Finding out that you’re being audited can be shocking, but it isn’t the end of the world. A properly qualified Louisiana tax resolution specialist can represent you in front of the IRS. They understand tax law, so they can deal with simple as well as complex audits. After receiving your letter, contact a tax consultant as soon as possible to make sure you don’t miss any important deadlines.
Can a Tax Consultant Represent Me in Front of the IRS?
If you’ve been informed by the IRS that you will be audited, don’t panic. Although many individuals are audited because there is an issue with their tax returns, some are selected at random. There might not be any issues with your return. The best way forward is to contact an experienced tax specialist and ask them to represent you in front of the IRS.
Anyone who has passed the relevant government exam can be an Enrolled Agent and deal with the IRS on your behalf. It’s usually best to choose someone who has experience with public accounting because they will be able to handle more complicated issues related to your audit. Bryon, our team leader at Geaux, is one of the best people to talk to about complex audits because he used to work for the IRS, so he has relevant experience.
How to Get Representation
The first step is to reach out to a good tax resolution specialist, tell them about your situation, and ask them to represent you. You will have to sign Form 2848 and give the tax professional power of attorney, so they can receive your tax information and perform certain actions on your behalf. With your permission, they can make decisions for you and sign certain documents like the closing agreement.
What Do Louisiana Tax Resolution Specialists Do?
Aside from representing you during an audit, tax resolution experts also help you to understand local and federal tax laws. If you’re worried about paying your taxes or you have accrued a lot of penalties, they can negotiate with the IRS on your behalf and help you to resolve your issue. They might encourage you to apply to the forgiveness program or explore other options like paying off your taxes by using a credit card or personal loan.
During your initial consultation, your tax expert will ask you a lot of questions about your situation. Bring as much information about your income, expenses, past tax history, and assets as you can. Once the professional has reviewed your details, they will tell you more about the tax resolution options and how they apply to your situation.
Once your issue has been resolved, your tax specialist will speak to you about how to prevent future problems. If you’re self-employed or you run a small business, they might give you formulas and spreadsheets that help you to calculate your approximate tax bill. That way, you can put away money every month instead of scrambling to pay your taxes at the end of the year.
Determine Which Solution Is Right for You
Millions of Americans are struggling to pay their taxes due to mounting financial pressures and the long-lasting effects of the pandemic. Fortunately, the IRS offers several solutions to taxpayers who are unable to meet their deadlines. Sometimes, a certain portion of the debt is written off, and at other times, the individual can slowly pay off the outstanding amount.
Asking for penalty abatement is another great way of reducing a person’s tax bill. However, the IRS’s solutions aren’t always the best way forward. Great Louisiana tax resolution experts ask their clients for a detailed financial history and information about their credit scores. That way, the professionals can figure out whether there are any cheaper or quicker alternatives.
The Forgiveness Program
Your tax consultant will ask you about your income, expenses, and assets to figure out whether you’re a good candidate for the IRS forgiveness program. There are several options. The simplest one is the Installment Agreement, which spreads out your payments over several years. If you have a small amount of debt, you can set up your IA online. If your situation is more complicated, your specialist will negotiate with the IRS, so you get a fair deal.
The Offer in Compromise is a great option because it reduces the outstanding amount. It is suitable for taxpayers who are unable to pay the full balance in the next few years without suffering hardship. Unfortunately, most OICs get rejected. That’s why it’s important to always work with a tax specialist. Currently Not Collectible status is appropriate for those without an income. It pauses the collection process until the taxpayer’s situation has improved.
When you fail to file or pay your taxes, penalties are added to your account. Every month you don’t file the return, you pay 5% more. Every month you don’t pay, your debt increases by 0.5%. The maximum penalty is 25%, but it’s important to remember that the IRS also charges interest on overdue payments. If you have penalties on your account, the first step is to pay off your debt or use the forgiveness program to come up with a solution.
Then, you can contact the IRS and ask them to remove the fees from your account. You’re likely to be successful if you’ve never had issues with the IRS before or if there is a valid reason why you weren’t able to file your return or pay your taxes. Some examples of valid reasons are a death in your immediate family, an accident, or a serious illness.
The IRS forgiveness program isn’t always the cheapest option. When you make an Installment Agreement, you still have to pay interest on your outstanding balance. This can be more expensive than using a credit card or personal loan, especially if you have a good credit score.
Tax resolution experts always ask you to check whether you could get a low-interest or no-interest loan. They might also ask you about your credit card offers to determine whether putting the outstanding balance on a credit card could be cheaper than an IA.
How to Choose a Tax Resolution Expert
The best tax resolution specialists are typically those who have several years of experience in their fields. Bryon and Kristi at Geaux both have well over 20 years of experience in public accounting and tax resolution. They can help you with any kind of tax issue, from setting up a simple installment agreement to sorting out an appeal and dealing with the US Tax Court.
When you reach out to us, we start by getting to know you and your unique tax issues. During the initial meeting, we discuss why you reached out and what has led to your problems. We then outline potential solutions and explain how we can help you. If you’re happy with our plan, you can hire us to resolve your tax-related issues.
Louisiana tax resolution specialists can represent you in front of the IRS, as long as they have passed the relevant government exam. They can also help you to understand tax law and determine which tax resolution strategy works best for your situation. Get in touch with us at Geaux Tax Resolution to speak to an experienced tax consultant, who can tell you more about our services.