We Can’t Let You Overpay in Taxes Again

It’s your money, why leave it on the table?

We can’t let you overpay in taxes again

OverpayAs painful as the subject of taxes can be, a more painstaking realization is that many taxpayers are handing the IRS extra money each year. So, they’ll call you any minute to let you know when to expect your reimbursement. Just kidding. Kiss those funds goodbye.

Missed deductions, credits that could have been claimed, errors that results in overstated income or understated write-offs… The fact is, overpaying in taxes is more common than you think. Nearly 2 million Americans shelled out more money than necessary in years past.

Please note, if you make an error that results in underpayment, the IRS will automatically contact you. Those who overpaid aren’t so lucky.

Make sure you’re set up for success in 2018. Do a self-analysis.

Ask yourself:

  • Did you self-prepare your return through an online software?
  • Did you rely on a big box retailer staffed with inexperienced employees who could have missed something?
  • Did your tax position change from 2016 to 2017?

Yes? You are likely part of the extra $1.2 billion the IRS kept last year.

Act quickly. Taxpayers must file a claim for a credit or refund 3 years from the date they filed their return or 2 years from the date they paid the tax (whichever is later).

More importantly, if you left money on the table or think you may have, you need a professional to review the nitty gritty details. Tax forms and withholdings are just the beginning. Our team of licensed accountants and tax professionals works diligently to find every opportunity to maximize your return–often recouping 2x the cost to have the analysis done.

It’s easy. Get started here.

Published by: 0

What’s Wrong with my Tax Refund?

It’s your money, don’t give it away to Uncle Sam.

What’s wrong with my tax refund?

If you receive a tax refund, it means you have opted to receive less money each pay period.

Receiving a refund may seem like hitting the jackpot at a time when you need it most, but taxpayer beware. A tax refund is not necessarily a good thing.

When you identify your tax withholding through your employer, you tell the IRS the amount of taxes to be withheld from each paycheck. Withholding too much could result in money owed to the IRS at tax time, but selecting too little essentially leaves money on the IRS’s table. This is the money they turn around and hand you in the form of a tax refund.

What does this mean for the everyday taxpayer? Your tax refund is costing you money. If you receive a refund, it means you have opted to receive less money each pay period.

The IRS loves to keep your money. In fact, they pocketed $1.2 billion last year, because taxpayers overpaid.

“But at least I don’t owe the IRS!” True, but your handing the IRS an interest free loan and putting them in control of your finances.

Your money, your terms. Here’s how to make sure you receive your money all year long without owing in the end:

  1. Optimize your W-4. Do your homework, complete the worksheets that accompany the W-4, then reduce your withholdings. Remember to submit the forms to your employers as soon as possible, because withholding takes place year-round.
  2. Check out our video that describes how you can use your pay stub and last year’s tax return to do the calculation on your own.
  3. Visit with our team. We’ll hash out the details on your behalf—increasing your take home pay and ensuring that you don’t owe the IRS at tax time.

Published by: 0

The IRS Does Not Play Fair

Responding to IRS letters

When it comes to dealings with the Internal Revenue Service, it is more important than ever to know the rules of the game.  Many taxpayers receive a threatening letter from the IRS, and immediately call the IRS using the number provided on the letter.  Sadly, some of the mistakes made on that initial phone call can set you up for failure when attempting to resolve your tax issue.  Other taxpayers will simply ignore the letter from the IRS and hope the issue goes away.  Unfortunately neither of those responses are the right answer.

First, it’s key to take immediate action when you receive a letter from the IRS, your tax issues will not go away on their own.  What’s equally important is to recognize that those immediate actions may set you up for failure, or set you up for success.  In order to avoid the common pitfalls taxpayers make, you need to be well informed.

FACT: The IRS will use anything you say or documentation you provide against you.

Information you share with the IRS via phone, or in written correspondence can be utilized by them to assist them in their enforcement and collection efforts against you.  In fact, IRS agents will often ask for more information that needed, hoping that you overshare and they can use that information as leverage against you.  For example, a bank statement utilized to provide evidence for one item, could also contain damaging information as it relates to another tax matter.  Even worse, it can give you problems related to other governmental agencies including federally backed student loans, child support, and other legal matters.  Further, the information you provide for a given tax year, could create implications related to prior and future tax years.

Often taxpayers find themselves in very challenging situation due to over-sharing.  Having a “less is more” philosophy will serve your well, as you have no duty to disclose information beyond what is needed to resolve your tax matter.  Unfortunately, you likely do not know what information is needed, or that sharing more information can work to your detriment.  Be diligent when corresponding with the IRS to ensure you are not negatively impacting your situation by sharing too much information.

Lastly, bear in mind, the goal of the IRS is to collect a debt.  They are not on your side, and they are not there to help you.  You need someone on your side, and we have had the privilege to work with taxpayers just like you, protecting them from the IRS.  Get Started with us today to have a strong advocate working on your tax issues.

Published by: 0