Enterprise Consultants Group remains open during the COVID-19 pandemic to assist taxpayers all across the country. Our Tax Attorneys and professionals will work with you over the phone and online to resolve your IRS and State tax issues.

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Suddenly, your nightmare has become a reality – you owe the IRS money, and they’ve placed a lien on your property in order to recover those funds. They’ve sent notices informing you of the lien (or liens) and stated the reasons for these impending penalties. At this point, two different options are on the table – either you satisfy your debt and file to remove the lien, or for one of several very particular reasons, if the lien is not valid, then you must file to have it withdrawn or removed. In both cases, you need to seek professional help to file the proper forms and monitor the IRS’s responses. After all, tax lien removal is never as simple as it sounds. Confused as to next steps? Let’s start at the beginning.

Liens Versus Levies

What’s a tax lien versus a tax levy? The two are tools used by the IRS in order to collect funds from taxpayers who owe them money. However, there are some drastic differences between the two options. A tax lien is very much like a judgement. It’s public record, so anyone find out that you owe the IRS money once the lien if filed.  It’s mainly there to let other creditors know that the IRS has claim against your property.

Although the IRS is persistent when it comes to collecting debts owed, such as unpaid taxes, they also contract with a number of private collection agencies tasked with sending out notices and contacting people who owe back taxes. This can make the collection process a bit muddled and confusing, because there are many scammers out there claiming that people owe debts to the IRS, attempting them to trick them into paying up. These scams can be tricky and financially ruining. In order to ensure that you’re working with legitimate people contracted by the IRS, as well as paying on an actual tax debt, there are several steps that you should take when a collections notice appears in your mailbox.

What You Should Do If You Receive a Collection Notice

In order to prevent people from falling prey to scammers who claim they are working with the IRS to collect back taxes, they have set up a number of safeguards. If you receive a notice from the IRS or one of their contracted collection companies, there are a number of things that you should do in order to not only ensure that the debt is legitimate but also to make the proper payment arrangements to cover any debts that you do indeed owe.

For some people, the scariest sight imaginable can involve having an IRS revenue officer show up at their door – which is completely understandable. There are many reasons why one of these agents might pop up and visit your home or office, and none of them fall into the “good news category.” So, what do you if this nightmare becomes your reality? What are your options? Do you speak with them? Do you hand over as much financial information as you have on hand? Or do you call your tax accounting firm and request their presence to represent you in discussions with the IRS? The correct response is clearly the last one. It’s always a good idea to have professional help in these situations in the form of revenue officer representation, especially if you have someone else handle your taxes and other financial information for you.

So, let’s discuss this situation and the possible ramifications in some more detail.

Why The IRS Might Send a Revenue Officer Your Way

As many know, in March of 2020, the Coronavirus, Aid, Relief, and Economic Security Act, commonly known as the CARES Act, was signed into law by President Trump. As a part of this Act, employers received the opportunity to defer a portion of their payroll tax payments and pass that money on to their employees in order to put more money into their pockets and stimulate the economy. Unfortunately, this tax delay, which is supposed to run from September 1st until the end of 2020, left workers and their employers with plenty of unanswered questions.

What Are Payroll Taxes?

In order to understand how the payroll tax deferral works, you first need to understand the basics of payroll taxes in general. These are the taxes that your employer submits to the governor. The money is taken from your paycheck and sent to the Federal Government on a regular basis, sometimes twice a month, even though it’s deducted from you whenever you get paid.

Due to the COVID-19 pandemic and all its surrounding circumstances, the IRS chose to shift the tax filing deadline. This essentially moved the usual filing date for 2019 taxes from April 15th to July 15th. Whether you owed taxes to the IRS or they owed you a refund for that year, the applicable deadline was still July 15th , giving all taxpayers a few extra months to get their affairs in order. However, now that that date has come and gone, some people may have filed their returns but not paid any amount owed. In addition, others may not have sent in their return at all, either waylaid by the pandemic or afraid of having to pay the IRS an amount that they cannot afford. No matter which category you fit into, it’s important to know that you still have options.

