pay-taxes-smart

Pay Taxes the Smart Way

Everyone knows how to pay taxes, but what about paying them the smart way?

Tax season can be an unpleasant time of year for a lot of taxpayers, especially if you owe money to the IRS or State. The only thing you can do is make the most of it, prepare ahead of time, and pay taxes in the lowest amount allowed by law.

Whether you are due a refund or writing a big fat check to the IRS, there are some steps you should take after your return has been filed. Here are three critical steps to take once the tax filing deadline has come and gone.

1. Print Off Hard Copies of All Your Forms and Receipts

Even if you save all of your documents on the computer and in the cloud, it is a good idea to print off hard copies and store them in a safe place. From the 1099 forms detailing your interest and dividend payments to the receipts that back up your charitable donations and business expenses, you never know when you will need this information.

You will appreciate having those hard copies on hand if your computer crashes or your cloud storage service fails. It takes only a couple minutes of printing, and those couple minutes could save you weeks of hassle down the road when you go to file and then pay taxes.

2. Check Your Refund or Balance Due Before You Pay Taxes

Even if you file electronically, you cannot expect instant service on your tax refund. It is the IRS after all. Even so, you should see quick action on your return and a notice that it has been accepted. Keeping an eye on your tax refund is one of the best ways to protect yourself and make sure the money you are owed does not end up in the hands of identity thieves.

This is also true if you owe money to the IRS. There have been tax identity theft cases where someone else files a tax return with your social security number, leaving you to deal with the liability or adding on to the amounts you owe.

If you use a tax filing software package, you should receive a notice by email when your return is submitted to the IRS, and another when it has been accepted. Watch your email box carefully and follow up if you do not receive those notifications within a day or two.

Once a week has passed, be sure to check the Where's My Refund page at the IRS.gov website to see where your refund stands. This handy tool provides a real-time picture of your refund status, from the time it is received by the IRS to the minute the money hits your bank account.

If you end up having to pay taxes, log in to your IRS account here https://www.irs.gov/payments/view-your-tax-account and check the balance to make sure it lines up with what you know you owe. If there are discrepancies, contact a tax resolution firm ASAP.

Blackhawk Tax Solutions, LLC

lauren@blackhawktaxsolutions.com

(719) 694-5505

www.blackhawktaxsolutions.com

3. Prepare for Next Year

You just filed your taxes, and the last thing you want to do is think about filing for next year. Despite this trepidation, now is the perfect time to start getting your ducks in a row for the filing season to come.

Start by looking at your current year's return and think about ways you could have lowered your tax debt. Perhaps you could have given more to your favorite charity. Maybe you could have increased your retirement savings rate. Knowing what you did wrong this year will make it easy to adjust your strategy and save more money going forward.

Nothing can make filing taxes a truly pleasant experience, but dealing with the IRS is something every American needs to do. Now that your tax return has been duly filed and your 1040 form is on its way to the IRS, taking the right steps can save you money down the line, protect you from identity theft and make future tax dealings a little less stressful.

ABOUT BLACKHAWK TAX SOLUTIONS, LLC

Our firm specializes in tax resolution, even if you have years of unfiled tax returns, or owe the IRS over $10,000 we can help! If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a free, confidential tax resolution consultation to explain your options to permanently resolve your tax problem.

Blackhawk Tax Solutions, LLC

lauren@blackhawktaxsolutions.com

(719) 694-5505

www.blackhawktaxsolutions.com


IRS Help for Coronavirus

Coronavirus Paid Leave from IRS

Coronavirus Paid Leave from IRS  -  March 20, 2020

A public notice sent out from the IRS Newswire service stated the following about the Coronavirus measures:

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

WASHINGTON – Today the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020.

The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.

KEY TAKEAWAYS:

  • Paid Sick Leave for Workers
    • For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.
  • Complete Coverage
    • Health insurance costs are also included in the credit.
    • Employers face no payroll tax liability.
    • Self-employed individuals receive an equivalent credit.
    • Employers receive 100% reimbursement for paid leave pursuant to the Act.
  • Fast Funds
    • An immediate dollar-for-dollar tax offset against payroll taxes will be provided
    • Where a refund is owed, the IRS will send the refund as quickly as possible.
    • Reimbursement will be quick and easy to obtain.
  • Small Business Protection
    • Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.
  • Easing Compliance
    • Requirements subject to 30-day non-enforcement period for good faith compliance efforts.

