Our Tax Services
Service 1: Assessment
You authorize us to access to your IRS transcripts which allows us to assess the next steps including filing previous years, applying for payment compliance options, determine payment options, etc.
The earned income tax credit or EITC, also known as EIC (Earned Income Credit), is a refundable credit for low- to moderate-income working people and families. The amount of EITC benefit depends on the tax filer’s income and number of children claimed on the tax return.
Many of the people who file of EITC end up facing a tax audit within 3 years of receiving the the tax credit for the IRS to ensure the number of dependents claimed on the taxes are legitimately yours. When this happens the individual will receive a letter about the audit and then an auditor will show up at the residents to review tax filings for up to the last 10 years not just the year in question.
When this happens, we can help! We work with families to prepare for the auditors questions so that the family comes prepared to the audit meeting with all of their ducks in a row. This makes the process faster and helps to reduce the likelihood of a tax burden on the other side of the audit.
Service 3: Tax Audit
In our area, NC, we have noticed an increase of tax auditors who are focusing their efforts on the low income families. They do this because low income families tend to live closer together making it more cost effective for the IRS to hire an auditor in one area to hit several homes at one time.
The other reason the IRS admits to targeting low income families is they are the people with multiple last names in one house hold, and are more likely to claim the EITC.
These factors make the low income areas of our community more likely to get audited. We help with audit preparation by reviewing all of the materials with the families before the IRS does so we can ensure all our documentation is in proper order reducing the likelihood of increased tax burden following the audit.
When you file a tax return and the IRS disagrees with a position you take on the return, a “controversy” results. Usually, the IRS doesn’t agree with the amount of income you have stated or they don’t agree with an expense you claimed. The IRS will send you a letter within a year that assesses taxes and fees to the adjusted income that they believe you actually had. Controversies often occur with taxpayers who normally receive a 1099 but didn’t get the 1099 from the employer, or if you take a tax position that the IRS often disagrees with like number of dependents. Our work with you is to test the validity of the IRS’s disagreement.
2a: Offer in Compromise [OIC] – When a taxpayer has been assessed a tax liability (owes the IRS) and lacks the ability to pay, there is a mechanism to pay a lesser amount. We help the taxpayer file the necessary forms and information to allow the IRS to assess the debt and the taxpayer’s ability to repay. We have a 95% acceptance rate because we only file OICs we think we will be accepted. We are happy to give OIC candidate assessments.
2b: Installment agreements – When a taxpayer has been assessed a tax liability (owes the IRS) and lacks the ability to pay it all now, they may request in an “installment agreement” (repayment plan). Normally, if you divide the taxes you owe by 72 months, and you can make that payment; that is one installment agreement. If you cannot make payment in 72 months, a “partial pay installment agreement” is an option. Partial Pay Plans are more complicated as you must provide income and expense information to prove you can’t make the payment. If you can’t make that payment at all, you fall into currently non-collectable status. They will garnish wages or refunds if you are in this non-collectable status.
2c: Lien releases – The IRS can file a lien in the 10 year period After you have been assessed a tax. You have to have the lien released to sell the property which is a tricky matter if you owe more than $25,000 as you must apply for the release which is a large amount of paperwork.
Service 5: Bankruptcy Tax
We represent people who have filed bankruptcy in front of the IRS, file returns, and negotiate a settlement for the taxes owed.
Service 6: Small Business: Payroll/Trust Account Taxes
Often, businesses owners who are withholding payroll taxes but are not pay the taxes on to the IRS as they should, get assessed a penalty. These are not forgiven if the business files bankruptcy. We represent the owners to help determine a strategy dealing with assessment and repayment. We also help the owner establish proper methods for filing payroll taxes. Further, we also help owners who have issues of whether people are employers or independent contractors.
This tax is assessed automatically if you have been arrested with possession and intent to sell illegal substances (even if never found guilty). This is a stamp tax on illegal substances (normally narcotics or “moonshine”). There is a stamp/sticker you can get from the North Carolina Department of Revenue making your sales legally taxable, but that doesn’t make it legal to sell these substances, just makes you tax compliant. The tax is assessed within 45 days of the arrest, and if it isn’t paid or appealed in that time, you get fined for delinquent payments. These taxes must be resolved as they are not typically dischargeable in bankruptcy.
Service 7: Family-Owned Business Tax Issues
When small businesses and family intertwine, there are many issues that that come as the family’s income and well-being derives from the success of the business. Whether is an individual store, maintenance company, or janitorial service, the tax issues can sink the business that these families need. We are here to help deal with those tax issues as they arise so the business can survive and support the family.
(In those cases, we refer to ESRI and the Vita program.)