Assigned an IRS Revenue Officer? Hire a Tax Professional!

Owing a tax liability means that individuals are at a higher risk of falling into collections with the IRS. Optima CEO David King and Lead Tax Attorney Philip Hwang explain the risks taxpayers face when handling a tax liability on their own, as well as the benefits of hiring a tax professional to help you when dealing with a revenue officer. 

Got an IRS Notice? Get a FREE Risk Review with our Optima® TAX APP with Notice Analyzer.

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How Will the Inflation Reduction Act Affect Your Taxes?

With the recent passing of The Inflation Reduction Act, individuals who have unfiled tax years or unpaid tax debt may now expect an increase in IRS collection enforcement. Optima CEO David King and Lead Tax Attorney Philip Hwang explain how the Inflation Reduction Act can directly affect taxpayers and how to get compliant with the IRS.

Got an IRS Notice? Get a FREE Risk Review with our Optima® TAX APP with Notice Analyzer.

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What is IRS Penalty Relief and How Can I Qualify for it?

The IRS recently announced that it will be providing penalty relief to help struggling taxpayers affected by the pandemic. Optima CEO David King and Lead Tax Attorney Philip Hwang provide insight on what penalty relief is and how individuals can qualify for it if they are still dealing with an ongoing tax burden.

Got an IRS Notice? Get a FREE Risk Review with our Optima® TAX APP with Notice Analyzer.

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What is Payroll Tax?

Who is responsible for payroll taxes? CEO David King and Lead Tax Attorney Philip Hwang discuss everything you need to know regarding payroll taxes, including tips on what to do if you find yourself in trouble with the IRS.

Got an IRS Notice? Get a FREE Risk Review with our Optima® TAX APP with Notice Analyzer.

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Payroll Taxes: What they are and how to file

payroll taxes

It’s National Small Business Week in the US, which means it’s also time for small businesses to report payroll. As a business owner, you have the responsibility of paying payroll taxes. It’s important to keep in mind the benefits of e-filing and to consider using this method for your payroll tax return.

What are payroll taxes?

Payroll taxes are often referred to as employment taxes and include federal income tax withheld from employee wages, Social Security, and Medicare taxes. The Federal Unemployment Tax (FUTA) is also included, although it isn’t withheld from employee wages.

Benefits of e-filing payroll taxes

While you have the option of filing by paper, the IRS tends to respond faster to returns that are e-filed. Just as you would file an individual tax return, e-filing can prevent delays. E-filing is also much more convenient for making amendments to your return and tracking the status after you send it.

Paper returns often go missing, whether it’s through the mail or by getting lost in the huge backlog in the IRS office. In addition, any mistakes or missing forms would be much more difficult to catch and correct once you mail your return.

How to e-file your payroll taxes

Employers that feel comfortable and confident in their ability to e-file their taxes can do so through an IRS-approved software. The IRS provided a list of Authorized IRS e-file Providers to help you in your search for a tax professional should you feel that your tax situation is more complex.

Tax debt due to payroll taxes

Taxes can be very complicated and confusing, especially for businesses. That’s why at Optima, we provide tax relief services for both individual and business taxes. Give us a call at (800) 536-0734 for a free consultation regarding your case.

You can also download the Optima Tax App to help you understand what you should do if you received an IRS notice.

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Do You Qualify for IRS Penalty Relief?

Penalty abatements provide relief from IRS tax penalties. How do you know if you’re eligible? If you are looking to resolve your tax burden with the IRS, you may qualify for a penalty abatement. Optima CEO David King and Lead Tax Attorney Philip Hwang discuss the two most common circumstances that would qualify you for penalty relief.

Got an IRS Notice? Get a FREE Risk Review with our Optima® TAX APP with Notice Analyzer.

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May 16 Filing Deadline for Tax-Exempt Organizations

tax-exempt organizations

The IRS shared a reminder for tax-exempt organizations that have a filing deadline of May 16, 2022. Filing is mandatory, so if you need more time, you should request an extension as soon as possible.

Which Form should tax-exempt organizations file?

