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Tax Resolution for Individuals

Tax Resolution for Individuals in Staten Island, NY

Tax trouble can feel like an unless spiral staircase.  Shibu P. Thomas helps end the spiral.

Even though we pay taxes every year, the policies and opportunities make it easy to file returns with errors, or not realize how much you owed. At Accounting, Tax, & Audit Services Shibu P. Thomas, EA, MBA, MS, we provide expert tax resolution services in Staten Island. We help you remain compliant with the IRS while minimizing tax liabilities and securing profits.

If the IRS informs you of problems or if your taxes were filed incorrectly, we can help. Accounting, Tax, & Audit Services Shibu P. Thomas, EA, MBA, MS offers tax problem resolution to address simple or complex issues and set your records straight. Call our experienced team and get help with your taxes today!

Understanding Your Options

Tax resolution involves the development and implementation of solutions to handle your IRS problems. We can help you deal with back taxes, a tax levy or lien, and any other tax problem. Also, we will ensure that you understand all tax relief options and your rights as a taxpayer.

You likely choose to DIY whenever possible to save money. However, tax problems are a complicated situation that requires a tax resolution specialist. How do you know that you need to call a professional? Here are five key signs:

  1. If the IRS is contacting you personally via repeated letters and calls to the extent you have stopped responding
  2. If you haven’t filed your taxes for the last 12 months or more
  3. If you owe the IRS a considerable amount - for instance, more than 5000 dollars. 
  4. When you believe that the IRS is asking you to pay more than you owe them.
  5. When you are facing numerous tax problems and you don’t know what to do.

How Tax Resolution Can Help

The pressure and stress caused by tax problems can be overwhelming. We can carry this burden for you. Check out some of the benefits of tax resolution:

  • You can reduce the money you owe the IRS.
  • You will not face the IRS directly.
  • Your bank account will not be levied.
  • You will avoid losing property through tax recovery.
  • Your credit score might not be affected by the tax issues.
  • You'll receive peace of mind about your tax situation.

Tax laws are complicated, making it easier for tax debts and other tax-related issues to arise. However, with tax resolution, our experts will deal with the IRS on your behalf. Keep reading to learn more about the individual tax resolution services that we offer.

Debt Resolution is Worth the Extra Effort

Shibu P. Thomas helps clients avoid bankruptcy with aggressive debt resolution with the IRSWhen you have a huge tax debt, it's important to explore different debt resolution options. We will negotiate with the IRS on your behalf and strike a deal that considers your financial situation.

Many taxpayers receive phone calls or letters from the IRS regarding back taxes every year. You have to act fast, especially if the notice is related to unpaid back taxes or failure to file a tax return. The worst decision you could make is to ignore the situation. The problem can never go away unless you act.

Our experienced team understands how the IRS operates and what is required to mediate a solution successfully on your behalf. Whether it’s applying for an offer in compromise, minimizing the tax debt or filing past returns, we can handle it for you.

What are the benefits of debt resolution?

  • Collecters will no longer contact you repeatedly
  • You might pay less than you owe
  • You may be able to avoid bankruptcy

You can avoid tax problems through planning and preparation. Tax planning involves identifying the amount of taxes you are paying and finding ways you can reduce the tax liability. There are numerous useful tax plans to consider, such as long- and short-term tax plans, purposive tax plans, and permissive tax plans.

What is an Offer in Compromise?

With an offer in compromise, you can clear your tax debt for less than the full amount you owe the IRS. The offer is considered legitimate if you aren’t able to settle the full tax debt or paying creates a financial hardship. The IRS considers the following circumstances and facts before agreeing to an offer in compromise:

  • Income
  • Ability to pay
  • Asset equity
  • Expenses

An offer in compromise is approved if the amount offered equals the maximum the IRS can expect to collect from you within a reasonable timeline. This option is not for everyone, and our experienced team can review your circumstances and let you know if this is the best choice for your tax problems.

How Do I File for an Offer in Compromise?

To qualify for an offer in compromise, you must file all tax returns and settle the estimated tax amount for the current year. The IRS will not approve an OIC if the amount you offer is less than the RCP (reasonable collection potential).

The IRS uses reasonable collection potential to measure your ability to pay. The RCP comprises the value of your assets like bank accounts, real estate property, and automobiles. It also includes your estimated future income less your basic living expenses. Your payment options include:

  • Lump-sum cash: You pay 20% of your offer when submitting your application and settle the balance in five or fewer payments if your offer is accepted.
  • Periodic payment: You will make an initial payment and then continue paying the balance in installments while waiting for positive feedback from the IRS. If approved, pay every month to clear the debt.

