Professional Accounting and Tax Services

At Federal Tax Management, our goal is to provide the most comprehensive professional accounting and tax services. Our wide scope of experience enables us to effectively answer any question you have about your finances—whether personal or business-related.

• • ID Theft Cases: A taxpayer may be a victim of a fraudulently filed tax return. If this occurs, we can open an identity theft case to try to restore the account to good standing.

• • Audit Representation/Reconsideration: We may help taxpayers currently undergoing an audit or taxpayers with an audit reconsideration for a past audit determination. Typically for audit reconsideration, we will only be able to submit new information that was not previously submitted to the IRS.

• • Innocent/Injured Spouse: An innocent spouse application seeks a determination that a taxpayer should not be responsible for their spouse’s tax liabilities. This will depend on the individual’s facts and circumstances. An injured spouse request is usually a situation where taxpayers file jointly and one spouse’s tax liability prevented the other spouse from receiving a refund. In an injured spouse request, the IRS will proportion out the refund based on the income and tax withholding of each spouse to determine the proper refund distribution. The spouse that does NOT have a tax liability will typically be able to receive their refund while the IRS will keep the refund of the spouse with the tax liability and apply it to their debt.

• • Unreported Income: This situation occurs when a taxpayer files a tax return but forgets to report an item of income. The IRS will issue a cp2000 report, which assesses additional tax liabilities (as well as interests and penalties) for the unreported income.

• • Restricted Passports: The IRS is beginning to restrict new passport applications or renewal of passports if a taxpayer has a liability with the IRS and has not arranged to take care of their liabilities.

• • Disallowed Earned Income Credit/Child Tax Credit: If the IRS finds that a taxpayer did not have the right to claim a dependent child, then the IRS may disallow the earned income and/or child tax credit on the tax return. This often results in the taxpayer having to pay back these amounts to the IRS. Typically, the IRS will allow the taxpayer a chance to prove that they indeed have the right to claim the dependent child, but the burden of proof is always with the taxpayer.

• • Financial Statements: Taxpayers must submit a financial statement, Form 433-F or 433-A (433-B for businesses) for the IRS to determine if a taxpayer might qualify for a Currently Not Collectible (CNC) hardship or a payment plan. The IRS also uses the financial statement, 433-A(OIC) to determine if a taxpayer might qualify for an Offer in Compromise.

• • Bookkeeping: This is a process of keeping records of the financial affairs of a business. Typically, with a record of income and expenses, a bookkeeper may generate a profit and loss statement as well as a balance sheet for the business. These two pieces of information will be needed to file a tax return for the business.

• • Accounting Services: This is a general term for various services that a business may need, which may include bookkeeping services, payroll services, and tax return filing. It also may encompass other areas of service, such as audits.

 

Contact us if you have any questions about these professional accounting and tax services. At Federal Tax Management, we’re here to assist you with any tax concerns you may have.