There are very few sure things in life. Taxes cannot be avoided. Despite the definitive, many people still find themselves owing the government thousands of dollars. They might go for years without paying a single, tax dollar. Penalties and late charges add up into astronomical figures. It’s only natural to ask why people fall behind on their taxes. Take an in-depth look at society and its relationship to taxes so that you have a better understanding.

Lack of Funds

People run into tax problems when they don’t have the funds to cover the amount. They might feel shame or frustration. Paying for everyday basics, such as groceries, may be the biggest concern. The taxes are put on the back burner until better days arrive.

If you’re having a cash-flow problem, speaking directly to the IRS or Internal Revenue Service is your best course of action. They can create a payback schedule that works with your budget. Paying no taxes at all will only compound the problem.

Forgetting to File

Although it may seem implausible, some people do forget to file their taxes. These individuals might work abroad or at charitable institutions. They don’t intend to skip one or two years of tax payments. The time frame just got away from them.

Forgetting to file your taxes isn’t an excuse, however. The government will collect the funds at some point. It’s always a better idea to pay the taxes as soon as they’re recalled to memory.

Failing to File

It’s possible that some adults don’t know if they should file taxes in the first place. Owing taxes can be a confusing situation. Your job probably withholds a certain amount from each paycheck. Thinking that the taxes are covered and no filing is necessary can happen.

Most full-time workers must file their taxes. It’s a federal law that’s upheld in a court of law.

Dealing with Extenuating Circumstances

People fall behind on their taxes because of a few, common situations, such as:

• Death in the family
• Divorce
• Unemployment
• Illness

These extreme circumstances make it difficult for taxpayers to remember the filing date or to follow the forms’ instructions. They may not be physically able to complete the forms either. Ideally, the taxpayer should seek out professional help so that the funds are covered as necessary. At that point, they can focus on their extenuating circumstances.

Being a Cosigner

A specific instance where a taxpayer has trouble paying their owed taxes is when they’re assigned as a cosigner. You may have cosigned a loan with a loved one. The family member can’t pay back the loan so it’s now your burden to bear. All of your funds, as a result, are funneled to this loan.
If you owe taxes, there’s no money to allocate toward them. Your paycheck might be under garnishment too.

Becoming Too Busy

Falling behind on your taxes may be a case of a disorganized lifestyle. You don’t have the time to fill out the forms or figure out the credits. Throwing up your hands in frustration and scrapping the entire process is an excuse shared among many people. These adults must change their perception of taxes and pay them as needed. They’ll only save themselves from frustration in the end.

Mistaking Credits on Tax Forms

There are hundreds of credits and exceptions on a standard, tax form. Some people might be overwhelmed at the selection, and they end up choosing a credit that they don’t qualify for in the first place. These taxpayers end up filing the forms, but they end up owing more taxes in the process.

Mistakes on tax forms can cost taxpayers dearly. Professional help might be the safer route to take.

Misunderstanding Estimated Tax Payments

If you’re a self-employed person or run a business, paying estimated tax payments is part of your financial world. Every quarter, you send a check payment to the government to cover your taxes. However, some taxpayers don’t understand their estimated payments. They may underpay them or forget altogether. The government will request the funds if they aren’t paid by the due dates. Business owners may want to consult their accountants to verify which payments are currently due.

Confusing Withholding Structure on Paychecks

The simplest way to pay your taxes through the year is by withholding them in a paycheck. You never see the funds. They’re simply tucked away for the government’s use. Be sure that you’re withholding enough funds to cover your taxes. Filing a form with your employer can make the process a simple one. You can withhold any amount that you desire.

Working With Tax Group Center in the Event You Fall Behind on your Taxes

If you haven’t paid taxes or received a bill in the mail, you need to deal with the situation as quickly as possible. Tax bills won’t vanish overnight. You must pay part or all of the taxes owed. They must be paid in a reasonable amount of time.

Tax help is right around the corner. Tax Group Center offers a mixture of both tax preparers and lawyers. We understand the legalities behind unpaid taxes. Our tax professionals work directly with the IRS to defend your position. We also protect your rights so that the repayment agreement is within your income bracket.

Your taxes pay for core services in your neighborhood, from paving roads to supporting the fire department. Consider your taxes as funds toward a better tomorrow. Paying them helps everyone with a better life than before.

Every year, Americans must submit an income tax return along with any taxes that they may owe. However, there may come a time when you can’t afford to pay a balance owed for any variety of reasons. For instance, a sudden job loss or an unexpected medical bill could make it impossible to pay the IRS on time. Fortunately, there are ways to resolve the situation in a manner acceptable to the government.

