Tax Attorney Cost
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Tax Attorney Cost

On average, a tax attorney costs about $300 per hour with average tax lawyer fees ranging from $200 to $400 in the US for 2023. However, hiring an experienced tax attorney that works in a large firm can cost you upwards of $1,000 per hour. 

  • Lowest Cost: $200 per hour.
  • Average Cost: $300 per hour.
  • Highest Cost: $400 per hour.

average cost of tax attorney

Average Tax Lawyer Fees

According to Cross Law Group, “Tax attorneys generally charge either an hourly rate or a flat fee for their services. Hourly Rate: The majority of tax attorneys charge by the hour. Every attorney will charge a different hourly rate, but most rates are between $200 to $400 per hour.“

Hiring a tax attorney for installment agreements with cost an average of $1,250 with average prices ranging from $750 to $1,500. Offers in Compromise cost an average of $5,000 with average fees ranging from $3,500 to $6,500. For a simple IRS audit you can expect to pay a tax lawyer anywhere from $2,000 to $3,500 while a complex audit can cost $5,000 or more. Penalty Abatement costs an average of $1,750 with average fees ranging from $1,000 to $2,500. IRS Appeals with cost anywhere from $5,000 to $7,500 and Tax Court Litigation will cost upwards of $10,000 or more. *Disclaimer – These our not the actual cost of our Tax Debt Advisory services. Contact Tax Debt Advisors to get an actual quote for the IRS help you need.

Do I Need a Tax Attorney?

Believe it or not, you actually don’t have need a tax attorney to settle IRS debt. Instead why not hire a Tax Debt Advisor who can do the same thing as a tax lawyer, and who has been helping customers dealing with tax issues since 1977. Scott Allen E.A. from Tax Debt Advisors has helped over 108,000 people settle their problems with the IRS and can help guide you through any tax situation you may be dealing with. Avoid paying the high cost of hiring a tax attorney when you don’t need one and save money by hiring a tax debt advisor today! 

Settle Debt With Tax Debt Advisors

Need help with wiping out your old tax debt? Tax Debt Advisors has helped resolve over 108,000 debts. Receive a tax debt consultation today by giving Scott a call today at 480-926-9300. Tax Debt Advisors can help negotiate an offer in compromise on your behalf to finally settle your tax debt.

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Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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Can I Retire At 60 With 500K
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Can I Retire At 60 With 500K

With discipline, budgeting and meticulous planning, retiring at age 60 with 500K saved is possible! Follow our how-to guide for early retirement below.

How To Retire At 60 With 500K

While it is certainly possible to retire with 500K, the process will require extreme discipline. It’s common belief that $1-$2 million is needed for a happy and healthy retirement. With two individuals receiving pension or social security, though, retirement with less money can still work.

Follow this simple step-by-step guide below toward retiring by 60 with 500K in the bank.

Step 1. Live On A Budget

Is it possible to keep enjoying your current lifestyle while planning and saving for the future at the same time? Yes it is, so start by putting your housing, utilities, healthcare and transportation costs on a strict budget. When coming up with a budget, the financial experts suggest reviewing all your bills from the past year.

Figure out what costs you can cut back on, then determine exactly how you’ll take the needed steps. If retiring by age 60 is your desire, you cannot wait to start budgeting until your 40s. Start budgeting today!

Step 2. Save Early And Often

Saving as much as you can right now will undoubtedly make your transition to early retirement easier. Save as much as you can afford starting at a young age. There are several different ways to save nowadays, including a Roth or Traditional IRA.

Take advantage of any other savings opportunities that may come your way, such as an unexpected work bonus. Try to put your extra money toward your retirement fund. Ask your employer if they will fully match any retirement plan amount.

Step 3. It’s All About Location

The third step of the savings process is the most difficult step. Consider the idea of moving to a location with lower housing costs, if possible. Of course, this is a very tough ask of young professionals who may be raising a family. The good news is moving could apply to your retirement instead of your working days. Retiring with 500K will mean you most likely won’t live in the most luxurious area. Location is key when it comes to a healthy retirement.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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When Can You Stop Filing Taxes
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When Can You Stop Filing Taxes?

