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Tax Refund in 2024 – What to know about Tax Filing and Refunds for Tax Season 2024

Tax season 2024 is here, and it brings a blend of excitement and unease for numerous taxpayers. While taxes may not be exciting for all, there is one element of tax season that nearly everyone looks forward to the possibility of getting a tax refund. In 2024, navigating the complex realm of tax laws and regulations can be overwhelming, but by implementing effective strategies, you can maximize your refund and boost the amount of money you receive.

To optimize your tax refund, it is crucial to maintain a high level of documentation throughout the year. It is always advisable to meticulously document all sources of income, expenses, and financial activities associated with your taxes. This entails retaining receipts for deductible expenditures like charitable contributions, medical bills, and business-related costs. By consistently keeping accurate records, you will have all the essential paperwork readily accessible for tax season 2024. This will simplify the process of claiming deductions and credits that have the potential to enhance your refund amount.

 

Tax Deductions and Credits

Maximizing deductions and credits can significantly lower your taxable income and boost your tax refund. It is crucial to make the most of these valuable tools in tax season 2024 by exploring all the deductions and credits that you are eligible for. Some commonly claimed deductions include expenses related to education, medical costs, and mortgage interest, among others. Follow the below key strategies to reduce taxable income.

  1. Homeowners who choose to itemize their deductions have the opportunity to benefit from the mortgage interest deduction. This tax provision allows individuals who own a home to deduct the interest they pay on their mortgage from their taxable income. By taking advantage of this deduction, homeowners can potentially reduce their overall tax liability and enjoy the financial advantages of owning a property. It serves as an incentive for individuals to invest in homeownership and provides a valuable tax benefit for those who qualify. Find whether you are eligible for mortgage interest deduction here.
  2. Taxpayers who choose to itemize their deductions have the opportunity to deduct the amount they paid in state and local income taxes, foreign income taxes along with any property taxes they have paid. This deduction, known as the State and Local Taxes (SALT) deduction, allows individuals to reduce their taxable income by the total amount they have paid in these taxes throughout the year. By taking advantage of this deduction, taxpayers can potentially lower their overall tax liability and keep more of their hard-earned money. As an individual, your deduction of state and local income, general sales, and property taxes is limited to a combined total deduction of $10,000 for the tax season 2024. You can check your eligibility for foreign income tax deductions here.
  3. Certain educational expenses, including tuition fees and interest on student loans, are eligible for deductions and credits. These deductions and credits provide individuals with the opportunity to reduce their taxable income and potentially lower their overall tax liability. By taking advantage of these benefits, individuals can alleviate some of the financial burden associated with pursuing higher education and make it more affordable for themselves or their dependents. It is important to consult with a tax professional or refer to the relevant tax laws and regulations to ensure eligibility and maximize the available deductions and credits for educational expenses.
  4. By making contributions to a retirement account, such as a 401(k) or IRA, you have the opportunity to reduce your taxable income and potentially receive a larger refund. This means that the money you contribute towards your retirement savings can positively impact your overall financial situation. By taking advantage of these retirement contribution options, you not only secure your future but also enjoy the immediate benefit of reducing your tax liability for the 2024 tax season and potentially receiving a higher refund.
  5. Tax-efficient investment strategies can play a crucial role in optimizing your tax refund. One effective approach is to consider contributing to a Health Savings Account (HSA) or Flexible Spending Account (FSA), which enables you to allocate pre-tax funds specifically for medical expenses. By doing so, you not only lower your taxable income but also have the potential to boost your refund. Another avenue to explore is investing in tax-exempt municipal bonds, which offer income that is exempt from federal taxes. This can significantly enhance your overall tax efficiency and contribute to a more favorable refund outcome.

 

Seek Out for Tax Professionals

Navigating the complexities of the tax code can be challenging, and failing to take advantage of deductions or credits could result in a smaller refund. It is advisable to consider the help of a qualified tax professional who can ensure compliance with tax laws while maximizing your refund. Although there may be associated costs, the potential for increased savings and peace of mind may outweigh the expense. In summary, to maximize your tax refund, it is important to plan, stay organized, utilize available deductions and credits, contribute to retirement accounts, and seek professional assistance when necessary. By employing these strategies, taxpayers can make the most of tax season 2024 and keep more money in their pockets, bringing them closer to achieving their financial goals.

