Ben Butterfield’s New Book, OOPS!, Reveals the IRS Secrets You Need to Know
Are you overwhelmed by tax debt?
Struggling to navigate the confusing maze of IRS regulations?
Tax resolution specialist Ben Butterfield is here to help—and he’s pulling back the curtain in his brand-new book, OOPS!
This powerful guide simplifies complex tax concepts, breaking them down into a groundbreaking, easy-to-understand format. Ben has been hard at work distilling years of tax resolution experience into a book that gives you clear, actionable strategies to tackle your tax debt head-on. With OOPS!, you’ll get a clear picture of how to take control of your financial future.
What You’ll Learn in OOPS!
Ben doesn’t just explain the problem; he gives you the roadmap to solve it. Here’s a sneak peek of what’s inside:
- How to negotiate with the IRS like a pro and reduce your debt.
- Common tax pitfalls (and how to avoid them).
- The secrets behind IRS policies that they don’t want you to know.
- Step-by-step strategies for tackling tax debt in ways that work for YOU.
- Real-world examples and case studies that explain even the most complicated concepts in plain English.
Ben’s mission is simple: to empower you with expert knowledge, presented in a way that’s clear, relatable, and easy to understand, so you can navigate tax relief with confidence.
The Book the IRS Doesn’t Want You to Read…
Tax debt is a heavy burden, but Ben believes everyone deserves a fresh start.
With over a decade of experience in tax resolution, he’s helped countless people just like you resolve their IRS issues and regain financial freedom.
Now, he’s sharing his proven techniques in a straightforward, reader-friendly book.
Watch for the Big Release!
Mark your calendar—OOPS! by Ben Butterfield will officially hit the shelves on January 28th! This isn’t just another book about taxes; it’s your guide to financial empowerment.
Packed with expert insights, relatable examples, and proven strategies, OOPS! will transform the way you think about resolving tax debt.
This book is your chance to take control and start fresh. Be ready to grab your copy and start your journey to financial freedom.
But you don’t have to wait to get the help you need!
If you’re ready to tackle your tax challenges now, Ben is just a phone call away. Contact him today at (402) 779-7399 and take the first step toward relief.
Don’t miss out—stay tuned for updates and be among the first to experience the game-changing solutions in OOPS!
Your fresh start begins here.
Real Estate Agents and Tax Debt: Understanding the Challenges and Finding Solutions
Real estate agents play a crucial role in helping people buy and sell homes, but like many professionals, they often face their own unique set of financial challenges. One of the biggest struggles that real estate agents deal with is tax debt. Whether you're an independent agent or part of a larger team, tax issues can arise if you’re not careful. But why do real estate agents find themselves in tax debt? And how can you resolve it if it happens to you?
Why Do Real Estate Agents End Up with Tax Debt?
- Commission-Based Income Real estate agents typically earn their income through commissions, which means their earnings can fluctuate greatly depending on the market and the number of deals they close. During slow seasons or market downturns, agents may not make as much money, making it difficult to pay taxes on time.
- Self-Employment Taxes Many real estate agents work as independent contractors, meaning they are responsible for paying both the employer and employee portions of Social Security and Medicare taxes. These self-employment taxes can be substantial, and if agents don’t plan ahead, they may not have enough set aside to cover them.
- Irregular Cash Flow Real estate agents don’t receive a steady paycheck like employees in other industries. Instead, they rely on commission checks, which can come months apart. This makes it hard to budget for taxes and can lead to situations where agents end up with tax debt because they didn’t anticipate their financial obligations.
- Missed Deductions Real estate agents are entitled to a number of tax deductions, such as expenses for advertising, office supplies, car mileage, and even the cost of attending conferences or continuing education. However, many agents either don’t keep track of their expenses or are unaware of all the deductions they can claim, which can lead to overpaying taxes and falling behind on payments.
- Late Filing or Payments In the busy world of real estate, it’s easy to lose track of tax deadlines. If you miss a filing deadline or fail to pay your taxes on time, the IRS can impose penalties and interest that make your debt even harder to manage.
