance please visit his website:
Medowscpa.com
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Tags: misconception, payment options, time 3, debt problems, state taxes, cpas, tax relief, offer in compromise, tax filing, tax attorneys, tax attorney