• Describe your day-to-day business activity.
• How many employees do you have?
• What is the name of your accountant?
• What was the amount of your starting capital and how much did you earn by the end of the year?  (Be careful when answering these questions.  The Internal Revenue Service will use this information when examining your filed tax return.)
• What is the name of the bank where you hold your business accounts?
• Provide proof of your present income and all necessary documents supporting your tax reporting.
• What is the method used by your accountant to determine your business income and expenses?
• If you have a business loan, provide your agreement with the loan company.
• What is the method you use for inventory?
• How do you verify your expenses?

These questions are included on IRS Form 4700 Supplement that pertains to businesses.

In order to avoid complications with the Internal Revenue Service be certain that you do the following:

• Profit and income reporting must be accurate.  No matter how you may obscure certain income, the Internal Revenue Service has a great ability to locate unreported dollars.
• When completing your business tax return, never use round numbers.  Enter the exact figure, even if it is only a penny.
• Double check your records, or have someone else go over them, prior to submitting your return to the Internal Revenue Service.
• Keep confidential the amount of your yearly business income and the amount of business taxes you paid.
• Copy and retain all expense receipts.
• Report only the business expenses that are necessary for the operation of your business.
• Be certain you are using the correct IRS forms to avoid problems with the Internal Revenue Service.

The post Questions usually asked by the IRS appeared first on IRS Tax Debt Relief at Instant Tax Solutions.

Instant Tax Solutions is one of those tax firms that you can find through internet and it is known to be the best in the country.  Even Better Business Bureau or BBB.org says so and with the rating of A+ as well as the positive reviews from clients who could question about that?

With the credibility of the  firm more and more people wants Instant Tax Solutions to handle their taxes because not like other tax firm Instant Tax Solutions never give promises that gives false hope to their clients instead they give assurance that they will be working hard to resolve whatever tax issues we have to the Internal Revenue Service.

Instant Tax Solutions has one goal that is to help as much as they can to those people who are having a hard time resolving their tax problem which is why the team of Instant Tax Solutions compose of legal counsel, Federal enrolled agent, CPAs and former IRS Revenue Officers take pride that they could provide such services that help people gain back their freedom from the Internal Revenue Service.

A lot of people may say that it is important for them who to hire according to what others are saying about certain company or firm which is why Instant Tax Solutions Reviews is big help to boast the rating of Instant Tax Solutions and with Better Business Bureau, I Vouch and Trust Link reputation that people usually use it make the firm more stronger and trustworthy.

As a taxpayer we need this kind of tax firm that we can trust to handle our tax problem without us worry every time we think about our taxes.  In short do not hesitate to call Instant Tax Solutions in order to get honest opinion in regard to your tax issue with the Internal Revenue Service.

The post Instant Tax Solutions: A trustworthy and dependable tax firm appeared first on IRS Tax Debt Relief at Instant Tax Solutions.

• Notice of non-receipt of credit for exact tax payment
  • The Internal Revenue Service has been known to post a tax payment in the wrong year.  This explains how a taxpayer can have a refund from a previous year but end up having to pay the next year.  This can be fixed; however until it is, your “assumed” tax debt is being increased with penalties, interest and fines.  You must make the Internal Revenue Service aware you are questioning the accuracy of the notice and ask them to fix the problem.  If you have trouble making contact or getting a satisfactory response from the IRS, a tax professional can resolve the issue for you.  Always ask for a copy of your transcript of account as evidence of correction.
• Notice states your income incorrectly
  • The Internal Revenue Service has a record of your income, but it is not for the right taxpayer.  This can happen if an employer makes a mistake by mixing up employee names and social security/tax ID numbers.   It is imperative to respond to the IRS notice with the correct information.
• Notices of additional taxes owed on income reported as non-taxable
  • The claim of non-taxable income can consist of gifts, loans or inheritances.  Be absolutely certain of the accuracy that your claim is taxable before paying the additional amount requested by the Internal Revenue Service.
• Notice stating the IRS never received your tax return
  • When submitting your tax return by mail, be sure to send it as Certified Mail with a signed return receipt requested.   Keep all online confirmations of submission as well.

When the Internal Revenue Service sends you a notice, read it thoroughly to ensure your understanding and confirm accuracy.  If you find any mistakes, inform the Internal Revenue Service prior to making any payment.

Because of the red tape and enormity of the Internal Revenue Service, you may end up in a disagreement regarding their information.  You can challenge the IRS.  It must first be done in writing.  Your letter must be direct and to the point and must include personal information such as your name, address, and social security number.  Indicate clearly the tax year that is referenced in the notice.