Ask for an Extension to File

The first step that you can take is to ask for an extension to file your taxes. While this doesn’t give you an extension to pay taxes owed, the penalty for failure to file is much larger than failing to pay your taxes. If you have paid at least 90 percent of your estimated taxes, you may not be subject to any additional penalty. The same is generally true true if you owe less than $1,000. This extension is available to all taxpayers with no questions asked, and it will not increase your odds of being audited.

Ask for an Installment Agreement

If you still don’t have enough money to pay your taxes by October, it may be possible to ask for an installment agreement. The agreement gives you another 60 to 120 days to pay whatever balance that you owe to the government. However, if you fail to pay the balance in full, the government could take steps to garnish your wages or put a lien on assets.

Make an Offer In Compromise (OIC)

An OIC is your way of telling the government that you have no way to pay your past due tax balance in full. Like any other creditor, the government would rather have some of its money rather than nothing at all. Therefore, if you can show that you legitimately don’t have assets to sell or access to credit to make payments, the IRS will take less than what is owed.

The extent to which the agency will forgive that debt depends on the specific circumstances in your case. It is worth noting that you should make a serious offer that you intend to follow through with in good faith. The IRS is likely to reject a frivolous offer or one that doesn’t adequately reflect your ability to pay.

Pay With a Credit Card

The IRS does allow you to pay taxes with a credit card. This is done through third-party payment portals that you can access from the IRS website. There are service fees that you will need to pay on top of the balance owed. However, these fees can be deducted from your tax return. It is important to note that tax debt is rarely discharged in bankruptcy court, and putting a tax payment on a credit card won’t change that.

Pay Whatever You Can

If you can’t pay the full balance on time, you can choose to make a partial payment when filing your return. While interest will still accrue on the outstanding balance, which means that you want to pay the rest of what you owe as soon as possible. However, making a payment or payments in good faith increases the odds that the government will hold off on levying harsher penalties.

Consult With a Tax Expert

A tax professional may be able to help you decide the best course of action if you are unable to pay your taxes for any reason. He or she could help you craft an OIC that the government is likely to accept. If your adviser is an enrolled agent, he or she could also negotiate on your behalf with the IRS to help reduce the amount that you owe. Negotiating with the federal tax authority could also reduce the odds of a lien or wage garnishment. In some cases, it is possible to have interest or other fees waived or reduced to make it easier to pay an outstanding balance.

Ideally, you will plan to have enough money withheld throughout the year to avoid being in debt to the IRS come tax time. While owing the government money can be a stressful situation, there are ways to settle your debt in a timely and convenient manner. Understanding those options can prevent your wages from being garnished or assets seized by the IRS.

While organizing just about anything in your life can become a daunting task, there are some that can truly change the way you live. The organization of your finances can help you and your family stay on budget, pay bills on time and do your taxes quickly, just to name a few. The professionals at Tax Group Center have learned a thing or two when it comes to organizing finances and we’d like to take some time to share a few tips.

Now the truth is, there really isn’t any “secret” to organizing your finances. You may find that the most difficult part is building up the courage to drag out that old shoe box or that dusty stack of papers in the corner. The rest of the organization of finances is all about a method to the madness.

The first thing you’re going to want to do is to create folders or stacks by category. Here is a list of recommended categories that we find to be effective:

• Tax returns
• Bank statements
• Income
• Personal
• Housing
• Transportation
• Medical
• Other

If you have printed copies of your tax returns from previous years filed, such as form 1040, this is a great piece to keep on file. Keeping track of how you filled out your previous tax return can help save you time and effort. However, keep in mind that tax laws regarding credits, for example, can change, not to mention your income and assets.

Bank statements are great for keeping track of your account balances, credit card history, money market accounts and more. It’s best if you can organize this category further by date, keeping the most current statement on top. For the purposes of applying for a tax resolution program such as the Offer in Compromise, you’ll only need bank statements for the last three months.

Income can be tracked by retaining copies of your pay checks/pay stubs. Again, for the purposes of applying for a tax resolution program, it is recommended that you keep copies of the last four consecutive pay stubs/pay checks.

The personal category applies to personal expenses such as grocery receipts and other types of personal care. Tracking your personal expenses will give you a better idea of how your money is being spent and from there, you can determine if you have room to cut back or increase your spending. Personal expenses are also factored in when determining the right tax resolution program.

Another important expense that may want to consider tracking is that of your housing. This would include a copy of your mortgage statement, utility bills, apartment contract, etc. If it’s related to your immediate living arrangement, include it in your housing section. Creating sub-sections for this may be necessary if you have several kinds of documents.