Individuals can stop filing income taxes at age 65 if the following qualifications are met:

  • You are an unmarried senior making less than $14,250.
  • You are a married senior who is filing jointly and making less than $26,450.
  • You are a qualifying widow earning less than $26,450.

The IRS wants everyone to file a tax return when their gross income surpasses the total of the standard deduction for their filing status, in addition to one exemption amount. These specific filing rules still apply to senior citizens currently living on their Social Security. However, seniors do not consider their Social Security income as gross income. You do not need to file a tax return if Social Security is your only source of income.

When Must Seniors File Taxes?

For the tax year 2021, seniors must file taxes if unmarried, at least 65 years old and gross income was $14,250 or more. If you live on your Social Security benefits, however, you do not include this in your gross income. If these benefits are the sole income you receive, then your gross income amounts to zero, meaning you will not have to file a federal income tax return. If you do earn additional income that is not exempt from being taxed, you must determine whether or not that total exceeds $14,250.

In previous tax years, these amounts were based on the year’s standard deduction, in addition to the exemption amount for both your age and filing status. For tax years after 2018, only the standard deduction is applied. This is because exemptions are no longer used in calculating your taxable income.

You must file a return if your gross income is $27,800 or more if you and your spouse are at least 65 years old and filing jointly. If your spouse is under age 65, the threshold amount goes down to $26,450. Be aware that these income thresholds apply to the 2018 tax year and they typically increase each year.

When To Include Social Security In Your Gross Income

There are a few circumstances that call for seniors to add Social Security benefits to their gross income. If you are married and filing an individual tax return while residing with your spouse during the year, 85% of your benefits are considered gross income. This may require you filing a tax return as a result.

Tax Credits For Seniors

There are several ways to decrease the amount of tax you will pay on your taxable income, even if you have to file a tax return. As long as you are at least 65 years old and have income from a source(s) other than Social Security that is not too large, then tax credits for seniors, the elderly and disabled, can lower your tax bill using a dollar-for-dollar arrangement. This tax credit, though, only comes in handy when you owe tax to the IRS.

What Age Do You Stop Paying Taxes On Social Security?

You are eligible to stop paying taxes on Social Security when you are age 65 and your income is not too high.

TurboTax says, “As long as you are at least 65 years old and your income from sources other than Social Security is not high, then the tax credit for the elderly or disabled can reduce your tax bill on a dollar-for-dollar basis. However, this tax credit is only useful when you actually owe tax to the IRS.”

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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Real Estate Taxes vs. Property Taxes
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Real Estate Taxes vs. Property Taxes

If you’re a homeowner, you probably know what real estate taxes are. You might even refer to them as property taxes since the terminology has become interchangeable. A lot of people may not realize the two taxes are different.

Though you may whine when getting your “property tax” statement letting you know the amount of tax you are going to have to pay annually or the amount your mortgage company is going to shell out for your real estate taxes. When you have a mortgage, it’s typically part of your payment. The misperception comes from the word “property”, due to the fact that there is additionally a personal property tax.

The Way Real Estate Taxes Work

Real estate taxes are yearly taxes homeowners are required to pay on the evaluated value of their house. Each city and state metro area establishes how much the real estate tax rate is by multiplying the fair market price of a home by the prearranged percentage in that metro area to come to the tax assessment valuation. When hearing people complain about the high cost of real estate taxes in their around their home. This is what they’re complaining about, and higher tax rates are typically found in larger cities such as Phoenix or Houston.

The amount of real estate tax you are going to pay is subject to how much your home is valued in addition to the part of the country your house is located in. For instance, a rural city in Arkansas probably has a lower real estate tax rate than popular big cities on say, a costal city or in a major metro area such as San Diego or Denver.

What Are Personal Property Taxes?

Property tax is different name for personal property tax. Your personal property is in reference to items that are not enduring, or items that you can move. For instance, your vehicle is personal property and when it gets registered each year, you’re basically paying a property tax on it.

Things such as boats, jet skis, campers, RVs, side by sides, farm equipment, and business equipment such as desks or equipment are taxed under personal property. Because they can all be moved, the personal property tax is estimated on their value, likewise to the way your house’s tax value is estimated.