How Real Estate Agents Can Resolve Tax Debt
If you’re facing tax debt as a real estate agent, there are several ways to resolve it. Here are some options to consider:
- Installment Agreements One option is to set up an installment agreement with the IRS. This allows you to pay off your debt over time, making your payments more manageable. It’s a good solution if you’re not able to pay your entire tax debt in one lump sum.
- Offer in Compromise An Offer in Compromise (OIC) allows you to settle your tax debt for less than what you owe. This option is available if you can demonstrate that paying the full amount would cause financial hardship. The IRS will review your financial situation and may accept a lower payment based on your ability to pay.
- Penalty Abatement If you’ve incurred penalties for late payments or missed filings, you may be eligible for penalty abatement. This is a way to reduce or remove penalties if you have a valid reason for the delay, such as a medical emergency or financial difficulties.
- Currently Not Collectible Status If your financial situation is particularly dire, you may qualify for “Currently Not Collectible” status, which means the IRS will temporarily stop all collection actions. This gives you time to get your financial situation back on track before you have to pay the debt.
How BPB Tax Resolutions Can Help
Dealing with tax debt can be overwhelming, but you don’t have to face it alone. At BPB Tax Resolutions, Ben Butterfield has extensive experience helping real estate agents and other professionals resolve their tax issues. Whether you’re struggling with self-employment taxes, missed deductions, or penalties, Ben can help you find a solution that works for you.
If you’re a real estate agent dealing with tax debt, it’s important to take action as soon as possible. Call BPB Tax Resolutions today for a free consultation. We’ll review your situation, explore your options, and help you get the relief you need.
Reach out now and let’s get started!
Why Freelancers Often Face Tax Debt—and How to Resolve It
Freelancing offers incredible freedom. You set your hours, pick your projects, and enjoy the satisfaction of working for yourself. But with great freedom comes great responsibility—especially when it comes to taxes. Many freelancers find themselves in trouble with the IRS, often facing unexpected tax debt. Why does this happen so frequently, and what can you do to resolve it? Let’s break it down.
Why Freelancers Struggle with Taxes
- No Employer Withholding Taxes
When you work a traditional job, your employer deducts taxes from your paycheck automatically. Freelancers, however, are responsible for paying their own taxes. This includes not just income tax but also self-employment tax, which covers Social Security and Medicare. Many freelancers underestimate how much they owe or forget to set money aside, leading to a hefty bill come tax season. - Irregular Income
Freelancers don’t get steady paychecks. One month might be lucrative, while the next could be slow. This makes it harder to predict income and plan for taxes. As a result, some freelancers skip estimated quarterly tax payments, further compounding their tax debt. - Overlooking Deductions
Freelancers can claim numerous tax deductions for business expenses like home office use, equipment, travel, and internet. However, many either don’t know what they can deduct or fail to keep the necessary records. Missing out on deductions means paying more in taxes than necessary, increasing the financial burden. - Tax Code Complexity
The tax code is already challenging for the average person, but it’s even trickier for freelancers. With varying rules about self-employment taxes, deductions, and income reporting, mistakes are common. Even unintentional errors can result in penalties or an audit, which adds stress and potential financial consequences.
How Freelancers Can Resolve Tax Debt
- Assess Your Financial Situation
The first step to resolving tax debt is understanding how much you owe. Gather all your tax documents, including any notices from the IRS, to get a clear picture of your financial standing. - Communicate with the IRS
Ignoring tax debt won’t make it go away—in fact, it will likely make things worse. Reach out to the IRS as soon as possible to discuss your options. They may offer payment plans or other solutions to help you manage your debt. - Explore Tax Resolution Options
Depending on your situation, you might qualify for programs like:- Installment Agreements: A plan to pay off your debt in smaller, more manageable payments.
- Offer in Compromise (OIC): A chance to settle your tax debt for less than you owe, if you meet specific criteria.
- Currently Not Collectible Status: A temporary pause on collections if you’re unable to pay due to financial hardship.
- Work with a Tax Resolution Expert
Navigating tax debt on your own can be overwhelming. A tax resolution expert can review your case, handle negotiations with the IRS, and help you find the best path forward. They’ll also ensure you stay compliant with future taxes to avoid more debt.
