Failure to prepare can result in huge losses. Despite the importance of a good tax resolution plan, many businesses fail to realize the importance of seeking a professional when facing problems from their tax situation. This often occurs due to misconceptions about what companies providing Tax Resolution for businesses in San Mateo, CA, actually do.
When should you consider tax resolution services for small businesses? While it’s a common misconception that tax resolution companies can help with all tax issues, many businesses will be surprised to learn that there are several different categories of tax problems where a business owner is better off seeking help from an accountant or another type of professional.
Here are different instances when you should consider seeking tax resolution services.
- Audit representation
When you receive a tax notice from the IRS, it is always best to seek professional representation. You should contact an accountant or a tax resolution company as soon as possible. When dealing with the IRS, you want to make sure to have a professional on your side who can help you resolve the issue at hand. Just like when representing yourself during an audit, tax resolution companies can use their experience and knowledge of what works and what doesn’t when dealing with an audit.
- Transcript protest
When you have failed to file your tax return on time, it’s not normal for the IRS to send out a letter stating that they have “significant issues” with your tax return. In some cases, the IRS will send out a letter requesting that you pay the taxes and penalties associated with failing to file your tax return within a certain amount of time. However, if this notice is accompanied by a document from a transcription contractor, it’s important to seek professional help as soon as possible.
- Tax penalties
Some tax penalties are relatively minor and can be resolved without the need for any professional assistance. However, if you received a notice stating that there are significant penalties associated with your tax return and that you need to pay the amount being requested within 90 days or face additional penalties, it’s important to seek professional representation.
- Unfiled returns
If you haven’t filed your tax returns for two or more years, it could mean that significant penalties and interest are being charged to your account for each year you have failed to file. If you receive a letter from the IRS stating that there are penalties associated with not filing a return for so long, it’s important to speak with a professional as soon as possible.