Discover You Payment Plan Options

Shibu P. Thomas can help you discover a payment plan that works for you.

payment plan involves an agreement with the IRS to clear your tax debt within a specified period. You should only apply for a payment plan if you are confident that you will manage to clear the debt in full within the given timeframe. If your short-term payment plan is approved, you will not incur a user fee.

First, file any tax returns that you may have omitted over the past years. Then confirm the amount you will be paying. We can check your return and ensure that your debt is accurate and see that any interest and penalties are included in your tax debt.

We can prepare all your financial documents that prove your expenses and income, including liabilities and assets, credit card statements, and bank statements. Then we will discuss your payment plan options.

Short term payment plan: You will qualify for this payment plan if your tax debt is 10000 dollars or less and you can pay it off in 120 days or less.

Individual installment agreement: This payment plan applies if your tax debt is less than 50000 dollars. You will make payment in monthly installments. You should clear your tax liability within 72 months. The IRS divides your debt by 72 to determine the minimum monthly installment.

Tax Liens and Levies

The IRS can use different methods to collect a debt, the most common tools being tax liens and levies. A tax levy is a legal action that allows the IRS to claim some of your assets and properties to cover a tax debt. The IRS can place a levy on any asset in your name. In most instances, the levy is applied to:

  • Retirement accounts
  • Accounts receivable
  • Checking and savings accounts
  • Subcontractor pay
  • Wages and salaries

tax lien is a legal action against your property. The property is used as collateral to safeguard payment for your tax debt.

Your liabilities can also be deducted from your physical assets, such as business equipment, houses, and cars. Your sources of income and certain types of assets cannot be levied as per the tax laws, including unemployment benefits, trade tools, and household goods.

Understanding Wage Garnishment

Shibu P. Thomas helps clients avoid bankruptcy with aggressive debt resolution with the IRS

When you have a huge tax debt, it is important to explore different debt resolution options. We will negotiate with the IRS on your behalf and strike a deal that considers your financial situation.

Your wages can be garnished to clear your tax debt. A wage garnishment is when the court orders your employer to cut a percentage of your paycheck and deliver it directly to the institution or person you owe. The amount left depends on your standard deduction amount and the number of dependents you have. Your employer will pay you a small amount weekly and give IRS the rest.

Wage garnishment is usually the last tax debt payment option after you have refused to comply with their attempts to solve the debt issue. Since this reduction of wages can adversely affect your finances and lifestyle, we recommended our professional services to help you decide on the best available options and what to do next. There are ways to stop wage garnishment, including:

  • Declare bankruptcy
  • Pay your tax debt completely
  • Apply for an installment payment option
  • Seek professional help
  • Negotiate to pay less
  • Declare hardship

Innocent Spouse Relief

Requesting innocent spouse relief can alleviate the burden of paying penalties, tax debt, and interest if your spouse or former spouse omitted or improperly reported items on your tax return. The interest, penalties, and taxes that qualify for relief are collected from your spouse. However, you are both responsible for fees and interest that do not qualify for relief.

Innocent spouse relief applies to self-employment or individual income taxes only. To be eligible for innocent spouse relief, you need to prove that:

  • You had no idea that your joint return had an understatement of tax when you signed it.
  • You filed the joint return with an understatement of tax solely caused your spouse’s erroneous items.
  • It would be unfair to penalize you for the understatement considering all the circumstances and facts.

Cryptocurrency Tax Filing

Cryptocurrencies are assets so we help with tax laws and cryptocurrencies.

All cryptocurrencies are classified as property by the IRS. You will not pay any tax when buying Bitcoin, but using it to purchase something else is a taxable event.

If you sell any cryptocurrency that you purchased recently at a profit, you should declare short-term capital gains on your tax return. You will pay ordinary income tax rates.

In case you sell a cryptocurrency that you have held for more than a year, you should declare long term capital gains. The gains will be taxed at a lower rate.

If you have been trading Bitcoins, it is essential to keep track of every purchase and sales. IRS regulations tend to be involved, creating compliance issues. In this case, you should consider hiring a professional to handle your cryptocurrency tax filling. At Accounting, Tax, & Audit Services Shibu P. Thomas, EA, MBA, MS, we can show you several ways to reduce your cryptocurrency tax bill, including:

  • Collect money in dollars after selling a cryptocurrency. Avoid saving the earning in the form of another cryptocurrency.
  • Avoid short-term day trading by being a long-term investor.
  • Keep a record of your cryptocurrency transactions.
  • Hire a tax professional to help you file taxes.

Tax Resolution Answers Are Just a Phone Call Away

Tax resolution is essential, especially when you want to avoid problems with the IRS. Approaching the IRS alone can be overwhelming. Our Staten Island tax team works with you to pay back taxes, amend returns, and organize paperwork in the face of an audit. No matter how complex the problem, we are your ally.

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