 

IRS Audit Group

IRS Audit Group consists of tax professionals, CPAs, enrolled agents, and tax attorneys.  We are located in Los Angeles; California and our primary area of expertise is IRS Tax Audit Representation.  However, our certified professionals cooperate and work with all IRS offices nationwide.  Please contact us for more information.  https://irsauditgroup.com/contact/

Toll Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Benefits of Early Tax Preparation

Benefits of Early Tax Preparation: Why we Need to Start Immediately Soon Tax Season 2024 Begins?

There are several advantages to filing your tax return without any delay for the 2024 Tax Season.  Firstly, it allows you to receive your refund sooner and reduces risks associated with your tax identity.  Additionally, starting your tax preparation early gives you ample time to gather all required documents and information for claiming deductions, avoiding a last-minute rush.  If you use a paid preparer, they may have more flexibility and potentially offer lower fees or hourly rates during non-peak periods.  While the official deadline is April 18, 2023, the IRS typically begins accepting tax returns as early as mid-January.

Here are a few key benefits for tax preparers when they file their returns early for the 2024 Tax Season.

 

Avoid Late Filing Troubles

Tax return filing requires careful attention to detail, as each field on the form must be accurately completed.  It is important to take the time to provide the correct information, as rushing to file at the last minute can result in mistakes and inaccuracies.  If errors are made, it will be necessary to correct them and submit revised returns at a later date.

 

Early e-verification and Faster Refund Process

Filing your income tax return early ensures that it is verified and ready for refund processing sooner.  The refunds are processed on a first-come, first-serve basis, so those who file their returns before the due date will receive their applicable tax refund sooner.  However, if you file your returns late, the refunds will be delayed.

 

Avoid Penalties!

If you fail to file your tax return on time, you will be subject to a penalty of 5% of the unpaid taxes for each month or part of a month that the return is late.  However, this penalty will not exceed 25% of the unpaid taxes.  However, missing tax payments can have severe repercussions that indirectly affect your credit score.

 

Easy Loan approval and Visa Processing

Banks and financial institutions require customers to submit their income tax returns from the past three years in order to process various loan applications, including home loans and vehicle loans.  Credit card companies also prioritize submitting tax returns before issuing a card.  Filing income tax returns before the deadline demonstrates your reliability as a borrower and facilitates a smooth loan approval process.  Additionally, income tax returns are mandatory for Visa processing, serving as evidence of your financial stability and credibility.

 

Carry forward Losses!

Business Owners can benefit from early filings in tax season 2024 as they can carry forward any losses incurred to subsequent years and utilize them to offset the income earned in those years.

 

Keep away from Last-Minute Traffic!

The income tax filing website often encounters a significant surge in traffic as the deadline approaches, resulting in a temporary malfunction of the site.  This can potentially cause delays in filing your returns.  To avoid any last-minute technical glitches and non-compliance problems, it is advisable to submit your tax returns well in advance of the deadline.  Doing so can ensure a smoother and timely filing process without any unnecessary stress or complications.

 

IRS Audit Group

IRS Audit Group consists of tax professionals, CPAs, enrolled agents, and tax attorneys.  We are located in Los Angeles; California and our primary area of expertise is IRS Tax Audit Representation.  However, our certified professionals cooperate and work with all IRS offices across the country.  Please contact us for more information.  https://irsauditgroup.com/contact/

Toll Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Tax Season 2024 Introduction

Introduction To the New Beginning of IRS Tax Season 2024 – Tax Filing Season Opens on Jan 29, 2024

The Internal Revenue Service (IRS) has recently announced that the tax filing season for the year 2024 is set to kick off on January 29, 2024.  This date signifies the official commencement of the IRS’s acceptance and processing of individual tax returns.  The tax season holds immense importance for both individuals and businesses, as it necessitates taxpayers to meticulously review and reconcile their income, deductions, and credits from the previous year.  Through this meticulous process, taxpayers ultimately ascertain their tax liability or determine their eligibility for a tax refund and more.

 

Understanding tax deadlines and refund timelines is crucial for effective personal financial planning since tax refunds can cover some of their expenses or pay off debts.  The IRS consistently promotes the use of electronic filing, as it offers a quicker and more streamlined process for both the taxpayer and the IRS in terms of processing tax returns.  By staying informed about tax deadlines and utilizing electronic filing methods, individuals can optimize their financial planning and ensure a smoother tax refund experience.

