The Tax Accountant’s Toolbox By Vilensky & Company, LLC
Facing the IRS on your own can be daunting as the process is confusing for non-experts. Not to mention, whatever information you provide them during inquiries can be used against you if you aren’t careful. Fortunately, tax professionals like Vilensky & Company, LLC are here to help by representing you before the IRS. We provide focused representation, which means very little time is wasted when resolving a case before the IRS.
For a full understanding of how we go about representing clients before the IRS to ensure the process goes smoothly, we have provided insights into our tax accountant’s toolbox. Keep reading to see how we help people in trouble with tax authorities through our different services.
1. Taxpayer representation
Standing before the IRS in place of the client requires unique skills, knowledge of tax law, and the willingness to face the unrelenting agent that refuses to acknowledge proper procedures, law, regulations, or taxpayer’s rights. Taxpayer representation goes beyond just simple phone calls to the IRS to see what “they” suggest should be done to resolve the issue. Taxpayer representation is knowing what the best outcome should be for clients based on current tax law, regulations, and procedures.
2. Records reconstruction
The IRS has the authority to reconstruct the records that fit their goals but not necessarily the taxpayer’s goals. IRS agents tend to be overworked and, very few will go the extra mile for the taxpayer to ensure they get a fair reconstruction. That is not to blame the IRS as it is the taxpayer’s duty to keep good records. But, lacking the records and submitting to the mercy of the IRS agent is not always the correct response. Most records can be reconstructed and will always have favorable results for the taxpayer, at times saving thousands of dollars in taxes.
The IRS has been aggressively going after the non-filer. This is someone who has not filed a tax return in several years. The IRS will prepare a substitute for return and send the non-filer the bill. Standing behind the IRS notice is the largest collection agency with the most powerful tools. Non-filers can, whether willingly or unwillingly, fork over their hard-earned money to the IRS or pay for competent representation to get a fair outcome. They will still have to pay the tax that they should have paid those years ago, but it would certainly be less than what the IRS would propose.
4. IRS audits
The IRS sends a request for documents through the typical method, which is called an audit by mail. You receive a letter that says, “We need you to provide documents to support these deductions you took on your tax return that was filed two years ago. Oh, and we need it tomorrow.” IRS audits are not pleasant for the taxpayer. These audits bring stress and disrupt life. We can work with the IRS on the taxpayer’s behalf and, every time, save the taxpayer money that more than covers the fees for such audits.
5. Payroll issues
If we have one piece of advice for a taxpayer with payroll issues, that is: Don’t go it alone. Hire a competent professional to walk you through it and face the IRS for you. Payroll issues bring a myriad of problems if it is not processed correctly. With multiple agencies involved (i.e., IRS, SSA, State), payroll is challenging to reconcile. We like those challenges. IRS agents like to attach penalties if payroll doesn’t match the stateside or W-2s do not match what was reported on the tax return. Missing information returns pose a problem for businesses because of penalties and interest that eat away at the bottom profit margin. We have a simple answer: meet your payroll tax obligations every time. However, if a business finds this lacking and the IRS has sniffed you out, we offer a solution that will keep you in business to keep putting food on the table, not only for yourself but also for your employees.
What you need to do
a. Get your documents in order
We can produce a list of missing documents and walk a client through how to obtain them. This might require the preparation of certain information returns or simply looking through your records. Have proper documentation is essential when the intention is to win your case.
b. Don’t lie down and give up
Allowing the IRS agents to walk all over you is not the answer. Giving up is like writing a check from your bank account that brings the balance to zero, cashing in your retirement fund, or handing over your savings. Sometimes the IRS notices can be resolved with a simple solution. Other times it requires a lot of hard work and perseverance.
c. Open your mail
Don’t ignore the IRS letters or State taxing authority letters. Open them. The problem does not go away when ignored but almost always compounds. Almost always, there are deadlines involved. When a deadline is missed, the ball starts rolling that will begin to crush any financial success you’ve achieved to this point.
For more details about our services, reach out to us at Vilensky & Company, LLC. We are an accounting firm in Lewiston and Kamiah, ID, and we believe in the value of relationships. We view every client relationship like a partnership and truly believe that our success is a result of your success. We offer a diverse set of services if you’re seeking financial and tax help with your small to midsize business or personal financial and tax needs. We are also dedicated to helping you if you’re a small business owner or an individual looking for efficient strategies to reduce your tax burden and achieve your financial goals.