“Oops, I made a 1099 typo!” – Sound familiar? Don’t worry; you’re not alone! Small business owners juggle a lot, especially when working with contractors. Mistakes happen, and correcting a 1099 can feel like one more headache in an already full schedule. But good news! Fixing a 1099 is easier than you think – and Edgewater CPA Group is here to help guide you step by step.
Have you ever had a heart-stopping moment when you saw “IRS” on an envelope in your mailbox? You’re not alone. At Edgewater CPA Group, we understand how intimidating it can feel to receive an unexpected notice from the Internal Revenue Service. But fear not! This guide is here to demystify the five IRS notices you need to know about as a small business owner. We aim to help you keep calm, informed, and prepared for any tax-related surprises that might come your way.
An OIC is an agreement between a taxpayer and the IRS that allows for the settlement of outstanding tax liabilities for less than what is owed. This type of agreement can be a great option for taxpayers who are unable to pay their full tax debt, as it allows them to make one lump sum payment (or series of payments) in exchange for settling their debt. When submitting an OIC, taxpayers must provide proof of their financial situation and demonstrate that they cannot afford to pay the entire balance of tax owed. Taxpayers must prove to the IRS that the Reasonable Collection Potential (RCP) – the total amount of tax the IRS can reasonably expect to collect over the remaining time on the tax collection statute – is less than the tax owed. Taxpayers will need to provide documents to prove that their RCP is less than the tax owed and … Continued
An Installment Agreement is nothing more than an agreement with the IRS to pay the tax owed over an extended timeframe. Installment Agreements are an excellent way to stay compliant with the IRS if a taxpayer cannot pay their taxes when they are due. The IRS is not really interested in seizing a taxpayer’s assets. The IRS would much rather work with the taxpayer to pay his or her taxes over time. The IRS has four types of Installment Agremeents: Guaranteed Installment Agreement, Streamlined Installment Agreement, Financially Verified Installment Agreement, and a Partial Pay Installment Agreement. Which payment plan is best for a taxpayer depends on the facts and circumstances of the taxpayer’s case. There are different rules governing different payment plans. Knowing the rules of each plan can help a taxpayer pick the best plan for them. Guaranteed Installment AgreementThe first type of payment plan is an “Guaranteed Installment Agreement”. This … Continued
As with any tax resolution case, strategy plays an important part in resolving the tax debt. There are many factors that go into devising a plan to get a taxpayer compliant. Once such tool that can be very effective is for a taxpayer to be deemed “uncollectable” or “CNC (Currently Not Collectable – in IRS jargon)”. What does it mean to be deemed “uncollectable” by the IRS. Taxpayers can be placed in CNC status if their equity in assets plus their income is not sufficient to cover IRS allowable expenses. When a taxpayer is deemed uncollectable, the taxpayer’s tax accounts will be marked so that the IRS does not take any levy action against them. Being deemed “uncollectable” does not resolve the tax issue but it does benefit the taxpayer in a couple of ways: The 10-year collection statute on assessed taxes continues to runThe IRS will not take collection action against the … Continued
As a small business owner, it’s important to stay on top of your taxes and make sure you’re not making any costly mistakes. If you’re not careful, you could end up paying more in taxes than you need to or even getting audited by the IRS. When you turn to the team at Edgewater CPA Group, we can help mitigate your chances of this happening. Still, let’s look at three common tax mistakes that small business owners often make and how to avoid them.
In the light of the COVID-19 pandemic, the IRS has extended the due date for filing taxes to July 15. This gives businesses and individuals an additional 90 days to file and pay their 2019 taxes. At Edgewater CPA Group, we’re happy to do tax preparation for small businesses to make sure you have all the needed documentation in order by the new filing deadline. Here’s what you need to know about this extension.
Cryptocurrencies, such as Bitcoin and other internet-based currencies, are new to the world of finance. Although some CPAs might balk in dealing with clients who trade or mine these currencies, Edgewater CPA Group is ready for it. Laws regulating cryptocurrencies are new, and the market continues to change, but here are three things to keep in mind at tax time.