 

The IRS is anticipating that more than 128.7 million individual tax returns will be filed by the April 15, 2024 tax deadline.  While the official acceptance and processing of tax returns will begin on January 29, individuals using software or tax professionals can start working on their taxes before that date.  Software typically accepts electronic submissions and holds them until the IRS is ready to process them.  Additionally, the IRS Free File will be available on IRS.gov starting January 12, and the IRS Direct File pilot will be rolled out in phases, with wide availability expected in mid-March for eligible taxpayers in participating states.  The IRS is improving services to taxpayers, building on the success of the previous tax season and ongoing transformation efforts.  IRS officials emphasized that the agency is dedicated to using new funding to make the process of preparing and filing taxes easier for taxpayers.

 

Improvements to Tax Filing Services

The IRS has announced the launch of its latest version of the IRS Free File Guided Tax Software service, which is now available online for taxpayers to prepare for the upcoming 2024 tax filing season.  This online tool, now in its 22nd tax season, allows taxpayers across the U.S. to access free software products on the IRS website.  In addition, taxpayers are encouraged to use mobile devices as an alternative to traditional computers.  The IRS emphasized that taxpayers have multiple options for filing their taxes, including tax software, tax professionals, Free File, or free tax preparation services through IRS partners.  The tool includes eight private-sector partners who will provide free options for filing tax returns online or in person for individuals with an average gross income of $79,000 or less in 2023.  The IRS promotes this tool as a simple alternative for taxpayers to claim the full amount of tax benefits they qualify for, such as the Earned Income Tax Credit and the Child Tax Credit.

 

In order to evaluate customer support and technology requirements, the IRS has planned a limited-scope pilot for the upcoming 2024 tax season.  This pilot program will not only help the IRS assess its operational challenges but also serve as a platform to test and identify successful solutions.  The aim is to address the issues highlighted in the report submitted to Congress by the IRS earlier this year, ensuring improved efficiency and effectiveness in their operations.

 

2024 Tax Season Important Dates

January 12, 2024 IRS Free File opens.
January 16, 2024 The due date for 2023 fourth quarter estimated tax payments.
January 26, 2024 Earned Income Tax Credit Awareness Day.
January 29, 2024 Filing season start date for individual tax returns.
April 15, 2024 Due date of filing a tax return or to request an extension for most of the nation.
April 17, 2024 The due date for Maine and Massachusetts.
October 15, 2024 The due date for extension filers.

 

IRS Audit Group

IRS Audit Group consists of tax professionals, CPAs, enrolled agents, and tax attorneys.  We are located in Los Angeles; California and our primary area of expertise is IRS Tax Audit Representation.  However, our certified professionals cooperate and work with all IRS offices across the country.  Please get in touch with us for more information.  https://irsauditgroup.com/contact/

Toll Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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How to Handle a Dispute with the IRS

Mistakes in Tax Refunds or Tax Due – How to Handle a Dispute with the IRS? Appeals and Litigation Options

The deadline for Tax Season 2023 for individuals is over, and those who filed for refunds will be receiving the same within 21 days from the filing date.  But, If the taxpayers have received a notice from the IRS that their taxes are incorrect or that they owe money, they can either pay or dispute if IRS is wrong. There are options available to resolve such disputes. The IRS dispute process is an essential part of the tax system, but it can be complicated and intimidating. Managing a dispute with IRS can be a complex and compelling process for taxpayers. Following are the steps to manage a dispute with the IRS. The first step in managing an IRS dispute is understanding how the process works, and what options are available for appealing or litigating the issue at hand.

Understanding the IRS Dispute Process

The IRS dispute procedure consists of numerous steps. Taxpayers can file a dispute if they disagree with the amount of tax they are required to pay or believe the IRS made a mistake in their tax return. If there are any changes that would affect their refund or balance payable, the first step is to file Form 1040X. Taxpayers can submit Form 9465, Form 8857, or Form 843 with the required supporting paperwork if there are no changes. These forms include Instalments Agreement Request, Request for Innocent Spouse Relief, and Claim for Refund and Request for Abatement, respectively. Ensure that taxpayers submit all required forms and documents to initiate the dispute process.

