Tax Services | 3 Solution Types for Businesses and Individuals, serving the Metro Detroit area

Sample of Services:

• Audit and tax debt representation before the IRS and state authorities
• Business and individual compliance – Tax preparation and debt 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 liability from flow-through businesses to individual returns

Tax planning is done primarily to mitigate liability. It involves creating scenarios and performing those activities to allow either a business or individual to take certain positions to allow deductions and credits.

This is done during the calendar or fiscal year to create scenarios and pursue activities to allow a taxpayer to take these positions during preparation and filing in the following year.

This is part of compliance. Proper accounting and bookkeeping are inputs that allow preparer’s to characterize and take positions that are the “most” beneficial to the business or individual filer.

Preparation and filing is a key component of compliance – it is a self-declaration of positions that are submitted to the Internal Revenue Service.

When the Internal Revenue Service does not agree with the positions or documentation that businesses and individuals file, they notify these filers through letters and will re-assess the additional amounts + penalties owed.

If you’re notified by the IRS, Do Not try to resolve this on your own. Always consult an experienced and competent professional.

Businesses

Business compliance includes necessary and required accounting and bookkeeping processes, such as adjusting entries, balancing and reconciling accounts and closing the books for either the fiscal or calendar year period in preparation for the inevitable return filing including relevant schedules. 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 an individual means that your return(s) are (accurately) and timely filed within the due dates specified by the IRS. Compliance also means that your obligations are settled in full or agreed-upon debt payments are being made. Your return(s) and the positions you take should reflect your lifestyle and personal situation.

Planning

• An active engagement where a plan is created to reduce or mitigate liability by managing those activities that occur during the year (not after the tax year).
• Plan complexities range from individuals looking to mitigate or defer their income or expand credits and/or deductions from their W2 income (with little to no changes in their personal situation) to individuals with flow-through business entities with seasonal income changes and big changes in their lifestyle or personal situation.
• Plans only work if these roadmaps are monitored for changes throughout the year and corrective actions are followed.
• Credits, deductions, income deferral, and quarterly payments are just a few of the methods used to defer or mitigate liabilities.

Preparation and Filing

• Tax preparation is not planning.
• Preparation and filing is mainly is concerned with “settling up” with the IRS (during the filing season) to determine if any additional money is owed or if the filer overpaid during the 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 exposure during the preparation cycle – since most suggestions or recommendations cannot be retroactively applied to the prior year.
• 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 this filing cycle.

As an Enrolled Agent, Mike Faremouth can represent businesses and individuals, before the IRS and State authorities in all matters involving unresolved tax debt and/or audits.

For IRS Representation, we focus on providing solutions to Clients for two distinct issues –

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

Effective Tax Debt Representation and Resolution.

Sole Proprietorship, Partnership, S-Corporation and C-Corporations, Reviewed. Choosing the better alternative – Partnership or S-Corporation for Federal tax purposes for your Business.

Tax Planning and Advice Prep for 4 Business Entity Types.

Potential IRS Red Flags.

September 2020 – Stock and Debt Basis – A Practical Overview.

August 2020 – Newsletter – About Entities, Deductions, and Pricing.

Avoid Frustration with Employer Identification Numbers – EIN.