Take Control of Your Tax Debt Today
If you’re a freelancer struggling with tax debt, you’re not alone—and you don’t have to tackle it alone, either.
At BPB Tax Resolutions, Ben Butterfield specializes in helping self-employed professionals resolve their tax issues and regain financial peace of mind. With years of experience and a personalized approach, Ben can guide you through the process and fight for the best possible outcome.
Call BPB Tax Resolutions today to schedule your free consultation. Let’s work together to resolve your tax debt and get you back on track.
Farmers and Tax Debt in Nebraska
Farming is a challenging and rewarding profession, but it also comes with its own unique set of financial hurdles. One of the most stressful challenges farmers face is dealing with tax debt. For many, tax issues are an unexpected complication that can spiral out of control if not addressed quickly. But why do farmers so often end up with tax debt? And what can be done to resolve it?
Common Reasons Farmers Face Tax Debt
- Fluctuating Income Farming income is often unpredictable, depending on factors like weather, crop yields, and market prices. If a farmer experiences a poor harvest or lower-than-expected prices, it can lead to cash flow issues. Without enough money coming in, it can be difficult to keep up with tax payments.
- High Operating Costs The cost of running a farm can be significant. Between machinery, seeds, fertilizers, and labor, farmers often take on a lot of debt just to keep their operations running. This can cause financial stress, and if tax payments are delayed, interest and penalties can quickly add up, making the situation worse.
- Overlooking Tax Deductions Farming has unique tax deductions, such as those for equipment, land, and even some livestock-related expenses. However, many farmers aren’t aware of all the deductions they’re entitled to, which can lead to overpayment or errors on their tax returns. When taxes are underpaid or miscalculated, the IRS may come knocking with a hefty tax bill.
- Self-Employment Taxes Farmers are often self-employed, which means they are responsible for paying both the employer and employee portions of Social Security and Medicare taxes. These taxes can be substantial, and if a farmer doesn’t plan for them or set aside enough funds, they can quickly fall behind.
- Delayed Filing or Payment Filing taxes late or missing payment deadlines can lead to penalties and interest. Farmers may be so focused on their day-to-day operations that they miss important tax deadlines. As a result, the IRS can impose penalties that escalate over time.
How Farmers Can Resolve Tax Debt
If you’re a farmer facing tax debt, it’s important to know that you’re not alone, and there are ways to resolve it. Here are a few options:
- Installment Agreements An installment agreement allows you to pay off your tax debt over time, in manageable monthly payments. This can provide relief if you don’t have the funds to pay your full tax bill upfront. It’s important to work with a tax professional to ensure your agreement is set up correctly.
- Offer in Compromise An Offer in Compromise (OIC) is a settlement with the IRS where they agree to accept less than the full amount owed. This option is available for taxpayers who are unable to pay their full tax debt, either because they cannot afford it or because the amount owed is greater than what they can realistically pay. To qualify for an OIC, you must prove financial hardship.
- Penalty Abatement If you’re facing penalties for late payments or missed filings, you may be eligible for penalty abatement. The IRS may reduce or remove penalties if you have a valid reason for the delay, such as a natural disaster, illness, or financial hardship.
- Currently Not Collectible Status If your financial situation is dire and you’re unable to pay any part of your tax debt, you may qualify for “Currently Not Collectible” status. This means the IRS will temporarily stop all collection actions, giving you time to improve your financial situation before revisiting the issue.
How BPB Tax Resolutions Can Help
If you’re a farmer dealing with tax debt, it can be overwhelming, but you don’t have to face it alone. Ben Butterfield and BPB Tax Resolutions specialize in helping farmers and others in the agricultural industry resolve their tax issues. With years of experience navigating the complexities of tax law, Ben can help you explore all available options to get your tax situation back on track.
Don’t let tax debt take away your peace of mind. Contact BPB Tax Resolutions today for a free consultation. We’ll assess your situation and guide you toward a solution that works for you.
Call now to get the help you need!