Tax-exempt organizations would file one of four tax forms for a return:

  1. Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF)
  2. Form 990-N, Electronic Notice for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
  3. Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
  4. Form 4720 Return of Certain Excise axes Under Chapters 41 and 42 of the Internal Revenue Code

Electronic filing for tax-exempt organizations

You should e-file to save time on processing and to avoid inevitable delays that occur when filing by paper. E-filing also reports your compliance with the IRS.

However, for tax-exempt organizations filing a Form 990, 990-EZ, 990-PF or 990-T for 2021, it’s mandatory to file electronically.

For organizations filing Form 990-N, the IRS website states, “organizations eligible to submit Form 990-N must do so electronically and can submit it through Form 990-N (e-Postcard) on IRS.gov.”

Requesting an extension for tax-exempt organizations

Should you need additional time to file, you can request a 6 month extension by filing  Form 8868, Application for Extension of Time To File an Exempt Organization Return. While this form allows you to file later, it does not push payment due dates if you owe the IRS.

Owing the IRS as a tax-exempt organization

Optima Tax Relief takes on clients with both individual and business tax debt. Give us a call for a free consultation today at (800) 536-0734.

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What to do if You Missed the Tax Filing Deadline

filing deadline

The end of tax season was officially April 18, 2022, which means the IRS is diving into enforcements and catching up on notices. What should you do, and what should you expect if you missed the filing deadline?

One-Time Penalty Relief

For late filers who have a history of filing and making payments on-time, you may qualify for one-time penalty relief. One-time penalty relief could reduce your owed balance by removing penalties such as interest. It’s also referred to as penalty abatement.

What Happens to Your Refund When You File Late?

Although your return is late, you should still file your taxes as soon as possible. If you are expecting to receive a return, but you filed late, you may have some of the balance offset and receive a smaller refund.

If you qualify for one-time penalty relief, you will not owe a balance and you can expect to receive the full refund.

Because you filed late, your refund will likely be late as well. The IRS has a huge backlog and the returns that are e-filed on time are top priority. Filing by paper and filing late will increase the likelihood of delays.

Penalties for Filing Your Taxes Late

Penalties for late filing range based on how late you file. Filing a few days late could result in interest on your balance. You will continue to accrue interest daily until you file, or the IRS will take more serious enforcement action.

Some of these more serious actions include levies and account liens, or even garnishing your wages to pay the balance owed.

Tax Debt Relief

Cases of tax returns that are years behind, or accounts that have been levied may benefit from professional assistance. Tax debt relief is available for many cases, in the form of payment agreements, offer in compromise, penalty abatement, and innocent spouse relief.

Call Optima for a free consultation today at (800) 536-0734. Our tax professionals may be able to assist you with your case.

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IRS Unclaimed Tax Refunds

tax refunds

There were about 1.5 million taxpayers that didn’t file a return in 2018. The IRS announced that it has $1.5 billion in tax refunds from 2018 and gave taxpayers until the end of the season to claim their money. If you missed out on claiming your refund, there are steps you can take to make sure you claim other refunds from 2019 and on.

How to claim an old tax refund

Taxpayers have a three-year deadline to claim unpaid tax refunds for federal taxes. While there are instances where it may not be required for you to report your income, filing helps the IRS ensure that you receive any refunds you may be eligible for.

The first thing you should do is make sure that you filed for the year in question. If you missed the filing deadline, you should still file as soon as possible to avoid IRS enforcement. To file a return from 2018 and prior years, you’ll have to file by paper. The final page of your current Form 1040 will tell you which IRS center to send your return to, as it may differ based on your state.

Low and moderate-income families could be eligible for larger refunds by qualifying for Earned Income Tax Credit. This credit is based on the number of children in a household and filing status.

Returns for 2019 and on can be e-filed.

What happens to your refund if you owe back taxes?

The refund is generally applied to any amount that you owe to your state or the IRS. It can be used to offset other overdue balances such as child support and student loans as well.

Optima Tax Relief assists clients with large tax liabilities reach a resolution. Give us a call for a free consultation today at (800) 536-0734.

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Where is My Tax Refund?

The IRS backlog has caused delays in millions of tax refunds, but not all refunds are delayed due to the pandemic. Lead Tax Attorney Philip Hwang and CEO David King discuss how you can avoid refund delays when you file and how your refund may be affected by various circumstances.

Got an IRS Notice? Get a FREE Risk Review with our Optima® TAX APP with Notice Analyzer

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