Indianapolis

Offer-in-Compromise vs. Bankruptcy – The Pros and Cons of Both

March 3, 2023 | Bookkeeping Services

Tax resolution can be a complex process. Taxpayers facing unmanageable tax debt have two primary options: bankruptcy or Offer-in-Compromise. Each option has its own set of pros and cons that must be considered carefully when making a decision. Bankruptcy is a legal process that helps taxpayers get rid of their debt including tax debt in under certain conditions. Taxpayers who file for bankruptcy receive an automatic stay and can discharge their tax debt quickly. However, filing for bankruptcy will remain on a person’s credit report for several years and may affect their ability to get future loans or lines of credit. An Offer-in-Compromise (OIC) is an agreement between the taxpayer and the IRS to settle a tax debt for less than the full amount owed. Taxpayers can submit an OIC if they can prove that they cannot pay the full amount of tax due. An OIC allows taxpayers to reduce their tax … Continued

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An IRS Offer-in-Compromise – What Is It?

March 1, 2023 | CPA

An OIC is an agreement between a taxpayer and the IRS that allows for the settlement of outstanding tax liabilities for less than what is owed. This type of agreement can be a great option for taxpayers who are unable to pay their full tax debt, as it allows them to make one lump sum payment (or series of payments) in exchange for settling their debt. When submitting an OIC, taxpayers must provide proof of their financial situation and demonstrate that they cannot afford to pay the entire balance of tax owed.  Taxpayers must prove to the IRS that the Reasonable Collection Potential (RCP) – the total amount of tax the IRS can reasonably expect to collect over the remaining time on the tax collection statute – is less than the tax owed.  Taxpayers will need to provide documents to prove that their RCP is less than the tax owed and … Continued

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IRS Installment Agreements – Which One Is Right For You?

February 22, 2023 | Indiana

An Installment Agreement is nothing more than an agreement with the IRS to pay the tax owed over an extended timeframe.  Installment Agreements are an excellent way to stay compliant with the IRS if a taxpayer cannot pay their taxes when they are due.  The IRS is not really interested in seizing a taxpayer’s assets.  The IRS would much rather work with the taxpayer to pay his or her taxes over time. The IRS has four types of Installment Agremeents: Guaranteed Installment Agreement, Streamlined Installment Agreement, Financially Verified Installment Agreement, and a Partial Pay Installment Agreement.  Which payment plan is best for a taxpayer depends on the facts and circumstances of the taxpayer’s case.  There are different rules governing different payment plans.  Knowing the rules of each plan can help a taxpayer pick the best plan for them. Guaranteed Installment AgreementThe first type of payment plan is an “Guaranteed Installment Agreement”.  This … Continued

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The 10-Year Collection Statute – Why is it so Important?

February 8, 2023 | Carmel

In tax resolution cases, there are many strategies that come into play when formulating a plan to resolve a tax debt.  From allowable expenses, to equity in assets, and many other items, effectively solving a tax problem for a taxpayer has many angles.  One angle is using the “Collection Statute Expiration Date” or CSED to a taxpayer’s advantage.  The CSED is important because the amount of time remaining on the collection statute helps determine which solution the practitioner should select. What is the Collection Statute Expiration Date or CSED?  Once the IRS assesses tax on a taxpayer, the IRS has, by statute, 10 years from the date of assessment to collect the tax.  In most cases, after 10 years the tax debt becomes unenforceable and the IRS writes-off the debt on the taxpayer’s account.  This makes the CSED a very useful tool in planning a tax resolution case for a client. If … Continued

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IRS Collections Process – What Is It?

January 25, 2023 | Accounting Services

 In any IRS Collection case, there are certain notices the IRS sends out at each stage of the process.  If a taxpayer doesn’t pay the tax in full when the tax return is filed, that taxpayer will receive a bill for the amount owed.  This starts the collection process, and it will continue until the tax liability is satisfied or the government is not longer able to collect the tax debt. So what are the notices the IRS must send out?  I’m glad you asked. CP501 NoticeThe first notice in the collection process is a CP501 Notice.  This is the friendliest notice from the IRS.  It will indicate the taxpayer has a balance due on one of his or her tax accounts.  Once a taxpayer has filed the tax return, the taxpayer has 10 days to pay the tax.  It not, then a CP501 Notice will automatically be generated and sent to … Continued

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How to Succeed as a Small Business

How to Succeed as a Small Business

June 1, 2022 | Accounting Services

Small businesses are the backbone of the American economy. They provide jobs and support local communities. However, starting and running a small business can be challenging. There are many things to consider, from marketing and sales to operations and finance. Edgewater CPA Group‘s clients are always hearing ways their small businesses can fail, so, we wanted to look at ways to succeed. Follow these tips, and you will be well on your way to building a successful company!

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What does an Accounting Controller Do?

What Does an Accounting Controller Do?

April 1, 2022 | Accounting Services

An  is responsible for overseeing all financial aspects of a company. This person manages the budget, tracks expenses, and ensures that the books are in order. Additionally, a controller may also be involved in tax planning and forecasting. As important as their job description may sound, very few small businesses have the resources to employ this person in-house. So, they turn to Edgewater CPA Group for help. Here’s why a controller is important for your business.

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3 Simple Ways to Reduce Your Taxable Income

3 Simple Ways to Reduce Your Taxable Income

March 1, 2022 | Accounting Services

Are you looking for ways to keep more of your hard-earned money as a small business owner? One of the best ways you can do so is by reducing your taxable income. Other than keeping track of all your expenses and writing off things where you can, Edgewater CPA Group can help you find other ways to reduce your tax bill. Through our strategic accounting services and these little-known ways to reduce your taxable income, you can save some cold hard cash. 

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A Look Ahead to 2022: Forecasted Cost Increases for Businesses

November 20, 2021 | Bookkeeping Services

As a business owner, you’ve probably experienced some of the fallout from the pandemic, and other economic factors, since 2020. As 2021 nears the end, now is an excellent time to look toward forecasted cost increases in 2022. After all, to be forewarned is to be prepared. Kiplinger releases an annual report highlighting cost increases for businesses, which many entrepreneurs value. As such, Edgewater CPA Group highlights some of its significant predictions in this article for your review. 

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How to Take a Proactive Approach to Business Taxes and Bookkeeping

November 6, 2021 | Bookkeeping Services

If you filed an extension for 2020 business taxes, you probably just closed the door and breathed a sigh of relief. However, 2021 is nearing the end, and tax time will be here again before you know it. If you find yourself and your business in a reactive state, it may be time to try something new. For that reason, Edgewater CPA Group reveals how to take a proactive approach to business taxes and bookkeeping.

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