The amount you are going to pay for your personal property tax on these articles also is subject to your metro area and city, and the average personal property tax rate in addition to how much estimated value each personal article is worth.

Why Real Estate and Personal Property Are Different Taxes

First, the tax rate that you are going to pay is different. It is enough to say that real estate taxes are a lot higher than personal property taxes. For instance, you can usually register a vehicle annually for a fee of $45 to $80, with a value of $25,000 to $65,000. Your home is assessed at a lot higher value with a lot higher tax rate. Even the most affordable real estate taxes in the US for a commonly valued home would probably be several hundred dollars.

Second, you might be able to deduct real estate taxes on the home as costs on your federal tax return when you reside in the home and itemize deductions on Schedule A. A personal property tax may also be deducted when you itemize, however the deductions are going to be a lot less on a jest ski or motorhome than they would on your house and go in a different place on the federal return. This isn’t only since your personal property usually has less value than a home but also since it’s taxed at a lower rate than the real estate tax.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Property Taxes, Real estate Taxes, Tax Questions
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What is a Tax Lien?
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What is a Tax Lien?

Federal tax liens are the government’s legal claim toward your property if you disregard or fail to pay your tax debt. The lien safeguards the government’s involvement in all of your property, comprising of real estate, private property and financial assets. Federal tax liens exist following:

The IRS:

  • Posts your overdue balance on the books (evaluates your liability);
  • Mails you a notice explaining the amount you owe (22 CFR § 34.8); and

You:

  • Disregard or decline to entirely pay the debt in time.

The IRS files public paperwork, known as Notice of Federal Tax Lien, to give notice to creditors that they legally have rights to your property.

How to Be Free of Your Tax Lien

Paying your tax debt – entirely – is the ideal way to be free of your federal tax lien. The IRS discharges your lien within 30 days following you having paid the tax debt owed by you.

When circumstances are in the best interests of both you and the government, other options for decreasing the effect of a lien exist.

Discharge of property

A “discharge” withdraws the lien from particular property. There are numerous Internal Revenue Code (IRC) requirements that establishes eligibility.

Subordination

“Subordination” doesn’t eliminate the lien but enables other creditors to move in advance of the IRS, in which could make it easier to obtain a loan or mortgage.

Withdrawal

A “withdrawal” eliminates the public Notice of Federal Tax Lien and asserts that the IRS is not in competition with additional creditors for your assets; nevertheless, you are still responsible for the amount owed.

2 added Withdrawal alternatives were the consequence of the Commissioner’s 2011 Fresh Start initiative.

One option may permit withdrawal of the Notice of Federal Tax Lien following the lien’s discharge. Common eligibility comprises of:

Your tax liability has been fulfilled and your lien has been discharged; and also:

  • You are in accordance with the prior 3 years in filing – every individual return, business return, and informational return;
  • You are up to date on your approximated tax payments and federal tax deposits, as relevant.

The other alternative may permit withdrawal of your Notice of Federal Tax Lien if you have entered in or modified your regular installment contract to a Direct Debit installment contract. Common eligibility comprises when:

  • You are a qualifying taxpayer (such as individuals, businesses having income tax obligation only, and out of organizations with any kind of tax debt)
  • You owe twenty-five thousand dollars or less (When you owe more than twenty-five thousand dollars, you could decrease the balance to twenty-five thousand dollars before petitioning withdrawal of the Notice of Federal Tax Lien)
  • Your Direct Debit Installment Contract is required to fully pay the amount owed by you inside of sixty months or prior to the Collection Statute expiring, whichever comes first
  • You are fully compliant with other filing and payment obligations
  • You’ve carried out three direct debit payments in a row
  • You cannot have defaulted on your present, or any prior, Direct Debit Installment contract.

How a Lien Impacts You

  • Assets — A lien is attached to each of your assets (like property, stocks, vehicles) and to future assets obtained throughout the length of the lien.
  • Credit — After the IRS has filed a Notice of Federal Tax Lien, it could limit your capacity to obtain credit.
  • Business — The lien is attached to all business property and to every right to business property, including assets.
  • Bankruptcy — When you are filing for bankruptcy, the tax debt owed, lien, and Notice of Federal Tax Lien could continue following the bankruptcy.

