Tax season can be an unpleasant time of year for a lot of taxpayers, especially if you owe money to the IRS or State. The one thing you can do is, be proactive, and prepared, and engage a tax resolution specialist to help guide you.


If you owe back taxes to the IRS, then read every word in this article very carefully because what you do next can impact your financial stability and peace of mind. Today I will share with you what tax resolution is and how it can help you.


Before we jump into it, if you have a back tax debt or years of unfiled tax returns, contact our firm for a consultation We always recommend that you do not talk to the IRS without representation as, many times, it makes your situation worse.


The IRS can be an intimidating agency to speak with and will do everything in its power to collect what is owed to them. Connect with one of our tax resolution specialists for a no-obligation consultation so we can review your case and guide you to the best option for your specific situation. You won’t have to talk to the IRS; our firm can provide the peace of mind needed to resolve your tax issue.


What is Tax Resolution?

Tax resolution, also known as IRS Representation, or Tax Controversy, is the process of resolving back tax issues with the IRS or state tax authorities. It generally involves negotiating a payment plan or a settlement agreement for less than you owe. Many times, for a lot less if you’re eligible.


There are several options available for resolving taxes owed including:

  • Payment Plan A payment plan is an installment agreement that allows you to pay off your tax debt over time until the debt is paid in full.
  • Partial Pay Payment Plan – A “PPIA” is an installment agreement that allows you to pay off your tax debt for less than the total amount.
  • Offer in Compromise An Offer in Compromise (OIC) is an agreement between you and the IRS to settle your tax debt for less than the total amount owed. To qualify for an OIC, you must demonstrate that you are unable to pay your tax debt in full and meet certain eligibility requirements.
  • Currently Not Collectible If you are facing financial hardship and are unable to pay your tax debt, you may qualify for Currently Not Collectible (CNC) status. This means that the IRS will temporarily suspend collection efforts until your financial situation improves. However, this does not mean you do not owe what you owe, it just means it is a temporary suspension on making monthly payments to the IRS.


How Can Tax Resolution Help You?

If you find yourself in the unfortunate situation of owing back taxes to the IRS, then here is how tax resolution can help you in several ways:

  • Avoid Penalties and Interest When you owe back taxes, the IRS will assess penalties and interest on the amount owed. These fees can add up to another 50% to the principal tax owed. We can help you avoid or reduce these fees, which can add up quickly over time.
  • Reduce Your Tax Debt Tax resolution can help you negotiate a settlement agreement or payment plan that reduces your tax debt. This can make it easier to pay off your outstanding taxes and get back on track financially.
  • Protect Your Assets If you owe back taxes, the IRS will eventually attempt to garnish your wages or seize your assets, including bank accounts. We can help you protect your assets and income and negotiate the lowest monthly payment allowed by law.
  • Improve Your Credit Score When you owe back taxes, it may negatively impact your credit score. Tax resolution can help you pay off your tax debt and improve your credit score over time.


In conclusion, tax resolution is a way to settle tax debt and get back on track financially. It involves negotiating a payment plan or settlement agreement with the IRS or state tax authorities. By avoiding penalties and interest, reducing your tax debt, protecting your assets, and improving your credit score, tax resolution can help you achieve financial stability and peace of mind. If you owe back taxes, it is important to take action sooner, rather than later, and explore your options for resolution.

Our firm specializes in tax resolution, even if you have years of unfiled tax returns, or owe the IRS over $10,000 we can help! If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

Working at a tender age is an American tradition. What isn’t so traditional is the notion of kids contributing to their own IRA, especially a Roth IRA. But it should be a tradition, because it’s a really good idea.


Here’s what you need to know about IRAs for kids. Let’s start with the Roth IRA option.


Roth IRA Contribution Basics


The only federal-income-tax-law requirement for a child to make an annual Roth IRA contribution is to have enough earned income during the year to cover the contribution. Age is completely irrelevant.


So if a child earns some cash from a summer job or part-time work after school, he or she is entitled to make a Roth contribution for that year.

For both the 2021 and 2022 tax years, your working child can contribute the lesser of

  • his or her earned income for the year, or
  • $6,000.

