Self-employed, form 1099 Michigan taxpayers come in many different forms and can have significantly different tax needs when it comes to tax preparation and resolution of back taxes with the state of Michigan and the IRS. Some people have a small side business with very few expenses. They could be independent contractors. Others may have multiple businesses, employees, a home officer, and depreciation that need to be accounted for.
Speak with AUSTIN & LARSON Tax Resolution, an experienced Howell, MI based team of tax professionals. Our IRS tax assistance includes tax preparation services, compliance, audit help, and settlement of any IRS back income tax debt. Our tax preparation services could significantly reduce your taxes owed when the IRS comes calling. In evaluating your payment options, we provide valuable support that Michigan taxpayers can reliable on and trust. Call us now at 1-866-668-2953 for any self-employment/form 1099 tax help that you need.
Our Tax Relief Team in Michigan
Our team of tax experts featuring IRS Enrolled Agents, Tax Attorneys, and Tax Accountants will offer sound and practical tax relief solutions and compliance guidance. We have the knowledge and experience to help you complete your tax returns. Unlike a traditional Accountant firm, we will walk through your expenses with you to help ensure that you are claiming all of the tax deductions to which you are entitled. Our goal is to ensure that your IRS and Michigan state tax returns are accurate and filed in a way that is most beneficial to your tax resolution for current or back taxes.
Have Trouble Paying Current Year Taxes?
Many self-employed, form 1099 individuals have a difficult time paying their current year taxes. When you are self-employed, you are required to pay quarterly estimates. These estimates are due in April, June, September, and January. Although many self-employed individuals intend to pay their estimates on time, they find it difficult to come up with the large tax amount every few months. Many taxpayers fall behind on these payments, believing they will be able to catch-up on them when they file their tax return. However, the return then comes due and they are unable to pay the tax. Plus, they have additional tax penalties for not paying their estimates. This may happen for only one year, or it may turn in to multiple years of IRS back tax debt.
Once a self-employed individual finds themselves behind in their tax obligations, it can be a very difficult thing to catch-up on. Many people attempt to avoid the delinquent tax problem by not filing their returns. Some of the Michigan taxpayers we have worked with have multiple years of unfiled tax returns and no longer have any of their records. Some taxpayers attempt to pay the back taxes, but are then unable to keep up with their current year taxes. Some taxpayers feel that they are just so far behind that there are no tax resolution options for them. However, no matter what your problems are, we can determine what the optimal tax relief solution is for you.
Getting Into Tax Compliance
The first, and generally largest challenge is solving your tax problem is making sure that you get into compliance with paying your current year taxes to the IRS. We have tax compliance solutions to help you manage your quarterly estimated tax payments. We will also assist you in setting up techniques to manage your business or independent contractor books and records throughout the year so you always know where your business is at in terms of income and expenses for the year. By taking these steps, you can stop the cycle of continuing to owe the IRS and/or the State of Michigan every year.
Once you have the current year tax compliance under control, we will move on to resolving your IRS and Michigan back taxes. In order to resolve your taxes when you are self-employed, you will need to provide information on your current year income and expenses. This is another reason why it is so important to keep good books and records. The IRS will use both you past income, along with your current year projections to determine your records. As self-employed income can vary drastically from year to year, it is very beneficial to have a representative to fight for a lower income, instead of the IRS potentially using an income that is higher than you expect to earn in the current year. The IRS will also carefully comb through your business expenses. They may decide that some are not “ordinary or necessary” for your business, including the amount in your collectability. You need someone on your side that can negotiate your tax resolution solution based upon IRS collection standards, not the individual opinion of the IRS agent working your case. Failure to properly negotiate your income and expenses could result in the IRS placing you into an installment agreement that you cannot afford instead of more favorable back tax resolution, such as an Offer in Compromise.
If you are a Michigan taxpayer, let AUSTIN & LARSON Tax Resolution assist you with your self-employed/1099 business tax needs. We will help you get on track with paying your current year taxes and getting your records in order. We will then work with the IRS to get you the best resolution possible on your tax debt. Call us now at 1-866-668-2953 if you are self-employed, an independent contractor, and need 1099 tax help.