If there is no communication from the IRS regarding the dispute after 90 days from the filing, it is time to move forward with appealing their decision. To do so, follow these steps:

Appealing IRS decision

Taxpayers have the right to appeal an IRS decision, and taxpayers have the right to use the two-step appeals process which involves an administrative appeal. Taxpayers need to submit a written request for reconsideration to the office that made the initial decision within 60 days of receiving a letter of disallowance. This can be done by letter, fax, or online at www.irs.gov/appeals. Taxpayers can request Form 12356-A, which offers guidance on how to complete and submit the appeals with necessary supporting evidence. This phase of the investigation aims to identify why the IRS took certain actions, such as reducing refunds.

Litigating IRS Dispute

Taxpayers need to take legal action if they are unable to resolve their dispute with the IRS. The IRS offers several options for litigating disputes that include.

  • Filing a lawsuit against the IRS in court. If a taxpayer has a valid reason for disputing an assessment or collection activity, they can file suit against the IRS in federal court or state court if applicable. Throughout this process, they need a tax attorney who specializes in tax law to represent them.
  • Requesting a management hearing with the Appeals Office Reviewer (AOR) is another option when appealing an IRS decision. AOR evaluation from the relevant evidence before determining whether to grant relief or not. This step does not guarantee relief, but it’s usually the first taken in appeals.

The IRS dispute process can be confusing, but it’s important to know taxpayers’ options. It is important to understand the steps included and the options available to taxpayers for resolving the issue. This may include communications with IRS and providing additional information to support their position, requesting an appeals conference with an independent appeals officer, or considering mediation. In some cases, litigation may be necessary. Therefore, seeking tax professional advice and guidance throughout the process can help ensure that taxpayer’s rights are protected and they’re able to achieve the best possible outcome. IRS Audit Group is a tax audit representation company that helps taxpayers navigate such time-consuming dispute processes. Contact us for a free consultation. https://irsauditgroup.com/contact/

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Pros and Cons of Self-Representation During an IRS Audit

Have You Decided to Represent Yourself in the IRS Audit? –Know the Pros and Cons of Self-Representation During an IRS Audit

There are times when Taxpayers choose to represent themselves in an IRS audit or hire a tax professional to handle the case on their behalf. Those who want to avoid paying legal fees or who feel they have a thorough understanding of tax law may find self-representation to be intriguing. However, it also comes with its own set of risks and potential downsides. Here are some of the pros and cons of self-representation during an IRS audit, and helps taxpayers make an informed decision about how best to handle their audit.

Pros of Self-Representation

Cost Savings: One of the biggest benefits of self-representation is savings on account of Auditor fees. Taxpayers who represent themselves are not required to pay for tax audit representation services. Particularly for individuals or small-business owners who are on a limited budget, this gives considerable savings.

Better Control: The taxpayer has more influence over the process when they act as their own representative. They are in charge of gathering and submitting the required paperwork and data. This enables them to ensure that everything is conducted appropriately and to comprehend every step of the procedure.

Knowledge Enhancement: Self-representation can also be an excellent opportunity to learn more about tax law and the audit process. To make sure they are presenting their case appropriately, the taxpayer will need to read and comprehend tax laws and processes. The knowledge and experience gained will be useful for conducting business thereafter.

Cons of Self-Representation

Lack of Expertise: The audit process can be intimidating for taxpayers who are not familiar with tax law because it is complicated. An established tax audit representation company has experts who have extensive knowledge of tax law with years of experience dealing with the IRS. They are better prepared to identify any deductions or credits that taxpayer misses, and they can ensure that their representation is accurate and complete.

Reduced Emotional Distress: An IRS audit can be stressful, and self-representation can amplify that stress. The IRS correspondence can be handled entirely on behalf of the taxpayer by a tax audit representation firm, lessening their emotional burden and enabling them to concentrate on other facets of their lives.

Timesaving: Self-representation consumes time, and taxpayers who are familiar with the audit procedure would end up with mistakes and omissions. The documentation and correspondence with the IRS can be overseen by a qualified tax audit representation firm, saving the taxpayers’ time and guaranteeing that everything is done correctly.

Reduced Risk of Penalties: If a taxpayer makes a mistake in representation, it could result in penalties or interest charges. A tax professional has the knowledge to guarantee correct and thorough taxpayer representation, lowering the possibility of fines and interest charges.

Self-representation during an IRS audit seems like a cost-worthwhile option, but it is important to consider the potential drawbacks. The lack of proficiency, emotional distress, and time-consuming nature of the process can ultimately lead to mistakes, which can result in fines and interest charges. Therefore, it is generally suitable to seek the services of a professional tax audit representation company. Their experts can provide the necessary knowledge and experience to navigate the audit process successfully and minimize the risk of penalties and interest charges.

