Tax Solutions | 3 Types for Businesses and Individuals in Woodhaven, MI.

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

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.

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.

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 –

1. Business payroll tax/trust fund recovery penalties, and
2. Business audits.