Tag Archives: Tax

The Two Best Benefits of Hiring a Tax Debt Relief Company

Most companies have outstanding debts or owe money to the IRS that make them be on the government’s wanted list. The thing about IRS is that they should never be underestimated under any conditions because they will hunt you down and make you squeal for every penny you have.

But there is a way out of this, even if you don’t have the necessary funds to make the payment. You can ask for forgiveness! But to do that, you will need to hire a professional tax debt relief company that will help you escape from the plight. Here are two benefits that it will entail you:

Settling for an Amount

discussing debtDon’t worry too much because, as we said at the beginning of the article, many companies have debts to the IRS, which means you are not alone. Don’t get too paranoid because every pinch has an escape, and you just don’t know it yet! The IRS may be relentless, but they are not unforgiving. They have a forgiveness system called the Offer in Compromise or OIC for short that allows your debt to be forgiven entirely or for a certain amount, depending on how well you negotiate for it.

Now, the IRS is quite the stickler when it comes to how well you prepare the OIC, and if you don’t know how to prepare it and mess it up, it will seriously hurt your chances of getting leniency from the IRS. So, what do you do? What can you do? The best way to get out of this is by hiring a professional tax debt relief company that knows the ins and outs of the OIC and can hook you up with the best offer to get your debt forgiven!

Making a Plausible Payment Plan

In case you didn’t get the good graces of the IRS, Plan B is making a plausible payment plan for your loan, which means you can afford to pay your debts, and it is not unrealistic in any way, shape, or form. The IRS will ask you for information, such as your monthly payment plan and sources of income, which you should agree to divulge because they will come up with an installment agreement that is roughly around 72 months to pay back your debt.

So, if you have a debt of $10.000, then you will only need to pay $138 each month, which makes it totally reasonable and achievable! But the catch is, there are application fees and other hidden costs that the IRS might impose on you, which is why you want to hire a tax debt relief company to create a plausible and reasonable payment plan that will save your skin from the clutches of the IRS!…

Corporate Taxes: How to Prepare

As long as you are running a business, you are required to pay corporate tax. It is a direct tax imposed by the government on the income of corporations or any similar legal entities and often taxed at the minimal rate. It’s almost close to impossible to avoid paying taxes. However, with proper planning, a company can reduce its taxes and grow its working capital.

Who Is Required to Pay Corporate Tax?

Corporate taxes are taxed on corporations that are incorporated and operating in a given country, corporation operating on income from that particular country, and foreign corporations that have established permanent residence in a given state. However, not all corporation are taxed equitably. For instance, US Corporations working abroad can quickly shift their profits from the US to tax heavens when compared to wholly domesticated businesses. Again, corporations, which have numerous trademarks and patents, can also move their profits to tax havens.

Some companies (S corporations) are, however, exempted from paying taxes at the corporate level, and these lead to the corporate shareholders paying for individual income tax.

Tax Reduction through Proper Tax Planning

Proper corporate tax planning is essential for any business that wishes to increase their profits while still meeting their obligation to the government. Reduced taxes are achieved by employing various methods that include:

1. Inventory Control and Evaluation Method

Controlling a company’s inventory cost by knowing the appropriate times to make purchases and how to make them can positively impact the corporation’s tax deductions. This is where the skills of a good tax planning accountant come in handy.

A corporate can utilize the LIFO and FIFO inventory evaluation methods to cut down their taxes. LIFO (last in, first out) is best preferred in times of rising cost while FIFO (first in, first out) is useful in times of deflation.

2. Accounting Methods

Accounting methods also affect the taxes you are required to pay and the cash flow into your business. We usually have the accrual and cash methods. Through the cash method, taxes can be reduced by delaying billing, i.e., income is only recorded once received. Accrual method, on the other hand, recognizes debts and profits once they occur.

Corporate Tax Preparation

For corporate tax preparation, especially income tax return for your company, you will first be required to obtain your company’s balance sheet and income sheet. Next, you will need to get the corporate tax forms and schedules. Having troubles finding the forms and schedules? If yes, try checking with your State’s Revenue Agency website.

You will find all the types of schedules and forms with your Revenue agency that you would require for your company’s tax returns. It’s important to learn the basics and uses of each form and schedule.

If you are having troubles filling out the tax returns forms, you can consider outsourcing your tax preparations. Such firms that do tax returns on your behalf not only prepare taxes but also offer a range of services to ensure efficiency throughout the process. This can be attributed to their qualified, experienced and expert staff.

Finally, remember to meet the deadlines set to have your returns filled to avoid additional penalty costs. Also, remember to declare if you have nothing to pay.…