If you are facing an IRS audit and require assistance, reach out to the IRS Audit Group based in Los Angeles. We specialize in tax audit representation and aim to guide taxpayers through the audit process while safeguarding their rights. Our team has Lawyers, CPA,s and Enrolled agents who can carefully examine your tax records and returns, communicate with the IRS on your behalf, represent you during the audit, and negotiate with the IRS to help you avoid the stressful ordeal. We ensure that clients achieve the best possible outcome from the audit process. You can contact us to schedule a free consultation. https://irsauditgroup.com/contact/

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Role of An IRS Audit Representation Firm

Role of An IRS Audit Representation Firm and The Benefits of Hiring an Experienced Tax Attorney for IRS Audit Representation

IRS is known for being severe and unforgiving, even for minor inaccuracies on taxpayers’ returns. This can result in auditing your tax return and imposing substantial fines and interest.  Dealing with an IRS audit can be a worrying and compelling experience, particularly for those who are not familiar with the tax code and audit process. This is where an IRS audit representation company can step in to make the process easier.

Role of IRS Audit Representation

  • Communication: During an audit, an IRS audit representation firm serves as the taxpayer’s point of contact with the IRS. All correspondence, including information requests, inquiries, and scheduling appointments with the auditor, will be handled by them.
  • Strategy development: An IRS audit representation service will create a plan for responding to the audit based on their analysis. Obtaining more evidence or data may be necessary, or the auditor’s conclusions may need to be contested.
  • Analysis: Tax returns and financial documents will be examined by an experienced tax attorney to find any potential problems. Additionally, they will examine the audit results and determine any potential effects on tax liability.
  • Negotiation: A taxpayer’s complaints or disagreements with the IRS during the audit process will be resolved through negotiation on their behalf by an IRS audit representation company. They will attempt to minimize any fines or interest imposed and to get the best result for the taxpayers.
  • Education: Taxpayers will learn about the audit process, their rights as taxpayers, and any possible repercussions. The taxpayer will be better able to comprehend what’s happening and decide how to move forward in avoiding further IRS audits.

Overall, an IRS audit representation company will fight to uphold the rights of taxpayers, guarantee a fair and accurate audit, and represent their interests at every stage.

Benefits Of Hiring an Experienced Tax Attorney

  • Expertise: A professional tax lawyer is knowledgeable and skilled in tax law and IRS processes. This can be quite helpful when negotiating with the IRS and navigating the audit process. They are knowledgeable about the intricacies of the tax code and can offer the required direction to guarantee that the taxpayer’s rights are upheld.
  • Long-Term Tax Planning: Long-term tax planning advice and direction can also be obtained from a tax attorney. This can lessen taxpayers’ tax obligations and help them avoid further audits.
  • Peace of Mind: A taxpayer may feel more at ease knowing they have a skilled tax attorney on their side. Taxpayers will be aware that a competent and experienced professional is defending their rights and advancing their interests. This can reduce the tension and worry brought on by an IRS audit.
  • Protection of Taxpayer Rights: Throughout the auditing process, a tax attorney can defend the legal rights of the taxpayer. They can make sure that the IRS does not unfairly target taxpayers and that their rights are upheld while being audited. They can also guarantee that the IRS complies with all legal requirements and respects taxpayers’ rights.

Facing an IRS audit can be a difficult task, but the good news is that taxpayers don’t have to do it alone. An IRS audit representation company with its tax attorneys can help navigate the audit process and protect taxpayers’ rights. IRS Audit Group, based in Los Angeles, can support taxpayers who need help in the IRS audit. To save you from going through the stressful procedure you can Contact us for free consultation. https://irsauditgroup.com/contact/

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Deadline for a Tax-Exempt

Deadline for a Tax-Exempt Organization for this Tax Season 2023 – Avoid These Errors While Filing

Tax Season 2023’s due date for Tax-Exempt Organisations is May 15, 2023, to file returns. Numerous tax-exempt organizations have received reminders from the IRS on their forthcoming filing deadline of May 15, 2023. Tax-exempt organizations often need to submit certain reports by the 15th day of the fifth month after the end of their accounting period. However, if the 15th falls on a weekend or holiday, the due date is extended to the next business day.