Need More Info?

For more information on the support and regulations from the IRS regarding the Coronavirus, please visit https://www.irs.gov/coronavirus

Need Tax Relief?

If you or someone you know is struggling with tax debt or IRS issues, please reach out to us!

Blackhawk Tax Solutions, LLC

(719) 694-5505

info@blackhawktaxsolutions.com

www.blackhawktaxsolutions.com


One Debt Solution We Love

One Debt Solution We Love

Do you have debt on your mind?

Now that the tax season is in full swing, we’re hearing a lot of different statements from clients.

Things like how their tax refunds are going to be used to pay down credit card bills or other debts.

I’ve heard that for years and, honestly, I think that was the biggest “negative” for taxpayers last year when the new tax bill went into effect…

In many cases, they did not owe as much, but the return they had come to expect was smaller or nonexistent, so it felt like they paid more.

So if you're one of the millions of taxpayers who try to use their refund to help sort out debt, I want to share another way you can work through that challenge.

The Debt Strategy

Now, I can’t claim this is my own idea – I heard about it years ago watching an interview with Dave Ramsey.  He calls it his “snowball” strategy and it basically works like this:

(And bear in mind, there is a far larger-reaching strategy at play here for those of you who really want to pursue Mr. Ramsey’s strategies)

To start with, you’ll list ALL of your debts, from smallest to largest.  This might be as easy as one or two credit cards, then the car notes, then the mortgage.  Just get it on paper.

Next, with respect to all of those debts, you’ll make the minimum payment on all of them EXCEPT for the smallest.  This one, you’ll pay down as much as you can that month.

Wash, rinse, and repeat.  Month after month, until the smallest debt is paid off, then move on to the next smallest.

Essentially, the idea is that by concentrating on one challenge, you’ll take care of it faster, and this will give you momentum (and extra money) to pay off the next smallest one.

Kinda like how a snowball grows larger and larger as it rolls down the hill.

Take Back Control

Last year was a very challenging one for many taxpayers, as they “lost – at least on paper – a financial windfall many had come to rely on every year.

The good news is there are still a lot of ways to save money and limit debt.

Is tax debt a major issue for you? Schedule a free, tax resolution consultation with us to explore your resolution options.

Blackhawk Tax Solutions, LLC

(719) 694-5505

lauren@blackhawktaxsolutions.com

www.blackhawktaxsolutions.com


http://blackhawktaxsolutions.com/stop-irs-levy/

IRS Levy: How To Stop It

Of all the creditors or companies you might owe money to, the Internal Revenue Service can be the least forgiving about debt. If you don't pay your taxes, the IRS will levy and take possession of your property, including cash accounts, wages, and real and personal property. The IRS will sell non-liquid assets to raise funds to satisfy the debt you owe.

If you’ve received a levy notice from the IRS, it’s time to ACT IMMEDIATELY. Our firm may be able to get your levy released the same day but you must call now for a confidential consultation

Blackhawk Tax Solutions, LLC  --  (719) 694-5505 --  blackhawktaxsolutions.com/tax-relief/

Forewarned Is Forearmed

Unless you don't open your mail or you moved without leaving a forwarding address, you probably won't be blindsided by an IRS levy. You'll receive a "Notice and Demand for Payment" of your tax debt well in advance of any action taken.

If you ignore this notice, the IRS will follow up by sending you a "Final Notice of Intent to Levy and Notice of Your Rights to a Hearing." Now the clock begins ticking.

You have 30 days to pay your tax debt or to contact the IRS to try to stop the levy. Even if you're unaware of the levy proceedings, your employer has a little bit of time to warn you if he receives notice that the IRS plans to take the bulk (up to 90%!) of your paychecks. Your employer doesn't have to begin sending your earnings to the IRS until the next pay period. With any luck, your employer will let you know what's going on within this time frame, so you can take action.

