Tax FAQs
We’re please to offer answers to some of our most frequently asked questions and situations. If you have a question not answered in the FAQ, click here to submit it. For a quick answer to your specific question, please don’t hesitate to contact us today. We may even add your question to our FAQs.
Do You Need a Law Firm or Tax Attorney?
The short answer is no. For a tax professional to represent you before the IRS, he or she has to be a Certified Public Accountant (CPA), Attorney, or Enrolled Agent (EA). Compare the education and testing requirements for each professional:
Does ALG File Normal Tax Returns?
Yes we can file your annual tax returns. You may not have a tax problem. We prepare many tax returns on a yearly basis for taxpayers. You can expect us to have a high level of expertise on taxes. We can prepare a quality tax return at an affordable cost. The advantage of using us for your yearly tax returns is we can assist you throughout the year. You can ask us questions before the tax year ends to insure the best possible outcome on your tax returns.
What Should You Do in Case of an Audit?
Be Courteous, Request More Time. Being audited is not like being served an arrest warrant. It simply means you have been selected to have your tax return reviewed. If you are visited by a field agent, simply ask for more time to meet with your tax professional. First, figure out the type of audit. Then gather all your supporting documents. Finally, decide whether you will represent yourself or hire representation.
Can You Stop a Bank Levy or Wage Garnishment?
Yes but there is limited time to act. Contacting a tax professional immediately. You can sometimes get these removed quickly. We deal with the IRS every day, we know how to help you stop bank levies and wage garnishments.
Is it Too Late to File Your Returns?
It’s never too late, and it’s a good idea to do it really soon. You do not file your return, then the IRS may file for you. Of course when the IRS files a return, it is not in your best interest. If you have several unfiled returns, the best course of action is to get them filed. Only when your returns are filed can you start negotiating with the IRS. In some cases, you might actually get a refund!
What Is an Offer in Compromise (OIC)?
It is an agreement with the IRS to pay less than you owe. There are three different types of Offers.
- Type 1, you are unable to pay the taxes
- Type 2, you can prove that the taxes are wrong
- Type 3, it would not be right to make you pay all the taxes
Not all people qualify for an offer in compromise.
I’m Behind in My Payroll Tax Payments!
This is one of the worst situations to be in. The IRS takes the handling of payroll tax funds seriously. The penalties for payroll tax problems are high. But, you do not need to be worried. By supplying us with all the necessary information we can help you. We’ll negotiate with the IRS. You may even qualify for the Fresh Start Initiative to help you handle the burden a little easier.
Can You be Audited by the State of Michigan and the IRS?
You most certainly can. Each agency is separate. You can be audited by both at the same time. If you get a notice for audit then consider contacting a tax professional for help.