Monthly Archives: January 2014

Tax Negotiations With the IRS

Back taxes may be resolved in a number of ways. And one method may be IRS tax negotiations through the Offer In Compromise Program (OIC). Setting up a monthly payment plan with the IRS is the easiest. But it is not necessarily the best for your circumstances. Some installment plans require substantial information. And taxpayers may wish to go it alone when working with the IRS. However, taxpayers often find themselves making multiple 2 hour calls to the Internal Revenue Service. Or they find themselves with the same series of events with the state.

So setting up a payment plan is not always easy. But taxpayers don’t realize that sometimes, there are other options to a payment plan. While this may be the only recourse for some clients, many times there are other options.

Collections Due Process

The IRS and most states often file tax liens when outstanding taxes have not yet been paid in full. Taxpayers who owe the IRS can protect themselves and their credit by taking steps to prevent a federal tax lien from being filed. After tax liens have been filed, it may be possible to get the lien withdrawn or released. Penalties and interest are added to any federal or state tax debt that is unpaid or paid after the due date. These penalties and interest continue to mount until the tax debt is paid, settled or until the tax debt reaches the statutes of limitations.

Taxpayers may also be setup under uncollectible status. Currently Not Collectible means that a taxpayer has no ability to pay his or her tax debts. The IRS can declare a taxpayer “currently not collectible,” after the IRS is convinced that a taxpayer has no ability to pay.

IRS Tax Negotiations

Business & Financial Solutions is an ethical firm, offering reasonable solutions and services. Unfortunately, not all clients will get from us what they want to hear. Some tax cases will meet the criteria for Offer In Compromise, or Currently Not Collectible, but some will not. We prequalify potential clients to determine if they will qualify for one of these programs, if negotiations with the state or IRS would be practical, or if another option may be more feasible.

Helping clients in Potomac, Hagerstown, Urbana, Bethesda, Potomac, Sterling, Leesburg, Herndon and more.

Our offices are located in Vienna, Frederick and Rockville.

Understanding Tax Credits and Deductions

Don’t leave any of your income tax credits and deductions on the table! Taxpayers throughout the country, may unknowingly qualify for tax credits. And fail to claim them because of inadequate tax preparation. So we encourage to to seek the help of professionals. You know, you can be “a penny wise, and a pound foolish.”

There is a difference between credits and deduction. An taxpayers need to be made aware of this. You see, just because you don’t qualify for itemized deductions, it doesn’t mean you don’t qualify for some credits. We want to remind taxpayers that credits are not the same as deductions. And tax deductions and tax credits can both reduce an individual’s income tax liability, but they do it in different ways.

Tax deductions reduce taxable income. But deductions cannot reduce taxable income below zero. Their value is limited to the filer’s tax liability before applying the deduction. And some taxpayers may or may not qualify for the deductions, depending upon their circumstances.

Tax credits directly reduce a person’s tax liability. And hence they have the same value for all taxpayers with tax liability at least equal to the credit. In addition, some credits are refundable. And they are not limited by the taxpayer’s tax liability. And tax deductions, as a general rule, make the most sense for items that represent reductions in ability to pay tax. For example, casualty losses. But credits are more appropriate for subsidies provided through the tax system.

American Opportunity – Are you a student or do you support a student? If so, and according to the IRS, you may be eligible for this credit. Students in their first four years of higher education may qualify for as much as $2,500. Even those who owe no tax may get up to $1,000 of the credit refunded per eligible student. But you must file form 8863 Education Credits to claim this credit.

Health Coverage – Did you receive Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance? Or maybe you received Alternative Trade Adjustment Assistance or pension benefit payments from the Pension Benefit Guaranty Corporation. If so, you may qualify for the Health Coverage Tax Credit. The HCTC helps make health insurance more affordable for you and your family. This credit pays 72.5 percent of qualified health insurance premiums.

