I haven’t filed my personal or corporate taxes in a couple of years because I got lazy with bookkeeping. I don’t think I owe much, but now I’m seeing all these ads for tax relief and fresh start programs. Are these worth looking into, or is there a better way to handle this?
Those programs are expensive and don’t deliver great results.
Ripley said:
Those programs are expensive and don’t deliver great results.
What do you think I should do? Should I try calling the IRS and work it out myself?
Ripley said:
Those programs are expensive and don’t deliver great results.
What do you think I should do? Should I try calling the IRS and work it out myself?
You’d be better off finding a local CPA to help you get everything sorted out.
Avoid those tax relief companies—they charge a lot and don’t really do much for you. Here’s what you should do:
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File all your missing returns. Usually, the IRS requires you to file the last six years to be compliant.
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If you owe money after filing, you can set up a payment plan for all the years combined. The IRS won’t reduce your debt unless they believe they can’t collect the full amount based on your finances.
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If liens are involved, you may be able to get them removed if you meet certain conditions and make payments.
It’s best to get help from a professional like a CPA, Enrolled Agent, or tax attorney. You can find one through:
- IRS Directory of Credentialed Preparers
- National Association of Enrolled Agents
- Your state board of accountancy or bar association
- A Low Income Tax Clinic
The “Fresh Start” initiative isn’t new—it’s just a program to help people get back on track with their taxes. The “pennies on the dollar” stuff you hear about is mostly marketing. If you’re considering an Offer in Compromise (OIC), use the IRS pre-qualifier tool to see if you might qualify: OIC Pre-Qualifier.
If you don’t qualify for that, you can look into penalty abatements, installment agreements, or other options. A professional can guide you through these.
Get your books in order first so you know what’s really going on. Without proper records, you won’t even qualify for those programs.
Hollis said:
Get your books in order first so you know what’s really going on. Without proper records, you won’t even qualify for those programs.
I’m terrible at bookkeeping and feel stuck. There isn’t much activity in the two years my corporation was active, so I’m sure someone experienced could sort it out quickly.
@Chen
Getting your books done is step one. Without them, you’re guessing what you owe, and you might end up paying taxes on gross income instead of net.
You should look into hiring a CPA, an IRS Enrolled Agent, or a tax attorney. Get your taxes filed first, then explore your options for repayment or relief.
Quincy said:
You should look into hiring a CPA, an IRS Enrolled Agent, or a tax attorney. Get your taxes filed first, then explore your options for repayment or relief.
It sounds like you need guidance. Ask someone you trust to recommend a good CPA. They can help with everything from bookkeeping to filing your taxes. The longer you wait, the worse it’ll get. Once you’re caught up, you’ll feel so much better and can even work with the CPA to plan ahead and save money.
Corporate taxes need to be filed by a CPA. Get your income and expenses organized and figure it out. And yeah, those tax relief companies are pretty useless.
Step one: file your taxes. Without that, those programs won’t help.
How hard is it to file corporate taxes? Do you usually handle it yourself or hire someone?
Peyton said:
How hard is it to file corporate taxes? Do you usually handle it yourself or hire someone?
It’s hard because my books aren’t organized. There’s not much activity for the two years my corporation was active, so I’m hoping it wouldn’t take long for someone who knows what they’re doing to sort it out.
@Chen
There are affordable bookkeeping tools you can use. The tricky part is categorizing everything correctly. Are you up to date on paying franchise taxes? Did you file the new beneficial ownership interest form?
@Peyton
I haven’t filed my franchise tax yet. Last I heard, the BOI requirement was being challenged in court, so I held off on it.