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Tax Planning and Compliance

Tax Compliance Services

Whether we like it or not, today’s tax laws are so complicated that filing a relatively simple return can be confusing. It is just too easy to overlook deductions and credits to which you are entitled. Even if you use a computer software program there’s no substitute for the assistance of an experienced tax professional. Arati Patel & Associates provides services to our clients to fulfill their filing obligations from tax planning to Federal , State and local tax compliance.

These services include but are not limited to:

  • Individuals
  • Corporations
  • S-Corporations
  • Partnerships
  • Limited Liability Companies
  • Nonprofit Organizations
  • Trusts and Estates
  • Retirement plans

Your tax return will be checked and rechecked by our computer software identifying potential problems the IRS may look at more closely and reviewing the math to limit IRS contacts.

Our staff will show you how to adjust your payroll withholding to get more money back each week. Why give the IRS an interest free loan for up to 16 months. We will show you potential deductions to limit your tax liability for next year. In addition, we will give you a sheet of commonly overlooked deductions to limit the following year’s tax liability.

Books a Mess? No Problem!

If you own a small business and haven’t kept up your bookkeeping, don’t worry. We can help you. We’ll prepare your bookkeeping for the year, prepare a full Schedule C, as well as your personal income tax return. Then we’ll help you set up an easy system that allows you to keep your books in tip-top shape next year.

Tax Planning

We go beyond tax compliance and proactively recommend tax saving strategies to maximize your after-tax income. Planning is the key to successfully and legally reducing your tax liability. Businesses and individuals pay the lowest amount of taxes allowable by law because we continually look for ways to minimize your taxes throughout the year, not just at the end of the year.

We recommend Tax Saving Strategies that help you:

  • grow and preserve assets by keeping Uncle Sam out of your pockets.
  • defer income so you can keep your money now and pay less taxes later.
  • reduce taxes on your income so you keep more of what you make.
  • reduce taxes on your estate so your family keeps more of what you’ve made.
  • reduce taxes on your gifts so you can give more.
  • reduce taxes on your investments so you can grow your wealth faster.
  • reduce taxes on your retirement distributions so you can retire in style.

Here’s just a few of the Tax Saving Strategies we use:

  • Splitting income among several family members or legal entities in order to get more of the income taxed in lower bracket.
  • Shifting income or expenses from one year to another in order to have them fall where it will be taxed at a lower rate.
  • Deferring tax liabilities through certain investment choices such as pension plans, contributions and other similar plans.
  • Using certain investments to produce income that is tax exempt from either federal or state or both taxing entities.

Remember, we work for you not for the IRS. Many of our clients save many times the fee in reduced tax liability through careful planning and legitimate tax strategies.

International Taxation

Whether you’re a corporation with overseas operations or a business or individual needing to work out taxation of U.S. residents working abroad or foreign citizens working in the U.S., Arati Patel & Associates can help you plot a course through cross-border taxation issues. There are many special rules and policies for businesses with a foreign presence. We can help you make sense of how you are affected by them.

All persons receiving payments from a US source, whether they are US residents or internationals, are subject to US taxation. There are specific regulations and processes required for determining the tax withholding for international persons and various factors come into play in determining the percentage of the tax withholding. In certain situations, tax treaties may exist that exempt a person from US taxation. US residents and nonresidents having foreign assets have special filing requirements. If you are unsure of whether or not you need to file an FBAR you should consult Arati Patel & Associates who has experience with FBARs.

What is FBAR?

FBAR stands for Foreign Bank Account Report, and refers to TD F90-22.1 Report of Foreign Bank and Financial Accounts. In mid-2013, the form was renamed, and is now called FINCEN 114. Whatever number it goes by, it must be filed by “U.S. persons” if the person has an interest in, or signatory authority over a foreign financial account, and the aggregate value of those accounts exceeds $10,000 at any time during the calendar year. An FBAR is authorized pursuant to Title 31 of the Bank Secrecy Act, which is not part of the Internal Revenue Code. The FBAR is due on June 30th. Since it is not filed under the Internal Revenue Code it must be RECEIVED by the IRS on or before June 30th or else it is late. It is not sufficient to simply mail it by that date! Beginning July 1, 2013 all FBARs, must be filed electronically.

  • A U.S. person includes U.S. citizens, as well as permanent legal residents, i.e. green card holders. U.S. persons also include legal entities such as partnerships, corporations, and LLCs formed under U.S. law. It also includes trusts or estates formed under U.S. law.
  • Anyone who meets the “substantial presence” test of Internal Revenue Code Section 7701(b) is also considered a U.S. person for FBAR purposes, and therefore must file an FBAR. The substantial presence test is met if you are physically present in the United States on at least:
    • 31 days during the current year, and
    • 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
      • All the days you were present in the current year, and
      • 1/3 of the days you were present in the first year before the current year, and
      • 1/6 of the days you were present in the second year before the current year.

Tax Problems & Audit Representation

We have expertise in every area of federal, state and local taxation, and are able to represent clients at audits, should that unhappy situation ever arise.

