Income taxes are complicated and the tax requirements of an individual or business can vary dramatically with changes in income and status. To keep ahead of these life changes and their tax implications, it is important to work with qualified, expert tax professionals.
A professional tax planner does more than file taxes for the previous fiscal year. Through a thorough understanding of federal, state and local tax laws, as well as intimate knowledge of your situation, tax planners can forecast and make adjustments to minimize your tax expense.
In order to protect your wealth and the wealth of your organization, you must partner with a firm that is able to adapt to your growth and offer continued tax services support. This proactive stance ensures that your organization does not experience the expense of unnecessary taxes or costly mistakes due to being handled by nonprofessionals.
The tax experts at Smolin offer a number of additional tax services including:
Individual Tax Planning
The Smolin team understands that you work hard for your money and that protecting your wealth is a crucial cornerstone of financial stability. Tax planning is a way to strategically make business, investment and savings decisions while considering the short term and long term tax implications. In order to maximize tax savings, it is important to work with a qualified firm with thorough knowledge of both business and individual tax laws.
Regulations at the state and local levels are continually changing. Tax planning requires both an understanding of new tax reforms and the ability to anticipate changes in the tax code given the current political and economic landscape. With this knowledge, our team of experts is able to prepare each of our clients for those changes and make adjustments to the tax planning strategy as needed.
Some individuals believe that filing taxes on their own is a way of saving time and money. However, today’s tax codes at the federal and state levels are so complicated that filing taxes without a professional is difficult at best. It is very easy for individuals who are unfamiliar with tax law to miss deductions and credits that they are entitled too, thereby paying unnecessary taxes. Conversely, individuals may also take credits and deductions that they are not entitled to, which can result in penalties and interest from the IRS.
Roth IRA Conversions
Roth IRAs are a vehicle to save money for retirement. Roth IRAs provide a number of benefits that go above and beyond what is often seen in a traditional IRA. Contributions to traditional IRAs deducted at the time of investment. Instead, funds are taxed when they are drawn down at retirement. With a Roth IRA, no deduction is allowed for the contributions. Those funds are then drawn down without taxation during retirement. Other advantages to a Roth IRA include:
- There are no mandatory withdrawals required by the original owner of the account.
- Roth IRA can be passed down without taxation.
- Growth of funds invested in a Roth IRA is tax free.
- Traditional IRAs may be converted into Roth IRAs.
Although Roth IRAs provide a number of benefits, they may not be the right choice for all individuals. A professional, qualified tax planner can lay out a plan given your specific needs. Although traditional IRAs may be converted into Roth IRAs, investors must pay tax on the amount that is converted. A professional tax planner can forecast ahead to determine the best course of action given your specific situation. Failing to have this done by a professional can result in incurring unnecessary tax expenses.
Representation before the IRS
Meeting with the IRS can be distressing for individuals and business owners alike and should not be taken lightly. Providing representation before the IRS is one of the key tax services our firm offers in order to resolve the conflict in a timely manner while providing support to our clients. The Smolin team has the experience, qualifications and know-how to represent your firm during tax controversies.
Common issues that require representation before the IRS include:
Audits are a through process whereby you may need to provide substantiation for your tax return. This can be done at the business or individual level and requires a level of expertise to provide the IRS with the required documentation from a defensive standpoint. Our expert tax services team can handle all interaction with the IRS, leaving you to focus on your business.
When back taxes are owed it is important not to ignore the outstanding balance. Working out an installment agreement with the IRS allows you time to pay off your tax debt without worry of further action. Interest and penalties continue to accrue during the installment agreement, therefore paying off back taxes as soon as possible is strongly advised.
Offer in Compromise
A program provided by the IRS, Offer in Compromise is a way for taxpayers to settle their debt with the IRS for less than the full amount owed when they are financially unable to cover their tax liability. The Smolin tax services team can evaluate your case and outline the specific IRS fees and payments that are required to apply for an Offer in Compromise and to advise if this program is applicable to your specific situation.
Past Years Returns
Individuals and businesses may fail to file taxes because they lack understanding of the process or are unsure of how to pay their tax liability. Not filing taxes is a federal crime and can result in a number of negative outcomes, including prosecution and heavy fines and penalties, that could include prison time. As such, it is important to file past due returns as quickly and accurately as possible. Tax liability may be handled separately through installment agreements or an Offer in Compromise.
By voluntarily filing past due returns, you can reduce the likelihood of future problems with the IRS. Our tax specialists can work with you to file tax returns while maximizing your tax savings.