Transportation is another important expense we recommend you to file. You may want to create subfolders for gas/maintenance receipts, insurance or even public transportation tickets. The IRS uses National Standards when determining your transportation expenses for a tax resolution program. You can find out more by visiting www.irs.gov or call a Tax Group Center representative.

For the medical category, be sure to keep information on file regarding your health insurance and out of pocket medical costs. You may also find it useful to keep track of your hospital bills and pharmacy receipts. If you are seeking penalty abatement due to an illness or injury, the documents in your medical category will be used as proof in your case.

Finally, we have included everything else into one remaining category known as “other”. You may find that your unique financial situation calls for several additional categories as opposed to just one. The other category contains any other expenses and assets that you will need to access. Assets may include life insurance policies, mutual funds, stocks or 401(k). Expenses would be things like alimony, court ordered payments, or child support.

Now that you have all of your documents organized into categories, it’s time find something that will keep them all together. If it’s all you have, it’s okay to place them back in that old shoe box, just as long as you keep your documents separated by categories. You can do this using paper clips or separating sections with post-it notes. If you have some room or extra cash, it’s highly recommended that your purchase a small file cabinet or even just a 3 ring binder with dividers. You can even take your organization digital by entering your financial information into an Excel spreadsheet or other personal finance program.

When filing an individual tax return, use the correct version of the IRS 1040 forms. It is essential to educate yourself about income restrictions and report all earned income.

Report All Income Sources

The main sources of income to be reported on an individual tax return are:

• Wages, Salaries, Tips
• Self-Employment Income
• Interest

These are additional, common sources of income that also need to be reported:

• Dividends
• Capital Gains
• Unemployment
• Pensions
• Social Security

Beyond the most common sources of income, here are some additional sources that must also be reported with your income:

• Advances
• Bonuses and awards (i.e. vacation trips awarded for meeting sales goals)
• Severance pay

1040 Forms for Individual Taxes

If you are an individual filing taxes, be sure that you know about the 1040 series of income tax return forms, what each of these IRS forms are for, and when to use them.

• Form 1040 (“long form”) is the basic IRS form which is used by individuals to report their income to the IRS.
• Form 1040A (“short form”) is limited to taxpayers with taxable income below $100,000 who take the standard deduction instead of itemizing deductions.
• Form 1040EZ (“easy form”) is limited to taxpayers with taxable income below $100,000 who take the standard deduction and have no dependents.
• Form 1040-X is specifically for correcting mistakes on 1040 forms. There is a section to reference the amounts on your original IRS return and a section to correct your mistakes.
• Our team of CTEC Certified Tax Consultants, Tax Attorneys, CPA’s and Enrolled Agents at Tax Group Center provide tax preparation services for individuals including:
• Form 1040, 1040A, 1040EZ, 1040EZ-T, 1040NR and 1040NR-EZ, 1040X
• Schedules A, B, C, D, E, F, H, J, M, R, SE

If you need help preparing your tax returns, call Tax Group Center at:  (877) 605-7635.

Business owners have responsibilities to the IRS and State beyond filing their personal income taxes; they must also pay business taxes on behalf of their company. Just as individuals sometimes have difficulty paying their income taxes to the IRS/State, businesses owners, both large and small, are sometimes in need of business tax services and business tax return filing.
Here are some types of business taxes for which employers are responsible:

• Self-Employment Tax – This tax is for people who work for themselves (such as independent contractors).
• Payroll Tax – This tax is for business owners who pay employees.  It is the federal tax withheld from the wages of employees that must be paid to the government.
• FICA Tax – This is the Social Security and Medicare tax that is withheld from employees.  It is paid to the government along with the payroll taxes.
• Sales Tax – This is paid by retailers and sellers of tangible goods.  This is usually collected at the time of the sale.  People see this type of tax every day when they purchase goods
• Estimated Tax – If you expect to owe $1,000 or more when you file, you must make quarterly estimated tax payments to cover the tax you expect to owe.  Also, if you owed tax in the previous year, you are required to make estimated tax payments.
• Keeping current with your business taxes is vital for any business owner.  Penalties for incorrect or late filings on corporate taxes can add up quickly and put your business in jeopardy.  Make sure you are working with a qualified tax advisor who provides you with high quality business tax services.  If you find yourself having difficulty paying your business taxes to the IRS/State, contact Tax Group Center today, at:  (877) 605-7635.