You can rely on Business & Financial Solutions for efficient tax preparation. And we can help you avoid leaving other credits and deductions behind. So contact Business & Financial Solutions. We can help with all your tax needs, including back taxes that have gone unfiled for years. And we can also help if you have back taxes as a result of poor tax preparation. We can amend returns that back as much as three years.

Visit our local offices in Vienna, Frederick or Rockville offices.

We serve the entire Washington DC Metro Area.

Phone: (855) 557-2222, Fax: (855) 557-2222 E-mail: info@bfswebsite.com

Capital Gains Tax MD-VA-DC Residents

At Business & Financial Solutions, our goal is to provide the best solutions to excessive taxes. Ideally, we prefer to work with clients quarterly for the purpose of tax planning. Visits from clients once a year during tax season is generally not enough. Some of the solutions to tax avoidance must be taken throughout the year, as circumstances change. This is true often, when it comes to to planning for profit from investments, and capital gains tax.

New Tax Laws

There are several new tax laws and provisions to be aware of as we head into 2013 tax season, but one of the most important ones is the change that is taking place when it comes to capital gains tax rates for individuals businesses and estates. Due to new fiscal cliff legislation, capital gains & dividend tax rates are increasing from 15% to 20% for singles earning over $400,000 and couples earnings over $450,000. Additional changes include:

Individuals making in the $36,250 to $400,000 range will see their capital gains continue to be taxed at a 15% tax rate. Meanwhile, earners in the lowest two income tax brackets will pay 0% on investment income.
There will also be an additional 3.8% investment income tax applied to singles earning over $200k and couples earning over $250k. The purpose of this new tax is to help fund Medicare.

In the areas of capital gains, our services address taxpayers who may have problems with the 2013 tax preparation if they did not adequately prepare for this through effective tax services. Last year’s historically low capital gains tax rate of 15% has increased to higher rates that went into effect Jan. 1, 2013.

The 15% top capital gains tax rate went up to 20%. Higher income earners have to tack on another 3.8% (the net investment income surtax). This is something that should have been looked at before year-end, and services should be obtained to meet upcoming needs. Taxpayers that do not consult with professional services will be in for an unpleasant surprise when filing upcoming income tax returns.

Tax Planning

There are ways to exploit the 0% rate while you’re alive. Those in an ordinary income tax bracket of 15% or below can sell stock at a 0% gains rate. For 2013 a couple can have up to $72,500 and a single up to $36,250 in taxable income and still be in the 15% ordinary income bracket. Add in the standard deduction and personal exemptions, and that translates into an adjusted gross income of up to 92,500 for a couple and $46,250 for a single filer.

Take enough gains to fill up that 15% bracket. If you’re in a high bracket but your adult children or parents aren’t, consider giving them appreciated stock. You can give $14,000 a year in cash or property each to as many individuals as you’d like without eating into your lifetime gift/estate tax exemption. The recipient of your stock gift takes on your basis—and later sells at the 0% rate.

Business & Financial Solutions

Business & Financial Solutions has local offices in Frederick and Rockville. Our firm can provide services that help you avoid unnecessary taxes through effective oversight. We offer solutions within the tax laws that provide results for you, as the taxpayer, while avoiding complications with the Internal Revenue Service.

In addition to planning for estates, Business & Financial Solutions tax preparers can assist you with preparation of estate returns, forms 1041 and form 706, as well as your state estate returns. Our tax preparers are efficient and timely.

Free Consultation

Visit us in Frederick (Frederick County) or Rockville (Montgomery County) for your free consultation. Our services are designed to create solutions to problems with estates and capital gains.

Phone (855) 557-2222, Fax (855) 557-2222.

Offices located in Rockville, Frederick MD and Vienna VA.

File My Maryland Incomes Taxes

When can I file my Maryland income taxes?

Business & Financial Solutions urges taxpayers to use our e-file services to receive refunds faster. BFS is an accounting and tax preparation firm, with convenient office locations in Vienna VA, Rockville and Frederick MD. We provide services to individuals and companies in Maryland, Virginia and Washington DC. We prepare and e-file income taxes for all states in the continental United States. So, when can I file my Maryland income taxes. Easy! You can file them now!