What are Tax Exempt Organizations and Who Are Eligible?

Entities that are excused by IRS from paying federal income tax are known as Tax-exempt organizations. These organizations need to run solely for reasons of religion, charity, science, literature, education, or the prevention of cruelty to children or animals. Charitable organizations, churches and other religious institutions, educational institutions, hospitals, and social welfare organizations are examples of tax-exempt organizations. One can also find out whether an organization is tax-exempt using the IRS tool provided.

How to File the Returns for Tax Season 2023?

To make it easier to comply with reporting obligations, tax-exempt organizations are encouraged to file their returns electronically. Electronic filing provides a quick acknowledgment of the IRS receiving the return and reduces processing time. For the tax season 2023, organizations filing Form 990, 990-EZ, 990-PF, or 990-T must submit their returns electronically, and private foundations filing Form 4720 must also file the form electronically. Charities and other tax-exempt organizations can file these forms electronically using an IRS-authorized e-File Provider. Furthermore, organizations eligible to submit Form 990-N need to do so electronically and can use Form 990-N (e-Postcard) on the IRS website to file. By filing their tax returns electronically, tax-exempt organizations can comply with the reporting requirements quickly and efficiently.

Apply for an Extension of Time to File the Tax Returns for 2022

If a tax-exempt organization is unable to file its return by the due date, it can request an extension of time to file using Form 8868, Application for Extension of Time to File an Exempt Organization Return. This form must also be filed by the deadline of the tax season 2023, i.e., May 15, 2023. The extension provides an additional six months to file the tax return. However, the extension does not extend the time to pay any taxes owed, it only allows the organizations to file the returns at a later date. Organizations that cannot pay any taxes owed by the original due date may be subject to penalties and interest.

Avoid these Errors While Filing for the Tax Season 2023

Tax-exempt organizations can avoid penalties and interest by avoiding common errors when filing their tax returns. IRS warns of a few common mistakes such as

  • Failing to file on time or requesting an extension.
  • Not disclosing all sources of income, including income from unrelated businesses.
  • Failing to disclose expenses accurately, such as compensation paid to officers and directors.
  • Failing to include all necessary schedules and disclosures.
  • Failing to maintain adequate records and documentation to support the tax return.

Tax-exempt organizations should take the appropriate precautions to ensure that their tax returns are filed accurately and on time to avoid errors, including maintaining thorough records, checking their tax forms before submitting them, and seeking expert assistance like a tax professional as needed.

In case one need assistance in filing or disputing the tax owed, the IRS Audit Group from Los Angeles can help. IRS Audit Group is a tax audit representation company that helps taxpayers navigate the audit process and ensure that their rights are protected during the audit. We review your tax records and returns, communicate with the IRS, represent you at the audit, and negotiate with the IRS so that you don’t have to go through a stressful process. We ensure the best possible outcome for the clients. Contact us for a free consultation.

https://irsauditgroup.com/contact/

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Missed Your Tax Season filing

Missed Your Tax Season 2023 Deadline? Find Out Your Options to Pay Taxes, if any.

Tax season can be a stressful time for those who run behind the filing schedule. Taxpayers who aren’t able to file their returns for tax season 2023 by April 18, 2023, deadline, can request an extension. Filing an extension will give an additional six months to file taxes. However, it is important to note that an extension does not give taxpayers extra time to pay any taxes owed. Taxpayers need to pay their federal income tax due by April 18, 2023, to avoid interest and penalties.

If you have missed paying the taxes and/or failure to file an extension before the deadline, the following options are the next actions available now.

Option 1: Pay Taxes as Soon as Possible.

If one owes taxes, it is important to pay them as soon as possible. If you are unable to pay the full amount, then can still make a partial payment to reduce the amount of interest and penalties. Taxpayers can make a payment online using the IRS Direct Pay system, which allows individuals to pay directly from their bank account. Taxpayers can also pay by credit or with a debit card, with certain additional fees associated with this method.

Option 2: Set Up a Payment Plan

The IRS gives an option for taxpayers who cannot pay the full amount owed all at once. They can set up a payment plan with the IRS. This will allow taxpayers to make monthly payments until the balance amount is paid in full. To set up a payment plan, an individual needs to fill out Form 9465.