If the IRS levies your bank account, the bank will freeze the money in the account and remit it to the IRS after 21 days.  Therefore, you must act quickly to try to have the funds released upon receiving a notice that the IRS has levied your bank account.

Contact A Tax Relief Firm

Now is not the time to do it alone. If you call the IRS, they will often trick you into giving incriminating answers, further distancing you for the tax relief you so desperately need.

They are not your friend. They are there to collect what they believe you owe in taxes. Contact a professional experienced in tax resolution to help you with your case. Would you go to court without a lawyer?  Well, it’s the same with the IRS.  You need professional representation from a CPA, Enrolled Agent or tax attorney who is also a tax resolution specialist.

Contact Us Today!

Blackhawk Tax Solutions, LLC  --  (719) 694-5505 --  blackhawktaxsolutions.com/tax-relief/

Establish Hardship

If the IRS intends to levy your pay or Social Security benefits and you can't come close to making ends meet on what's left, the IRS wants you to contact them.  The contact phone number should appear on the levy notice. DO NOT CALL THE IRS (see our note above).

The law requires that the IRS leave you with the total of your tax exemptions for the year plus your standard deduction divided by 52 if you're paid weekly.

Gather your documents and call our firm. We’ll help make the case to the IRS and explain that the levy will cause hardship for you and your family. You'll have to provide documented evidence of this, but if you do, the IRS will release the levy. This doesn't mean you no longer owe the tax. It just means that the IRS will leave your earnings and income alone and work with you to figure out some other way for you to satisfy the debt.

Make Payment Arrangements

We can also ask for payment terms for your tax debt even if the levy won't cripple you financially. If you enter into an installment agreement, the IRS will typically release the levy unless the notice you received specifically states otherwise.

You Can “Settle” For Less Than You Owe

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. The IRS considers your unique set of facts and circumstances:

  • Ability to pay;
  • Income;
  • Expenses; and
  • Asset equity.

The IRS will generally approve an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. It’s best to explore all other payment options before submitting an offer in compromise as the Offer in Compromise program is not for everyone. Make sure you hire a tax professional to help you file an offer, and be sure to check his or her qualifications.

The IRS really doesn't want to destroy you financially. It just wants the money it's owed. If you can make some arrangement to pay or prove that you don't owe the tax, or if you legitimately cannot pay it at this time, you may be able to make the levy go away.

Our firm specializes in tax resolution, even if you have years of unfiled tax returns, we can help! If you want an expert tax resolution specialist 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.

Blackhawk Tax Solutions, LLC  --  (719) 694-5505 --  blackhawktaxsolutions.com/tax-relief/


pay-federal-taxes-with-monthly-payments

Pay Federal Taxes with Monthly Payment Plan

Every year, there are millions of taxpayers who find themselves unable to pay their taxes in full to the IRS. The IRS knows there will be some taxpayers coming up short. The good news is the federal government is happy to work with you through various options, like a monthly payment plan as one example. The bad news is, they’re relentless in their collection of back taxes and if left unattended, they can levy your bank account, garnish your paycheck, or put a lien on your property to settle your tax bill.

However, their cooperation comes at a price, called penalties and interest. Here are the steps you need to take if you wish to pay your federal income tax with a monthly payment plan.

Before you proceed to navigating the complicated maze that is the IRS on your own, we highly encourage all our readers to speak to a qualified Tax Relief Expert at our office. You can schedule a confidential, no obligation consultation to explore your options for tax relief.

Blackhawk Tax Solutions, LLC  --  (719) 694-5505  --  blackhawktaxsolutions.com/tax-relief/

Here are some steps you can take to get on an IRS payment plan if you can’t pay your taxes in full.

File Correctly and On Time

Trying some fancy 1040 shortcuts or inputing fake numbers on your tax return software to bring your tax bill down is not a solution. In fact, it will land you in deeper trouble. First, if you are going to owe tax and be unable to pay, your return will already face higher scrutiny as soon as you request a payment plan. Making deliberate attempts to file a fraudulent return will only compound your problem, and will lead to more serious consequences.

