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.
Help! I Have Tax Debt from Flipping a House. What Do I Do Now?
Flipping houses can be an exciting and profitable venture. Transforming neglected properties into beautiful homes not only revitalizes neighborhoods but can also yield substantial financial rewards.
However, many house flippers find themselves facing unexpected tax debt, turning a dream project into a financial nightmare. Understanding why this happens and how to address it is crucial for anyone in the business.
Why Does Tax Debt Happen in House Flipping?
- Capital Gains Tax: The most common tax issue flippers face is capital gains tax. When you sell a property for more than you paid for it, the profit is considered a capital gain. If the property was held for less than a year, this gain is taxed at a higher short-term rate, which can be as high as 37%. For properties held longer, the rate is typically 15% or 20%.
- Self-Employment Tax: Many house flippers operate as sole proprietors. In this case, profits from flipping are considered self-employment income, subject to self-employment tax in addition to regular income tax. This can significantly increase your tax liability.
- Lack of Proper Deductions: Properly tracking and claiming deductions can reduce your taxable income, but many flippers fail to do this effectively. Expenses such as renovation costs, property taxes, insurance, and interest on loans are deductible, yet they are often overlooked or improperly documented.
- Overlooking State Taxes: Each state has its own tax regulations, and some impose additional taxes on capital gains. Flippers focusing only on federal taxes may be surprised by a hefty state tax bill.
Solutions to Manage and Reduce Tax Debt
- Tax Planning: Engage in proactive tax planning. Consider the timing of your flips to benefit from long-term capital gains rates and strategize your sales to minimize tax impact.
- Proper Business Structure: Structuring your business correctly can reduce tax liabilities. For instance, forming an LLC can offer tax advantages and liability protection.
- Track All Expenses: Meticulously document all renovation costs, travel expenses related to the project, and other deductible expenses. Use accounting software or hire a professional to ensure nothing is missed.
- Payment Plans and Settlements: If you find yourself with a significant tax debt, don't panic. There are options such as installment agreements or offers in compromise that can make the debt more manageable.
- Hire a Tax Professional: Working with a tax resolution expert like Ben Butterfield of BPB Tax Resolutions can help you navigate complex tax laws, identify all possible deductions, and develop a strategy to minimize your tax burden.
Flipping houses can be lucrative, but it's essential to be aware of the tax implications and take steps to mitigate potential liabilities.
At BPB Tax Resolutions, we specialize in helping individuals like you navigate the complex world of tax debt.
Contact BPB Tax Resolutions Today
If you're struggling with tax debt from house flipping, don't wait until it spirals out of control.
Let us help you find the best solution to your tax problems so you can focus on your next big flip with confidence.
Call Ben Butterfield at BPB Tax Resolutions today at (402) 779-7399 for a free consultation!
What Should I Do if I Have an IRS Balance?
Are you feeling the weight of an IRS balance?
If so, you're not alone. Many people find themselves in this situation, unsure of the best course of action to resolve their tax issues. However, there's no need to face it alone. With the right guidance, you can confidently navigate through this challenge and find a solution that works for you.
What Should I Do?
Face the Issue: Ignoring your IRS balance won't make it disappear. In fact, delaying action can lead to additional interest and penalties. It's essential to address the issue head-on and take proactive steps towards resolution.
Don't Ignore It: Ignoring an IRS balance will only make matters worse. The longer you delay addressing the issue, the more interest and penalties you'll accumulate. Instead, face the situation head-on and take proactive steps to resolve it.
Assess Your Situation: Start by assessing your financial situation and understanding the root cause of your IRS balance. Did you miss filing a tax return? Or maybe you couldn't afford to pay your taxes in full? By understanding the underlying factors, you can develop a targeted strategy for resolution.
Explore Payment Options: Contrary to popular belief, the IRS offers various payment options for individuals with tax balances. These include installment agreements, offers in compromise, and currently not collectible status, among others. Ben Butterfield can help you explore these options and determine which one aligns best with your financial circumstances.
Stay Compliant: Once you've entered into a payment arrangement or reached a resolution with the IRS, it's crucial to stay compliant moving forward. This means filing your tax returns on time and making timely payments according to the agreed-upon terms. By demonstrating good faith and compliance, you'll avoid future tax troubles.
Seek Professional Help: Dealing with the IRS can be complex and intimidating, especially if you're unfamiliar with tax laws and procedures. That’s why it’s vital to have a tax expert on your side. In fact, the IRS prefers working with tax resolution professionals, and you’ll usually get a far better outcome with a seasoned expert on your side…
An expert like Ben Butterfield.