Starting and running a successful business is challenging enough. Keeping track of all the forms you need to file with the IRS/State to qualify for business tax deductions and to stay current on your corporate taxes can be overwhelming. Not to worry, we’ve highlighted the key tax forms you need to be aware of here:

Form 940 – Employer’s Annual Federal Unemployment (FUTA) Tax Return.  This should be filed with the IRS annually under the Federal Unemployment Tax Act, and covers unemployment insurance and job service programs. Furthermore, the money is put into a pool to cover a percentage of unemployment benefits.

Form 941 – Employer’s Quarterly Federal Tax Return.  This should be filed with the IRS each quarter, and is used to report the amounts of tax withheld from employees’ wages during the quarter.  Any business with employees must file this form.

Form 944 – Employer’s Annual Federal Tax Return.  This should be filed annual in replace of the quarterly form 941.  Only file this return if you have been notified by the IRS in writing to file this form.

Form 2553 – Election by a Small Business Corporation.  This form is for corporations who want to be taxed as an S-corporation.  This election must be made by the third month of the tax year to be considered a valid election.   S-corporations can pass income and losses through to their shareholders.  Corporations who wish to qualify as an S-corporation should not have more than 100 shareholders.

If your business has employees, these forms must be filed:

Form W-4  – Employee’s Withholding Allowance Certificate.  All new employees are required to fill out a W-4 and submit it to you. Make sure you pay close attention to your employee’s W-4’s, which will assist you in calculating how much tax to deduct from employee’s salaries.

Form W-2 – Wage and Tax Statement.  At the end of the year, business owners must send a W-2 form to each employee and to the IRS. The form will show the employee how much he/she made, and the taxes withheld.

Form 1099 – Income Other Than Wages.  If you paid anyone who is not an employee more than $600 during the year, you must issue them a form 1099-Misc to report the income paid during the year.

Failing to file these forms correctly and in a timely manner can result in unnecessary penalties.  Stay up to date with your business taxes and make sure you are taking advantage of business deductions by working with Tax Group Center.

Failing to file these forms correctly and in a timely manner can result in unnecessary penalties.  Stay up to date with your business taxes and make sure you are taking advantage of business deductions by working with Tax Group Center.

You could end up owing the IRS taxes and penalties if your IRS tax returns are not filed correctly or if you do not file your return at all. Not only can the IRS assess penalties on your unpaid taxes, they also charge interest on the total of both the back taxes and penalties, which will add up quickly if not addressed.

For instance, if you file a tax return late, the IRS will charge 5% of the taxes you owe each month, up to 25% of what you owe that year. The interest that the IRS charges is calculated from the total of the original amount of the tax due plus the penalties. Interest will continue to accrue until the total amount of tax debt owed becomes unmanageable. If you can avoid the penalties, you will avoid being charged more interest as well.

If you find yourself in the unpleasant position of having the IRS assess penalties on your tax debt, here are a few things to keep in mind and some steps you can take.

Key things to keep in mind when dealing with the IRS

• Resolution can be a complicated and time-consuming process.
• Appropriate wording is crucial when it comes to abatement of penalties.
• Tax professionals familiar with IRS collection procedures can make all the difference when dealing with the IRS.

Steps you can take

• Fill out IRS form 843, Claim for Refund and Request for Abatement.
• If you have any special circumstances that created your tax debt, such as health issues, divorce, a death in the family, or any other special circumstance, share that in writing with the IRS on the penalty abatement form.

If you have ballooning tax debt, due to excessive penalties and compounding interest, contact the Tax Group Center for a free consultation and find out whether penalty abatement is an option for you.

Don’t have time to file your taxes?  Let Tax Group Center help you get on track with their tax preparation services.  TGC uses efficient bookkeeping systems and provides easy-to-use tax organizers for clients to make the process convenient and most importantly, reliable. These forms along with records of your financial transactions allow the professionals at TGC to file your returns properly. Professional tax preparation allows you to remain compliant with the IRS and minimizes the worry of potential collection activity against bank accounts, wages, property, etc.

Many taxpayers fall behind in their filings causing a multitude of problems. Delinquent returns can result in criminal status, large liabilities, and substitute fillings; in which the IRS files the returns with 0 deductions and nothing in the taxpayers favor. These filings can be financially disastrous. Taxpayers with substitute filings will not receive credit for dependants, housing, or medical bills. The professionals at Tax Group Center amend these returns and help lower the liability to the amount you actually owe.

Tax Group Center provides clients with tax organizers; easy to follow documents which greatly facilitate the compilation of necessary information. These documents, in conjunction with tax specific limited power of attorney ( forms 8821 and 2848), allow our CPA’s to file returns up to 10 years delinquent. Tax Group Center uses account transcripts to recreate client’s financial histories for the last 10 years, gaining an exact picture of how and when a taxpayer accrued liabilities.

