Author Archives: Carol Coburn

Why This Should Be The Year You Pay Off Back Taxes

According to the IRS, more than 13.2 million Americans owe back taxes. The majority of these cases involve amounts that seem impossible to pay off. 

That leaves those tax-owing Americans in a difficult position. They want to pay, but they can’t, and the end result is feeling a lot of guilt about the situation.  There is no easy way to get out of paying your back taxes. Uncle Sam wants his money, and he’ll get it somehow. 

There are steps you can take to find a solution and make 2020 the year you finally deal with your taxes. 

Note, we always recommend getting in touch with a specialized Tax Resolution Professional to negotiate with the IRS on your behalf. If you’d like to schedule a no-cost confidential tax relief consultation, contact us here. https://gpitinc.com/contact/ Phone: 559-732-5372

Why Now Is the Right Time to Deal with Back Taxes

#1 You’ll End Up Owing Less

The longer you wait to pay your back taxes, the more you are going to end up owing. That’s because the IRS can and will add penalties that run up to 50% of the tax bill. That can add up quickly.   The longer you drag out the situation, the more you’ll need to pay your tax resolution specialist to help you handle everything. The sooner you act, the sooner you can resolve the issue and the less you’ll have to pay. 

If you need help from a CPA, enrolled agent or a lawyer who is also a tax resolution professional, look for someone that will charge you a flat fee rather than an hourly rate. Some cases take longer to resolve, so it’s important to know up front what you’ll be paying in service fees to get your back tax issue resolved.

#2 Housing prices are at an all time high. Time to cash in?

If you own your home or have equity in it, selling it and downsizing may be the best way to settle your tax debt and get a clean slate. Now is a perfect time, too, with housing prices at a premium in many areas of the country. You can use that cash in the bank to settle your back taxes almost immediately. Additionally, if your home is worth more than you owe, you can then reinvest that money or save it for a rainy day. That gives you a clean financial slate to start rebuilding your life. 

#3 Economic Uncertainty

Most experts agree we’re due for a recession soon. How soon? Well, no one knows. What we do know is that having a large back tax bill will only hinder your ability to weather a storm in the event of an economic downturn. 

You might be able to take a low interest loan out now that the economy is still good and settle your tax bill. Taking care of your taxes while the economy is still good will give you peace of mind and breathing room in case things go south with the economy.

Don’t let the burden of back taxes hang over your head any longer. Discover how to solve your tax problem by speaking with our tax relief professionals: https://gpitinc.com/contact/
Phone: 559-732-5372

Watch the FREE video that tells you what you should and should NOT do when you receive the dreaded letter from the IRS at http://gptaxsolutions.com/relief/

When DIY Won’t Do: 3 Times, When Hiring a Tax Relief Professional is the Only Way to Go

When it comes to your money, there’s only one person that truly has your best interests at heart – and that person is looking back at you in the mirror. Handling your own finances and making your own decisions can give you peace of mind and help you avoid a costly mistake.

There is a lot to be said for the do-it-yourself approach to your money, yet the go it alone path does have its limitations, especially when it comes to the IRS and back taxes.

We see clients that have tried to handle their taxes on their own, sometimes raising red flags with the IRS, resulting in audits, or getting hit with a big tax bill they can’t pay. They might setup an installment agreement on their own, but often times, the DIY approach just makes the penalties and interest keep stacking up putting in an endless loop of back taxes. Many of our clients started out by trying to do this on their own or with their current tax preparer.  

 Dealing with the IRS takes a very specialized skill set that most tax preparers and even CPA’s don’t possess.  Make sure you have a tax resolution specialist on your side.

So, before you end up in that horror story, here are 3 times when hiring a tax pro or a tax relief firm like ours is the only way to go.

#1 You Just Received a Major Windfall

Even if you know how to handle your finances, receiving a major windfall can throw your plans for a loop. Whether you are the lucky holder of a winning lottery ticket or the recipient of a major inheritance, it pays to seek outside advice.

If you choose the DIY approach and make a mistake, you could end up paying more in taxes than you should, but a high tax bill is not the only danger. Handling your windfall the wrong way could throw off your asset allocation, impact financial aid for your college-bound children and create additional problems down the road.

#2 You Have Existings Tax Problems with the IRS

When you have issues with the IRS, you absolutely cannot afford to go it alone. Attempting to resolve tax issues on your own is unwise in the extreme, and a single slip up could leave you on the hook for even more. I mean, ask yourself if you would go before a judge in court without a lawyer representing you?  Probably not. It’s the same here. Representing yourself before the IRS is generally not a good idea. Don’t do it. You most likely will get “creamed”!

If you receive a notice from the IRS, time is of the essence, but you should not let the desire for fast action override the need for professional help and guidance. If you want to resolve your issues fairly without going broke, do yourself a favor and find the right tax resolution firm. Hiring an enrolled agent, CPA or an attorney that is trained in tax relief is the best way to preserve your rights, and you do not want to go it alone.

#3 When You Have Assets You Need to Protect

When you owe taxes, the IRS only cares about one thing, and that is to get paid what they think you owe them. 

