February 14, 2009

Different options to solve your tax issue:

There are several ways to solve your tax problems to get back on track, one of them may apply to you.

Reveiw prior year tax returns to find an error : Last year the IRS sent a notice to one of my client demanding more then $10,000 in back taxes. Before negotiating with the IRS to reduce the debt I asked my client to send me his last three years tax returns. After reviewing his tax returns I found a significant error. I filed an amended return and changed his tax liability to zero. Instead he received a refund of more then $6,000. I believe that many of tax problems could be solved that way, since many taxpayers haven’t taken the full tax benefits they could have. Applying the tax breaks to prior year’s tax returns, by amending these years’ tax return, could change the all picture.   

Offer In Compromise: If you do owe the tax, a second opption is to try to reduce the debt. In this time of the economy it is easier to get a compromise on your debt. There are several criteria for when an offer in compromise could work for you. For more details on that call me at 310-461-1997

Installment Agreement: An installment agreement is very popular and could be an option. However, do not sign installment agreement before you let a professional tax preparer to look at your case because it may not be the best.     

Tips to solve tax debt problem:

In today ecconomy many tax payer could tax advantage of carryback losses to solve tax problems from back taxes. Since the begining of this year i used that strategy for two of my clients, the results ...they getting money back!!!

The new bill provides for more tax breaks for families, individuals and businesses. Some of the credits are listed bellow:

• $400 tax credit for individuals and $800 tax credit for couples.
• Increase in child credit for low income families.
• First time home buyers credit of $8000 for home purchase before December 1, 2009.
• Sales tax write off for new car buyers
• Energy efficient credit for up to $1,500 for homeowner .
• $2,500 education credit for collage students.
• Unemployement benefit tax examption for the first $2,400 received.