Avoid a Lien

You can avoid federal tax liens simply by filing and paying each of your taxes in full and when they are due. If you aren’t able file or pay when they are due, don’t disregard the letters or communication you receive from the IRS. If you are unable pay the full amount owed, payment options are available to assist you in settling your tax debt in due time.

Lien vs. Levy

Liens are not levies. A lien attains the government’s involvement in your property when you fail to pay your tax debt. A levy is going to take the property to pay the tax debt. If you fail to pay or make arrangements for settling your tax debt, the IRS could levy, seize and sell any kind of tangible or personal property that you are owner of or have an interest in.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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Can The IRS Take Your 401K
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How Many Years Does The IRS Go Back To Collect On Unfiled Tax Returns?

The IRS will require any taxpayer to go back and file your last six years of tax returns. Taxpayers are encouraged by the IRS to file all missing tax returns if possible, though.

All payments can be arranged via the IRS, with several programs like installment agreements and offer in compromise settlements, among others. 

How To File Back Tax Returns

Here are five simple steps to follow when filing back tax returns:

Set Up Payment Agreement With IRS

If you cannot afford to pay back your tax returns immediately, you are allowed to set up payment agreements with the IRS. There are numerous payment options available, depending on your financial needs. If you don’t set up a plan and avoid paying the IRS altogether, the IRS can and likely will put their collections department on the case. 

Only Go Back Six Years

Before starting this process, call the IRS or a trusted tax professional. Confirm with them that you only have to go back as far as the past six years for unfiled taxes. 

Help With Transcripts

It is crucial to match the IRS’ exact records when preparing a return. Trace your income history by first requesting wage and income transcripts from the IRS. The IRS can question the accuracy of your return without this information being obtained. 

Request Penalty Abatement

It is true that the IRS can be lenient in these situations. You can request that the IRS not charge you for failure to pay or face the burden of other financial penalties. You can file a first-abatement for the first year if you qualify. Another option would be to file a reasonable cause agreement for some late filing relief. Always be aware of any penalties you may be facing ahead of time. 

IRS May Have Already Filed A Return For You

It is possible for the IRS to start a process referred to as a substitute for a return up to three years after the due date of return. Whenever you file a return to replace the substitute of return, the IRS will check the replacement return by comparing it to statements already on file. In some cases, this process can take as long as four months for the IRS to complete.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation. This family owned tax practice has been serving the public since all the way back in 1977!

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2024 arizona tax brackets
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What Are Tax Audits?

A tax audit is when the IRS chooses to look into your tax return a little more comprehensive and verify that your income and deductions are true. Usually, your tax return is selected for audit when something you entered on your return is not common. There are 3 main kinds of IRS audits: a mail audit, an office audit and a field audit.

Mail Audits

No matter what kind of audit the IRS chooses to carry out, you will get notification of it through mail. A mail audit is the most straightforward kind of IRS review and doesn’t require you to meet with an auditor personally.

Usually, the IRS petitions for additional documentation to prove different items you reported on your return. For instance, if you claim $5,000 in philanthropic deductions, the IRS might send you a letter calling for evidence of your donations. Typically, submitting adequate evidence will complete the audit in your favor if the IRS is content.

Office Audits

An office audit is a face-to-face audit carried in a local IRS office. This type of audit is usually more detailed than a mail audit and typically comprise of questioning by an audit officer about details on your return. You will be requested to bring particular information to an office audit, like the books and records for your company or your personal financial institutional statements and receipts. You additionally have the right to bring a CPA or attorney to represent you during the audit.

Field Audits

A field audit is the most comprehensive kind of review that the IRS carries out. In such a situation, an IRS agent will carry out the audit at your home or business. Usually, field audits are done when the IRS is double checking more than one deduction. A field audit is typically very detailed and will cover a lot, if not all, issues on the return.

Potential Results of an Audit

There are three potential results of an IRS audit. When the IRS is content with your explanations and the documents you submitted, then they won’t change anything on your return. If the IRS suggest changes to your tax return, you could either agree and approve the changes or question the agent’s evaluation. If you are in agreement, you will sign an review report or other document offered by the IRS and establish some kind of payment agreement. When you are in disagreement with their findings, you can schedule a meeting with an IRS supervisor to further examine your case or you can petition for a formal appeals meeting.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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What is an Enrolled Agent?
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What is an Enrolled Agent?

