Taxes Don’t Have to Be Taxing
What causes tax problems?
Most people who own a business or work as a contractor will eventually have a tax issue. It’s most often caused by not thinking about tax payments until they are due, a large unforeseen expense or adjusting spending up as revenue of the business rises but not adjusting down when it decreases.
What makes the problem worse?
When a tax problem arises, many people find it so stressful that they try not to think about it for a while and simply hope that a windfall or increase in business will allow them to catch up. Meanwhile, penalties accumulate, and the interest is compounding daily. They make it worse by trying to handle their own tax case, often allowing their bank accounts to be levied and wages garnished.
It is common to see people worry themselves sick over taxes, letting it affect their marriage and engaging in self-blame. Educating yourself about your options will make all the difference in turning the situation around, and the sooner you make the decision to tackle the problem, the easier it is.
What forms of relief exist?
In some cases, you may prove that you can’t afford to pay anything (and have a $0 monthly payment until the debt expires or your finances improve). In other cases, you may make a lower lump sum offer or enter a Fresh Start agreement that prevents tax liens. Some will obtain a Partial Pay Installment Agreement that will only pay a fraction of the debt.
How do you start repairing a tax problem?
We will make sure all returns are filed for the last six years, ending failure to file penalties. Start withholding or estimated tax payments on current periods before paying any past periods. Recent years should be paid before older taxes since some penalties may have capped on the older years and older years expire sooner. Trust fund taxes such as sales tax and the employer portion of employment tax should be paid before income tax because trust fund taxes can pierce an entity to you.
How should I treat IRS notices?
Any time you receive certified mail, pick it up to ensure that you do not miss any deadlines to appeal levy notices, which would allow them to levy bank accounts and garnish wages. Where the amount is disputed, do not to miss deadlines to appeal. Forward IRS communications to your attorney as soon as possible.
It is common for people to think their case is hopeless only to discover that obtaining relief can be smooth and painless. The freedom gained from correcting a tax situation allows you to focus on your family, business and life again and can make an immediate difference in your happiness.
Calvin Bomar, Tax Attorney
Bomar Law Firm
100 Galleria Parkway SE #480, Atlanta, 404.841.6561
About the Author
Cal Bomar holds an LL.M. in Taxation from New York University and previously worked as tax counsel for the IRS Office of Chief Counsel in Washington, D.C.
He advises both businesses and individuals in audits, tax litigation and tax relief. He handles IRS disputes, administrative hearings and litigation before the United States Tax Court and U.S. District Courts, as well as Georgia Department of Revenue tax cases. He also handles tax cases involving captive insurance company litigation and conservation easement litigation.
He also provides clients with advanced strategies in estate planning, trusts and asset protection, and is an experienced business law and nonprofit organization lawyer.