Waiting until after April 15 to file is also a poor plan, because you will only accrue more penalties. Also, filing an extension does not mean you have more time to pay. It simply means you’ll end up paying more with penalties and interest, sinking you deeper into a hole.

So make sure you file on time!

Attach Form 9465 Installment Agreement Request to your 1040 If You Need More Than 120 Days To Pay

WARNING: It’s best to hire a tax relief firm like ours to deal with the IRS directly. In most cases, our clients never speak to the IRS themselves and have our firm represents them every step of the way. One wrong move can put you in deeper tax trouble so it’s best to have the right firm representing you. Also, not everyone will qualify for an installment agreement. Contact our firm for a consultation today.

Blackhawk Tax Solutions, LLC  --  (719) 694-5505  --  blackhawktaxsolutions.com/tax-relief/

Ok, back to Form 9465…

This is the crucial step. If you have a reasonable reason for the delay in paying your taxes, the IRS can work out a 72 month payment arrangement. However, the late filing penalty can be as much as 5% per month of the outstanding tax debt, for each month or part thereof the tax is owed. The penalty is capped at a whopping  25% of the original tax owed. The failure to pay penalty is one-half of one percent (0.5%) each month up to a maximum of 25% as well. The interest is compounded daily, much like a credit card. The IRS charges interest on top of penalties and interest.  There is also an administrative fee to set up the monthly payments, depending on how you intend to pay. When you take into account the penalties and interest the IRS can assess, an IRS tax debt doubles every several years if you don’t address it head-on.

Applying for a Monthly Payment Plan Online

Your specific tax situation will determine which payment options are available to you. Payment options include full payment, a short-term payment plan (paying in 120 days or less) or a long-term payment plan (installment agreement) generally 72 months.

You may qualify to apply online if:

  1. Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns.
  2. If you are a sole proprietor or independent contractor, apply for a payment plan as an individual.

Wait 30 Days For a Reply (if by mail) and Make Sure the Monthly Payment Plan Is Your Best Option

It takes the IRS at least 30 days to process an Installment Agreement Request form. Understandably, after March 31 of each year the processing time is a little longer. During these 30 days, it would be a good idea to pursue other payment options. Plan on paying the late fee penalty and interest when you are comparing the full cost of an IRS Installment Agreement or another loan, such as through a bank or other avenues of credit.

When bank loan interest rates are higher than 6%, the IRS Installment Agreement looks like a fairly good deal. However, tax payers in true financial dire straits due to job loss or other issues need to take pause.

Defaulting on an IRS Installment Agreement is not the same as failing to pay your credit card bill one month. The collections process by the IRS is backed by the federal government, and includes the ability to apply a tax lien against any property owned by the taxpayer.

A delinquent taxpayer should also consider his or her ability to pay next year's tax bill. If the root cause of an inability to meet your tax obligation is recurring, for example related to a small business loss, certainly consider if the business is likely to weather a similar financial situation next year. After all, you can't secure another Installment Agreement if you are already paying one to the IRS. It may be prudent to pay this year's tax with a loan at a higher interest rate if you have the credit available and save the request for an Installment Agreement when you truly have no other option to meet your tax obligation.

Always Keep Careful Records of Forms Filed and Any Correspondence with the IRS

During the entire process of requesting an installment agreement, it is vital a taxpayer keep complete records. If there is communication by telephone, write down the time, date, and the person you spoke with in a log. It is also a good idea to briefly summarize the conversation, especially if there were any specific guarantees verbally given. Save all letters and notices from the IRS with your tax information.

There are a few reasons to keep these records. First, if something should happen to your paperwork, such as it becoming misplaced at the IRS office, you will have a back up to send and prove you complied with filing date requirements. Second, if the IRS fails to follow its own procedures and guidelines you can contact the Taxpayer Advocate Service for help. Finally, just in case your failure to meet your tax obligation turns ugly and leads to litigation, your records are what your legal representation will need to show your effort in paying your tax bill.