While the same $6,000 contribution limit applies equally to Roth IRAs and traditional IRAs, the Roth option is usually better for kids.

Key point. A contribution for your child’s 2021 tax year can be made as late as April 15, 2022. So, there’s still time for that.


Modest Contributions to Child’s Roth IRA Can Amount to Big Bucks by Retirement Age


By making Roth contributions for a few years during the teenage years your kid can potentially accumulate quite a bit of money by retirement age.


But realistically, most kids won’t be willing to contribute the $6,000 annual maximum even when they have enough earnings to do so.


Say the child contributes $2,500 at the end of each of the four years. Assuming a 5 percent return, the Roth account would be worth about $82,000 in 45 years. Assuming an 8 percent return, the account value jumps to a whopping $259,000. Wow!


You get the idea. With relatively modest annual contributions for just a few years, Roth IRAs can be worth eye-popping amounts by the time your “kid” approaches retirement age.


If you would like to discuss earned income and IRS options for your child, please call me on my direct line at (757) 410-8030


If you are running a small business, you have one unwanted partner that will dig into your pocket every year, it’s the IRS. The IRS wants to know what you are doing, how much you are earning and most importantly how much you are paying in taxes, and the tax agency is becoming increasingly aggressive in this regard. While the audit rate for individual returns has been hovering at far less than 1%, the audit rate for small businesses can be as much as 10 times higher.


It does not matter if you operate as a sole proprietor and use Schedule C to claim your income or if you are set up as a C-corp, S-corp or LLC – the IRS is watching what you do, and if they think you are not paying your fair share they will certainly come calling. When that demand letter from the IRS arrives, knowing what to do next can make all the difference, and the more you educate yourself the easier it will be to deal with, and eliminate, the tax debt.


Note: As a tax resolution firm, we always recommend that you reach out to a professional who knows how to aggressively negotiate and defend you against the IRS on your behalf. If you owe back taxes or are under audit, our firm can help negotiate with the IRS and potentially settle your tax debt. Call us today. Our tax resolution specialists can navigate the IRS maze so that you have nothing to worry about. Set a meeting here.


Small business owners are increasingly the target of enforcement efforts by the IRS, but the IRS does have some programs in place to make paying what those business owners owe easier. In some cases those small business tax relief and tax resolution programs let you settle for less than what you owe but qualifying is not as straightforward as you might think.


For businesses that may be eligible, the assistance of a tax resolution specialist is absolutely critical. These experts can help guide you through the process and make sure you qualify, so you can rest a little easier and get back to building your business.


Payment Plans/Installment Agreements

If the amount your small business owes to the IRS is relatively small and you do not want to deal with additional hassles, it may make sense to pay the entire bill in full. If paying in full would be a hardship, the IRS does offer payment plans, and setting one up can make paying back what you owe easier and more financially palatable.


Keep in mind that interest will continue to accrue while the debt remains outstanding, and that is something to think about.


Offer In Compromise

If you’re under a lot of financial hardship, it may make more sense to try for

an offer in compromise (OIC), a special IRS program that could allow you to pay back less than you owe.


The offer in compromise program is a popular one with individual taxpayers and small business owners. If paying the entire amount would create a financial hardship for you, your family or your business, a tax resolution specialist can help you make the case to the IRS that you deserve a break.


What’s the best option?

Each of these options has its pros and cons, and it is important to understand how these programs work and who qualifies to use them. If your small business is in trouble with the IRS, taking the right action right away could reduce the amount you owe, give you some breathing room and allow you to focus on your clients – not on your taxes.


Running a small business has its challenges, but those difficulties are nothing compared to the stress and anxiety small business owners feel when dealing with the IRS. With so many small business owners now in IRS crosshairs, it has never been more important for freelancers, gig workers and the self-employed to have an advocate in their corner.


If you find yourself on the wrong end of an audit, a tax bill or an enforcement action from the IRS, the steps you take next are absolutely critical. Trying to take on the IRS on your own is a dangerous, and potentially expensive, thing to do, and you should always contact a tax resolution firm.


