- Had never kept any financial paperwork: no checks, no receipts, no bills
- Didn’t maintain any accounting system
- Owed over a million dollars in back taxes
- Were about to lose their home and all their personal property
- Had their wages garnished
- Hadn’t filed taxes in over 15 years
- Had no means to repay the IRS
Each of these problems was resolved and all of these clients cleared their files completely with the IRS.
If you have a large problem, there are many things you can do to eliminate the problem:
1. Find all your information. Make lists of where you’ve worked, your mortgage companies and charitable organizations. Look for the have original corresponding information.
2. Make sure that what you’ve filed in the past was correct. You can always check the notices the IRS has sent you in the mail.
3. Educate yourself on your problem. Search the internet for your specific problem: “Haven’t filed returns;” or “Owe payroll taxes.” Education will help ease your mind. Owing taxes is a common problem, not punishable by jail-term or public humiliation. Education will also help minimize your accounting fee.
4. Hire a professional. Accountants may cost you some dollars, but their extensive knowledge of the tax code can save you money by minimizing your tax liability.
5. Respond in a timely fashion to your tax professional in the format he or she asks for. If you can’t find some information, ask for help.
6. Focus on one step at a time. Yes, you might have a huge problem and the mound of paperwork may seem insurmountable at first. But the larger the problem, the more each tiny step will offer you psychological relief and lead you back to peace of mind.
7. Set realistic goals. Understand that if you haven’t filed a return in a decade the IRS may not remove your penalties. If you’ve had no extenuating circumstances, you may owe the entire bill. But, working with professionals, you can minimize your liability and create a payment plan you can handle.
8. If you have difficulty keeping up with your payment plan, request an extension. Remember, the IRS wants its money. They will help you give it to them.
How Tax Matters Solutions Can Help
The CPA’s at Tax Matters Solutions look at all aspects of a client’s finances for the greatest tax-savings and for the best resolution of any outstanding issues.