Our firm specializes in tax resolution, even if you have years of unfiled tax returns, we can help! You may qualify for the IRS’s debt settlement program called an Offer in Compromise, which can be more advantageous to you than a payment plan.  We may be able to settle your entire debt with the IRS for up to 85% off the original amount owed, including penalties and interest, if you qualify.  If you want an expert tax resolution specialist 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 in full to permanently resolve your tax problem.

Blackhawk Tax Solutions, LLC  --  (719) 694-5505  --  blackhawktaxsolutions.com/tax-relief/


Pay Off Back Taxes This Year: Here’s Why

Pay Off Back Taxes This Year: Here’s Why

Why should you pay off back taxes today? We're glad you asked!

According to the IRS, more than 13.2 million Americans owe back taxes. The majority of these cases involve amounts that seem impossible to pay off.

That leaves those tax-owing Americans in a difficult position. They want to pay, but they can't, and the end result is feeling a lot of guilt about the situation.  There is no easy way to get out of paying your back taxes. Uncle Sam wants his money, and he'll get it somehow.

There are steps you can take to find a solution and make 2020 the year you finally deal with your taxes.

Note, we always recommend getting in touch with a specialized Tax Resolution Professional to negotiate with the IRS on your behalf. If you’d like to schedule a no-cost confidential tax relief consultation, contact us here. www.blackhawktaxsolutions.com

Why You Should Pay Off Back Taxes This Year:

#1 You'll End Up Owing Less

The longer you wait to pay your back taxes, the more you are going to end up owing. That's because the IRS can and will add penalties that run up to 50% of the tax bill. That can add up quickly. The longer you drag out the situation, the more you'll need to pay your tax resolution specialist to help you handle everything. The sooner you act, the sooner you can resolve the issue and the less you'll have to pay.

If you need help from a CPA, enrolled agent or a lawyer who is also a tax resolution professional, look for someone that will charge you a flat fee rather than an hourly rate. Some cases take longer to resolve, so it’s important to know up front what you’ll be paying in service fees to get your back tax issue resolved.

#2 Housing prices are at an all time high. Time to cash in?

If you own your home or have equity in it, selling it and downsizing may be the best way to settle your tax debt and get a clean slate. Now is a perfect time, too, with housing prices at a premium in many areas of the country. You can use that cash in the bank to settle your back taxes almost immediately. Additionally, if your home is worth more than you owe, you can then reinvest that money or save it for a rainy day. That gives you a clean financial slate to start rebuilding your life.

#3 Economic Uncertainty

Most experts agree we’re due for a recession soon. How soon? Well, no one knows. What we do know is that having a large back tax bill will only hinder your ability to weather a storm in the event of an economic downturn.

You might be able to take a low interest loan out now that the economy is still good and settle your tax bill. Taking care of your taxes while the economy is still good will give you peace of mind and breathing room in case things go south with the economy.

Don't let the burden of back taxes hang over your head any longer. Discover how to solve your tax problem by speaking with our tax relief professionals: www.blackhawktaxsolutions.com

Blackhawk Tax Solutions, LLC

(719) 694-5505

lauren@blackhawktaxsolutions.com


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


What is Currently Not Collectible Status from The IRS?

Currently Not Collectible Status from The IRS.

Big companies are known for getting all sorts of breaks, but when average people fall behind, they rarely receive help. When you owe back taxes, but can’t afford to pay them, then you may qualify for a special tax status known as currently not collectible.

If you’re approved for currently not collectible status, then the IRS must not only cease its collection efforts but can no longer garnish your wages or seize your property.

Want to know if you qualify for currently not collectible status? Contact our firm here for a specific evaluation of your situation.

Blackhawk Tax Solutions, LLC

(719) 694-5505

blackhawktaxsolutions.com

What is Currently Not Collectible Status?

If the IRS agrees you can’t both pay your back taxes and cover your reasonable living expenses, it may place your account in Currently Not Collectible status. It’s based on your current financial situation.

You can request currently not collectible status by submitting the proper form and proof to the IRS of your income and expenses, as well as whether you can sell any assets you may have or get a loan.

