There is no other problem as severe as a tax problem. These crucial errors can bring even the biggest organizations to their knees. Taxes are inevitable, and a national responsibility. Attempting to avoid them will only lead to trouble for organizations.
Let’s consider that your organization has found itself in tax trouble. Whether it’s dealing with delinquent returns or facing an IRS audit, the stress of handling tax issues can distract you from running your company. What can you do? An answer exists in the form of outsourced accounting services in Miami.
This unique approach involves you outsourcing financial management responsibilities to a team of pre-existing accounting professionals instead of hiring and building an internal team. As such, the potential to save costs in the long term is enormous. More specifically for tax troubles, these outsourced accountants can immediately leverage their knowledge and expertise to save your organization.
Here’s what it involves…
Handling Delinquent Tax Returns
One of the most common tax problems businesses face is delinquent tax returns. Whether it’s due to an oversight or lack of resources, failing to file your tax returns on time can result in hefty penalties and increased scrutiny from the IRS. The longer the returns are left unfiled, the more significant the penalties become.
Dealing With Failure to File a Tax Return
Failing to file a tax return is a serious issue that can lead to severe consequences, including criminal charges in extreme cases. Even if your business is unable to pay the taxes owed, it’s crucial to file the return. Many business owners may be unsure of how to proceed after missing a filing deadline, leading to even more delays and compounding problems.
Filing Back Taxes
Back taxes can accumulate quickly, especially if your business has experienced financial difficulties. Filing back taxes can feel overwhelming, particularly if you have multiple years of unfiled returns. Businesses often delay dealing with this issue because they’re unsure of how much they owe or how to navigate the IRS’s processes for filing late returns.
Avoiding IRS Liens and Levies
When a business owes unpaid taxes, the IRS may issue liens or levies as a means of collecting the debt. A lien is a legal claim against your business’s property, while a levy allows the IRS to seize your assets, including bank accounts and other property, to satisfy the debt. These actions can severely damage your business’s financial health and reputation.
Appealing Against Wage Garnishments
If the IRS issues a wage garnishment, it can significantly affect your business’s cash flow and your employees’ livelihoods. Wage garnishment occurs when the IRS takes a portion of your wages or the wages of your employees to settle unpaid taxes. This can create a financial strain on your business, making it difficult to meet payroll obligations or cover other operating expenses.
Representation During an IRS Audit
Being audited by the IRS is one of the most stressful experiences a business can face. Audits can be triggered for several reasons, such as discrepancies in tax filings or unusually high deductions. During an audit, the IRS will scrutinize your financial records, which can be a daunting task if you’re unprepared.
Tax trouble is naturally daunting, but don’t lose your cool! Resolving tax trouble is quite simple, especially when experts are involved. As such, outsourcing tax troubles and larger accounting requirements to professional accountants can be the best strategic decision your organization can make. These experts will leverage their financial wisdom, knowledge, and expertise to adequately help the organization coast through tax troubles!