Why You Should Hire Professionals

As a result of the continuous changes in the tax laws, the IRS will not open the 2014 filing tax season until Jan. 31. But the new opening date for individuals to file their 2013 tax returns will also allow the IRS adequate time to program and test its tax processing systems. And the annual process for updating IRS systems was delayed in October following the 16-day federal government closure.

The April 15 tax deadline is set by statute and will remain in full effect. But the automatic six-month extension may be requested using form 4868. And the extension can be filed electronically or on paper. It is the goal of Business & Financial Solutions to simplify the tax filing process. But is you need an extension, we are happy to file it so that you have more time. And this can also be filed electronically.

About Our Firm

Business & Financial Solutions prepares federal income taxes for individuals, partnerships, corporations, estates and non-profits. And our services are reasonably priced, with high efficiency. Further, we deliver a timely product at a value. Our office locations facilitate easy access. And clients may also transmit documents via secure portal, email or fax.

Our firm will prepare and e-file state returns for residents in Montgomery County, Frederick County. Baltimore, Howard County, Carroll County, Prince Georges County. In fact we prepare state tax returns for all counties in Maryland, and any state in the country.

Please contact our CPA firm so that we may assist you in reliable tax preparation at a value. Business & Financial Solutions is a year-round firm. We do not close after tax season, like some other companies. We are here to provide you with assistance and tax planning for the years to come. E-file your Maryland income tax returns today.

Visit our CPA offices in Frederick or Rockville, Maryland, or Vienna Virginia. Serving Gaithersburg, Urbana, Bethesda, Potomac, Chevy Chase, Olney, Damascus, Hagerstown and Baltimore MD.

Office Locations in Rockville, Frederick, Vienna (Washington DC Metro Area)

Phone (855) 557-2222, Fax (855) 557-2222

E-mail: info@bfswebsite.com

Amend Your Tax Returns DC/MD/VA

When to File an Amended Tax Return?

You should file amended tax return if you need to correct any piece of information that will alter your tax calculations. Business & Financial Solutions can file an amended return (1040X) for taxpayers to make corrections to the filing status, dependents, income, deductions, or tax credits.

You can amend you return if you need to report additional income from a W-2, interest or dividends. Also, if other important information arrived after you filed your original tax return, you’ll need to file an amendment. Similarly, you would want to file and amended return if you need to remove dependents because you were not eligible to claim them.

There may be numerous other reasons why a taxpayer might need to file form 1040X. You should not file the 1040X if you are only correcting math errors. Because the IRS computers will check your math and correct any errors in calculation. Our tax professionals can help you with your specific areas of concern, and multiple tax issues. So if you think you need to amend a return, it might be beneficial to meet with one of our tax experts.

What We Need to File the Amended Return

Business & Financial Solutions will need to have your original return and all new documents. Because, this will be the starting point for filing the amendment to your return. We will need to reference your original tax return and any documentation that relates to your amendment such as proof of a new deduction. Or you may have to show proof of a new W-2 you didn’t have when preparing the original return. By the way, BFS can obtain information from the IRS by requesting copies of your W2s, 1099s or other documents. And we can pull tax or wage and income transcripts from government agencies.

Good Reason to Amend Return

There are many reasons that a taxpayer may want to file the 1040X. One of the primary reasons is to avoid perjury in the preparation of the income tax returns. The IRS rarely brings up an originally filed return in civil audits or in criminal prosecutions once the taxpayer has come forward and attempted to correct it by filing an amended return. However, to take advantage of this rule, you need to make the correction before the IRS finds your error. Moreover, you need to be aware that even filing an amendment–and fully accurate–tax return will not entirely immunize you if your initially filed tax return was fraudulent.

File Amended Tax Return

In amending a tax return a new 1040 will need to be filled out, you will use that to fill out the 1040X, which summarizes what is on your 1040. But it will also indicate the original amounts shown on your return. And 1040X will provide the new amounts and the differences between them. On the back of 1040X, we will explain the changes. Further, we will explain why those changes are being made to the tax return. And we explain what the numbers represent, and exactly where to find them, line by line. If extra space is needed, an attachment to the made to the 1040X.