Tax Penalty Abatement: How to Get Rid of IRS Penalties in Omaha
Facing IRS penalties can be a financial and emotional burden. If you’re dealing with late filing, late payment, or other tax-related penalties, it’s crucial to know that the IRS offers relief programs that may help you reduce or eliminate those penalties. This process is called penalty abatement.
In this blog, we’ll walk you through what tax penalty abatement is, who qualifies for it, and how you can take action to get rid of those costly IRS penalties in Omaha.
What Is Tax Penalty Abatement?
Tax penalty abatement is a form of relief provided by the IRS to taxpayers who have been charged penalties for failing to meet tax obligations. These penalties typically arise from:
- Late filing of tax returns.
- Late payment of taxes owed.
- Failure to deposit the correct amount of taxes.
If you can demonstrate a reasonable cause for your failure to meet these obligations, you may be eligible to have the penalties reduced or completely removed.
Common Reasons for IRS Penalties
Taxpayers in Omaha may face IRS penalties for a variety of reasons. The most common causes include:
- Filing taxes after the deadline without an extension.
- Failing to pay taxes owed by the due date.
- Not reporting all income, such as freelance work or investment earnings.
- Incorrect filings that lead to underpayment or discrepancies.
When these situations arise, penalties and interest can start to add up quickly, turning a manageable tax bill into a much larger financial burden. That’s where penalty abatement comes into play.
Who Qualifies for Penalty Abatement?
The IRS may grant penalty abatement for several reasons, but the most common is demonstrating “reasonable cause.” This means you had a valid reason for not meeting your tax obligations. Common examples of reasonable cause include:
- Serious illness or medical emergencies.
- Natural disasters or other events beyond your control.
- Death of a family member.
- Relying on incorrect tax advice from a professional.
In addition, first-time penalty abatement is available to taxpayers who have no prior penalties for the past three years and who are otherwise in compliance with the IRS.
Steps to Request Penalty Abatement
If you believe you qualify for penalty abatement, here are the steps you need to take:
- Review Your IRS Notice: Identify which penalties have been assessed and review the notice for any deadlines or instructions from the IRS.
- Determine Eligibility: Work with a tax professional to assess whether you qualify for abatement due to reasonable cause or first-time abatement.
- Submit a Written Request: You’ll need to submit Form 843, Claim for Refund and Request for Abatement, along with any supporting documentation, to explain your circumstances to the IRS.
- Follow Up: After submitting your request, the IRS may take several weeks to process it. Be prepared to follow up and provide additional information if necessary.
How a Tax Professional Can Help
Navigating the process of penalty abatement can be complex, especially when dealing with the IRS. A tax resolution professional can help you:
- Evaluate your eligibility for abatement and identify the best course of action.
- Gather necessary documentation to support your claim for reasonable cause.
- Submit and follow up on your abatement request, ensuring the process moves smoothly.
- Negotiate with the IRS to reduce or eliminate penalties, helping you save money and avoid further complications.
The BPB Difference
When it comes to resolving tax issues in Omaha, Ben Butterfield with BPB Tax Resolutions is your local expert. With years of experience in tax resolution, Ben understands the unique challenges Omaha residents face and is dedicated to helping clients secure the best possible outcomes.
Ben offers personalized, compassionate service, ensuring that every client receives the attention and expertise they deserve. Whether you need help with penalty abatement, unfiled returns, or other IRS problems, Ben Butterfield can guide you through the process with ease.
Take Action Today
Don’t let IRS penalties continue to pile up. Contact Ben Butterfield today at (402) 779-7399 for a free consultation. Let him help you request penalty abatement and resolve your tax issues before they escalate. Take control of your tax situation and get the relief you deserve!
Why You Shouldn't Ignore the IRS in Omaha
Receiving a notice from the IRS is a stressful experience. It’s tempting to push it aside and hope the problem will go away, but ignoring the IRS is never a good idea.
Whether it’s a letter about unpaid taxes, unfiled returns, or an upcoming audit, failing to respond can result in significant consequences that are far worse than the initial problem.
Here’s why ignoring the IRS in Omaha can lead to bigger troubles, and how working with a tax resolution professional can help you avoid them.
What Happens When You Ignore the IRS?
