Back Taxes Owed, Tax and  Accounting  Services

You have filed your tax returns but didn’t have the money to pay what was owed. You may think, “Oh well – I will catch up next year.” Not too bad, except when it happens year after year after year. Unfortunately, this happens all too often.

Before you know it, you find yourself several years in arrears and suddenly there is a notice from the IRS, stating that you owe this un–confrontable amount. It’s truly amazing how fast tax penalties and interest add up.

Now, what do you do!??? You sign up for a Torchlight Tax Analysis!!

The Torchlight Tax Analysis

Here is how we do it at Torchlight Tax:

  • We sit down with you and do a free consultation (in-person, on-line, or over the phone).
  • We make a contract with you as to what we will do. This is our Engagement Letter.
  • We have you sign an IRS Form 2848 IRS Power of Attorney and pay a reasonable fee.
  • Then we pull all your IRS Records with our special tax program.
  • If you have unfiled tax returns, we file them for you. This would be a separate fee.
  • Once all required unfiled tax returns are done, we have you fill out a financial questionnaire. This comes to us, not the IRS.
  • Our advanced software marries up your transcript data with your financial data. We review it and may ask you additional questions.
  • Based on the software and our expert analysis, we advise you on your best IRS Settlement Option. This completes your Tax Analysis.

This allows us to accurately advise you on what to do. Here are some possible scenarios that could come from a Tax Analysis.

  • Maybe the IRS Statute of Limitations on collections is almost up, and in a certain period of time all of your tax liability goes away. This is date is called the CSED (Collection Status Expiration Date) This does occur. You see the IRS has 10 years to collect after a return is filed. I had a client who had $40,000 dollar in tax debt from years ago. I told her in six months her IRS debt would disappear. The IRS had lost track of her. I also told her to contact me immediately of the IRS contacted her. They did not. Six months later the debt disappeared!

  • Maybe you are eligible for an Offer In Compromise (OIC), where we make an offer to the IRS and if they accept it, your tax debt is gone. You will have to keep filing and paying your taxes for five years, or the debt can come back. Still, not a bad deal!
  • Maybe you are eligible for Penalty Abatement. We get some (or all) of your penalties canceled, and can then work out an affordable payment plan.
  • Maybe we can get you onto a “full-pay” installment agreement. After we get all possible penalties abated, the IRS allows you to pay off your debt over several years.
  • Penalties and interest accrue at a lower rate. It is called “full-pay” because the IRS calculates you will pay off the full amount before the Statute of Limitations expires. Often the IRS will accept 1/72 of your entire debt as a monthly payment amount. This is not guaranteed.
  • Maybe we can get you a Partial Pay Installment Agreement (PPIA). In this scenario, the IRS accepts a payment amount that will not pay off the debt in full before the IRS Statute of Limitations on Collections expires. On the expiration date, the IRS forgives the debt and that is that. However, the IRS can review the agreement (and usually does if your income goes up). If your income does not go up, most likely your debt will fall off on the expiration date. One of my clients, age 78 had a $1.8 million dollar tax debt. The IRS eventually accepted him on a $75 dollars per month PPIA. (There were lots of phone calls with the IRS in the interim. This is not a representation cycle you would want to have done on your own.)
  • Maybe we can get you approved for Currently Not Collectible (CNC) status. In this status, the IRS agrees you are not able to pay your back tax debt, and they put your tax file away and check back every couple of years to see if you are making more money. Penalties and interest continue to accrue, but if nothing happens to change your CNC Status, the CSED eventually arrives, and your tax debt disappears.
  • These IRS Tax Debt Solutions do not just happen. We do a Tax Analysis to determine your best option. Our verbal recommendation of your best option completes your tax analysis.

Once the tax analysis is done, we can tell you our fee for the next step, do a new contract (another engagement letter) and implement our resolution handling. Because we have done a Tax Analysis, we can realistically estimate our chances of success, collect a fair fee, and proceed with our handling.

If you do have back taxes owing, contact us. Call us at 1-877-758-7797 or 702-463-1818 or email us at info@TorchlightTax.com. We can transfer your call to a branch office near you or help you directly from our central office. Free consultations are available.

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    Why Torchlight Tax

    Many people do not know how a professional tax and accounting firm differs from a bookkeeper or tax preparer. The main difference when working with a professional tax and accounting firm, such as Torchlight Tax, is that our firm utilizes the services of CPAs, EAs, and Attorneys who are distinguished from bookkeepers and other tax preparers by stringent qualification and licensing requirements. Our entire team has a purpose to legally save your tax dollars and to make taxes as painless as possible. This means we take your calls and respond to your concerns. If you receive a threatening IRS call or Notice or are worried about some tax question, we are here for year round taking your calls and responding to your emails.

    Upgrade to a full-service Tax Firm

    Whether you are filing personal, small business, or corporate taxes, or negotiating IRS tax debt, if you are not already using a professional Tax, Accounting and IRS Representation firm, you most likely have missed out on major tax benefits. This is because a professional tax and accounting firm utilizes licensed professionals such as Certified Public Accountants (CPAs), EAs and Attorneys, who can not only advise individuals on personal financial matters but who can also advise businesses and corporations of all sizes and types. Tax laws are complicated, and no one knows everything. Torchlight Tax is a team and any one of our tax pros can call on other EAs, CPAs and Tax Attorneys in the team who may have specialist knowledge in a specific area of tax.

    Amendments

    When doing current taxes, we often come across missed tax savings from prior years. When this happens, the Internal Revenue Service allows you to amend your taxes and lower your tax liability. Whether you or your prior tax preparer missed a W-2 or 1099, a revised 1099. large charitable donations, or made some other error, amending your tax return can help you recover the money you are rightfully owed. When we find this situation, we will advise you on potential savings and amend the previously filed tax return.</p”>

    Sometimes, there may be a situation where a tax return could be amended, but it is too late to receive any benefit. Or maybe you made an error that was missed by the IRS that would have increased your tax liability. In some cases, it is prudent to file an amended return. But if it is not necessary and will not save you any money or decrease your risk, we will tell you not to bother. It is silly to amend a return to no advantage which is too old for the IRS to audit. Some firms might file a bunch of unnecessary tax returns and charge a fee. Sometimes a taxpayer himself might increase his tax liability by filing an unnecessary amendment that increases his tax liability. We will not do this.

    Amending a tax return requires more professional acumen then doing it right in the first place. At Torchlight Tax, we do file the tax return correctly the first time. And we will happily amend your tax return, but only if it actually is to your benefit. If you think you might need to amend tax returns, contact Torchlight Tax for a free consultation.

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