Now Is the Time to File

You must file your 2019 return, regardless of whether you owe taxes or not, now is the best time to file. Yes, you will face the penalties and other fees handed down by the IRS, but with the help of a Tax Professional, they will work with you. However, nothing can be done help you if you don’t file at all.

Everyone, from small business owners to independent contractors, knows there some extremely specific advantages to incorporating. Not only do you receive some protection in case of liability, since the business is held liable, instead of you – the individual owner – (although this depends largely on the circumstances, of course), but incorporating also sets you up to be eligible for plenty of tax breaks.

Since different types of corporations are taxed at varying rates, they are also eligible for many tax breaks that individuals are not. Without a doubt, sifting through the incorporation paperwork may help you quite a bit when filing your yearly federal and state tax returns. But overall, there are five main ways that you can save money on your taxes, simply by incorporating your business. So, you need to be aware of the following advantages when making any big decisions:

1) You Won’t Have to Pay Self-Employment Tax

It seems at times as though the IRS is an all-knowing, all-powerful entity that no one can escape. You can’t run, and you can’t hide. They know how much money you make, how much you have in your bank and investment accounts, and even how much you won while playing roulette at the casino last week. But the real question is: do they truly know all of this? Or do we just assume they do? How can they obtain all this personal information? The answer is pretty simple. In reality, the IRS does have plenty of financially insightful access to everything from your bank accounts to every tax form submitted with your name and social security number on it. But is there a limit to “Big Brother’s” financial access?

How Does the IRS Know That I Have Undisclosed Income?

The IRS uses a sophisticated computer system in order to match up your income as reported on your tax return with everything that your employers have reported under your name and social security number. For example, if you submit a return that only has the money that you’ve made from one client or job, neglecting to enter any of your other income, the IRS’ computers will catch the mistake. Then, you’ll receive a letter from them informing you of their findings and their impact on your current tax situation.

Audits are not a welcomed entity in anyone’s eyes. So, if you’ve just received a notice informing you of an impending IRS audit and state audit, do not panic. In some cases, people or businesses are selected for an audit at random. In others, an IRS audit is triggered by issues with your tax return, either because something appears irregular or incorrect or people associated with you, such as your business partners, are being audited as well. This dreaded process if often filled with stress and fraught with mixed emotions, because it may result in you having to pay fines or back taxes if the IRS or state agents find discrepancies on your filed tax forms. The good news is that riding out an audit doesn’t have to be scary or intimidating, as long as you have professional tax accounting guidance and representation.

How Will You Be Informed of a Pending Audit?

Depending on the type of audit and the inconsistencies found in your taxes, you’ll either receive a certified letter or an official IRS agent will come knocking on your door. In most cases, a letter comes first. It will describe the type of audit that you’re facing (more on that below), as well as how the IRS will further contact you in order to obtain your records.

While it’s common for individuals and businesses to owe money to the IRS, many of them have the means to pay their tax debts when they file every year. However, not everyone can do this, leaving debts owed to the Federal Government outstanding. If you fall into this category, there are some important things that you need to know, including the following:

1) You Still Need to File Your Current Tax Return

Even if you owe the IRS money from a previous year or two, you still need to file your current tax return on time. Not filing can lead to a number of penalties, and it may void any ongoing payment agreements that you have with the IRS. It’s always a good idea to make sure that you send in that return on time, even if that return results in you owing money to the IRS.

Let us begin with a simple question: who prepares your taxes? Many individuals and small businesses attempt to go it alone to cut costs, which can be problematic in a few different ways. Many times, you do not have sufficient time to prepare the documentation properly, so you opt for shortcuts that result in audited by the IRS. You might also make simple, unintentional mistakes because you are trying to balance your company’s financials and your daily business operations, leading to mistakes in your accounting. Though it will require an upfront expenditure, it will save you time, money, and future headaches.

Here are some of the many benefits that a tax professional can bring to the table for your business.

Making Estimated Payments to the IRS

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