Ben Butterfield, founder of BPB Tax Resolutions, provides comprehensive tax resolution services to people facing an IRS balance. He understands the complexities of the tax system and has the expertise necessary to guide you through the settlement process.
With his personalized approach, Ben will be your advocate for dealing with the IRS.
Don’t face the IRS on your own.
Call Ben Butterfield now for your free case evaluation!
The IRS Sent Me an LT11 Letter. What Are My Next Steps?
Receiving an LT11 letter from the IRS can be incredibly unsettling.
This notice is a serious warning that the IRS is prepared to take tough action to collect unpaid taxes. If you’ve received this letter, it’s important to understand what it means and why you need to act quickly.
What is an LT11 Letter?
An LT11 letter, also known as the "Final Notice of Intent to Levy and Notice of Your Right to a Hearing," is sent by the IRS when you have unpaid taxes and haven’t responded to previous notices.
This letter means the IRS is ready to levy your assets, which means they can legally take your property to pay off the tax debt. This could include money in your bank accounts, your wages, your home, or other valuable belongings.
What Can Happen If You Ignore It?
If you ignore an LT11 letter, the IRS can take serious actions, such as:
- Seizing Money from Your Bank Account: The IRS can freeze your bank accounts and take the money.
- Garnishing Your Wages: Your employer will have to send a portion of your paycheck to the IRS.
- Taking Your Property: The IRS can seize your house, car, or other valuable items.
- Damaging Your Credit Score: A levy or lien can hurt your credit score, making it hard to get loans or credit in the future.
Why You Need to Act Quickly
The LT11 letter gives you only 30 days to respond. Within this time, you have the right to request a Collection Due Process (CDP) hearing. This hearing is your chance to dispute the levy action, propose a different payment plan, or challenge the amount you owe. If you don’t act within these 30 days, the IRS will start the levy process, and your options will be very limited.
The Importance of Professional Help
Dealing with the IRS and resolving tax problems can be very complex, and trying to handle it on your own can lead to mistakes that might make your situation worse.
A tax resolution professional has the knowledge and experience to help you navigate this challenging process.
Benefits of Professional Help:
- Expert Negotiation: A professional can negotiate with the IRS on your behalf to secure the best possible terms.
- Strategic Planning: They can develop a plan to resolve your tax issues without causing financial hardship.
- Legal Protection: A professional ensures that your rights are protected throughout the process.
If you’ve received an LT11 letter, don’t wait another moment.
Contact Ben Butterfield at BPB Tax Resolutions immediately.
Ben is a skilled tax resolution specialist who can help you navigate your tax issues and achieve the best possible outcome.
Call him NOW at (402) 779-7399 to prevent the IRS from taking your hard-earned money and assets.
Understanding the CP1058 Letter: Act Now Before It's Too Late
Getting a CP1058 letter from the IRS can be a huge wake-up call.
This letter is a serious warning that the IRS is about to take strong action against you. If you’ve received this letter, it’s important to know what it means and why you need to act fast.
What is a CP1058 Letter?
A CP1058 letter is also called the "Final Notice of Intent to Levy and Notice of Your Right to a Hearing."
This letter means that you owe taxes, and the IRS is getting ready to take your property to cover the debt. This could include money in your bank accounts, your paycheck, your house, or other valuable things you own.
What Can Happen If You Ignore It?
If you don’t respond to a CP1058 letter, the IRS can take serious steps, such as:
- Taking Money from Your Bank Account: The IRS can freeze your accounts and take the money.
- Taking Part of Your Paycheck: Your wages could be garnished, meaning your employer would have to send part of your paycheck to the IRS.
- Taking Your Property: The IRS can take your house, car, or other belongings.
- Hurting Your Credit Score: A levy or lien from the IRS can damage your credit score, making it hard to get loans or credit cards in the future.
Why You Need to Act Quickly
The CP1058 letter gives you only 30 days to respond. In these 30 days, you can ask for a Collection Due Process (CDP) hearing. This hearing is your chance to argue against the IRS taking your property, suggest a different way to pay your debt, or dispute the amount you owe.
If you don’t act within these 30 days, the IRS will start taking your property, and your options will be very limited.
Why You Should Get Professional Help
Dealing with the IRS and fixing tax problems can be complicated. If you try to handle it on your own, you might make mistakes that could make things worse. A tax resolution professional has the knowledge and experience to help you get through this.
Why Professional Help is Important:
- Expert Negotiation: A professional can talk to the IRS for you and get you the best deal possible.
- Smart Planning: They can create a plan to resolve your tax issues without ruining your finances.
- Legal Protection: A professional makes sure your rights are protected the whole time.
If you’ve received a CP1058 letter, don’t wait.
