LMU Consulting Group

We’re deep into tax season, and IRS collection efforts are showing no signs of slowing down. Your CPA, accountant, or tax preparer is likely swamped with hundreds of filings and may not have the capacity to address critical IRS deadlines. While they have your best interests at heart, they might not have the time—or specialized expertise—to navigate complex IRS collection procedures. Tax preparers typically focus on bookkeeping and filing returns, but when it comes to IRS collections, you need an expert who understands the system and can help protect your business. #IRSCollections #TaxResolution #SmallBusinessFinance #TaxDebtRelief #LMUConsulting #TaxSeason #BusinessOwners

Installment Agreements are IRS-approved payment plans that allow taxpayers to resolve back tax debt through affordable monthly payments rather than paying the full balance upfront. These agreements provide flexibility for individuals and businesses dealing with IRS tax liabilities, helping them avoid aggressive collection actions such as wage garnishments, bank levies, and tax liens. Here's an example of a recent case that our team was able to secure an Installment Agreement for: https://lnkd.in/etY7TGg7

Here's something to think about: IRS collections do NOT stop during tax season. Often, IRS Revenue Officers will request LOADS of information on tight deadlines (right at the peak of tax season) So, what's the problem? Well, your accountant or tax preparer will be absolutely swamped filing taxes for their book of business. So if the IRS is requesting information that you rely on your tax professional to give you...best of luck. In scenarios like this, it may be wise to; 1) Prepare ahead of time. People procrastinate and wait until the buzzer to file their taxes. To avoid being at the mercy of your tax professionals calendar, begin gathering documents NOW. 2) Request an extension. Sometimes (not always), IRS Revenue Officers will be understanding of the situation and grant an extension to provide information/documents requested. It's important to understand that when the IRS requests information, not providing it in a timely manner will likely result in collection action like Notice of Intent to Levy (accounts receivable seizures, bank account seizures, garnished wage, etc) or Notice of Federal Tax Lien. ***Reminder*** LMU Consulting Group does offer free consultations. Contact us to get an understanding of where you stand with the IRS and what options you have.)

The tax season officially began yesterday, January 27th. Per IRS.gov, here are some tools you can use to file on time: "Free tax filing options The IRS offers?free online?and in-person tax preparation options for eligible taxpayers through?IRS Free File,?IRS Direct File?and?Volunteer Income Tax Assistance and Tax Counseling for the Elderly?programs. IRS Free File.?Taxpayers with income of $84,000 or less last year can use?IRS Free File?Guided Tax Software now through Oct. 15. IRS Free File Fillable forms, a part of this program, is available at no cost to any income level and provides electronic forms that people fill out and e-file themselves, also at no cost. Direct File.?Now open in 25 participating states, taxpayers can use Direct File to file online directly with the IRS for free. It is a free web-based service – available in English and Spanish – that works on mobile phones, laptops, tablets or desktop computers. It guides taxpayers through a series of questions to prepare their federal tax return step-by-step. Direct File automatically guides taxpayers to state tools to complete their state taxes. Get help from IRS customer service representatives through a live chat feature in English and Spanish. Interested taxpayers can go to?directfile.irs.gov, where they can determine if they are eligible. Volunteer Income Tax Assistance (VITA).?The VITA program offers free tax help to people who generally make $67,000 or less, persons with disabilities and taxpayers whose preferred language is not English. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals. In addition to VITA, the Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 and older, specializing in questions about pensions and retirement-related issues unique to seniors. MilTax.?This is a Department of Defense program available to members of the military and some veterans with no income limit.?MilTax?generally offers free return preparation and electronic filing software for federal income tax returns and up to three state income tax returns."

News from the IRS for individuals and businesses affected by the southern California Wild Fires. IR-2025-10, Jan. 10, 2025 "WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in southern California affected by wildfires and straight-line winds that began on Jan. 7, 2025. These taxpayers now have until Oct. 15, 2025, to file various federal individual and business tax returns and make tax payments. The IRS is offering relief to any area designated by the?Federal Emergency Management Agency (FEMA). Currently, individuals and households that reside or have a business in Los Angeles County qualify for tax relief. The same relief will be available to any other counties added later to the disaster area. The current list of eligible localities is always available on the?Tax relief in disaster situations?page on IRS.gov."

New Year, Same Results... 2024 was an incredible year for our team and our clients. Keeping the IRS at bay so that our clients could focus on maintaining and growing their businesses was a top priority. Further, our team of experts was able to resolve countless IRS and State back tax cases for our clients. From penalty abatements to Offers in Compromise and Installment Agreements, many of our clients were able to get a fresh start and continue focusing on what is important (business growth and individual peace of mind).

As the year comes to an end, we would like to wish everyone a very Happy Holidays and New Year. ???? We'd like to express an extra special thanks to our superb clients and partners. Here's to an amazing 2025! ??

After an Offer in Compromise is accepted, the taxpayer must remain "Current and Compliant" for a period of five years. If tax returns are not filed and balances are not paid on time, the IRS can revoke the settlement and reassess the original balance. This is what the IRS has to say about this topic: "You must remain in compliance with filing and payment of all tax returns for a period of five years from the date the offer in compromise is accepted, including any extensions. If you do not pay the offer in compromise on time and remain in compliance during the five-year period after the offer in compromise is accepted, including any extensions, your offer will default." "The IRS may default the offer in compromise and reinstate the entire tax liability, less all payments and credits received."

There is a five year window of compliance that the IRS looks at after an Offer in Compromise is accepted. That means if a tax return is filed and/or paid late, the IRS could go back and revoke the Offer in Compromise. Here are some tips to stay on top of your tax obligations: 1) File and Pay Early Depending on when the tax return is due, aim to file and pay in full well before the due date. That means if the return is due on April 15th, you should aim to have everything squared away by March 15th at the latest. 2) Work With a Professional If you file your own taxes, consider working with a reputable professional that will help keep you accountable and make sure everything is filed and paid timely. It will help if you inform them of your situation and let them know that you are REQUIRED to maintain current and compliant status. 3) Plan Ahead of Time Proper accounting and budgeting is crucial when it comes to filing and paying taxes. Set up an automatic deposit from your primary checking account into a tax account. It is also important to have proper bookkeeping to avoid scrambling. Using something like QuickBooks (https://lnkd.in/gFUEuDB) or FreshBooks (https://lnkd.in/dcg2vaA) that sorts your income and expenses automatically could be a massive time saver.

?? IRS Update: The 2025 Tax Rates ??