As you’ll need to be able to document your inability to pay, be sure to gather copies of all your bills, your most recent paycheck stubs, and statements detailing other sources of income such as alimony, pensions or investments. If the IRS determines that your necessary expenses exceed your income, then it will notify you of your Currently Not Collectible status

WARNING: Don’t try to do this alone. We recommend reaching out to our tax resolution firm to guide you through your options. Talking to the IRS directly could be like shooting yourself in the foot. They’ll ask you very invasive questions that could land you in deeper trouble. Remember, the IRS is not your friend. Their job is to collect what they believe you owe them, so it’s best to have a professional in your corner.

Not a Permanent Solution

Keep in mind that currently not collectible status applies only to your back taxes. You will still have to file tax returns, and you will not be exempted from paying current and future taxes. You will also continue to accumulate penalties and interest on your unpaid taxes. After a year or two, the IRS may review your status, and if you’re able to begin paying your back taxes, then you must do so. If you’re still not able to pay, then your status will be renewed.

Statute of Limitations   

The IRS can attempt to collect outstanding taxes for only 10 years from the date the taxes were assessed against you, usually that’s the date you filed.  If at the end of this 10-year period the IRS hasn’t collected, then the taxes are no longer owed.

In difficult times, many families have trouble meeting their commitments. If you’re worried about the IRS garnishing your wages, levying your bank account or taking your home, then reaching out to our firm and getting a free, no-obligation, confidential consultation on your tax problem may give you some peace of mind. If you’re not approved for Currently Not Collectible status, our firm will explain the many other tax relief options with you. Contact us now.

Blackhawk Tax Solutions, LLC

(719) 694-5505

blackhawktaxsolutions.com


Filing Taxes? 4 Mistakes to Avoid.

Filing Taxes? 4 Mistakes to Avoid.

It can be a stressful experience preparing your taxes and filing them. It can be even more stressful however, if you make these mistakes that land you into tax trouble. It's important to remember that if you make mistakes that are serious enough, you might end up triggering an audit of your tax return or owe more in back taxes.

It’s early to be talking about tax season, but if you're planning on filing your own taxes this year, here are four mistakes that you should avoid.

Don't neglect to report all your income

Whatever your sources of income may be, whether it's your regular paycheck, a side gig, gains that you've made on the stock market, or interest that you've earned from deposits in the bank, it's important to remember that you should account for all of it in your tax return. If you don't, the IRS may come looking for it.

Every time you make at least $600 in income working as an employee of any description, you get a 1099 form stating what you've made. The IRS gets a copy of the form, as well. This means that it makes no sense to try to hide your income from the IRS.

When you make any kind of income, you should report it on your tax return. Technically, you should even record smaller chunks of income, the kind for which you don't get 1099 forms.

Don't just guess at what your deductions are

There are many possible tax deductions that you could take advantage of. It's important to remember, however, that you do need to back up every attempt at a deduction with documentary proof like receipts or logs. If you attempt a rough estimate at what your deductions should be, you could trigger suspicion, especially if the sum that you claim is high for your income level, or if it is a convenient round figure.

Don't automatically reject the idea of itemizing

Most tax filers choose to take the standard deduction, rather than itemize. This doesn't mean that you shouldn't itemize. It depends on your specific circumstances. If you have many legitimate deductions to make, say, because, you pay a great deal of mortgage interest, you might be better off itemizing, even if it takes more work to do it.

Don't put off filing your taxes

Preparing your taxes is a complex process. If you're self-employed, or if you need to itemize, it can only get worse. It's important to not rush through the process. Any mistakes that you make may prove costly. Take out the time to file your taxes well ahead of the tax deadline. If you need extra time, you can always file for an extension. This way, you can avoid the late filing penalty, which can add up to a whopping 25% of the original tax amount

Making a mistake on your tax return is the last thing you want to do. Mistakes can be complicated to correct and recover from. It's important to give yourself enough time.

Whatever you do, don’t skip filing. Many clients come to us with not only years of unfiled tax returns but owing large sums of money to the IRS.  Many times we can help you obtain a “fresh start’ settlement for up to 85% off the original amount owed, including penalties and interest, if you qualify.

If you do run into 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

(719) 694-5505

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