“Enrolled” stands for being licensed to practice by the federal government, and “agent” is authorized to appear on the behalf of the taxpayer at the IRS. Just enrolled agents, lawyers, and CPA’s have limitless rights to represent taxpayers in front of the IRS. The enrolled agent business goes back to 1884 when, following debatable claims that had been submitted for Civil War losses, Congress was put into action to govern individuals who represented citizens in their proceedings with the U.S. Treasury Department.

How does someone become an enrolled agent?

The license is acquired in one of 2 ways, by passing an extensive examination that covers all facets of the tax code, or after working for the IRS for 5 years in a role that routinely explained and applied the tax code and its guidelines. All applicants are subjected to a painstaking background check carried out by the IRS.

How can an enrolled agent assist me?

Enrolled agents counsel, represent, and prepare tax returns for persons, organizations, firms, estates, trusts, and any others that are required to report taxes. Enrolled agents’ proficiency in the frequently shifting field of taxation allows them to successfully represent taxpayers at all managerial degrees inside the IRS.

Enrolled Agents and Privilege

The 1998 IRS Restructuring and Reform Act allows federally sanctioned professionals (individuals pledged by the Department of Treasury’s Circular 230 guidelines) a restricted client privilege. This privilege enables confidentiality among the taxpayer and the EA under certain terms. The privilege is applied to situations whereupon the taxpayer is being represented in cases that involve audits and collection issues. It is not relevant to the preparation and filing of tax returns. This privilege does not apply to state tax matters, even though a few states have accountant-client privileges.

Is it a requirement for enrolled agents to take ongoing education?

Along with the rigorous examinations and application process, the IRS necessitates enrolled agents to finish 72 hours of ongoing education, reported to them every 3 years, to retain their enrolled agent standing. Members of the NAEA are held at high standards, they are bound to finish 30 hours each year (equaling 90 hours per 3-year period). Since the expertise required to be made an enrolled agent and the necessities to maintain the license, there is just around 46,000 practicing enrolled agents.

What is the distinction between an enrolled agent and other tax professionals?

Enrolled agents only are required to prove to the IRS their proficiency in every area of taxation, representation, and morals prior to them getting limitless representation rights before IRS. Different from lawyers and CPAs, that are state licensed and that might or might not decide to specialize in taxes, every enrolled agent specializes in taxation.

Are enrolled agents duty-bound by any moral standards?

Enrolled agents have a requirement to agree to the conditions of the Treasury Department Circular 230, that provides the guidelines managing the practice of enrolled agents before the IRS. Members of the NAEA are also obligated by a Model Rules of Professional Conduct.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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Stimulus Checks In 2022
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Answers To 10 Tax Questions

Are you able file your taxes or comprehend what you owe Uncle Sam? There is a strong chance you’re confused about tax regulations. On the bright side, we’ve compiled a list of answers to 5 common tax questions you may be asking — including if you should hire a tax preparer, if you should file if you’re a college student, when you’ll receive your tax refund and more.

  1. Should I hire a tax preparer?

If you choose to hire a tax professional is subject to your comfort level with the tax-filing procedure and the convolution of your return. If you’re seeking a tax preparer with a greater degree of experience, consider a CPA or E.A. Both professionals are required pass specific exams to get licensed.

  1. What is the standard deduction?

The standard deduction is an allocated amount of money of which you aren’t taxed. The total of the standard deduction that you claim is subject on your tax status and the year that you’re filing. Taxes filed in 2019, the standard deduction $12,000 for filing single and $24,000 for married couples filing together.

  1. When will my tax refund get to me?

When your tax refund will get to you is subject on how and when you filed. According to the IRS 90% of federal tax refunds are distributed within twenty-one days, and details are usually available within a day from when the IRS receives an e-filed tax return or 4 weeks following them receiving a traditional paper return. Utilize the IRS Where’s My Refund? device and the IRS2Go app to track it.

