Tax Solutions | 3 Types for Businesses and Individuals in Woodhaven, MI.
Tax questions or tax headaches?
Skip the aspirin. Contact us.
Skip the aspirin. Contact us.
Sample of Tax Services
- Audit and tax debt representation before the IRS and state taxing authorities
- Business and individual tax compliance – Tax preparation and tax resolution
- Cost segregation (accelerated depreciation) studies and submissions
- Employer 941/944 (payroll) tax debt issues and trust fund recovery penalties
- Tax planning – Using proprietary methods and tools to avoid/minimize tax liability from flow-through Businesses to individual returns
Tax Solutions – 3 Types Summarized here – Click the Icons for more detail:
Tax Planning
Tax planning is done primarily to mitigate tax liability. It involves creating scenarios and performing those activities to allow either a business or individual to take certain tax positions to allow deductions and credits.
This is done during the tax year in question to create these scenarios and pursue activities to allow a taxpayer to affirmatively take these tax positions during preparation and filing in the following year.
Tax Preparation and Filing – Compliance
This is part of Tax Compliance. Proper Accounting and Bookkeeping are inputs that allow Tax Pro’s and Preparer’s to characterize and take tax positions that are the “most” beneficial to the taxpayer (business or individual).
Tax Preparation and Filing is a key component toward compliance since it is a self-declaration of tax positions that are submitted to the Internal Revenue Service.
Tax Debt Resolution
When the Internal Revenue Service does not agree with the tax positions or documentation that businesses and individuals file, they notify taxpayers through letters detailing their disagreement and will re-assess the amount of additional tax owed.
If you’re notified by the IRS for additional tax owed, Do Not pursue trying to resolve this on your own. Consult an experienced and competent Tax Pro.
Tax Solutions – About Compliance:
Businesses
Business tax compliance includes adjusting entries, balancing and reconciling accounts and closing the books for either the fiscal or calendar year period in preparation for the inevitable tax return/relevant schedules. Tax positions/treatments should reflect and be consistent with the type of activities of the business and in accordance with the Internal Revenue Code.
Individuals
Compliance for individual taxes means that your return(s) are (accurately) and timely filed within the due dates specified by the IRS. Tax compliance also means that your tax obligations are settled in full or agreed-upon tax debt payments are being made. Your return(s) and the tax positions you take should reflect your lifestyle and personal situation.
Differences between Tax Planning and Tax Preparation (we offer both):
Tax Planning
- Active engagement where a plan is created to reduce or mitigate tax liability by actively managing activities that occur during the tax year (not after the tax year).
- Plan complexities range from Individual plans that are limited to consistent W2 (or 1099) income, consistent filing status, with no big lifestyle events or changes to Individuals with flow-through business entities with seasonal income changes and big changes in their personal situation.
- Plans only work if these roadmaps are monitored for changes throughout the year and corrective actions are followed.
- Tax Credits, deductions, income deferral, quarterly payments and tax positions, are just a few of the methods used to defer or mitigate taxes.
Tax Preparation
- Tax preparation is not tax planning.
- Tax preparation is only concerned with “settling up” with the IRS (during tax season) to determine if any additional tax is owed or if the taxpayer overpaid during the tax year – A refund.
- Other than some suggestions (to open an IRA as a way to obtain additional deductions), there are very few ways to mitigate or reduce your tax exposure during the tax prep cycle – since most suggestions or recommendations cannot be retroactively applied to the prior tax year.
- Tax preparers are (often) not in a position (because there isn’t time during the tax season) or they lack a detailed understanding of your personal situation to implement any savings during the tax filing cycle.
We also resolve Tax Debt:
As an Enrolled Agent, Mike Faremouth can represent businesses and individuals in all matters involving unresolved tax debt issues and/or audits both at the federal and state level.
For tax debt representation, we focus on providing solutions to Clients for two distinct issues –
- Business payroll tax/trust fund recovery penalties, and
- Business audits.
