Most individuals may have already established a tax filing history. We can help our clients amend any tax returns incorrectly filed. We work with our clients year round to make sure we understand your tax needs. Throughout the year we will ensure timely filing of estimated taxes, if applicable. Alternatively, if you usually receive a refund and minimizing your refund to ensure more disposable income during the year is your goal, we’ll work with you to determine the proper withholding allowances to submit to your employer on Form W-4. This will ensure that you get the maximum amount of pay each payroll period, instead of giving an interest free loan to the government.
Do I Need to File a Tax Return?
Some individuals may be newly employed and feel that they make very little money and are not sure whether they need to file a return. A tax return should be filed if an individual has yearly gross income equaling an amount based on the person’s filing status. The filing threshold generally totals the sum of the personal exemption and the standard deduction. For tax years beginning 2018 through 2025 the personal exemption is $0, so the filing threshold will be based only on the standard deduction for those years. If you have a question about whether you need to file, please contact our office. The IRS may impose a penalty based on the failure to file, even if no tax is due. Therefore, it is important to understand whether you are required to file a return.
Estimated Payments
If you had a tax liability of $1,000 or more in the prior year and your circumstances have not changed and you have not changed your withholding, you should likely be making estimated payments in the current year. We can review your income/liability numbers from the previous year to determine if you’ll owe tax for the current year. We will calculate your estimated payments by compiling your income, deductions, credits and taxes paid, similar to filing a yearly tax return.
For the purpose of estimated tax, the year is divided into 4 payment periods. Each period has a specific payment deadline, and failing to pay on time can result in IRS penalties:
• January 1 — March 31: Deadline is April 15
• April 1 — May 31: Deadline is June 16
• June 1 — August 31: Deadline is September 15
• September 1 — December 31: Deadline is January 15 (of the following year)
It is important to submit your tax payments on time. Even if you’ve already missed a few installments for estimated tax, you should still try to pay them as soon as possible in order to minimize the underpayment penalties.
Missed Tax Return Filings
If you have fallen behind on your tax filing requirements and have not filed in prior years, we can help you file those delinquent tax returns. Although the tax laws are constantly changing, we will make sure the correct law, in effect in the year of the tax return at issue, is applied. If interest and penalties are outstanding, we can negotiate with the IRS to try to achieve a reduction.
Student Loan Default
Have you defaulted on your student loans? Has your tax refund been offset as a result? Or, has your spouse defaulted on his or her student loans and you feel your share of the refund should not be offset? If you have defaulted on your student loans and a tax refund offset presents a hardship to your current financial condition, we can also help you apply for a Tax Offset Hardship Refund. If your spouse has defaulted, but your share of the refund is offset, we can help you submit an Injured Spouse Allocation in order get back your share of the joint refund. In addition to tax refund offsets for student loan defaults, tax refunds can be offset for any other federal agency debt. We can help you negotiate a one-time claim for relief from the offset.
IRS Tax Lien
If you owe federal taxes from prior years, the IRS may place a lien against your property. A federal tax lien is a legal claim against your property resulting from a failure to pay a tax debt. If you owe taxes to the IRS and you have received a 1) Notice of Federal Tax Lien, 2) Final Notice—Notice of Intent to Levy and Notice of Your Right to a Hearing, 3) Notice of Jeopardy Levy and Right of Appeal, 4) Notice of Levy on Your State Tax Refund—Notice of Your Right to a Hearing or a Notice of Levy and of Your Right to a Hearing, you have a limited tie to respond. Our office can help you respond to any of these Notices in order to preserve your rights prior to having your wages garnished or tax refund offset by the IRS.
These are just a few of the individual tax services we provide. Please contact our firm to discuss your individual tax matters.
