Tax identity theft happens when your social security number is compromised for the purposes of tax fraud, where a refund or a credit can be falsely claimed. This leads to issues relating to filing your taxes. If your personal information is compromised, we can help you file the appropriate documents to process your claim with the IRS.

Owing back taxes can lead to the IRS seizing your wages, social security income, property, and your bank accounts until you pay what you owe. You have 3 years to claim a refund but you are still responsible to pay any taxes owed. Start with filing the most current tax year and work your way back to previous years unfiled. Once you have the total amount of back taxes that is owed, you can request an installment agreement with the IRS with Form 9465 if you can’t make the payment within 120 days.

Failure to file tax returns can lead to major penalties and interests, which can lead to imprisonment. This is referred to as tax evasion. In this case, filing the tax return as soon as possible will help you avoid more penalties and interests. If you owe a balance, you can explore payment options with the IRS.

Amendments are needed if there are any additional changes, documents, or corrections needed to an existing or previously filed tax return. Changes such as adding or removing a dependent, claiming a missed credit, or adding income are common reasons to file Form 1040X.

Audits occur when the IRS wishes to look into the information that was submitted with your filed tax return. Any discrepancies or incomplete information can lead to an audit. If you receive a notice from the IRS requesting more information, call us so we can help you provide the necessary documentation.

If you need more time to file your taxes before the deadline, you may need an extension. Extensions can be requested through Form 4868. This will give you 6 months to file your taxes, but you will still be responsible for any interest payments if a balance is owed. If there is a balance due, there is a late-filing penalty each month of up to 5% of the amount due (up to 25%) and a monthly penalty of 0.5% of your unpaid taxes for failure to make your payment on time.

You will usually receive your refund in 21 days if you file electronically and choose to receive your refund via direct deposit. If you file by mail, processing times will delay your refund further.

A legitimate tax preparer will have an IRS Preparer Tax Identification Number and will sign your tax return with that number. Knowing this information will help you avoid being scammed and will protect your valuable information.

Beneficial ownership information refers to the Corporate Transparency Act passed by Congress to protect business owners from fraudulent crimes and illicit activities from bad actors with ill-gotten gains. Beginning on January 1, 2024, business owners are required to report its beneficial owners (people who own and control the business) and company applicants (direct filers of company registration documents and/or directors of the filers of company registration documents).

A reporting company is required to report its beneficial owners. If a company was created on or after January 1st, 2024, it is required to report its beneficial owners AND the company applicants. If the company was established before January 1, 2024, they are not required to report the company applicants.

Beneficial owners are individuals who exercises substantial control over the company or hold ownership interests of at least 25%. If the reporting company is an LLC, for example, and has a sole owner, that individual is a beneficial owner because they own at least 25% of the company's interests. Reporting companies may have multiple beneficial owners, however, and there is no maximum number of BO's to report. If a reporting company has two owners, they would both be BO's.

A company applicant is anyone who participated in the registration of the company to prepare the necessary documents. If an individual prepares the documents and submits it themselves, that makes them a Direct Filer company applicant. If an individual prepares the documents and directs another individual to file it, the second individual becomes the Direct Filer and the first individual becomes the Director/Controller of the act of filing. Both individuals must be reported as company applicants in order to submit an accurate BOI report.

If your company was established before January 1, 2024, you will have to report your Beneficial Ownership Information before January 1, 2025. These companies also do not have to report its company applicants. If your company was created after January 1, 2024, you have 90 calendar days to report your Beneficial Ownership Information AND the company applicants from the effective registration date. If your company is created on or after January 1, 2025, you will have 30 days to report your Beneficial Ownership Information AND the company applicants after the notice that the creation or registration was effective.

If companies do not submit the Beneficial Ownership Information reports before the deadline, it will result in civil or criminal penalties. The civil penalties are fines of up to $500 per each day that the violation continues. The criminal penalties include up to 2 years imprisonment or a fine of up to $10,000.

Inaccurate information may result in the same penalties as not reporting on time. If a reporting company needs to update their BOI report, they have to submit it within 30 calendar days after a change occurs. Changes include (but are not limited to) a DBA name change, a change of beneficial owners, or a change in the beneficial owner(s) name, address, or identifying number. If a company becomes exempt after already filing a report, they need to submit a new BOI report indicating they are newly exempt. If a reporting company needs to make a correction to their BOI report, they have to submit it within 30 calendar days after becoming aware of the inaccuracy.