  1. Should I file taxes if I’m enrolled in college?

Prior to you filing taxes as a student going to college, think about your income and if your parents will claim you as a dependent on their taxes. Students that earn less than $12,000 don’t need to file a tax return but might still gain from filing if taxes were withheld from their paycheck or want to claim specific tax benefits like the American opportunity tax credit.

  1. How can I get the largest tax refund this year?

To receive the largest tax refund this year, begin to think about your tax circumstances early, preferably prior to the tax year ending. Next, consider how to make the most out of deductions through itemizing if you’re able to, declare tax credits and deductions in which you qualify for and give to your retirement accounts. When your tax situation is convoluted, think about working with an experience tax preparer.

  1. How do I select the preferable tax-filing software?

When evaluating the preferable tax-filing software for your circumstance, think about the costs and services offered. A great place to begin is with the dozen software businesses that work alongside the IRS-affiliated Free File Alliance. They are IRS approved and satisfy specific security and privacy conditions.

  1. Who is established as a dependent on my taxes?

Dependents may include qualifying children, family members and other people that you support. Dependents need to satisfy certain age, income and housing conditions.

  1. How can I evade IRS tax scams?

Evade typical IRS tax scams by handling suspicious or out of left field communications from alleged IRS officials with a healthy suspicion. The IRS will usually reach out by regular mail first, so be cautious of e-mails, any texts or phone calls insisting to be from the IRS. Additionally, be vigilant for poor grammar, threats of calling the police and demands for payments through gift cards or wire transfers.

  1. Should I choose direct deposit?

Yes, when you want to get your tax refund as fast as possible, choosing direct deposit can be faster than, for instance, petitioning a check to be mailed out.

  1. Can I decrease my chances of getting audited?

To decrease the chance of a tax audit, make sure there are no errors, disclose all of your income, retain correct records and stay away from illegal or inappropriate tax moves like exaggerating charitable donations.

Whereas these answers to common tax questions may help you begin in fulfilling your tax responsibilities, you might still have questions as you start to file your return. If you see any questions you do not see on this list, contact us and we will be more than happy to answer them.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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Filing Back Taxes in 2022
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How To File Back Taxes

If you need to file back taxes, this post can help. These are only common guidelines, for thorough guidelines you should consult the IRS website, an IRS agent, or an enrolled agent, such as Tax Debt Advisors, Inc.

How to File Back Tax Returns

Step 1: Gather your tax papers

To file your back-tax returns, you going to need the W-2’s or 1099 forms you got for those tax years for reporting your income. If you’re qualified for deductions and credits, you are also required to gather any receipts or other supportive records that demonstrate your qualifications to claim them.

Step 2: Petition for missing papers

If you’re lacking any tax papers from the last decade, you can petition a copy from the IRS by filing Form 4506-T.

  • Only use this form to petition for W-2s, 1099’s and possibly 1098’s that could provide support for many of your deductions.
  • Although you won’t receive an identical version of the original form, the IRS will give you with a duplicate of all related information, in which is satisfactory to file back tax returns.
  • It may take the IRS up to forty-five days to process your petition.

Step 3: Download previous year IRS tax forms

You need to always file your back-tax returns on the primary forms for the tax years you’re filing for. You could always search the IRS website to find the forms, but for faster access, you should utilize advanced tax preparing software, like TurboTax.

Step 4: Prep your back-tax returns

You can’t complete previous year tax forms using guidelines from the current year.

  • Tax laws change each year and using the incorrect guidelines could require you to prepare the return once again.
  • Verify to be sure the guidelines you are using are for the identical tax year as the return you are getting ready to file.

Step 5: Submit the forms

Submit your forms to the IRS at the address on the Form 1040’s guidelines.

  • When you owe added income tax for any of the previous years, be sure to make as large of a payment as possible to decrease any interest charges.
  • Different from tax penalties that stop adding when the limit is reached, monthly interest still gets added until until the tax is paid off.
  • After the IRS gets the tax returns, you should expect to get a notice of the clear-cut penalty and interest charges you will be responsible for paying.

Source

  1. TurboTax – Taxes, I. (n.d.). How Do I File Back Tax Returns? Retrieved October 16, 2020, from https://turbotax.intuit.com/tax-tips/irs-tax-return/how-do-i-file-back-tax-returns/L535BxMms

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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