Washington DC, Maryland and Virginia residents can benefit from our tax expertise. Taxpayers may contact our Vienna, Frederick or Rockville offices at the locations below. We are happy to be of assistance. Our offices can assist taxpayers in other jurisdictions as well, helping clients in states throughout the country. Please complete our contact form for additional information. Documents may also be forwarded to us via fax, e-mail, in person mail.

Visit our offices in Vienna, Frederick or Rockville (Washington DC Metro Area)

Phone (855) 255-2222, Fax (855) 557-2222

Email: info@bfswebsite.com

Tax Preparers Help Filing Income Taxes

Business & Financial Solutions is a reputable tax and accounting firm, dedicated to providing superb services for our clients. BFS is open year round to address tax planning and other tax services for our clients. And our tax preparers help filing income taxes in Frederick MD, Urbana, Thurmont, Jefferson and Brunswick MD. And our clients are also in other surrounding cities, townships, communities and neighborhoods throughout Frederick County.

Our tax experts file your returns right the first time. So you do not have to experience problems with the IRS, or the State of Maryland. Business & Financial Solutions also supports those taxpayers that have problems with the IRS and State of Maryland. Because a lot of taxpayers had their income tax returns prepared by seasonal tax firms. And unfortunately those firms are no longer open when needed.

At Business & Financial Solutions, we have tax preparers to help with filing returns. Our firm prepares income tax returns for individuals (Forms 1040 or 1040A), Estates and Trusts (Form 1041), Estates (Form 706), Corporations (Forms 1120 or 1120A), Partnerships (Form 1065), Non-profits (Forms 990, 990EZ or 990 post card). But we also prepare a variety of additional tax returns for Payroll, and applications for Subchapters. And we prepare and process non-profit form 1023 and applications for the Offer In Compromise.

Full Service Accounting

Our company delivers full-service accounting services. And our staff consists of accountants, enrolled agents, CPAs, consultants and bookkeepers. So we are able to meet client’s particular needs. Whether bookkeeping, accounting or taxation, all your requirements can be met under one roof. And the is no longer a need to get these services piecemeal through multiple firms. In short, the tax preparers, tax experts and tax accountants at Business & Financial Solutions can meet the needs of any taxpayer.

Call Business & Financial Solutions if you are a Frederick MD or Frederick County Maryland resident. And if you are facing issues with tax problems, need current tax returns or back taxes prepared, BFS has the solution. Email us. Or call and speak with us personally.

Visit us in Frederick MD, Rockville, Vienna (Washington DC Metro Area)

Phone toll free (855) 557-2222, Fax (855) 557-2222

e-mail: info@bfswebsite.com

Having Problems With Back Taxes or IRS Audits?

Back taxes Frederick MD, Bethesda or Rockville? Maybe we have a solution for you. In 2012, the IRS announced a program to help U.S. citizens resolve their filing obligations. And the program would allow taxpayers who owe little or no tax to avoid penalties and audits. Relatively new, the program was first launched in September 2012 and the IRS hasn’t said when it will end. Further, the program also allows you to make late elections to defer U.S. tax on earnings you might have from certain foreign retirement arrangements. This is just one of several ways that we can help you resolve back taxes solve problems with IRS audits.

Back Taxes Caught Up With You?

Has the IRS has finally caught up with you, then those old back tax returns you didn’t file prompted their attention. They are demanding your back tax returns. In the event that you do not file them, they will prepare them for you, and you will not like the results. It is never too late to file back taxes. However, there are tax laws for filing late tax returns.

There are issues such as how to locate missing tax documents, and how to handle IRS penalties and interest. To file your back tax returns, you will need the W-2s and/or 1099 forms you received for those tax years to report your income. You may be eligible for deductions and credits. You must pull together any receipts or other supporting records that prove your eligibility to claim them. BFS can assist by retrieving a lot of your information from various taxing entities.