There are two types of payment plans available: short-term and long-term. A short-term payment plan allows payment of the balance in full within 120 days. No extra fee associated with this plan, but interest and penalties will continue to accrue until the balance is paid in full. A long-term payment plan allows payment of a balance over a period of several months or years. There is a fee associated with this plan, and interest and penalties will continue to accrue until the balance is paid in full.

Option 3: Offer in Compromise

If the taxpayer is unable to pay the full amount owed and can’t set up a payment plan, they are eligible for an Offer in Compromise. This is an agreement between the taxpayer and the IRS to settle the debt for less than the full amount owed. To be eligible for an Offer of Compromise, one needs to demonstrate that paying the full amount owed would cause financial hardship. And also need to provide detailed financial information, including their income, expenses, assets, and liabilities. To apply for an Offer in Compromise, the individual needs to fill out Form 656. It is important to note that an Offer in Compromise is not guaranteed, and the IRS will carefully review the individual’s financial information before making a decision.

In case an individual has missed the tax season 2023 deadline and owes taxes; it is important to act as soon as possible. Filing an extension, paying taxes as soon as possible, setting up a payment plan, or exploring an Offer in Compromise are all options to consider. Be sure to consult with a tax professional to determine the best course of action for the specific situation.

 

IRS Audit Group is Los Angeles-based company that offers tax audit representation services to individuals and businesses facing IRS audits or disputes. The company’s team consists of CPAs, tax attorneys, and enrolled agents who have experience working on both sides of tax disputes. If you receive any mail from IRS regarding a tax audit, don’t panic and don’t delay, contact a tax professional who is experienced in handling IRS audits by us. Contact us for a free consultation on understanding your tax situation.

https://irsauditgroup.com/contact/

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Tax Refunds Deadline

Have You Claimed Your Refunds for the Tax Year 2019? IRS Set Tax Season 2023 as Deadline to Claim the Refunds

The Internal Revenue Service (IRS) has recently announced that around 1.5 million people across the country have not yet claimed their refunds for the tax year 2019. However, the deadline to file the returns is July 17, 2023, which is three years after the usual deadline. Due to the COVID-19 pandemic crisis, the IRS deferred the deadline for 2019 unfiled returns. The average median refund for 2019 is $893, and the IRS has estimated that $1.5 billion in refunds are still unclaimed.

Many taxpayers may have forgotten or ignored their tax refunds since 2019 due to the pandemic. To prevent losing out on the opportunity, taxpayers need to submit their refund requests prior to the deadline. Typically, individuals have three years to file their tax returns and request any refunds.

While many people would have missed out on filing their tax returns due to the unusual situation caused by the pandemic, some stand to lose more than just their refund of taxes withheld or paid during 2019. Earned Income Tax benefit (EITC) is a tax benefit that many low – and moderate-income employees are eligible for. The credit’s maximum value for 2019 was $6,557. The EITC provides assistance when an individual or family’s income is below a specific threshold. Those who qualified for the EITC in 2019 had incomes below particular thresholds, based on the number of qualifying children.

Taxpayers requesting a 2019 tax refund should also be aware that their checks will be held if they fail to file tax returns for 2020 and 2021. Additionally, the refund will be applied to any amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or past-due federal debts, such as student loans.

Where To Obtain Essential Documents for Filing 2019 Tax Return?

Even though the tax year was three years ago, the IRS has offered taxpayers several ways to access the data they need to submit their 2019 tax forms. To ensure taxpayers have enough time to file before the deadline, IRS advises people to get started as soon as possible. One approach is to ask their employer, bank, or other payers for copies of important records like Forms W-2, 1098, 1099, or 5498. Another choice is to order a free wage and income transcript via Get Transcript Online at IRS.gov. For many taxpayers, this instrument is by far the quickest and easiest choice. As an alternative, individuals can submit Form 4506-T to the IRS to obtain a “wage and income transcript.” However, it is essential to plan since written requests can take several weeks.

 

Depending on a household’s tax circumstances, the actual refund amount can change. Therefore, to avoid missing the deadline, taxpayers are urged to review their records and start gathering documentation.