1. Penalties and Interest Add Up
If you owe taxes and don’t pay or respond to the IRS, interest and penalties will begin to accrue on your balance. These penalties can quickly balloon what started as a manageable amount into a major financial burden. The longer you wait to address the issue, the more you’ll owe.
2. Wage Garnishments and Bank Levies
The IRS has the power to collect unpaid taxes through wage garnishments or bank levies. This means they can take a portion of your paycheck or freeze your bank account until the tax debt is paid off. These actions can be devastating to your financial stability and personal life.
3. Property Liens and Seizures
If you continue to ignore IRS notices, the government may place a lien on your property, making it difficult to sell or refinance your home. In extreme cases, the IRS can seize assets, such as your car or real estate, to satisfy your tax debt.
4. Damage to Your Credit
IRS tax liens are public records, which can significantly damage your credit score. This makes it harder to secure loans, rent property, or even get approved for a credit card. The negative impact can follow you for years.
How a Tax Professional Can Help
Ignoring the IRS will only make your tax issues more complicated, but you don’t have to face these problems alone. A tax resolution professional can help you navigate the complexities of tax law, negotiate with the IRS, and guide you toward the best possible outcome for your situation.
Here’s how a tax professional can assist you:
- Negotiate with the IRS to lower your tax debt or set up a manageable payment plan.
- Stop wage garnishments and levies before they start.
- Settle back taxes and reduce penalties through IRS relief programs like Offer in Compromise.
- File delinquent tax returns and correct any discrepancies.
- Protect your assets from potential liens or seizures.
Working with a tax professional can ease the stress of dealing with the IRS, providing you with the expert guidance you need to resolve your issues efficiently.
The Ben Butterfield Difference
While any tax professional can help resolve IRS issues, Ben Butterfield with BPB Tax Resolutions brings a local approach to his services, understanding the unique tax challenges Omaha residents face. Ben has years of experience helping individuals and businesses in the area overcome tax problems, from wage garnishments to unfiled returns.
When you choose Ben Butterfield, you’re choosing someone who is:
- Experienced in handling complex tax resolution cases with proven results.
- Dedicated to providing personalized service tailored to your specific situation.
- Knowledgeable about local and federal tax laws, ensuring the best possible outcomes.
- Accessible to Omaha clients, offering free consultations and a deep understanding of local concerns.
Take Action Today
If you’ve received a notice from the IRS, don’t wait. Ignoring it will only make things worse. Contact Ben Butterfield at (402) 779-7399 today for a free consultation. Let him help you resolve your tax issues before they escalate into bigger financial problems. Don’t let the IRS take control—take control of your future today!
CP3219A Notice in Omaha
The CP3219A notice, also known as a “Notice of Deficiency,” is sent by the IRS when they believe you owe more than you reported on your return.
If you’ve received this letter, it’s crucial to take it seriously. Ignoring it could lead to more serious consequences, including the IRS assessing additional tax without your input.
What the CP3219A Notice Means
Discrepancy in Reported Income: The IRS has found a difference between what you reported on your tax return and the information they have on file. This could be due to unreported income, incorrect deductions, or another error.
IRS Proposal: The notice explains the IRS's proposed changes to your tax return, including the amount of additional tax they believe you owe.
Time-Sensitive: You have 90 days from the date on the notice to respond or petition the U.S. Tax Court. If you don’t, the IRS will assess the additional tax, and you’ll lose the right to challenge it in court.
Steps to Take When You Receive a CP3219A:
Review the Notice Carefully: Look over the details to understand what changes the IRS is proposing. Compare the notice with your original tax return to see if the IRS’s changes are accurate.
Gather Documentation: If you disagree with the IRS’s changes, collect any documents or records that support your original return. This could include bank statements, receipts, or other proof of income and deductions.
Respond Promptly: You can either agree with the IRS’s changes or dispute them. If you agree, you can pay the amount due or set up a payment plan. If you disagree, you’ll need to submit Form 5564 or file a petition with the U.S. Tax Court within the 90-day window.
