It has been a while since I last sent out a tax tip. I will be following up on the Joe and Mary case on a later date. As you probably have guessed, I spend much of my day resolving taxpayer issues with the IRS and the State of Utah. Though everyone wants to focus on the cool stuff – making massive debts vanish for pennies on the dollar – it actually all starts with Tax Compliance.
So, what is Tax Compliance? Tax Compliance means that the taxpayer has filed all returns due and owing as of this moment. “All Returns” is defined as the last 6 years, and is making their current tax period payments. So, as I sit here in August 2021, Tax Compliance means having 2015 – 2020 filed. It also means the following:
- An employee is having sufficient withholding so they will not owe money at the end of the year;
- Self-Employed individuals have made this year’s estimated tax payments (1st and 2nd quarter are due as of today); and
- Business clients have made their current 3rd quarter payroll tax deposits.
For non-filers, or folks who have back tax debts, tax compliance must be dealt with before an Offer-in-Compromise or installment agreement will be considered. So, get tax compliant, then get to work with your Tax Rep Pro on resolving the issue!
If you or someone you know has a tax issue please feel free to contact me at (801) 323-2094 or by email at firstname.lastname@example.org.