What if I Owe the IRS Money?

You do not need to pay your full balance when you file your back tax returns. you can request a payment plan after you have filed the returns. Business & Financial Solutions can assist you with this. It is suggested that taxpayers send a partial payment when filing returns, if you are planning to request a payment plan. The IRS will want to see all returns filed before discussing a payment plan.

Business & Financial Solutions’ experienced tax professionals can help with IRS back taxes and problems associated with the Internal Revenue Services. Having a professional firm address these tax problems is a good idea. If you need advice on how to handle incomplete tax documentation, or an advocate who will negotiate with the IRS on your behalf.

Taxpayers must be compliant with all tax requirements before the Internal Revenue Service will entertain any discussion of payment plans or other forms of relief. This means that all filing requirements must be met, and any estimated tax payments for the current year must be made. Only then can we move forward with any resolution to the taxpayers’ tax problems.

Are Their Options for Settlement of Tax Debt

There are various methods in resolving tax debts. But you should be careful. Tax relief companies use the radio, television and the internet to advertise help for taxpayers in distress. If you pay them an upfront fee, which can be thousands of dollars, these companies claim they can reduce your taxes. Or they even claim they can eliminate your tax debts. And they boast that they can stop back-tax collection by applying for legitimate IRS hardship programs. The truth is that most taxpayers don’t qualify for the programs. These companies don’t settle the tax debt. And in many cases they don’t even send the necessary paperwork to the IRS requesting participation in the programs that were mentioned.

Business & Financial Solutions evaluates the circumstances of any potential client. It is impossible to determine if a taxpayer meets the guidelines for programs, such as OIC, Abatement of Penalties and Interest or Uncollectible Status unless we conduct an interview for evaluation. We only take case where we believe that the client qualifies. To do otherwise would be unethical and immoral. We ask that every potential candidate be honest and forthcoming with us. We can only help if we have all the facts. The success rate that we have in resolving tax matters like this is not perfect, but ranges in the high percentile. This is only because we prequalify the client before taking any form of payment for services.

What Are the Next Steps

If you have decided that you want to address your past tax issues, our firm is here to help. We offer nothing but the best services for our clients, and you have nothing to lose with your free consultation. Our Rockville office is just a few miles from the Bethesda, Chevy Chase and Potomac areas. Upon accepting a case documents may be forwarded to us via, fax, email, personal delivery or U.S. postal services. We look forward to being of service to you.

Offices located in Rockville, Vienna and Frederick.

Rockville MD Income Tax Services

Business & Financial Solutions is a professional, full service Tax Accounting firm, And we have a full range of services designed to meet the needs of individuals, businesses, families and estates. With Business & Financial Solutions, here’s what you get with our Rockville MD income tax services.

Tax Preparation

Your income tax return will be checked and rechecked by our computer software identifying potential problems. Because we want to make certain that there is nothing the IRS may look at more closely. We help reduce your risk for an audit. Additionally, a live person reviews your income tax return before it goes out.

Your tax returns are prepared by a tax professional and reviewed by another for the highest efficiency.

Your tax return can be filed electronically so you will get a refund back quicker. And if you elect for direct deposit, you can receive the refund sooner.

Our tax planners can show you how to adjust your payroll withholding to get more money back each week. Why give the IRS an interest free loan?

We can show you potential deductions to limit your tax liability for successive years. In addition to this, we can give you a list of commonly overlooked deductions to limit the following year’s tax liability.

Email or call us today for help with current and outstanding tax issues. Business & Financial Solutions can meet all your tax needs.

Accounting and Bookkeeping Services

We help small business owners. And we can assist you if you haven’t kept up your bookkeeping and accounting through the year. Your records may even need reconstruction. But that’s not a problem for us. Because we are skilled in this area. We can help with pulling this major task together.

We’ll prepare your bookkeeping for the year. And we can prepare a full Schedule C, as well as your personal income taxes. Then we’ll help you set up an easy system that allows you to keep your books current for future years.