Why Ben Butterfield is the Expert You Need
Dealing with a CP3219A notice can be stressful and confusing, especially if the proposed changes are significant. This is where expert help can make all the difference. A tax resolution professional can review your notice, help you gather the right documentation, and communicate with the IRS on your behalf.
Ben Butterfield, founder of BPB Tax Resolutions, LLC, has over 25 years of experience in dealing with IRS issues like the CP3219A.
As a Certified Tax Resolution Specialist and enrolled agent, Ben knows how to navigate the complexities of IRS notices, represent you effectively, and ensure the best possible outcome. His proven track record of helping contractors and small business owners resolve their tax issues makes him the trusted choice for resolving this type of IRS notice.
If you’ve received a CP3219A notice, don’t delay. Call Ben Butterfield at BPB Tax Resolutions today for a free consultation at (402) 779-7399. Take action now to protect your rights and get the resolution you deserve.
Why Contractors Often Get Into Tax Debt—And How to Get Out
As a contractor, you enjoy the freedom of being your own boss, but that independence also comes with challenges—especially when it comes to taxes.
Unlike traditional employees, contractors don’t have taxes automatically withheld from their income. This creates an extra layer of responsibility that can easily lead to tax debt if not handled correctly.
Why Contractors Struggle With Tax Debt
Irregular Income: One of the biggest challenges contractors face is fluctuating income. Some months you’re busy, while other times, business is slow. Without a steady paycheck, it can be difficult to predict how much you’ll owe in taxes each year.
Failure to Pay Estimated Taxes: Contractors are required to pay quarterly estimated taxes to avoid penalties, but many don’t realize this or don’t set aside enough money throughout the year. Missing these payments can lead to a large tax bill come filing season.
Tax Deductions: While contractors can deduct business expenses like supplies, mileage, and office space, navigating which deductions are valid and keeping accurate records can be confusing. Missing out on key deductions or making errors in calculating them can also lead to problems.
Self-Employment Taxes: In addition to regular income tax, contractors are responsible for paying self-employment taxes (Social Security and Medicare). These taxes can add up quickly and catch contractors off guard if they’re not prepared.
How to Get Out of Contractor Tax Debt
If you’ve found yourself in tax debt as a contractor, don’t panic—there are options available to help you get back on track:
Set Up a Payment Plan: If you owe more than you can afford to pay all at once, the IRS offers installment agreements. This allows you to make manageable monthly payments and avoid further penalties.
Offer in Compromise: If paying the full amount is impossible, you may qualify for an Offer in Compromise (OIC), which allows you to settle your tax debt for less than you owe. The IRS considers your ability to pay, income, expenses, and asset equity when reviewing OIC applications.
Penalty Abatement: If you’ve incurred penalties for late payments or underpayment, you might be able to request penalty abatement. The IRS may forgive penalties if you have a valid reason, such as financial hardship or medical issues.
Professional Help: Navigating tax debt solutions on your own can be overwhelming. That’s why working with a tax resolution specialist is crucial. A professional can negotiate on your behalf, ensure you qualify for the best relief programs, and help prevent future tax problems.
Why Ben Butterfield is the Expert You Need
When it comes to tax debt relief, Ben Butterfield is the trusted professional who will make all the difference in finding you the best possible solution.
As the founder of BPB Tax Resolutions, LLC, and a Certified Tax Resolution Specialist, Ben has over 25 years of experience in accounting and finance. His in-depth knowledge of IRS policies and procedures means he knows exactly how to resolve tax issues for contractors.
Ben’s expertise as an enrolled agent—one of the highest credentials in tax resolution—allows him to represent clients in virtually any tax matter and before any IRS office.
Whether you’re dealing with back taxes, wage garnishments, or mounting penalties, Ben will create a personalized plan to help you regain control of your financial future.
Don’t let tax debt keep you from running a successful contracting business. Call BPB Tax Resolutions today at (402) 779-7399 for a free consultation with Ben Butterfield. Let’s get you back on the path to financial freedom!
CP71A in Nebraska
What is the CP71A Notice?
If you’ve received a CP71A letter from the IRS, it’s time to take action. This notice is a yearly reminder that you still have an unpaid balance with the IRS and that interest and penalties are continuing to accrue. The CP71A isn’t something you can afford to ignore, but understanding what it means and what you can do about it can prevent the situation from spiraling further.