Contact Ben Butterfield at BPB Tax Resolutions right now.
Ben is a skilled tax resolution specialist who can help you deal with your tax problems and get the best outcome.
Get in touch with Ben NOW at (402) 779-7399 to take control of your finances and stop the stress caused by tax debt.
Tax Resolution for Truckers: Your Guide to Financial Relief
Are you a trucker feeling the weight of tax problems bearing down on you like an overloaded trailer?
You're not alone.
It's a common predicament in the industry, and understanding why can help you steer clear of these financial potholes. Let's look into why truckers often find themselves in tax trouble and what you can do to get out of it:
- Complex Tax Regulations: Tax laws are complicated, and they're especially labyrinthine when it comes to truckers. Between fuel taxes, highway use taxes, and deductions for meals and lodging, navigating the tax landscape can feel like traversing a maze without a map.
- Misclassification Issues: The classification of truckers as independent contractors or employees can be a contentious issue. Misclassification can lead to discrepancies in tax filings and, consequently, IRS scrutiny.
- Record-Keeping Challenges: With long hours on the road, keeping meticulous records of expenses can fall by the wayside. Yet, accurate record-keeping is crucial for claiming deductions and avoiding audits.
- State Tax Compliance: Truckers often traverse multiple states, each with its own tax regulations. Keeping track of and complying with varying state tax laws can be overwhelming and prone to errors.
- Overlooked Deductions: Many truckers miss out on valuable deductions simply because they're unaware of what they're entitled to. This oversight can result in overpayment of taxes.
- Cash Flow Constraints: Seasonal fluctuations and delayed payments in the trucking industry can lead to cash flow problems, making it challenging to meet tax obligations on time.
- Lack of Professional Guidance: Without the guidance of a knowledgeable tax professional who understands the unique challenges of the trucking industry, truckers may inadvertently make costly mistakes on their tax returns. A professional becomes necessary when you’ve gotten into debt, so that you can get the best outcome possible.
Now that we've identified some common reasons why truckers find themselves in tax trouble, how do you get out of tax debt?
That's where Ben Butterfield with BPB Tax Resolutions comes in.
Ben Butterfield is a seasoned tax expert with a deep understanding of the complexities faced by truckers. With his expertise, you can navigate the tax landscape with confidence, ensuring compliance with regulations and maximizing deductions.
Don't let tax problems derail your journey.
Take control of your finances and reach out to Ben Butterfield at BPB Tax Resolutions today.
The IRS is Auditing My Small Business. What Should I Do?
As a small business owner, you pour your heart and soul into building and growing your business. An IRS audit can be incredibly stressful, and you might feel like everything you’ve worked hard for is in jeopardy.
You're not alone.
Navigating the complexities of IRS audits can be overwhelming, but with the right approach and guidance, you can effectively address the situation and protect your business interests.
If you’re facing an IRS audit on your small business, here's what you need to do next:
Face the Issue Head-On: Much like with an IRS balance, ignoring a small business audit won't make it disappear. In fact, avoidance can exacerbate the problem and lead to additional scrutiny from the IRS. It's crucial to confront the audit head-on and take proactive steps towards resolution.
Assess the Situation: Start by carefully reviewing the audit notification and understanding the specific issues being examined. Whether it's income discrepancies, expense deductions, or other areas of concern, gaining clarity on the scope of the audit will help you develop a targeted strategy for response.
Gather Documentation: The key to a successful audit defense is thorough documentation. Collect all relevant financial records, receipts, invoices, and other supporting documents that substantiate your business activities. Having organized and comprehensive documentation will strengthen your position and help you navigate the audit process with confidence.
Cooperate with the Auditor: While facing an audit may seem intimidating, cooperation with the auditor is essential. Be responsive to requests for information, provide clear explanations when needed, and maintain open communication throughout the process. A cooperative attitude demonstrates your willingness to comply with IRS regulations and can positively influence the outcome of the audit.
Seek Professional Guidance: Dealing with a small business audit can be overwhelming, especially if you're unfamiliar with tax laws and audit procedures. That's where a qualified tax professional like Ben Butterfield will make all the difference.
Ben Butterfield, founder of BPB Tax Resolutions, specializes in assisting small business owners facing IRS audits. With a decade of experience in tax resolution, Ben understands the nuances of IRS audits and provides expert guidance tailored to your specific situation.
With his in-depth knowledge of tax laws and audit procedures, Ben will be your advocate throughout the audit process, ensuring your rights are protected and your interests are represented.
Don't face a small business audit alone.
Call Ben Butterfield today for a free consultation and take the first step towards resolving your audit concerns with confidence.
