Tips on how to avoid getting behind with the IRS or State agencies.

Getting behind with the IRS or State is not a fun experience. All day long I talk to people that are being hounded by the IRS or the State for collections on unpaid taxes. Here are a few simple tips to help you avoid the headache that comes with being in collections for unpaid taxes.

Tips:

1. Always file your returns on time even if you cannot pay right away. This saves you a 25% failure to file penalty
2. If you are a W-2 employee make sure you are withholding properly. 
• The closer you get to zero withholding the more you will pay in taxes. This will save you from owing.
• If you are claiming 4 or more you may end up owing taxes at the end of the year.
3. If you get paid via cash or 1099 as a sub contractor make sure you report all income and do Estimated Tax Payments each quarter. A good rule of thumb is to take at least 25% of what you earn and pay it to the IRS. If you overpay you will get a refund. 
4. Read your tax return before you sign them. You are responsible for what you sign. 
5. Hire a good CPA or Tax Attorney to do you taxes every year. At Oxford Tax we have a service for $50 a month that provides our clients with tax prep, identity theft protection, and audit protection. Very valuable service. 

Share this article if you find it useful and thank you in advance for learning and reading. 

Visit www.wesolvetaxissues.com if you would like a free consultation. 

Cheers, 

Noah Burford

Senior Tax Adviser

949.220.0948

noah@oxfordtaxpartners.com

Click here for a free consultation

Do not ignore the IRS. They are the largest collection agency in the world.

Do not ignore the IRS, sounds simple right? But most of my clients reach out to us after years of hoping their tax issues will magically disappear. I recently had a client tell me, well won't it simply fall off  after 10 years? Let' s discuss why you cannot ignore the IRS. Here are 3 reasons:

1. They will not stop until they get your attention and make you pay. You can ignore the IRS but eventually they will make sure you deal with them. Have you ever known a collection agency to give up before they get paid? They get your attention many ways:
1. Notice letters.
2. Levy your bank account.
3. Garnish your wages.
4. Contact your account receivables if you have a small business.
5. Show up at your house. 
2. Ignoring the IRS will only make your situation worse. I cannot tell you how many clients I have the have ignored their tax issue and a small balance has grown exponentially large due to penalties and interest. 
3. There is tax help available and it is worth it to have a tax resolution specialist take a look at your issue. You do not have to ignore the IRS out of fear. Tax help is available and there are a myriad of different programs that can not only eliminate tax debt but make it so you can afford a resolution. 

Ignoring the IRS or trying to deal with them alone is never a good option. Make a wise choice and reach out to Oxford Tax Partners and get some tax help. Click here and request a free evaluation or you can call directly at 714.926.4261.

Cheers, 

Noah Burford 

noah@oxfordtaxpartners.com

Get Tax Help 714.926.4261

www.wesolvetaxissues.com

How can I get my back taxes taken care of? Part 3: Installment Agreements

Tax help and how can I get my back taxes taken care of, are 2 frequently asked questions online for tax payers. We have already touched on the OIC: Offer In Compromise and CNC: Currently Non Collectible. Today I am going to focus on Installment Agreements. There are a number of different installment agreements. This blog is about the standard installment agreement.

If you do not qualify for tax help in the form of OIC or CNC, then some form of installment agreement will be formalized with the IRS or the state. We help people with formalizing these agreements.

I get this question a lot:

Why would I pay your company to put me into a payment plan with the IRS, I can do that myself right? The short answer is yes. You can always choose to deal with the IRS on your own. However, if you owe more than $10,000 your outcome will not be on your terms or the best terms you can negotiate. Also and I believe this goes without saying; dealing with the IRS or State is stressful and time consuming. Time is money. Plain and simple.

At Oxford Tax Partners we make sure if you are retaining us for tax help; the fees you pay us are worth every penny and a wise investment. By paying us we will save you money.  Here is a hypothetical example:

1. Hypothetically, you owe the IRS $25,000 and do not qualify for any hardship programs. You call the IRS and based on your disposable income you are put into a payment of $500 a month. By hiring Oxford Tax Partners, if we were able to negotiate a payment of $200 a month, that is an annual savings of $3600. If your term is for 5 years that represents a savings of $18,000 of real money in your pocket. All of this is taking place while the statute of limitations is progressing closer to the day your remaining tax debt will fall of your record. We are very good at using the system to our clients advantage. 

The bottom line is that in most cases it is never a good idea to deal with the IRS alone. You do not get the best possible outcome and the IRS will extract as much money as they can from you because they are the largest collection company in the free world. 

