The US tax system is complex, so it’s no wonder that millions of people are in trouble with the IRS. If you’re worried about your tax situation, contact the Louisiana tax resolution specialists at Geaux. No matter what the problem is, we can analyze your situation, help you figure out an appropriate solution, and show you how to prevent similar issues in the future.
Louisiana Tax Resolution: What Are Some of the Most Common Tax Problems That a Tax Consultant Can Help With?
There are several reasons why people reach out to us. Some have been notified of an upcoming audit, so they need us to gather and double-check all their tax documents and communicate with the IRS. Others are worried about paying their taxes. We often work with people who have failed to file their tax returns or those who have tax debt.
Don’t hesitate to reach out if you’re concerned about your taxes. The IRS has immense collection power. When you fail to pay your taxes, they can garnish your wages, seize your home, and access your savings and retirement accounts. Most tax problems get more complicated over time, so it’s always better to resolve issues as soon as possible. If you don’t act now, your assets and livelihood could be at risk.
An Audit
The overall odds of being audited in any given year are just 0.3%. Typically, people in higher income brackets and those who appear to have made mistakes in their tax returns are more likely to get audited. One of the best ways for taxpayers to avoid being selected is to always be honest about their income, expenses, and assets. This lowers the likelihood of an audit.
The IRS always initiates audits by mail, so you’ll receive a letter. This states whether you will be audited by mail, in an IRS office, or at your home or place of business. If you’ve been selected for an audit, always contact a tax specialist right away. They can gather your documents, help you to prepare, and make sure you don’t miss any important deadlines.
Trouble Paying Your Taxes
People who work for an employer don’t have to worry about paying their taxes. This is because tax is paid directly by the employer. However, people who are self-employed or those who run a small business don’t benefit from this system. They have to save up money every month and pay quarterly estimated tax payments. If they earned more than expected, they have to pay the remaining balance once they’ve filed their returns.
In the last few years, the combination of the Covid-19 pandemic and the cost-of-living crisis has made it very difficult for self-employed people and small business owners to stay on top of their taxes. Many people are worried about their upcoming bills. Taxpayers need to address this issue right away, ideally before the IRS starts adding fees and interest to their accounts.
Failure to File a Return
Failing to file your tax return is a serious issue that leads to significant penalties. Every month you fail to file, you pay an additional 5%. The maximum penalty is 25%, but this is on top of interest, which is charged every day. The IRS’s annual interest rate varies, but it is based on the federal short-term rate plus 3%.
Because the penalty for late filing accumulates very quickly, it’s important to file your return even if you don’t have the money to pay your tax bill right away. Reach out to a tax specialist if you’re not sure how to do this. They can make sure you meet all the relevant deadlines and help you access the IRS’s forgiveness program.
Tax Debt
If you’ve filed your return but aren’t able to pay your taxes on time, the penalty accumulates at a rate of 0.5% per month. You have to pay interest on top of this. In the long term, you could face further consequences, like wage garnishment. That’s why it’s best to notify the IRS as soon as you realize you can’t pay and take advantage of the forgiveness program. This allows you to spread out or delay your payments.
Some programs also reduce the total amount you owe, but they are hard to access. Contact us at Geaux when you notice that you have tax debt. We can explain the various IRS forgiveness options and help you choose the best one for your situation. We can also check whether you can have the penalties removed from your account. This is possible if you have a valid reason for failing to pay, or you’ve never had issues with the IRS before.
What Are the Forgiveness Options?
There are several options for taxpayers who are unable to meet their obligations right away. The consequences of tax debt are much smaller if the IRS is notified ahead of time. One of the best forgiveness options is the Installment Agreement. This program is open to almost everyone, and it involves spreading out the payments over several months or years.
Another great option is the Offer in Compromise. If your OIC gets accepted, you don’t have to pay the full amount. Unfortunately, most OICs are rejected because the IRS believes that the majority of taxpayers can eventually pay their debt. To succeed, you have to provide proof that paying your tax bill would cause significant financial hardship. If you’ve lost your income and you can’t pay anything at all, Currently Not Collectible status could be right for you.
Notification of a Tax Levy or Lien
If you’ve been notified of a tax lien or levy, you need to contact a Louisiana tax resolution specialist right away. This is because you’re at risk of losing your property and having your wages garnished. A lien is a legal claim against your assets, and it is used by the IRS and other financial institutions to secure the payment of debt. A levy comes later on in the process. It is even more serious because it involves the IRS seizing your property to satisfy the debt.
Do I Need to Contact a Tax Specialist?
The IRS has immense resources, and they can access most of your assets and a part of your wages. They can also charge you thousands of dollars in fines. If you commit tax fraud, you have to go to jail for up to three years. Because tax issues can lead to such dramatic consequences, it’s almost always better to reach out to a tax specialist instead of trying to resolve the issue on your own.
At Geaux, we only employ highly experienced professionals with years of experience in the tax industry. Our founder, Bryon, used to work for the IRS, so he’s a great person to speak to if you have serious tax issues. The best way to get started is to call or message us and ask us for an initial appointment. During this meeting, we’ll assess your situation and determine how to best help you.
Millions of Americans have trouble paying their taxes and are therefore at risk of having their assets taken away. Others have failed to file their returns or are worried about an upcoming audit. A tax expert can help. Reach out to us at Geaux Tax Resolution and ask us for an appointment. We will analyze your situation and negotiate with the IRS on your behalf.