8 Situations Where You Should Get Tax Consultants Asap

Tax problems affect millions of Americans each year. If debt isn’t addressed, it can accumulate, and the government can seize taxpayers’ assets or garnish their wages. People who are worried about their taxes or believe that there is a problem can speak to Louisiana tax resolution specialists. Experienced tax consultants will analyze your accounts, file the necessary paperwork for you, and show you how to access the IRS forgiveness program.


1. You Failed to File or Pay Your Taxes

If you haven’t filed or paid your taxes on time, you’ll have to pay a hefty penalty. Each month you fail to file, you’ll pay 5% extra, up to a total of 25%. If you’ve submitted your return but you haven’t paid the IRS, you’ll pay 0.5% extra, up to a total of 25%. As you can see the penalty for failing to file accumulates much more quickly, so it’s always worth sending in your return, even if you don’t have the money to pay right away.

People who aren’t sure how to get started or those who are worried about filing their taxes correctly can speak to a tax resolution specialist, who will help prevent any mistakes. Your tax professional can also check what penalties there are on your account and whether you can get them removed. This is often possible if the taxpayer has never had trouble with the IRS or if they have a valid reason for failing to file or pay.

2. You’re Going to Be Audited

Receiving the notice that you are going to be audited doesn’t automatically mean that you are in trouble. In fact, a small number of people is selected at random each year, so you might not have done anything wrong. However, the IRS officers are very thorough in their investigations, and if your paperwork isn’t 100% in order, it’s likely that you will have to pay a penalty.

Contact a tax professional as soon as you find out about the audit. They can go through your documents to check that everything has been recorded and filed correctly and make sure you don’t miss any deadlines. At Geaux, we have over 35 years of experience dealing with the government, and our owner used to be an IRS employee, so we are experts at communicating and negotiating.

3. You Believe You Won’t Be Able to Pay Your Taxes

At the moment, over three-quarters of Americans are nervous or anxious about their financial situation. The effects of the Coronavirus pandemic, the increase in the cost of living, and the challenging job markets make it difficult for people to pay all their bills and save money for the future. It is therefore not a surprise that millions of taxpayers have fallen behind or failed to pay last year’s taxes.

If you’ve received a hefty tax bill and you’re worried about paying it, contact an expert straight away. The IRS has incredible collection power, and they can gain access to your bank accounts, your wages, your home, and your personal assets. By getting your situation sorted out ASAP, you can avoid having to pay a hefty penalty or having your assets taken away.

4. Your Tax Return Is a Lot More Complicated than Usual

Most Americans who are traditionally employed don’t have a very complex tax return, and they might not need to hire an accountant every year, especially if most of their wealth is concentrated in their primary residence and their pensions. However, people who are self-employed, those who run a business, or those who have a lot of assets and a high net worth might have a more complex return.

Don’t hesitate to get outside help if you’re struggling to complete your return or you’re not sure whether you’ve filled everything out correctly. A good Louisiana tax resolution specialist can compile your paperwork and calculate your taxes for you, which saves you a lot of money and hassle.

5. You Made a Mistake that Hasn’t Been Discovered

You’ve made an effort to fill out and submit your tax return on time, and you’ve paid all your bills. But suddenly, you realize that you made a mistake on your return. Should you wait and hope that the IRS won’t notice your mistake? Or should you be proactive and rectify your mistake? The latter option is almost always better because the consequences could be severe if the government finds out about your mistake.

Tax consultants can help you to contact the IRS about the issue and submit a correct return. In some cases, you’ll still have to pay penalties and interest for paying too little, but it all depends on your situation. Sometimes, taxpayers notice that they have paid too much, in which case they will receive money back from the IRS.

6. You Have an Unusually High Tax Bill

Most self-employed individuals and small business owners could significantly reduce their taxes if they improved their strategy. Don’t hesitate to speak to an expert if you believe that you are overpaying. A good tax resolution specialist will analyze your return and let you know what you could do to reduce your bill. To begin, they might look at your expenses and determine which ones you can deduct from your taxes.

Then, they will let you know how to strategically use your retirement accounts to minimize your current and future payments. Once these aspects are optimized, your tax professionals can suggest advanced methods of legally avoiding taxes. Some of them might include getting some of your income classified as capital gains, hiring family members, investing in untaxed assets, using a health savings account, and claiming all tax credits.

7. You Think the IRS Made a Mistake

When discussing tax resolution, most people think about the mistakes made by the taxpayers. But the IRS is far from perfect, and errors can happen on their end, too. If you believe that the IRS made a mistake or charged you too much, contact your tax resolution specialist right away.

Some kinds of mistakes can only be corrected if they are caught on time, so it’s important not to delay the process. For example, if you get a Notice of Deficiency and you think that you don’t owe the tax, you need to file a petition within 90 days. The faster you hire a tax professional, the bigger the likelihood of a timely resolution.

8. Your Spouse Made a Mistake and You Have to Pay for It

The IRS forgiveness program includes a special kind of relief for spouses who didn’t know that their partner made a tax mistake. Innocent spouse relief applies to people who have tax debt because their husband or wife didn’t pay enough tax or didn’t declare all their income. If you think that this applies to you, speak to your professional. They can evaluate the evidence and let you know whether you can get relief.

Tax consultants can help you navigate a wide range of issues, from failing to file your return to rectifying mistakes, either ones caused by the IRS or ones you made. Don’t delay reaching out to a professional if you need help, since issues are almost always easier to resolve when they are caught early. Contact us at Geaux Tax Resolution to speak to a Louisiana tax resolution specialist now.
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