Bookkeeping is one of the key tools used with Individual and Business Tax Preparation services at TGC.  In many cases, preparing accurate returns without this isn’t possible. Daybooks such as journals and ledgers are used to ensure that all transactions (purchases, sales, receipts, payments, etc) are recorded.

Keeping track of expenses and income often become difficult for those who own businesses or have not filed in years.  TGC’s common methods of bookkeeping include the Single-entry bookkeeping system and the Double-entry bookkeeping system. The primary bookkeeping record in single-entry system allocates the income and expenses to various income and expense accounts which is used for many small businesses. Double-entry bookkeeping is also used to record each transaction twice, using debits and credits. Once the account is balanced, financial statements are prepared and reviewed to generate an accurate return.

Why hesitate? Tax Group Center is the “go-to” company for honest results! Call now to reach a qualified CPA who will make you feel comfortable and gather the correct and necessary information. The Tax Group Service Team insures that you will receive an accurate return in a timely fashion. Our “3 S” system, Service, Solution, and Success is the key to financial freedom. Call TGC and let our tax professionals provide you with financial freedom today!

Questions? We’ve got answers.
Call us at (800) 746-1322 for top notch service

Did you know that one-third of employees owe or end up owing money to the IRS or State Tax Authority? Many of these employees have little or no means to pay their debts and as time passes, the situation only gets worse. In fact, the number of employees with tax issues is steadily increasing.

Your employees’ tax troubles can and will hurt your organization. Serious consequences result when IRS or State debts go unpaid. Your employees could face wage garnishment–funds seized from paychecks. Your employees could face a bank levy—funds seized from bank accounts. Both as a result of unpaid taxes or unfiled income tax returns.

As a result of these collection activities, employees may experience stress, anxiety and ultimately their job performance will suffer. Tax Group Center can help. We specialize in all areas of tax services for both the IRS and State. We release wage garnishments and bank levies, prepare tax returns, and file resolution programs on behalf of our clients.

When employees remain in compliance with the IRS and State, they can reach some peace of mind. The ETS Program was designed to provide effective help in a time of crisis and increase awareness of available services. Once your employees are able to resolve their tax issues, their improved financial health will lead to an increase in productivity, higher morale, and financial security.

Tax Group Center achieves results through the 3 S System: Service; Solution; Success. Our expert staff includes CTEC Certified Tax Consultants; Enrolled Agents; Tax Attorneys and CPAS. We’ve made it our mission to strive to empower our clients to achieve financial strength.

There is no cost to employers who wish to enroll in the ETS Program and their employees will receive 30% off tax services’ fees.

In addition to tax services, Tax Group Center also offers tax preparation, payroll tax help, merchant account services and life insurance.

If you’re interested in the Employee Tax Services Program or any other services we offer, call our team of tax specialists today to learn more or visit our website at www.taxgroupcenter.com.

Check out our ETS Program SlideShow:
http://www.slideshare.net/taxgroupcenter/tax-group-center-employee-tax-s…

TGC. We’re all about our clients.
Every tax relief company will tell you how they can negotiate a settlement on your behalf. But Tax Group Center is about so much more than tax relief. Our goal is to guide our clients to financial freedom and that goes way beyond acceptance into a tax resolution program.

Service. Solution. Success.
We’re serious about our mission. By constantly seeking greater knowledge to share with our clients and working to improve the way we serve you, you can be confident that the solutions we’re providing will lead to your financial success.

We’re Striving to Lead the Tax Services Industry
It is our goal to position ourselves as an authority on many tax and financial topics. Many of our clients are in critical situations when they reach out to us. We want to assure you that we’ve got the experience and know how to get the job done right.

Nationwide Service
Tax Group Center is licensed in all 50 states and our “tax season” lasts all year long. Whether you’re interested in accounting services, tax preparation, tax resolution or any of our services; we can help no matter what state you live in.

Expert Professionals
Only the most qualified and experienced CTEC Certified Tax Consultants, Enrolled Agents, Tax Attorneys and CPAs work for Tax Group Center. We’re committed to connecting you with professionals who have a passion for their trade and continually expand their knowledge to provide you with the highest level of service.

Dedication
Our professional staff is dedicated to helping our clients reach their goals. Whether your goals are personal or business related, we’ll be there to implement a plan and make it happen. We’re not satisfied until you’re satisfied.

Questions? We’ve got answers.
Call us at (800) 746-1322 for top notch service