Always be polite and business-like when writing to the Internal Revenue Service.  It is important to establish a good first impression.  Remember the Internal Revenue Service knows very little about you and your tax situation.  By clearly stating what your tax problem is, it will be easier for them to make the corrections.

The post Reasons why an IRS notice can be incorrect appeared first on IRS Tax Debt Relief at Instant Tax Solutions.

If you have given an opportunity to tell the Internal Revenue Service about your business (yes, an audit can be a blessing), then you should benefit from it.  You can take advantage of the situation, which can possibly result in a limited access to your financial records ensuring a good audit result in the end.

Where will the audit happen?

The Internal Revenue Service randomly selects a business for an audit with no set pattern of timing or location.  Usually your business will be audited where your financial records are located to ensure access to all the books.  It can also take place at another location as long as you bring all your records and books.  There are times that taxpayers will ask that audit be conducted at the Internal Revenue Service office so that they have a limited access to the records.  It’s always prudent to get advice from a tax professional on making these choices.

By law, the Internal Revenue Service auditor must perform the audit where the business is located.  If you are in disagreement regarding the location, you can ask for another venue.  However, you must be certain to bring all records to be made available to the Internal Revenue Service auditor.  Forgetting something can cause delays and trigger suspicion.  If the audit is going to help your business, you must allow the auditor access to your facility and you must be present to answer the auditor’s questions.

If you request another location to do the audit, you must have an adequate reason. Two examples are:

•    Protecting the image of the business
•    Avoiding  interruption of the flow of your business

Most importantly, just because you are being audited does not give the auditor the right to interview your employees or observe how your business runs.

The post Does the IRS have the right to know about our business? appeared first on IRS Tax Debt Relief at Instant Tax Solutions.

As the Instant Tax Solutions expands, Pedersen found there are many people that have the same passion to help confuse clients. CPAs, Federally Enrolled Agents, tax attorneys and former IRS agents become part of the growing family of Instant Tax Solutions. As a result, the company was able to help many clients to experience financial growth and freedom.

Aboard Instant Tax Solutions are forty tax professionals and still growing. They have only one goal – to lend a hand to people who seek professional advice from professional people. With updated knowledge about IRS procedures, tax debt relief programs and the quality of service, this tax relief company has achieved a perfect rating from Better Business Bureau and receives referrals from their past clients.

Pedersen continue to look for partnerships, agents and experiences to make the company’s missions and values solid like the foundation of Instant Tax Solutions team. They are straightforward with their clients, they tell them upfront the real situation and how can you resolve following the IRS procedures. They ease the fear of the clients and offer the best solutions for any tax problems.

Instant Tax Solutions make sure their clients are the top priority and leave them fully satisfied with the services. The combined experience of Pedersen and Woodman and staff of the company is almost equals to 100 years of tax relief background. They vow to continue to offer professional and genuine services to clients, and make sure they are updated of any tax changes especially in IRS. Instant Tax Solutions team makes sure this heavy burden will be lifted from your shoulders to be able to enjoy your financial freedom.

The post About Instant Tax Solutions appeared first on IRS Tax Debt Relief at Instant Tax Solutions.

However before you question the penalty assessed by the Internal Revenue Service, you must be knowledgeable about their system of taxpayer notices.  For example, a notice is used by the Internal Revenue Service to inform you there is problem with your taxes.  Often, the notices involve tax returns you filed from previous years.  This means the amount of money owed to them has been increasing regularly due to penalties and compounding interest.

There are thousands of penalty notices being sent by the Internal Revenue Service every year which can be reduced if the taxpayer is alert.  You must keep in mind that not all notices are right.  Even the Internal Revenue Service admits that not all of their notices are correct.  Unfortunately, if you do not understand these notices, you can end up paying too much money or paying money that is not owed.  The Internal Revenue Service must assess these penalties based upon the limited information they have.  The error will not be known to them unless you, the taxpayer, informs them.  The burden of proof rests on the taxpayer, and if the Internal Revenue Service is not challenged, they will continue collecting the amount of money they state is due.

The Internal Revenue Service often makes mistakes that are not rectified.  These mistakes can be questioned by a good tax expert and often resolved in the taxpayer’s favor.  Even though you believe there are errors in the IRS notice as well as the amount of penalties added, you must remember that you must respond every notice from the Internal Revenue Service.  You can question it together with your tax expert, but ignoring it only escalates the problem.  It will not just drop off the books.

With all the mistakes made by the Internal Revenue Service, it is possible that you could be the one to receive a notice. You can do something about it! Visit http://www.instanttaxsolutions.com/tax-problems/irs-penalties/ for more about IRS Penalties.

The post What IRS penalties and notices mean appeared first on IRS Tax Debt Relief at Instant Tax Solutions.

