When to Hire a Tax Relief Professional.

When to Hire a Tax Relief Professional.

When it comes to tax debt issues, many people wonder when the correct time is to seek help from a tax relief professional. We know what you're thinking, there’s only one person that truly has your best interests at heart - and that person is looking back at you in the mirror. Handling your own finances and making your own decisions can give you peace of mind and help you avoid a costly mistake.

There is a lot to be said for the do-it-yourself approach to your money, yet the go it alone path does have its limitations, especially when it comes to the IRS and back taxes.

We see clients that have tried to handle their taxes on their own, sometimes raising red flags with the IRS, resulting in audits, or getting hit with a big tax bill they can’t pay. They might setup an installment agreement on their own, but often times, the DIY approach just makes the penalties and interest keep stacking up putting in an endless loop of back taxes. Many of our clients started out by trying to do this on their own or with their current tax preparer.

Dealing with the IRS takes a very specialized skill set that most tax preparers and even CPA’s don’t possess.  Make sure you have a tax resolution specialist on your side.

So, before you end up in that horror story, here are 3 times when hiring a tax pro, or a tax relief firm like ours, is the only way to go.

#1 You Received a Major Windfall

Even if you know how to handle your finances, receiving a major windfall can throw your plans for a loop. Whether you are the lucky holder of a winning lottery ticket or the recipient of a major inheritance, it pays to seek outside advice.

If you choose the DIY approach and make a mistake, you could end up paying more in taxes than you should, but a high tax bill is not the only danger. Handling your windfall the wrong way could throw off your asset allocation, impact financial aid for your college-bound children and create additional problems down the road.

#2 You Have Existing Tax Problems with the IRS

When you have issues with the IRS, you absolutely cannot afford to go it alone. Attempting to resolve tax issues on your own is unwise in the extreme, and a single slip-up could leave you on the hook for even more. I mean, ask yourself if you would go before a judge in court without a lawyer representing you?  Probably not.  It’s the same here.  Representing yourself before the IRS is generally not a good idea.  Don’t do it. You most likely will get “creamed”!

When you receive a notice from the IRS, time is of the essence, but you should not let the desire for fast action override the need for professional help and guidance. If you want to resolve your issues fairly without going broke, do yourself a favor and find the right tax relief professional to help you get back on track. Hiring an enrolled agent, CPA or an attorney that is trained in tax relief is the best way to preserve your rights, and you do not want to go it alone.

#3 You Have Assets You Need to Protect

When you owe taxes, the IRS only cares about one thing, and that is to get paid what they think you owe them.

They’ll levy your bank account, emptying everything you have in there. If you run a business, that means you won't be able to pay your employees, pay your office rent or keep your lights on, ultimately putting you out of business.

Another way they'll collect is to garnish your paycheck leaving you about 10% to 25% of your net pay to live on.  Good luck with that.

They can also put a lien on your assets, including real estate, personal property and financial assets. This puts in jeopardy everything you’ve worked so hard to attain.

Hiring the right tax relief professional can help you avoid such extreme measures taken by the IRS. They’ll communicate with the IRS on your behalf and can often remove a lien or levy. If you have assets you can’t afford to lose, then hiring a tax relief pro is the only way to go.

The Bottom Line

Even if you are confident in your DIY approach or feel your tax problem isn’t so serious, it never hurts to get a second opinion. If you are doing everything right, that tax relief specialist’s advice will give you peace of mind. If there are deficiencies in your actions, the advice you get could stop you from making a devastating, and possibly irreversible, mistake.

Are you experiencing tax trouble? Reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem.

Blackhawk Tax Solutions, LLC

blackhawktaxsolutions.com

(719) 694-5505

lauren@blackhawktaxsolutions.com


Why Early Adopters of Cryptocurrency Should Explore Their Tax Resolution Options Now

Why Early Adopters of Cryptocurrency Should Explore Their Tax Resolution Options Now

The stunning rise in the value of Bitcoin, along with the myriad of cryptocurrencies, is surely one of the biggest financial stories of the 21st century, at least so far. What started out as a mere curiosity and niche project for programmers and geeks has quickly blossomed into a full-fledged financial asset, and an increasingly popular one at that.

For early adopters, the financial returns have been simply mind boggling. You may have heard about the generation of Bitcoin millionaires, and there are plenty of those newly rich investors to go around.

The IRS and Cryptocurrency

Given the rapid rise and relative anonymity of Bitcoin transactions, it was only a matter of time before the IRS caught on, and the tax agency has caught on - and caught up - in a big way. After years of taking a hands-off approach to cryptocurrency investments, the IRS is now paying close attention - and requesting the real world identities of those supposedly anonymous buyers and sellers.

While every investor in cryptocurrency should be aware of their potential tax liability, the problem could be even more acute for early adopters - the very investors who have profited the most from this unique form of digital payment.

As with all things tax, the Internal Revenue Service is likely to start where the big money is, and the tax agency has increasingly set their sites on early adopters. If you were prescient enough to buy into the promise of Bitcoin and other cryptocurrencies when everyone else was looking the other way, it may be time to settle up with the IRS.

For early adopters of cryptocurrencies like Bitcoin, a little proactivity could go a long way. The IRS has already requested records from Coinbase and other big cryptocurrency exchanges, and it is only a matter of time before they catch up to you and your profits.

The Future of Cryptocurrency and Taxes

For now, the tax agency claims it has requested information on only the largest accounts, but it is reasonable to assume the IRS will expand its scope in the future. If you have booked your Bitcoin profits and want to settle up with the IRS, contacting a tax resolution agency now could save you a lot of money - and potentially a lot of grief.

There are many reasons for early adopters of Bitcoin and other cryptocurrencies to work with a tax resolution service, starting with the complexity of reporting profits in digital currency. The IRS is still fairly new to regulating and taxing cryptocurrency, and there has been a lot of confusion and misinformation over how profits are taxed and how people are supposed to pay.

Regardless, if you haven’t reported your crypto earnings or filed your taxes for the past few years, it’s time to do so now. By working with a tax resolution expert, you will gain access to a world of expertise, so you can draw on that knowledge to accurately report how much cryptocurrency you have purchased, how many coins you have used and how much you have gained or lost on each transaction.

This accounting is very important, since it could impact not only your tax bill but any future taxes and penalties. According to the IRS, holders and users of cryptocurrencies have been responsible for reporting their gains all along, and failing to do so could mean big penalties and lots of back interest.

How Do I Fix My Cryptocurrency Tax Problems?

A tax resolution specialist will be able to guide you through what is surely one of the most complicated tax situations in many years. The very complexity of the cryptocurrency market makes navigating the tax consequences especially difficult, and it never hurts to have some expert assistance in your corner. So do yourself a favor and come clean now - the IRS has finally caught on to the cryptocurrency revolution, and the tax agency is making up for lost time, and making the lives of early adopters a lot more difficult.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

www.blackhawktaxsolutions.com

Contact Us!

(719) 694-5505

lauren@blackhawktaxsolutions.com

13570 Meadowgrass Drive, Suite 205

Colorado Springs, CO 80921