Tax Relief Blog
For Los Angeles, and all over America, individuals or businesses who are concerned about the information they receive from the Internal Revenue Service (IRS) about their taxes, a tax account review – TAR may be the answer. For those who have complicated tax forms to fill out, a proper review by tax professionals may shed light on their current situation. In fact, many individuals have benefited in ways from a review that has helped them to pay less in taxes and keep more in their pocket.
What is a Tax Account Review or TAR, Discovery?
As the name implies, it is a review of the tax returns and other information of an individual or a business with the IRS and or the state. The goal is to provide a clear, comprehensive report about the taxpayer status with the IRS. This means a thorough review of previous tax returns, an overview of the income and expenses incurred by the taxpayer, and discovery of any new tax rules or regulations that may alter the taxes which are paid.
Although most people associate a TAR – tax account review with business owners, individuals who have multiple sources of income, or tax problems may benefit as well. From retirees earning money through their pensions, Social Security, and interest drawn from IRAs to those who earn extra money from freelance jobs and more. In other words, most people will benefit from having a tax account review performed.
Plus, the review can be held annually before taxes are paid for the following year. This means that any new rules or regulations can be considered in advance. Such advantages of this type of review include the following.
- Details of how much taxes are owed
- Verifying compliance with current tax codes
- Obtaining dates for statute of limitations with concern for liabilities
- If a tax lien has been filed by the IRS
There may be other information revealed from the review as well. It will depend on the individual account with the IRS.
Get a case evaluation by calling us today at 1-877-788-2937.
How It Works
The Discovery, TAR – tax account review begins when you bring the information to a qualified tax professional. They will keep your information confidential while conducting the review. The review consists of going over your previous tax forms, consulting with the tax law at that time, and looking ahead to taxes you might pay for the following filing.
Once the review is complete, you will be informed of the results. This will consist of going over the forms with the tax professional. By the end of the process, you will have a better understanding of what you paid, why, and what you can do in the future.
The review process itself is straightforward, but the benefits that may be derived might be considerable. It will depend on several factors, but it is quite possible that you will have plenty to gain with this type of review.
Advantages of a TAR – Tax Account Review
Understanding what the review implies means that you can take advantage of what it has to offer. What follows are the benefits that having a review of this nature means for you if you live in Los Angeles county or any other city in America.
Full Understanding of Your Tax Situation: Even if you gain nothing else from this type of review, you will have a full understanding of your tax situation with the IRS. This means you will know the full extent of your taxable income, how your past tax payments could’ve been reduced, and what may lie ahead in the future.
You may not get any additional benefits, but at least you will have a far better understanding of your current situation with the IRS.
Deductions: One of the most overlooked aspects of filling out tax forms is deductions. You may be surprised at the number of deductions available and how you may be able to take advantage. A tax account review will assess all the deductions that may apply to your current situation.
You may wind up saving a considerable amount of money each year just by taking advantage of a single deduction. Imagine what might happen in you could benefit from all the applicable deductions that the IRS provides in their tax forms?
Past Deductions: Did you know that there are some instances in which you can take advantage of deductions from past filings? A tax account review means that your previous filings will be examined and if there are deductions that could be made; you can amend it and potentially get a refund.
Of course, not every tax form from the past will qualify. But there have been many cases of Los Angeles individuals who did not take advantage of deductions and other benefits from the past who have amended their tax forms. You may still have time depending on the type of benefit that may be received to amend your previous tax forms.
Planning for the Future: Perhaps the greatest benefit offered by a comprehensive tax account review is how you can plan for the following year. This means that the decisions you make today can greatly affect the taxes you pay the following year all while using legal, ethical methods that are at your disposal.
From delaying certain income until the following year to investing in retirement accounts, there are common strategies available that will help lower the amount of taxes owed so you pay less. It is far easier to act before the year is out compared to waiting until you receive your tax forms in the following year.
Guidance: The Discovery, tax account review – TAR does more that provide avenues of saving money, it provides guidance and understanding of how the IRS works and its relationship to you. Your current tax situation is based on several factors, some of which may not be well-known. A proper review will reveal that information which can help guide your actions for years to come.
In the end, a tax account review will help individuals better understand their current situation with the IRS. This means a comprehensive overview of what has been paid in the past, what current tax rules or regulations apply to their current situation, and what a person may due to take advantage of the deductions and other methods available to pay less and keep more of their own money.
Get a case evaluation by calling us today at 1-877-788-2937.