BFS will assist individuals and businesses with amended income tax returns for prior years. If you are a Maryland resident and believe that you income tax returns were prepared incorrectly from a previous year. Our firm is happy to review the return for inefficiencies.

Tax Professionals in Rockville MD

Visit us in Frederick, Rockville or Vienna (Washington DC Metro Area). Call for an estimated schedule of fees.

We offer convenient tax Accounting services for residents of Gaithersburg, Kensington, Redland, Derwood, North Potomac, Bethesda, Randolph Hills, Colesville, Aspen Hill.

Tax Services for Businesses & Individuals

Business & Financial Solutions offers a wide range of tax services to individuals and businesses in a variety of industries. Our tax preparation is done at a value to our clients. An our offices are located conveniently in Rockville and Frederick MD. Additionally, we have an office location in Northern Virginia. Our services are designed to meet the needs of businesses, families and individuals.

Business & Financial Solutions offers clients professional income tax planning. And we have a professional bookkeeping department to help maintain the books for business clientele. And our accountants and CPAs help you manage future savings, deductions, exemptions and tax preferences.

BFS tax professionals excel in meeting each client’s specific needs in planning their goals. In fact, we are constantly evolving. All our employees undergo classes yearly. They are required to stay on top of the changes in the tax code, and financial and regulatory environments. Our professional tax services include:

Tax Preparation Services
Estate & Trust Planning
Bookkeeping/Write-up
QuickBooks Accountant Help
Accounting Services
IRS & State Audits, Reviews, Compilation
IRS Representation
Entity Selection, Restructuring
IRS Negotiations – Settlements
Offer In Compromise (OIC)

We take tax services to a new level.

Business & Financial Solutions also helps with professional representation for taxpayers facing all types of tax problems. And we address issues with Tax Audits, Tax Collection Notices and Actions, Appeals and Back Taxes. And as your authorized representative we can work with the IRS on your behalf. We help taxpayers resolve back taxes or other tax problems. In most cases, when the taxpayer has an authorized representative, they may not have to personally attend IRS audits or hearings.

Trust Planning Baltimore | Northern Virginia Tax Audits | Back Taxes McLean VA | Tax Preparation Help

Virginia State Tax Professionals

Business Tax Services in Virginia

Business & Financial Solutions tax preparers prepare multiple types of business tax returns in Virginia and other areas. You use federal tax Forms 1120 or 1120-A to pay income tax and Form 1120-W to pay estimated tax. Of course this is assuming you incorporated your business as a regular C corporation. Our CPA firm will assist companies with estimated taxes. And payment of self-employment tax is required for those whose net earnings for self-employment are at least $400.

However, Subchapter S Corporations use Form 1120S to file income tax return to the federal government. C corporations may use are Form 8109-B Deposit Coupon, Form 4625 Depreciation, and forms for employment tax. And this is assuming you have employees.

Form 990 may be sued to file annual returns for non-profit organizations.

Individuals filing form 760 – Resident Individual Income Tax Returns, and seeking help with the complications of this year’s deductions, may benefit from the help of our tax specialists. Our firm wants to make certain that you receive all the tax deduction in accordance to the Virginia Tax Code.

Help From Your CPA

Businesses require accurate financial records before filing tax returns. And this is where we come in. Because our bookkeepers can help bring your records up to date. Our accountants may need to review bookkeeping entries and make adjusting entries. You may require our CPAs to audit your books before tax preparation. In any of these events, our services may be useful to your company.

Contact Business & Financial Solutions if you reside in Leesburg, Fairfax, Alexandria, McLean, Reston, Sterling, Arlington, Falls Church or Tysons Corner. If you or your business is in need of tax services from a CPA firm, or help in resolving more complex tax issues, our CPA firm can help. BFS bookkeeping, tax and accounting services are design to simply your unique circumstances.

Providing professional tax services for individuals, businesses and non-profits in VA/MD/DC.

Business & Financial Solutions has office locations in Vienna VA, Rockville and Frederick MD.

Call toll free at (855) 557-2222