They’ll levy your bank account, emptying everything you have in there. If you run a business, that means you won’t be able to pay your employees, pay your office rent or keep your lights on, ultimately putting you out of business.

They’ll also garnish your paycheck leaving you about 10% to 25% of your net pay to live on.  Good luck with that.

They can also put a lien on your assets, including real estate, personal property and financial assets. This puts in jeopardy everything you’ve worked so hard to attain.

Hiring the right tax relief professional can help you avoid such extreme measures taken by the IRS. They’ll communicate with the IRS on your behalf and can often remove a lien or levy. If you have assets you can’t afford to lose, then hiring a tax relief pro is the only way to go.

The Bottom Line

Even if you are confident in your DIY approach or feel your tax problem isn’t so serious, it never hurts to get a second opinion. If you are doing everything right, that tax resolution specialist’s advice will give you peace of mind. If there are deficiencies in your actions, the advice you get could stop you from making a devastating, and possibly irreversible, mistake.

If you do run into tax trouble, reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem. https://gpitinc.com/contact/

Phone: 559-732-5372

Watch the FREE video that tells you what you should and should NOT do when you receive the dreaded letter from the IRS at http://gptaxsolutions.com/relief/

3 Reasons You Shouldn’t Talk To The IRS Yourself If You Owe Back Taxes

If you owe money to the IRS, it might sound like common sense to try to tackle your tax problem on your own. However, one of the worst things you could do is talk to the IRS directly without proper representation.

As an expert Tax Resolution Firm, we encourage all readers facing a tax problem to contact us for a free consultation https://gpitinc.com/contact/
Phone: 559-732-5372

The IRS is not on your side and their primary goal is to collect the taxes they believe you owe. In this article, we give you 3 reasons why talking to the IRS directly could get you into deeper trouble. 

  1. You Have Rights

Contrary to popular belief, you DO have rights as a taxpayer you probably don’t even know exists. One of those rights is the right to representation.  If an IRS revenue officer or revenue agent calls or “visits” you, did you know you are under no obligation to answer any of their (very intrusive and condescending) questions? You politely respond by asking for their contact information and telling them you are in the process of hiring a professional to represent you and that this person will contact them directly.  A CPA or Enrolled Agent (EA) that deals with IRS problems for a living knows the “ins” and “outs” and how to deal with the IRS so that your rights are protected. A tax resolution specialist also knows how to get you the lowest possible settlement allowed by law. Generally, our clients never meet or speak with the IRS once we’re on the scene!

 

  1. Answering Questions Can Dig You Into A Deeper Hole

If you are being audited or about to be – The IRS will ask you about 50 very intrusive questions in the initial interview with them.  How you answer these questions will dictate the fate of your case. Having a tax resolution specialist conduct these meetings, WITHOUT you is the best course of action I can recommend.  Half of the referrals to the IRS’s criminal investigation division (CID) come from that “nice” auditor you’re sitting across the table from the audit.

 

  1. They won’t tell you about all the settlement programs and options you have. The just want their money.

If you owe between $10,000 and $25,000 plus, the IRS has many NEW flexible programs, under their Fresh Start Initiative,  available to taxpayers such as Offer in Compromise, Partial Pay Installment Agreements, Payment Plans, Penalty Reduction, and Currently Not Collectible Status to name a few. Each carries with it its own unique process, procedures and qualifications.  Having an experienced Tax Pro in your corner ensures you are taking advantage of the best options available to you.

One last thing….

Ask yourself this question: Would you go to court without a lawyer?  

If you answered “yes” hopefully you know the law inside and out concerning your case, but if representing yourself doesn’t seem like a great idea it’s best to hire somebody who is well versed in the subject matter.  Well, it’s the same thing with the IRS. Having someone who knows how to negotiate the IRS’s maze of rules, regulations and the 74,000 pages of the Tax Code and deal with the IRS may be the best money you’ve ever spent!

If you want the help of an expert tax resolution professional who navigates the IRS maze for a living, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. https://gpitinc.com/contact/ 

Phone: 559-732-5372

Watch the FREE video that tells you what you should and should NOT do when you receive the dreaded letter from the IRS at http://gptaxsolutions.com/relief/

8 Reasons to Work with a Tax Resolution Professional To Resolve Your Back Taxes

When you owe money to the IRS, it is hard to think about anything else. While being in debt is never fun, no matter who the creditor is, the IRS enjoys almost unlimited power to collect the money they are due.

Unlike your mortgage lender or credit card company, the Internal Revenue Service has the power to attach your wages, raid your bank account and even take your freedom. No other creditor even comes close in terms of its power and influence, and taking on the agency on your own could be asking for trouble.

If you have received a notice from the IRS, you need to act fast, and you need the right assistance in your corner. Taking on the IRS requires specific expertise, and that is why it is so important to work with a quality tax resolution company. Here are nine reasons why working with a tax resolution service could save your good name – and your bank account.

  1. You gain specific expertise. The IRS is a specialized agency, and you need expert advice and guidance to get the most positive resolution.