Cheers, 

Noah Burford

noah@oxfordtaxpartners.com

714.926.4261 direct line

Click Here for your free evaluation. 

How can I get my back taxes taken care of? Part 2 CNC

Tax help for getting back taxes taken care of is available in many different programs when using a Tax Attorney.  Today I want to focus on a program made available to Oxford Tax Partner clients via the IRS. It is called CNC which stands for Currently Non Collectible. If you need tax help this program is a good one.

The IRS bases their decisions for CNC on your current income situation. Not your past or your future, but what is happening today when it comes to your income. If your take home pay is less than the IRS standard of living of $4500 per month, you may be considered a financial hardship and qualify for this program.

Here is some valuable information on how this particular program works:

1.  If you meet the financial hardship requirements your payment on your past IRS debt will be $0. That is not a misprint, your will have a $0 payment every month. However, there are some rules.
2.  Moving forward you must remain current and compliant with your taxes. This means: 

• You must file on time. Compliant.
• You must pay if your owe. Current
• They will apply any refund you get towards your balance. You are not settling your debt, but rather not paying on it monthly. 
• If your take home household income increases significantly over the national standard of living for 2 years in a row. The IRS my require you to go into an installment agreement with a payment.

If you need tax help CLICK HERE and request a free evaluation. 

Cheers, 

Noah Burford

noah@oxfordtaxpartners.com

714.926.4261 

How Can I get my back taxes taken care of?

This is a common question. How can I get my back taxes taken care of? The most obvious answer is pay them in full, but if you could do that then you probably would not be wondering how you can take care of back taxes. There are a number of different programs that the IRS offers that you will never know about if you try to handle on your own. I will be writing a series of blogs going over the various options if you owe back taxes.

The famous OIC. This stands for Offer In Compromise. This is one of the best programs the IRS has to offer and we have clients that we settled hundreds of thousands of dollars for a few thousand dollars. Literally pennies on the dollar. At Oxford Tax Partners we take this program seriously. If we say we can get it for you than we will but we only offer it to clients that we know we can get into OIC. There are many companies that use this tool to take your money in hope of getting it done, but never have the intention or the ability to do it correctly. It is an expensive process but worth every penny and not a process anyone should try and do on their own.

Here are 3 key factors that determine if you qualify for an OIC:

• 1. Age- if you are young with earning years ahead of you forget the OIC. 
• 2. Assets- If you have assets, houses, 401k money or any other assets of value, then you will not qualify. Your asset situation needs to look bleak in order to meet OIC criteria.
• 3. Income and ability to repay- Typically an OIC client is someone that made a lot of money in the past. Owes way more than they could ever pay at their current income levels. There are many facets to calculating income to qualify for this program including dependents and bills. 

The next blog will focus on a different program offered by the IRS and different states. I hope this helps.

Visit www.wesolvetaxissues.com if you want a free evaluation of your tax situation.

Cheers,

Noah S Burford
noah@oxfordtaxpartners.com
714-926-4261

Visit www.wesolvetaxissues.com if you want a free evaluation of your tax situation.

3 Common mistakes Tax Payers make that get them in trouble with the IRS.

We all know the saying: "Death and Taxes" Every day I deal with people that are in the unfortunate situation of having the IRS or State breathing down their neck looking for missing tax returns, unpaid taxes and requiring amended returns. Make no mistake about it having the IRS invade your life is stressful and scary. Here are 3 things you can do to avoid the headaches of having IRS issues:

1. Do not ignore the IRS or the State. This is the biggest mistake you can make. I know it is overwhelming but choosing to ignore the IRS is never a good idea. They will not stop until they get what they want.
2. At least file your tax returns even if you do not think you can pay what you owe. Shockingly, most people do not realize their is a failure to file penalty of 25% and the failure to pay penalty is 10%. So if you choose to ignore your situation and not file or pay, you are being penalized 35% on your balance plus interest. This is how your tax liability literally balloons into an insurmountable amount.
3. Review what you sign. I cannot tell you how many people start their conversation with me with the following statement: "Well, my CPA...." Your CPA or accountant is not responsible for errors on your tax return. If you sign it, you own it. Most of our clients are messes that we have to clean up due to tax professionals.

Finally, reach out and get help. We offer a full free tax evaluation. Click here to get your free evaluation and have a tax attorney review your case history with the IRS. We can help. If you have tax problems do not deal with the IRS alone.

Cheers,

Noah Burford Senior Tax Advisor
Oxford Tax Partners
Direct: 949.220.0948
www.wesolvetaxissues.com