Facing the Internal Revenue Service can be stressful.  We tend to talk too much or freeze when we get nervous.  This can often cause the auditor to lean toward thinking something is wrong on your tax report.  Auditors tend to be very quiet while examining files.  This is not an indication that something is wrong.  Do not allow yourself to react.

When you are with the auditor, try not to talk too much.  Every word you say can be used as information that can damage your tax report integrity.  There is no need to instigate a conversation with them.  Answer their questions as clearly and truthful as you can.  Keeping quiet during an audit is the best choice.

Do not forget all the Internal Revenue Service auditors are trained on what to ask about your taxes as well as to observe your body language during the audit.  In short, be careful when you are with the auditor.  When you meet the auditor, be courteous, respectful and polite.  Assure him you are open and ready to cooperate with his requests.  A brief conversation about the weather or sports can lessen the tension.  The auditor may not engage in much conversation as he will be in a hurry to complete the job.  You can assist the process by making sure that all documents are ready and available for him to begin.  The faster the Internal Revenue Service finishes the audit the better.  There will be fewer questions asked and you can breathe again.

Do not try to offer anything (other than coffee) to the Internal Revenue Service auditor.  It can be misconstrued as bribery.  Just let them do their job.  Remember that less talk is the best policy.

The post How to act during an audit appeared first on IRS Tax Debt Relief at Instant Tax Solutions.

The Internal Revenue service has a tremendous amount of power.  They can close your business or foreclose on your house if they believe you have no plan to settle your tax debt.  If you are frightened when you receive their letters, it will be even more frightening if you do not face the problem and end up losing everything you have.

If it has come to the worst and you have an insurmountable tax debt, the good news is you may be able to get it resolved with help.  The Internal Revenue Service offers various tax relief programs.  You need to familiarize yourself with the current tax laws to help you understand how to take advantage of the options the government has given you.  The difficulty for most taxpayers is that the tax laws become more complicated every year.  Most taxpayers become overwhelmed and, instead of receiving the benefits provided by the Internal Revenue Service, they opt to procrastinate or hide and then suffer the consequences.

Do not be discouraged if you cannot understand the tax laws.  You can hire a tax professional at any time in the process.  Allow a good tax relief team to deal with the Internal Revenue Service on your behalf and negotiate an affordable and fair repayment plan.  Having tax professionals in your corner can help you resolve your tax debt and avoid wage garnishment and bank levies.

The post Introduction to life owing a tax debt appeared first on IRS Tax Debt Relief at Instant Tax Solutions.

Suggestion:  Do not use a personal check to pay the Internal Revenue Service as it will give the Internal Revenue Service information regarding your personal checking account, i.e. account number and bank routing number.  Make certain you have extra copies of the Cashier’s Check or Money Order you used to make the partial payment as proof of payment.  You may need it in future negotiations with the Internal Revenue Service.  To ensure that your payment is received, us the bar coded envelope provided by the Internal Revenue Service.

Whether you are in the United States or working outside the country, you must still pay your taxes.  If you are working in the U.S. and are on assignment in another country, a portion of your salary will be withheld as payment for taxes.  It is important that you understand the details of your salary withholding to ensure your tax obligations are in order.

You can file for an extension if you plan to return to the U.S. and prepare your taxes yourself.  However, keep in mind that every day of delay will cost you money in penalties for late filing.  If you are not around during tax season, you can file your taxes online, pay them partially, and take care of the balance when you return.

The post You can partially pay your taxes to lessen the penalties and interest appeared first on IRS Tax Debt Relief at Instant Tax Solutions.

If the Internal Revenue Service assesses civil penalties, you will be fined 5% for every month you are past due up to five months after April 15^th.  The fines increase to 25% per month after five months.  In addition, you will be charged a 1% late payment fee each month.  More bad news – the interest charged on the overdue amount will continue to increase monthly as the balance owed increases each month.  Interest is charged on the unpaid penalties and fees that are added to your balance.  Each month that passes, you will owe even more.

The expense of penalties and fees is not a deductible item on your taxes unless it is a business tax.  It is best to settle your taxes as soon as possible to eliminate the compounding effect on the amount you owe.  Consider borrowing the money you need to pay your taxes.  It is better to pay a little loan interest than to continue to rack up expensive penalties, interest and fees.

Even though you may not owe any taxes and are due a refund, the Internal Revenue Service can bring charges against you for failure to file and you will forfeit your refund.

If you have allowed many years to elapse without filing and paying the taxes due, the Internal Revenue Service can file a legal case against you.  If found guilty you can be fined thousands of dollars and possibly go to jail for “tax evasion”.

The post What are civil penalties? appeared first on IRS Tax Debt Relief at Instant Tax Solutions.