 

  1. It will give you peace of mind. Just being contacted by the IRS can make your heart beat a bit faster, but working with a tax resolution expert can set your mind at ease once you hire a tax resolution. Generally, once you hire a tax resolution expert you won’t have to meet or speak with the IRS.

 

  1. The tax resolution process could save you a lot of money. Tax resolution agents are experts at settlements, and working with one could save you a ton of money.

 

  1. Timely action could save your home and property. If you wait too long, you could put your home, business, bank accounts and personal property at risk. Time is of the essence when it comes to resolving tax issues, and timely assistance could make a world of difference.

 

  1. You will feel less alone. Few things feel as lonely as fighting the IRS on your own. When you work with a tax resolution expert, not only do you  not have to go it alone but they actually step into your shoes and to represent your best interests.

 

  1. You will have a chance to file missing returns. When faced with a big tax bill, it is easy to do nothing, but failing to file tax returns could have serious consequences down the line. If you have years of unfiled returns, a tax resolution expert can help you catch up.

 

  1. Expert help could make an audit less scary. Receiving that audit notice in the mail can be pretty frightening, but a tax resolution expert can guide you through the process. When you work with a tax resolution professional, you will have one less thing to worry about.

 

  1. You could save your credit score. Unresolved issues with the IRS will reflect badly on your credit report, lowering your credit score and making it harder to borrow money or qualify for a mortgage. Timely tax resolution could preserve your stellar credit score and help you avoid those serious consequences.

Owing money to the IRS can be pretty frightening. There is a reason those three letters strike so much fear into the hearts of ordinary citizens, even those who have done nothing wrong.

If you are in trouble with the IRS, you cannot afford to ignore the issue, so act fast and get the help you need today. Working with a tax resolution expert carries a host of benefits, starting with the nine outlined above.

Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem. https://gpitinc.com/contact/

Phone: 559-732-5372

Watch the FREE video that tells you what you should and should NOT do when you receive the dreaded letter from the IRS at http://gptaxsolutions.com/relief/

Why Early Adopters of Cryptocurrency Should Explore Their Tax Resolution Options Now

The stunning rise in the value of Bitcoin, along with the myriad of cryptocurrencies, is surely one of the biggest financial stories of the 21st century, at least so far. What started out as a mere curiosity and niche project for programmers and geeks has quickly blossomed into a full-fledged financial asset, and an increasingly popular one at that.

For early adopters, the financial returns have been simply mind boggling. You may have heard about the generation of Bitcoin millionaires, and there are plenty of those newly rich investors to go around.

Given the rapid rise and relative anonymity of Bitcoin transactions, it was only a matter of time before the IRS caught on, and the tax agency has caught on – and caught up – in a big way. After years of taking a hands-off approach to cryptocurrency investments, the IRS is now paying close attention – and requesting the real world identities of those supposedly anonymous buyers and sellers.

While every investor in cryptocurrency should be aware of their potential tax liability, the problem could be even more acute for early adopters – the very investors who have profited the most from this unique form of digital payment.

As with all things tax, the Internal Revenue Service is likely to start where the big money is, and the tax agency has increasingly set their sites on early adopters. If you were prescient enough to buy into the promise of Bitcoin and other cryptocurrencies when everyone else was looking the other way, it may be time to settle up with the IRS.

For early adopters of cryptocurrencies like Bitcoin, a little proactivity could go a long way. The IRS has already requested records from Coinbase and other big cryptocurrency exchanges, and it is only a matter of time before they catch up to you and your profits.

For now, the tax agency claims it has requested information on only the largest accounts, but it is reasonable to assume the IRS will expand its scope in the future. If you have booked your Bitcoin profits and want to settle up with the IRS, contacting a tax resolution agency now could save you a lot of money – and potentially a lot of grief.

There are many reasons for early adopters of Bitcoin and other cryptocurrencies to work with a tax resolution service, starting with the complexity of reporting profits in digital currency. The IRS is still fairly new to regulating and taxing cryptocurrency, and there has been a lot of confusion and misinformation over how profits are taxed and how people are supposed to pay.

Regardless, if you haven’t reported your crypto earnings or filed your taxes for the past few years, it’s time to do so now. By working with a tax resolution expert, you will gain access to a world of expertise, so you can draw on that knowledge to accurately report how much cryptocurrency you have purchased, how many coins you have used and how much you have gained or lost on each transaction.

This accounting is very important, since it could impact not only your tax bill but any future taxes and penalties. According to the IRS, holders and users of cryptocurrencies have been responsible for reporting their gains all along, and failing to do so could mean big penalties and lots of back interest.

A tax resolution specialist will be able to guide you through what is surely one of the most complicated tax situations in many years. The very complexity of the cryptocurrency market makes navigating the tax consequences especially difficult, and it never hurts to have some expert assistance in your corner. So do yourself a favor and come clean now – the IRS has finally caught on to the cryptocurrency revolution, and the tax agency is making up for lost time, and making the lives of early adopters a lot more difficult.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

https://gpitinc.com/contact/

Phone: 559-732-5372

Watch the FREE video that tells you what you should and should NOT do when you receive the dreaded letter from the IRS at http://gptaxsolutions.com/relief/