How to choose the right tax resolution company

Are you currently facing back tax problems? If so, chances are you may be looking for professional help to resolve them. When you are faced with the burden and stress of financial back tax debt, you’ll likely want someone you feel comfortable with, someone to help you through those troubling times.

There are a few things you’ll want to be aware of when choosing a tax resolution company:

• A tax representation company who is offering you a “once in a lifetime” opportunity to straighten out your issues with the IRS or promising to significantly reduce your taxes should be avoided. A tax representation company represents you with the IRS but cannot guarantee that you will receive any particular outcome in your case. The IRS has the final say on the results. It is the company’s job to analyze your situation and determine the best course of action for your particular case.

• Many companies hire former IRS employees, however, these employees do not have an inside connection to the IRS, nor can they negotiate on your behalf any differently than an Enrolled Agent, attorney or CPA can. Avoid any company advertising that they have an inside connection to the IRS.

• Avoid any tax representation company offering to settle your tax liability with the IRS for “pennies on the dollar.” Again, a tax resolution company cannot guarantee the results when it comes to dealing with the IRS.

• Many national tax resolution companies conduct their business over the phone, rather than meeting their clients in person. JK Harris’ Sales Consultants prefer to meet with their clients, by appointment only. JK Harris has over 325 convenient locations nationwide to help get you started on the road to fixing your tax problems with the IRS.

• A company who has longevity, and experience is the company to choose. The tax resolution industry is fast growing and many companies do not have the required experience that would ensure you feel comfortable in hiring them. Remember: the company that you choose to hire will be representing you before the IRS. You want a company that will be well-versed in IRS procedures and taxes. Choose a company you are comfortable with; make sure you hire someone you trust. The process of negotiating with the IRS can take months, even more than a year.

It is an important decision to hire a tax resolution team. Do not make the decision from an emotional place. Hire the right tax resolution company for you.

Did you forget something on your tax return?

So you filed your tax return and then you realized you forgot to include something very important. Now what do you do?

It’s simple. All you have to do is file an amended tax return. Use Form 1040X, the Amended U.S. Individual Income Tax Return form. It can be used to correct Forms 1040, 1040A or 1040EZ. This form can also be used to correct a return you filed electronically.

The next question: Do you really need to file an amended return? Did you make a simple mathematical error or did you simply report something incorrectly?

Here are a few guidelines to go by.

There is no need to file an amended return if:

You made a math error. The IRS will generally make that correction for you.

You forgot to include forms such as W-2s or schedules. The IRS will normally request those from you.

File an amended return if:

You incorrectly reported your filing status, dependents, total income, deductions, or credits.

Quick tips filing and completing an amended tax return:

In general, within three years from the date you filed the original return you must file the amended return or within two years from the date you paid the tax, whichever is later.

At the top of Form 1040X, enter the year of the tax return you are amending.

For each tax return you are amending, prepare a separate Form 1040X and mail each return in a separate envelope. The IRS processing center address in your area can be found on the Form 1040X instructions page.

If the changes you are making to your return involve another schedule or form, attach those to the 1040X.

If you are filing for an additional refund, you should wait until you receive the original refund before filing the 1040X. You may cash the original refund check because the IRS will simply send you an additional check.

If you owe additional taxes for the tax year 2008, file Form 1040X and pay the additional tax that you owe as soon as you possibly can. By doing this, you will limit the amount of interest and penalties that may accrue because interest is charged on any tax not paid by the due date of the original return, even if you filed an extension.

The normal processing time for amended returns is approximately eight to 12 weeks from the date the IRS receives form 1040X.

For more information on amending your tax return, visit www.irs.gov