IRS Audit Representation

Nothing strikes fear in the hearts of people more than receiving an IRS Audit letter in the mail. Audits take significant time away from your business and family, requiring you to gather mounds of records substantiating each and every item reported on your tax return and develop a comprehensive understanding of tax law. IRS Auditors are trained to extract more information from you than you have a legal obligation to provide. IRS Auditors know that most people fear them and are ignorant of their rights and can use that fear and ignorance to their advantage.

Rarely do our clients even have to talk with the IRS. We handle it all for you so that you need not take time off of your business or job to handle the bureaucracy and paperwork of the IRS. No lost wages or business. You simply forward notification of an audit to us and we handle it from A to Z.

Non-Filed Tax Returns

Failing to file your tax returns is a criminal offense, this is not a situation to take lightly . If you do not file, you can be prosecuted and punished with potential jail time, one year for each year not filed. Why risk potentially losing your freedom for failing to file your tax returns! Let us give you the peace of mind you deserve by helping you get in compliance with the law. If you voluntarily file your delinquent returns you’ll likely avoid further problems other than having to pay the interest and penalties. If you wait for the IRS to file your returns for you, they are filed in the best interest of the government, usually with little or none of the deductions you are entitled to. Before anything can be done to extract you from this predicament all the returns must be filed. You must be current. In most cases, you will likely owe taxes, interest, and penalties after the returns are filed. Once we see how much is owed, we’ll set a course of action to get you off the hook!

Back Taxes Owed

There are several options when it comes to resolving unpaid taxes. Let us help you with your unpaid taxes. You have a choice, you can let us help you resolve your matter or can just keep ignoring them while the penalties and interest keep piling up.

Payroll Tax Problems

Not paying your company’s payroll taxes is no less than stealing your employees’ money in the eyes of the IRS. Large portion of the payroll taxes are your employee’s withholdings and as an employer you are assessed trust fund penalties for not paying them on time. This is the reason why penalties for failing to pay your payroll taxes and filing your payroll tax returns on time are much more severe than other types of penalties. They can drastically multiply the amount you owe in a very short time. If you are behind on your payroll taxes, it is critical that you hire a professional representative who knows how the IRS operates.

IRS Liens

When your taxes are not paid the IRS establishes a lien against all of your assets. This gives the IRS the legal right to collect taxes from the sale of your assets, which includes just about everything you own. The lien can be against you, your spouse, or your company. A lien against your company would seize your accounts receivables. At this point everything you own is just one short step away from becoming the property of the United States Government. Liens filed against you by the IRS also show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. The banks don’t want the extra work when the IRS comes in to take your money. Let us help you resolve this matters and avoid making your life miserable.

IRS Levies

After trying to communicate with you and you ignoring IRS, IRS gets your immediate attention by placing a levy to seize your wages or assets you own. Levy can be placed on your checking accounts, auto’s, stocks, bonds, boats, paychecks, and even Social Security checks. We are often able to get those levies released and help you get out of this terrible situation. Our goal is to get you even with the IRS, with what you can afford, and let you start life anew.

IRS Wage Garnishment

If you miss or forgot to respond to the 30-day notice received for “intent to levy”, IRS will garnish your wages and you will not receive your paycheck. Once a wage garnishment is filed with your employer, your employer is required by law to collect a large percentage of each of your paychecks. We can help you to negotiate the release of IRS wage garnishments by arranging a payment plan. The payment plan negotiated by us is always more favorable than any IRS wage garnishment. It allows you to receive your whole paycheck without fears of future wage garnishments.

Offer In Compromise; Payment Arrangements; Relief

You can settle your debt with the IRS for just pennies on the dollar with their Offer in Compromise program. This IRS program allows taxpayers to settle with the IRS on tax debt that has been assessed or for liabilities they cannot afford to pay. It is possible to fully and completely eliminate the taxes you owe – including all penalties and interest – at a large discount. There is no current bottom limit that the IRS will accept to settle your debt especially if your offer is done “appropriately.” If done correctly your debt may be settled for only 5-15% of what you presently owe. We can help you determine the least amount that the IRS will accept from you before you make the offer.

IRS Payment Plan

If you don’t qualify for the IRS Offer In Compromise program, a Payment Plan may be the way to resolve your problem. Setting up a payment plan with the IRS gives you a little more time to pay off your tax debts. We could help you avoid the tax penalties which will otherwise continue to be charged on your outstanding balance as you pay the debt off.

Innocent Spouse Relief

Innocent Spouse Relief was designed to alleviate unjust situations where one spouse was clearly the victim of fraud perpetrated by their spouse or ex-spouse. Let us help you not pay for the misdeeds or fraud committed by your spouse or ex-spouse.

Multistate Tax Matters

Multistate tax is more complex and demanding than ever before. Not only do all states have their own unique tax laws, but state departments of revenue are more focused on enforcement: audits are on the rise; sensitivity towards tax planning is at an all-time high. Our team delivers all-inclusive, integrated tax approach that align with overall business objectives. We provide unique insights based our technical experience, wide-ranging industry background, and commitment to helping clients manage the broad range of complex tax issues at all stages of company’s life cycle.

As seasoned professionals in all aspects of multistate tax, we help our clients manage their state tax liability through thorough, end-to end tax approaches, wide-ranging industry and government experience, and deep client commitment.

Request further Information for our Tax planning and compliance Services by sending us an email:info@araticpa.com