After months of waiting, you just received the notification via snail mail that you have been waiting for: The Internal Revenue Service has agree to accept your Offer in Compromise, drastically cutting your tax liability and removing a huge burden from your proverbial shoulders. One thing is certain – despite a favorable outcome, you never want to relive the nightmare of negotiating an OIC along with the rigorous process of pre-qualifying, submitting paperwork and going through your finances with a fine-tooth comb, hoping for an approval.
So what’s next for you? Where do you go from here so that you can avoid these problems in the future and stay out of trouble with the IRS?
Tips to Help Businesses Avoid Future Problems
Businesses will need to take extra precautions to avoid future problems with the IRS. Some tips follow:
- If you insist on computing taxes yourself, look into a good recordkeeping system that works for your specific businesses. Better yet, hire a tax professional.
- Small businesses sometimes unknowingly hire someone who is simply not qualified to handle their taxes. Research a tax professional with experience in your specific field to help avoid further problems.
- Determine whether you need to use a cash or accrual accounting system as determined by the type of business that you own.
Tips to Help All Parties Avoid Further Problems
Personal and businesses alike should do the following in order to stay out of trouble with the IRS:
- Make all your payments on time without fail. Submitting a late payment, or worse, missing a payment, jeopardizes your OIC agreement and means the IRS could cancel it.
- Going forward, file all required tax returns in a timely manner.
- Watch out for any tax scams and schemes by staying educated and contacting the IRS directly if you suspect questionable activity.
Contact Highland Tax Group
If you have specific questions about how to organize your personal assets or business in order to avoid future tax problems, contact our office directly at 720-398-6088 for further information.