IRS Audit Group is a tax audit representation firm located in Los Angeles, California. If the IRS requires more information to validate your tax return filing, they may ask for it, and in rare cases, they may initiate a tax audit via mail notice. In such situations, it is crucial to have the assistance of a licensed tax professional like the ones at IRS Audit Group. IRS Audit Group is comprised of qualified CPAs and IRS Enrolled Agents. They can analyze your tax situation and help alleviate the burden of dealing with an IRS audit. Having proper representation in an IRS audit is essential, and the IRS Audit Group can provide the necessary support to navigate the process successfully. To learn more about our services, visit the website and contact us for further information.

https://irsauditgroup.com/contact/

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

 

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Audit Process and Time Duration

What to Do If IRS Initiates Tax Audit of Your Small Businesses? Know The Step-by-Step Audit Process and Time Duration of IRS Audit

Small business owners find it hard to go through an IRS audit. After receiving an audit notice, the first thing to do is to thoroughly read it and gather all necessary paperwork. Consulting with a tax professional will always help you understand the audit process and ensure compliance with tax laws. When responding to IRS, please note to pay special attention to the details. Any mistakes or discrepancies will raise more queries or guarantee additional research. The procedure can go more easily if taxpayers reply to the IRS right away, and act professionally while being audited. Taxpayers can even dispute the IRS’s decision if it determines they are bound to pay additional taxes or fines.

General IRS Audit Process

The general process of an IRS audit involves several stages. The exact process varies depending on the type and scope of the IRS audit, but the following outline is a general overview.

  • Notification: The IRS will send a notification letter to inform the taxpayer that they have been selected for a tax audit. The letter will outline the reason behind the audit as well as the paperwork the taxpayer must submit.
  • Preparation: The taxpayer is required to compile all essential records and papers for the audit. To comprehend the audit procedure and make sure they follow tax rules, they can consult with a tax professional.
  • Examination: To ensure that the tax return is accurate, the IRS will review the taxpayer’s files and records. An on-site visit to the taxpayer’s residence or place of business may be necessary.
  • Communication: The IRS will keep in touch with the taxpayer during the IRS audit process to clarify any problems or discrepancies discovered and, if necessary, to request further information or documents.
  • Resolution: The IRS will report any changes that need to be made to the taxpayer’s filed return after the examination is finished. The taxpayer will have the chance to refute any conclusions or bargain a deal with the IRS.
  • Appeals: The taxpayer has the right to challenge the judgment in court or through an administrative procedure with the IRS if they disagree with the audit’s conclusion.

Overall, the process of an IRS audit can be complex and time-consuming, but being prepared and cooperating with the IRS always helps the process go more smoothly. Complex IRS audits need tax professional help from a tax audit representation company that can analyze your circumstances and represent on behalf of you in front of the IRS for the audit sessions.

How Long Will the Audit Process Take?

Several variables can affect how long an IRS audit lasts. The sort of audit being undertaken is one of the important factors. For instance, if a correspondence audit just entails looking through a small portion of a taxpayer’s return, it might be finished in a couple of weeks. On the other hand, a field audit that needs to visit the taxpayer’s place of business or residence and study a substantial number of records will take several months.

The complexity of the taxpayer’s return, the volume of records and papers being examined, and the IRS agents’ and taxpayers’ availability are additional elements that affect audit tenure. Additionally, if the audit identifies issues or discrepancies that require further review, the process will take longer.

It’s crucial to keep in mind that the timeframe of an IRS audit can be extended if the taxpayer refuses to provide information or documents when requested, contests the audit’s conclusions, or tries to reach a settlement with the IRS.

The duration of an IRS audit varies significantly based on the particulars of each case. But taxpayers can attempt to keep the process moving and make sure that the audit is finished as soon and effectively as possible by collaborating with the IRS agent.

These time-consuming audits can frustrate small business owners as they have to deal with extra work besides running their companies. Also, they will not find enough time to meet the IRS agents and answer all the questions. Thus a tax audit representation firm like IRS Audit Group can help them by representing on behalf of the client. The company is located in Los Angeles, California but as the IRS is a Federal Agency, we can request the case to be transferred to a local IRS office in Los Angeles. Contact us to learn more about our services and get a free consultation on your case.

https://irsauditgroup.com/contact/

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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IRS Audit Group

Tax attorney in Beverly Hills, California

468 N Camden Dr #200,
Beverly Hills, CA 90210, USA

Call: +1 888-300-6670

Hours

Sunday8:00am-5:00pm Monday8:00am-10:00pm Tuesday8:00am-10:00pm Wednesday8:00am-10:00pm Thursday8:00am-10:00pm Friday8:00am-10:00pm Saturday8:00am-10:00pm