Tax problems (IRS, FTB, EDD, CDTFA) can arise for various reasons, from simple mistakes in filing to intentional evasion of taxes. Regardless of the cause, it’s essential to take prompt action to resolve your tax issues as soon as possible. The longer you wait, the more complicated and potentially costly the problem may become.
Here are some common tax problems and steps SLO individual and business taxpayers you can take to resolve them:
Unfiled Tax Returns
If you have missed the deadline to file your tax returns, it’s never too late to catch up. The IRS, and state tax agencies, encourage taxpayers to file all delinquent unfiled returns and pay the taxes owed. You can file back returns online or by mail, and the IRS, FTB, EDD, CDTFA will process them and send you a bill for any taxes owed.
If you’ve failed to file tax returns for one or more years, it’s important to act as soon as possible to resolve the issue. Failing to file taxes for multiple years can result in significant fines and penalties, and it can also limit your ability to file for certain tax benefits in the future.
To resolve this issue, you’ll need to file all missing tax returns as soon as possible. You may be able to obtain copies of your W-2s and 1099s from your employer or financial institution.
Our tax representation firm led by Mike Habib, EA can help you resolve your tax matter and get your life back order, call us today at 1-877-78-TAXES [1-877-788-2937].
Incorrect Tax Returns
Another common tax problem is filing incorrect tax returns. This can happen for a variety of reasons, such as incorrect calculations, failing to report all of your income, or claiming deductions that you’re not eligible for.
If you discover errors or omissions on a previously filed tax return, you can file an amended return to correct the mistakes. To do so, you’ll need to fill out Form 1040X, Amended U.S. Individual Income Tax Return. It’s essential to act quickly because there are limits to the amount of time you must claim a refund or make changes to a tax return.
To resolve this issue, you’ll need to file an amended tax return using Form 1040X, Amended U.S. Individual Income Tax Return. You’ll need to correct the errors on the original tax return and submit the amended return to the IRS.
If you owe additional taxes as a result of the amended return, you’ll need to pay the additional taxes owed as soon as possible to minimize interest and penalties. You may also be eligible to set up a payment plan with the IRS if you can’t pay the full amount owed.
Unpaid Back Taxes – IRS, FTB, CDTFA, EDD
If you owe back taxes, it’s essential to pay the amount owed as soon as possible to avoid further penalties and interest charges. The IRS offers several options for paying taxes (personal 1040, corporate 1120, employment payroll 941), including electronic funds transfer, credit or debit card, and check or money order. If you can’t pay the full amount owed, you may be able to set up a payment plan or settle with an OIC offer in compromise with the IRS and or state tax agencies.
Failing to File Taxes on Time
One of the most common tax problems is failing to file taxes on time. Whether it’s due to forgetfulness or lack of funds to pay the tax owed, the result can be significant fines and interest charges. To resolve this issue, the first step is to file your taxes as soon as possible, even if you can’t pay the full amount owed. The IRS charges a 5% monthly penalty on the amount owed, so it’s best to file as soon as you can to minimize the amount of penalties and interest charges.
If you can’t pay the full amount owed, you may be eligible to apply for a payment plan with the IRS. To do this, you’ll need to complete Form 9465, Installment Agreement Request. This form will allow you to set up a monthly payment plan to pay off your debt over time. You might also qualify for an OIC offer in compromise for lump sum settlement.
Tax Levies and Liens – IRS, FTB, EDD, CDTFA
A tax levy is a legal action taken by the IRS or state tax agency to seize your assets to pay off outstanding tax debt, garnishing paychecks, levying bank accounts and accounts receivables. A tax lien is a claim by the government on your property to secure payment of taxes owed. To resolve tax levies and liens, SLO taxpayers willl need to pay off the debt in full or negotiate a payment plan or an offer in compromise with the IRS or state.
Audit – IRS, FTB, EDD, CDTFA
An IRS or state audit is a review of your tax returns to determine if the information you provided is accurate and complete. If you receive a notice of an audit, it’s important to respond promptly and provide the necessary documentation to support your claims. If the audit results in a change to your tax bill, you’ll need to pay the additional taxes owed.
Being audited by the IRS or state can be a daunting experience, but it’s important to understand that an audit doesn’t necessarily mean you did something wrong. The IRS and or the state audits a percentage of tax returns each year, and it could be for a variety of reasons.
If you’ve been selected for an audit, the first step is to gather all of your documentation and records related to the items being audited. This may include receipts, invoices, and bank statements. You’ll also want to review the tax laws and regulations related to the items being audited to ensure that you have a solid understanding of your tax liability.
In most cases, you can resolve an audit by working with the IRS to provide the necessary documentation and information. If you disagree with the IRS’s findings, you can file an appeal, and in some cases, you may want to consider hiring a tax professional to represent you.
Fraudulent Tax Returns
If someone has filed a fraudulent tax return using your personal information, you’ll need to take immediate action to resolve the issue. You’ll need to file a report with the IRS and provide documentation to prove your identity. The IRS will also need to investigate the matter to determine who filed the fraudulent return.
Our tax representation firm led by Mike Habib, EA can help you resolve your tax matter and get your life back order, call us today at 1-877-78-TAXES [1-877-788-2937].
Facts, Cities in San Luis Obispo County
- City of Arroyo Grande.
- City of Atascadero.
- City of Grover Beach.
- City of Morro Bay.
- City of Paso Robles.
- City of Pismo Beach.
- City of San Luis Obispo.
San Luis Obispo is a popular tourist destination, known for its historic architecture, vineyards, and hospitality, as well as for being home to California Polytechnic State University, San Luis Obispo. San Simeon, Hearst Castle This palatial estate built by newspaper magnate William Randolph Hearst is one of the most visited attractions in California.
IRS, RO revenue officer, RA revenue agent
2384 Professional Parkway
Santa Maria, CA 93455
