Stop Paying the IRS Full Price
|
Have you ever been shopping during a sale, gotten to the register, and the cashier says: “Actually, I can give you another 25% off.” It wasn’t advertised. You didn’t know about it. But the cashier did. Would you say, “No thanks. I’d rather pay full price”? Of course not. Yet private practice owners do something similar with taxes all the time. They wait until tax season to talk to a tax professional. They get hit with a large tax bill and immediately start figuring out how to pay it. Or they already owe the IRS and start moving money, draining savings, or rearranging their finances to pay the balance as quickly as possible. But before you start moving mountains to pay the IRS, there’s an important question to ask: Do I actually have to pay this amount the way I think I do? Sometimes the answer is no. There may be legal tax strategies that could have reduced the bill before it was created. And when tax debt already exists, depending on the circumstances, there may be penalty relief, payment alternatives, or tax resolution strategies available that can reduce the overall financial burden. The problem is, you can’t take advantage of an option you don’t know exists. That’s why simply filing a tax return or automatically paying whatever the IRS says you owe isn’t always enough. You need someone who knows where to look, what questions to ask, and which strategies may be available to you. You wouldn’t willingly pay full price at the register if a discount was available. Don’t automatically pay full price to the IRS either. If you’re a private practice owner facing a large tax bill or an existing IRS problem, getting expert advice before making your next move could make a significant difference. Karitsa Kerns, CPA, EA
I help private practice owners heal costly tax problems, reduce taxes legally, and prevent future tax issues with proactive tax strategies and expert tax resolution. DEADLINES September 15th -
October 15th -
|
Welcome to the KNK Tax & Accounting Blog
Running a profitable private practice does not automatically mean you are paying the lowest amount of tax legally required. In fact, many private practice owners overpay—not because they did anything wrong, but because their tax strategy has not kept pace with the growth of their practice. Here are five common reasons: 1. Your business entity no longer fits the practice The entity that worked when your practice first opened may not be the most tax-efficient structure now. As revenue and...
The IRS recently announced a change that could make it easier for some taxpayers to get penalty relief. Starting this summer, the IRS will begin automatically removing certain penalties for taxpayers who have a strong history of filing and paying on time. In the past, you generally had to contact the IRS and request the First Time Penalty Abatement. Under the new process, called the Automatic Exemption from Penalty, eligible taxpayers will not have to ask. You may qualify if you filed your...
If the IRS accepted your tax return, congratulations—your return made it through the IRS processing system. But here’s what many private practice owners don’t realize: An accepted return is not the same as an accurate return. Many people are confused when I review prior tax returns, identify errors, missed deductions/opportunities, and explain how it's supposed to be done accurately and LEGALLY. This is also why many returns are later audited, amended, or assess additional taxes even though...