By working with an expert, you can gain access to vital information about small business settlement programs the IRS offers. You can gain access to the expertise you will need to settle your tax bill for less than you owe and get back in the good graces of the IRS. Time is of the essence when the IRS comes calling, and with the interest and penalty clock ticking you do not have one second to waste. So call us, your tax resolution expert, for a case evaluation. Set a meeting here.

If you hire an employee for your Schedule C business, you can qualify for several valuable tax credits. Each credit is different, and certain limitations apply to all or most employer tax credits. Remember, tax credits are the best. They beat deductions. Note the difference below (using the 32 percent bracket):

  • A $1,000 deduction for wages reduces your income taxes by $320.
  • A $1,000 credit reduces your taxes by $680 ($1,000 – $320).

Many tax credits are not available if you hire a person related to you, including children, stepchildren, a spouse, parents, siblings, step-siblings, nephews, nieces, uncles, aunts, cousins, or in-laws.


Eight Valuable Tax Credits for Business Owners

Below are listed the eight non-refundable tax credits that Schedule C business owners can claim when they hire employees.

  1. Work Opportunity Tax Credit (WOTC). The WOTC rewards employers for hiring employees from groups the IRS has identified as having “consistently faced significant barriers to employment.”
  2. Family and Medical Leave Credit. Federal law doesn’t require that you give paid leave to your employees who need to take time off for family reasons (such as the birth of a child) or due to their illness or that of a family member. (A few states require some paid leave that’s funded through payroll deductions). But if you choose to provide such paid leave, the federal tax code may reward you with a family and medical leave tax credit.
  3. Credit for Small Employer Health Insurance Premiums. If you have fewer than 50 full-time-equivalent employees, you are not required to provide your employees with health insurance. But if you elect to do so, you may qualify for the small business health care tax credit. This tax credit is available to eligible employers for two consecutive tax years.
  4. Credit for Small Employer Pension Plan Start-Up Costs. This credit is for the cost of setting up an employee pension plan, including a new 401(k) plan, 403(b) plan, defined benefit plan (a traditional employee pension plan), profit-sharing plan, SIMPLE IRA, or SIMPLE 401(k), or SEP-IRA. The costs covered by the credit include the expenses to establish and administer the plan and to educate employees about retirement planning.
  5. Credit for Employer-Provided Childcare Facilities and Services. This little-used credit is intended to encourage employers to provide childcare to their employees. There are two ways to get the credit:
    • Build, acquire, rehabilitate, or expand an on-site childcare facility for your employees’ children, and help pay to operate it.
    • Contract with a licensed childcare program, including a home-based provider, to provide childcare for your employees.

The second option is more realistic for smaller businesses. Businesses often partner with childcare companies such as the Learning Care Group, Bright Horizons, and KinderCare to offer this benefit.

  1. Empowerment Zone Employment Credit. Is your business located in one of the designated empowerment zones? These are areas of high poverty and unemployment identified by the U.S. Department of Housing and Urban Development or Secretary of Agriculture. You can find a list and map on the HUD website.

           Key point. You might be surprised which places the government designates as having high poverty and unemployment. It’s worth checking out.

You can claim a credit equal to 20 percent of the first $15,000 in wages you pay to full- or part-time employees who both live and work in an empowerment zone.

Thus, the maximum credit is $3,000 per employee (20 percent x $15,000). The employees must work for you for at least 90 days.

  1. Credit for Employer Differential Wage Payments to Military Personnel. This credit is available if you have an employee in the military reserves who are called to active duty for more than 30 days. If you continue to pay the employee all or part of that employee’s wages while he or she is on active duty, you can claim a credit equal to 20 percent of the payments, up to $20,000.
  2. Indian Employment Credit. This credit is available only if you hire an enrolled member of an American Indian tribe who both lives and works on an Indian reservation. If this is the case, you may claim a tax credit equal to 20 percent of the wages and health insurance benefits you provide the employee. The Indian employment credit ends December 31, 2021.

If you would like to discuss how to take advantage of these or other tax credits, please call us at 757-410-8030.