When you owe back taxes, you're often up at night, so worried that you can't sleep. You're embarrassed to tell your family, friends or even your significant other. You're afraid to pursue a relationship. You're scared to tell someone about this problem that you're having. So even though it's hurting you financially, what it does is hurt you mentally. Because you're not resting, you're thinking about other things. Instead of focusing on the important things — your job, career and relationships — it's taking away your mind power from that.

Start to resolve your problem and take steps to hire a professional, and you'll feel much better. We see that all the time. People always say they feel this sigh of relief just by signing up. And then once we resolve the problem, it's like this gigantic weight has been lifted off their shoulders, and they can now buy a house, get married, and do all the things they wanted to do that they were worried about previously.

Let me help you solve your tax problems so you can sleep better at night. Schedule your free consultation with me at 201-479-2572 or visit www.201tax.com.

Why do so many successful business owners have tax issues? Entrepreneurs at the beginning wear so many hats. They are doing the actual work, getting the clients, doing the sales and marketing, hiring people, serving as the HR department, doing inventory, getting supplies, materials and MANY MORE. With all these tasks at hand, one thing that can easily fall behind is their taxes.

Keeping books up to date is often put aside, especially if the business owner does not know how to keep a good record. And then, when time becomes tight, and they need to file, they don't have the money to pay. What happens? This starts to create a snowball effect. It can happen one year or two years in a row, and then it becomes a 5-6 figure tax debt. So what do you need to do to resolve it going forward? You need to first come up with a plan to get everything filed and deal with your taxes prior. Most importantly, you need to develop a system to ensure that you don't fall behind.

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Let me help you solve your tax problems so you can sleep better at night. Schedule your free consultation with me at 201-479-2572 or visit www.201tax.com.

Why do many real estate agents have tax problems? There are several reasons why they find themselves behind with their books. They mostly file 1099s for commissions, referral fees and other compensations, and it will take much attention for them to get organized, be careful with deductions and file their returns.

As self-employed or independent contractors, they don't have taxes withheld from their paychecks. What happens is they go long periods without paying dues. Also, it may take a while between deals to close, and their income is variable. Lastly, and most importantly, we found that their spending level stays the same. So even though their income level changes, they're still spending the same amount, and when the time comes to pay taxes, they may not have the full amount. 

Are you a real estate agent or broker needing help with your books? Save yourself time, money and energy from making tax mistakes and talk to the professionals.

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Let me help you solve your tax problems so you can sleep better at night. Schedule your free consultation with me at 201-479-2572 or visit www.201tax.com. 

Does New York State have an Offer in Compromise program like the IRS? YES, the State can provide financially distressed taxpayers with the chance to settle their tax debt once considered eligible. According to the NYS Dept. of Taxation and Finance, the following taxpayers can qualify to apply for an offer in compromise: 

• Individuals and businesses discharged from bankruptcy 
• Individuals and businesses that are insolvent (liabilities, including tax liabilities, exceed the fair market value of assets) 
• Individuals (not businesses) for whom paying the debt in full would cause undue economic hardship.

It has different qualifications, and although similar, you need to submit a proposal. You need to show New York state that you can't pay them back in full, and you need to be in compliance. 

See https://www.tax.ny.gov/pdf/publications/multi/pub220.pdf

for more details and instructions.

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Let me help you solve your tax problems so you can sleep better at night. Schedule your free consultation with me at 201-479-2572 or visit www.201tax.com.  

What are the main causes of an IRS audit? 

 

First and foremost, the IRS looks for out of line factors. They can be based on industry standards, income-based standards or even based on your area. So if they think your deductions are too high for your business, are too high for your income, or if they believe that you're in a cash related business where you have a lot of cash receipts, and you're underreporting your income — these are all things that could make the IRS decide to audit common deductions. Our meals and entertainment travel, charity, or high medical expenses are the main ones, but it could be anything.

Let me help you solve your tax problems so you can sleep better at night. Schedule your free consultation with me at 201-479-2572 or visit www.201tax.com.  

Why do so many doctors and medical professionals have tax problems?

We found a number of people in the medical field are not always on salary — they are either on a contract basis or self-employed. 

First, they're not having taxes withheld from their check. 

Second, their income is variable; they get paid based on procedures and on the number of patients they receive, so that it can change every month, depending on their schedule. 

Lastly, many doctors are waiting to be paid by insurance, so they have a cash flow issue because they're seeing patients, submitting insurance claims, and then waiting to be paid out by the insurance, and sometimes that can be delayed. And while that's going on, they still have their regular expenses. These are the main issues that doctors deal with that affect them and make them fall behind on their taxes. 

Let me help you solve your tax problems so you can sleep better at night. Schedule your free consultation with me at 201-479-2572 or visit www.201tax.com.  

Are you a real estate broker? Quickly go by these few pointers and see if your tax deductions are in place. Make sure you're subtracting your advertising and marketing costs, your mileage for all your business trips, meals, and entertainment expenses. What additional supplies have you incurred, like buying new computers for your home office? And lastly, depending on how much you make, it may make sense to set yourself up as an S-corporation and save on self-employment taxes. 

Subscribe and watch my latest YouTube content: https://www.youtube.com/channel/UC2M0aPph4RArTRXqvB_R77A

Let me help you solve your tax problems so you can sleep better at night. Schedule your free consultation with me at 201-479-2572 or visit www.201tax.com.  

 

We LOVE helping our clients WIN! 

We successfully helped a small business owner in the New York City area who owed the IRS over $60,000, most of it with interest and penalties. Such a tax burden could shut down our client's business. We reduced it to $6,000, eliminating the trouble of losing his capacity to support his family. 

Our client was overjoyed, and we're delighted as well that he doesn't have this heavy burden going on over his business in the future. 

How did we do it? Watch my video Tax Resolution Success Story on YouTube. ▶️ https://youtu.be/WSa-N2_Gl3U

Let us help you solve your tax problems so you can sleep better at night. Schedule your free consultation with Jonathan Donenfeld at 201-479-2572 or visit us at www.201tax.com.  

What is an Offer In Compromise? (OIC) 

You can apply for an Offer in Compromise with the IRS to prove to them that:

(1) You're in compliance

(2) You filed all outstanding tax returns

(3) You've made estimated payments for your current liability

(4) Based on your current income, expenses and your current equity in assets, you can't pay your liability in full. THEREFORE, an OIC is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer's tax liabilities for less than the total amount owed.

You must go over with a trained professional and work through whether or not you qualify. If you apply and they see that you have assets like a house and you could take equity out and pay them back, they'll keep your down payment and application fee even if your application fails. It will cost you more money for applying and not being successful.

Learn more and schedule your free consultation with Jonathan.

https://201tax.com/

Suppose you know that you are not liable for your former spouse or current spouse's tax liability; you may qualify for the Innocent Spouse Relief. 

There are several types, but the key thing to realize is that you agree to the whole liability when you sign a joint tax return. For example, if you file a tax return and you owe $50K, but you weren't working, your spouse is working, you are signing that tax return, you're agreeing to it and saying that you're liable for that amount. 

In requesting for Innocent Spouse Relief, you have to prove that you didn't sign, didn't have education or knowledge to understand what you were signing, or it's not realistic that you could ever pay that tax back because you were not working and the income was based on your spouse. It can be a tricky situation applying for Innocent Spouse. Meet with professionals who know all of the options and know whether or not you qualify. 

Learn in this episode about Innocent Spouse Relief with Jonathan Donenfeld, CPA, MSA.