The CP71A letter typically outlines the amount you owe, including any additional penalties and interest that have been added to your original tax debt. While it may not come with an immediate threat of enforcement action, the longer you wait to address the issue, the more difficult it becomes to resolve. Interest and penalties continue to build, and ignoring it could eventually lead to more aggressive collection actions like liens or wage garnishments.
What I Should Do Next?
If you’ve received this notice, it’s important to verify the balance and ensure it matches what you believe you owe. The next step is to decide on a plan of action to resolve the debt. Depending on your situation, you could consider payment arrangements, debt reduction programs, or even applying for penalty relief.
That’s where professional guidance comes in. Navigating IRS notices and tax debt on your own can be overwhelming, but a tax resolution expert can help you understand your options and deal with the IRS on your behalf.
The BPB Tax Resolutions Difference
Ben Butterfield, founder of BPB Tax Resolutions, LLC, is the expert you need to handle your CP71A notice. With over 25 years of experience in accounting, finance, and IRS tax resolution, Ben understands exactly how to tackle situations like yours. As an enrolled agent and Certified Tax Resolution Specialist, he knows the most effective strategies to help you resolve your debt and put an end to the constant IRS notices.
If you’ve received a CP71A letter, don’t wait. Reach out to Ben Butterfield today at BPB Tax Resolutions for a free consultation. Call (402) 779-7399, and take the first step toward resolving your tax debt.
Tax Resolution in the Salon Business
Owning a salon or renting a chair in one can be a fulfilling career choice, offering the freedom to be your own boss and the opportunity to create a loyal clientele. However, this independence also comes with significant responsibilities, especially when it comes to taxes. Many salon owners and chair renters find themselves in trouble with the IRS, often due to common pitfalls and misunderstandings about tax obligations.
Why Salon Owners and Chair Renters Face IRS Issues
- Misclassification of Workers: One of the most common issues arises from misclassifying employees as independent contractors or vice versa. Salon owners might incorrectly classify their workers, leading to issues with payroll taxes and worker benefits.
- Cash-Based Income: Many salon services are paid for in cash. Failing to accurately report all income can lead to discrepancies and trigger IRS audits. It's essential to keep meticulous records of all transactions.
- Deduction Errors: Salon owners and chair renters often miss out on legitimate deductions or mistakenly claim non-deductible expenses. For instance, personal grooming supplies or clothing used outside of work might be incorrectly written off.
- Estimated Taxes: Independent contractors and small business owners are required to pay estimated taxes quarterly. Missing these payments or underestimating income can result in hefty penalties and interest.
- Inadequate Record-Keeping: Poor record-keeping is a significant issue. Without proper documentation of income and expenses, proving deductions and income accuracy during an audit becomes challenging.
Steps to Resolve IRS Issues
- Accurate Classification: Ensure that all workers are correctly classified. If you're unsure, consult with a tax professional to determine the correct status for each worker.
- Comprehensive Record-Keeping: Maintain detailed records of all transactions, including cash payments. Use accounting software to help track income and expenses accurately.
- Regular Tax Payments: Make sure to pay estimated taxes quarterly to avoid penalties. Use past income as a guideline, and adjust as necessary throughout the year.
- Proper Deductions: Familiarize yourself with the tax deductions available to salon owners and chair renters. Keep receipts and documentation for all business-related expenses.
- Seek Professional Help: If you're already in trouble with the IRS, it's crucial to seek professional assistance. A tax resolution expert can help you navigate the complexities of IRS negotiations, payment plans, and penalty abatements.
Why Hiring a Professional is Crucial
Tax issues can be overwhelming and stressful, especially when dealing with the IRS. Hiring a professional can provide peace of mind and ensure that your case is handled correctly and efficiently.
Ben Butterfield, the owner of BPB Tax Resolutions, has spent the past 10 years helping hundreds of clients resolve their tax issues. His expertise and dedication can help you get back on track. Call (402) 779-7399 now to schedule a free consultation and take the first step towards resolving your tax problems.
