Do you owe on your income tax from prior years? Our FIA Tax Relief Program offers solutions for taxes owed.
This can be the result of many different situations. Some common ones include:
- Maybe your spouse told you she was filing and paying the tax, but she didn’t. Then she left. And you’re left holding the bag.
- Retirement savings withdrawal. When you’re under the age of 59 ½ and don’t have a qualifying reason for the withdrawal, it is subject to a 10% early withdrawal penalty as well as ordinary income tax. Ouch! Many times there is no tax withheld and you end up in a bad spot!
- Not making estimated tax payments. We see this all the time with business owners and 1099 contractors. You had a great year in business, but no one told you to send some in for your tax. Now you’ve spent all the money I owe all the tax and a dark cloud develops. What next?
- Income reported to the IRS but not included on your tax return. Most times the taxpayer never got this piece of paper. Somehow it got lost and not included on the original tax return. But it triggers a letter assessing more tax along with a demand for payment. This needs to be looked at carefully, as many times it can be reduced.
- If you had stock sales reported, the IRS assessed tax on the sale price and likely didn’t take your basis in the stock into account. This can cause very large assessments that are completely inaccurate!
- If you had cancellation of debt income reported on Form 1099-C, it might qualify for exclusion from your taxable income. Some examples are debt from your main home or other debt if you were insolvent on the date of the forgiveness.
- If you received a 1099 for work performed, the IRS will not take into account any expenses incurred in earning the income. These have to be added by you with an amended return.
- An Audit. Audit findings aren’t set in stone. Is it correct? Did you respond to the audit notices? We had one client who came in owing $100k from an audit he didn’t respond to. When we finished, his tax liability was $0.
- Maybe your tax preparer was found to be perpetuating Earned Income Credit Fraud. This is serious business and we see taxpayers pretty frequently who got big tax refunds from the Earned Income Credit that were later disallowed because they weren’t entitled to it. When a tax preparer is filing these fraudulent returns and getting big refunds for their clients, the IRS may audit their entire client base. Yes, the preparer gets in trouble, but so do their clients, even when they have no idea they did anything wrong. The IRS will demand that the money be repaid.
- If you or your family members have suffered an accident or extended illness.
- Trouble with children or parents:
- Aging or ill parents
- Sick, special needs or drug addicted children
- Business downturn
- An increase in business